MORNINGSTAR, INC., 10-K filed on 2/25/2022
Annual Report
v3.22.0.1
Cover Page Cover - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2021
Feb. 11, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Entity File Number 000-51280    
Entity Registrant Name MORNINGSTAR, INC.    
Entity Incorporation, State or Country Code IL    
Entity Tax Identification Number 36-3297908    
Entity Address, Address Line One 22 West Washington Street    
Entity Address, City or Town Chicago    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60602    
City Area Code 312    
Local Phone Number 696-6000    
Title of 12(b) Security Common stock, no par value    
Trading Symbol MORN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 6.2
Entity Common Stock, Shares Outstanding   42,962,319  
Entity Central Index Key 0001289419    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference [Text Block] Certain parts of the registrant's Definitive Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated into Part III of this Form 10-K.    
ICFR Auditor Attestation Flag true    
Auditor Firm ID 185    
Auditor Location Chicago, IL    
Auditor Name KPMG LLP    
v3.22.0.1
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue $ 1,699.3 $ 1,389.5 $ 1,179.0
Operating expense:      
Cost of revenue 698.4 556.4 483.1
Sales and marketing 274.8 206.4 177.9
General and administrative 318.4 272.0 210.7
Depreciation and amortization 150.7 139.5 117.7
Total operating expense 1,442.3 1,174.3 989.4
Operating income 257.0 215.2 189.6
Non-operating income (expense):      
Interest expense, net (8.7) (9.5) (8.7)
Realized gains on sale of investments, reclassified from other comprehensive income 5.0 2.1 1.2
Realized gains on sale of equity method investments 0.9 30.0 19.5
Holding gain on previously held equity interest 0.0 50.9 0.0
Other income (expense), net (3.7) (5.7) (3.1)
Non-operating income (expense), net (6.5) 67.8 8.9
Income before income taxes and equity in net income (loss) of unconsolidated entities 250.5 283.0 198.5
Equity in net income (loss) of unconsolidated entities 5.4 0.3 (0.9)
Income tax expense 62.6 59.7 45.6
Consolidated net income $ 193.3 $ 223.6 $ 152.0
Net income per share:      
Basic net income per share (in dollars per share) $ 4.50 $ 5.22 $ 3.56
Diluted net income per share (in dollars per share) 4.45 5.18 3.52
Dividends per common share:      
Dividends declared per common share (in dollars per share) 1.31 1.22 1.14
Dividends paid per common share (in dollars per share) $ 1.26 $ 1.20 $ 1.12
Weighted average shares outstanding:      
Basic (in shares) 43.0 42.9 42.7
Diluted (in shares) 43.4 43.2 43.2
v3.22.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Consolidated net income $ 193.3 $ 223.6 $ 152.0
Other comprehensive income (loss), net of tax:      
Foreign currency translation adjustment (15.1) 37.3 11.5
Unrealized gains (losses) on securities:      
Unrealized holding gains (losses) arising during period 5.7 2.9 3.8
Reclassification of gains included in net income (3.9) (1.6) (0.9)
Other comprehensive income (loss) (13.3) 38.6 14.4
Comprehensive income $ 180.0 $ 262.2 $ 166.4
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 483.8 $ 422.5
Investments 62.3 41.7
Accounts receivable, less allowance for credit losses of $4.5 million and $4.2 million, respectively 268.9 205.1
Income tax receivable 8.9 2.2
Deferred commissions 31.2 21.1
Prepaid Expense 30.6 31.7
Other current assets 1.9 5.7
Total current assets 887.6 730.0
Property, equipment, and capitalized software, net 171.8 155.1
Investments in unconsolidated entities 63.3 32.6
Goodwill 1,207.0 1,205.0
Operating lease assets 149.2 147.7
Intangible assets, net 328.2 380.1
Deferred tax asset, net 12.8 12.6
Deferred commissions 31.1 18.5
Other assets 11.7 14.4
Total assets 2,862.7 2,696.0
Current liabilities:    
Accounts payable and accrued liabilities 76.5 64.5
Accrued compensation 273.7 169.2
Deferred revenue 377.4 306.8
Operating lease liabilities 36.4 39.9
Contingent consideration liability 17.3 35.0
Other current liabilities 2.2 11.1
Total current liabilities 783.5 626.5
Operating lease liabilities 135.7 137.7
Accrued compensation 16.3 35.1
Deferred tax liabilities, net 101.7 108.9
Long-term debt 359.4 449.1
Deferred revenue 36.4 33.5
Other long-term liabilities 13.8 33.8
Total liabilities 1,446.8 1,424.6
Morningstar, Inc. shareholders’ equity:    
Common stock, no par value, 200,000,000 shares authorized, of which 43,136,273 and 42,898,158 shares were outstanding as of December 31, 2021 and December 31, 2020, respectively 0.0 0.0
Treasury stock at cost, 11,124,021 and 11,135,446 shares as of December 31, 2021 and December 31, 2020 respectively (764.3) (767.3)
Additional paid-in capital 689.0 671.3
Retained earnings 1,526.5 1,389.4
Accumulated other comprehensive loss:    
Currency translation adjustment (40.8) (25.7)
Unrealized gain on available-for-sale investments 5.5 3.7
Total accumulated other comprehensive loss (35.3) (22.0)
Total equity 1,415.9 1,271.4
Total liabilities and equity $ 2,862.7 $ 2,696.0
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 4.5 $ 4.2
Common stock, no par value $ 0 $ 0
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares outstanding 43,136,273 42,898,158
Treasury stock, shares 11,124,021 11,135,446
v3.22.0.1
Consolidated Statement of Equity - USD ($)
$ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2018 $ 934.7 $ 0.0 $ (726.8) $ 621.7 $ 1,114.8 $ (75.0)
Balance (in shares) at Dec. 31, 2018   42,624,118        
Increase (Decrease) in Stockholders' Equity            
Consolidated net income 152.0       152.0  
Other Comprehensive Income (loss)            
Unrealized gain on available-for-sale investments, net of income tax 3.8         3.8
Reclassification of adjustments for gains included in net income, net of income tax (0.9)         (0.9)
Other comprehensive income (loss) 14.4         14.4
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (15.2)   2.7 (17.9) 0.0 0.0
Reclassification of awards previously liability-classified that were converted to equity 6.8   0.0 6.8 0.0 0.0
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   266,176        
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]            
Stock-based compensation — restricted stock units 20.4   0.0 20.4 0.0 0.0
Stock-based compensation — performance share awards 20.6   0.0 20.6 0.0 0.0
Stock-based compensation — market stock units 3.4   0.0 3.4 0.0 0.0
Dividends declared ($1.31 per share) (48.9)   0.0 0.0 (48.9) 0.0
Common share repurchased (4.6)   (4.6) 0.0 0.0 0.0
Common share repurchased (in shares)   (41,935)        
Balance at Dec. 31, 2019 1,083.6 $ 0.0 (728.7) 655.0 1,217.9 (60.6)
Balance (in shares) at Dec. 31, 2019   42,848,359        
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]            
Foreign currency translation adjustment 11.5         11.5
Consolidated net income 223.6       223.6 0.0
Unrealized gain on available-for-sale investments, net of income tax 2.9       0.0 2.9
Reclassification of adjustments for gains included in net income, net of income tax (1.6)       0.0 (1.6)
Other comprehensive income (loss) 38.6       0.0 38.6
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (23.1)   3.3 (26.4)    
Reclassification of awards previously liability-classified that were converted to equity 6.1     6.1    
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   364,724        
Stock-based compensation — restricted stock units 22.2     22.2    
Stock-based compensation — performance share awards 10.2     10.2    
Stock-based compensation — market stock units 4.2     4.2    
Dividends declared ($1.31 per share) (52.1)       (52.1)  
Common share repurchased (41.9)   (41.9)      
Common share repurchased (in shares)   (314,925)        
Balance at Dec. 31, 2020 $ 1,271.4 $ 0.0 (767.3) 671.3 1,389.4 (22.0)
Balance (in shares) at Dec. 31, 2020 42,898,158 42,898,158        
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]            
Foreign currency translation adjustment $ 37.3       0.0 37.3
Retained earnings 1,389.4          
Consolidated net income 193.3       193.3  
Unrealized gain on available-for-sale investments, net of income tax 5.7         5.7
Reclassification of adjustments for gains included in net income, net of income tax (3.9)         (3.9)
Other comprehensive income (loss) (13.3)         (13.3)
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (28.7)   4.3 (33.0)    
Reclassification of awards previously liability-classified that were converted to equity 8.8     8.8    
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares)   243,015        
Stock-based compensation — restricted stock units 25.8     25.8    
Stock-based compensation — performance share awards 10.6     10.6    
Stock-based compensation — market stock units 5.5     5.5    
Dividends declared ($1.31 per share) (56.2)       (56.2)  
Common share repurchased (1.3)   (1.3)      
Common share repurchased (in shares)   (4,900)        
Balance at Dec. 31, 2021 $ 1,415.9 $ 0.0 $ (764.3) $ 689.0 $ 1,526.5 (35.3)
Balance (in shares) at Dec. 31, 2021 43,136,273 43,136,273        
APIC, Share-based Payment Arrangement, Increase for Cost Recognition [Abstract]            
Foreign currency translation adjustment $ (15.1)         $ (15.1)
Retained earnings $ 1,526.5          
v3.22.0.1
Consolidated Statement of Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]      
Dividends declared per common share (in dollars per share) $ 1.31 $ 1.22 $ 1.14
v3.22.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating activities      
Consolidated net income $ 193.3 $ 223.6 $ 152.0
Adjustments to reconcile consolidated net income to net cash flows from operating activities:      
Depreciation and amortization 150.7 139.5 117.7
Deferred income taxes (12.1) (6.7) (6.0)
Stock-based compensation expense 41.9 36.6 44.4
Provision for bad debt 1.9 2.8 2.3
Equity in net (income) loss of unconsolidated entities (5.4) (0.3) 0.9
Gain on sale of equity method investments (0.9) (30.0) (19.5)
Holding gain on previously held equity interest 0.0 (50.9) 0.0
Acquisition earn-out accrual 17.8 27.8 0.0
Other, net (0.9) 3.0 1.1
Changes in operating assets and liabilities      
Accounts receivable (67.9) (9.2) 11.3
Accounts payable and accrued liabilities 7.1 (9.5) 3.2
Accrued compensation and deferred commissions 58.0 18.2 17.1
Income taxes, current (6.1) 8.0 (11.6)
Deferred revenue 78.2 29.5 28.1
Other assets and liabilities (5.7) 1.9 (6.6)
Cash provided by operating activities 449.9 384.3 334.4
Investing activities      
Purchases of investment securities (71.1) (56.4) (36.2)
Proceeds from maturities and sales of investment securities 58.8 46.9 35.8
Capital expenditures (101.8) (76.7) (80.0)
Acquisitions, net of cash acquired (24.8) (67.8) (681.9)
Proceeds from sale of equity method investments, net 1.1 35.2 17.6
Purchases of equity- and cost-method investments (29.8) (6.7) (1.5)
Other, net (0.1) 1.7 (0.1)
Cash used for investing activities (167.7) (123.8) (746.3)
Financing activities      
Common shares repurchased (1.3) (41.9) (4.9)
Dividends paid (54.2) (51.4) (47.8)
Proceeds from revolving credit facility 10.0 60.0 610.0
Repayment of revolving credit facility (10.0) (130.0) (160.0)
Proceeds from 2030 Notes 0.0 350.0 0.0
Repayment of term facility 90.0 343.4 5.6
Proceeds from stock-option exercises 0.2 1.9 0.2
Employee taxes withheld for restricted stock units (29.0) (25.1) (15.2)
Payment of acquisition-related earn-outs (34.4) 0.0 0.0
Other, net (3.1) (2.3) (3.0)
Cash provided by (used for) financing activities 211.8 (182.2) 373.7
Effect of exchange rate changes on cash and cash equivalents (9.1) 10.1 3.0
Net increase (decrease) in cash and cash equivalents 61.3 88.4 (35.2)
Cash and cash equivalents—beginning of period 422.5 334.1 369.3
Cash and cash equivalents—end of period 483.8 422.5 334.1
Supplemental disclosure of cash flow information:      
Cash paid for income taxes 80.9 58.2 63.3
Cash paid for interest 10.4 11.1 11.0
Supplemental information of non-cash investing and financing activities:      
Unrealized gain (loss) on available-for-sale investments $ 2.1 $ 1.8 $ 3.9
v3.22.0.1
Description of Business
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
 
Morningstar, Inc. and its subsidiaries (Morningstar, we, our, the company) provide independent investment research for investors around the world. We offer an extensive line of products and services for individual and institutional investors in public and private capital markets, financial advisors, asset managers, retirement plan providers and sponsors, and issuers of securities. We have operations in 29 countries.
v3.22.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following:
ASCAccounting Standards Codification
ASUAccounting Standards Update
EITFEmerging Issues Task Force
FASBFinancial Accounting Standards Board
SECSecurities and Exchange Commission

Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions.

We account for investments in entities in which we exercise significant influence, but do not control, using the equity method.

As part of our investment management operations, we manage certain funds outside of the U.S. that are considered variable interest entities. For most of these variable interest entities, we do not have a variable interest. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates.

Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices.

Investments. We account for our investments in debt securities in accordance with FASB ASC 320, Investments—Debt Securities (FASB ASC 320). We classify our debt securities into three categories: held-to-maturity, trading, and available-for-sale.

Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets.

Trading: We classify certain investments as trading securities. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair values in our Consolidated Balance Sheets.
Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of marketable debt securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair values in our Consolidated Balance Sheets.

We account for our investments in equity securities in accordance with FASB ASC 321, Investments— Equity Securities (FASB ASC 321). We measure equity investments at fair value with the related realized and unrealized gains and losses recognized in our Consolidated Statements of Income. For equity investments without a readily determinable fair value, we measure these at cost less impairment and adjusting for observable price changes in orderly transactions. We will apply this measurement method to the investment until or if it becomes eligible to be measured at fair value, which is reassessed at each reporting period. We account for non-marketable equity investments through which we exercise significant influence, but do not have control over the investee, under the equity method.

Fair Value Measurements. FASB ASC 820, Fair Value Measurements (FASB ASC 820) defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value.

FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs:

•    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.

We provide additional information about our cash equivalents and investments that are subject to FASB ASC 820 in Note 7.

Business Combinations. When we acquire a business, we account for the business combination in accordance with FASB ASC 805, Business Combinations (FASB ASC 805). We recognize and measure the fair value of the acquired business and allocate the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The difference between the purchase price and the estimated fair value of the net assets acquired or the excess of the aggregate estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. In determining the estimated fair values of assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods, including discounted cash flow, Monte Carlo simulations, and relief from royalty. For a business combination achieved in stages, we remeasure our previously held equity interest immediately before the acquisition to the acquisition date fair value and recognize any gain in our Consolidated Statements of Income.
We recognize the fair value of any contingent payments at the date of acquisition as part of the consideration transferred to acquire a business. The liability associated with contingent consideration is remeasured to fair value at each reporting period subsequent to the date of acquisition considering factors that may impact the timing and amount of contingent payments until the term of the agreement has expired or the contingency is resolved. Any changes in the fair value measurement will be recorded in our Consolidated Statements of Income. In evaluating the characterization of contingent and deferred payments, we analyze relevant factors, including the nature of the payment, continuing employment requirements, incremental payments to employees of the acquired business, and timing and rationale underlying the transaction, to determine whether the payments should be accounted for as additional purchase consideration or post-combination related services.

We expense direct costs related to the business combination, such as accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of ASC 420, Exit or Disposal Cost Obligations, on the acquisition date.

As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes (FASB ASC 740). This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes.

Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter and did not record any impairment losses in 2021, 2020, and 2019.

Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to twenty years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long-Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2021, 2020, and 2019.

Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation in accordance with FASB ASC 360-10, Property, Plant, and Equipment. We depreciate property and equipment using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group.

Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance.

The table below summarizes our depreciation expense related to capitalized developed software for the past three years:
(in millions)202120202019
Capitalized developed software depreciation expense$59.9 $53.9 $61.1 
The table below summarizes our capitalized software development costs for the past three years:
(in millions)202120202019
Capitalized software development costs$74.0 $60.3 $64.8 

Leases. We account for our right-of-use assets and operating lease liabilities in accordance with FASB ASC 842, Leases (FASB ASC 842). We determine if a contract is or contains a lease at the inception of the contract. For identified operating leases, we recognize a lease liability and right-of-use asset on the consolidated balance sheet. The right-of-use asset represents our right to use an underlying asset for the lease term, and the operating lease liability represents the company's obligation to make lease payments.
 
Our lease agreements consist primarily of real estate leases for office space and non-real estate leases for office equipment. In cases where an agreement contains both a lease and non-lease component, we do not allocate consideration to both components, but account for each as a single lease component by class of underlying asset. There are few instances of short-term agreements in our lease portfolio, which are typically arranged as needed and paid on a month-to-month basis. These leases are not recognized on the Consolidated Balance Sheet, but monthly lease expense is recognized on the Consolidated Statements of Income.
 
Right-of-use assets and operating lease liabilities are measured using the present value of future lease payments of the lease term at the commencement date. Right-of-use assets also include initial direct costs incurred by the company, net of pre-payments and lease incentives. In the absence of an explicit rate in the lease agreement, the discount rate used to calculate present value is equal to the company's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the life of the lease and is included in general and administrative expenses on the Consolidated Statements of Income.

Revenue Recognition. We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606). The company retained similar recognition and measurement upon adoption of ASC Topic 606 as under accounting standards in effect in periods prior to the adoption.

Under ASC Topic 606, we recognize revenue by applying the following five-step model to each of our customer arrangements:

1.Identify the customer contract;
2.Identify the performance obligations in the contract;
3.Determine the transaction price;
4.Allocate the transaction price to the performance obligations; and
5.Recognize revenue when (or as) performance obligations are satisfied.

Revenues are recognized when (or as) performance obligations are satisfied by transferring a promised product or service to the customer. Products or services are transferred when (or as) the customer obtains control of the product or service. The transaction price for a customer arrangement is the amount we expect to be entitled to in exchange for transferring the promised product or service. The transaction price may include fixed amounts, variable amounts, or both. When the right to payment exceeds revenue recognized the result is an increase to deferred revenue. When a customer’s license-based contract is signed, the customer’s service is activated immediately. License-based arrangements, our largest source of revenue from customers, generally is billed for the entire term, or billed annually (if the contract term is longer than one year). Customers are typically given payment terms of thirty to sixty days, although some customers pay immediately.

Revenue from contracts with customers is derived from license-based arrangements, asset-based arrangements, and transaction-based arrangements.
License-based revenue, which represents subscription services available to customers and not a license under the accounting guidance, is generated through subscription contracts with our customers of Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Morningstar Enterprise Components, PitchBook Data, Sustainalytics, and other similar products. Our performance obligations under these contracts are typically satisfied over time, as the customer has access to the service during the term of the subscription license and the level of service is consistent during the contract period. Each individual day within the contract period is viewed to be a service and the entirety of the service subscription term is determined to be a series combined into a single performance obligation and recognized over-time and on a straight-line basis, typically over terms of 1 to 3 years.

Asset-based revenue is generated through contracts with our customers of Morningstar Investment Management, Workplace Solutions, and Morningstar Indexes. Our performance obligations under these contracts are a daily asset management performance obligation, which is determined to be a daily service and thus satisfied over time as the customer receives continuous access to a service for the contract term. We recognize revenue daily over the contract term based on the value of assets under management and a tiered fee agreed to with the customer. Asset-based arrangements typically have a term of 1 to 3 years. The fees from such arrangements represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets, or significant disruptions in the market, are evaluated to determine if revisions to estimates of earned asset-based fees for the current quarter are needed. An estimate of the average daily portfolio balance is a key input in determining revenue for a given period. Estimates are based on the most recently reported quarter, and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based revenue is generated through contracts with our customers for DBRS Morningstar products and services, Internet advertising on Morningstar.com, and Morningstar-sponsored conferences. Our performance obligations for DBRS Morningstar include the issuance of the rating and may include surveillance services for a period of time as agreed with the customer. We allocate the transaction price to the deliverables based on their relative selling price, which is generally determined by the price we charge when the same deliverable is sold separately. Our performance obligation for the issuance of the rating is satisfied when the rating is issued, which is when we recognize the related revenue. Our performance obligations for surveillance services are satisfied over time, as the customer has access to the service during the surveillance period and the level of service is consistent during the contract period. Therefore, we recognize revenue for this performance obligation on a straight-line basis. Our performance obligations for Internet advertising and Morningstar-sponsored conferences are satisfied as the service is delivered; therefore, we recognize revenue when the performance obligation is satisfied (as the customer’s advertisements are displayed and at the completion of the Morningstar-sponsored conference).

Our contracts with customers may include multiple performance obligations. For most of these arrangements, we generally allocate revenue to each performance obligation based on its estimated standalone selling price. We generally determine standalone selling prices based on prices charged to customers when the same performance obligation is sold separately.

Our contracts with customers may include third-party involvement in providing goods or services to the customer. The inclusion of third-party content does not result in separate performance obligations because is it not delivered separately from the other service offerings. In these arrangements, the customer has contracted to receive a single, integrated and bundled solution with third-party and Morningstar content delivered via Morningstar’s subscription services. Revenue and related costs of revenue from third-party content is presented on a gross basis within the consolidated financial statements.

Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods.

Sales Commissions. We capitalize sales commissions, which are considered directly attributable to obtaining a customer contract under ASC Topic 606 and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers. Such costs are capitalized by developing estimates using a portfolio approach that aggregates these costs by legal entity within their geographical regions. Capitalized sales commissions are amortized using the straight-line method over a period that is consistent with the transfer of the products or services to the customer to which the sales commission relates. The period of transfer for each portfolio is the shorter of the weighted-average customer life, or the economic life of the underlying technology that delivers the products or services. As of December 31, 2021, the period of transfer was determined to be approximately two to three years. Discretionary amounts which are added to sales commission payments are expensed as incurred, as they are not considered to be directly attributable to obtaining a customer contract.
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation (FASB ASC 718). Our stock-based compensation expense reflects grants of restricted stock units, performance share awards, market stock units, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the grant date based on the closing market price of Morningstar's common stock on the day prior to the grant. For market stock units, we estimate the fair value of the awards using a Monte Carlo valuation model. For stock options, we estimate the fair value of our stock options on the date of grant using the Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period.

We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience, as needed.

Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, which prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions.

We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment.
v3.22.0.1
Credit Arrangements
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Credit Arrangements Credit Arrangements
Debt

The following table summarizes our total debt and long-term debt as of December 31, 2021 and 2020.
(in millions)As of December 31, 2021As of December 31, 2020
Term Facility, net of unamortized debt issuance costs of $0.0 million and $0.1 million, respectively$11.0 $100.8 
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $1.6 million and $1.7 million, respectively348.4 348.3 
Long-term debt$359.4 $449.1 

Credit Agreement

On July 2, 2019, the company entered into a senior credit agreement (the Credit Agreement). The Credit Agreement provides the company with a five-year multi-currency credit facility with an initial borrowing capacity of up to $750.0 million, including a $300.0 million revolving credit facility (the Revolving Credit Facility) and a term loan facility of $450.0 million (the Term Facility). The Credit Agreement also provides for the issuance of up to $50.0 million of letters of credit and a $100.0 million sub-limit for a swingline facility under the Revolving Credit Facility. The Credit Agreement will expire on July 2, 2024. As of December 31, 2021, our total outstanding debt under the Credit Agreement was $11.0 million with borrowing availability of $300.0 million under the Revolving Credit Facility.

The interest rate applicable to any loan under the Credit Agreement is, at our option, either: (i) the applicable LIBOR plus an applicable margin for such loans, which ranges between 1.00% and 1.50%, based on our consolidated leverage ratio or (ii) the lender's base rate plus the applicable margin for such loans, which ranges between 0.00% and 0.50%, based on our consolidated leverage ratio.

The proceeds of the Term Facility and initial borrowings under the Revolving Credit Facility were used to finance the acquisition of DBRS. The proceeds of future borrowings under the Revolving Credit Facility may be used for working capital, capital expenditures or any other lawful corporate purpose.
364-Day Revolving Credit Facility

On June 30, 2020, we entered into a 364-day revolving credit facility (364-Day Revolving Credit Facility) providing for borrowings in an aggregate principal amount of up to $50.0 million. The 364-Day Revolving Credit Facility expired on June 29, 2021 and we chose not to renew the facility upon expiration.

Private Placement Debt Offering

On October 26, 2020, we completed the issuance and sale of $350.0 million aggregate principal amount of 2.32% senior notes due October 26, 2030 (the 2030 Notes), in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Proceeds were primarily used to pay off a portion of the company's outstanding debt under the Credit Agreement. Interest on the 2030 Notes will be paid semi-annually on each October 30 and April 30 during the term of the 2030 Notes and at maturity, with the first interest payment date occurring on April 30, 2021. As of December 31, 2021, our total outstanding debt, net of issuance costs, under the 2030 Notes was $348.4 million.

Compliance with Covenants

Each of the Credit Agreement and the 2030 Notes include customary representations, warranties, and covenants, including financial covenants, that require us to maintain specified ratios of consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) to consolidated interest charges and consolidated funded indebtedness to consolidated EBITDA, which are tested on a quarterly basis. We were in compliance with these financial covenants as of December 31, 2021.
v3.22.0.1
Income Per Share
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
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 net income per share:

(in millions, except per share amounts)202120202019
Basic net income per share:
Consolidated net income $193.3 $223.6 $152.0 
Weighted average common shares outstanding43.0 42.9 42.7 
Basic net income per share$4.50 $5.22 $3.56 
Diluted net income per share:
Consolidated net income$193.3 $223.6 $152.0 
Weighted average common shares outstanding43.0 42.9 42.7 
Net effect of dilutive stock options and restricted stock units0.4 0.3 0.5 
Weighted average common shares outstanding for computing diluted income per share43.4 43.2 43.2 
Diluted net income per share$4.45 $5.18 $3.52 
During the periods presented, the number of anti-dilutive restricted stock units, performance share awards, or market stock units excluded from our calculation of diluted earnings per share was immaterial.
v3.22.0.1
Revenue
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue

The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
Year ended December 31
(in millions)202120202019
License-based $1,131.7 $934.9 $812.7 
Asset-based264.9 223.8 211.6 
Transaction-based302.7 230.8 154.7 
Consolidated revenue$1,699.3 $1,389.5 $1,179.0 

License-based performance obligations are generally satisfied over time as the customer has access to the product or service during the term of the subscription license and the level of service is consistent during the contract period. License-based agreements typically have a term of 1 to 3 years and are accounted for as subscription services available to customers and not as a license under the accounting guidance. License-based revenue is generated from the sale of PitchBook, Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Sustainalytics, and other similar products.

Asset-based performance obligations are satisfied over time as the customer receives continuous access to a service for the term of the agreement. Asset-based arrangements typically have a term of 1 to 3 years. Asset-based fees represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. The timing of client asset reporting and the structure of certain contracts can result in a one-quarter lag between market movements and the impact on earned revenue. Significant changes in the underlying fund assets and significant disruptions in the market are evaluated to determine whether estimates of earned asset-based fees need to be revised for the current quarter. An estimate of variable consideration is included in the initial transaction price only to the extent it is probable that a significant reversal in the amount of the revenue recognized will not occur. Estimates of asset-based fees are based on the most recently completed quarter and, as a result, it is unlikely a significant reversal of revenue would occur. Asset-based revenue is generated by Investment Management, Workplace Solutions, and Morningstar Indexes.

Transaction-based performance obligations are satisfied when the product or service is completed or delivered. Transaction-based revenue is generated by DBRS Morningstar, Internet advertising, and Morningstar-sponsored conferences. DBRS Morningstar revenue includes revenue from surveillance services, which is recognized over time, as the customer has access to the service during the surveillance period.

Contract liabilities

Our contract liabilities represent deferred revenue. We record contract liabilities when cash payments are received or due in advance of our performance, including amounts which may be refundable. The contract liabilities balance as of December 31, 2021 had a net increase of $73.5 million, primarily driven by cash payments received or payable in advance of satisfying our performance obligations. We recognized $296.2 million of revenue in 2021 that was included in the contract liabilities balance as of December 31, 2020.
We expect to recognize revenue related to our contract liabilities for 2022 and subsequent years as follows:
(in millions)As of December 31, 2021
2022$679.5 
2023160.4 
202449.3 
202517.5 
20269.9 
Thereafter 30.1 
Total$946.7 

The aggregate amount of revenue we expect to recognize for 2022 and subsequent years is higher than our contract liability balance of $413.8 million as of December 31, 2021. The difference represents the value of future obligations for signed contracts where we have not yet begun to satisfy the performance obligations or have partially satisfied the performance obligations.

The table above does not include variable consideration for unsatisfied performance obligations related to certain of our licensed-based, asset-based, and transaction-based contracts as of December 31, 2021. We are applying the optional exemption available under ASC Topic 606, as the variable consideration relates to these unsatisfied performance obligations being fulfilled as a series. The performance obligations related to these contracts are expected to be satisfied over the next 1 to 3 years as services are provided to the client. For license-based contracts, the consideration received for services performed is based on the number of future users, which is not known until the services are performed. The variable consideration for this revenue can be affected by the number of user licenses, which cannot be reasonably estimated. For asset-based contracts, the consideration received for services performed is based on future asset values, which are not known until the services are performed. The variable consideration for this revenue can be affected by changes in the underlying value of fund assets due to client redemptions, additional investments, or movements in the market. For transaction-based contracts for Internet advertising, the consideration received for services performed is based on the number of impressions, which is not known until the impressions are created. The variable consideration for this revenue can be affected by the timing and quantity of impressions in any given period and cannot be reasonably estimated.

As of December 31, 2021, the table above also does not include revenue for unsatisfied performance obligations related to certain of our license-based and transaction-based contracts with durations of one year or less since we are applying the optional exemption under ASC Topic 606. For certain license-based contracts, the remaining performance obligation is expected to be less than one year based on the corresponding subscription terms or the existence of cancellation terms that may be exercised causing the contract term to be less than one year from December 31, 2021. For transaction-based contracts, such as new credit rating issuances and Morningstar-sponsored conferences, the related performance obligations are expected to be satisfied within the next 12 months.

Contract Assets

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

The following table summarizes our contract assets balance:
As of December 31
(in millions)20212020
Accounts receivable, less allowance for credit losses$268.9 $205.1 
Deferred commissions62.3 39.6 
Total contract assets$331.2 $244.7 
v3.22.0.1
Segment and Geographical Area Information
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment and Geographical Area Information Segment and Geographical Area Information
Segment Information

We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2. We evaluate the performance of our reporting segment based on revenue and operating income.

Geographical Area Information

The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net, and operating lease assets, by geographical area:

Revenue by geographical area
Year ended December 31
(in millions)202120202019
United States$1,184.3 $970.8 $866.4 
Asia41.1 33.6 27.9 
Australia56.9 45.6 39.5 
Canada112.9 101.5 56.9 
Continental Europe159.1 113.8 88.0 
United Kingdom135.7 117.5 93.9 
Other9.3 6.7 6.4 
Total International515.0 418.7 312.6 
Consolidated revenue$1,699.3 $1,389.5 $1,179.0 

Property, equipment, and capitalized software, net by geographical area
As of December 31
(in millions)20212020
United States$139.3 $127.0 
Asia8.8 7.5 
Australia3.1 3.7 
Canada3.8 2.9 
Continental Europe10.1 6.2 
United Kingdom6.4 7.3 
Other0.3 0.5 
Total International32.5 28.1 
Consolidated property, equipment, and capitalized software, net$171.8 $155.1 
Operating lease assets by geographical area
As of December 31
(in millions)20212020
United States$82.7 $89.2 
Asia24.1 12.6 
Australia4.6 5.2 
Canada7.1 7.4 
Continental Europe15.8 17.0 
United Kingdom14.4 15.6 
Other0.5 0.7 
Total International66.5 58.5 
Consolidated operating lease assets$149.2 $147.7 
The long-lived assets by geographical area table does not include deferred commissions, non-current as the balance is not material.
v3.22.0.1
Investments and Fair Value Measurements
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure Investments and Fair Value Measurements
 
We classify our investments into two categories: equity investments and debt securities. We further classify our debt securities into available-for-sale, held-to-maturity, and trading securities. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. Except for the convertible note described below, all investments in our investment portfolio have valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access, and, therefore, are classified as Level 1 within the fair value hierarchy. We classify our investment portfolio as shown below:
 
As of December 31
(in millions)20212020
Equity investments$46.8 $39.6 
Available-for-sale12.3 0.9 
Held-to-maturity3.2 1.2 
Trading securities— — 
Total$62.3 $41.7 
The following table shows the cost, unrealized gains, and fair values related to investments classified as equity investments, available-for-sale, and held-to-maturity:
 
 As of December 31, 2021As of December 31, 2020
(in millions)CostUnrealized
Gain
Unrealized
Loss
Fair
Value
CostUnrealized
Gain
Unrealized
Loss
Fair
Value
Equity investments:        
Marketable equity investments, exchange traded funds, and mutual funds$39.6 $8.2 $(1.0)$46.8 $34.6 $5.0 $— $39.6 
Available-for-sale:
Marketable debt securities5.5 — — 5.5 0.9 — — 0.9 
Convertible note5.0 1.8 — 6.8 — — — — 
Held-to-maturity:
Certificates of deposit
3.2 — — 3.2 1.2 — — 1.2 
Total$53.3 $10.0 $(1.0)$62.3 $36.7 $5.0 $— $41.7 
 
As of December 31, 2021 and 2020, debt securities with unrealized losses for greater than a 12-month period were not material to the 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 held-to-maturity based on their contractual maturities as of December 31, 2021 and 2020.

 As of December 31, 2021As of December 31, 2020
(in millions)CostFair ValueCostFair Value
Held-to-maturity:    
Due in one year or less$3.2 $3.2 $1.2 $1.2 
Due in one to three years— — — — 
Total$3.2 $3.2 $1.2 $1.2 

The following table shows the realized gains and losses arising from sales of our investments classified as equity investments and available-for-sale recorded in our Consolidated Statements of Income: 
(in millions)202120202019
Realized gains$5.0 $2.1 $1.2 
Realized losses— — — 
Realized gains, net$5.0 $2.1 $1.2 
We determine realized gains and losses using the specific identification method.
The following table shows the net unrealized (losses) gains on the convertible note and trading securities as recorded in our Consolidated Statements of Income:

 
(in millions)202120202019
Unrealized (losses) gains, net$1.8 $(0.4)$0.6 

The table below shows the fair value of our assets and liabilities subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy:
 

 Fair Value
 as ofLevel Within the Fair Value Hierarchy as of December 31, 2021
(in millions)December 31, 2021Level 1Level 2Level 3
Financial assets:
Marketable equity investments, exchange-traded funds, and mutual funds$46.8 $46.8 $— $— 
Marketable debt securities5.5 5.5 — — 
Convertible note6.8 — — 6.8 
Cash equivalents0.6 0.6 — — 
Financial liabilities:
Contingent consideration17.3 — — 17.3 
Total$77.0 $52.9 $— $24.1 
 
 Fair Value
 as ofLevel Within the Fair Value Hierarchy as of December 31, 2020
(in millions)December 31, 2020Level 1Level 2Level 3
Financial assets:
Marketable equity investments, exchange-traded funds, and mutual funds$39.6 $39.6 $— $— 
Marketable debt securities0.9 0.9 — — 
Cash equivalents0.8 0.8 — — 
Financial liabilities:
Contingent consideration53.7 — — 53.7 
Total$95.0 $41.3 $— $53.7 

We measure the fair value of money market funds, mutual funds, marketable equity securities, marketable debt securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. We did not hold any securities categorized as Level 2 as of December 31, 2021 and 2020.

As of December 31, 2021, financial assets and liabilities that are classified as Level 3 within the fair value hierarchy include a contingent consideration liability of $17.3 million and a convertible note recorded as an available-for-sale investment of $6.8 million.
As of December 31, 2021, the contingent consideration liability reflects potential future payments that are contingent upon the achievement of certain revenue metrics related to our acquisition of Sustainalytics that will be paid on June 30, 2022. This additional purchase consideration, for which the amount is contingent, was recognized at fair value at the date of acquisition using a Monte Carlo simulation, which requires the use of management assumptions and inputs, such as projected financial information related to revenue growth and expected margin percentage, among other valuation related items, and is remeasured each reporting period until the contingency is resolved with any changes in fair value recorded in current period earnings. At December 31, 2021, the fair value of the contingent consideration liability was impacted by foreign currency translations and not by adjustments to key assumptions used in our fair value estimates compared to the assumptions used in the acquisition date fair value estimates. In the second quarter of 2021, we made the second cash payment of $47.5 million related to our acquisition of Sustainalytics, which resulted in a decrease of $34.4 million to the contingent consideration liability balance. The payment was based on the achievement of certain revenue metrics for the year ended December 31, 2020.

The convertible note purchased in the second quarter of 2021 will be remeasured at fair value each reporting period until it is converted, with any gains or losses recorded in our Consolidated Statements of Income.
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets
12 Months Ended
Dec. 31, 2021
Acquisitions, Goodwill, and Other Intangible Assets [Abstract]  
Goodwill and Intangible Assets Disclosure Acquisitions, Goodwill, and Other Intangible Assets
 
2021 Acquisitions

Planned acquisition of Wealth Management Platform Provider Praemium's U.K. and International Business

On December 21, 2021, we announced we reached an agreement to acquire 100% of Praemium Limited's operations in the United Kingdom, Jersey, Hong Kong, and Dubai (Praemium). Across its U.K. and international business, Praemium offers proprietary SaaS-based technology and services that allow fee-based advisers to outsource key elements of the advice workflow. The end-to-end solution from Praemium will add to the company's existing data, fund profiles, portfolio analytics, and investment management capabilities available to advisers.

The transaction consideration includes a cash payment at closing of approximately £35 million, subject to completion adjustments. The closing of the transaction remains subject to regulatory approval from the Financial Conduct Authority in the United Kingdom and the Jersey Financial Services Commission in Jersey, and other customary conditions. We expect the transaction to be completed during the second or third quarter of 2022.

Moorgate Benchmarks

On September 3, 2021, we acquired Moorgate Benchmarks (Moorgate), a privately held European-based global provider of index design, calculation, and administration. We began consolidating the financial results of Moorgate in our consolidated financial statements on September 3, 2021.

The transaction has been accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We finalized the purchase price allocation related to our acquisition of Moorgate during the fourth quarter of 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition.

The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $14.9 million of goodwill and $13.4 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Technology-based assets$12.1 7
Customer-related assets1.3 5
Total intangible assets$13.4 

We recognized a net deferred tax liability of $3.2 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2020 Acquisitions

Hueler Analytics

On January 31, 2020, we acquired Hueler Analytics' Stable Value Fund Comparative Universe Data and Stable Value Index (Hueler Analytics). We began consolidating the financial results of Hueler Analytics in our consolidated financial statements on January 31, 2020.

Plan Plus Global

On April 3, 2020, we acquired PlanPlus Global, a financial-planning, risk-profiling, and portfolio tracking software firm. The acquisition expands our financial-planning capabilities for advisors. We began consolidating the financial results of PlanPlus Global in our consolidated financial statements on April 3, 2020.

Increased Ownership Interest in Sustainalytics Holding B.V. (Sustainalytics)

On July 2, 2020, we completed the acquisition of the remaining 60% interest in Sustainalytics, a globally recognized leader in environmental, social, and governance (ESG) ratings and research, for an initial cash payment of $61.2 million. The acquisition was accounted for as a business combination with July 2, 2020 as the date of acquisition, and the company was determined to be the acquirer. Accordingly, we began consolidating the financial results of Sustainalytics in our consolidated financial statements on July 2, 2020. We previously held an approximately 40% ownership interest in Sustainalytics, which had an estimated fair value of $75.4 million at the date of the acquisition and a book value of $24.5 million immediately prior to the acquisition and resulted in a holding gain of $50.9 million.

The transaction was accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.

We finalized the purchase price allocation related to our acquisition of Sustainalytics during 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition. Subsequent measurement changes for certain contingent liabilities were recognized in the company’s earnings.

Consideration related to the acquisition consisted of an initial cash payment of $61.2 million and contingent payments with an acquisition date fair value of $75.2 million, a portion of which is treated as additional purchase consideration and the remainder, which is sometimes referred to as an earn-out, is accounted for and described as compensation expense for purpose of the following discussion and disclosure. The acquisition date fair values of the additional purchase consideration and compensation were $47.4 million and $27.8 million, respectively. The contingent payments are due on June 30, 2021 and 2022, and each payment is determined based on a multiple of Sustainalytics' revenues for the years ended December 31, 2020 and 2021, respectively, which are also the measurement periods for determining the final payments. In the second quarter of 2021, we made the second cash payment of $47.5 million, which resulted in a decrease of $34.4 million to the contingent consideration liability balance. The payment was based on the achievement of certain revenue metrics for the year ended December 31, 2020.

We used a Monte Carlo simulation to arrive at the estimated fair values of the contingent payments at the acquisition date. At subsequent balance sheet dates, the additional purchase consideration, including contingent payments, will continue to be measured at fair value and is classified as "Contingent consideration liability" on our Consolidated Balance Sheet as of December 31, 2021 and as "Contingent consideration liability" and "Other long-term liabilities" on our Consolidated Balance Sheet as of December 31, 2020. The compensation component is measured based on probability weighted future benefits expected to be paid, and is reflected in "Current liabilities - Accrued compensation" on our Consolidated Balance Sheet as of December 31, 2021 and in "Current liabilities - Accrued compensation" and "Accrued Compensation" on our Consolidated Balance Sheet as of December 31, 2020. At December 31, 2021 and 2020, the fair value of the contingent consideration liability was impacted by foreign currency translations and not by adjustments to key assumptions used in our fair value estimates compared to the assumptions used in the acquisition date fair value estimates. As of December 31, 2021, the compensation component of the final payment was determined using final recorded revenue consistent with the measurement period which ended at December 31, 2021.
The book value of our 40% ownership interest immediately prior to the acquisition date was $24.5 million, and we recorded a $50.9 million non-cash holding gain for the difference between the fair value and the book value of our previously held equity interest. The acquisition of the additional 60% interest was considered an acquisition achieved in stages and resulted in the remeasurement of the previously held equity interest to fair value. The company determined the fair value of the previously held equity interest using a discounted cash flow analysis (an income approach) based on projected cash flows for Sustainalytics combined with other valuation approaches and considerations to estimate total purchase consideration, which was divided by fully diluted outstanding shares to determine the fair value per share. The fair value per share was then applied to the shares of Sustainalytics held by the company to derive the acquisition date fair value of the previously held equity interest. The gain is classified as "Holding gain on previously held equity interest" in our Consolidated Statement of Income for the year ended December 31, 2020.

The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:
(in millions)
Fair value of consideration transferred$108.6 
Fair value of the previously held equity interest75.4 
Cash and cash equivalents$9.8 
Accounts receivable6.2 
Intangible assets, net79.5 
Operating lease assets5.2 
Other current and non-current assets7.4 
Deferred revenue(21.2)
Operating lease liability(5.2)
Deferred tax liability, net(16.9)
Other current and non-current liabilities(15.5)
Total fair value of net assets acquired$49.3 
Goodwill$134.7 

At July 2, 2020, accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. At December 31, 2020, substantially all amounts were collected.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $79.5 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Customer-related assets$22.9 20
Technology-based assets46.7 10
Intellectual property9.9 10
Total intangible assets$79.5 

Goodwill of $134.7 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.

We recognized a net deferred tax liability of $16.9 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2019 Acquisitions

AdviserLogic

On December 1, 2019, we acquired AdviserLogic, a cloud-based financial planning software platform for financial advisors in Australia. We began consolidating the financial results of AdviserLogic in our Consolidated Financial Statements on December 1, 2019.
DBRS

On July 2, 2019, we acquired 100% of the voting equity interests of DBRS for total cash consideration of $682.1 million. DBRS delivers comprehensive credit rating services and ongoing surveillance to customers in various market sectors across Canada, the U.S., and Europe. The combination of DBRS with Morningstar Credit Ratings' business (collectively, DBRS Morningstar) expands global asset class coverage and provides investors with fixed-income analysis and research through the combined platform.
We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on July 2, 2019. DBRS Morningstar contributed $127.6 million of revenue and $123.5 million of operating expense during the year ended December 31, 2019. We incurred transaction-related costs of $6.5 million during the year ended December 31, 2019.
We accounted for this transaction using the acquisition method of accounting and Morningstar was the accounting acquirer.
We finalized the purchase price allocation related to our acquisition of DBRS during 2020 and did not record any significant adjustments compared with our preliminary estimates at the date of acquisition.
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
(in millions)
Cash consideration transferred$682.1 
Cash and cash equivalents$8.5 
Accounts receivable28.8 
Property, equipment, and capitalized software, net12.8 
Intangible assets, net284.1 
Goodwill473.3 
Operating lease assets33.3 
Other current and non-current assets5.7 
Deferred revenue(43.2)
Deferred tax liability, net(66.6)
Operating lease liabilities (35.0)
Other current and non-current liabilities(19.6)
Total fair value of DBRS$682.1 
Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $284.1 million of acquired intangible assets, as follows:
(in millions)Weighted Average Useful Life (years)
Customer-related assets$219.1 10
Technology-based assets29.4 5
Intellectual property (trademarks and trade names)35.6 7
Total intangible assets$284.1 

We recognized a net deferred tax liability of $66.6 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
Goodwill of $473.3 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.
The following unaudited pro forma information presents a summary of our Consolidated Statements of Income for the year ended December 31, 2019 and 2018, as if we had completed the acquisition as of January 1, 2018.
This unaudited pro forma information is presented for illustrative purposes and is not intended to represent or be indicative of the actual results of operations or expected synergies of DBRS Morningstar that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, nor is it intended to represent or be indicative of future results of operations.
In calculating the pro forma information below, we included an estimate of amortization expense related to the intangible assets acquired, depreciation expense due to changes in estimated remaining useful lives of long-lived assets, reduction in revenue as a result of the fair value adjustments to deferred revenue, and interest expense incurred on the long-term debt.
Unaudited Pro Forma Financial Information (in millions)20192018
Revenue$1,259.2 $1,184.5 
Operating income190.3 223.6 
Net income148.2 179.7 
Basic net income per share$3.47 $4.22 
Diluted net income per share$3.43 $4.18 
Other acquisition activity during 2019 was not material.

Goodwill
 
The following table shows the changes in our goodwill balances from January 1, 2020 to December 31, 2021:
 
 (in millions)
Balance as of January 1, 2020$1,039.1 
Acquisition of Sustainalytics134.7 
Other, primarily foreign currency translation31.2 
Balance as of December 31, 2020$1,205.0 
Acquisition of Moorgate14.9 
Other, primarily foreign currency translation(12.9)
Balance as of December 31, 2021$1,207.0 

We did not record any impairment losses in 2021, 2020, or 2019 as the estimated fair value of our reporting unit exceeded its carrying value and we did not note any indicators of impairment. We perform our annual impairment testing during the fourth quarter of each year.
Intangible Assets

The following table summarizes our intangible assets: 
 As of December 31, 2021As of December 31, 2020
(in millions)GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
Customer-related assets$413.7 $(192.8)$220.9 11$415.6 $(163.7)$251.9 11
Technology-based assets232.3 (157.7)74.6 7223.2 (135.2)88.0 7
Intellectual property & other 83.0 (50.3)32.7 883.6 (43.4)40.2 8
Total intangible assets$729.0 $(400.8)$328.2 10$722.4 $(342.3)$380.1 10
 
The following table summarizes our amortization expense related to intangible assets:

(in millions)202120202019
Amortization expense$62.0 $58.8 $36.5 
 
We did not record any impairment losses involving intangible assets in 2021, 2020, or 2019.

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

Based on acquisitions and divestitures completed through December 31, 2021, we expect intangible amortization expense for 2022 and subsequent years to be as follows:
 (in millions)
2022$54.7 
202350.9 
202444.7 
202538.2 
202634.5 
Thereafter105.2 
Total$328.2 

Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated useful lives, impairments, and foreign currency translation.
v3.22.0.1
Investments in Unconsolidated Entities
12 Months Ended
Dec. 31, 2021
Investments in Unconsolidated Entities [Abstract]  
Equity Method Investments and Joint Ventures Disclosure Investments in Unconsolidated Entities
 
Our investments in unconsolidated entities consist primarily of the following:
 
As of December 31,
(in millions)20212020
Equity method investments$31.4 $7.4 
Investment in MJKK18.7 18.9 
Cost method investments13.2 6.3 
Total investments in unconsolidated entities$63.3 $32.6 
 
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets financial information products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 4765. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price:
As of December 31,
 20212020
Morningstar’s approximate ownership of MJKK22.1 %22.4 %
Approximate market value of Morningstar’s ownership in MJKK:  
Japanese yen (¥ in millions)¥12,781.0 ¥9,221.9 
Equivalent U.S. dollars ($ in millions)$111.1 $89.4 
v3.22.0.1
Property, Equipment, and Capitalized Software
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property, Equipment, and Capitalized Software Property, Equipment, and Capitalized Software, net
The following table shows our property, equipment, and capitalized software, net summarized by major category:

As of December 31,
(in millions)20212020
Capitalized software$464.5 $390.2 
Capitalized equipment85.7 74.6 
Furniture and fixtures36.9 35.6 
Leasehold improvements100.7 96.0 
Telephone equipment2.2 2.4 
Construction in progress11.0 8.6 
Property, equipment, and capitalized software, at cost701.0 607.4 
Less accumulated depreciation(529.2)(452.3)
Property, equipment, and capitalized software, net$171.8 $155.1 

The following table summarizes our depreciation expense:
(in millions)202120202019
Depreciation expense$87.0 $80.1 $81.2 
v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Leases, Operating [Abstract]  
Lessee, Operating Leases Leases
We lease office space and certain equipment under various operating and finance leases, with most of our lease portfolio consisting of operating leases for office space.

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

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

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

Our leases have remaining lease terms of approximately 1 year to 12 years, which may include the option to extend the lease when it is reasonably certain we will exercise that option. We do not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants.

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

The following table summarizes our operating lease assets and lease liabilities:
Leases (in millions)Balance Sheet ClassificationAs of December 31, 2021As of December 31, 2020
Assets
Operating Operating lease assets$149.2 $147.7 
Liabilities
OperatingOperating lease liabilities, current$36.4 $39.9 
OperatingOperating lease liabilities, non-current135.7 137.7 
Total lease liabilities$172.1 $177.6 

Our operating lease expense for the years ended December 31, 2021, 2020, and 2019 was $42.5 million, $42.4 million, and $33.9 million, respectively. Charges related to our operating leases that are variable and, therefore, not included in the measurement of the lease liabilities were $16.2 million and $14.9 million for the years ended December 31, 2021 and 2020, respectively. We made operating lease payments of $47.4 million and $45.3 million million during the years ended December 31, 2021 and 2020, respectively.

The following table shows our minimum future rental commitments due in each of the next five years and thereafter for operating leases:
Minimum Future Lease Commitments (in millions)
2022$41.5 
202339.2 
202428.0 
202522.3 
202618.8 
Thereafter40.9 
Total minimum lease commitments190.7 
Adjustment for discount to present value18.6 
Total$172.1 

The following table summarizes our weighted-average lease terms and weighted-average discount rates for our operating leases:
As of December 31, 2021
Weighted-average remaining lease term (in years)6.0
Weighted-average discount rate3.3 %
v3.22.0.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-Based Compensation Plans
 
Our shareholders approved the Morningstar Amended and Restated 2011 Stock Incentive Plan (the 2021 Plan) on May 14, 2021 and authorized an additional 1,050,000 shares for issuance under the 2021 Plan. As of that date, we stopped granting awards under the Morningstar 2011 Stock Incentive Plan (the 2011 Plan). The 2021 Plan amended and restated the 2011 Plan, which itself had amended and restated the 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 2021 Plan provides for a variety of equity-based awards, including, among other things, restricted stock units, restricted stock, performance share awards, market stock units, and stock options. Under the 2011 Plan, we primarily granted restricted stock units, stock options, and market share unit awards. We granted restricted stock units, restricted stock, and stock options under the 2004 Plan.
All officers, other employees, non-employee directors, and consultants or other independent contractors of the company and its subsidiaries and persons expected to become the same are eligible to receive awards under the 2021 Plan.

Shares delivered under the 2021 Plan may be authorized but unissued shares, or authorized but issued shares that we reacquired and held as treasury shares or otherwise, or any combination of the foregoing. The 2021 Plan no longer permits the replenishment of its share reserve with shares withheld by the company to pay the exercise price of an option or to pay tax withholdings on any award. Further, the 2021 Plan prohibits the replenishment of the share reserve with shares that are not issued as a result of the net settlement of a stock option or stock appreciation right (SAR) or shares that are repurchased on the open market using proceeds from the exercise of a stock option.

The following table summarizes the number of shares available for future grants under our 2011 Plan:
As of December 31
(in millions)2021
Shares available for future grants3.2 
 
Accounting for Stock-Based Compensation Awards
 
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years:
Year ended December 31
(in millions)202120202019
Restricted stock units$25.8 $22.2 $20.4 
Performance share awards10.6 10.2 20.6 
Market stock units5.5 4.2 3.4 
Total stock-based compensation expense$41.9 $36.6 $44.4 
Income tax benefit related to the stock-based compensation expense$8.9 $6.7 $10.0 

The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years:
Year ended December 31
(in millions)202120202019
Cost of revenue$16.5 $13.5 $12.9 
Sales and marketing4.4 4.6 5.6 
General and administrative21.0 18.5 25.9 
Total stock-based compensation expense$41.9 $36.6 $44.4 
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2021 and the expected number of months over which the expense will be recognized:

Unrecognized stock-based compensation expense (in millions)Weighted average expected amortization period (months)
Restricted stock units$54.0 34
Market stock units9.8 26
Total unrecognized stock-based compensation expense$63.8 33

In accordance with FASB ASC 718, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest.
 
Restricted Stock Units
 
Restricted stock units (RSUs) represent the right to receive a share of Morningstar common stock when that unit vests. RSUs granted to employees typically vest ratably over a four-year period. RSUs granted to non-employee directors vest ratably over a three-year period.

We measure the fair value of our RSUs on the grant date 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 past three years:
Restricted Stock Units (RSUs)TotalWeighted
Average
Grant Date Value
per RSU
RSUs Outstanding - December 31, 2018527,465 $89.53 
Granted233,618 135.67 
Vested(269,917)95.67 
Forfeited(31,721)100.71 
RSUs Outstanding - December 31, 2019459,445 $108.61 
Granted245,078 153.01 
Vested(240,297)108.94 
Forfeited(27,459)119.22 
RSUs Outstanding - December 31, 2020436,767 $132.68 
Granted187,916 246.85 
Vested(229,063)141.04 
Forfeited(23,910)166.99 
RSUs Outstanding - December 31, 2021371,710 $183.04 

Market Stock Units
Beginning in May 2017, executive officers, other than Joe Mansueto, and certain other employees, were granted market stock units (MSUs). These MSUs represent the right to receive a target number of shares that will vest at the end of a three-year performance period depending on the company’s total shareholder return over that three-year period. The MSUs that were granted in 2019, 2020, and 2021 to the executive officers and certain other employees also have a feature that will provide an increased number of shares that can be earned in 2022, 2023, and 2024, respectively, if certain revenue metrics are exceeded or other performance goals are met as determined at the discretion of the board of directors.
We measure the fair value of our MSUs on the grant date using a Monte Carlo valuation model. We amortize that value to stock-based compensation expense ratably over the vesting period.

We used the following assumptions to estimate the fair value of our MSUs:
Assumptions for Monte Carlo Valuation Model
Grant DateExpected volatilityDividend yieldRisk-free interest rate
May 15, 201817.4 %0.89 %2.70 %
November 15, 201819.6 %0.83 %2.92 %
May 15, 201920.3 %0.84 %2.17 %
November 15, 201921.0 %0.72 %1.59 %
May 15, 202025.4 %0.83 %0.20 %
November 15, 202026.9 %0.58 %0.23 %
May 15, 202128.0 %0.51 %0.33 %
November 15, 202126.9 %0.40 %0.85 %

The table below shows MSUs granted and market stock units outstanding as of December 31, 2021:
As of December 31, 2021
MSUs granted during 202131,114 
Weighted average fair value per award $181.49 
Number of MSUs outstanding108,322 
Unamortized expense, based on current performance levels (in millions)$9.8 
PitchBook Bonus Plan
In connection with our acquisition of PitchBook, we adopted a management bonus sub-plan under the 2011 Plan (or any successor Morningstar plan including the 2021 Plan) for certain employees of PitchBook (the PitchBook Plan). We renewed the PitchBook Plan for the 2020-2022 period. Pursuant to the terms of this renewal, awards having an aggregate target value equal to $30.0 million will be available for issuance with annual grants of $7.5 million for 2020, $7.5 million in 2021, and $15.0 million in 2022

Each grant will consist of performance-based share unit awards, which will vest over a one-year period and will be measured primarily based on the achievement of certain annual revenue targets specifically related to PitchBook’s business. Upon achievement of these targets, earned performance units will be settled in shares of our common stock on a one-for-one basis. If PitchBook exceeds certain performance conditions, the PitchBook Plan participants will receive payment for performance units in excess of the aggregate target values described above. If PitchBook fails to meet threshold performance conditions, the PitchBook Plan participants will not be entitled to receive payment for any performance units.

The table below shows target performance share awards granted and shares that will be issued based on final performance levels for performance share awards granted as of December 31, 2021:
As of December 31, 2021
Target performance share awards granted35,201 
Weighted average fair value per award $213.04 
Number of shares that will be issued based on final 2021 performance levels48,395 
Unamortized expense, based on current performance levels (in millions)$— 
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.

The last time the company granted stock options was in May 2011, when we granted 86,106 stock options under the 2004 Plan. We estimated the fair value of the options on the grant date using the Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share based on the following assumptions:
Assumptions for Black-Scholes Option Pricing Model
Expected life (years)7.4
Volatility factor35.1%
Dividend yield0.35%
Interest rate2.87%

The following table summarizes stock option activity in the past three years for our various stock option grants:
202120202019
Option GrantsUnderlying
Shares
Weighted
Average
Exercise
Price
Underlying
Shares
Weighted
Average
Exercise
Price
Underlying
Shares
Weighted
Average
Exercise
Price
Options outstanding—beginning of year3,600 $57.28 37,269 $57.28 40,685 $57.28 
Granted— — — — — — 
Canceled— — — — — — 
Exercised(3,600)57.28 (33,669)57.28 (3,416)57.28 
Options outstanding—end of year— $57.28 3,600 $57.28 37,269 $57.28 
Options exercisable—end of year— $57.28 3,600 $57.28 37,269 $57.28 

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:
(in millions)202120202019
Intrinsic value of options exercised$0.7 $3.9 $0.4 
v3.22.0.1
Defined Contribution Plan
12 Months Ended
Dec. 31, 2021
Defined Contribution Plan [Abstract]  
Defined Contribution Plan Defined-Contribution Plan
We sponsor a defined-contribution 401(k) plan, which allows our U.S.-based employees to voluntarily contribute pretax dollars up to a maximum amount allowable by the U.S. Internal Revenue Service. In 2021, 2020, and 2019, we made matching contributions to our 401(k) plan in an amount equal to 75 cents for every dollar of an employee's contribution, up to a maximum of 7% of the employee's compensation in the pay period.

The following table summarizes our matching contributions:
(in millions)202120202019
401(k) matching contributions$16.2 $14.5 $12.0 
v3.22.0.1
Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
Income Tax Expense and Effective Tax Rate

The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2021, 2020, and 2019:

(in millions)202120202019
Income before income taxes and equity in net income (loss) of unconsolidated entities$250.5 $283.0 $198.5 
Equity in net income (loss) of unconsolidated entities5.4 0.3 (0.9)
Total$255.9 $283.3 $197.6 
Income tax expense$62.6 $59.7 $45.6 
Effective tax rate24.5 %21.1 %23.1 %

Our effective tax rate for the year end December 31, 2021 was 24.5%, an increase of 3.4 percentage points, compared with 21.1% in the prior year. The increase was primarily attributable to minimum taxes and non-deductible expenses.

Our effective tax rate for the year ended December 31, 2020 was 21.1%, a decrease of 2.0 percentage points, compared with 23.1% in 2019. The decrease was primarily driven by the non-taxable holding gain on our previously held equity interest in Sustainalytics offset by the acquisition earn-out that was not deductible for tax purposes.

The amount of accumulated undistributed earnings of our foreign subsidiaries was approximately $232.3 million as of December 31, 2021. In February 2019, we repatriated approximately $45.8 million of foreign earnings to the U.S. Otherwise, we generally consider our U.S. directly-owned foreign subsidiary earnings to be permanently reinvested. We have not recorded deferred income taxes on the $232.3 million primarily because most of these earnings were previously subject to the one-time deemed mandatory repatriation tax under the Tax Cuts and Jobs Act of 2017 (Tax Reform Act). We maintain a deferred tax liability for foreign withholding taxes on certain foreign affiliate parent companies that are not indefinitely reinvested.
The following table reconciles our income tax expense at the U.S. federal income tax rate to income tax expense as recorded:
202120202019
(in millions, except percentages)Amount%Amount%Amount%
Income tax expense at U.S. federal rate$53.7 21.0 %$59.5 21.0 %$41.5 21.0 %
State income taxes, net of federal income tax benefit10.7 4.2 9.5 3.4 7.5 3.8 
Stock-based compensation activity(7.2)(2.8)(4.9)(1.7)(2.2)(1.1)
Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition) 0.2 0.1 (13.8)(4.9)0.3 0.2 
Acquisition earn-out5.1 2.0 7.6 2.7 — — 
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses0.1 — 2.7 1.0 (2.1)(1.1)
Difference between U.S. federal statutory and foreign tax rates(2.6)(1.0)(0.1)— 1.1 0.6 
Change in unrecognized tax benefits(0.2)(0.1)1.2 0.4 (0.9)(0.5)
Credits and incentives(2.1)(0.8)(2.2)(0.8)(2.2)(1.1)
Foreign tax provisions (GILTI, FDII, and BEAT)(1)
(0.7)(0.3)(2.7)(1.0)(1.4)(0.7)
Non-deductible expenses and other, net5.6 2.2 2.9 1.0 4.0 2.0 
Total income tax expense$62.6 24.5 %$59.7 21.1 %$45.6 23.1 %

(1) The Tax Reform Act established the Global Intangible Low-Tax Income (GILTI) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (FDII) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-Abuse Tax (BEAT), which is a minimum tax based on cross-border service payments by U.S. entities.

The following table shows the components of our income tax expense:
Year ended December 31
(in millions)202120202019
Current tax expense:
U.S.
Federal$38.3 $31.5 $28.3 
State13.6 11.7 9.4 
Non-U.S.23.0 23.0 14.0 
Current tax expense74.9 66.2 51.7 
Deferred tax expense (benefit):
U.S.
Federal(2.8)1.2 0.2 
State(0.3)0.4 — 
Non-U.S.(9.2)(8.1)(6.3)
Deferred tax expense, net(12.3)(6.5)(6.1)
Income tax expense$62.6 $59.7 $45.6 
The following table provides our income before income taxes and equity in net income (loss) of unconsolidated entities, generated by our U.S. and non-U.S. operations:

Year ended December 31
(in millions)202120202019
U.S.$218.3 $197.4 $159.7 
Non-U.S.32.2 85.6 38.8 
Income before income taxes and equity in net income (loss) of unconsolidated entities$250.5 $283.0 $198.5 

Deferred Tax Assets and Liabilities

We recognize deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and their tax basis. The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows:

As of December 31,
(in millions)20212020
Deferred tax assets:
Stock-based compensation expense$3.7 $2.9 
Accrued liabilities24.8 20.6 
Deferred revenue7.9 6.7 
Net operating loss carryforwards - U.S.0.3 0.1 
Net operating loss carryforwards - Non-U.S.8.1 7.9 
Capitalized expenses1.3 — 
Deferred royalty revenue0.2 0.2 
Allowance for doubtful accounts1.5 1.4 
Lease liabilities 29.7 32.8 
Other0.7 0.7 
Total deferred tax assets78.2 73.3 
Deferred tax liabilities:
Acquired intangible assets(84.7)(93.9)
Property, equipment, and capitalized software(30.8)(25.1)
Lease right-of-use assets(23.4)(25.9)
Unrealized exchange gains, net(1.4)(1.3)
Prepaid expenses(16.5)(12.1)
Investments in unconsolidated entities(5.3)(6.0)
Withholding tax - foreign dividends(0.4)(3.0)
Total deferred tax liabilities(162.5)(167.3)
Net deferred tax liability before valuation allowance(84.3)(94.0)
Valuation allowance(4.6)(2.3)
Deferred tax liability, net$(88.9)$(96.3)
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows:

As of December 31,
(in millions)20212020
Deferred tax asset, net$12.8 $12.6 
Deferred tax liability, net(101.7)(108.9)
Deferred tax liability, net$(88.9)$(96.3)

The following table summarizes our U.S. net operating loss (NOL) carryforwards:

As of December 31,
(in millions)20212020
Expiration DatesExpiration Dates
U.S. federal NOLs subject to expiration dates$0.3 2023$0.6 2023
U.S. federal NOLs with no expiration dates0.9 — — — 
Total$1.2 $0.6 

The net increase in the U.S. federal NOL carryforwards as of December 31, 2021 compared with 2020 primarily reflects NOLs acquired in the Sustainalytics acquisition. We have not recorded a valuation allowance against the U.S. federal NOLs of $1.2 million because we expect the benefit of the U.S. federal NOLs to be fully utilized.

The following table summarizes our NOL carryforwards for our non-U.S. operations:

As of December 31,
(in millions)20212020
Non-U.S. NOLs subject to expiration dates from 2022 through 2041$10.2 $21.7 
Non-U.S. NOLs with no expiration date21.6 11.6 
Total$31.8 $33.3 
Non-U.S. NOLs not subject to valuation allowances$14.2 $24.5 

The decrease in non-U.S. NOL carryforwards as of December 31, 2021 compared with the same period in 2020 primarily reflects the utilization of NOLs in 2021.

In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We recorded a valuation allowance against approximately $17.6 million of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized.

Unrecognized Tax Benefits

We conduct business globally and, as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. In the normal course of business, we are subject to examination by tax authorities throughout the world. The open tax years for our U.S. Federal tax returns and most state tax returns include the years 2016 to the present.

We are currently under audit by federal, state, and local tax authorities in the U.S. as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these federal, state, local, and non-U.S. audits will conclude in 2022. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits.
As of December 31, 2021, our Consolidated Balance Sheet included a current liability of $7.2 million and a non-current liability of $5.2 million for unrecognized tax benefits. As of December 31, 2020, our Consolidated Balance Sheet included a current liability of $7.6 million and a non-current liability of $5.1 million for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits.

The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows:

(in millions)20212020
Gross unrecognized tax benefits - beginning of the year$11.8 $12.6 
Increases as a result of tax positions taken during a prior-year period0.2 0.5 
Decreases as a result of tax positions taken during a prior-year period(0.2)(2.5)
Increases as a result of tax positions taken during the current period1.1 1.3 
Decreases relating to settlements with tax authorities— — 
Reductions as a result of lapse of the applicable statute of limitations(1.5)(0.1)
Gross unrecognized tax benefits - end of the year$11.4 $11.8 

In 2021, we recorded a net increase of $1.2 million of gross unrecognized tax benefits before settlements and lapses of statutes of limitations, of which $1.2 million increased our income tax expense by $1.1 million.

In addition, we reduced our unrecognized tax benefits by $1.5 million for lapses of statutes of limitations, of which $1.5 million decreased our income tax expense by $1.4 million.

As of December 31, 2021, we had $11.4 million of gross unrecognized tax benefits, which if recognized, would decrease our income tax expense by $11.2 million and reduce our effective income tax rate.

We record interest and penalties related to uncertain tax positions as part of our income tax expense. The following table summarizes our gross liability for interest and penalties:
As of December 31,
(in millions)20212020
Liabilities for interest and penalties$1.4 $1.4 

There was no meaningful change in our liabilities for penalties and interest, net of any tax benefits in 2021. Changes are recorded to income tax expense in our Consolidated Statements of Income.
v3.22.0.1
Contingencies
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies
We record accrued liabilities for litigation, regulatory, and other business matters when those matters represent loss contingencies that are both probable and estimable. In these cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, we do not establish an accrued liability. As litigation, regulatory, or other business matters develop, we evaluate on an ongoing basis whether such matters present a loss contingency that is probable and estimable.

Data Audits and Reviews
In our global data business, we include in our products, or directly redistribute to our customers, data and information licensed from third-party vendors. Our compliance with the terms of these licenses is reviewed internally and is also subject to audit by the third-party vendors. At any given time, we may be undergoing several such internal reviews and third-party vendor audits and the results and findings may indicate that we may be required to make a payment for prior data usage. Due to a lack of available information and data, as well as potential variations of any audit or internal review findings, we generally are not able to reasonably estimate a possible loss, or range of losses, for these matters. In situations where more information or specific areas subject to audit are available, we may be able to estimate a potential range of losses. While we cannot predict the outcome of these processes, we do not anticipate they will have a material adverse effect on our business, operating results, or financial position. Our financial results as of December 31, 2021 include an immaterial accrual related to certain in-progress audits and reviews.
Credit Ratings Matters

On February 16, 2021, the SEC filed a civil action in the United States District Court for the Southern District of New York against Morningstar Credit Ratings, LLC (MCR). MCR was formerly registered with the SEC as a Nationally Recognized Statistical Ratings Organization (NRSRO), but effective in December 2019, it withdrew its NRSRO registration. MCR no longer operates as a credit rating agency. The SEC’s complaint relates to MCR’s former commercial mortgage-backed securities ratings methodology during the period from 2015 to March 2017, and it alleges violations of certain filing and internal control requirements that applied to MCR when it was an NRSRO. On April 19, 2021, MCR filed a motion with the Court to dismiss the complaint. On January 5, 2022, the Court issued its written decision dismissing one of the three counts of the SEC’s complaint, as well the SEC’s request for a permanent injunction against MCR. MCR has filed its answer to the complaint, and discovery is currently scheduled to be completed by July 2022. Our financial results as of December 31, 2021 include an immaterial accrual related to this matter. At this time, we do not believe the outcome in this matter will have a material adverse effect on our business, operating results, or financial position.

On July 28, 2021, DBRS, Inc. (DBRS) reached an agreement in principle with the staff of the SEC to settle an investigation relating to certain of its policies and procedures used in connection with its credit ratings on five U.S. Collateralized Loan Obligation combination notes that were assigned between 2016 and 2019. The SEC announced its approval of the settlement on September 13, 2021. The settlement involved a censure, a cease-and-desist order, certain undertakings by DBRS, and a civil money penalty of $1.0 million, which was paid in the third quarter of 2021. DBRS continues to work on complying with certain undertakings agreed to by it contained in the order. Compliance with these undertakings is expected to be completed within the period required by the order.

Given the nature of their credit ratings activities, DBRS and its credit rating affiliates are subject to legal and tax proceedings, governmental, regulatory and legislative investigations, subpoenas and other inquiries, and claims and litigation by governmental and private parties that are based on ratings assigned by these entities or that are otherwise incidental to their business. DBRS and its credit ratings affiliates are subject to periodic reviews, inspections, examinations and investigations by regulators in the U.S. and other jurisdictions, any of which may result in claims, legal proceedings, assessments, fines, penalties, disgorgement, or restrictions on business activities. While it is difficult to predict the outcome of any particular investigation or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.

Other Matters
We are involved from time to time in regulatory investigations, examinations, and legal proceedings that arise in the normal course of our business. While it is difficult to predict the outcome of any particular investigation or proceeding, we do not believe the result of any of these matters will have a material adverse effect on our business, operating results, or financial position.
v3.22.0.1
Share Repurchase Program
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Treasury Stock Share Repurchase Program
 
In December 2020, the board of directors approved a new share repurchase program that authorizes the company to repurchase up to $400.0 million in shares of the company's outstanding common stock, effective January 1, 2021. The authorization expires on December 31, 2023. Under this authorization, we may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate.

As of December 31, 2021, we repurchased a total of 4,900 shares for $1.3 million under this authorization, leaving $398.7 million available for future repurchases.
v3.22.0.1
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
Recently adopted accounting pronouncements

Current Expected Credit Losses: On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU No. 2016-13), which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU No. 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. On April 25, 2019, the FASB issued ASU No. 2019-04, Codification Improvements (ASU No. 2019-04), which clarifies certain aspects of accounting for credit losses. On May 15, 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief (ASU No. 2019-05), which allows entities to elect the fair value option on certain financial instruments. The new standard became effective for us on January 1, 2020 and was applied prospectively. As a result of the adoption of these standards, we made changes to our processes for the assessment of the adequacy of our allowance for credit losses on certain types of financial instruments, including accounts receivable. The adoption of ASU No. 2016-13, ASU No. 2019-04, and ASU No. 2019-05 did not have a material impact on the consolidated financial statements, related disclosures, or results of operations.

Cloud Computing: On August 29, 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement (ASU No. 2018-15), which helps entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (CCA) by providing guidance for determining when an arrangement includes a software license and when an arrangement is solely a hosted CCA service. The company adopted this guidance prospectively beginning on January 1, 2020. Upon adoption, fees paid in a CCA will be evaluated for capitalization as a prepaid asset and expensed within the results of operations in the same financial statement line item as software license fees instead of depreciation and amortization expense. The adoption of ASU No. 2018-15 did not have a material impact on the consolidated financial statements, related disclosures, or results of operations.

Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement: On August 28, 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU No. 2018-13), which eliminates, adds, and modifies certain disclosure requirements around items such as transfers between Level 1 and 2, policy of timing of transfers, and valuation process for Level 3. The new standard became effective for us on January 1, 2020. Except for limited additions to related disclosures, the adoption of ASU No. 2018-13 did not have a material impact on our consolidated financial statements.

Income Taxes: On December 18, 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12), which is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, Income Taxes, and providing for simplification in several other areas. The new standard became effective for us on January 1, 2021. The adoption of ASU No. 2019-12 did not have a material impact on our consolidated financial statements, related disclosures, or results of operations.

Recently issued accounting pronouncements not yet adopted

Reference Rate Reform: On March 12, 2020, the FASB issued ASU No. 2020-04: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) (ASU No. 2020-04), which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications resulting from reference rate reform initiatives. The intention of the standard is to ease the potential accounting and financial reporting burden associated with transitioning away from the expiring London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative benchmark rates. The amendments in this update are applicable to contract modifications that replace a reference LIBOR rate beginning on March 12, 2020 through December 31, 2022. The optional expedients apply to our Credit Agreement and allow the company to account for modifications due to reference rate reform by prospectively adjusting the effective interest rate on the Credit Agreement. As of December 31, 2021, we have not modified the Credit Agreement related to reference rate reform but expect to modify the Credit Agreement before the end of 2022. We plan to apply the optional practical expedients and exceptions to modifications of the Credit Agreement affected by reference rate reform and are evaluating the effect on our consolidated financial statements, related disclosures, and results of operations.
Business Combinations: On October 28, 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805) (ASU No. 2021-08), which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, the new standard will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Under current US GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. ASU No. 2021-08 creates an exception to the general recognition and measurement principles of ASC 805, Business Combinations. The new standard is effective for us on January 1, 2023. Early adoption is permitted, including in an interim period, for any period for which financial statements have not yet been issued. Entities should apply the new guidance on a prospective basis to all business combinations with an acquisition date on or after the effective date. We have not made a decision on early adoption and are evaluating the effect that ASU No. 2021-08 will have on our consolidated financial statements, related disclosures, and results of operations.
v3.22.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions.

We account for investments in entities in which we exercise significant influence, but do not control, using the equity method.

As part of our investment management operations, we manage certain funds outside of the U.S. that are considered variable interest entities. For most of these variable interest entities, we do not have a variable interest. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities.
Use of Estimates Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. (GAAP) requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates.
Cash and Cash Equivalents Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices.
Investments
Investments. We account for our investments in debt securities in accordance with FASB ASC 320, Investments—Debt Securities (FASB ASC 320). We classify our debt securities into three categories: held-to-maturity, trading, and available-for-sale.

Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets.

Trading: We classify certain investments as trading securities. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair values in our Consolidated Balance Sheets.
Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of marketable debt securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair values in our Consolidated Balance Sheets.

We account for our investments in equity securities in accordance with FASB ASC 321, Investments— Equity Securities (FASB ASC 321). We measure equity investments at fair value with the related realized and unrealized gains and losses recognized in our Consolidated Statements of Income. For equity investments without a readily determinable fair value, we measure these at cost less impairment and adjusting for observable price changes in orderly transactions. We will apply this measurement method to the investment until or if it becomes eligible to be measured at fair value, which is reassessed at each reporting period. We account for non-marketable equity investments through which we exercise significant influence, but do not have control over the investee, under the equity method.
Fair Value Measurements
Fair Value Measurements. FASB ASC 820, Fair Value Measurements (FASB ASC 820) defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value.

FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs:

•    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.

We provide additional information about our cash equivalents and investments that are subject to FASB ASC 820 in Note 7.
We classify our investments into two categories: equity investments and debt securities. We further classify our debt securities into available-for-sale, held-to-maturity, and trading securities. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. Except for the convertible note described below, all investments in our investment portfolio have valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access, and, therefore, are classified as Level 1 within the fair value hierarchy.
Business Combinations Business Combinations. When we acquire a business, we account for the business combination in accordance with FASB ASC 805, Business Combinations (FASB ASC 805). We recognize and measure the fair value of the acquired business and allocate the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The difference between the purchase price and the estimated fair value of the net assets acquired or the excess of the aggregate estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. In determining the estimated fair values of assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods, including discounted cash flow, Monte Carlo simulations, and relief from royalty. For a business combination achieved in stages, we remeasure our previously held equity interest immediately before the acquisition to the acquisition date fair value and recognize any gain in our Consolidated Statements of Income.
We recognize the fair value of any contingent payments at the date of acquisition as part of the consideration transferred to acquire a business. The liability associated with contingent consideration is remeasured to fair value at each reporting period subsequent to the date of acquisition considering factors that may impact the timing and amount of contingent payments until the term of the agreement has expired or the contingency is resolved. Any changes in the fair value measurement will be recorded in our Consolidated Statements of Income. In evaluating the characterization of contingent and deferred payments, we analyze relevant factors, including the nature of the payment, continuing employment requirements, incremental payments to employees of the acquired business, and timing and rationale underlying the transaction, to determine whether the payments should be accounted for as additional purchase consideration or post-combination related services.

We expense direct costs related to the business combination, such as accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of ASC 420, Exit or Disposal Cost Obligations, on the acquisition date.

As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes (FASB ASC 740). This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes.
Goodwill Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter and did not record any impairment losses in 2021, 2020, and 2019.
Intangible Assets Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to twenty years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long-Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2021, 2020, and 2019.
Property, Equipment, and Depreciation Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation in accordance with FASB ASC 360-10, Property, Plant, and Equipment. We depreciate property and equipment using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group.
Computer Software and Internal Product Development Costs Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance.
Lesses
Leases. We account for our right-of-use assets and operating lease liabilities in accordance with FASB ASC 842, Leases (FASB ASC 842). We determine if a contract is or contains a lease at the inception of the contract. For identified operating leases, we recognize a lease liability and right-of-use asset on the consolidated balance sheet. The right-of-use asset represents our right to use an underlying asset for the lease term, and the operating lease liability represents the company's obligation to make lease payments.
 
Our lease agreements consist primarily of real estate leases for office space and non-real estate leases for office equipment. In cases where an agreement contains both a lease and non-lease component, we do not allocate consideration to both components, but account for each as a single lease component by class of underlying asset. There are few instances of short-term agreements in our lease portfolio, which are typically arranged as needed and paid on a month-to-month basis. These leases are not recognized on the Consolidated Balance Sheet, but monthly lease expense is recognized on the Consolidated Statements of Income.
 
Right-of-use assets and operating lease liabilities are measured using the present value of future lease payments of the lease term at the commencement date. Right-of-use assets also include initial direct costs incurred by the company, net of pre-payments and lease incentives. In the absence of an explicit rate in the lease agreement, the discount rate used to calculate present value is equal to the company's incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the life of the lease and is included in general and administrative expenses on the Consolidated Statements of Income.
Revenue from Contract with Customer
Revenue Recognition. We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC Topic 606). The company retained similar recognition and measurement upon adoption of ASC Topic 606 as under accounting standards in effect in periods prior to the adoption.

Under ASC Topic 606, we recognize revenue by applying the following five-step model to each of our customer arrangements:

1.Identify the customer contract;
2.Identify the performance obligations in the contract;
3.Determine the transaction price;
4.Allocate the transaction price to the performance obligations; and
5.Recognize revenue when (or as) performance obligations are satisfied.

Revenues are recognized when (or as) performance obligations are satisfied by transferring a promised product or service to the customer. Products or services are transferred when (or as) the customer obtains control of the product or service. The transaction price for a customer arrangement is the amount we expect to be entitled to in exchange for transferring the promised product or service. The transaction price may include fixed amounts, variable amounts, or both. When the right to payment exceeds revenue recognized the result is an increase to deferred revenue. When a customer’s license-based contract is signed, the customer’s service is activated immediately. License-based arrangements, our largest source of revenue from customers, generally is billed for the entire term, or billed annually (if the contract term is longer than one year). Customers are typically given payment terms of thirty to sixty days, although some customers pay immediately.

Revenue from contracts with customers is derived from license-based arrangements, asset-based arrangements, and transaction-based arrangements.
License-based revenue, which represents subscription services available to customers and not a license under the accounting guidance, is generated through subscription contracts with our customers of Morningstar Data, Morningstar Direct, Morningstar Advisor Workstation, Morningstar Enterprise Components, PitchBook Data, Sustainalytics, and other similar products. Our performance obligations under these contracts are typically satisfied over time, as the customer has access to the service during the term of the subscription license and the level of service is consistent during the contract period. Each individual day within the contract period is viewed to be a service and the entirety of the service subscription term is determined to be a series combined into a single performance obligation and recognized over-time and on a straight-line basis, typically over terms of 1 to 3 years.

Asset-based revenue is generated through contracts with our customers of Morningstar Investment Management, Workplace Solutions, and Morningstar Indexes. Our performance obligations under these contracts are a daily asset management performance obligation, which is determined to be a daily service and thus satisfied over time as the customer receives continuous access to a service for the contract term. We recognize revenue daily over the contract term based on the value of assets under management and a tiered fee agreed to with the customer. Asset-based arrangements typically have a term of 1 to 3 years. The fees from such arrangements represent variable consideration, and the customer does not make separate purchasing decisions that result in additional performance obligations. Significant changes in the underlying fund assets, or significant disruptions in the market, are evaluated to determine if revisions to estimates of earned asset-based fees for the current quarter are needed. An estimate of the average daily portfolio balance is a key input in determining revenue for a given period. Estimates are based on the most recently reported quarter, and, as a result, it is unlikely a significant reversal of revenue would occur.

Transaction-based revenue is generated through contracts with our customers for DBRS Morningstar products and services, Internet advertising on Morningstar.com, and Morningstar-sponsored conferences. Our performance obligations for DBRS Morningstar include the issuance of the rating and may include surveillance services for a period of time as agreed with the customer. We allocate the transaction price to the deliverables based on their relative selling price, which is generally determined by the price we charge when the same deliverable is sold separately. Our performance obligation for the issuance of the rating is satisfied when the rating is issued, which is when we recognize the related revenue. Our performance obligations for surveillance services are satisfied over time, as the customer has access to the service during the surveillance period and the level of service is consistent during the contract period. Therefore, we recognize revenue for this performance obligation on a straight-line basis. Our performance obligations for Internet advertising and Morningstar-sponsored conferences are satisfied as the service is delivered; therefore, we recognize revenue when the performance obligation is satisfied (as the customer’s advertisements are displayed and at the completion of the Morningstar-sponsored conference).

Our contracts with customers may include multiple performance obligations. For most of these arrangements, we generally allocate revenue to each performance obligation based on its estimated standalone selling price. We generally determine standalone selling prices based on prices charged to customers when the same performance obligation is sold separately.

Our contracts with customers may include third-party involvement in providing goods or services to the customer. The inclusion of third-party content does not result in separate performance obligations because is it not delivered separately from the other service offerings. In these arrangements, the customer has contracted to receive a single, integrated and bundled solution with third-party and Morningstar content delivered via Morningstar’s subscription services. Revenue and related costs of revenue from third-party content is presented on a gross basis within the consolidated financial statements.
Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods.
Sales Commissions Sales Commissions. We capitalize sales commissions, which are considered directly attributable to obtaining a customer contract under ASC Topic 606 and ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers. Such costs are capitalized by developing estimates using a portfolio approach that aggregates these costs by legal entity within their geographical regions. Capitalized sales commissions are amortized using the straight-line method over a period that is consistent with the transfer of the products or services to the customer to which the sales commission relates. The period of transfer for each portfolio is the shorter of the weighted-average customer life, or the economic life of the underlying technology that delivers the products or services. As of December 31, 2021, the period of transfer was determined to be approximately two to three years. Discretionary amounts which are added to sales commission payments are expensed as incurred, as they are not considered to be directly attributable to obtaining a customer contract.
Stock-Based Compensation Expense
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation (FASB ASC 718). Our stock-based compensation expense reflects grants of restricted stock units, performance share awards, market stock units, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the grant date based on the closing market price of Morningstar's common stock on the day prior to the grant. For market stock units, we estimate the fair value of the awards using a Monte Carlo valuation model. For stock options, we estimate the fair value of our stock options on the date of grant using the Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period.

We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience, as needed.
Income Taxes
Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, which prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions.

We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment.
Segment Information Segment Information We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2. We evaluate the performance of our reporting segment based on revenue and operating income.
v3.22.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Acronyms Used
The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following:
ASCAccounting Standards Codification
ASUAccounting Standards Update
EITFEmerging Issues Task Force
FASBFinancial Accounting Standards Board
SECSecurities and Exchange Commission
Summary of Depreciation for Internally Developed Software
The table below summarizes our depreciation expense related to capitalized developed software for the past three years:
(in millions)202120202019
Capitalized developed software depreciation expense$59.9 $53.9 $61.1 
Summary of Capitalized Software Development Costs
The table below summarizes our capitalized software development costs for the past three years:
(in millions)202120202019
Capitalized software development costs$74.0 $60.3 $64.8 
v3.22.0.1
Credit Arrangements (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Summary of Total Debt and Long-term Debt
The following table summarizes our total debt and long-term debt as of December 31, 2021 and 2020.
(in millions)As of December 31, 2021As of December 31, 2020
Term Facility, net of unamortized debt issuance costs of $0.0 million and $0.1 million, respectively$11.0 $100.8 
2.32% Senior Notes due October 26, 2030, net of unamortized debt issuance costs of $1.6 million and $1.7 million, respectively348.4 348.3 
Long-term debt$359.4 $449.1 
v3.22.0.1
Income Per Share (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
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 net income per share:

(in millions, except per share amounts)202120202019
Basic net income per share:
Consolidated net income $193.3 $223.6 $152.0 
Weighted average common shares outstanding43.0 42.9 42.7 
Basic net income per share$4.50 $5.22 $3.56 
Diluted net income per share:
Consolidated net income$193.3 $223.6 $152.0 
Weighted average common shares outstanding43.0 42.9 42.7 
Net effect of dilutive stock options and restricted stock units0.4 0.3 0.5 
Weighted average common shares outstanding for computing diluted income per share43.4 43.2 43.2 
Diluted net income per share$4.45 $5.18 $3.52 
v3.22.0.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents our revenue disaggregated by revenue type. Sales and usage-based taxes are excluded from revenue.
Year ended December 31
(in millions)202120202019
License-based $1,131.7 $934.9 $812.7 
Asset-based264.9 223.8 211.6 
Transaction-based302.7 230.8 154.7 
Consolidated revenue$1,699.3 $1,389.5 $1,179.0 
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
We expect to recognize revenue related to our contract liabilities for 2022 and subsequent years as follows:
(in millions)As of December 31, 2021
2022$679.5 
2023160.4 
202449.3 
202517.5 
20269.9 
Thereafter 30.1 
Total$946.7 
Summary of Contract Assets and Change in Deferred Commissions
The following table summarizes our contract assets balance:
As of December 31
(in millions)20212020
Accounts receivable, less allowance for credit losses$268.9 $205.1 
Deferred commissions62.3 39.6 
Total contract assets$331.2 $244.7 
v3.22.0.1
Segment and Geographical Area Information (Tables)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
The tables below summarize our revenue, long-lived assets, which includes property, equipment, and capitalized software, net, and operating lease assets, by geographical area:

Revenue by geographical area
Year ended December 31
(in millions)202120202019
United States$1,184.3 $970.8 $866.4 
Asia41.1 33.6 27.9 
Australia56.9 45.6 39.5 
Canada112.9 101.5 56.9 
Continental Europe159.1 113.8 88.0 
United Kingdom135.7 117.5 93.9 
Other9.3 6.7 6.4 
Total International515.0 418.7 312.6 
Consolidated revenue$1,699.3 $1,389.5 $1,179.0 

Property, equipment, and capitalized software, net by geographical area
As of December 31
(in millions)20212020
United States$139.3 $127.0 
Asia8.8 7.5 
Australia3.1 3.7 
Canada3.8 2.9 
Continental Europe10.1 6.2 
United Kingdom6.4 7.3 
Other0.3 0.5 
Total International32.5 28.1 
Consolidated property, equipment, and capitalized software, net$171.8 $155.1 
Operating lease assets by geographical area
As of December 31
(in millions)20212020
United States$82.7 $89.2 
Asia24.1 12.6 
Australia4.6 5.2 
Canada7.1 7.4 
Continental Europe15.8 17.0 
United Kingdom14.4 15.6 
Other0.5 0.7 
Total International66.5 58.5 
Consolidated operating lease assets$149.2 $147.7 
The long-lived assets by geographical area table does not include deferred commissions, non-current as the balance is not material.
v3.22.0.1
Investments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Investments We classify our investment portfolio as shown below: 
As of December 31
(in millions)20212020
Equity investments$46.8 $39.6 
Available-for-sale12.3 0.9 
Held-to-maturity3.2 1.2 
Trading securities— — 
Total$62.3 $41.7 
Unrealized Gain (Loss) on Investments
The following table shows the cost, unrealized gains, and fair values related to investments classified as equity investments, available-for-sale, and held-to-maturity:
 
 As of December 31, 2021As of December 31, 2020
(in millions)CostUnrealized
Gain
Unrealized
Loss
Fair
Value
CostUnrealized
Gain
Unrealized
Loss
Fair
Value
Equity investments:        
Marketable equity investments, exchange traded funds, and mutual funds$39.6 $8.2 $(1.0)$46.8 $34.6 $5.0 $— $39.6 
Available-for-sale:
Marketable debt securities5.5 — — 5.5 0.9 — — 0.9 
Convertible note5.0 1.8 — 6.8 — — — — 
Held-to-maturity:
Certificates of deposit
3.2 — — 3.2 1.2 — — 1.2 
Total$53.3 $10.0 $(1.0)$62.3 $36.7 $5.0 $— $41.7 
Investments Classified by Contractual Maturity Date
The table below shows the cost and fair value of investments classified as held-to-maturity based on their contractual maturities as of December 31, 2021 and 2020.

 As of December 31, 2021As of December 31, 2020
(in millions)CostFair ValueCostFair Value
Held-to-maturity:    
Due in one year or less$3.2 $3.2 $1.2 $1.2 
Due in one to three years— — — — 
Total$3.2 $3.2 $1.2 $1.2 
Schedule of Realized Gain (Loss)
The following table shows the realized gains and losses arising from sales of our investments classified as equity investments and available-for-sale recorded in our Consolidated Statements of Income: 
(in millions)202120202019
Realized gains$5.0 $2.1 $1.2 
Realized losses— — — 
Realized gains, net$5.0 $2.1 $1.2 
Unrealized Gain Loss On Trading Securities
The following table shows the net unrealized (losses) gains on the convertible note and trading securities as recorded in our Consolidated Statements of Income:

 
(in millions)202120202019
Unrealized (losses) gains, net$1.8 $(0.4)$0.6 
Fair Value, Assets Measured on Recurring Basis
The table below shows the fair value of our assets and liabilities subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy:
 

 Fair Value
 as ofLevel Within the Fair Value Hierarchy as of December 31, 2021
(in millions)December 31, 2021Level 1Level 2Level 3
Financial assets:
Marketable equity investments, exchange-traded funds, and mutual funds$46.8 $46.8 $— $— 
Marketable debt securities5.5 5.5 — — 
Convertible note6.8 — — 6.8 
Cash equivalents0.6 0.6 — — 
Financial liabilities:
Contingent consideration17.3 — — 17.3 
Total$77.0 $52.9 $— $24.1 
 
 Fair Value
 as ofLevel Within the Fair Value Hierarchy as of December 31, 2020
(in millions)December 31, 2020Level 1Level 2Level 3
Financial assets:
Marketable equity investments, exchange-traded funds, and mutual funds$39.6 $39.6 $— $— 
Marketable debt securities0.9 0.9 — — 
Cash equivalents0.8 0.8 — — 
Financial liabilities:
Contingent consideration53.7 — — 53.7 
Total$95.0 $41.3 $— $53.7 
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Acquisitions, Goodwill, and Other Intangible Assets [Abstract]    
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $14.9 million of goodwill and $13.4 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Technology-based assets$12.1 7
Customer-related assets1.3 5
Total intangible assets$13.4 
 
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 acquisition date:
(in millions)
Fair value of consideration transferred$108.6 
Fair value of the previously held equity interest75.4 
Cash and cash equivalents$9.8 
Accounts receivable6.2 
Intangible assets, net79.5 
Operating lease assets5.2 
Other current and non-current assets7.4 
Deferred revenue(21.2)
Operating lease liability(5.2)
Deferred tax liability, net(16.9)
Other current and non-current liabilities(15.5)
Total fair value of net assets acquired$49.3 
Goodwill$134.7 

At July 2, 2020, accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. At December 31, 2020, substantially all amounts were collected.
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
(in millions)
Cash consideration transferred$682.1 
Cash and cash equivalents$8.5 
Accounts receivable28.8 
Property, equipment, and capitalized software, net12.8 
Intangible assets, net284.1 
Goodwill473.3 
Operating lease assets33.3 
Other current and non-current assets5.7 
Deferred revenue(43.2)
Deferred tax liability, net(66.6)
Operating lease liabilities (35.0)
Other current and non-current liabilities(19.6)
Total fair value of DBRS$682.1 
Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value.
 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $79.5 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Customer-related assets$22.9 20
Technology-based assets46.7 10
Intellectual property9.9 10
Total intangible assets$79.5 
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $284.1 million of acquired intangible assets, as follows:
(in millions)Weighted Average Useful Life (years)
Customer-related assets$219.1 10
Technology-based assets29.4 5
Intellectual property (trademarks and trade names)35.6 7
Total intangible assets$284.1 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
(in millions)Weighted Average Useful Life (years)
Customer-related assets$219.1 10
Technology-based assets29.4 5
Intellectual property (trademarks and trade names)35.6 7
Total intangible assets$284.1 
 
Pro Forma Information  
Unaudited Pro Forma Financial Information (in millions)20192018
Revenue$1,259.2 $1,184.5 
Operating income190.3 223.6 
Net income148.2 179.7 
Basic net income per share$3.47 $4.22 
Diluted net income per share$3.43 $4.18 
Schedule of Goodwill
The following table shows the changes in our goodwill balances from January 1, 2020 to December 31, 2021:
 
 (in millions)
Balance as of January 1, 2020$1,039.1 
Acquisition of Sustainalytics134.7 
Other, primarily foreign currency translation31.2 
Balance as of December 31, 2020$1,205.0 
Acquisition of Moorgate14.9 
Other, primarily foreign currency translation(12.9)
Balance as of December 31, 2021$1,207.0 
 
Schedule of Intangible Assets
The following table summarizes our intangible assets: 
 As of December 31, 2021As of December 31, 2020
(in millions)GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
Customer-related assets$413.7 $(192.8)$220.9 11$415.6 $(163.7)$251.9 11
Technology-based assets232.3 (157.7)74.6 7223.2 (135.2)88.0 7
Intellectual property & other 83.0 (50.3)32.7 883.6 (43.4)40.2 8
Total intangible assets$729.0 $(400.8)$328.2 10$722.4 $(342.3)$380.1 10
 
Schedule of Intangible Asset, Amortization Expense
The following table summarizes our amortization expense related to intangible assets:

(in millions)202120202019
Amortization expense$62.0 $58.8 $36.5 
 
Schedule of Expected Amortization Expense
Based on acquisitions and divestitures completed through December 31, 2021, we expect intangible amortization expense for 2022 and subsequent years to be as follows:
 (in millions)
2022$54.7 
202350.9 
202444.7 
202538.2 
202634.5 
Thereafter105.2 
Total$328.2 
 
v3.22.0.1
Investments in Unconsolidated Entities (Tables)
12 Months Ended
Dec. 31, 2021
Investments in Unconsolidated Entities [Abstract]  
Schedule of Equity Method And Cost Method Investments
Our investments in unconsolidated entities consist primarily of the following:
 
As of December 31,
(in millions)20212020
Equity method investments$31.4 $7.4 
Investment in MJKK18.7 18.9 
Cost method investments13.2 6.3 
Total investments in unconsolidated entities$63.3 $32.6 
Schedule of Equity Method Investments We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price:
As of December 31,
 20212020
Morningstar’s approximate ownership of MJKK22.1 %22.4 %
Approximate market value of Morningstar’s ownership in MJKK:  
Japanese yen (¥ in millions)¥12,781.0 ¥9,221.9 
Equivalent U.S. dollars ($ in millions)$111.1 $89.4 
v3.22.0.1
Property, Equipment, and Capitalized Software (Tables)
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Equipment, and Capitalized Software by Major Category
The following table shows our property, equipment, and capitalized software, net summarized by major category:

As of December 31,
(in millions)20212020
Capitalized software$464.5 $390.2 
Capitalized equipment85.7 74.6 
Furniture and fixtures36.9 35.6 
Leasehold improvements100.7 96.0 
Telephone equipment2.2 2.4 
Construction in progress11.0 8.6 
Property, equipment, and capitalized software, at cost701.0 607.4 
Less accumulated depreciation(529.2)(452.3)
Property, equipment, and capitalized software, net$171.8 $155.1 
Summary of Depreciation Expense
The following table summarizes our depreciation expense:
(in millions)202120202019
Depreciation expense$87.0 $80.1 $81.2 
v3.22.0.1
Leases Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases, Operating [Abstract]  
Summary of Operating Lease Assets and Lease Liabilities
The following table summarizes our operating lease assets and lease liabilities:
Leases (in millions)Balance Sheet ClassificationAs of December 31, 2021As of December 31, 2020
Assets
Operating Operating lease assets$149.2 $147.7 
Liabilities
OperatingOperating lease liabilities, current$36.4 $39.9 
OperatingOperating lease liabilities, non-current135.7 137.7 
Total lease liabilities$172.1 $177.6 
Schedule of Minimum Future Rental Commitments
The following table shows our minimum future rental commitments due in each of the next five years and thereafter for operating leases:
Minimum Future Lease Commitments (in millions)
2022$41.5 
202339.2 
202428.0 
202522.3 
202618.8 
Thereafter40.9 
Total minimum lease commitments190.7 
Adjustment for discount to present value18.6 
Total$172.1 
Operating leases
The following table summarizes our weighted-average lease terms and weighted-average discount rates for our operating leases:
As of December 31, 2021
Weighted-average remaining lease term (in years)6.0
Weighted-average discount rate3.3 %
v3.22.0.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
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 December 31
(in millions)2021
Shares available for future grants3.2 
Schedule of Stock-Based Compensation Expense
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years:
Year ended December 31
(in millions)202120202019
Restricted stock units$25.8 $22.2 $20.4 
Performance share awards10.6 10.2 20.6 
Market stock units5.5 4.2 3.4 
Total stock-based compensation expense$41.9 $36.6 $44.4 
Income tax benefit related to the stock-based compensation expense$8.9 $6.7 $10.0 
Allocation of Stock-based Compensation Expense
The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years:
Year ended December 31
(in millions)202120202019
Cost of revenue$16.5 $13.5 $12.9 
Sales and marketing4.4 4.6 5.6 
General and administrative21.0 18.5 25.9 
Total stock-based compensation expense$41.9 $36.6 $44.4 
Schedule of Uncategorized Stock-Based Compensation Expense
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2021 and the expected number of months over which the expense will be recognized:

Unrecognized stock-based compensation expense (in millions)Weighted average expected amortization period (months)
Restricted stock units$54.0 34
Market stock units9.8 26
Total unrecognized stock-based compensation expense$63.8 33
Schedule of Restricted Stock Units Award Activity
The following table summarizes restricted stock unit activity during the past three years:
Restricted Stock Units (RSUs)TotalWeighted
Average
Grant Date Value
per RSU
RSUs Outstanding - December 31, 2018527,465 $89.53 
Granted233,618 135.67 
Vested(269,917)95.67 
Forfeited(31,721)100.71 
RSUs Outstanding - December 31, 2019459,445 $108.61 
Granted245,078 153.01 
Vested(240,297)108.94 
Forfeited(27,459)119.22 
RSUs Outstanding - December 31, 2020436,767 $132.68 
Granted187,916 246.85 
Vested(229,063)141.04 
Forfeited(23,910)166.99 
RSUs Outstanding - December 31, 2021371,710 $183.04 
Market Units, Valuation Assumptions
We used the following assumptions to estimate the fair value of our MSUs:
Assumptions for Monte Carlo Valuation Model
Grant DateExpected volatilityDividend yieldRisk-free interest rate
May 15, 201817.4 %0.89 %2.70 %
November 15, 201819.6 %0.83 %2.92 %
May 15, 201920.3 %0.84 %2.17 %
November 15, 201921.0 %0.72 %1.59 %
May 15, 202025.4 %0.83 %0.20 %
November 15, 202026.9 %0.58 %0.23 %
May 15, 202128.0 %0.51 %0.33 %
November 15, 202126.9 %0.40 %0.85 %
Schedule of Market Stocks Units
The table below shows MSUs granted and market stock units outstanding as of December 31, 2021:
As of December 31, 2021
MSUs granted during 202131,114 
Weighted average fair value per award $181.49 
Number of MSUs outstanding108,322 
Unamortized expense, based on current performance levels (in millions)$9.8 
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block]
The table below shows target performance share awards granted and shares that will be issued based on final performance levels for performance share awards granted as of December 31, 2021:
As of December 31, 2021
Target performance share awards granted35,201 
Weighted average fair value per award $213.04 
Number of shares that will be issued based on final 2021 performance levels48,395 
Unamortized expense, based on current performance levels (in millions)$— 
Schedule of Stock Options, Valuation Assumptions The weighted average fair value of options granted during 2011 was $23.81 per share based on the following assumptions:
Assumptions for Black-Scholes Option Pricing Model
Expected life (years)7.4
Volatility factor35.1%
Dividend yield0.35%
Interest rate2.87%
Schedule of All Other Option Granted
The following table summarizes stock option activity in the past three years for our various stock option grants:
202120202019
Option GrantsUnderlying
Shares
Weighted
Average
Exercise
Price
Underlying
Shares
Weighted
Average
Exercise
Price
Underlying
Shares
Weighted
Average
Exercise
Price
Options outstanding—beginning of year3,600 $57.28 37,269 $57.28 40,685 $57.28 
Granted— — — — — — 
Canceled— — — — — — 
Exercised(3,600)57.28 (33,669)57.28 (3,416)57.28 
Options outstanding—end of year— $57.28 3,600 $57.28 37,269 $57.28 
Options exercisable—end of year— $57.28 3,600 $57.28 37,269 $57.28 
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:
(in millions)202120202019
Intrinsic value of options exercised$0.7 $3.9 $0.4 
v3.22.0.1
Defined Contribution Plan (Tables)
12 Months Ended
Dec. 31, 2021
Defined Contribution Plan [Abstract]  
Schedule of Defined Contribution Plan, Employer Matching Contributions
The following table summarizes our matching contributions:
(in millions)202120202019
401(k) matching contributions$16.2 $14.5 $12.0 
v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]  
Schedule of Income Tax Expense and Effective Tax Rate
The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2021, 2020, and 2019:

(in millions)202120202019
Income before income taxes and equity in net income (loss) of unconsolidated entities$250.5 $283.0 $198.5 
Equity in net income (loss) of unconsolidated entities5.4 0.3 (0.9)
Total$255.9 $283.3 $197.6 
Income tax expense$62.6 $59.7 $45.6 
Effective tax rate24.5 %21.1 %23.1 %
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles our income tax expense at the U.S. federal income tax rate to income tax expense as recorded:
202120202019
(in millions, except percentages)Amount%Amount%Amount%
Income tax expense at U.S. federal rate$53.7 21.0 %$59.5 21.0 %$41.5 21.0 %
State income taxes, net of federal income tax benefit10.7 4.2 9.5 3.4 7.5 3.8 
Stock-based compensation activity(7.2)(2.8)(4.9)(1.7)(2.2)(1.1)
Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition) 0.2 0.1 (13.8)(4.9)0.3 0.2 
Acquisition earn-out5.1 2.0 7.6 2.7 — — 
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses0.1 — 2.7 1.0 (2.1)(1.1)
Difference between U.S. federal statutory and foreign tax rates(2.6)(1.0)(0.1)— 1.1 0.6 
Change in unrecognized tax benefits(0.2)(0.1)1.2 0.4 (0.9)(0.5)
Credits and incentives(2.1)(0.8)(2.2)(0.8)(2.2)(1.1)
Foreign tax provisions (GILTI, FDII, and BEAT)(1)
(0.7)(0.3)(2.7)(1.0)(1.4)(0.7)
Non-deductible expenses and other, net5.6 2.2 2.9 1.0 4.0 2.0 
Total income tax expense$62.6 24.5 %$59.7 21.1 %$45.6 23.1 %

(1) The Tax Reform Act established the Global Intangible Low-Tax Income (GILTI) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (FDII) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-Abuse Tax (BEAT), which is a minimum tax based on cross-border service payments by U.S. entities.
Schedule of Components of Income Tax Expense ncome tax expense:
Year ended December 31
(in millions)202120202019
Current tax expense:
U.S.
Federal$38.3 $31.5 $28.3 
State13.6 11.7 9.4 
Non-U.S.23.0 23.0 14.0 
Current tax expense74.9 66.2 51.7 
Deferred tax expense (benefit):
U.S.
Federal(2.8)1.2 0.2 
State(0.3)0.4 — 
Non-U.S.(9.2)(8.1)(6.3)
Deferred tax expense, net(12.3)(6.5)(6.1)
Income tax expense$62.6 $59.7 $45.6 
Schedule of Income before Income Tax
The following table provides our income before income taxes and equity in net income (loss) of unconsolidated entities, generated by our U.S. and non-U.S. operations:

Year ended December 31
(in millions)202120202019
U.S.$218.3 $197.4 $159.7 
Non-U.S.32.2 85.6 38.8 
Income before income taxes and equity in net income (loss) of unconsolidated entities$250.5 $283.0 $198.5 
Schedule of Deferred Tax Assets and Liabilities The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows:
As of December 31,
(in millions)20212020
Deferred tax assets:
Stock-based compensation expense$3.7 $2.9 
Accrued liabilities24.8 20.6 
Deferred revenue7.9 6.7 
Net operating loss carryforwards - U.S.0.3 0.1 
Net operating loss carryforwards - Non-U.S.8.1 7.9 
Capitalized expenses1.3 — 
Deferred royalty revenue0.2 0.2 
Allowance for doubtful accounts1.5 1.4 
Lease liabilities 29.7 32.8 
Other0.7 0.7 
Total deferred tax assets78.2 73.3 
Deferred tax liabilities:
Acquired intangible assets(84.7)(93.9)
Property, equipment, and capitalized software(30.8)(25.1)
Lease right-of-use assets(23.4)(25.9)
Unrealized exchange gains, net(1.4)(1.3)
Prepaid expenses(16.5)(12.1)
Investments in unconsolidated entities(5.3)(6.0)
Withholding tax - foreign dividends(0.4)(3.0)
Total deferred tax liabilities(162.5)(167.3)
Net deferred tax liability before valuation allowance(84.3)(94.0)
Valuation allowance(4.6)(2.3)
Deferred tax liability, net$(88.9)$(96.3)
Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows:

As of December 31,
(in millions)20212020
Deferred tax asset, net$12.8 $12.6 
Deferred tax liability, net(101.7)(108.9)
Deferred tax liability, net$(88.9)$(96.3)
Summary of Income Tax Examinations The following table summarizes our gross liability for interest and penalties:
As of December 31,
(in millions)20212020
Liabilities for interest and penalties$1.4 $1.4 
Schedule of Unrecognized Tax Benefits Roll Forward
The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows:

(in millions)20212020
Gross unrecognized tax benefits - beginning of the year$11.8 $12.6 
Increases as a result of tax positions taken during a prior-year period0.2 0.5 
Decreases as a result of tax positions taken during a prior-year period(0.2)(2.5)
Increases as a result of tax positions taken during the current period1.1 1.3 
Decreases relating to settlements with tax authorities— — 
Reductions as a result of lapse of the applicable statute of limitations(1.5)(0.1)
Gross unrecognized tax benefits - end of the year$11.4 $11.8 
U.S [Member]  
Operating Loss Carryforwards [Line Items]  
Summary of Operating Loss Carryforwards
The following table summarizes our U.S. net operating loss (NOL) carryforwards:

As of December 31,
(in millions)20212020
Expiration DatesExpiration Dates
U.S. federal NOLs subject to expiration dates$0.3 2023$0.6 2023
U.S. federal NOLs with no expiration dates0.9 — — — 
Total$1.2 $0.6 
Non-U.S. [Member]  
Operating Loss Carryforwards [Line Items]  
Summary of Operating Loss Carryforwards
The following table summarizes our NOL carryforwards for our non-U.S. operations:

As of December 31,
(in millions)20212020
Non-U.S. NOLs subject to expiration dates from 2022 through 2041$10.2 $21.7 
Non-U.S. NOLs with no expiration date21.6 11.6 
Total$31.8 $33.3 
Non-U.S. NOLs not subject to valuation allowances$14.2 $24.5 

The decrease in non-U.S. NOL carryforwards as of December 31, 2021 compared with the same period in 2020 primarily reflects the utilization of NOLs in 2021.
In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We recorded a valuation allowance against approximately $17.6 million of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized.
v3.22.0.1
Description of Business (Details)
Dec. 31, 2021
Countries
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of countries in which entity operates 29
v3.22.0.1
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]      
Depreciation expense $ 87.0 $ 80.1 $ 81.2
Capitalized software development costs $ 74.0 $ 60.3 64.8
Intangible assets useful life 10 years 10 years  
Property, Equipment, and Depreciation Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation in accordance with FASB ASC 360-10, Property, Plant, and Equipment. We depreciate property and equipment using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group.    
Minimum [Member]      
Business Acquisition [Line Items]      
Asset useful life 3 years    
Intangible assets useful life 1 year    
Revenue timing of cash payments 30 days    
Sales commissions, period of transfer 2 years    
Maximum [Member]      
Business Acquisition [Line Items]      
Asset useful life 7 years    
Intangible assets useful life 20 years    
Revenue timing of cash payments 60 days    
Revenue performance period 3 years    
Sales commissions, period of transfer 3 years    
Internally developed software expense [Member]      
Business Acquisition [Line Items]      
Depreciation expense $ 59.9 $ 53.9 $ 61.1
Capitalized software [Member]      
Business Acquisition [Line Items]      
Asset useful life 3 years    
License-based | Minimum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 1 year    
License-based | Maximum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 3 years    
Asset-based | Minimum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 1 year    
Asset-based | Maximum [Member]      
Business Acquisition [Line Items]      
Revenue performance period 3 years    
v3.22.0.1
Credit Arrangements (Details) - USD ($)
Jul. 02, 2019
Dec. 31, 2018
Dec. 31, 2021
Dec. 31, 2020
Oct. 26, 2020
Jun. 30, 2020
Line of Credit Facility [Line Items]            
Long-term debt     $ 359,400,000 $ 449,100,000    
Remaining borrowing capacity     300,000,000      
Long-term Debt, Excluding Current Maturities     359,400,000 449,100,000    
Debt Instrument, Interest Rate, Stated Percentage         2.32%  
Credit agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity           $ 50,000,000
London Interbank Offered Rate (LIBOR) [Member] | Credit agreement [Member]            
Line of Credit Facility [Line Items]            
Basis spread on variable rate debt   1.00%        
Private Placement            
Line of Credit Facility [Line Items]            
Other Long-term Debt         $ 350,000,000  
Other Long-term Debt         $ 350,000,000  
Medium-term Notes [Member] | Term Loan Facility [Member]            
Line of Credit Facility [Line Items]            
Long-term Debt     11,000,000.0 100,800,000    
Maximum borrowing capacity $ 450,000,000          
Line of Credit [Member] | Credit Agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity $ 750,000,000          
Line of Credit [Member] | Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]            
Line of Credit Facility [Line Items]            
Basis spread on variable rate debt 1.50%          
Line of Credit [Member] | Credit Agreement [Member] | Maximum [Member] | Lender's base rate [Member]            
Line of Credit Facility [Line Items]            
Basis spread on variable rate debt 0.50%          
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]            
Line of Credit Facility [Line Items]            
Basis spread on variable rate debt 1.00%          
Line of Credit [Member] | Credit Agreement [Member] | Minimum [Member] | Lender's base rate [Member]            
Line of Credit Facility [Line Items]            
Basis spread on variable rate debt 0.00%          
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Credit agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity $ 300,000,000          
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Letters of credit [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity 50,000,000          
Notes Payable, Other Payables | Private Placement Financing            
Line of Credit Facility [Line Items]            
Long-term Debt     $ 348,400,000 $ 348,300,000    
Line of Credit [Member] | July 2019 Revolving Credit Facility [Member] | Credit agreement [Member]            
Line of Credit Facility [Line Items]            
Maximum borrowing capacity $ 100,000,000          
v3.22.0.1
Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Basic net income per share:      
Consolidated net income   $ 223.6 $ 152.0
Weighted average common shares outstanding (in shares) 43.0 42.9 42.7
Basic net income per share (in dollars per share) $ 4.50 $ 5.22 $ 3.56
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 193.3 $ 223.6 $ 152.0
Diluted net income per share:      
Consolidated net income   $ 223.6 $ 152.0
Weighted average common shares outstanding (in shares) 43.0 42.9 42.7
Net effect of dilutive stock options and restricted stock units (in shares) 0.4 0.3 0.5
Weighted average common shares outstanding for computing diluted income per share (in shares) 43.4 43.2 43.2
Diluted net income per share (in dollars per share) $ 4.45 $ 5.18 $ 3.52
v3.22.0.1
Revenue (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Consolidated revenue $ 1,699.3 $ 1,389.5 $ 1,179.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01      
Disaggregation of Revenue [Line Items]      
Revenue performance period 1 year    
License-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue $ 1,131.7 934.9 812.7
Asset-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue 264.9 223.8 211.6
Transaction-based      
Disaggregation of Revenue [Line Items]      
Consolidated revenue $ 302.7 $ 230.8 $ 154.7
v3.22.0.1
Revenue (Disaggregation of Revenue, Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 1,699.3 $ 1,389.5 $ 1,179.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Minimum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 3 years    
Licensed-based Revenue      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 1,131.7 934.9 812.7
Licensed-based Revenue | Minimum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Licensed-based Revenue | Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 3 years    
Asset-based Revenue      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenues $ 264.9 $ 223.8 $ 211.6
Asset-based Revenue | Minimum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 1 year    
Asset-based Revenue | Maximum [Member]      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Revenue performance period 3 years    
v3.22.0.1
Revenue (Contract Liabilities, Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Revenue from Contract with Customer [Abstract]  
Increase in contract liabilities from cash payments received $ 73.5
Contract liability $ 413.8
Maximum [Member]  
Disaggregation of Revenue [Line Items]  
Revenue performance period 3 years
v3.22.0.1
Revenue (Contract Liabilities, Expected Recognition) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 946.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 679.5
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 160.4
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 49.3
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 17.5
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 9.9
Revenue performance period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation $ 30.1
Revenue performance period 1 year
v3.22.0.1
Revenue (Summary of Contract Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Accounts receivable, less allowance for credit losses $ 268.9 $ 205.1
Deferred commissions 62.3 39.6
Total contract assets $ 331.2 $ 244.7
v3.22.0.1
Revenue Contract Liabilities (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Liability, Change in Timeframe, Performance Obligation Satisfied, Revenue Recognized $ 296.2
v3.22.0.1
Segment and Geographical Area Information (Operating Lease Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]    
Operating lease assets $ 149.2 $ 147.7
United States [Member]    
Segment Reporting Information [Line Items]    
Operating lease assets 82.7 89.2
UNITED KINGDOM    
Segment Reporting Information [Line Items]    
Operating lease assets 14.4 15.6
Europe excluding the United Kingdom [Member]    
Segment Reporting Information [Line Items]    
Operating lease assets 15.8 17.0
AUSTRALIA    
Segment Reporting Information [Line Items]    
Operating lease assets 4.6 5.2
CANADA    
Segment Reporting Information [Line Items]    
Operating lease assets 7.1 7.4
Asia [Member]    
Segment Reporting Information [Line Items]    
Operating lease assets 24.1 12.6
Segment, Geographical, Group of Other Countries [Member]    
Segment Reporting Information [Line Items]    
Operating lease assets 0.5 0.7
Non United States [Member]    
Segment Reporting Information [Line Items]    
Operating lease assets $ 66.5 $ 58.5
v3.22.0.1
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 1,699.3 $ 1,389.5 $ 1,179.0
Long-lived assets 171.8 155.1  
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 1,184.3 970.8 866.4
Long-lived assets 139.3 127.0  
UNITED KINGDOM      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 135.7 117.5 93.9
Long-lived assets 6.4 7.3  
Europe excluding the United Kingdom [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 159.1 113.8 88.0
Long-lived assets 10.1 6.2  
AUSTRALIA      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 56.9 45.6 39.5
Long-lived assets 3.1 3.7  
CANADA      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 112.9 101.5 56.9
Long-lived assets 3.8 2.9  
Asia [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 41.1 33.6 27.9
Long-lived assets 8.8 7.5  
Segment, Geographical, Group of Other Countries [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 9.3 6.7 6.4
Long-lived assets 0.3 0.5  
Non United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 515.0 418.7 $ 312.6
Long-lived assets $ 32.5 $ 28.1  
v3.22.0.1
Investments and Fair Value Measurements (Classification of Securities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]    
Available-for-sale $ 12.3 $ 0.9
Held-to-maturity 3.2 1.2
Trading securities 0.0 0.0
Total 62.3 41.7
Equity method investments $ 46.8 $ 39.6
v3.22.0.1
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Available-for-sale:      
Available-for-sale $ 12.3 $ 0.9  
Held-to-maturity:      
Held-to-maturity securities, total amortized cost 3.2 1.2  
Held-to-maturity securities, current 3.2 1.2  
Equity securities, Available-for-sale, Held-to-maturity, Fair Value 62.3 41.7  
Equity securities, Available-for-sale, Held-to-maturity, Accumulated Gross Unrealized Loss, before Tax 1.0 0.0  
Equity securities, Available-for-sale, Held-to-maturity, Accumulated Gross Unrealized Gain, before Tax 10.0 5.0  
Equity investments, Available-for-sale, Held-to-maturity, Amortized Cost 53.3 36.7  
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract]      
Equity Securities, FV-NI, Cost 39.6 34.6  
Equity Securities, FV-NI, Current 46.8 39.6  
Equity method investments 46.8 39.6  
Equity Securities, FV-NI, Accumulated Gross Unrealized Gain, before Tax 8.2 5.0  
Equity Securities, FV-NI, Accumulated Gross Unrealized Loss, before Tax (1.0) 0.0  
Equity securities, Available-for-sale, Realized gains 5.0 2.1 $ 1.2
Equity securities, Available-for-sale, Realized losses 0.0 0.0 0.0
Equity securities, Available-for-sale securities, Realized gains, net 5.0 2.1 $ 1.2
Debt Securities      
Available-for-sale:      
Available-for-sale securities, amortized cost basis 5.5 0.9  
Available-for-sale securities, unrealized gain 0.0 0.0  
Available-for-sale securities, unrealized loss 0.0 0.0  
Available-for-sale 5.5 0.9  
Convertible Debt      
Available-for-sale:      
Available-for-sale securities, amortized cost basis 5.0 0.0  
Available-for-sale securities, unrealized gain 1.8 0.0  
Available-for-sale securities, unrealized loss 0.0 0.0  
Available-for-sale 6.8 0.0  
Certificates of deposit [Member]      
Held-to-maturity:      
Held-to-maturity securities, total amortized cost 3.2 1.2  
Held-to-maturity securities, unrealized gain 0.0 0.0  
Held-to-maturity securities, unrealized loss 0.0 0.0  
Held-to-maturity securities, current $ 3.2 $ 1.2  
v3.22.0.1
Investments and Fair Value Measurements (Cost and Fair Value of Securities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Available-for-sale Securities, Debt Maturities [Abstract]    
Available-for-sale securities, current $ 12.3 $ 0.9
Debt Securities, Held-to-maturity, Maturity [Abstract]    
Held-to-maturity securities, due within one year, net carrying amount 3.2 1.2
Held-to-maturity securities, due within one year, fair value 3.2 1.2
Held-to-maturity securities, due within one year, carrying amount 0.0 0.0
Held-to-maturity securities, due within one year, fair value 0.0 0.0
Held-to-maturity securities, total amortized cost 3.2 1.2
Held-to-maturity securities, current $ 3.2 $ 1.2
v3.22.0.1
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair Value Disclosures [Abstract]      
Unrealized gains (losses), net $ 1.8 $ (0.4) $ 0.6
v3.22.0.1
Investments and Fair Value Measurements (Fair Value of Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Trading securities $ 0.0 $ 0.0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability 34.4  
Available-for-sale 12.3 0.9
Equity method investments 46.8 39.6
Payment for Contingent Consideration Liability, Operating Activities 47.5  
Debt Securities    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 5.5 0.9
Convertible Debt    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 6.8 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value disclosure 0.6 0.8
Investments, fair value disclosure 52.9 41.3
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Marketable equity investments, exchange traded funds, and mutual funds    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Equity method investments 46.8 39.6
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Security Investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset Acquisition, Contingent Consideration, Liability 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Securities    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 5.5 0.9
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Convertible Debt    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 0.0  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value disclosure 0.0 0.0
Investments, fair value disclosure 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Marketable equity investments, exchange traded funds, and mutual funds    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Equity method investments 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Security Investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset Acquisition, Contingent Consideration, Liability 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Securities    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Convertible Debt    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 0.0  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value disclosure 0.0 0.0
Investments, fair value disclosure 24.1 53.7
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Marketable equity investments, exchange traded funds, and mutual funds    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Equity method investments 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Security Investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset Acquisition, Contingent Consideration, Liability 17.3 53.7
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 0.0 0.0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Convertible Debt    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 6.8  
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value disclosure 0.6 0.8
Investments, fair value disclosure 77.0 95.0
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Marketable equity investments, exchange traded funds, and mutual funds    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Equity method investments 46.8 39.6
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Other Security Investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset Acquisition, Contingent Consideration, Liability 17.3 53.7
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 6.8  
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Debt Securities    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale 5.5 $ 0.9
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Convertible Debt    
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Available-for-sale $ 6.8  
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Narrative) (Details)
£ in Millions
12 Months Ended
Sep. 03, 2021
USD ($)
Jul. 02, 2020
USD ($)
Jul. 02, 2019
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
GBP (£)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Business Acquisition [Line Items]              
Holding gain on previously held equity interest       $ 0   $ 50,900,000 $ 0
Impairment of intangible assets       0   0 0
Goodwill       1,207,000,000   1,205,000,000 1,039,100,000
Goodwill impairment loss       0   0 0
Goodwill, Acquired During Period       14,900,000   134,700,000  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities $ 3,200,000            
Contingent consideration liability       17,300,000   35,000,000.0  
Payment for Contingent Consideration Liability, Operating Activities       47,500,000      
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability       34,400,000      
Business Combination, Step Acquisition [Abstract]              
Goodwill, Acquired During Period       $ 14,900,000   134,700,000  
Goodwill and Intangible Assets Disclosure       Acquisitions, Goodwill, and Other Intangible Assets
 
2021 Acquisitions

Planned acquisition of Wealth Management Platform Provider Praemium's U.K. and International Business

On December 21, 2021, we announced we reached an agreement to acquire 100% of Praemium Limited's operations in the United Kingdom, Jersey, Hong Kong, and Dubai (Praemium). Across its U.K. and international business, Praemium offers proprietary SaaS-based technology and services that allow fee-based advisers to outsource key elements of the advice workflow. The end-to-end solution from Praemium will add to the company's existing data, fund profiles, portfolio analytics, and investment management capabilities available to advisers.

The transaction consideration includes a cash payment at closing of approximately £35 million, subject to completion adjustments. The closing of the transaction remains subject to regulatory approval from the Financial Conduct Authority in the United Kingdom and the Jersey Financial Services Commission in Jersey, and other customary conditions. We expect the transaction to be completed during the second or third quarter of 2022.

Moorgate Benchmarks

On September 3, 2021, we acquired Moorgate Benchmarks (Moorgate), a privately held European-based global provider of index design, calculation, and administration. We began consolidating the financial results of Moorgate in our consolidated financial statements on September 3, 2021.

The transaction has been accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We finalized the purchase price allocation related to our acquisition of Moorgate during the fourth quarter of 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition.

The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $14.9 million of goodwill and $13.4 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Technology-based assets$12.1 7
Customer-related assets1.3 5
Total intangible assets$13.4 

We recognized a net deferred tax liability of $3.2 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2020 Acquisitions

Hueler Analytics

On January 31, 2020, we acquired Hueler Analytics' Stable Value Fund Comparative Universe Data and Stable Value Index (Hueler Analytics). We began consolidating the financial results of Hueler Analytics in our consolidated financial statements on January 31, 2020.

Plan Plus Global

On April 3, 2020, we acquired PlanPlus Global, a financial-planning, risk-profiling, and portfolio tracking software firm. The acquisition expands our financial-planning capabilities for advisors. We began consolidating the financial results of PlanPlus Global in our consolidated financial statements on April 3, 2020.

Increased Ownership Interest in Sustainalytics Holding B.V. (Sustainalytics)

On July 2, 2020, we completed the acquisition of the remaining 60% interest in Sustainalytics, a globally recognized leader in environmental, social, and governance (ESG) ratings and research, for an initial cash payment of $61.2 million. The acquisition was accounted for as a business combination with July 2, 2020 as the date of acquisition, and the company was determined to be the acquirer. Accordingly, we began consolidating the financial results of Sustainalytics in our consolidated financial statements on July 2, 2020. We previously held an approximately 40% ownership interest in Sustainalytics, which had an estimated fair value of $75.4 million at the date of the acquisition and a book value of $24.5 million immediately prior to the acquisition and resulted in a holding gain of $50.9 million.

The transaction was accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.

We finalized the purchase price allocation related to our acquisition of Sustainalytics during 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition. Subsequent measurement changes for certain contingent liabilities were recognized in the company’s earnings.

Consideration related to the acquisition consisted of an initial cash payment of $61.2 million and contingent payments with an acquisition date fair value of $75.2 million, a portion of which is treated as additional purchase consideration and the remainder, which is sometimes referred to as an earn-out, is accounted for and described as compensation expense for purpose of the following discussion and disclosure. The acquisition date fair values of the additional purchase consideration and compensation were $47.4 million and $27.8 million, respectively. The contingent payments are due on June 30, 2021 and 2022, and each payment is determined based on a multiple of Sustainalytics' revenues for the years ended December 31, 2020 and 2021, respectively, which are also the measurement periods for determining the final payments. In the second quarter of 2021, we made the second cash payment of $47.5 million, which resulted in a decrease of $34.4 million to the contingent consideration liability balance. The payment was based on the achievement of certain revenue metrics for the year ended December 31, 2020.

We used a Monte Carlo simulation to arrive at the estimated fair values of the contingent payments at the acquisition date. At subsequent balance sheet dates, the additional purchase consideration, including contingent payments, will continue to be measured at fair value and is classified as "Contingent consideration liability" on our Consolidated Balance Sheet as of December 31, 2021 and as "Contingent consideration liability" and "Other long-term liabilities" on our Consolidated Balance Sheet as of December 31, 2020. The compensation component is measured based on probability weighted future benefits expected to be paid, and is reflected in "Current liabilities - Accrued compensation" on our Consolidated Balance Sheet as of December 31, 2021 and in "Current liabilities - Accrued compensation" and "Accrued Compensation" on our Consolidated Balance Sheet as of December 31, 2020. At December 31, 2021 and 2020, the fair value of the contingent consideration liability was impacted by foreign currency translations and not by adjustments to key assumptions used in our fair value estimates compared to the assumptions used in the acquisition date fair value estimates. As of December 31, 2021, the compensation component of the final payment was determined using final recorded revenue consistent with the measurement period which ended at December 31, 2021.
The book value of our 40% ownership interest immediately prior to the acquisition date was $24.5 million, and we recorded a $50.9 million non-cash holding gain for the difference between the fair value and the book value of our previously held equity interest. The acquisition of the additional 60% interest was considered an acquisition achieved in stages and resulted in the remeasurement of the previously held equity interest to fair value. The company determined the fair value of the previously held equity interest using a discounted cash flow analysis (an income approach) based on projected cash flows for Sustainalytics combined with other valuation approaches and considerations to estimate total purchase consideration, which was divided by fully diluted outstanding shares to determine the fair value per share. The fair value per share was then applied to the shares of Sustainalytics held by the company to derive the acquisition date fair value of the previously held equity interest. The gain is classified as "Holding gain on previously held equity interest" in our Consolidated Statement of Income for the year ended December 31, 2020.

The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:
(in millions)
Fair value of consideration transferred$108.6 
Fair value of the previously held equity interest75.4 
Cash and cash equivalents$9.8 
Accounts receivable6.2 
Intangible assets, net79.5 
Operating lease assets5.2 
Other current and non-current assets7.4 
Deferred revenue(21.2)
Operating lease liability(5.2)
Deferred tax liability, net(16.9)
Other current and non-current liabilities(15.5)
Total fair value of net assets acquired$49.3 
Goodwill$134.7 

At July 2, 2020, accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. At December 31, 2020, substantially all amounts were collected.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $79.5 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Customer-related assets$22.9 20
Technology-based assets46.7 10
Intellectual property9.9 10
Total intangible assets$79.5 

Goodwill of $134.7 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.

We recognized a net deferred tax liability of $16.9 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2019 Acquisitions

AdviserLogic

On December 1, 2019, we acquired AdviserLogic, a cloud-based financial planning software platform for financial advisors in Australia. We began consolidating the financial results of AdviserLogic in our Consolidated Financial Statements on December 1, 2019.
DBRS

On July 2, 2019, we acquired 100% of the voting equity interests of DBRS for total cash consideration of $682.1 million. DBRS delivers comprehensive credit rating services and ongoing surveillance to customers in various market sectors across Canada, the U.S., and Europe. The combination of DBRS with Morningstar Credit Ratings' business (collectively, DBRS Morningstar) expands global asset class coverage and provides investors with fixed-income analysis and research through the combined platform.
We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on July 2, 2019. DBRS Morningstar contributed $127.6 million of revenue and $123.5 million of operating expense during the year ended December 31, 2019. We incurred transaction-related costs of $6.5 million during the year ended December 31, 2019.
We accounted for this transaction using the acquisition method of accounting and Morningstar was the accounting acquirer.
We finalized the purchase price allocation related to our acquisition of DBRS during 2020 and did not record any significant adjustments compared with our preliminary estimates at the date of acquisition.
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
(in millions)
Cash consideration transferred$682.1 
Cash and cash equivalents$8.5 
Accounts receivable28.8 
Property, equipment, and capitalized software, net12.8 
Intangible assets, net284.1 
Goodwill473.3 
Operating lease assets33.3 
Other current and non-current assets5.7 
Deferred revenue(43.2)
Deferred tax liability, net(66.6)
Operating lease liabilities (35.0)
Other current and non-current liabilities(19.6)
Total fair value of DBRS$682.1 
Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $284.1 million of acquired intangible assets, as follows:
(in millions)Weighted Average Useful Life (years)
Customer-related assets$219.1 10
Technology-based assets29.4 5
Intellectual property (trademarks and trade names)35.6 7
Total intangible assets$284.1 

We recognized a net deferred tax liability of $66.6 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
Goodwill of $473.3 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.
The following unaudited pro forma information presents a summary of our Consolidated Statements of Income for the year ended December 31, 2019 and 2018, as if we had completed the acquisition as of January 1, 2018.
This unaudited pro forma information is presented for illustrative purposes and is not intended to represent or be indicative of the actual results of operations or expected synergies of DBRS Morningstar that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, nor is it intended to represent or be indicative of future results of operations.
In calculating the pro forma information below, we included an estimate of amortization expense related to the intangible assets acquired, depreciation expense due to changes in estimated remaining useful lives of long-lived assets, reduction in revenue as a result of the fair value adjustments to deferred revenue, and interest expense incurred on the long-term debt.
Unaudited Pro Forma Financial Information (in millions)20192018
Revenue$1,259.2 $1,184.5 
Operating income190.3 223.6 
Net income148.2 179.7 
Basic net income per share$3.47 $4.22 
Diluted net income per share$3.43 $4.18 
Other acquisition activity during 2019 was not material.

Goodwill
 
The following table shows the changes in our goodwill balances from January 1, 2020 to December 31, 2021:
 
 (in millions)
Balance as of January 1, 2020$1,039.1 
Acquisition of Sustainalytics134.7 
Other, primarily foreign currency translation31.2 
Balance as of December 31, 2020$1,205.0 
Acquisition of Moorgate14.9 
Other, primarily foreign currency translation(12.9)
Balance as of December 31, 2021$1,207.0 

We did not record any impairment losses in 2021, 2020, or 2019 as the estimated fair value of our reporting unit exceeded its carrying value and we did not note any indicators of impairment. We perform our annual impairment testing during the fourth quarter of each year.
Intangible Assets

The following table summarizes our intangible assets: 
 As of December 31, 2021As of December 31, 2020
(in millions)GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
Customer-related assets$413.7 $(192.8)$220.9 11$415.6 $(163.7)$251.9 11
Technology-based assets232.3 (157.7)74.6 7223.2 (135.2)88.0 7
Intellectual property & other 83.0 (50.3)32.7 883.6 (43.4)40.2 8
Total intangible assets$729.0 $(400.8)$328.2 10$722.4 $(342.3)$380.1 10
 
The following table summarizes our amortization expense related to intangible assets:

(in millions)202120202019
Amortization expense$62.0 $58.8 $36.5 
 
We did not record any impairment losses involving intangible assets in 2021, 2020, or 2019.

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

Based on acquisitions and divestitures completed through December 31, 2021, we expect intangible amortization expense for 2022 and subsequent years to be as follows:
 (in millions)
2022$54.7 
202350.9 
202444.7 
202538.2 
202634.5 
Thereafter105.2 
Total$328.2 

Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated useful lives, impairments, and foreign currency translation.
Acquisitions, Goodwill, and Other Intangible Assets
 
2021 Acquisitions

Planned acquisition of Wealth Management Platform Provider Praemium's U.K. and International Business

On December 21, 2021, we announced we reached an agreement to acquire 100% of Praemium Limited's operations in the United Kingdom, Jersey, Hong Kong, and Dubai (Praemium). Across its U.K. and international business, Praemium offers proprietary SaaS-based technology and services that allow fee-based advisers to outsource key elements of the advice workflow. The end-to-end solution from Praemium will add to the company's existing data, fund profiles, portfolio analytics, and investment management capabilities available to advisers.

The transaction consideration includes a cash payment at closing of approximately £35 million, subject to completion adjustments. The closing of the transaction remains subject to regulatory approval from the Financial Conduct Authority in the United Kingdom and the Jersey Financial Services Commission in Jersey, and other customary conditions. We expect the transaction to be completed during the second or third quarter of 2022.

Moorgate Benchmarks

On September 3, 2021, we acquired Moorgate Benchmarks (Moorgate), a privately held European-based global provider of index design, calculation, and administration. We began consolidating the financial results of Moorgate in our consolidated financial statements on September 3, 2021.

The transaction has been accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. We finalized the purchase price allocation related to our acquisition of Moorgate during the fourth quarter of 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition.

The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $14.9 million of goodwill and $13.4 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Technology-based assets$12.1 7
Customer-related assets1.3 5
Total intangible assets$13.4 

We recognized a net deferred tax liability of $3.2 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2020 Acquisitions

Hueler Analytics

On January 31, 2020, we acquired Hueler Analytics' Stable Value Fund Comparative Universe Data and Stable Value Index (Hueler Analytics). We began consolidating the financial results of Hueler Analytics in our consolidated financial statements on January 31, 2020.

Plan Plus Global

On April 3, 2020, we acquired PlanPlus Global, a financial-planning, risk-profiling, and portfolio tracking software firm. The acquisition expands our financial-planning capabilities for advisors. We began consolidating the financial results of PlanPlus Global in our consolidated financial statements on April 3, 2020.

Increased Ownership Interest in Sustainalytics Holding B.V. (Sustainalytics)

On July 2, 2020, we completed the acquisition of the remaining 60% interest in Sustainalytics, a globally recognized leader in environmental, social, and governance (ESG) ratings and research, for an initial cash payment of $61.2 million. The acquisition was accounted for as a business combination with July 2, 2020 as the date of acquisition, and the company was determined to be the acquirer. Accordingly, we began consolidating the financial results of Sustainalytics in our consolidated financial statements on July 2, 2020. We previously held an approximately 40% ownership interest in Sustainalytics, which had an estimated fair value of $75.4 million at the date of the acquisition and a book value of $24.5 million immediately prior to the acquisition and resulted in a holding gain of $50.9 million.

The transaction was accounted for as a business combination using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.

We finalized the purchase price allocation related to our acquisition of Sustainalytics during 2021 and did not record any significant adjustments compared to the preliminary estimates at the date of acquisition. Subsequent measurement changes for certain contingent liabilities were recognized in the company’s earnings.

Consideration related to the acquisition consisted of an initial cash payment of $61.2 million and contingent payments with an acquisition date fair value of $75.2 million, a portion of which is treated as additional purchase consideration and the remainder, which is sometimes referred to as an earn-out, is accounted for and described as compensation expense for purpose of the following discussion and disclosure. The acquisition date fair values of the additional purchase consideration and compensation were $47.4 million and $27.8 million, respectively. The contingent payments are due on June 30, 2021 and 2022, and each payment is determined based on a multiple of Sustainalytics' revenues for the years ended December 31, 2020 and 2021, respectively, which are also the measurement periods for determining the final payments. In the second quarter of 2021, we made the second cash payment of $47.5 million, which resulted in a decrease of $34.4 million to the contingent consideration liability balance. The payment was based on the achievement of certain revenue metrics for the year ended December 31, 2020.

We used a Monte Carlo simulation to arrive at the estimated fair values of the contingent payments at the acquisition date. At subsequent balance sheet dates, the additional purchase consideration, including contingent payments, will continue to be measured at fair value and is classified as "Contingent consideration liability" on our Consolidated Balance Sheet as of December 31, 2021 and as "Contingent consideration liability" and "Other long-term liabilities" on our Consolidated Balance Sheet as of December 31, 2020. The compensation component is measured based on probability weighted future benefits expected to be paid, and is reflected in "Current liabilities - Accrued compensation" on our Consolidated Balance Sheet as of December 31, 2021 and in "Current liabilities - Accrued compensation" and "Accrued Compensation" on our Consolidated Balance Sheet as of December 31, 2020. At December 31, 2021 and 2020, the fair value of the contingent consideration liability was impacted by foreign currency translations and not by adjustments to key assumptions used in our fair value estimates compared to the assumptions used in the acquisition date fair value estimates. As of December 31, 2021, the compensation component of the final payment was determined using final recorded revenue consistent with the measurement period which ended at December 31, 2021.
The book value of our 40% ownership interest immediately prior to the acquisition date was $24.5 million, and we recorded a $50.9 million non-cash holding gain for the difference between the fair value and the book value of our previously held equity interest. The acquisition of the additional 60% interest was considered an acquisition achieved in stages and resulted in the remeasurement of the previously held equity interest to fair value. The company determined the fair value of the previously held equity interest using a discounted cash flow analysis (an income approach) based on projected cash flows for Sustainalytics combined with other valuation approaches and considerations to estimate total purchase consideration, which was divided by fully diluted outstanding shares to determine the fair value per share. The fair value per share was then applied to the shares of Sustainalytics held by the company to derive the acquisition date fair value of the previously held equity interest. The gain is classified as "Holding gain on previously held equity interest" in our Consolidated Statement of Income for the year ended December 31, 2020.

The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:
(in millions)
Fair value of consideration transferred$108.6 
Fair value of the previously held equity interest75.4 
Cash and cash equivalents$9.8 
Accounts receivable6.2 
Intangible assets, net79.5 
Operating lease assets5.2 
Other current and non-current assets7.4 
Deferred revenue(21.2)
Operating lease liability(5.2)
Deferred tax liability, net(16.9)
Other current and non-current liabilities(15.5)
Total fair value of net assets acquired$49.3 
Goodwill$134.7 

At July 2, 2020, accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. At December 31, 2020, substantially all amounts were collected.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $79.5 million of acquired intangible assets, as follows:

(in millions)Weighted average useful life (years)
Customer-related assets$22.9 20
Technology-based assets46.7 10
Intellectual property9.9 10
Total intangible assets$79.5 

Goodwill of $134.7 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.

We recognized a net deferred tax liability of $16.9 million primarily because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
2019 Acquisitions

AdviserLogic

On December 1, 2019, we acquired AdviserLogic, a cloud-based financial planning software platform for financial advisors in Australia. We began consolidating the financial results of AdviserLogic in our Consolidated Financial Statements on December 1, 2019.
DBRS

On July 2, 2019, we acquired 100% of the voting equity interests of DBRS for total cash consideration of $682.1 million. DBRS delivers comprehensive credit rating services and ongoing surveillance to customers in various market sectors across Canada, the U.S., and Europe. The combination of DBRS with Morningstar Credit Ratings' business (collectively, DBRS Morningstar) expands global asset class coverage and provides investors with fixed-income analysis and research through the combined platform.
We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on July 2, 2019. DBRS Morningstar contributed $127.6 million of revenue and $123.5 million of operating expense during the year ended December 31, 2019. We incurred transaction-related costs of $6.5 million during the year ended December 31, 2019.
We accounted for this transaction using the acquisition method of accounting and Morningstar was the accounting acquirer.
We finalized the purchase price allocation related to our acquisition of DBRS during 2020 and did not record any significant adjustments compared with our preliminary estimates at the date of acquisition.
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:
(in millions)
Cash consideration transferred$682.1 
Cash and cash equivalents$8.5 
Accounts receivable28.8 
Property, equipment, and capitalized software, net12.8 
Intangible assets, net284.1 
Goodwill473.3 
Operating lease assets33.3 
Other current and non-current assets5.7 
Deferred revenue(43.2)
Deferred tax liability, net(66.6)
Operating lease liabilities (35.0)
Other current and non-current liabilities(19.6)
Total fair value of DBRS$682.1 
Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value.
The allocation of the estimated fair values of the assets acquired and liabilities assumed includes $284.1 million of acquired intangible assets, as follows:
(in millions)Weighted Average Useful Life (years)
Customer-related assets$219.1 10
Technology-based assets29.4 5
Intellectual property (trademarks and trade names)35.6 7
Total intangible assets$284.1 

We recognized a net deferred tax liability of $66.6 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes.
Goodwill of $473.3 million represents the excess over the fair value of the net tangible and intangible assets acquired. Goodwill is not deductible for income tax purposes.
The following unaudited pro forma information presents a summary of our Consolidated Statements of Income for the year ended December 31, 2019 and 2018, as if we had completed the acquisition as of January 1, 2018.
This unaudited pro forma information is presented for illustrative purposes and is not intended to represent or be indicative of the actual results of operations or expected synergies of DBRS Morningstar that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, nor is it intended to represent or be indicative of future results of operations.
In calculating the pro forma information below, we included an estimate of amortization expense related to the intangible assets acquired, depreciation expense due to changes in estimated remaining useful lives of long-lived assets, reduction in revenue as a result of the fair value adjustments to deferred revenue, and interest expense incurred on the long-term debt.
Unaudited Pro Forma Financial Information (in millions)20192018
Revenue$1,259.2 $1,184.5 
Operating income190.3 223.6 
Net income148.2 179.7 
Basic net income per share$3.47 $4.22 
Diluted net income per share$3.43 $4.18 
Other acquisition activity during 2019 was not material.

Goodwill
 
The following table shows the changes in our goodwill balances from January 1, 2020 to December 31, 2021:
 
 (in millions)
Balance as of January 1, 2020$1,039.1 
Acquisition of Sustainalytics134.7 
Other, primarily foreign currency translation31.2 
Balance as of December 31, 2020$1,205.0 
Acquisition of Moorgate14.9 
Other, primarily foreign currency translation(12.9)
Balance as of December 31, 2021$1,207.0 

We did not record any impairment losses in 2021, 2020, or 2019 as the estimated fair value of our reporting unit exceeded its carrying value and we did not note any indicators of impairment. We perform our annual impairment testing during the fourth quarter of each year.
Intangible Assets

The following table summarizes our intangible assets: 
 As of December 31, 2021As of December 31, 2020
(in millions)GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
GrossAccumulated
Amortization
NetWeighted
Average
Useful  Life
(years)
Customer-related assets$413.7 $(192.8)$220.9 11$415.6 $(163.7)$251.9 11
Technology-based assets232.3 (157.7)74.6 7223.2 (135.2)88.0 7
Intellectual property & other 83.0 (50.3)32.7 883.6 (43.4)40.2 8
Total intangible assets$729.0 $(400.8)$328.2 10$722.4 $(342.3)$380.1 10
 
The following table summarizes our amortization expense related to intangible assets:

(in millions)202120202019
Amortization expense$62.0 $58.8 $36.5 
 
We did not record any impairment losses involving intangible assets in 2021, 2020, or 2019.

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

Based on acquisitions and divestitures completed through December 31, 2021, we expect intangible amortization expense for 2022 and subsequent years to be as follows:
 (in millions)
2022$54.7 
202350.9 
202444.7 
202538.2 
202634.5 
Thereafter105.2 
Total$328.2 

Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated useful lives, impairments, and foreign currency translation.
   
Contingent consideration liability       $ 17,300,000   $ 35,000,000.0  
Payment for Contingent Consideration Liability, Operating Activities       47,500,000      
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability       34,400,000      
Praemium              
Finite-Lived Intangible Assets [Line Items]              
Asset Acquisition, Price of Acquisition, Expected | £         £ 35.0    
Asset Acquisition, Price of Acquisition, Expected | £         £ 35.0    
DBRS [Member]              
Business Acquisition [Line Items]              
Percentage of voting interests acquired     100.00%        
Consideration     $ 682,100,000        
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual     127,600,000        
Acquisition estimated fair value     682,100,000        
Intangible assets     284,100,000        
Goodwill     473,300,000        
Operating expense     123,500,000        
Transaction-related costs             $ 6,500,000
Finite-lived Intangible Assets Acquired     284,100,000        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities     66,600,000        
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired     284,100,000        
DBRS [Member] | Technology-based assets [Member]              
Business Acquisition [Line Items]              
Finite-lived Intangible Assets Acquired     $ 29,400,000        
Weighted Average Useful Life (years)     5 years        
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired     $ 29,400,000        
DBRS [Member] | Customer-related intangible assets [Member]              
Business Acquisition [Line Items]              
Weighted Average Useful Life (years)     10 years        
Sustainalytics [Member]              
Business Acquisition [Line Items]              
Percentage of voting interests acquired   60.00%          
Cash paid to acquire the entity   $ 61,200,000          
Percentage of voting interest before subsequent acquisition (percent)   40.00%          
Equity interest in acquiree, fair value   $ 75,400,000          
Holding gain on previously held equity interest   50,900,000          
Consideration   108,600,000          
Goodwill   134,700,000          
Business Combination, Consideration Transferred, Other   24,500,000          
Finite-lived Intangible Assets Acquired   79,500,000          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities   16,900,000          
Payment for Contingent Consideration Liability, Operating Activities       47,500,000      
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability       34,400,000      
Business Combination, Step Acquisition [Abstract]              
Business Combination, Consideration Transferred, Other   24,500,000          
Payment for Contingent Consideration Liability, Operating Activities       47,500,000      
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability       $ 34,400,000      
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired   79,500,000          
Business Combination, Step Acquisition, Equity Interest in Acquiree, Book Value   24,500,000          
Business Combination, Assets Arising from Contingencies, Amount Recognized   75,200,000          
Business Combination, Step Acquisition, Equity Interest in Acquiree, Book Value   24,500,000          
Sustainalytics [Member] | Technology-based assets [Member]              
Business Acquisition [Line Items]              
Finite-lived Intangible Assets Acquired   $ 46,700,000          
Weighted Average Useful Life (years)   10 years          
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired   $ 46,700,000          
Sustainalytics [Member] | Customer-related intangible assets [Member]              
Business Acquisition [Line Items]              
Finite-lived Intangible Assets Acquired   $ 22,900,000          
Weighted Average Useful Life (years)   20 years          
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired   $ 22,900,000          
Sustainalytics [Member] | Purchase Consideration              
Business Acquisition [Line Items]              
Contingent consideration liability   47,400,000          
Business Combination, Step Acquisition [Abstract]              
Contingent consideration liability   47,400,000          
Sustainalytics [Member] | Compensation              
Business Acquisition [Line Items]              
Contingent consideration liability   27,800,000          
Business Combination, Step Acquisition [Abstract]              
Contingent consideration liability   $ 27,800,000          
Moorgate              
Business Acquisition [Line Items]              
Goodwill, Acquired During Period 14,900,000            
Finite-lived Intangible Assets Acquired 13,400,000            
Business Combination, Step Acquisition [Abstract]              
Goodwill, Acquired During Period 14,900,000            
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired 13,400,000            
Moorgate | Technology-based assets [Member]              
Business Acquisition [Line Items]              
Finite-lived Intangible Assets Acquired $ 12,100,000            
Weighted Average Useful Life (years) 7 years            
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired $ 12,100,000            
Moorgate | Customer-related intangible assets [Member]              
Business Acquisition [Line Items]              
Finite-lived Intangible Assets Acquired $ 1,300,000            
Weighted Average Useful Life (years) 5 years            
Finite-Lived Intangible Assets [Line Items]              
Finite-lived Intangible Assets Acquired $ 1,300,000            
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Purchase Price Allocation) (Details) (Details) - USD ($)
$ in Millions
Jul. 02, 2020
Jul. 02, 2019
Dec. 31, 2021
Sep. 03, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition, Purchase Price Allocation [Abstract]            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities       $ (3.2)    
Goodwill     $ 1,207.0   $ 1,205.0 $ 1,039.1
DBRS [Member]            
Business Acquisition, Purchase Price Allocation [Abstract]            
Consideration   $ 682.1        
Cash and cash equivalents   8.5        
Accounts receivable and other current assets   28.8        
Deferred revenue   (43.2)        
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Assets   5.7        
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation   (35.0)        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities   (66.6)        
Acquisition estimated fair value   682.1        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment   12.8        
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Operating Lease Asset   33.3        
Intangible assets   284.1        
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Liabilities   (19.6)        
Goodwill   $ 473.3        
Sustainalytics [Member]            
Business Acquisition, Purchase Price Allocation [Abstract]            
Consideration $ 108.6          
Equity interest in acquiree, fair value 75.4          
Cash and cash equivalents 9.8          
Accounts receivable and other current assets 6.2          
Deferred revenue (21.2)          
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Assets 7.4          
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation (5.2)          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities (16.9)          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net 49.3          
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Operating Lease Asset 5.2          
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Other Liabilities $ (15.5)          
Percentage of voting interest before subsequent acquisition (percent) 40.00%          
Goodwill $ 134.7          
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Allocation of Acquired Intangible Assets) (Details) - USD ($)
$ in Millions
Sep. 03, 2021
Jul. 02, 2020
Jul. 02, 2019
Business Acquisition [Line Items]      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities $ 3.2    
DBRS [Member]      
Business Acquisition [Line Items]      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities     $ 66.6
Finite-lived Intangible Assets Acquired     $ 284.1
DBRS [Member] | Customer-related intangible assets [Member]      
Business Acquisition [Line Items]      
Weighted Average Useful Life (years)     10 years
DBRS [Member] | Customer-related assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired     $ 219.1
DBRS [Member] | Technology-based assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired     $ 29.4
Weighted Average Useful Life (years)     5 years
DBRS [Member] | Intellectual property [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired     $ 35.6
Weighted Average Useful Life (years)     7 years
Sustainalytics [Member]      
Business Acquisition [Line Items]      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities   $ 16.9  
Finite-lived Intangible Assets Acquired   79.5  
Sustainalytics [Member] | Customer-related intangible assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired   $ 22.9  
Weighted Average Useful Life (years)   20 years  
Sustainalytics [Member] | Technology-based assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired   $ 46.7  
Weighted Average Useful Life (years)   10 years  
Sustainalytics [Member] | Intellectual property [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired   $ 9.9  
Weighted Average Useful Life (years)   10 years  
Moorgate      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired 13.4    
Moorgate | Customer-related intangible assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired $ 1.3    
Weighted Average Useful Life (years) 5 years    
Moorgate | Technology-based assets [Member]      
Business Acquisition [Line Items]      
Finite-lived Intangible Assets Acquired $ 12.1    
Weighted Average Useful Life (years) 7 years    
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Goodwill, Beginning Balance $ 1,205.0 $ 1,039.1
Goodwill, Acquired During Period 14.9 134.7
Goodwill, Foreign Currency Translation Gain (Loss) 12.9 (31.2)
Goodwill, Ending Balance $ 1,207.0 $ 1,205.0
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross $ 729.0 $ 722.4
Accumulated Amortization (400.8) (342.3)
Net $ 328.2 $ 380.1
Weighted Average Useful  Life (years) 10 years 10 years
Intellectual property [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 83.0 $ 83.6
Accumulated Amortization (50.3) (43.4)
Net $ 32.7 $ 40.2
Weighted Average Useful  Life (years) 8 years 8 years
Customer-related assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 413.7 $ 415.6
Accumulated Amortization (192.8) (163.7)
Net $ 220.9 $ 251.9
Weighted Average Useful  Life (years) 11 years 11 years
Technology-based assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross $ 232.3 $ 223.2
Accumulated Amortization (157.7) (135.2)
Net $ 74.6 $ 88.0
Weighted Average Useful  Life (years) 7 years 7 years
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets (Amortization Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Acquisitions, Goodwill, and Other Intangible Assets [Abstract]      
Amortization expense $ 62.0 $ 58.8 $ 36.5
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]      
2017 54.7    
2018 50.9    
2019 44.7    
2020 38.2    
2021 34.5    
Thereafter 105.2    
Intangible assets, net $ 328.2 $ 380.1  
v3.22.0.1
Acquisitions, Goodwill, and Other Intangible Assets Acquisition, Goodwill, and Other Intangible Assets - Pro Forma (Details) - DBRS [Member] - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]    
Revenue $ 1,259.2 $ 1,184.5
Operating income 190.3 223.6
Net income $ 148.2 $ 179.7
Basic net income per share attributable to Morningstar, Inc. (in dollars per share) $ 3.47 $ 4.22
Diluted net income per share attributable to Morningstar, Inc. (in dollars per share) $ 3.43 $ 4.18
v3.22.0.1
Investments in Unconsolidated Entities (Details)
¥ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2021
JPY (¥)
Dec. 31, 2020
JPY (¥)
Schedule of Equity Method Investments [Line Items]          
Cost method investments $ 13.2 $ 6.3      
Total investments in unconsolidated entities 63.3 32.6      
Cost-method investments, other than temporary impairment 0.0 0.0      
Equity method investment, other than temporary impairment 0.0 0.0      
Proceeds from sale of equity method investments, net 1.1 35.2 $ 17.6    
Realized gains on sale of equity method investments 0.9 30.0 19.5    
Proceeds from sale of equity method investments, net 1.1 35.2 17.6    
Realized gains on sale of equity method investments 0.9 30.0 $ 19.5    
Other Equity Method Investments [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investments 31.4 7.4      
YCharts [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage     0.00%    
Morningstar Japan KK [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investments $ 18.7 $ 18.9      
Equity method investment, ownership percentage 22.10% 22.40%   22.10% 22.40%
Equity method investment, approximate market value $ 111.1 $ 89.4   ¥ 12,781.0 ¥ 9,221.9
Ellevest [Member]          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage     17.00%    
v3.22.0.1
Property, Equipment, and Capitalized Software (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost $ 701.0 $ 607.4  
Less accumulated depreciation (529.2) (452.3)  
Property, equipment, and capitalized software, net 171.8 155.1  
Depreciation expense 87.0 80.1 $ 81.2
Computer equipment [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 85.7 74.6  
Capitalized software [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 464.5 390.2  
Furniture and fixtures [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 36.9 35.6  
Leasehold improvements [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 100.7 96.0  
Telephone equipment [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost 2.2 2.4  
Construction in progress [Member]      
Property, Plant and Equipment, Net [Abstract]      
Property, equipment, and capitalized software, at cost $ 11.0 $ 8.6  
v3.22.0.1
Leases (Schedule of Operating Lease Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Operating Leased Assets [Line Items]    
Operating lease assets $ 149.2 $ 147.7
Operating lease liabilities, current 36.4 39.9
Operating lease liabilities, non-current 135.7 137.7
Total lease liabilities $ 172.1 $ 177.6
Minimum [Member]    
Operating Leased Assets [Line Items]    
Lessee, Operating Lease, Term of Contract 1 year  
Maximum [Member]    
Operating Leased Assets [Line Items]    
Lessee, Operating Lease, Term of Contract 12 years  
v3.22.0.1
Leases (Operating Leases) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]      
2020 $ 41.5    
2021 39.2    
2022 28.0    
2023 22.3    
2024 18.8    
Thereafter 40.9    
Total minimum lease commitments 190.7    
Adjustment for discount to present value $ 18.6    
Weighted-average remaining lease term (in years) 6 years    
Operating lease expense $ 42.5 $ 42.4 $ 33.9
Variable operating lease charges 16.2 14.9  
Payments on operating leases $ 47.4 45.3  
Operating Lease, Weighted Average Discount Rate, Percent 3.30%    
Total lease liabilities $ 172.1 $ 177.6  
Minimum [Member]      
Lessee, Operating Lease, Liability, Payment, Due [Abstract]      
Lessee, Operating Lease, Term of Contract 1 year    
Maximum [Member]      
Lessee, Operating Lease, Liability, Payment, Due [Abstract]      
Lessee, Operating Lease, Term of Contract 12 years    
v3.22.0.1
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
May 14, 2021
May 31, 2011
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized stock-based compensation expense     $ 63.8
Expected amortization period (months)     33 months
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 December 31
(in millions)2021
Shares available for future grants3.2 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized 1,050,000    
Stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration period     10 years
Restricted stock units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period     4 years
Unrecognized stock-based compensation expense     $ 54.0
Expected amortization period (months)     34 months
2004 Stock Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock option granted   86,106  
Fair value per share (in dollars per share)     $ 23.81
Non-employee director [Member] | Stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period     3 years
Non-employee director [Member] | Restricted stock units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period     3 years
Employee [Member] | Stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period     4 years
PitchBook Plan [Member] | Performance share awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period     1 year
v3.22.0.1
Stock-Based Compensation (Shares Available for Future Grants) (Details)
shares in Millions
Dec. 31, 2021
shares
Share-based Payment Arrangement [Abstract]  
Shares available for future grants 3.2
v3.22.0.1
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 41.9 $ 36.6 $ 44.4
Income tax benefit related to the stock-based compensation expense 8.9 6.7 10.0
Restricted stock units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 25.8 22.2 20.4
Performance share awards [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 10.6 10.2 20.6
Market Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 5.5 $ 4.2 $ 3.4
v3.22.0.1
Stock-Based Compensation (Unrecognized Stock-Based Compensation Expense) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 63.8
Expected amortization period (months) 33 months
Restricted stock units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 54.0
Expected amortization period (months) 34 months
Market Stock Units [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Income tax benefit related to the stock-based compensation expense $ 9.8
Expected amortization period (months) 26 months
v3.22.0.1
Stock-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted stock units [Member] - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
RSUs Outstanding, Beginning Balance 436,767 459,445 527,465
RSUs Outstanding, Beginning Balance, Weighted Average Grant Date Value per RSU $ 132.68 $ 108.61 $ 89.53
Granted 187,916 245,078 233,618
Granted, Weighted Average Grant Date Value per RSU $ 246.85 $ 153.01 $ 135.67
Vested (229,063) (240,297) (269,917)
Vested, Weighted Average Grant Date Value per RSU $ 141.04 $ 108.94 $ 95.67
Forfeited (23,910) (27,459) (31,721)
Forfeited, Weighted Average Grant Date Value per RSU $ 166.99 $ 119.22 $ 100.71
RSUs Outstanding, Ending Balance 371,710 436,767 459,445
RSUs Outstanding, Ending Balance, Weighted Average Grant Date Value per RSU $ 183.04 $ 132.68 $ 108.61
v3.22.0.1
Stock-Based Compensation (Assumptions Used to Estimate Fair Value of Market Units (Details) - Market Stock Units [Member]
Nov. 15, 2021
May 15, 2021
Nov. 15, 2020
May 15, 2020
Nov. 15, 2019
May 15, 2019
Nov. 15, 2018
May 15, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Expected volatility 26.90% 28.00% 26.90% 25.40% 21.00% 20.30% 19.60% 17.40%
Dividend yield 0.40% 0.51% 0.58% 0.83% 0.72% 0.84% 0.83% 0.89%
Risk-free interest rate 0.85% 0.33% 0.23% 0.20% 1.59% 2.17% 2.92% 2.70%
v3.22.0.1
Stock-Based Compensation (Market Units) (Details) - Market Stock Units [Member]
12 Months Ended
Dec. 31, 2021
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Market stock units granted (in shares) 31,114
Weighted average fair value per award (in dollars per share) | $ / shares $ 181.49
Number of target market stock units outstanding (in shares) 108,322
v3.22.0.1
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) - Stock options [Member]
12 Months Ended
Dec. 31, 2021
Assumptions for Black-Scholes Option Pricing Model [Line Items]  
Expected life (years): 7 years 4 months 24 days
Expected volatility 35.10%
Dividend yield 0.35%
Risk-free interest rate 2.87%
v3.22.0.1
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Option exercise price grouping [Member]      
Intrinsic Value of Options Exercised [Abstract]      
Intrinsic value of options exercised $ 0.7 $ 3.9 $ 0.4
Option grants excluding options granted at discount [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Beginning Balance, Options, Outstanding, Underlying Shares 3,600 37,269 40,685
Granted, Underlying Shares 0 0 0
Canceled, Underlying Shares 0 0 0
Exercised, Underlying Shares (3,600) (33,669) (3,416)
Ending Balance, Options, Outstanding, Underlying Shares 0 3,600 37,269
Options, Weighted Average Exercise Price [Abstract]      
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
Granted, Weighted Average Exercise Price 0 0 0
Canceled, Weighted Average Exercise Price 0 0 0
Expected exercise price: 57.28 57.28 57.28
Ending Balance, Options, Outstanding, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract]      
Options exercisable - end of year, Underlying Shares 0 3,600 37,269
Options exercisable - end of year, Weighted Average Exercise Price $ 57.28 $ 57.28 $ 57.28
v3.22.0.1
Stock-Based Compensation (Additional Information on Options) (Details) - Range One [Member]
12 Months Ended
Dec. 31, 2021
$ / shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Expected exercise price: $ 57.28
Exercise price range, lower range limit 57.28
Exercise price range, upper range limit 59.35
Options Outstanding, Weighted Average Exercise Price, Vested or Expected to Vest $ 57.28
v3.22.0.1
Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 41.9 $ 36.6 $ 44.4
Cost of revenue [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 16.5 13.5 12.9
Selling and marketing expense [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 4.4 4.6 5.6
General and administrative expense [Member]      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 21.0 $ 18.5 $ 25.9
v3.22.0.1
Stock-based Compensation (PitchBook Bonus Plan) (Details) - Performance share awards [Member]
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
shares
PitchBook Plan, Renewal For 2020 To 2022 [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares available for issuance, aggregate target value $ 30.0
Target value of shares expected to be granted in year one 7.5
Target value of shares expected to be granted in year two 7.5
Target value of shares expected to be granted in year three $ 15.0
PitchBook Plan [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 1 year
Target performance share awards granted | shares 35,201
Weighted average fair value per award | $ / shares $ 213.04
Number of shares that will be issued based on final 2021 performance levels | shares 48,395
Unamortized expense, based on current performance levels (in millions) $ 0.0
v3.22.0.1
Defined Contribution Plan (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Contribution Plan [Abstract]      
401(k) matching contributions $ 16,200,000 $ 14,500,000 $ 12,000,000.0
Matching contribution to 401(k) for every dollar $ 0.75 $ 0.75 $ 0.75
Matching contribution percent to employee's contribution in pay period 7.00% 7.00% 7.00%
v3.22.0.1
Income Taxes (Schedule of Income Tax Expense and Effective Tax Rate) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Income before income taxes and equity in net income (loss) of unconsolidated entities $ 250.5 $ 283.0 $ 198.5
Equity in net income (loss) of unconsolidated entities 5.4 0.3 (0.9)
Income loss from continuing operations before income taxes domestic and foreign 255.9 283.3 197.6
Income tax expense $ 62.6 $ 59.7 $ 45.6
Effective income tax rate 24.50% 21.10% 23.10%
v3.22.0.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Contingency [Line Items]      
Effective income tax rate (percent) 24.50% 21.10% 23.10%
Effective income tax rate, increase (decrease) from prior year (percent) 3.40% (2.00%)  
Accumulated undistributed earnings from foreign subsidiaries $ 232.3    
Foreign earnings repatriated 45.8    
Operating loss carryforwards 1.2 $ 0.6  
Unrecognized tax benefits included in current liabilities 7.2 7.6  
Unrecognized tax benefits included in non-current liabilities 5.2 5.1  
Unrecognized tax benefits, period increase (decrease) 1.2    
Result of tax position taken during period 1.2    
Increase in income tax expense 1.1    
Reductions resulting from settlements and lapse of statute of limitations 1.5    
Decrease of unrecognized tax benefits relating to settlements with tax authorities 1.5    
Reductions resulting from settlements and lapse statute of limitations, tax effect 1.4    
Decreases relating to settlements with tax authorities 0.0 0.0  
Reductions as a result of lapse of the applicable statute of limitations 1.5 0.1  
Gross unrecognized tax benefits 11.4 11.8 $ 12.6
Decrease in income tax expense upon recognition of gross unrecognized tax benefits 11.2    
Foreign Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 31.8 33.3  
Operating loss carryforwards, not subject to valuation allowances 14.2 24.5  
Subject to Expiration Date [Member] | Domestic Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 0.3 0.6  
Subject to Expiration Date [Member] | Foreign Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 10.2 $ 21.7  
Valuation Allowance | Foreign Tax Authority [Member]      
Income Tax Contingency [Line Items]      
Operating Loss Carryforwards, Valuation Allowance $ 17.6    
v3.22.0.1
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Examination [Line Items]      
Income tax expense at U.S. federal rate $ 53.7 $ 59.5 $ 41.5
Income tax expense at U.S. federal rate, percent 21.00% 21.00% 21.00%
State income taxes, net of federal income tax benefit $ 10.7 $ 9.5 $ 7.5
State income taxes, net of federal income tax benefit, percent 4.20% 3.40% 3.80%
Stock-based compensation activity $ (7.2) $ (4.9) $ (2.2)
Stock-based compensation activity, percent (2.80%) (1.70%) (1.10%)
Equity in net income of unconsolidated subsidiaries (including holding gains upon acquisition) $ 0.2 $ (13.8) $ 0.3
Holding gain upon acquisition of additional ownership of equity method investments, percent 0.10% (4.90%) 0.20%
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent 2.00% 2.70% 0.00%
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount $ 5.1 $ 7.6 $ 0.0
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses $ 0.1 $ 2.7 $ (2.1)
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses, percent 0.00% 1.00% (1.10%)
Difference between U.S. federal statutory and foreign tax rates $ (2.6) $ (0.1) $ 1.1
Difference between U.S. federal statutory and foreign tax rates, percent (1.00%) 0.00% 0.60%
Foreign tax provisions (GILTI, FDII, and BEAT) $ (0.7) $ (2.7) $ (1.4)
Foreign tax provisions (GILTI, FDII, and BEAT), percent (0.30%) (1.00%) (0.70%)
Change in unrecognized tax benefits $ (0.2) $ 1.2 $ (0.9)
Changes in unrecognized tax benefits, percent (0.10%) 0.40% (0.50%)
Other tax credits $ (2.1) $ (2.2) $ (2.2)
Other tax credits, percent (0.80%) (0.80%) (1.10%)
Other - net $ 5.6 $ 2.9 $ 4.0
Other - net, percent 2.20% 1.00% 2.00%
Income tax expense $ 62.6 $ 59.7 $ 45.6
Income tax expense, percent 24.50% 21.10% 23.10%
v3.22.0.1
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Federal $ 38.3 $ 31.5 $ 28.3
State 13.6 11.7 9.4
Non-U.S. 23.0 23.0 14.0
Current tax expense 74.9 66.2 51.7
Federal (2.8) 1.2 0.2
State (0.3) 0.4 0.0
Non-U.S. (9.2) (8.1) (6.3)
Deferred tax expense (benefit) (12.3) (6.5) (6.1)
Income tax expense $ 62.6 $ 59.7 $ 45.6
v3.22.0.1
Income Taxes (Schedule of Income before Income Taxes and Equity in Net Income of Unconsolidated Entities) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. $ 218.3 $ 197.4 $ 159.7
Non-U.S. 32.2 85.6 38.8
Income before income taxes and equity in net income (loss) of unconsolidated entities $ 250.5 $ 283.0 $ 198.5
v3.22.0.1
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Stock-based compensation expense $ 3.7 $ 2.9
Accrued liabilities 24.8 20.6
Deferred revenue 7.9 6.7
Net operating loss carryforwards - U.S. 0.3 0.1
Net operating loss carryforwards - Non-U.S. 8.1 7.9
Deferred Tax Liabilities, Deferred Expense, Capitalized Research and Development Costs 1.3 0.0
Deferred royalty revenue 0.2 0.2
Allowance for doubtful accounts 1.5 1.4
Lease liabilities 29.7 32.8
Other 0.7 0.7
Total deferred tax assets 78.2 73.3
Deferred tax liabilities:    
Acquired intangible assets (84.7) (93.9)
Property, equipment and capitalized software (30.8) (25.1)
Deferred Tax Liabilities, Leasing Arrangements (23.4) (25.9)
Unrealized exchange gains, net (1.4) (1.3)
Prepaid expenses (16.5) (12.1)
Investments in unconsolidated entities (5.3) (6.0)
Deferred Tax Liabilities, Foreign Dividends Withholding Tax 0.4 3.0
Total deferred tax liabilities 162.5 167.3
Net deferred tax liability before valuation allowance 84.3 94.0
Valuation allowance (4.6) (2.3)
Total deferred tax liabilities $ (88.9) $ (96.3)
v3.22.0.1
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Deferred tax asset, net $ 12.8 $ 12.6
Deferred tax liability, net 101.7 108.9
Deferred tax liability, net $ (88.9) $ (96.3)
v3.22.0.1
Income Taxes (Summary of Operating Loss Carryforwards - U.S and Non-U.S) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards $ 1.2 $ 0.6
Non-U.S. [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 31.8 33.3
Operating loss carryforwards, not subject to valuation allowances 14.2 24.5
Non-U.S. [Member] | Subject to Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 10.2 21.7
Non-U.S. [Member] | No Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 21.6 11.6
U.S [Member] | Subject to Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards 0.3 0.6
U.S [Member] | No Expiration Date [Member]    
Operating Loss Carryforwards [Line Items]    
Operating loss carryforwards $ 0.9 $ 0.0
v3.22.0.1
Income Taxes (Accounting for Uncertainty in Tax Positions) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Gross unrecognized tax benefits - beginning of the year $ 11.8 $ 12.6
Increases as a resulting of tax positions taken during a prior-year period 0.2 0.5
Decreases as a result of tax positions taken during a prior-year period (0.2) (2.5)
Increases as a result of tax positions taken during the current period 1.1 1.3
Decreases relating to settlements with tax authorities 0.0 0.0
Reductions as a result of lapse of the applicable statute of limitations (1.5) (0.1)
Gross unrecognized tax benefits - end of the year $ 11.4 $ 11.8
v3.22.0.1
Income Taxes (Summary of Income Tax Examinations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Liabilities for interest and penalties $ 1.4 $ 1.4
v3.22.0.1
Contingencies Settlement (Details)
$ in Millions
12 Months Ended
Dec. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Payments for Legal Settlements $ 1.0
v3.22.0.1
Share Repurchase Program (Details)
12 Months Ended
Dec. 31, 2021
USD ($)
shares
Equity [Abstract]  
Stock repurchase program, authorized amount $ 400,000,000
Stock repurchase program, remaining authorized repurchase amount $ 398,700,000
Stock Repurchased During Period, Shares | shares 4,900
Stock Repurchased During Period, Value $ 1,300,000
v3.22.0.1
Recent Accounting Pronouncements Recent Accounting Pronouncements (Recently Adopted Accounting Pronouncements) (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating lease assets $ 149.2 $ 147.7
Operating lease liabilities $ 172.1 $ 177.6
v3.22.0.1
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Revenue $ 1,699.3 $ 1,389.5 $ 1,179.0
Total operating expense 1,442.3 1,174.3 989.4
Operating income 257.0 215.2 189.6
Non-operating income (expense), net (6.5) 67.8 8.9
Income before income taxes and equity in net income (loss) of unconsolidated entities 250.5 283.0 198.5
Equity in net income (loss) of unconsolidated entities 5.4 0.3 (0.9)
Income tax expense 62.6 59.7 45.6
Consolidated net income $ 193.3 $ 223.6 $ 152.0
Dividends Per Common Share: [Abstract]      
Common stock, dividends, per share, declared (in dollars per share) $ 1.31 $ 1.22 $ 1.14
Dividends paid per common share (in dollars per share) $ 1.26 $ 1.20 $ 1.12
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]      
Weighted average common shares outstanding - basic (in shares) 43.0 42.9 42.7
Weighted average common shares outstanding - diluted (in shares) 43.4 43.2 43.2