Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information Abstract | ' | ' |
Entity Registrant Name | 'MORNINGSTAR, INC. | ' |
Entity Central Index Key | '0001289419 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 45,953,013 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Revenue | $173,482 | $160,952 | $517,766 | $487,679 | ||
Operating expense (1): | ' | ' | ' | ' | ||
Cost of revenue | 72,422 | [1] | 60,568 | [1] | 198,499 | 186,143 |
Sales and marketing | 22,774 | [1] | 25,732 | [1] | 78,789 | 81,431 |
General and administrative | 22,416 | [1] | 23,966 | [1] | 77,863 | 77,090 |
Depreciation and amortization | 11,257 | [1] | 10,822 | [1] | 33,858 | 31,616 |
Total operating expense | 128,869 | [1] | 121,088 | [1] | 389,009 | 376,280 |
Operating income (loss) | 44,613 | 39,864 | 128,757 | 111,399 | ||
Non-operating income (expense): | ' | ' | ' | ' | ||
Interest income (expense), net | 630 | 1,719 | 2,035 | 3,848 | ||
Gain (loss) on sale of investments reclassified from other comprehensive income | -42 | -4 | 1,106 | -52 | ||
Equity Method Investments Holding Gain | -78 | 0 | 3,635 | 0 | ||
Other income (expense), net | 261 | 165 | -1,949 | -262 | ||
Non-operating income (expense), net | 771 | 1,880 | 4,827 | 3,534 | ||
Income before income taxes and equity in net income of unconsolidated entities | 45,384 | 41,744 | 133,584 | 114,933 | ||
Income tax expense | 14,265 | 15,186 | 42,647 | 41,441 | ||
Equity in net income of unconsolidated entities | 315 | 478 | 1,172 | 1,541 | ||
Consolidated net income | 31,434 | 27,036 | 92,109 | 75,033 | ||
Net (income) loss attributable to the noncontrolling interest | 29 | 34 | 93 | 62 | ||
Net income attributable to Morningstar, Inc. | $31,463 | $27,070 | $92,202 | $75,095 | ||
Net income per share attributable to: | ' | ' | ' | ' | ||
Basic (in dollars per share) | $0.68 | $0.56 | $1.99 | $1.53 | ||
Diluted (in dollars per share) | $0.68 | $0.56 | $1.98 | $1.51 | ||
Dividends declared per common share | $0 | $0.10 | $0.25 | $0.30 | ||
Dividends paid per common share | $0.13 | $0.10 | $0.25 | $0.30 | ||
Weighted average shares outstanding: | ' | ' | ' | ' | ||
Basic (in shares) | 46,080 | 47,975 | 46,293 | 49,028 | ||
Diluted (in shares) | 46,519 | 48,481 | 46,635 | 49,664 | ||
[1] | Three months ended September 30 Nine months ended September 30 2013 2012 2013 2012(1) Includes stock-based compensation expense of: Cost of revenue $1,471 $1,619 $4,863 $4,739Sales and marketing 456 493 1,490 1,433General and administrative 1,489 1,882 4,800 5,422Total stock-based compensation expense $3,416 $3,994 $11,153 $11,594 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,416 | $3,994 | $11,153 | $11,594 |
Cost of Revenue | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,471 | 1,619 | 4,863 | 4,739 |
Sales and Marketing | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 456 | 493 | 1,490 | 1,433 |
General and Administrative | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,489 | $1,882 | $4,800 | $5,422 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated net income | $31,434 | $27,036 | $92,109 | $75,033 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 11,247 | 7,375 | -4,952 | 5,597 |
Unrealized gains (losses) on securities: | ' | ' | ' | ' |
Unrealized gains (losses) on available-for-sale investments, net of income tax of $605 | 774 | 1,026 | 1,774 | 1,394 |
Reclassification of adjustments for losses (gains) included in net income, net of income tax of $399 | 28 | 0 | -706 | 33 |
Other comprehensive income (loss), net | 12,049 | 8,401 | -3,884 | 7,024 |
Comprehensive income (loss), net | 43,483 | 35,437 | 88,225 | 82,057 |
Comprehensive (income) loss attributable to noncontrolling interest | 40 | 16 | 246 | 77 |
Comprehensive income attributable to Morningstar, Inc. | $43,523 | $35,453 | $88,471 | $82,134 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $176,959 | $163,889 |
Investments | 165,918 | 157,529 |
Accounts receivable, less allowance of $1,005 and $569, respectively | 113,688 | 114,361 |
Deferred tax asset, net | 3,155 | 3,741 |
Income tax receivable, net | 3,451 | 14,267 |
Other | 26,229 | 20,823 |
Total current assets | 489,400 | 474,610 |
Property, equipment, and capitalized software, net | 99,007 | 84,022 |
Investments in unconsolidated entities | 38,376 | 35,305 |
Goodwill | 326,741 | 320,845 |
Intangible assets, net | 109,269 | 116,732 |
Other assets | 11,357 | 10,438 |
Total assets | 1,074,150 | 1,041,952 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 35,984 | 43,777 |
Accrued compensation | 60,745 | 67,317 |
Deferred revenue | 151,850 | 146,015 |
Other | 6,760 | 256 |
Total current liabilities | 255,339 | 257,365 |
Accrued compensation | 8,467 | 8,281 |
Deferred tax liability, net | 22,188 | 21,583 |
Deferred rent | 13,966 | 15,368 |
Other long-term liabilities | 15,714 | 12,460 |
Total liabilities | 315,674 | 315,057 |
Morningstar, Inc. shareholders' equity: | ' | ' |
Common stock, no par value, 200,000,000 shares authorized, of which 46,068,303 and 46,541,571 shares were outstanding, respectively | 5 | 5 |
Treasury stock at cost, 6,024,254 shares and 5,214,070 shares, respectively | -358,616 | -301,839 |
Additional paid-in capital | 533,146 | 521,285 |
Retained earnings | 576,828 | 496,354 |
Accumulated other comprehensive income: | ' | ' |
Currency translation adjustment | 4,126 | 8,925 |
Unrealized gain on available-for-sale securities | 1,855 | 787 |
Total accumulated other comprehensive income | 5,981 | 9,712 |
Total Morningstar, Inc. shareholders' equity | 757,344 | 725,517 |
Noncontrolling interest | 1,132 | 1,378 |
Total equity | 758,476 | 726,895 |
Total liabilities and equity | $1,074,150 | $1,041,952 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $1,005 | $569 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 46,068,303 | 46,541,571 |
Treasury Stock, Shares | 6,024,254 | 5,214,070 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | $726,895 | $5 | ($301,839) | $521,285 | $496,354 | $9,712 | $1,378 |
Balance (in shares) at Dec. 31, 2012 | 46,541,571 | 46,541,571 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) | 92,109 | ' | ' | ' | 92,202 | ' | -93 |
Other Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) on available-for-sale investments, net of income tax of $605 | 1,774 | ' | ' | ' | ' | 1,774 | 0 |
Reclassification of adjustments for losses (gains) included in net income, net of income tax of $399 | -706 | ' | ' | ' | ' | -706 | 0 |
Foreign currency translation adjustment, net | -4,952 | ' | ' | ' | ' | -4,799 | -153 |
Other comprehensive income (loss), net | -3,884 | ' | ' | ' | ' | -3,731 | -153 |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | -2,104 | 0 | 1,350 | -3,454 | ' | ' | ' |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | ' | 356,023 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation - restricted stock units | 10,493 | ' | ' | 10,493 | ' | ' | ' |
Stock-based compensation - restricted stock | 291 | ' | ' | 291 | ' | ' | ' |
Stock-based compensation - stock options | 369 | ' | ' | 369 | ' | ' | ' |
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 4,093 | ' | ' | 4,093 | ' | ' | ' |
Common share repurchased | -58,127 | ' | -58,127 | ' | ' | ' | ' |
Common share repurchased (in shares) | ' | -829,291 | ' | ' | ' | ' | ' |
Dividends declared - common shares outstanding | -11,578 | ' | ' | ' | -11,578 | ' | ' |
Dividends declared - restricted stock units | -81 | ' | ' | 69 | -150 | ' | ' |
Balance at Sep. 30, 2013 | $758,476 | $5 | ($358,616) | $533,146 | $576,828 | $5,981 | $1,132 |
Balance (in shares) at Sep. 30, 2013 | 46,068,303 | 46,068,303 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Equity (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Statement of Stockholders' Equity [Abstract] | ' |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $605 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $399 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Consolidated net income | $92,109 | $75,033 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ' | ' |
Depreciation and amortization | 33,858 | 31,616 |
Deferred income taxes | -2,315 | 492 |
Stock-based compensation expense | 11,153 | 11,594 |
Provision for bad debt | 730 | 990 |
Equity in net income of unconsolidated entities | -1,172 | -1,541 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | -4,093 | -5,007 |
Holding gain upon acquisition of additional ownership of equity method investments | -3,635 | 0 |
Other, net | 12 | 342 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | -1,249 | -6,569 |
Other assets | -2,887 | -3,551 |
Accounts payable and accrued liabilities | -3,151 | -4,316 |
Accrued compensation | -8,404 | -20,851 |
Income taxes- current | 17,205 | 7,220 |
Deferred revenue | 6,004 | 7,684 |
Deferred rent | -1,273 | 291 |
Other liabilities | -679 | -1,111 |
Cash provided by operating activities | 132,213 | 92,316 |
Investing activities | ' | ' |
Purchases of investments | -113,824 | -134,929 |
Proceeds from maturities and sales of investments | 108,599 | 216,350 |
Capital expenditures | -27,950 | -22,876 |
Acquisitions, net of cash acquired | -11,079 | 0 |
Proceeds from Divestiture of Businesses | 957 | 0 |
Purchases of equity and cost method investments | -2,751 | -10,304 |
Other, net | 432 | -4 |
Cash used for investing activities | -45,616 | 48,237 |
Financing activities | ' | ' |
Proceeds from stock-option exercises, net | 3,172 | 6,752 |
Employee taxes withheld for restricted stock units | -5,276 | -3,992 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 4,093 | 5,007 |
Common shares repurchased | -62,794 | -183,698 |
Dividends paid | -11,657 | -14,867 |
Other, net | -54 | -18 |
Cash provided by (used for) financing activities | -72,516 | -190,816 |
Effect of exchange rate changes on cash and cash equivalents | -1,011 | 2,007 |
Net increase (decrease) in cash and cash equivalents | 13,070 | -48,256 |
Cash and cash equivalents-beginning of period | 163,889 | 200,437 |
Cash and cash equivalents-end of period | 176,959 | 152,181 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 27,700 | 33,163 |
Supplemental information of non-cash investing and financing activities: | ' | ' |
Unrealized Gain (Loss) on Available For Sale Investments | 1,675 | 2,221 |
NonCashFinancingArrangement | $4,860 | $0 |
Basis_of_Presentation_of_Inter
Basis of Presentation of Interim Financial Information | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation of Interim Financial Information | ' |
Basis of Presentation of Interim Financial Information | |
The accompanying condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the Company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 28, 2013. | |
Certain prior period amounts have been reclassified to conform to our current period's presentation. We now include development expense in the cost of revenue category, which we previously referred to as cost of goods sold. We have reclassified development expense to include it in cost of revenue for all periods presented. | |
Separately, as a result of our recent reorganization (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. For the three and nine months ended September 30, 2013 as compared with the corresponding periods in 2012, we estimate that changes related to our more centralized organizational structure added approximately $7 million of compensation expense to cost of revenue, and reduced the compensation expense in our sales and marketing and general and administrative expense categories by approximately $4 million and $3 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented. | |
The acronyms that appear in the Notes to our Unaudited Condensed Consolidated Financial Statements refer to the following: | |
ASC: Accounting Standards Codification | |
ASU: Accounting Standards Update | |
FASB: Financial Accounting Standards Board | |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
Increased Ownership Interest in Morningstar Sweden AB | |||||||||||||||||||||||||||||
In May 2013, we acquired an additional 76% interest in Morningstar Sweden AB (Morningstar Sweden), increasing our ownership to 100% from 24%. Morningstar’s main offerings in Sweden include Morningstar Direct, Morningstar Data, Integrated Web Tools, and Morningstar.se, an investment information website for individual investors that provides fund and ETF data, portfolio tools, and market analysis. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on May 2, 2013. | |||||||||||||||||||||||||||||
Morningstar Sweden's total estimated fair value of $18,513,000 includes $14,554,000 in cash paid to acquire the remaining 76% interest in Morningstar Sweden and $3,959,000 related to the 24% of Morningstar Sweden we previously held. We determined the fair value of the previously held 24% investment independent of the acquired controlling interest by applying a minority interest discount based on analysis of comparable transactions. Accordingly, we recorded a non-cash holding gain of $3,635,000. The gain is included in non-operating income in our Unaudited Condensed Consolidated Statement of Income. | |||||||||||||||||||||||||||||
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,472 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 519 | ||||||||||||||||||||||||||||
Other non-current assets | 244 | ||||||||||||||||||||||||||||
Intangible assets | 9,700 | ||||||||||||||||||||||||||||
Goodwill | 9,084 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (1,043 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
The allocation includes acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Total intangible assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
We recognized a deferred tax liability of $2,272,000 mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. | |||||||||||||||||||||||||||||
Goodwill of $9,084,000 represents the premium over the fair value of the net tangible and intangible assets acquired with this acquisition. We paid this premium for a number of reasons, including the opportunity to offer Morningstar's full suite of products and services to investors in Sweden and further leverage Morningstar's global reach, investment databases, and technology expertise. | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from December 31, 2012 to September 30, 2013: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 9,084 | ||||||||||||||||||||||||||||
Other, primarily foreign currency translation | (3,188 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 326,741 | |||||||||||||||||||||||||||
We did not record any significant impairment losses in the first nine months of 2013 or 2012. We perform our annual impairment reviews in the fourth quarter. | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
$0 | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 29,799 | $ | (22,778 | ) | $ | 7,021 | 9 | $ | 30,621 | $ | (21,527 | ) | $ | 9,094 | 9 | |||||||||||||
Customer-related assets | 141,824 | (71,343 | ) | 70,481 | 12 | 132,798 | (63,005 | ) | 69,793 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (105 | ) | 135 | 20 | 240 | (96 | ) | 144 | 20 | |||||||||||||||||||
Technology-based assets | 80,553 | (49,017 | ) | 31,536 | 9 | 81,333 | (43,809 | ) | 37,524 | 9 | |||||||||||||||||||
Non-competition agreement | 1,692 | (1,596 | ) | 96 | 4 | 1,765 | (1,588 | ) | 177 | 4 | |||||||||||||||||||
Total intangible assets | $ | 254,108 | $ | (144,839 | ) | $ | 109,269 | 10 | $ | 246,757 | $ | (130,025 | ) | $ | 116,732 | 10 | |||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Amortization expense | $ | 5,287 | $ | 5,941 | $ | 16,249 | $ | 17,972 | |||||||||||||||||||||
We amortize intangible assets using the straight-line method over their expected economic useful lives. | |||||||||||||||||||||||||||||
We expect intangible amortization expense for 2013 and subsequent years as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2013 | $ | 21,510 | |||||||||||||||||||||||||||
2014 | 20,507 | ||||||||||||||||||||||||||||
2015 | 19,687 | ||||||||||||||||||||||||||||
2016 | 15,118 | ||||||||||||||||||||||||||||
2017 | 10,579 | ||||||||||||||||||||||||||||
2018 | 8,593 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
We discuss our significant accounting policies in Note 3 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on February 28, 2013. | |
In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). The amended guidance requires us to show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement where net income is presented. The adoption of ASU No. 2013-2 did not have a material effect on our consolidated financial statements. | |
Furthermore, beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. |
Income_Per_Share
Income Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
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 income per share: | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net income per share attributable to Morningstar, Inc.: | ||||||||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 31,463 | $ | 27,070 | $ | 92,202 | $ | 75,095 | ||||||||||
Less: Distributed earnings available to participating securities | — | (12 | ) | (5 | ) | (39 | ) | |||||||||||
Less: Undistributed earnings available to participating securities | (11 | ) | (53 | ) | (29 | ) | (144 | ) | ||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,912 | ||||||||||
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 | ||||||||||||||
Basic net income per share attributable to Morningstar, Inc. | $ | 0.68 | $ | 0.56 | $ | 1.99 | $ | 1.53 | ||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | ||||||||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,912 | ||||||||||
Add: Undistributed earnings allocated to participating securities | 11 | 53 | 29 | 144 | ||||||||||||||
Less: Undistributed earnings reallocated to participating securities | (11 | ) | (53 | ) | (29 | ) | (142 | ) | ||||||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,914 | ||||||||||
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 | ||||||||||||||
Net effect of dilutive stock options and restricted stock units | 439 | 506 | 342 | 636 | ||||||||||||||
Weighted average common shares outstanding for computing diluted income per share | 46,519 | 48,481 | 46,635 | 49,664 | ||||||||||||||
Diluted net income per share attributable to Morningstar, Inc. | $ | 0.68 | $ | 0.56 | $ | 1.98 | $ | 1.51 | ||||||||||
The following table shows the number of weighted average stock options, restricted stock units, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average stock options | — | 9 | — | 12 | ||||||||||||||
Weighted average restricted stock units | 1 | — | 19 | 81 | ||||||||||||||
Weighted average restricted stock | — | — | — | — | ||||||||||||||
Total | 1 | 9 | 19 | 93 | ||||||||||||||
These stock options and restricted stock units could be included in the calculation in the future. |
Segment_and_Geographical_Area_
Segment and Geographical Area Information | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||
Segment and Geographical Area Information | ' | |||||||||||||||||
Segment, Enterprise-Wide, and Geographical Area Information | ||||||||||||||||||
Segment Information | ||||||||||||||||||
Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | ||||||||||||||||||
Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||
The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2012. We evaluate the performance of our reporting segment based on revenue and operating income. | ||||||||||||||||||
Products and Services Information | ||||||||||||||||||
We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group. | ||||||||||||||||||
External revenue by product group | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Investment information | $ | 137,216 | $ | 128,392 | $ | 412,332 | $ | 388,468 | ||||||||||
Investment management | 36,266 | 32,560 | 105,434 | 99,211 | ||||||||||||||
Consolidated revenue | $ | 173,482 | $ | 160,952 | $ | 517,766 | $ | 487,679 | ||||||||||
Geographical Area Information | ||||||||||||||||||
The tables below summarize our revenue and long-lived assets by geographical area. | ||||||||||||||||||
External revenue by geographical area | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 124,998 | $ | 114,021 | $ | 372,746 | $ | 346,442 | ||||||||||
United Kingdom | 14,148 | 13,711 | 41,316 | 42,160 | ||||||||||||||
Europe, excluding the United Kingdom | 14,666 | 11,643 | 41,826 | 35,980 | ||||||||||||||
Australia | 8,041 | 10,090 | 26,569 | 29,230 | ||||||||||||||
Canada | 7,603 | 7,605 | 23,151 | 22,351 | ||||||||||||||
Asia, excluding Japan | 2,580 | 2,420 | 7,836 | 7,156 | ||||||||||||||
Japan | 783 | 924 | 2,400 | 2,889 | ||||||||||||||
Other | 663 | 538 | 1,922 | 1,471 | ||||||||||||||
Total International | 48,484 | 46,931 | 145,020 | 141,237 | ||||||||||||||
Consolidated revenue | $ | 173,482 | $ | 160,952 | $ | 517,766 | $ | 487,679 | ||||||||||
Long-lived assets by geographical area | ||||||||||||||||||
As of September 30 | As of December 31 | |||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||
United States | $ | 77,713 | $ | 60,371 | ||||||||||||||
United Kingdom | 6,611 | 7,435 | ||||||||||||||||
Europe, excluding the United Kingdom | 2,061 | 2,356 | ||||||||||||||||
Australia | 1,184 | 1,402 | ||||||||||||||||
Canada | 1,400 | 1,773 | ||||||||||||||||
Asia, excluding Japan | 9,863 | 10,445 | ||||||||||||||||
Japan | 45 | 84 | ||||||||||||||||
Other | 130 | 156 | ||||||||||||||||
Total International | 21,294 | 23,651 | ||||||||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 99,007 | $ | 84,022 | ||||||||||||||
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | |||||||||||||||||||||||||||||||||
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: | |||||||||||||||||||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 129,316 | $ | 125,786 | |||||||||||||||||||||||||||||
Held-to-maturity | 29,307 | 26,357 | |||||||||||||||||||||||||||||||
Trading securities | 7,295 | 5,386 | |||||||||||||||||||||||||||||||
Total | $ | 165,918 | $ | 157,529 | |||||||||||||||||||||||||||||
The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity: | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 28,515 | $ | 8 | $ | (24 | ) | $ | 28,499 | $ | 40,669 | $ | 29 | $ | (608 | ) | $ | 40,090 | |||||||||||||||
Corporate bonds | 67,763 | 13 | (223 | ) | 67,553 | 49,339 | 36 | (292 | ) | 49,083 | |||||||||||||||||||||||
Foreign obligations | 1,297 | — | (16 | ) | 1,281 | 2,437 | 1 | (19 | ) | 2,419 | |||||||||||||||||||||||
Commercial paper | 9,986 | — | (1 | ) | 9,985 | 2,000 | — | — | 2,000 | ||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,226 | 1,001 | (156 | ) | 9,071 | 19,613 | 1,359 | (323 | ) | 20,649 | |||||||||||||||||||||||
Mutual funds | 10,624 | 2,395 | (92 | ) | 12,927 | 10,499 | 1,092 | (46 | ) | 11,545 | |||||||||||||||||||||||
Total | $ | 126,411 | $ | 3,417 | $ | (512 | ) | $ | 129,316 | $ | 124,557 | $ | 2,517 | $ | (1,288 | ) | $ | 125,786 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 29,307 | $ | — | $ | — | $ | 29,307 | $ | 26,357 | $ | — | $ | — | $ | 26,357 | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, investments with unrealized losses for greater than a 12-month period were not material to the Condensed Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. | |||||||||||||||||||||||||||||||||
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of September 30, 2013 and December 31, 2012. The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties. | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 53,470 | $ | 53,308 | $ | 87,599 | $ | 86,784 | |||||||||||||||||||||||||
Due in one to two years | 54,091 | 54,010 | 6,846 | 6,808 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 18,850 | 21,998 | 30,112 | 32,194 | |||||||||||||||||||||||||||||
Total | $ | 126,411 | $ | 129,316 | $ | 124,557 | $ | 125,786 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 29,303 | $ | 29,303 | $ | 26,352 | $ | 26,352 | |||||||||||||||||||||||||
Due in one to three years | 4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||
Total | $ | 29,307 | $ | 29,307 | $ | 26,357 | $ | 26,357 | |||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, held-to-maturity investments included a $1,500,000 certificate of deposit held primarily as collateral against bank guarantees for our office leases, primarily in Australia. | |||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Realized gains | 94 | 219 | $ | 2,320 | $ | 689 | |||||||||||||||||||||||||||
Realized losses | (136 | ) | (222 | ) | (1,214 | ) | (741 | ) | |||||||||||||||||||||||||
Realized gains (losses), net | (42 | ) | (3 | ) | $ | 1,106 | $ | (52 | ) | ||||||||||||||||||||||||
We determine realized gains and losses using the specific identification method. | |||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gains (losses), net | (741 | ) | 181 | $ | (468 | ) | $ | 337 | |||||||||||||||||||||||||
The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows: | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of September 30, 2013 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | September 30, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 28,499 | $ | — | $ | 28,499 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 67,553 | — | 67,553 | — | |||||||||||||||||||||||||||||
Foreign obligations | 1,281 | — | 1,281 | — | |||||||||||||||||||||||||||||
Commercial paper | 9,985 | — | 9,985 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,071 | 9,071 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 12,927 | 12,927 | — | — | |||||||||||||||||||||||||||||
Trading securities | 7,295 | 7,295 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 18,990 | 18,990 | — | — | |||||||||||||||||||||||||||||
Total | $ | 155,601 | $ | 48,283 | $ | 107,318 | $ | — | |||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2012 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 40,090 | $ | — | $ | 40,090 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 49,083 | — | 49,083 | — | |||||||||||||||||||||||||||||
Foreign obligations | 2,419 | — | 2,419 | — | |||||||||||||||||||||||||||||
Commercial paper | 2,000 | — | 2,000 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 20,649 | 20,649 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 11,545 | 11,545 | — | — | |||||||||||||||||||||||||||||
Trading securities | 5,386 | 5,386 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 398 | 398 | — | — | |||||||||||||||||||||||||||||
Total | $ | 131,570 | $ | 37,978 | $ | 93,592 | $ | — | |||||||||||||||||||||||||
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. | ||||||||||||||||||||||||||||||||
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||||||||||||||||||
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||||||||||||||||||||||
Based on our analysis of the nature and risks of our investments in equity securities and mutual funds, we have determined that presenting each of these investment categories in the aggregate is appropriate. | |||||||||||||||||||||||||||||||||
We measure the fair value of money market funds, mutual funds, equity securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from observable market data. We did not hold any securities categorized as Level 3 as of September 30, 2013 and December 31, 2012. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Investments in Unconsolidated Entities [Abstract] | ' | ||||||||
Investments in Unconsolidated Entities | ' | ||||||||
Investments in Unconsolidated Entities | |||||||||
Our investments in unconsolidated entities consist primarily of the following: | |||||||||
As of September 30 | As of December 31 | ||||||||
$0 | 2013 | 2012 | |||||||
Investment in MJKK | $ | 21,359 | $ | 20,540 | |||||
Other equity method investments | 6,322 | 6,288 | |||||||
Investments accounted for using the cost method | 10,695 | 8,477 | |||||||
Total investments in unconsolidated entities | $ | 38,376 | $ | 35,305 | |||||
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 47650. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: | |||||||||
As of September 30 | As of December 31 | ||||||||
2013 | 2012 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 8,558,222 | ¥ | 3,109,579 | |||||
Equivalent U.S. dollars ($000) | $ | 87,123 | $ | 36,227 | |||||
Other Equity Method Investments. As of September 30, 2013 and December 31, 2012, other equity method investments consist of our investment in Inquiry Financial Europe AB (Inquiry Financial) and YCharts, Inc. (YCharts). Inquiry Financial is a provider of sell-side consensus estimate data. Our ownership interest in Inquiry Financial was approximately 34% as of September 30, 2013 and December 31, 2012. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of September 30, 2013 and December 31, 2012. | |||||||||
As of December 31, 2012, other equity-method investments also included our investment in Morningstar Sweden. Our ownership interest and profit-and-loss sharing interest in Morningstar Sweden was 24% at that date. In May 2013, we acquired an additional 76% interest in Morningstar Sweden, increasing our ownership to 100%. Upon acquiring the full ownership, we recorded a non-cash gain of $3,635,000. This gain represents the difference between the estimated fair value and the book value of our investment in Morningstar Sweden at the date of acquisition. Because Morningstar Sweden is now a wholly owned subsidiary, we no longer account for our investment using the equity method. Beginning in May 2013, we consolidate the assets, liabilities, and results of operations of Morningstar Sweden in our Unaudited Condensed Consolidated Financial Statements. See Note 3 for additional information concerning our acquisition of Morningstar Sweden. | |||||||||
We did not record any impairment losses on our equity method investments in the first nine months of 2013 or 2012. | |||||||||
Cost Method Investments. As of September 30, 2013 and December 31, 2012, our cost method investments consist of minority investments in HelloWallet LLC (HelloWallet) and Pitchbook Data, Inc. (Pitchbook). HelloWallet is a provider of personalized financial guidance to employees of Fortune 1000 companies. Pitchbook offers detailed data and information about private equity transactions, investors, companies, limited partners, and service providers. | |||||||||
We did not record any impairment losses on our cost method investments in the first nine months of 2013 or 2012. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||||||||||||
Our shareholders approved the Morningstar 2011 Stock Incentive Plan (the 2011 Plan) on May 17, 2011. As of that date, we stopped granting awards under the Morningstar 2004 Stock Incentive Plan (the 2004 Plan). The 2004 Plan amended and restated the Morningstar 1993 Stock Option Plan, the Morningstar 2000 Stock Option Plan, and the Morningstar 2001 Stock Option Plan. | |||||||||||||||||||||||||||
The 2011 Plan provides for a variety of stock-based awards, including, among other things, stock options, restricted stock units, and restricted stock. We granted stock options, restricted stock units, and restricted stock under the 2004 Plan. | |||||||||||||||||||||||||||
All of our employees and our non-employee directors are eligible for awards under the 2011 Plan. | |||||||||||||||||||||||||||
Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan. | |||||||||||||||||||||||||||
The following table summarizes the number of shares available for future grants under our 2011 Plan: | |||||||||||||||||||||||||||
As of September 30 | |||||||||||||||||||||||||||
(in thousands) | 2013 | ||||||||||||||||||||||||||
Shares available for future grants | 4,563 | ||||||||||||||||||||||||||
Accounting for Stock-Based Compensation Awards | |||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | |||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Restricted stock units | $ | 3,196 | $ | 3,396 | $ | 10,493 | $ | 9,944 | |||||||||||||||||||
Restricted stock | 97 | 444 | 291 | 1,332 | |||||||||||||||||||||||
Stock options | 123 | 154 | 369 | 318 | |||||||||||||||||||||||
Total stock-based compensation expense | $ | 3,416 | $ | 3,994 | $ | 11,153 | $ | 11,594 | |||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 846 | $ | 931 | $ | 2,944 | $ | 2,735 | |||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2013 and the expected number of months over which the expense will be recognized: | |||||||||||||||||||||||||||
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | ||||||||||||||||||||||||||
Restricted stock units | $ | 32,203 | 34 | ||||||||||||||||||||||||
Restricted stock | 614 | 19 | |||||||||||||||||||||||||
Stock options | 708 | 19 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33,525 | 33 | ||||||||||||||||||||||||
In accordance with FASB ASC 718, Compensation—Stock Compensation, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. Our largest annual equity grants typically have vesting dates in the second quarter. We adjust the stock-based compensation expense annually in the third quarter to reflect those awards that ultimately vested and update our estimate of the forfeiture rate that will be applied to awards not yet vested. | |||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||
Restricted stock units represent the right to receive a share of Morningstar common stock when that unit vests. Restricted stock units to employees vest ratably over a four-year period. Restricted stock units granted to non-employee directors vest ratably over a three-year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit. | |||||||||||||||||||||||||||
We measure the fair value of our restricted stock units on the date of grant based on the closing market price of the underlying common stock on the day prior to grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the first nine months of 2013: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2012 | 727,145 | 18,782 | 745,927 | $ | 53.37 | ||||||||||||||||||||||
Granted | 244,364 | — | 244,364 | 69.99 | |||||||||||||||||||||||
Dividend equivalents | 2,090 | 63 | 2,153 | 55.69 | |||||||||||||||||||||||
Vested | (256,105 | ) | — | (256,105 | ) | 49.82 | |||||||||||||||||||||
Vested but deferred | — | — | — | — | |||||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (42,862 | ) | — | (42,862 | ) | 57.43 | |||||||||||||||||||||
RSUs outstanding—September 30, 2013 | 674,632 | 16,588 | 691,220 | 60.4 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
In conjunction with our acquisition of Realpoint LLC in May 2010, we issued 199,174 shares of restricted stock to the selling employee-shareholders under the 2004 Stock Incentive Plan. The restricted stock vests ratably over a five-year period from the acquisition date and may be subject to forfeiture if the holder terminates his or her employment during the vesting period. | |||||||||||||||||||||||||||
Because of the terms of the restricted stock agreements prepared in conjunction with the Realpoint acquisition, we account for the grant of restricted stock as stock-based compensation expense and not as part of the acquisition consideration. | |||||||||||||||||||||||||||
We measured the fair value of the restricted stock on the date of grant based on the closing market price of our common stock on the day prior to the grant. We amortize the fair value of $9,363,000 to stock-based compensation expense over the vesting period. We have assumed that all of the remaining restricted stock will ultimately vest, and therefore have not incorporated a forfeiture rate for purposes of determining the stock-based compensation expense. | |||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||
Stock options granted to employees vest ratably over a four-year period. Grants to our non-employee directors vest ratably over a three-year period. All grants expire 10 years after the date of grant. Almost all of the options granted under the 2004 Stock Incentive Plan have a premium feature in which the exercise price increases over the term of the option at a rate equal to the 10-year Treasury bond yield as of the date of grant. Options granted under the 2011 Plan have an exercise price equal to the fair market value on the grant date. | |||||||||||||||||||||||||||
The following tables summarize stock option activity in the first nine months of 2013 for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | |||||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2012 | 282,695 | $ | 20.55 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | (250 | ) | 21.25 | ||||||||||||||||||||||||
Exercised | (40,942 | ) | 20.77 | ||||||||||||||||||||||||
Options outstanding—September 30, 2013 | 241,503 | 21.24 | |||||||||||||||||||||||||
Options exercisable—September 30, 2013 | 241,503 | $ | 21.24 | ||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2012 | 391,784 | $ | 28.98 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | (1,352 | ) | 16.08 | ||||||||||||||||||||||||
Exercised | (133,219 | ) | 16.59 | ||||||||||||||||||||||||
Options outstanding—September 30, 2013 | 257,213 | 36.15 | |||||||||||||||||||||||||
Options exercisable—September 30, 2013 | 221,166 | $ | 32.66 | ||||||||||||||||||||||||
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: | |||||||||||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 8,964 | $ | 17,161 | |||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of September 30, 2013: | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted | Weighted | Aggregate | Exercisable Shares | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | |||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||
Remaining | Exercise | Value | |||||||||||||||||||||||||
Contractual | Price | $0 | |||||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||||||
$8.57 - $14.70 | 385 | 0.92 | $ | 13.11 | $ | 25 | 385 | 0.92 | $ | 13.11 | $ | 25 | |||||||||||||||
$21.18 - $48.37 | 426,656 | 1.39 | 24.15 | 23,513 | 426,656 | 1.39 | 24.15 | 23,513 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.78 | 57.46 | 1,563 | 35,628 | 7.76 | 57.37 | 750 | |||||||||||||||||||
$8.57 - $59.35 | 498,716 | 2.31 | 28.93 | $ | 25,101 | 462,669 | 1.88 | 26.7 | $ | 24,288 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$8.57 - $59.35 | 498,716 | 2.31 | $ | 28.93 | $ | 25,101 | |||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on September 30, 2013. The intrinsic value is based on our closing stock price of $79.26 on that date. | |||||||||||||||||||||||||||
Excess Tax Benefits Related to Stock-Based Compensation | |||||||||||||||||||||||||||
FASB ASC 718, Compensation—Stock Compensation, requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return that exceeds the amount of tax benefit related to the compensation cost recognized in our Statement of Income. The following table summarizes our excess tax benefits: | |||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 251 | $ | 459 | $ | 4,093 | $ | 5,007 | |||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Effective Tax Rate | |||||||||||||||||
The following table shows our effective income tax rate for the three and nine months ended September 30, 2013 and September 30, 2012: | |||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 45,384 | $ | 41,744 | $ | 133,584 | $ | 114,933 | |||||||||
Equity in net income of unconsolidated entities | 315 | 478 | 1,172 | 1,541 | |||||||||||||
Net loss attributable to the noncontrolling interest | 29 | 34 | 93 | 62 | |||||||||||||
Total | $ | 45,728 | $ | 42,256 | $ | 134,849 | $ | 116,536 | |||||||||
Income tax expense | $ | 14,265 | $ | 15,186 | $ | 42,647 | $ | 41,441 | |||||||||
Effective tax rate | 31.2 | % | 35.9 | % | 31.6 | % | 35.6 | % | |||||||||
Our effective tax rate in the third quarter of 2013 was 31.2%, a decrease of 4.7 percentage points compared with the prior-year period. The effective tax rate decrease primarily reflects adjustments to certain deferred income tax benefits and the recognition of additional tax credits and incentives. | |||||||||||||||||
Unrecognized Tax Benefits | |||||||||||||||||
The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | |||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||
Gross unrecognized tax benefits | $ | 14,880 | $ | 12,699 | |||||||||||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 14,880 | $ | 12,699 | |||||||||||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 12,323 | $ | 10,446 | |||||||||||||
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | |||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2013 | 2012 | |||||||||||||||
Current liability | $ | 6,646 | $ | 6,568 | |||||||||||||
Non-current liability | 7,758 | 5,659 | |||||||||||||||
Total liability for unrecognized tax benefits | $ | 14,404 | $ | 12,227 | |||||||||||||
We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2013. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. | |||||||||||||||||
We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 43% of our cash, cash equivalents, and investments as of September 30, 2013 were held by our operations outside of the United States. As such, we believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not possible to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. | |||||||||||||||||
Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible | |||||||||||||||||
to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Life's Good S.T.A.B.L. Hedge Fund | |
In September 2011, three individual investors in Life's Good S.T.A.B.L. Mortgage hedge fund (LG), Marta Klass, Gregory Martin, and Richard Roellig, filed a complaint in the United States District Court for the Eastern District of Pennsylvania against LG, its principal Robert Stinson, and several other parties, including Morningstar, Inc. (the Klass Matter). The plaintiffs claim that Morningstar committed fraud and aided and abetted the other defendants' breach of fiduciary duty through the 5-star rating LG obtained from Morningstar. The plaintiffs seek unspecified damages. Hedge fund managers self-report their performance data to Morningstar. More than a year before the Klass Matter, in June 2010, the SEC filed suit against LG and other entities claiming they were part of a Ponzi scheme operated by Stinson. As a result, LG and the other entities were placed in court-appointed receivership. Morningstar was not part of the SEC suit or receivership. Since that time, the Receiver, as part of his duties, has been investigating whether to assert claims against third parties. Morningstar is aware of 14 lawsuits filed by the Receiver seeking to recover money for the fund. | |
In November 2011, Morningstar filed a motion to dismiss the Klass Matter. On behalf of the entities in receivership, the Receiver filed a motion to stay the proceedings because the Receivership Order does not permit suits against the entities in receivership without court permission. The court granted the Receiver's motion and stayed the Klass Matter. In April 2012, the Receiver filed a complaint against Morningstar, in which the Receiver claims that Morningstar is liable for contribution and aiding and abetting Stinson's breach of fiduciary duty and fraud through the 5-star rating LG obtained from Morningstar. The Receiver seeks unspecified damages. The same day the Receiver filed his complaint, Morningstar sought leave from the court to file a counter suit against Stinson and two of his entities-Keystone State Capital Corporation and LG for, among other things, fraud, misrepresentation, and breach of user agreements. In June 2012, the court denied Morningstar's motion for leave to file suit. The court took no position on the merits of Morningstar's claims, and did not preclude us from renewing our motion to file a complaint at a later time, but deferred to the Receiver's request not to subject the receivership estate to additional litigation at this early point in the receivership. In August 2012, the court denied Morningstar's motion to dismiss the Receiver's complaint. | |
We believe the allegations against Morningstar by the Klass plaintiffs and the Receiver have no legal or factual basis and we plan to vigorously contest the claims. We also intend to refile our affirmative claims against Stinson, Keystone, and LG at a later time consistent with the court's order. We cannot predict the outcome of the proceedings. | |
We have not provided an estimate of loss or range of loss in connection with this matter because no such estimate can reasonably be made. | |
Business Logic Holding Corporation | |
In November 2009, Business Logic Holding Corporation filed a complaint in the Circuit Court of Cook County, Illinois against Ibbotson Associates, Inc. and Morningstar, Inc. relating to Ibbotson's prior commercial relationship with Business Logic. Business Logic is alleging breach of contract and trade secret misappropriation in connection with Ibbotson's development of a proprietary web-service software and user interface that connects plan participant data with the Ibbotson Wealth Forecasting Engine. Business Logic seeks, among other things, compensatory damages, punitive damages, attorneys' fees, and injunctive relief. Ibbotson and Morningstar answered the complaint, and Ibbotson asserted a counterclaim against Business Logic alleging trade secret misappropriation and breach of contract, also seeking damages and injunctive relief. Business Logic filed a motion for summary judgment on its breach of contract claim, which was denied on October 1, 2013. | |
As noted above, Business Logic's complaint seeks, among other things, compensatory damages, punitive damages, attorneys' fees, and injunctive relief. With regard to compensatory damages, based on the analysis of Ibbotson's retained damages expert (who has assumed, solely for purposes of his analysis, that Business Logic will prevail with regard to the issue of liability), and recognizing the uncertainty inherent in litigation and our intention to continue to vigorously defend the claims made by Business Logic, our best estimate of the range of possible loss is between $0 and $5.4 million, excluding punitive damages or attorneys' fees, both of which are recoverable in certain circumstances under the Illinois Trade Secrets Act. Business Logic's retained damages expert (who has also assumed for purposes of her estimate that Business Logic will prevail with regard to the issue of liability) has, however, estimated compensatory damages of $84 million, excluding punitive damages or attorneys' fees. We dispute the conclusions reached and the methods employed by Business Logic's expert. | |
With regard to Business Logic's claim for injunctive relief, no reasonable estimate of loss or range of loss is possible. | |
Morningstar and Ibbotson continue to vigorously contest all the claims against them in this matter. We cannot, however, predict the outcome of the proceeding. | |
In addition to these proceedings, we are involved in legal proceedings and litigation that have arisen in the normal course of our business. Although the outcome of a particular proceeding can never be predicted, we do not believe that the result of any of these other matters will have a material adverse effect on our business, operating results, or financial position. |
Share_Repurchase_Program
Share Repurchase Program | 9 Months Ended |
Sep. 30, 2013 | |
Share Repurchase Program [Abstract] | ' |
Share Repurchase Program Disclosure [Text Block] | ' |
Share Repurchase Program | |
In September 2010, the board of directors approved a share repurchase program that authorizes the repurchase of up to $100 million in shares of our outstanding common stock. In December 2011, the board approved a $200 million increase to the $100 million share repurchase program it announced in 2010. In December 2012, the board authorized the company to repurchase an additional $200 million in shares of our outstanding common stock, increasing the repurchase program from $300 million to $500 million with a revised expiration date of December 31, 2014. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions at our discretion. As of September 30, 2013, we had repurchased a total of 5,885,886 shares for $359,064,000 under this authorization. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
In October 2013, our board of directors declared a quarterly dividend of 12.5 cents per share. The dividend was payable on October 31, 2013 to shareholders of record as of October 14, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Comprehensive Income, Policy [Policy Text Block] | ' |
In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). The amended guidance requires us to show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement where net income is presented. The adoption of ASU No. 2013-2 did not have a material effect on our consolidated financial statements. | |
Segment Reporting, Policy [Policy Text Block] | ' |
Furthermore, beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |
Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |
Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | |
The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2012. We evaluate the performance of our reporting segment based on revenue and operating income. | |
Investment, Policy [Policy Text Block] | ' |
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: |
Recovered_Sheet1
Investments and Fair value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Investment, Policy [Policy Text Block] | ' |
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||||||||||||||
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,472 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 519 | ||||||||||||||||||||||||||||
Other non-current assets | 244 | ||||||||||||||||||||||||||||
Intangible assets | 9,700 | ||||||||||||||||||||||||||||
Goodwill | 9,084 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (1,043 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||||||||||||||||||||||||||
The allocation includes acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Total intangible assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from December 31, 2012 to September 30, 2013: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 9,084 | ||||||||||||||||||||||||||||
Other, primarily foreign currency translation | (3,188 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 326,741 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
$0 | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 29,799 | $ | (22,778 | ) | $ | 7,021 | 9 | $ | 30,621 | $ | (21,527 | ) | $ | 9,094 | 9 | |||||||||||||
Customer-related assets | 141,824 | (71,343 | ) | 70,481 | 12 | 132,798 | (63,005 | ) | 69,793 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (105 | ) | 135 | 20 | 240 | (96 | ) | 144 | 20 | |||||||||||||||||||
Technology-based assets | 80,553 | (49,017 | ) | 31,536 | 9 | 81,333 | (43,809 | ) | 37,524 | 9 | |||||||||||||||||||
Non-competition agreement | 1,692 | (1,596 | ) | 96 | 4 | 1,765 | (1,588 | ) | 177 | 4 | |||||||||||||||||||
Total intangible assets | $ | 254,108 | $ | (144,839 | ) | $ | 109,269 | 10 | $ | 246,757 | $ | (130,025 | ) | $ | 116,732 | 10 | |||||||||||||
Schedule of Intangible Asset, Amortization Expense | ' | ||||||||||||||||||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Amortization expense | $ | 5,287 | $ | 5,941 | $ | 16,249 | $ | 17,972 | |||||||||||||||||||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||||||||||||||
We expect intangible amortization expense for 2013 and subsequent years as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2013 | $ | 21,510 | |||||||||||||||||||||||||||
2014 | 20,507 | ||||||||||||||||||||||||||||
2015 | 19,687 | ||||||||||||||||||||||||||||
2016 | 15,118 | ||||||||||||||||||||||||||||
2017 | 10,579 | ||||||||||||||||||||||||||||
2018 | 8,593 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Income_Per_Share_Tables
Income Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | |||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||||||||||||||||
The following table shows the number of weighted average stock options, restricted stock units, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average stock options | — | 9 | — | 12 | ||||||||||||||
Weighted average restricted stock units | 1 | — | 19 | 81 | ||||||||||||||
Weighted average restricted stock | — | — | — | — | ||||||||||||||
Total | 1 | 9 | 19 | 93 | ||||||||||||||
These stock options and restricted stock units could be included in the calculation in the future. | ||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic net income per share attributable to Morningstar, Inc.: | ||||||||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 31,463 | $ | 27,070 | $ | 92,202 | $ | 75,095 | ||||||||||
Less: Distributed earnings available to participating securities | — | (12 | ) | (5 | ) | (39 | ) | |||||||||||
Less: Undistributed earnings available to participating securities | (11 | ) | (53 | ) | (29 | ) | (144 | ) | ||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,912 | ||||||||||
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 | ||||||||||||||
Basic net income per share attributable to Morningstar, Inc. | $ | 0.68 | $ | 0.56 | $ | 1.99 | $ | 1.53 | ||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | ||||||||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,912 | ||||||||||
Add: Undistributed earnings allocated to participating securities | 11 | 53 | 29 | 144 | ||||||||||||||
Less: Undistributed earnings reallocated to participating securities | (11 | ) | (53 | ) | (29 | ) | (142 | ) | ||||||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 31,452 | $ | 27,005 | $ | 92,168 | $ | 74,914 | ||||||||||
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 | ||||||||||||||
Net effect of dilutive stock options and restricted stock units | 439 | 506 | 342 | 636 | ||||||||||||||
Weighted average common shares outstanding for computing diluted income per share | 46,519 | 48,481 | 46,635 | 49,664 | ||||||||||||||
Diluted net income per share attributable to Morningstar, Inc. | $ | 0.68 | $ | 0.56 | $ | 1.98 | $ | 1.51 | ||||||||||
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Revenue from External Customer [Line Items] | ' | |||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | ' | |||||||||||||||||
Products and Services Information | ||||||||||||||||||
We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group. | ||||||||||||||||||
External revenue by product group | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Investment information | $ | 137,216 | $ | 128,392 | $ | 412,332 | $ | 388,468 | ||||||||||
Investment management | 36,266 | 32,560 | 105,434 | 99,211 | ||||||||||||||
Consolidated revenue | $ | 173,482 | $ | 160,952 | $ | 517,766 | $ | 487,679 | ||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||||
External revenue by geographical area | ||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
United States | $ | 124,998 | $ | 114,021 | $ | 372,746 | $ | 346,442 | ||||||||||
United Kingdom | 14,148 | 13,711 | 41,316 | 42,160 | ||||||||||||||
Europe, excluding the United Kingdom | 14,666 | 11,643 | 41,826 | 35,980 | ||||||||||||||
Australia | 8,041 | 10,090 | 26,569 | 29,230 | ||||||||||||||
Canada | 7,603 | 7,605 | 23,151 | 22,351 | ||||||||||||||
Asia, excluding Japan | 2,580 | 2,420 | 7,836 | 7,156 | ||||||||||||||
Japan | 783 | 924 | 2,400 | 2,889 | ||||||||||||||
Other | 663 | 538 | 1,922 | 1,471 | ||||||||||||||
Total International | 48,484 | 46,931 | 145,020 | 141,237 | ||||||||||||||
Consolidated revenue | $ | 173,482 | $ | 160,952 | $ | 517,766 | $ | 487,679 | ||||||||||
Long-lived assets by geographical area | ||||||||||||||||||
As of September 30 | As of December 31 | |||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||
United States | $ | 77,713 | $ | 60,371 | ||||||||||||||
United Kingdom | 6,611 | 7,435 | ||||||||||||||||
Europe, excluding the United Kingdom | 2,061 | 2,356 | ||||||||||||||||
Australia | 1,184 | 1,402 | ||||||||||||||||
Canada | 1,400 | 1,773 | ||||||||||||||||
Asia, excluding Japan | 9,863 | 10,445 | ||||||||||||||||
Japan | 45 | 84 | ||||||||||||||||
Other | 130 | 156 | ||||||||||||||||
Total International | 21,294 | 23,651 | ||||||||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 99,007 | $ | 84,022 | ||||||||||||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Investments | ' | ||||||||||||||||||||||||||||||||
We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: | |||||||||||||||||||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 129,316 | $ | 125,786 | |||||||||||||||||||||||||||||
Held-to-maturity | 29,307 | 26,357 | |||||||||||||||||||||||||||||||
Trading securities | 7,295 | 5,386 | |||||||||||||||||||||||||||||||
Total | $ | 165,918 | $ | 157,529 | |||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | ' | ||||||||||||||||||||||||||||||||
The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity: | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 28,515 | $ | 8 | $ | (24 | ) | $ | 28,499 | $ | 40,669 | $ | 29 | $ | (608 | ) | $ | 40,090 | |||||||||||||||
Corporate bonds | 67,763 | 13 | (223 | ) | 67,553 | 49,339 | 36 | (292 | ) | 49,083 | |||||||||||||||||||||||
Foreign obligations | 1,297 | — | (16 | ) | 1,281 | 2,437 | 1 | (19 | ) | 2,419 | |||||||||||||||||||||||
Commercial paper | 9,986 | — | (1 | ) | 9,985 | 2,000 | — | — | 2,000 | ||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,226 | 1,001 | (156 | ) | 9,071 | 19,613 | 1,359 | (323 | ) | 20,649 | |||||||||||||||||||||||
Mutual funds | 10,624 | 2,395 | (92 | ) | 12,927 | 10,499 | 1,092 | (46 | ) | 11,545 | |||||||||||||||||||||||
Total | $ | 126,411 | $ | 3,417 | $ | (512 | ) | $ | 129,316 | $ | 124,557 | $ | 2,517 | $ | (1,288 | ) | $ | 125,786 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 29,307 | $ | — | $ | — | $ | 29,307 | $ | 26,357 | $ | — | $ | — | $ | 26,357 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||||||||||
The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties. | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 53,470 | $ | 53,308 | $ | 87,599 | $ | 86,784 | |||||||||||||||||||||||||
Due in one to two years | 54,091 | 54,010 | 6,846 | 6,808 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 18,850 | 21,998 | 30,112 | 32,194 | |||||||||||||||||||||||||||||
Total | $ | 126,411 | $ | 129,316 | $ | 124,557 | $ | 125,786 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 29,303 | $ | 29,303 | $ | 26,352 | $ | 26,352 | |||||||||||||||||||||||||
Due in one to three years | 4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||
Total | $ | 29,307 | $ | 29,307 | $ | 26,357 | $ | 26,357 | |||||||||||||||||||||||||
Schedule of Realized Gain (Loss) on Available-For-Sale Securities | ' | ||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Realized gains | 94 | 219 | $ | 2,320 | $ | 689 | |||||||||||||||||||||||||||
Realized losses | (136 | ) | (222 | ) | (1,214 | ) | (741 | ) | |||||||||||||||||||||||||
Realized gains (losses), net | (42 | ) | (3 | ) | $ | 1,106 | $ | (52 | ) | ||||||||||||||||||||||||
Unrealized Gain (Loss) On Trading Securities | ' | ||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gains (losses), net | (741 | ) | 181 | $ | (468 | ) | $ | 337 | |||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||||||||||||||||||
The fair value of our assets subject to fair value measurements and that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement, are as follows: | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of September 30, 2013 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | September 30, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 28,499 | $ | — | $ | 28,499 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 67,553 | — | 67,553 | — | |||||||||||||||||||||||||||||
Foreign obligations | 1,281 | — | 1,281 | — | |||||||||||||||||||||||||||||
Commercial paper | 9,985 | — | 9,985 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,071 | 9,071 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 12,927 | 12,927 | — | — | |||||||||||||||||||||||||||||
Trading securities | 7,295 | 7,295 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 18,990 | 18,990 | — | — | |||||||||||||||||||||||||||||
Total | $ | 155,601 | $ | 48,283 | $ | 107,318 | $ | — | |||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2012 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 40,090 | $ | — | $ | 40,090 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 49,083 | — | 49,083 | — | |||||||||||||||||||||||||||||
Foreign obligations | 2,419 | — | 2,419 | — | |||||||||||||||||||||||||||||
Commercial paper | 2,000 | — | 2,000 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 20,649 | 20,649 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 11,545 | 11,545 | — | — | |||||||||||||||||||||||||||||
Trading securities | 5,386 | 5,386 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 398 | 398 | — | — | |||||||||||||||||||||||||||||
Total | $ | 131,570 | $ | 37,978 | $ | 93,592 | $ | — | |||||||||||||||||||||||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
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 September 30 | As of December 31 | ||||||||
$0 | 2013 | 2012 | |||||||
Investment in MJKK | $ | 21,359 | $ | 20,540 | |||||
Other equity method investments | 6,322 | 6,288 | |||||||
Investments accounted for using the cost method | 10,695 | 8,477 | |||||||
Total investments in unconsolidated entities | $ | 38,376 | $ | 35,305 | |||||
Schedule of Equity Method Investments | ' | ||||||||
The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: | |||||||||
As of September 30 | As of December 31 | ||||||||
2013 | 2012 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 8,558,222 | ¥ | 3,109,579 | |||||
Equivalent U.S. dollars ($000) | $ | 87,123 | $ | 36,227 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [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 September 30 | |||||||||||||||||||||||||||
(in thousands) | 2013 | ||||||||||||||||||||||||||
Shares available for future grants | 4,563 | ||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | |||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Restricted stock units | $ | 3,196 | $ | 3,396 | $ | 10,493 | $ | 9,944 | |||||||||||||||||||
Restricted stock | 97 | 444 | 291 | 1,332 | |||||||||||||||||||||||
Stock options | 123 | 154 | 369 | 318 | |||||||||||||||||||||||
Total stock-based compensation expense | $ | 3,416 | $ | 3,994 | $ | 11,153 | $ | 11,594 | |||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 846 | $ | 931 | $ | 2,944 | $ | 2,735 | |||||||||||||||||||
Schedule of Unrecognized Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of September 30, 2013 and the expected number of months over which the expense will be recognized: | |||||||||||||||||||||||||||
Unrecognized stock-based compensation expense ($000) | Expected amortization period (months) | ||||||||||||||||||||||||||
Restricted stock units | $ | 32,203 | 34 | ||||||||||||||||||||||||
Restricted stock | 614 | 19 | |||||||||||||||||||||||||
Stock options | 708 | 19 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33,525 | 33 | ||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | ' | ||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the first nine months of 2013: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2012 | 727,145 | 18,782 | 745,927 | $ | 53.37 | ||||||||||||||||||||||
Granted | 244,364 | — | 244,364 | 69.99 | |||||||||||||||||||||||
Dividend equivalents | 2,090 | 63 | 2,153 | 55.69 | |||||||||||||||||||||||
Vested | (256,105 | ) | — | (256,105 | ) | 49.82 | |||||||||||||||||||||
Vested but deferred | — | — | — | — | |||||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (42,862 | ) | — | (42,862 | ) | 57.43 | |||||||||||||||||||||
RSUs outstanding—September 30, 2013 | 674,632 | 16,588 | 691,220 | 60.4 | |||||||||||||||||||||||
Schedule of Options Granted at Exercise Price Below Fair Value per Share on Grant Date | ' | ||||||||||||||||||||||||||
The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | |||||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2012 | 282,695 | $ | 20.55 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | (250 | ) | 21.25 | ||||||||||||||||||||||||
Exercised | (40,942 | ) | 20.77 | ||||||||||||||||||||||||
Options outstanding—September 30, 2013 | 241,503 | 21.24 | |||||||||||||||||||||||||
Options exercisable—September 30, 2013 | 241,503 | $ | 21.24 | ||||||||||||||||||||||||
Schedule of All Other Option Granted | ' | ||||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2012 | 391,784 | $ | 28.98 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | (1,352 | ) | 16.08 | ||||||||||||||||||||||||
Exercised | (133,219 | ) | 16.59 | ||||||||||||||||||||||||
Options outstanding—September 30, 2013 | 257,213 | 36.15 | |||||||||||||||||||||||||
Options exercisable—September 30, 2013 | 221,166 | $ | 32.66 | ||||||||||||||||||||||||
Schedule of Intrinsic Value of Stock Options Exercised During Period | ' | ||||||||||||||||||||||||||
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: | |||||||||||||||||||||||||||
Nine months ended September 30 | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 8,964 | $ | 17,161 | |||||||||||||||||||||||
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of September 30, 2013: | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of Exercise Prices | Number of Options | Weighted | Weighted | Aggregate | Exercisable Shares | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Aggregate Intrinsic Value ($000) | |||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||
Remaining | Exercise | Value | |||||||||||||||||||||||||
Contractual | Price | $0 | |||||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||||||
$8.57 - $14.70 | 385 | 0.92 | $ | 13.11 | $ | 25 | 385 | 0.92 | $ | 13.11 | $ | 25 | |||||||||||||||
$21.18 - $48.37 | 426,656 | 1.39 | 24.15 | 23,513 | 426,656 | 1.39 | 24.15 | 23,513 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.78 | 57.46 | 1,563 | 35,628 | 7.76 | 57.37 | 750 | |||||||||||||||||||
$8.57 - $59.35 | 498,716 | 2.31 | 28.93 | $ | 25,101 | 462,669 | 1.88 | 26.7 | $ | 24,288 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$8.57 - $59.35 | 498,716 | 2.31 | $ | 28.93 | $ | 25,101 | |||||||||||||||||||||
Schedule of Tax Benefits Related to Share Based Compensation | ' | ||||||||||||||||||||||||||
The following table summarizes our excess tax benefits: | |||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 251 | $ | 459 | $ | 4,093 | $ | 5,007 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||||||
The following table shows our effective income tax rate for the three and nine months ended September 30, 2013 and September 30, 2012: | |||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||
$0 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 45,384 | $ | 41,744 | $ | 133,584 | $ | 114,933 | |||||||||
Equity in net income of unconsolidated entities | 315 | 478 | 1,172 | 1,541 | |||||||||||||
Net loss attributable to the noncontrolling interest | 29 | 34 | 93 | 62 | |||||||||||||
Total | $ | 45,728 | $ | 42,256 | $ | 134,849 | $ | 116,536 | |||||||||
Income tax expense | $ | 14,265 | $ | 15,186 | $ | 42,647 | $ | 41,441 | |||||||||
Effective tax rate | 31.2 | % | 35.9 | % | 31.6 | % | 35.6 | % | |||||||||
Schedule of Gross Unrecognized Tax Benefits | ' | ||||||||||||||||
The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2013 and December 31, 2012. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | |||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||
Gross unrecognized tax benefits | $ | 14,880 | $ | 12,699 | |||||||||||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 14,880 | $ | 12,699 | |||||||||||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 12,323 | $ | 10,446 | |||||||||||||
Schedule of Liabilities for Unrecognized Tax Benefits | ' | ||||||||||||||||
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | |||||||||||||||||
As of September 30 | As of December 31 | ||||||||||||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2013 | 2012 | |||||||||||||||
Current liability | $ | 6,646 | $ | 6,568 | |||||||||||||
Non-current liability | 7,758 | 5,659 | |||||||||||||||
Total liability for unrecognized tax benefits | $ | 14,404 | $ | 12,227 | |||||||||||||
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 3-May-13 | Mar. 31, 2013 | |
Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Ownership interest acquired | ' | ' | ' | ' | ' | 76.00% | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | $3,959,000 |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | 100.00% | 24.00% |
Total fair value of Morningstar Sweden | ' | ' | ' | ' | ' | 18,513,000 | ' |
Cash paid to acquire ownership interest | ' | ' | ' | ' | ' | 14,554,000 | ' |
Holding gain upon acquisition of additional ownership of equity method investments | -78,000 | 0 | 3,635,000 | 0 | ' | 3,635,000 | ' |
Intangible assets | ' | ' | ' | ' | ' | 9,700,000 | ' |
Deferred tax liability | ' | ' | ' | ' | ' | -2,272,000 | ' |
Goodwill | $326,741,000 | ' | $326,741,000 | ' | $320,845,000 | $9,084,000 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Allocation of the Estimated Fair Values of the Assets Acquired and Liabilities Assumed) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 3-May-13 |
In Thousands, unless otherwise specified | Morningstar Sweden AB [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' |
Cash and cash equivalents | ' | ' | $3,472 |
Accounts receivable and other current assets | ' | ' | 519 |
Other non-current assets | ' | ' | 244 |
Intangible assets | ' | ' | 9,700 |
Goodwill | 326,741 | 320,845 | 9,084 |
Deferred revenue | ' | ' | -1,191 |
Deferred tax liability | ' | ' | -2,272 |
Other current and non-current liabilities | ' | ' | -1,043 |
Total fair value of Morningstar Sweden | ' | ' | $18,513 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule of Acquired Intangible Assets) (Details) (Morningstar Sweden AB [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | 3-May-13 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets, value | $9,700 |
Acquired intangible assets, weighted average useful life (years) | '14 years |
Customer-related assets [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets, value | $9,700 |
Acquired intangible assets, weighted average useful life (years) | '14 years |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill, Impairment Loss | $0 | $0 |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 320,845 | ' |
Adjustments to 2010 acquisitions | 9,084 | ' |
Other, primarily currency translation | -3,188 | ' |
Goodwill, Ending Balance | $326,741 | ' |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | $254,108 | $246,757 |
Accumulated Amortization | -144,839 | -130,025 |
Intangible assets, Net | 109,269 | 116,732 |
Weighted-Average Useful Life (years) | '10 years | '10 years |
Intellectual Property [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 29,799 | 30,621 |
Accumulated Amortization | -22,778 | -21,527 |
Intangible assets, Net | 7,021 | 9,094 |
Weighted-Average Useful Life (years) | '9 years | '9 years |
Customer Related Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 141,824 | 132,798 |
Accumulated Amortization | -71,343 | -63,005 |
Intangible assets, Net | 70,481 | 69,793 |
Weighted-Average Useful Life (years) | '12 years | '12 years |
Supplier Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 240 | 240 |
Accumulated Amortization | -105 | -96 |
Intangible assets, Net | 135 | 144 |
Weighted-Average Useful Life (years) | '20 years | '20 years |
Technology-Based Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 80,553 | 81,333 |
Accumulated Amortization | -49,017 | -43,809 |
Intangible assets, Net | 31,536 | 37,524 |
Weighted-Average Useful Life (years) | '9 years | '9 years |
Non-competition Agreement [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 1,692 | 1,765 |
Accumulated Amortization | -1,596 | -1,588 |
Intangible assets, Net | $96 | $177 |
Weighted-Average Useful Life (years) | '4 years | '4 years |
Goodwill_and_Other_Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $5,287 | $5,941 | $16,249 | $17,972 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
2013 | 21,510 | ' | 21,510 | ' |
2014 | 20,507 | ' | 20,507 | ' |
2015 | 19,687 | ' | 19,687 | ' |
2016 | 15,118 | ' | 15,118 | ' |
2017 | 10,579 | ' | 10,579 | ' |
2018 | $8,593 | ' | $8,593 | ' |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | 9 | 19 | 93 |
Earnings Per Share, Basic [Abstract] | ' | ' | ' | ' |
Net income attributable to Morningstar, Inc. | $31,463 | $27,070 | $92,202 | $75,095 |
Less: Distributed Earnings Available to Participating Securities | 0 | -12 | -5 | -39 |
Less: Undistributed earnings allocated to participating securities | -11 | -53 | -29 | -144 |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 31,452 | 27,005 | 92,168 | 74,912 |
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 |
Basic net income per share attributable to Morningstar, Inc. | $0.68 | $0.56 | $1.99 | $1.53 |
Earnings Per Share, Diluted [Abstract] | ' | ' | ' | ' |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 31,452 | 27,005 | 92,168 | 74,912 |
Add: Undistributed Earnings Allocated To Participating Securities | 11 | 53 | 29 | 144 |
Less: Undistributed Earnings Reallocated to Participating Securities | -11 | -53 | -29 | -142 |
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | $31,452 | $27,005 | $92,168 | $74,914 |
Weighted average common shares outstanding | 46,080 | 47,975 | 46,293 | 49,028 |
Net effect of dilutive stock options and restricted stock units | 439 | 506 | 342 | 636 |
Weighted average common shares outstanding for computing diluted income per share | 46,519 | 48,481 | 46,635 | 49,664 |
Diluted net income per share attributable to Morningstar, Inc. | $0.68 | $0.56 | $1.98 | $1.51 |
Stock Options [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 9 | 0 | 12 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | 0 | 19 | 81 |
Restricted Stock [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ||
External revenue | $173,482 | $160,952 | $517,766 | $487,679 | ' | ||
Stock-based compensation expense | 3,416 | 3,994 | 11,153 | 11,594 | ' | ||
Depreciation and amortization | 11,257 | [1] | 10,822 | [1] | 33,858 | 31,616 | ' |
Operating income (loss) | 44,613 | 39,864 | 128,757 | 111,399 | ' | ||
Payments to Acquire Property, Plant, and Equipment | ' | ' | 27,950 | 22,876 | ' | ||
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | ||
Goodwill | 326,741 | ' | 326,741 | ' | 320,845 | ||
U.S. [Member] | ' | ' | ' | ' | ' | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ||
External revenue | 124,998 | 114,021 | 372,746 | 346,442 | ' | ||
Non-U.S. [Member] | ' | ' | ' | ' | ' | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ||
External revenue | 48,484 | 46,931 | 145,020 | 141,237 | ' | ||
Investment Management [Member] | ' | ' | ' | ' | ' | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ||
External revenue | 36,266 | 32,560 | 105,434 | 99,211 | ' | ||
Investment Information [Member] | ' | ' | ' | ' | ' | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ||
External revenue | $137,216 | $128,392 | $412,332 | $388,468 | ' | ||
[1] | Three months ended September 30B Nine months ended September 30 2013B 2012B 2013B 2012(1)B Includes stock-based compensation expense of: Cost of revenueB $1,471B $1,619B $4,863B $4,739Sales and marketingB 456B 493B 1,490B 1,433General and administrativeB 1,489B 1,882B 4,800B 5,422Total stock-based compensation expenseB $3,416B $3,994B $11,153B $11,594 |
Segment_EnterpriseWide_and_Geo
Segment, Enterprise-Wide, and Geographical Area Information Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | $173,482 | $160,952 | $517,766 | $487,679 | ' |
Long-lived assets | 99,007 | ' | 99,007 | ' | 84,022 |
United States | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 124,998 | 114,021 | 372,746 | 346,442 | ' |
Long-lived assets | 77,713 | ' | 77,713 | ' | 60,371 |
Non United States [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 48,484 | 46,931 | 145,020 | 141,237 | ' |
Long-lived assets | 21,294 | ' | 21,294 | ' | 23,651 |
United Kingdom | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 14,148 | 13,711 | 41,316 | 42,160 | ' |
Long-lived assets | 6,611 | ' | 6,611 | ' | 7,435 |
Europe excluding the United Kingdom [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 14,666 | 11,643 | 41,826 | 35,980 | ' |
Long-lived assets | 2,061 | ' | 2,061 | ' | 2,356 |
Australia | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 8,041 | 10,090 | 26,569 | 29,230 | ' |
Long-lived assets | 1,184 | ' | 1,184 | ' | 1,402 |
Canada | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 7,603 | 7,605 | 23,151 | 22,351 | ' |
Long-lived assets | 1,400 | ' | 1,400 | ' | 1,773 |
Asia excluding Japan | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 2,580 | 2,420 | 7,836 | 7,156 | ' |
Long-lived assets | 9,863 | ' | 9,863 | ' | 10,445 |
Japan | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 783 | 924 | 2,400 | 2,889 | ' |
Long-lived assets | 45 | ' | 45 | ' | 84 |
Other | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 663 | 538 | 1,922 | 1,471 | ' |
Long-lived assets | $130 | ' | $130 | ' | $156 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Available-for-sale | $129,316 | $125,786 |
Held-to-maturity | 29,307 | 26,357 |
Trading securities | 7,295 | 5,386 |
Total | $165,918 | $157,529 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | $126,411 | ' | $126,411 | ' | $124,557 |
Available-for-sale Securities, Unrealized Gain | 3,417 | ' | 3,417 | ' | 2,517 |
Available-for-sale Securities, Unrealized Loss | -512 | ' | -512 | ' | -1,288 |
Available-for-sale securities, Fair Value | 129,316 | ' | 129,316 | ' | 125,786 |
Held-to-maturity: | ' | ' | ' | ' | ' |
Held-to-maturity securities, Cost | 29,307 | ' | 29,307 | ' | 26,357 |
Held-to-maturity Securities, Unrecognized Gain | 0 | ' | 0 | ' | 0 |
Held-to-maturity Securities, Unrecognized Loss | 0 | ' | 0 | ' | 0 |
Held-to-maturity securities, Fair Value | 29,307 | ' | 29,307 | ' | 26,357 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Available-for-sale securities, realized gains | 94 | 219 | 2,320 | 689 | ' |
Available-for-sale securities, realized losses | -136 | -222 | -1,214 | -741 | ' |
Available-for-sale securities, realized gains (losses), net | -42 | -3 | 1,106 | -52 | ' |
Government Obligations [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 28,515 | ' | 28,515 | ' | 40,669 |
Available-for-sale Securities, Unrealized Gain | 8 | ' | 8 | ' | 29 |
Available-for-sale Securities, Unrealized Loss | -24 | ' | -24 | ' | -608 |
Available-for-sale securities, Fair Value | 28,499 | ' | 28,499 | ' | 40,090 |
Corporate Bonds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 67,763 | ' | 67,763 | ' | 49,339 |
Available-for-sale Securities, Unrealized Gain | 13 | ' | 13 | ' | 36 |
Available-for-sale Securities, Unrealized Loss | -223 | ' | -223 | ' | -292 |
Available-for-sale securities, Fair Value | 67,553 | ' | 67,553 | ' | 49,083 |
Foreign Government Debt Securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 1,297 | ' | 1,297 | ' | 2,437 |
Available-for-sale Securities, Unrealized Gain | 0 | ' | 0 | ' | 1 |
Available-for-sale Securities, Unrealized Loss | -16 | ' | -16 | ' | -19 |
Available-for-sale securities, Fair Value | 1,281 | ' | 1,281 | ' | 2,419 |
Commercial Paper [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 9,986 | ' | 9,986 | ' | 2,000 |
Available-for-sale Securities, Unrealized Gain | 0 | ' | 0 | ' | 0 |
Available-for-sale Securities, Unrealized Loss | -1 | ' | -1 | ' | 0 |
Available-for-sale securities, Fair Value | 9,985 | ' | 9,985 | ' | 2,000 |
Equity Securities and Exchange-traded Funds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 8,226 | ' | 8,226 | ' | 19,613 |
Available-for-sale Securities, Unrealized Gain | 1,001 | ' | 1,001 | ' | 1,359 |
Available-for-sale Securities, Unrealized Loss | -156 | ' | -156 | ' | -323 |
Available-for-sale securities, Fair Value | 9,071 | ' | 9,071 | ' | 20,649 |
Mutual Funds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 10,624 | ' | 10,624 | ' | 10,499 |
Available-for-sale Securities, Unrealized Gain | 2,395 | ' | 2,395 | ' | 1,092 |
Available-for-sale Securities, Unrealized Loss | -92 | ' | -92 | ' | -46 |
Available-for-sale securities, Fair Value | $12,927 | ' | $12,927 | ' | $11,545 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Available-for-sale securities, Due in one year or less, Cost | $53,470,000 | $87,599,000 |
Available-for-sale securities, Due in one year or less, Fair Vlaue | 53,308,000 | 86,784,000 |
Available-for-sale securities, Due in one to two years, Cost | 54,091,000 | 6,846,000 |
Available-for-sale securities, Due in one to two years, Fair Value | 54,010,000 | 6,808,000 |
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost | 18,850,000 | 30,112,000 |
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value | 21,998,000 | 32,194,000 |
Available-for-sale securities, Cost | 126,411,000 | 124,557,000 |
Available-for-sale securities, Fair Value | 129,316,000 | 125,786,000 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ' | ' |
Held-to-maturity securities, Due in one year or less, Cost | 29,303,000 | 26,352,000 |
Held-to-maturity securities, Due within one year or less, Fair Value | 29,303,000 | 26,352,000 |
Held-to-maturity securities, Due in one to three years, Cost | 4,000 | 5,000 |
Held-to-maturity securities, Due in one to three years, Fair Value | 4,000 | 5,000 |
Held-to-maturity securities, Cost | 29,307,000 | 26,357,000 |
Held-to-maturity securities, Fair Value | 29,307,000 | 26,357,000 |
Certificate of deposit held as collateral against Australia office lease | $1,500,000 | ' |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses), net | ($741) | $181 | ($468) | $337 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | $7,295 | $5,386 |
Cash equivalents, fair value | 18,990 | 398 |
Total investments, fair value | 155,601 | 131,570 |
Estimate of Fair Value Measurement [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 28,499 | 40,090 |
Estimate of Fair Value Measurement [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 67,553 | 49,083 |
Estimate of Fair Value Measurement [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 9,985 | 2,000 |
Estimate of Fair Value Measurement [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 9,071 | 20,649 |
Estimate of Fair Value Measurement [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 12,927 | 11,545 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 7,295 | 5,386 |
Cash equivalents, fair value | 18,990 | 398 |
Total investments, fair value | 48,283 | 37,978 |
Fair Value, Inputs, Level 1 [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 9,071 | 20,649 |
Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 12,927 | 11,545 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 107,318 | 93,592 |
Fair Value, Inputs, Level 2 [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 28,499 | 40,090 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 67,553 | 49,083 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 9,985 | 2,000 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Foreign Government Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 1,281 | 2,419 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 1,281 | 2,419 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | $0 | $0 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 3-May-13 | Mar. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Other Equity Method Investments [Member] | Other Equity Method Investments [Member] | YCharts [Member] | YCharts [Member] | Morningstar Sweden AB [Member] | Inquiry Financial Europe AB [Member] | Inquiry Financial Europe AB [Member] | Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | |
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | USD ($) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments | ' | ' | ' | ' | ' | $21,359,000 | ' | $20,540,000 | ' | $6,322,000 | $6,288,000 | ' | ' | ' | ' | ' | ' | ' |
Cost method investments | 10,695,000 | ' | 10,695,000 | ' | 8,477,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investments in unconsolidated entities | 38,376,000 | ' | 38,376,000 | ' | 35,305,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | 34.00% | 34.00% | 34.00% | 34.00% | ' | ' | 22.00% | 22.00% | 24.00% | 34.00% | 34.00% | 100.00% | 24.00% |
Ownership interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76.00% | ' |
Equity method investment, approximate market value | ' | ' | ' | ' | ' | 87,123,000 | 8,558,222,000 | 36,227,000 | 3,109,579,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity-method investments, other than temporary impairment | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of equity and cost method investments | ' | ' | 2,751,000 | 10,304,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost-method investments, other than temporary impairment | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments Holding Gain | ($78,000) | $0 | $3,635,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,635,000 | ' |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares Available For Future Grants) (Details) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares available for future grants | 4,563 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,416 | $3,994 | $11,153 | $11,594 |
Income tax benefit related to the stock-based compensation expense | 846 | 931 | 2,944 | 2,735 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 3,196 | 3,396 | 10,493 | 9,944 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 97 | 444 | 291 | 1,332 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $123 | $154 | $369 | $318 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation expense | $33,525 |
Expected amortization period (months) | '33 years |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation expense | 32,203 |
Expected amortization period (months) | '34 years |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation expense | 614 |
Expected amortization period (months) | '19 years |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized stock-based compensation expense | $708 |
Expected amortization period (months) | '19 years |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
RSUs outstanding, Beginning Balance, Unvested | 727,145 |
RSUs outstanding, Beginning Balance, Vested but Deferred | 18,782 |
RSUs outstanding, Beginning Balance, Total | 745,927 |
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU | 53.37 |
Granted, Unvested | 244,364 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Grants In Period | 0 |
Granted, Total | 244,364 |
Granted, Weighted Average Grant Date Valueper RSU | $69.99 |
Dividend equivalents, Unvested | 2,090 |
Dividend equivalents, Vestedd but Deferred | 63 |
Dividend equivalents, Total | 2,153 |
Dividend equivalents, Weighted Average Grant Date Valueper RSU | $55.69 |
Vested, Unvested | -256,105 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Vested In Period | 0 |
Vested, Total | -256,105 |
Vested, Weighted Average Grant Date Valueper RSU | $49.82 |
Vested but deferred, Unvested | 0 |
Vested but deferred, Vested but Deferred | 0 |
Vested but deferred, Total | 0 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested but Deferred Weighted Average Grant Date Fair Value | $0 |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Issued in Period | 0 |
Issued, Vested but Deferred | -2,257 |
Issued, Total | -2,257 |
Issued, Weighted Average Grant Date Valueper RSU | $49.40 |
Forfeited, Unvested | -42,862 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Forfeited In Period | 0 |
Forfeited, Total | -42,862 |
Forfeited, Weighted Average Grant Date Valueper RSU | $57.43 |
RSUs outstanding, Ending Balance, Unvested | 674,632 |
RSUs outstanding, Ending Balance, Vested but Deferred | 16,588 |
RSUs outstanding, Ending Balance, Total | 691,220 |
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU | 60.4 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Intrinsic Value of Options Exercised [Abstract] | ' | ' |
Intrinsic value of options exercised | $8,964 | $17,161 |
Options Granted At Discount [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Beginning Balance, Underlying Shares | 282,695 | ' |
Granted, Underlying Shares | 0 | ' |
Canceled, Underlying Shares | -250 | ' |
Exercised, Underlying Shares | -40,942 | ' |
Options outstanding, Ending Balance, Underlying Shares | 241,503 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' |
Options outstanding, Beginning Balance, Weighted Average Exercise Price | $20.55 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Canceled, Weighted Average Exercise Price | $21.25 | ' |
Exercised, Weighted Average Exercise Price | $20.77 | ' |
Options outstanding, Ending Balance, Weighted Average Exercise Price | $21.24 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' |
Options exercisable, Underlying Shares | 241,503 | ' |
Options exercisable, Weighted Average Exercise Price | $21.24 | ' |
Option Grants Excluding Options Granted at Discount [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Beginning Balance, Underlying Shares | 391,784 | ' |
Granted, Underlying Shares | 0 | ' |
Canceled, Underlying Shares | -1,352 | ' |
Exercised, Underlying Shares | -133,219 | ' |
Options outstanding, Ending Balance, Underlying Shares | 257,213 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' |
Options outstanding, Beginning Balance, Weighted Average Exercise Price | $28.98 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Canceled, Weighted Average Exercise Price | $16.08 | ' |
Exercised, Weighted Average Exercise Price | $16.59 | ' |
Options outstanding, Ending Balance, Weighted Average Exercise Price | $36.15 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' |
Options exercisable, Underlying Shares | 221,166 | ' |
Options exercisable, Weighted Average Exercise Price | $32.66 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information on Options) (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Closing stock price used to calculate intrinsic value | $79.26 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$8.57 - $14.70 |
Range of Exercise Prices, Lower Limit | $8.57 |
Range of Exercise Prices, Upper Limit | $14.70 |
Options Outstanding, Number of Options | 385 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '0 years 11 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $13.11 |
Options Outstanding, Aggregate Intrinsic Value | $25 |
Options Exercisable, Exercisable Shares | 385 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '0 years 11 months 1 day |
Options Exercisable, Weighted Average Exercise Price | $13.11 |
Options Exercisable, Aggregate Intrinsic Value | 25 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$21.18 - $48.37 |
Range of Exercise Prices, Lower Limit | $20.96 |
Range of Exercise Prices, Upper Limit | $47.86 |
Options Outstanding, Number of Options | 426,656 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '1 year 4 months 21 days |
Options Outstanding, Weighted Average Exercise Price | $24.15 |
Options Outstanding, Aggregate Intrinsic Value | 23,513 |
Options Exercisable, Exercisable Shares | 426,656 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 4 months 21 days |
Options Exercisable, Weighted Average Exercise Price | $24.15 |
Options Exercisable, Aggregate Intrinsic Value | 23,513 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$57.28 - $59.35 |
Range of Exercise Prices, Lower Limit | $57.28 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 71,675 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '7 years 9 months 11 days |
Options Outstanding, Weighted Average Exercise Price | $57.46 |
Options Outstanding, Aggregate Intrinsic Value | 1,563 |
Options Exercisable, Exercisable Shares | 35,628 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '7 years 9 months 4 days |
Options Exercisable, Weighted Average Exercise Price | $57.37 |
Options Exercisable, Aggregate Intrinsic Value | 750 |
Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$8.57 - $59.35 |
Range of Exercise Prices, Lower Limit | $8.57 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 498,716 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '2 years 3 months 22 days |
Options Outstanding, Weighted Average Exercise Price | $28.93 |
Options Outstanding, Aggregate Intrinsic Value | 25,101 |
Options Exercisable, Exercisable Shares | 462,669 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 10 months 17 days |
Options Exercisable, Weighted Average Exercise Price | $26.70 |
Options Exercisable, Aggregate Intrinsic Value | 24,288 |
Vested or Expected to Vest [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $8.57 |
Range of Exercise Prices, Upper Limit | $59.35 |
Vested or Expected to Vest, Range of Exercise Prices | '$8.57 - $59.35 |
Vested or Expected to Vest, Number of Options | 498,716 |
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years) | '2 years 3 months 22 days |
Vested or Expected to Vest, Weighted Average Exercise Price | $28.93 |
Vested or Expected to Vest, Aggregate Intrinsic Value | $25,101 |
StockBased_Compensation_Excess
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Excess tax benefits related to stock-based compensation | $251 | $459 | $4,093 | $5,007 |
Restricted_Stock_Activity_Rela
Restricted Stock Activity Related to the Realpoint Acquisition (Details) (USD $) | 3-May-10 | Sep. 30, 2013 |
Realpoint, LLC [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Business Acquisition, Cost of Acquired Entity, Shares of Restricted Stock | 199,174 | ' |
Share Based Compensation, Fair Value of Share Based Compensation Expensed Over Vesting Period | ' | $9,363,000 |
Income_Taxes_Income_Tax_Reconc
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' | ' | ' |
Income before income taxes and equity in net income of unconsolidated entities | $45,384 | $41,744 | $133,584 | $114,933 | ' |
Equity in net income of unconsolidated entities | 315 | 478 | 1,172 | 1,541 | ' |
Net (income) loss attributable to the noncontrolling interest | 29 | 34 | 93 | 62 | ' |
Total | 45,728 | 42,256 | 134,849 | 116,536 | ' |
Income tax expense | 14,265 | 15,186 | 42,647 | 41,441 | ' |
Effective income tax rate | 31.20% | 35.90% | 31.60% | 35.60% | ' |
Effective income tax rate reconciliation, change in percentage points compared with prior year period | ' | -4.7 | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ' | ' | ' | ' | ' |
Current liabilities | 6,646 | ' | 6,646 | ' | 6,568 |
Non-current liabilities | 7,758 | ' | 7,758 | ' | 5,659 |
Total liability for unrecognized tax benefits | $14,404 | ' | $14,404 | ' | $12,227 |
Income_Taxes_Income_Tax_Contin
Income Taxes (Income Tax Contingency) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Gross unrecognized tax benefits | $14,880 | $12,699 |
Gross unrecognized tax benefits which would affect income tax expense | 14,880 | 12,699 |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $12,323 | $10,446 |
Contingencies_Details
Contingencies (Details) (Pending Litigation [Member], Business Logic Holding Corporation [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Pending Litigation [Member] | Business Logic Holding Corporation [Member] | ' |
Loss Contingencies [Line Items] | ' |
Range of possible loss, minimum | $0 |
Range of possible loss, maximum | 5.4 |
Damages sought, value | $84 |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Repurchase Program [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Common stock, dividends, per share, declared | ' | $0 | $0.10 | $0.25 | $0.30 | ' | ' |
Share repurchase program, authorized amount | $100,000,000 | ' | ' | ' | ' | $500,000,000 | $300,000,000 |
Increase to share repurchase rogram, authorized amount | ' | ' | ' | ' | ' | 200,000,000 | 200,000,000 |
Shares repurchased, program life to date, shares | ' | 5,885,886 | ' | 5,885,886 | ' | ' | ' |
Shares repurchased, program life to date, value | ' | $359,064,000 | ' | $359,064,000 | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 04, 2013 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Common stock, dividends, per share, declared | $0 | $0.10 | $0.25 | $0.30 | $12.50 |