Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 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-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 44,700,741 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1.60 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue | $698,266 | $658,288 | $631,400 | |||
Operating expense (1): | ' | ' | ' | |||
Cost of revenue | 271,437 | [1] | 246,783 | [1] | 235,289 | [1] |
Sales and marketing | 103,614 | [1] | 108,884 | [1] | 106,699 | [1] |
General and administrative | 106,868 | [1] | 108,857 | [1] | 108,084 | [1] |
Depreciation and amortization | 45,693 | 43,096 | 42,913 | |||
Total operating expense | 527,612 | [1] | 507,620 | [1] | 492,985 | [1] |
Operating income | 170,654 | 150,668 | 138,415 | |||
Non-operating income (expense): | ' | ' | ' | |||
Interest income, net | 2,712 | 5,153 | 2,361 | |||
Gain (loss) on sale of investments reclassified from other comprehensive income | 4,207 | 538 | 260 | |||
Equity Method Investments Holding Gain | 3,635 | 0 | 0 | |||
Other income (expense), net | -3,198 | -2,734 | -912 | |||
Non-operating income (expense), net | 7,356 | 2,957 | 1,709 | |||
Income before income taxes and equity in net income of unconsolidated entities | 178,010 | 153,625 | 140,124 | |||
Income tax expense | 56,031 | 52,878 | 43,658 | |||
Equity in net income of unconsolidated entities | 1,428 | 2,027 | 1,848 | |||
Consolidated Net Income from Continuing Operations | 123,407 | 102,774 | 98,314 | |||
Gain on Sale of Discontinued Operation, Net of Tax | 0 | 5,188 | 0 | |||
Consolidated net income | 123,407 | 107,962 | 98,314 | |||
Net (income) loss attributable to the noncontrolling interest | 122 | 117 | 43 | |||
Net income attributable to Morningstar, Inc. | 123,529 | 108,079 | 98,357 | |||
Net Income from Continuing Operations, net of tax | 123,529 | 102,891 | 98,357 | |||
Net Income from Discontinued Operations, Net of Tax | $0 | $5,188 | $0 | |||
Net income per share attributable to Morningstar, Inc.: | ' | ' | ' | |||
Basic (in dollars per share) | $2.68 | $2.23 | $1.96 | |||
Diluted (in dollars per share) | $2.66 | $2.20 | $1.92 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0 | $0.10 | $0 | |||
Income (Loss) from Continuing Operations, Per Diluted Share | $2.66 | $2.10 | $1.92 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0 | $0.11 | $0 | |||
Income (Loss) from Continuing Operations, Per Basic Share | $2.68 | $2.12 | $1.96 | |||
Dividends per common share: | ' | ' | ' | |||
Dividends declared per common share | $0.55 | $0.43 | $0.25 | |||
Dividends paid per common share | $0.38 | $0.53 | $0.20 | |||
Weighted average shares outstanding: | ' | ' | ' | |||
Basic (in shares) | 46,158 | 48,497 | 50,032 | |||
Diluted (in shares) | 46,491 | 49,148 | 50,988 | |||
[1] | 2013 2012 2011(1) Includes stock-based compensation expense of: Cost of revenue $6,870 $6,416 $6,236Sales and marketing 1,975 1,937 1,871General and administrative 6,198 10,552 7,196Total stock-based compensation expense $15,043 $18,905 $15,303 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allocated Share-based Compensation Expense | $15,043 | $18,905 | $15,303 |
Cost of Revenue [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | 6,870 | 6,416 | 6,236 |
Selling and Marketing Expense [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,975 | 1,937 | 1,871 |
General and Administrative Expense [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | $6,198 | $10,552 | $7,196 |
Consolidated_Consolidated_Stat
Consolidated Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated net income | $123,407 | $107,962 | $98,314 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustment | -4,539 | 6,838 | -2,345 |
Unrealized gains (losses) on securities: | ' | ' | ' |
Unrealized holding gains (losses) arising during period | 2,408 | 1,455 | -773 |
Reclasification of (gains) losses included in net income | -2,631 | -344 | -166 |
Other comprehensive income (loss) | -4,762 | 7,949 | -3,284 |
Comprehensive income | 118,645 | 115,911 | 95,030 |
Comprehensive (income) loss attributable to noncontrolling interest | 345 | 268 | -179 |
Comprehensive income attributable to Morningstar, Inc. | $118,990 | $116,179 | $94,851 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $168,160 | $163,889 |
Investments | 130,407 | 157,529 |
Accounts receivable, less allowance of $1,089 and 569, respectively | 114,131 | 114,361 |
Deferred tax asset, net | 3,892 | 3,741 |
Income tax receivable, net | 3,942 | 14,267 |
Other | 26,361 | 20,823 |
Total current assets | 446,893 | 474,610 |
Property, equipment, and capitalized software, net | 104,986 | 84,022 |
Investments in unconsolidated entities | 38,714 | 35,305 |
Goodwill | 326,450 | 320,845 |
Intangible assets, net | 103,909 | 116,732 |
Other assets | 9,716 | 10,438 |
Total assets | 1,030,668 | 1,041,952 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 52,877 | 43,777 |
Accrued compensation | 71,403 | 67,317 |
Deferred revenue | 149,225 | 146,015 |
Other | 6,786 | 256 |
Total current liabilities | 280,291 | 257,365 |
Accrued compensation | 8,193 | 8,281 |
Deferred tax liability, net | 23,755 | 21,583 |
Deferred Rent | 13,192 | 15,368 |
Other long-term liabilities | 13,947 | 12,460 |
Total liabilities | 339,378 | 315,057 |
Morningstar, Inc. shareholders' equity: | ' | ' |
Common stock, no par value, 200,000,000 shares authorized, of which 44,967,423 and 46,541,571 shares were outstanding as of December 31, 2013 and December 31, 2012, respectively | 5 | 5 |
Treasury stock at cost, 7,202,896 shares as of December 31, 2013 and 5,214,070 shares as of December 31, 2012 | -449,054 | -301,839 |
Additional paid-in capital | 539,507 | 521,285 |
Retained earnings | 594,626 | 496,354 |
Accumulated other comprehensive income (loss): | ' | ' |
Currency translation adjustment | 4,609 | 8,925 |
Unrealized gain (loss) on available-for-sale investments | 564 | 787 |
Total accumulated other comprehensive income | 5,173 | 9,712 |
Total Morningstar, Inc. shareholders' equity | 690,257 | 725,517 |
Noncontrolling interest | 1,033 | 1,378 |
Total equity | 691,290 | 726,895 |
Total liabilities and equity | $1,030,668 | $1,041,952 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $1,089 | $569 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 44,967,423 | 46,541,571 |
Treasury Stock, Shares | 7,202,896 | 5,214,070 |
Condensed_Consolidated_Stateme1
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, 2010 | $781,425 | $5 | ($6,641) | $458,426 | $323,408 | $5,118 | $1,109 |
Balance (in shares) at Dec. 31, 2010 | ' | 49,874,392 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 98,314 | ' | ' | ' | 98,357 | ' | -43 |
Other Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on available-for-sale investments, net of income tax | -773 | ' | ' | ' | ' | -773 | 0 |
Reclassification of adjustments for gains included in net income, net of income tax | -166 | ' | ' | ' | ' | -166 | 0 |
Foreign currency translation adjustment, net | -2,345 | ' | ' | ' | ' | -2,567 | 222 |
Other comprehensive income (loss) | -3,284 | ' | ' | ' | ' | -3,506 | 222 |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 8,702 | 0 | 612 | 8,090 | ' | ' | ' |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | ' | 931,667 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation - restricted stock units | 12,765 | ' | ' | 12,765 | ' | ' | ' |
Stock-based compensation - restricted stock | 2,196 | ' | ' | 2,196 | ' | ' | ' |
Stock-based compensation - stock options | 342 | ' | ' | 342 | ' | ' | ' |
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 9,525 | ' | ' | 9,525 | ' | ' | ' |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 262 | ' | ' | -96 | ' | ' | 358 |
Dividends declared - common shares outstanding | -12,550 | ' | ' | ' | -12,550 | ' | ' |
Dividends declared - restricted stock units | -9 | ' | ' | 184 | -193 | ' | ' |
Common share repurchased | -40,672 | ' | -40,672 | ' | ' | ' | ' |
Common share repurchased (in shares) | ' | -722,119 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 857,016 | 5 | -46,701 | 491,432 | 409,022 | 1,612 | 1,646 |
Balance (in shares) at Dec. 31, 2011 | ' | 50,083,940 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 107,962 | ' | ' | ' | 108,079 | ' | -117 |
Other Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on available-for-sale investments, net of income tax | 1,455 | ' | ' | ' | ' | 1,455 | 0 |
Reclassification of adjustments for gains included in net income, net of income tax | -344 | ' | ' | ' | ' | -344 | 0 |
Foreign currency translation adjustment, net | 6,838 | ' | ' | ' | ' | 6,989 | -151 |
Other comprehensive income (loss) | 7,949 | ' | ' | ' | ' | 8,100 | -151 |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 4,809 | ' | 1,342 | 3,467 | ' | ' | ' |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | ' | 715,888 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation - restricted stock units | 13,451 | ' | ' | 13,451 | ' | ' | ' |
Stock-based compensation - restricted stock | 5,013 | ' | ' | 5,013 | ' | ' | ' |
Stock-based compensation - stock options | 441 | ' | ' | 441 | ' | ' | ' |
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 7,210 | ' | ' | 7,210 | ' | ' | ' |
Dividends declared - common shares outstanding | -20,420 | ' | ' | ' | -20,420 | ' | ' |
Dividends declared - restricted stock units | -56 | ' | ' | 271 | -327 | ' | ' |
Common share repurchased | -256,480 | ' | -256,480 | ' | ' | ' | ' |
Common share repurchased (in shares) | ' | -4,258,257 | ' | ' | ' | ' | ' |
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) | 123,407 | ' | ' | ' | 123,529 | ' | -122 |
Other Comprehensive Income (loss) | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on available-for-sale investments, net of income tax | 2,408 | ' | ' | ' | ' | 2,408 | 0 |
Reclassification of adjustments for gains included in net income, net of income tax | -2,631 | ' | ' | ' | ' | -2,631 | 0 |
Foreign currency translation adjustment, net | -4,539 | ' | ' | ' | ' | -4,316 | -223 |
Other comprehensive income (loss) | -4,762 | ' | ' | ' | ' | -4,539 | -223 |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | -1,275 | ' | 1,633 | -2,908 | ' | ' | ' |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | ' | 437,263 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation - restricted stock units | 14,163 | ' | ' | 14,163 | ' | ' | ' |
Stock-based compensation - restricted stock | 388 | ' | ' | 388 | ' | ' | ' |
Stock-based compensation - stock options | 492 | ' | ' | 492 | ' | ' | ' |
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 5,898 | ' | ' | 5,898 | ' | ' | ' |
Dividends declared - common shares outstanding | -24,977 | ' | ' | ' | -24,977 | ' | ' |
Dividends declared - restricted stock units | -91 | ' | ' | 189 | -280 | ' | ' |
Common share repurchased | -148,848 | ' | -148,848 | ' | ' | ' | ' |
Common share repurchased (in shares) | ' | -2,011,411 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $691,290 | $5 | ($449,054) | $539,507 | $594,626 | $5,173 | $1,033 |
Balance (in shares) at Dec. 31, 2013 | 44,967,423 | 44,967,423 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $1,469 | $614 | $447 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $1,576 | $194 | $94 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Consolidated net income | $123,407 | $107,962 | $98,314 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ' | ' | ' |
Depreciation and amortization | 45,693 | 43,096 | 42,913 |
Deferred income taxes | -1,133 | 6,316 | -4,436 |
Stock-based compensation expense | 15,043 | 18,905 | 15,303 |
Provision for bad debt | 825 | 1,016 | 1,237 |
Equity in net income of unconsolidated entities | -1,428 | -2,027 | -1,848 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | -5,898 | -7,210 | -9,525 |
Gain on sale of discontinued operations, Net of Tax | 0 | -5,188 | 0 |
Loss on sale of cost-method investment | 0 | 2,034 | 0 |
Holding gain upon acquisition of additional ownership of equity method investment | -3,635 | 0 | 0 |
Other, net | -1,830 | 142 | 592 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' | ' |
Accounts receivable | -1,593 | -17,124 | -3,858 |
Other assets | -2,302 | 223 | 2,728 |
Accounts payable and accrued liabilities | -1,244 | 1,173 | -4,821 |
Accrued compensation | 3,153 | -8,861 | 10,176 |
Income taxesbcurrent | 16,794 | -1,205 | 10,751 |
Deferred revenue | 3,658 | 7,769 | 9,578 |
Deferred rent | -1,484 | 407 | -1,030 |
Other liabilities | -1,368 | -1,432 | -1,098 |
Cash provided by operating activities | 186,658 | 145,996 | 164,976 |
Investing activities | ' | ' | ' |
Purchases of investments | -140,051 | -145,491 | -383,281 |
Proceeds from maturities and sales of investments | 171,243 | 260,317 | 297,956 |
Capital expenditures | -33,583 | -30,039 | -23,322 |
Acquisitions, net of cash acquired | -11,079 | 0 | 300 |
Proceeds from sale of a business, net | 957 | 5,734 | 0 |
Purchases of cost and equity method investments | -2,751 | -10,304 | -2,450 |
Other, net | 403 | -25 | 30 |
Cash used for investing activities | -14,861 | 80,192 | -110,767 |
Financing activities | ' | ' | ' |
Proceeds from stock-option exercises, net | 4,532 | 9,101 | 12,866 |
Taxes Withheld For Restricted Stock Units | -5,807 | -4,292 | -4,164 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 5,898 | 7,210 | 9,525 |
Common shares repurchased | -153,514 | -251,813 | -40,672 |
Dividends paid | -17,425 | -25,487 | -10,041 |
Other, net | -56 | 105 | -110 |
Cash provided by (used for) financing activities | -166,372 | -265,176 | -32,596 |
Effect of exchange rate changes on cash and cash equivalents | -1,154 | 2,440 | -1,352 |
Net increase (decrease) in cash and cash equivalents | 4,271 | -36,548 | 20,261 |
Cash and cash equivalents - beginning of period | 163,889 | 200,437 | 180,176 |
Cash and cash equivalents - end of period | 168,160 | 163,889 | 200,437 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid for income taxes | 40,364 | 47,355 | 38,054 |
Supplemental information of non-cash investing and financing activities: | ' | ' | ' |
Unrealized gain (loss) on available-for-sale investments | -328 | 1,723 | -1,480 |
Equipment obtained under long-term financing arrangement | $4,860 | $4,551 | $0 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Morningstar, Inc. and its subsidiaries (Morningstar, we, our), is a provider of independent investment research to investors around the world. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. We have operations in 27 countries. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
Summary of Significant Accounting Policies | |||||||||||||
The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following: | |||||||||||||
ASC | Accounting Standards Codification | ||||||||||||
ASU | Accounting Standards Update | ||||||||||||
EITF | Emerging Issues Task Force | ||||||||||||
FASB | Financial Accounting Standards Board | ||||||||||||
SEC | Securities and Exchange Commission | ||||||||||||
Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. The assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation. A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. | |||||||||||||
We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. | |||||||||||||
As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. | |||||||||||||
Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). We 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. | |||||||||||||
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
Reclassifications. Certain amounts reported in previous years have been reclassified to conform to the 2013 presentation. We now include development expense in the cost of revenue category, which we previously referred to as cost of goods sold. We previously reported development expense as a separate operating expense category. 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 2013 as compared with both 2012 and 2011, changes related to our more centralized organizational structure added approximately $14 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 $8 million and $6 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented. | |||||||||||||
Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state at fair value the portion of our cash equivalents that are invested in money market funds, which are actively traded and have quoted market prices. | |||||||||||||
Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. | |||||||||||||
• | Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. | ||||||||||||
• | Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
• | Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of fixed-income securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. | |||||||||||||
Effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements. | |||||||||||||
FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs as described below: | |||||||||||||
• | Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. | ||||||||||||
• | Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||
• | Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||
We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 5 in these Notes to our Consolidated Financial Statements. | |||||||||||||
The Fair Value Option for Financial Assets and Financial Liabilities. FASB ASC 825, Financial Instruments, permits entities the option to measure many financial instruments and certain other items at fair value with changes in fair value recognized in earnings each period. FASB ASC 825 allows the fair value option to be elected on an instrument-by-instrument basis when the asset or liability is initially recognized or when there's an event that gives rise to a new basis of accounting for that instrument. We do not apply this fair value option to any of our eligible assets. | |||||||||||||
Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2013, 2012, and 2011, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. | |||||||||||||
Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. | |||||||||||||
Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. Capitalized software development costs related to projects that have not been placed into service yet are included in our construction in progress balance. | |||||||||||||
The table below summarizes our capitalized software development costs for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Capitalized software development costs | $ | 8,142 | $ | 8,527 | $ | 5,315 | |||||||
Business Combinations. Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, and the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations on the acquisition date. | |||||||||||||
As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and values applicable for income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. | |||||||||||||
Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions and divestitures. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2013, 2012, and 2011. We did not record any significant impairment losses in 2013, 2012, and 2011. | |||||||||||||
Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We recorded an impairment loss of approximately $800,000 in 2011. We did not record any impairment losses in 2013 or 2012. The impairment charge is included in our amortization expense on our Consolidated Statements of Income. | |||||||||||||
Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition, ASC 605-25, Revenue Recognition: Multiple Element Arrangements, and ASC 985-605, Software: Revenue Recognition. | |||||||||||||
We recognize revenue when all of the following conditions are met: | |||||||||||||
• | There is persuasive evidence of an arrangement, as evidenced by a signed contract; | ||||||||||||
• | Delivery of our products and services is a prerequisite for recognition of revenue. If arrangements include an acceptance provision, we generally begin recognizing revenue upon the receipt of customer acceptance; | ||||||||||||
• | The amount of fees to be paid by the customer is fixed or determinable; and | ||||||||||||
• | The collectibility of the fees is reasonably assured. | ||||||||||||
We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Equity Research, Premium Membership fees for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for CMBS, we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance of the transaction. | |||||||||||||
We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. | |||||||||||||
Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. | |||||||||||||
Our Retirement Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Retirement Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Retirement Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. | |||||||||||||
Some of our revenue arrangements with our customers combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. | |||||||||||||
We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. | |||||||||||||
Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided, which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. | |||||||||||||
Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Advertising expense | $ | 6,939 | $ | 6,306 | $ | 8,210 | |||||||
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation. Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, and stock options. We measure the fair value of our restricted stock units and restricted stock on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options granted in 2011, we estimated the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||
We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. | |||||||||||||
Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, in general, Morningstar's full-time employees are eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25, Compensated Absences. We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave which is included in Accrued Compensation in our Consolidated Balance Sheet. | |||||||||||||
Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and the amounts used for income tax purposes in accordance with FASB ASC 740, Income Taxes. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements, and also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. | |||||||||||||
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. | |||||||||||||
Income per Share. We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share. The difference between weighted average shares outstanding and diluted shares outstanding primarily reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two Class Method. Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. | |||||||||||||
ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. | |||||||||||||
Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. | |||||||||||||
Income_Per_Share
Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 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: | |||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 123,529 | $ | 108,079 | $ | 98,357 | |||||||
Less: Distributed earnings available to participating securities | (10 | ) | (41 | ) | (40 | ) | |||||||
Less: Undistributed earnings available to participating securities | (36 | ) | (47 | ) | (259 | ) | |||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,991 | $ | 98,058 | |||||||
Weighted average common shares outstanding | 46,158 | 48,497 | 50,032 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 2.68 | $ | 2.12 | $ | 1.96 | |||||||
Discontinued operations | — | 0.11 | — | ||||||||||
Total | $ | 2.68 | $ | 2.23 | $ | 1.96 | |||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,991 | $ | 98,058 | |||||||
Add: Undistributed earnings allocated to participating securities | 36 | 47 | 259 | ||||||||||
Less: Undistributed earnings reallocated to participating securities | (36 | ) | (46 | ) | (254 | ) | |||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,992 | $ | 98,063 | |||||||
Weighted average common shares outstanding | 46,158 | 48,497 | 50,032 | ||||||||||
Net effect of dilutive stock options and restricted stock units | 333 | 651 | 956 | ||||||||||
Weighted average common shares outstanding for computing diluted income per share | 46,491 | 49,148 | 50,988 | ||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 2.66 | $ | 2.1 | $ | 1.92 | |||||||
Discontinued operations | — | 0.1 | — | ||||||||||
Total | $ | 2.66 | $ | 2.2 | $ | 1.92 | |||||||
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 from both continuing operations and net earnings because their inclusion would have been anti-dilutive: | |||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||
Weighted average stock options | — | 83 | 55 | ||||||||||
Weighted average restricted stock units | 17 | 7 | — | ||||||||||
Weighted average restricted stock | — | — | — | ||||||||||
Total | 17 | 90 | 55 | ||||||||||
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 | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment and Geographical Area Information | ' | ||||||||||||
Segment, Enterprise-Wide, and Geographical Area Information | |||||||||||||
Segment Information | |||||||||||||
In 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. We have revised our historical financial results to reflect this change. | |||||||||||||
Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. | |||||||||||||
The accounting policies for our reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies”. 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 | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Investment information | 555,642 | 526,147 | 498,265 | ||||||||||
Investment management | 142,624 | 132,141 | 133,135 | ||||||||||
Consolidated revenue | $ | 698,266 | $ | 658,288 | $ | 631,400 | |||||||
Geographical Area Information | |||||||||||||
The tables below summarize our revenue and long-lived assets by geographical area: | |||||||||||||
External revenue by geographical area | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 500,730 | $ | 466,947 | $ | 446,470 | |||||||
United Kingdom | 56,298 | 56,794 | 53,427 | ||||||||||
Continental Europe | 57,580 | 49,844 | 49,507 | ||||||||||
Australia | 35,289 | 38,229 | 39,761 | ||||||||||
Canada | 31,845 | 30,664 | 27,808 | ||||||||||
Asia | 13,860 | 13,765 | 13,188 | ||||||||||
Other | 2,664 | 2,045 | 1,239 | ||||||||||
Total International | 197,536 | 191,341 | 184,930 | ||||||||||
Consolidated revenue | $ | 698,266 | $ | 658,288 | $ | 631,400 | |||||||
Long-lived assets by geographical area | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
United States | $ | 84,321 | $ | 60,371 | |||||||||
United Kingdom | 6,873 | 7,435 | |||||||||||
Continental Europe | 1,873 | 2,356 | |||||||||||
Australia | 1,051 | 1,402 | |||||||||||
Canada | 1,275 | 1,773 | |||||||||||
Asia | 9,479 | 10,529 | |||||||||||
Other | 114 | 156 | |||||||||||
Total International | 20,665 | 23,651 | |||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 104,986 | $ | 84,022 | |||||||||
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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 December 31 | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 91,461 | $ | 125,786 | |||||||||||||||||||||||||||||
Held-to-maturity | 31,214 | $ | 26,357 | ||||||||||||||||||||||||||||||
Trading securities | 7,732 | $ | 5,386 | ||||||||||||||||||||||||||||||
Total | $ | 130,407 | $ | 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 December 31, 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 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | $ | 40,669 | $ | 29 | $ | (608 | ) | $ | 40,090 | |||||||||||||||
Corporate bonds | 49,913 | 22 | (124 | ) | 49,811 | 49,339 | 36 | (292 | ) | 49,083 | |||||||||||||||||||||||
Foreign obligations | 505 | — | (2 | ) | 503 | 2,437 | 1 | (19 | ) | 2,419 | |||||||||||||||||||||||
Commercial paper | 9,482 | 7 | — | 9,489 | 2,000 | — | — | 2,000 | |||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,872 | 1,011 | (141 | ) | 9,742 | 19,613 | 1,359 | (323 | ) | 20,649 | |||||||||||||||||||||||
Mutual funds | 2,095 | 221 | (98 | ) | 2,218 | 10,499 | 1,092 | (46 | ) | 11,545 | |||||||||||||||||||||||
Total | $ | 90,560 | $ | 1,269 | $ | (368 | ) | 91,461 | $ | 124,557 | $ | 2,517 | $ | (1,288 | ) | $ | 125,786 | ||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 31,214 | $ | — | $ | — | $ | 31,214 | $ | 26,357 | $ | — | $ | — | $ | 26,357 | |||||||||||||||||
As of December 31, 2013 and December 31, 2012, investments with unrealized losses for greater than a 12-month period were not material to the Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. | |||||||||||||||||||||||||||||||||
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 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 December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 45,486 | $ | 45,402 | $ | 87,599 | $ | 86,784 | |||||||||||||||||||||||||
Due in one to two years | 34,107 | 34,099 | 6,846 | 6,808 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 10,967 | 11,960 | 30,112 | 32,194 | |||||||||||||||||||||||||||||
Total | $ | 90,560 | $ | 91,461 | $ | 124,557 | $ | 125,786 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 31,210 | $ | 31,210 | $ | 26,352 | $ | 26,352 | |||||||||||||||||||||||||
Due in one to three years | 4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||
Total | $ | 31,214 | $ | 31,214 | $ | 26,357 | $ | 26,357 | |||||||||||||||||||||||||
As of December 31, 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 Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Realized gains | $ | 5,550 | $ | 1,671 | $ | 761 | |||||||||||||||||||||||||||
Realized losses | (1,343 | ) | (1,133 | ) | (501 | ) | |||||||||||||||||||||||||||
Realized gains, net | $ | 4,207 | $ | 538 | $ | 260 | |||||||||||||||||||||||||||
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 Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | 827 | $ | 269 | $ | (387 | ) | ||||||||||||||||||||||||||
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 December 31, 2013 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||||||||||
Government obligations | $ | 19,698 | $ | — | $ | 19,698 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 49,811 | — | 49,811 | — | |||||||||||||||||||||||||||||
Foreign obligations | 503 | — | 503 | — | |||||||||||||||||||||||||||||
Commercial paper | 9,489 | — | 9,489 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,742 | 9,742 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 2,218 | 2,218 | — | — | |||||||||||||||||||||||||||||
Trading securities | 7,732 | 7,732 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 925 | 925 | — | — | |||||||||||||||||||||||||||||
Total | $ | 100,118 | $ | 20,617 | $ | 79,501 | $ | — | |||||||||||||||||||||||||
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 these investment categories each in the aggregate is appropriate. | |||||||||||||||||||||||||||||||||
There were no transfers between levels one and two during the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||
We measure the fair value of money market funds, equity securities, and ETFs 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 December 31, 2013 and December 31, 2012. |
Acquisitions_Goodwill_and_Othe
Acquisitions, Goodwill, and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets | ' | ||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets | |||||||||||||||||||||||||||||
2013 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, a 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 included $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, which is classified as "Holding gain upon acquisition of additional ownership of equity-method investments" in our Consolidated Statement of Income for the year ended December 31, 2013. | |||||||||||||||||||||||||||||
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 | 8,911 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (870 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
The allocation included 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 $8,911,000 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. | |||||||||||||||||||||||||||||
2012 and 2011 Acquisitions | |||||||||||||||||||||||||||||
We did not complete any acquisitions in 2012 and 2011. | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from January 1, 2012 to December 31, 2013: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 318,492 | |||||||||||||||||||||||||||
Sale of Morningstar Investor Relations and other businesses | (937 | ) | |||||||||||||||||||||||||||
Other, primarily currency translation | 3,290 | ||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 8,911 | ||||||||||||||||||||||||||||
Other, primarily currency translation | (3,306 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
We did not record any significant impairment losses in 2013, 2012, or 2011, as the estimated fair values of our reporting units exceeded their carrying values. We perform our annual impairment testing during the fourth quarter of each year. | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | $ | 30,621 | $ | (21,527 | ) | $ | 9,094 | 9 | |||||||||||||
Customer-related assets | 141,833 | (74,311 | ) | 67,522 | 12 | 132,798 | (63,005 | ) | 69,793 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (108 | ) | 132 | 20 | 240 | (96 | ) | 144 | 20 | |||||||||||||||||||
Technology-based assets | 80,489 | (50,673 | ) | 29,816 | 9 | 81,333 | (43,809 | ) | 37,524 | 9 | |||||||||||||||||||
Non-competition agreement | 1,661 | (1,571 | ) | 90 | 4 | 1,765 | (1,588 | ) | 177 | 4 | |||||||||||||||||||
Total intangible assets | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 | $ | 246,757 | $ | (130,025 | ) | $ | 116,732 | 10 | |||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Amortization expense | $ | 21,454 | $ | 23,944 | $ | 27,267 | |||||||||||||||||||||||
In 2011, we recorded an impairment loss of approximately $800,000 for an acquired intangible asset. We did not record any significant impairment losses in 2013 or 2012. | |||||||||||||||||||||||||||||
We amortize intangible assets using the straight-line method over their expected economic useful lives. | |||||||||||||||||||||||||||||
Based on acquisitions and divestitures completed through December 31, 2013, we expect intangible amortization expense for 2014 and subsequent years to be as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2014 | $ | 20,485 | |||||||||||||||||||||||||||
2015 | 19,659 | ||||||||||||||||||||||||||||
2016 | 15,101 | ||||||||||||||||||||||||||||
2017 | 10,565 | ||||||||||||||||||||||||||||
2018 | 8,568 | ||||||||||||||||||||||||||||
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. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||
Discontinued Operations | |||||||||||||
In October 2012, we sold Morningstar Investor Relations Services to UK-based Investis, a leading specialist in digital corporate communications for public companies. In October 2012, we also sold the Morningstar Australasia trade publishing assets to Sterling Publishing Pty Ltd. We have not reclassified the operating results of these businesses to discontinued operations, nor have we reclassified the related assets and liabilities to held for disposition, because these amounts are not significant to our consolidated statements or segment disclosures. | |||||||||||||
The following table summarizes the amounts included in our Consolidated Statements of Income for discontinued operations for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Gain on sales of businesses | $ | — | $ | 6,193 | $ | — | |||||||
Income tax expense | — | 1,005 | — | ||||||||||
Earnings from discontinued operations, net of tax | $ | — | $ | 5,188 | $ | — | |||||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 12 Months Ended | ||||||||
Dec. 31, 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 December 31 | |||||||||
$0 | 2013 | 2012 | |||||||
Investment in MJKK | $ | 21,782 | $ | 20,540 | |||||
Other equity method investments | 6,166 | 6,288 | |||||||
Investments accounted for using the cost method | 10,766 | 8,477 | |||||||
Total investments in unconsolidated entities | $ | 38,714 | $ | 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 Osaka Stock Exchange, “Hercules Market,” using the ticker 4765. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: | |||||||||
As of December 31 | |||||||||
2013 | 2012 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 9,824,068 | ¥ | 3,109,579 | |||||
Equivalent U.S. dollars ($000) | $ | 94,999 | $ | 36,227 | |||||
Other Equity Method Investments. As of December 31, 2013 and 2012, other equity method investments include our investments 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 December 31, 2013 and 2012. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of December 31, 2013 and 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 the remaining 76% interest in Morningstar Sweden, increasing our ownership to 100%. See Note 6 for additional information concerning our acquisition of Morningstar Sweden. | |||||||||
We did not record any impairment losses on our equity method investments in 2013, 2012, or 2011. | |||||||||
Cost Method Investments. As of December 31, 2013 and December 31, 2012, our cost method investments consist mainly of minority investments in HelloWallet LLC (HelloWallet) 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 2013, 2012, or 2011. | |||||||||
Property_Equipment_and_Capital
Property, Equipment, and Capitalized Software | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Property, Equipment, and Capitalized Software | ' | ||||||||||||
Property, Equipment, and Capitalized Software | |||||||||||||
The following table shows our property, equipment, and capitalized software summarized by major category: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Computer equipment | $ | 47,830 | $ | 42,312 | |||||||||
Capitalized software | 50,360 | 39,643 | |||||||||||
Furniture and fixtures | 23,259 | 22,804 | |||||||||||
Leasehold improvements | 52,512 | 51,333 | |||||||||||
Telephone equipment | 2,032 | 1,951 | |||||||||||
Construction in progress | 35,159 | 13,489 | |||||||||||
Property, equipment, and capitalized software, at cost | 211,152 | 171,532 | |||||||||||
Less accumulated depreciation | (106,166 | ) | (87,510 | ) | |||||||||
Property, equipment, and capitalized software, net | $ | 104,986 | $ | 84,022 | |||||||||
The following table shows the amount of capitalized software development costs included in construction in progress: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Capitalized software development costs not yet placed into service | $ | 11,345 | $ | 6,478 | |||||||||
The following table summarizes our depreciation expense: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense | $ | 24,239 | $ | 19,152 | $ | 15,646 | |||||||
Operating_Leases
Operating Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Leases, Operating [Abstract] | ' | ||||||||||||
Operating Leases | ' | ||||||||||||
Operating Leases | |||||||||||||
The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: | |||||||||||||
Minimum Future Rental Commitments | $0 | ||||||||||||
2014 | $ | 18,987 | |||||||||||
2015 | 17,656 | ||||||||||||
2016 | 16,918 | ||||||||||||
2017 | 16,001 | ||||||||||||
2018 | 13,908 | ||||||||||||
Thereafter | 42,592 | ||||||||||||
Total | $ | 126,062 | |||||||||||
The following table summarizes our rent expense including taxes, insurance, and other operating costs: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Rent expense | $ | 22,169 | $ | 20,736 | $ | 20,122 | |||||||
Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Deferred rent | $ | 26,157 | $ | 27,783 | |||||||||
Liability for Vacant Office Space | |||||||||||||
We include our liability for vacant office space in "Accounts payable and accrued liabilities" and "Other long-term liabilities," as appropriate, on our Consolidated Balance Sheets. The following table shows the change in our liability for vacant office space from December 31, 2011 to December 31, 2013: | |||||||||||||
Liability for Vacant Office Space | $0 | ||||||||||||
Balance as of December 31, 2011 | $ | 919 | |||||||||||
Reduction of liability for lease and other related payments | (774 | ) | |||||||||||
Balance as of December 31, 2012 | 145 | ||||||||||||
Reduction of liability for lease and other related payments | (14 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 131 | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 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 December 31 | |||||||||||||||||||||||||||
0 | 2013 | ||||||||||||||||||||||||||
Shares available for future grants | 4,501 | ||||||||||||||||||||||||||
Accounting for Stock-Based Compensation Awards | |||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Restricted stock units | $ | 14,163 | $ | 13,451 | $ | 12,765 | |||||||||||||||||||||
Restricted stock | 388 | 5,013 | 2,196 | ||||||||||||||||||||||||
Stock options | 492 | 441 | 342 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 15,043 | $ | 18,905 | $ | 15,303 | |||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 4,027 | $ | 3,686 | $ | 3,535 | |||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 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 | $ | 31,306 | 33 | ||||||||||||||||||||||||
Restricted stock | 517 | 16 | |||||||||||||||||||||||||
Stock options | 585 | 16 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 32,408 | 32 | ||||||||||||||||||||||||
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. We adjust the stock-based compensation expense during 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 granted to employees generally 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 past three years: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs Outstanding - January 1, 2011 | 777,666 | 45,189 | 822,855 | $ | 47.14 | ||||||||||||||||||||||
Granted | 292,398 | — | 292,398 | 57.36 | |||||||||||||||||||||||
Dividend equivalents | 2,673 | — | 2,673 | 48.57 | |||||||||||||||||||||||
Vested | (256,623 | ) | — | (256,623 | ) | 48.28 | |||||||||||||||||||||
Vested but deferred | (1,753 | ) | 1,753 | — | — | ||||||||||||||||||||||
Issued | — | (26,866 | ) | (26,866 | ) | 46.69 | |||||||||||||||||||||
Forfeited | (73,318 | ) | — | (73,318 | ) | 47.59 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2011 | 741,043 | 20,076 | 761,119 | 50.66 | |||||||||||||||||||||||
Granted | 341,282 | — | 341,282 | 56.26 | |||||||||||||||||||||||
Dividend equivalents | 6,405 | 130 | 6,535 | 52.02 | |||||||||||||||||||||||
Vested | (270,695 | ) | — | (270,695 | ) | 50.12 | |||||||||||||||||||||
Vested but deferred | (892 | ) | 892 | — | — | ||||||||||||||||||||||
Issued | — | (2,316 | ) | (2,316 | ) | 73.28 | |||||||||||||||||||||
Forfeited | (89,998 | ) | — | (89,998 | ) | 50.84 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2012 | 727,145 | 18,782 | 745,927 | 53.37 | |||||||||||||||||||||||
Granted | 287,848 | — | 287,848 | 72.04 | |||||||||||||||||||||||
Dividend equivalents | 2,773 | 157 | 2,930 | 57.39 | |||||||||||||||||||||||
Vested | (278,549 | ) | — | (278,549 | ) | 50.41 | |||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (59,215 | ) | — | (59,215 | ) | 57.58 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2013 | 680,002 | 16,682 | 696,684 | 62.02 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
In conjunction with the Realpoint acquisition 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 share agreements prepared in conjunction with the Realpoint acquisition, we account for the grant of restricted shares 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. The stock-based compensation expense recorded in 2012 and 2011 includes approximately $3,238,000 and $396,000, respectively, of expense recognized upon the accelerated vesting of restricted stock. We have assumed that all of the remaining restricted stock will ultimately vest, and therefore we 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 outstanding options granted under the 2004 Stock Incentive Plan have a premium price 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. | |||||||||||||||||||||||||||
In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: | |||||||||||||||||||||||||||
Assumptions for Black-Scholes Option Pricing Model | |||||||||||||||||||||||||||
Expected life (years): | 7.4 | ||||||||||||||||||||||||||
Volatility factor: | 35.1 | % | |||||||||||||||||||||||||
Dividend yield: | 0.35 | % | |||||||||||||||||||||||||
Interest rate: | 2.87 | % | |||||||||||||||||||||||||
The following tables summarize stock option activity in the past three years 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. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | 648,885 | $ | 18.91 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (250 | ) | 21.48 | (650 | ) | 14.7 | — | — | |||||||||||||||||||
Exercised | (102,886 | ) | 21.09 | (115,514 | ) | 20.19 | (250,026 | ) | 19.25 | ||||||||||||||||||
Options outstanding—end of year | 179,559 | 21.47 | 282,695 | 20.55 | 398,859 | 19.72 | |||||||||||||||||||||
Options exercisable—end of year | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | ||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 391,784 | $ | 28.98 | 818,552 | $ | 22.76 | 1,207,540 | $ | 17.09 | ||||||||||||||||||
Granted | — | — | — | — | 92,201 | 57.42 | |||||||||||||||||||||
Canceled | (1,352 | ) | 16.19 | (22,330 | ) | 39.75 | (1,960 | ) | 16.04 | ||||||||||||||||||
Exercised | (136,460 | ) | 16.84 | (404,438 | ) | 16.6 | (479,229 | ) | 16.17 | ||||||||||||||||||
Options outstanding—end of year | 253,972 | 36.48 | 391,784 | 28.98 | 818,552 | 22.76 | |||||||||||||||||||||
Options exercisable—end of year | 219,449 | $ | 33.18 | 337,684 | $ | 24.42 | 726,351 | $ | 18.36 | ||||||||||||||||||
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: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 12,801 | $ | 22,526 | $ | 29,899 | |||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of December 31, 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) | |||||||||||||||||||||||||||
$14.70 | 285 | 0.93 | $ | 14.7 | $ | 18 | 285 | 0.93 | $ | 14.7 | $ | 18 | |||||||||||||||
$21.40 - $48.90 | 361,571 | 1.17 | 24.88 | 19,238 | 361,571 | 1.17 | 24.88 | 19,238 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.52 | 57.46 | 1,479 | 37,152 | 7.52 | 57.45 | 710 | |||||||||||||||||||
$14.70 - $59.35 | 433,531 | 2.22 | 30.26 | $ | 20,735 | 399,008 | 1.76 | 27.91 | $ | 19,966 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$14.70 - $59.35 | 433,531 | 2.22 | $ | 30.26 | $ | 20,735 | |||||||||||||||||||||
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 December 31, 2013. The intrinsic value is based on our closing stock price of $78.09 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 for the past three years: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 5,898 | $ | 7,210 | $ | 9,525 | |||||||||||||||||||||
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Defined Contribution Plan [Abstract] | ' | ||||||||||||
Defined Contribution Plan | ' | ||||||||||||
Defined Contribution Plan | |||||||||||||
We sponsor a defined contribution 401(k) plan, which allows our U.S.-based employees to voluntarily contribute pre-tax dollars up to a maximum amount allowable by the U.S. Internal Revenue Service. In 2013, 2012, and 2011, we made matching contributions to our 401(k) plan in the United States in an amount equal to 75 cents for every dollar of an employee's contribution, up to a maximum of 7% of the employee's compensation in the pay period. | |||||||||||||
The following table summarizes our matching contributions: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
401(k) matching contributions | $ | 6,879 | $ | 6,642 | $ | 5,601 | |||||||
NonOperating_Income
Non-Operating Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Nonoperating Income (Expense) [Abstract] | ' | ||||||||||||
Non-Operating Income | ' | ||||||||||||
Non-Operating Income | |||||||||||||
The following table presents the components of our net non-operating income: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Interest income | $ | 2,940 | $ | 5,464 | $ | 3,679 | |||||||
Interest expense | (228 | ) | (311 | ) | (1,318 | ) | |||||||
Gain on sale of investments, net | 4,207 | 538 | 260 | ||||||||||
Holding gain upon acquisition of additional ownership of equity-method investments | 3,635 | — | — | ||||||||||
Other expense, net | (3,198 | ) | (2,734 | ) | (912 | ) | |||||||
Non-operating income, net | $ | 7,356 | $ | 2,957 | $ | 1,709 | |||||||
Interest income primarily reflects interest from our investment portfolio. Interest income in 2012 included approximately $700,000 of interest income related to a $1,000,000 of business tax refund for prior years recorded in 2012. In 2011, interest expense included approximately $900,000 related to $1,400,000 of business tax expense for prior years recorded in 2011. | |||||||||||||
Other expense, net includes foreign currency exchange gains and losses arising from the ordinary course of business related to our U.S. and non-U.S. operations and royalty income from MJKK. In 2012, other expense, net included the loss on the sale of our investment in Bundle Corporation of $2,034,000. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||
Income Tax Expense and Effective Tax Rate | ||||||||||||||||||||||
The following table shows our income tax expense and our effective tax rate for the years ending December 31, 2013, 2012, and 2011: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 178,010 | $ | 153,625 | $ | 140,124 | ||||||||||||||||
Equity in net income of unconsolidated entities | 1,428 | 2,027 | 1,848 | |||||||||||||||||||
Net (income) loss attributable to the noncontrolling interest | 122 | 117 | 43 | |||||||||||||||||||
Total | $ | 179,560 | $ | 155,769 | $ | 142,015 | ||||||||||||||||
Income tax expense | $ | 56,031 | $ | 52,878 | $ | 43,658 | ||||||||||||||||
Effective tax rate | 31.2 | % | 33.9 | % | 30.7 | % | ||||||||||||||||
The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($000, except percentages) | Amount | % | Amount | % | Amount | % | ||||||||||||||||
Income tax expense at U.S. federal rate | $ | 62,845 | 35 | % | $ | 54,519 | 35 | % | $ | 49,705 | 35 | % | ||||||||||
State income taxes, net of federal income tax benefit | 3,029 | 1.7 | 1,510 | 1 | 1,376 | 1 | ||||||||||||||||
Stock-based compensation activity | 254 | 0.1 | 516 | 0.3 | 440 | 0.3 | ||||||||||||||||
Non-U.S. withholding taxes, net of federal income tax effect, and foreign tax credits | 310 | 0.2 | 307 | 0.2 | 346 | 0.2 | ||||||||||||||||
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses | (1,842 | ) | (1.0 | ) | (630 | ) | (0.4 | ) | 394 | 0.3 | ||||||||||||
Difference between U.S. federal statutory and foreign tax rates | (2,513 | ) | (1.4 | ) | (2,777 | ) | (1.8 | ) | (2,393 | ) | (1.7 | ) | ||||||||||
Change in unrecognized tax benefits | (211 | ) | (0.1 | ) | 967 | 0.6 | 3,126 | 2.2 | ||||||||||||||
Credits and incentives | (4,374 | ) | (2.5 | ) | (1,494 | ) | (1.0 | ) | (7,734 | ) | (5.4 | ) | ||||||||||
Recognition of deferred tax assets | (1,448 | ) | (0.8 | ) | — | — | (1,778 | ) | (1.3 | ) | ||||||||||||
Other - net | (19 | ) | — | (40 | ) | — | 176 | 0.1 | ||||||||||||||
Total income tax expense | $ | 56,031 | 31.2 | % | $ | 52,878 | 33.9 | % | $ | 43,658 | 30.7 | % | ||||||||||
Income tax expense consists of the following: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
Current tax expense: | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | $ | 42,808 | $ | 38,821 | $ | 41,520 | ||||||||||||||||
State | 3,882 | 1,997 | 1,808 | |||||||||||||||||||
Non-U.S. | 10,456 | 5,719 | 5,756 | |||||||||||||||||||
Current tax expense | 57,146 | 46,537 | 49,084 | |||||||||||||||||||
Deferred tax expense (benefit): | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | 2,630 | 6,287 | (1,011 | ) | ||||||||||||||||||
State | 814 | 334 | (242 | ) | ||||||||||||||||||
Non-U.S. | (4,559 | ) | (280 | ) | (4,173 | ) | ||||||||||||||||
Deferred tax expense (benefit), net | (1,115 | ) | 6,341 | (5,426 | ) | |||||||||||||||||
Income tax expense | $ | 56,031 | $ | 52,878 | $ | 43,658 | ||||||||||||||||
The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
U.S. | $ | 144,065 | $ | 128,920 | $ | 123,390 | ||||||||||||||||
Non-U.S. | 33,945 | 24,705 | 16,734 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 178,010 | $ | 153,625 | $ | 140,124 | ||||||||||||||||
Deferred Tax Assets and Liabilities | ||||||||||||||||||||||
We recognize deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and their tax basis. The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Stock-based compensation expense | $ | 3,479 | $ | 4,019 | ||||||||||||||||||
Accrued liabilities | 9,805 | 8,402 | ||||||||||||||||||||
Net operating loss carryforwards - U.S. federal and state | 851 | 930 | ||||||||||||||||||||
Net operating loss carryforwards - Non-U.S. | 9,229 | 12,386 | ||||||||||||||||||||
Research and development | — | 246 | ||||||||||||||||||||
Deferred royalty revenue | 366 | 383 | ||||||||||||||||||||
Allowance for doubtful accounts | 758 | 515 | ||||||||||||||||||||
Deferred rent | 8,673 | 9,031 | ||||||||||||||||||||
Other | — | 846 | ||||||||||||||||||||
Total deferred tax assets | 33,161 | 36,758 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Acquired intangible assets | (12,967 | ) | (14,535 | ) | ||||||||||||||||||
Property, equipment, and capitalized software | (15,525 | ) | (14,615 | ) | ||||||||||||||||||
Unrealized exchange gains, net | (395 | ) | (444 | ) | ||||||||||||||||||
Prepaid expenses | (4,299 | ) | (3,694 | ) | ||||||||||||||||||
Investments in unconsolidated entities | (12,009 | ) | (9,905 | ) | ||||||||||||||||||
Other | (373 | ) | — | |||||||||||||||||||
Total deferred tax liabilities | (45,568 | ) | (43,193 | ) | ||||||||||||||||||
Net deferred tax asset (liability) before valuation allowance | (12,407 | ) | (6,435 | ) | ||||||||||||||||||
Valuation allowance | (7,456 | ) | (11,407 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (19,863 | ) | $ | (17,842 | ) | ||||||||||||||||
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Deferred tax asset, net - current | $ | 3,892 | $ | 3,741 | ||||||||||||||||||
Deferred tax liability, net - non-current | (23,755 | ) | (21,583 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (19,863 | ) | $ | (17,842 | ) | ||||||||||||||||
The following table summarizes our U.S. net operating loss (NOL) carryforwards: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Expiration Date | Expiration Date | |||||||||||||||||||||
U.S. federal NOLs subject to expiration dates | $ | 2,136 | 12/31/23 | $ | 2,362 | 12/31/23 | ||||||||||||||||
Our U.S. federal NOL carryforward as of December 31, 2013 of $2,136,000 is subject to limitations on the use of the NOL imposed by the U.S. Internal Revenue Code, and therefore is limited to approximately $225,000 per year. | ||||||||||||||||||||||
The following table summarizes our NOL carryforwards for our non-U.S. operations: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Non-U.S. NOLs subject to expiration dates from 2014 through 2032 | $ | 5,314 | $ | 6,064 | ||||||||||||||||||
Non-U.S. NOLs with no expiration date | 40,054 | 44,504 | ||||||||||||||||||||
Total | $ | 45,368 | $ | 50,568 | ||||||||||||||||||
Non-U.S. NOLs not subject to valuation allowances | $ | 8,759 | $ | 4,031 | ||||||||||||||||||
The decrease in non-U.S. NOL carryforwards as of December 31, 2013 compared with 2013 primarily reflects the utilization of NOL carryforwards in our non-U.S. operations. | ||||||||||||||||||||||
We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries aggregating approximately $112,600,000 as of December 31, 2013, because these earnings have been permanently reinvested. It is not practicable to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. | ||||||||||||||||||||||
In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We have recorded a valuation allowance against all but approximately $8,759,000 of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized. | ||||||||||||||||||||||
Uncertain Tax Positions | ||||||||||||||||||||||
We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. In the normal course of business we are subject to examination by tax authorities throughout the world. The open tax years for our U.S. Federal tax returns and most state tax returns include the years 2008 to the present. In non-U.S. jurisdictions, the statute of limitations generally extends to years prior to 2005. | ||||||||||||||||||||||
We are currently under audit by federal, state and local tax authorities in the United States as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these U.S. federal, state, local, and non-U.S. audits will conclude in 2014. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. | ||||||||||||||||||||||
As of December 31, 2013, our Consolidated Balance Sheet included a current liability of $6,211,000 and a non-current liability of $6,012,000 for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | ||||||||||||||||||||||
The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Gross unrecognized tax benefits - beginning of the year | $ | 12,699 | $ | 12,189 | ||||||||||||||||||
Increases as a result of tax positions taken during a prior-year period | 791 | 445 | ||||||||||||||||||||
Decreases as a result of tax positions taken during a prior-year period | (146 | ) | (1,153 | ) | ||||||||||||||||||
Increases as a result of tax positions taken during the current period | 2,887 | 2,008 | ||||||||||||||||||||
Decreases relating to settlements with tax authorities | (2,779 | ) | (299 | ) | ||||||||||||||||||
Reductions as a result of lapse of the applicable statute of limitations | (494 | ) | (491 | ) | ||||||||||||||||||
Gross unrecognized tax benefits - end of the year | $ | 12,958 | $ | 12,699 | ||||||||||||||||||
In 2013, we recorded a net increase of $3,532,000 of gross unrecognized tax benefits before settlements and lapses of statutes of limitations, of which $3,227,000 increased our income tax expense by $2,690,000. In addition, we reduced our unrecognized tax benefits by $3,275,000 for settlements and lapses of statutes of limitations, of which $2,785,000 decreased our income tax expense by $2,301,000. | ||||||||||||||||||||||
As of December 31, 2013, we had $12,958,000 of gross unrecognized tax benefits, of which $10,557,000, if recognized, would reduce our effective income tax rate and decrease our income tax expense by $9,262,000. | ||||||||||||||||||||||
We record interest and penalties related to uncertain tax positions as part of our income tax expense. The following table summarizes our gross liability for interest and penalties: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Liabilities for interest and penalties | $ | 1,865 | $ | 2,232 | ||||||||||||||||||
We recorded the decrease in the liability, net of any tax benefits, to income tax expense in our Consolidated Statement of Income in 2013. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 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 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. A bench trial related to the Receiver’s claims against Morningstar was held between January 13 and January 28, 2014. At trial, the Receiver claimed that Morningstar is liable under a contribution theory for all or part of a $14.5 million disgorgement judgment that the SEC obtained against the entities and individuals in receivership. Morningstar contested liability and damages at trial and believes it is not liable for any amount. The parties will file post-trial proposed findings of fact and conclusions of law in early March 2014. It is not known when the court will issue its decision. | |
We believe the allegations against Morningstar by the Klass plaintiffs and the Receiver have no legal or factual basis and we plan to continue 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. 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. | |
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. | |
We record accrued liabilities for litigation and regulatory matters when those matters represent loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, we do not establish an accrued liability. As a litigation or regulatory matter develops, we evaluate on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. | |
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 | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Quarterly Dividend and Share Repurchase Programs | ' | ||||||||
Share Repurchase Program | |||||||||
In September 2010, the board of directors approved a share repurchase program that authorizes the repurchase shares of our outstanding common stock. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate. As of December 31, 2013, we had repurchased a total of 7,068,006 shares for $449,784,000 under this authorization. As of February 21, 2014, we had repurchased a total of approximately 7,350,000 shares, and approximately $230,000,000 remained available for future repurchases. | |||||||||
The following table summarizes the board approvals for increases to the program and the total available under the program: | |||||||||
Date | Increase | Total program | |||||||
Sep-10 | $ | 100 | million | $ | 100 | million | |||
Dec-11 | $ | 200 | million | $ | 300 | million | |||
Dec-12 | $ | 200 | million | $ | 500 | million | |||
Dec-13 | $ | 200 | million | $ | 700 | million |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
In February 2014, our board of directors declared a quarterly dividend of 17 cents per share. The dividend is payable on April 30, 2014 to shareholders of record as of April 11, 2014. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or an Investment in a Foreign Entity. ASU No. 2013-05 specifies that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, the amendments in this update clarify that the sale of an investment in a foreign entity includes both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that results in an acquirer obtaining control of an acquire in which it held an equity interest immediately before the acquisition date (sometimes referred to as a step acquisition). The currency translation adjustment should be released into net income upon the occurrence of those events. For Morningstar, ASU No. 2013-05 is effective prospectively for events occurring on or after January 1, 2014. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). This update requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for an net operating loss (NOL) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The update does not require new recurring disclosures. For Morningstar, ASU No. 2013-11 is effective prospectively as of January 1, 2014. | |
We do not expect the provisions of ASU No. 2013-05 and ASU No. 2013-11 to have a material impact on our consolidated financial statements. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | ' | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (unaudited) | ||||||||||||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||
(in thousands except per share amounts) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||
Revenue | $ | 160,759 | $ | 165,968 | $ | 160,952 | $ | 170,609 | $ | 168,856 | $ | 175,428 | $ | 173,482 | $ | 180,500 | ||||||||||||||||||
Total operating expense (1) | 130,360 | 124,832 | 121,088 | 131,340 | 128,296 | 131,844 | 128,869 | 138,603 | ||||||||||||||||||||||||||
Operating income | 30,399 | 41,136 | 39,864 | 39,269 | 40,560 | 43,584 | 44,613 | 41,897 | ||||||||||||||||||||||||||
Non-operating income (expense), net | 659 | 995 | 1,880 | (577 | ) | 945 | 3,111 | 771 | 2,529 | |||||||||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | 31,058 | 42,131 | 41,744 | 38,692 | 41,505 | 46,695 | 45,384 | 44,426 | ||||||||||||||||||||||||||
Income tax expense | 11,511 | 14,744 | 15,186 | 11,437 | 12,427 | 15,955 | 14,265 | 13,384 | ||||||||||||||||||||||||||
Equity in net income (loss) of unconsolidated entities | 566 | 497 | 478 | 486 | 497 | 360 | 315 | 256 | ||||||||||||||||||||||||||
Consolidated net income from continuing operations | 20,113 | 27,884 | 27,036 | 27,741 | 29,575 | 31,100 | 31,434 | 31,298 | ||||||||||||||||||||||||||
Gain on sale of discontinued operations, net of tax | — | — | — | 5,188 | — | — | — | — | ||||||||||||||||||||||||||
Consolidated net income | 20,113 | 27,884 | 27,036 | 32,929 | 29,575 | 31,100 | 31,434 | 31,298 | ||||||||||||||||||||||||||
Net (income) loss attributable to the noncontrolling interests | 24 | 4 | 34 | 55 | 43 | 21 | 29 | 29 | ||||||||||||||||||||||||||
Net income attributable to Morningstar, Inc. | $ | 20,137 | $ | 27,888 | $ | 27,070 | $ | 32,984 | $ | 29,618 | $ | 31,121 | $ | 31,463 | $ | 31,327 | ||||||||||||||||||
Net income per share attributable to Morningstar, Inc. | ||||||||||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.4 | $ | 0.57 | $ | 0.56 | $ | 0.59 | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | ||||||||||||||||||
Discontinued operations | — | — | — | 0.11 | — | — | — | — | ||||||||||||||||||||||||||
$ | 0.4 | $ | 0.57 | $ | 0.56 | $ | 0.7 | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | |||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.4 | $ | 0.56 | $ | 0.56 | $ | 0.58 | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | ||||||||||||||||||
Discontinued operations | — | — | — | 0.11 | — | — | — | — | ||||||||||||||||||||||||||
$ | 0.4 | $ | 0.56 | $ | 0.56 | $ | 0.69 | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | |||||||||||||||||||
Dividends per common share: | ||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | — | $ | 0.295 | ||||||||||||||||||
Dividends paid per common share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.225 | $ | — | $ | 0.125 | $ | 0.125 | $ | 0.125 | ||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 49,938 | 49,195 | 47,975 | 46,913 | 46,406 | 46,400 | 46,080 | 45,756 | ||||||||||||||||||||||||||
Diluted | 50,758 | 49,856 | 48,481 | 47,511 | 46,814 | 46,853 | 46,519 | 46,211 | ||||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||
(1) Includes stock-based compensation expense of: | $ | 3,866 | $ | 3,734 | $ | 3,994 | $ | 7,311 | $ | 3,783 | $ | 3,954 | $ | 3,416 | $ | 3,890 | ||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. The assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest have been consolidated. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||
We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation. A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. | |||||||||||||
We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. | |||||||||||||
As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. | |||||||||||||
Comprehensive Income | ' | ||||||||||||
Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). We 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. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||
Reclassifications. Certain amounts reported in previous years have been reclassified to conform to the 2013 presentation. We now include development expense in the cost of revenue category, which we previously referred to as cost of goods sold. We previously reported development expense as a separate operating expense category. 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 2013 as compared with both 2012 and 2011, changes related to our more centralized organizational structure added approximately $14 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 $8 million and $6 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents. Cash and cash equivalents consist of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state at fair value the portion of our cash equivalents that are invested in money market funds, which are actively traded and have quoted market prices. | |||||||||||||
Investments | ' | ||||||||||||
Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. | |||||||||||||
• | Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. | ||||||||||||
• | Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
• | Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of fixed-income securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. | |||||||||||||
Effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements. | |||||||||||||
FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs as described below: | |||||||||||||
• | Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. | ||||||||||||
• | Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||
• | Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||
We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 5 in these Notes to our Consolidated Financial Statements. | |||||||||||||
The Fair Value Option for Financial Assets and Financial Liabilities. FASB ASC 825, Financial Instruments, permits entities the option to measure many financial instruments and certain other items at fair value with changes in fair value recognized in earnings each period. FASB ASC 825 allows the fair value option to be elected on an instrument-by-instrument basis when the asset or liability is initially recognized or when there's an event that gives rise to a new basis of accounting for that instrument. We do not apply this fair value option to any of our eligible assets. | |||||||||||||
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: | |||||||||||||
Concentration of Credit Risk Policy [Policy Text Block] | ' | ||||||||||||
Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2013, 2012, and 2011, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. | |||||||||||||
Property, Equipment, and Depreciation | ' | ||||||||||||
Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. | |||||||||||||
Computer Software and Internal Product Development Costs | ' | ||||||||||||
Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three years. Capitalized software development costs related to projects that have not been placed into service yet are included in our construction in progress balance. | |||||||||||||
The table below summarizes our capitalized software development costs for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Capitalized software development costs | $ | 8,142 | $ | 8,527 | $ | 5,315 | |||||||
Business Combinations | ' | ||||||||||||
Business Combinations. Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, and the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations on the acquisition date. | |||||||||||||
As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and values applicable for income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions and divestitures. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2013, 2012, and 2011. We did not record any significant impairment losses in 2013, 2012, and 2011. | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We recorded an impairment loss of approximately $800,000 in 2011. We did not record any impairment losses in 2013 or 2012. The impairment charge is included in our amortization expense on our Consolidated Statements of Income. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition, ASC 605-25, Revenue Recognition: Multiple Element Arrangements, and ASC 985-605, Software: Revenue Recognition. | |||||||||||||
We recognize revenue when all of the following conditions are met: | |||||||||||||
• | There is persuasive evidence of an arrangement, as evidenced by a signed contract; | ||||||||||||
• | Delivery of our products and services is a prerequisite for recognition of revenue. If arrangements include an acceptance provision, we generally begin recognizing revenue upon the receipt of customer acceptance; | ||||||||||||
• | The amount of fees to be paid by the customer is fixed or determinable; and | ||||||||||||
• | The collectibility of the fees is reasonably assured. | ||||||||||||
We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Equity Research, Premium Membership fees for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for CMBS, we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance of the transaction. | |||||||||||||
We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. | |||||||||||||
Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. | |||||||||||||
Our Retirement Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Retirement Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Retirement Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. | |||||||||||||
Some of our revenue arrangements with our customers combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. | |||||||||||||
We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. | |||||||||||||
Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided, which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. | |||||||||||||
Advertising Costs | ' | ||||||||||||
Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Advertising expense | $ | 6,939 | $ | 6,306 | $ | 8,210 | |||||||
Stock-Based Compensation Expense | ' | ||||||||||||
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation. Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, and stock options. We measure the fair value of our restricted stock units and restricted stock on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options granted in 2011, we estimated the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||
We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. | |||||||||||||
Liability for Sabbatical Leave | ' | ||||||||||||
Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, in general, Morningstar's full-time employees are eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25, Compensated Absences. We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave which is included in Accrued Compensation in our Consolidated Balance Sheet. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and the amounts used for income tax purposes in accordance with FASB ASC 740, Income Taxes. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements, and also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. | |||||||||||||
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. | |||||||||||||
Income per Share | ' | ||||||||||||
Income per Share. We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share. The difference between weighted average shares outstanding and diluted shares outstanding primarily reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two Class Method. Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. | |||||||||||||
ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. | |||||||||||||
Foreign Currency | ' | ||||||||||||
Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. | |||||||||||||
Segment Reporting | ' | ||||||||||||
Segment Information | |||||||||||||
In 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. We have revised our historical financial results to reflect this change. | |||||||||||||
Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. | |||||||||||||
The accounting policies for our reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies”. We evaluate the performance of our reporting segment based on revenue and operating income. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Advertising Expense [Table Text Block] | ' | ||||||||||||
The table below summarizes our advertising expense for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Advertising expense | $ | 6,939 | $ | 6,306 | $ | 8,210 | |||||||
Capitalized Software Development Costs [Table Text Block] | ' | ||||||||||||
The table below summarizes our capitalized software development costs for the past three years: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Capitalized software development costs | $ | 8,142 | $ | 8,527 | $ | 5,315 | |||||||
Income_Per_Share_Tables
Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | |||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 123,529 | $ | 108,079 | $ | 98,357 | |||||||
Less: Distributed earnings available to participating securities | (10 | ) | (41 | ) | (40 | ) | |||||||
Less: Undistributed earnings available to participating securities | (36 | ) | (47 | ) | (259 | ) | |||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,991 | $ | 98,058 | |||||||
Weighted average common shares outstanding | 46,158 | 48,497 | 50,032 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 2.68 | $ | 2.12 | $ | 1.96 | |||||||
Discontinued operations | — | 0.11 | — | ||||||||||
Total | $ | 2.68 | $ | 2.23 | $ | 1.96 | |||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,991 | $ | 98,058 | |||||||
Add: Undistributed earnings allocated to participating securities | 36 | 47 | 259 | ||||||||||
Less: Undistributed earnings reallocated to participating securities | (36 | ) | (46 | ) | (254 | ) | |||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 123,483 | $ | 107,992 | $ | 98,063 | |||||||
Weighted average common shares outstanding | 46,158 | 48,497 | 50,032 | ||||||||||
Net effect of dilutive stock options and restricted stock units | 333 | 651 | 956 | ||||||||||
Weighted average common shares outstanding for computing diluted income per share | 46,491 | 49,148 | 50,988 | ||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 2.66 | $ | 2.1 | $ | 1.92 | |||||||
Discontinued operations | — | 0.1 | — | ||||||||||
Total | $ | 2.66 | $ | 2.2 | $ | 1.92 | |||||||
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 from both continuing operations and net earnings because their inclusion would have been anti-dilutive: | |||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||
Weighted average stock options | — | 83 | 55 | ||||||||||
Weighted average restricted stock units | 17 | 7 | — | ||||||||||
Weighted average restricted stock | — | — | — | ||||||||||
Total | 17 | 90 | 55 | ||||||||||
These stock options and restricted stock units could be included in the calculation in the future. |
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
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 | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Investment information | 555,642 | 526,147 | 498,265 | ||||||||||
Investment management | 142,624 | 132,141 | 133,135 | ||||||||||
Consolidated revenue | $ | 698,266 | $ | 658,288 | $ | 631,400 | |||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | ||||||||||||
External revenue by geographical area | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
United States | $ | 500,730 | $ | 466,947 | $ | 446,470 | |||||||
United Kingdom | 56,298 | 56,794 | 53,427 | ||||||||||
Continental Europe | 57,580 | 49,844 | 49,507 | ||||||||||
Australia | 35,289 | 38,229 | 39,761 | ||||||||||
Canada | 31,845 | 30,664 | 27,808 | ||||||||||
Asia | 13,860 | 13,765 | 13,188 | ||||||||||
Other | 2,664 | 2,045 | 1,239 | ||||||||||
Total International | 197,536 | 191,341 | 184,930 | ||||||||||
Consolidated revenue | $ | 698,266 | $ | 658,288 | $ | 631,400 | |||||||
Long-lived assets by geographical area | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
United States | $ | 84,321 | $ | 60,371 | |||||||||
United Kingdom | 6,873 | 7,435 | |||||||||||
Continental Europe | 1,873 | 2,356 | |||||||||||
Australia | 1,051 | 1,402 | |||||||||||
Canada | 1,275 | 1,773 | |||||||||||
Asia | 9,479 | 10,529 | |||||||||||
Other | 114 | 156 | |||||||||||
Total International | 20,665 | 23,651 | |||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 104,986 | $ | 84,022 | |||||||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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 December 31 | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 91,461 | $ | 125,786 | |||||||||||||||||||||||||||||
Held-to-maturity | 31,214 | $ | 26,357 | ||||||||||||||||||||||||||||||
Trading securities | 7,732 | $ | 5,386 | ||||||||||||||||||||||||||||||
Total | $ | 130,407 | $ | 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 December 31, 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 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | $ | 40,669 | $ | 29 | $ | (608 | ) | $ | 40,090 | |||||||||||||||
Corporate bonds | 49,913 | 22 | (124 | ) | 49,811 | 49,339 | 36 | (292 | ) | 49,083 | |||||||||||||||||||||||
Foreign obligations | 505 | — | (2 | ) | 503 | 2,437 | 1 | (19 | ) | 2,419 | |||||||||||||||||||||||
Commercial paper | 9,482 | 7 | — | 9,489 | 2,000 | — | — | 2,000 | |||||||||||||||||||||||||
Equity securities and exchange-traded funds | 8,872 | 1,011 | (141 | ) | 9,742 | 19,613 | 1,359 | (323 | ) | 20,649 | |||||||||||||||||||||||
Mutual funds | 2,095 | 221 | (98 | ) | 2,218 | 10,499 | 1,092 | (46 | ) | 11,545 | |||||||||||||||||||||||
Total | $ | 90,560 | $ | 1,269 | $ | (368 | ) | 91,461 | $ | 124,557 | $ | 2,517 | $ | (1,288 | ) | $ | 125,786 | ||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 31,214 | $ | — | $ | — | $ | 31,214 | $ | 26,357 | $ | — | $ | — | $ | 26,357 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||||||||||
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 December 31, 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 December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 45,486 | $ | 45,402 | $ | 87,599 | $ | 86,784 | |||||||||||||||||||||||||
Due in one to two years | 34,107 | 34,099 | 6,846 | 6,808 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 10,967 | 11,960 | 30,112 | 32,194 | |||||||||||||||||||||||||||||
Total | $ | 90,560 | $ | 91,461 | $ | 124,557 | $ | 125,786 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 31,210 | $ | 31,210 | $ | 26,352 | $ | 26,352 | |||||||||||||||||||||||||
Due in one to three years | 4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||
Total | $ | 31,214 | $ | 31,214 | $ | 26,357 | $ | 26,357 | |||||||||||||||||||||||||
Schedule of Realized Gain (Loss) | ' | ||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Realized gains | $ | 5,550 | $ | 1,671 | $ | 761 | |||||||||||||||||||||||||||
Realized losses | (1,343 | ) | (1,133 | ) | (501 | ) | |||||||||||||||||||||||||||
Realized gains, net | $ | 4,207 | $ | 538 | $ | 260 | |||||||||||||||||||||||||||
Unrealized Gain Loss On Trading Securities | ' | ||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | 827 | $ | 269 | $ | (387 | ) | ||||||||||||||||||||||||||
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 December 31, 2013 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||||||||||
Government obligations | $ | 19,698 | $ | — | $ | 19,698 | $ | — | |||||||||||||||||||||||||
Corporate bonds | 49,811 | — | 49,811 | — | |||||||||||||||||||||||||||||
Foreign obligations | 503 | — | 503 | — | |||||||||||||||||||||||||||||
Commercial paper | 9,489 | — | 9,489 | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,742 | 9,742 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 2,218 | 2,218 | — | — | |||||||||||||||||||||||||||||
Trading securities | 7,732 | 7,732 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 925 | 925 | — | — | |||||||||||||||||||||||||||||
Total | $ | 100,118 | $ | 20,617 | $ | 79,501 | $ | — | |||||||||||||||||||||||||
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 | $ | — | |||||||||||||||||||||||||
Acquisitions_Goodwill_and_Othe1
Acquisitions, Goodwill, and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Business Acquisitions | ' | ||||||||||||||||||||||||||||
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 | 8,911 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (870 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||||||||||||||||||||||||||
The allocation included 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 January 1, 2012 to December 31, 2013: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 318,492 | |||||||||||||||||||||||||||
Sale of Morningstar Investor Relations and other businesses | (937 | ) | |||||||||||||||||||||||||||
Other, primarily currency translation | 3,290 | ||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 8,911 | ||||||||||||||||||||||||||||
Other, primarily currency translation | (3,306 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | $ | 30,621 | $ | (21,527 | ) | $ | 9,094 | 9 | |||||||||||||
Customer-related assets | 141,833 | (74,311 | ) | 67,522 | 12 | 132,798 | (63,005 | ) | 69,793 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (108 | ) | 132 | 20 | 240 | (96 | ) | 144 | 20 | |||||||||||||||||||
Technology-based assets | 80,489 | (50,673 | ) | 29,816 | 9 | 81,333 | (43,809 | ) | 37,524 | 9 | |||||||||||||||||||
Non-competition agreement | 1,661 | (1,571 | ) | 90 | 4 | 1,765 | (1,588 | ) | 177 | 4 | |||||||||||||||||||
Total intangible assets | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 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: | |||||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Amortization expense | $ | 21,454 | $ | 23,944 | $ | 27,267 | |||||||||||||||||||||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||||||||||||||
Based on acquisitions and divestitures completed through December 31, 2013, we expect intangible amortization expense for 2014 and subsequent years to be as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2014 | $ | 20,485 | |||||||||||||||||||||||||||
2015 | 19,659 | ||||||||||||||||||||||||||||
2016 | 15,101 | ||||||||||||||||||||||||||||
2017 | 10,565 | ||||||||||||||||||||||||||||
2018 | 8,568 | ||||||||||||||||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||||||||
The following table summarizes the amounts included in our Consolidated Statements of Income for discontinued operations for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Gain on sales of businesses | $ | — | $ | 6,193 | $ | — | |||||||
Income tax expense | — | 1,005 | — | ||||||||||
Earnings from discontinued operations, net of tax | $ | — | $ | 5,188 | $ | — | |||||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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 December 31 | |||||||||
$0 | 2013 | 2012 | |||||||
Investment in MJKK | $ | 21,782 | $ | 20,540 | |||||
Other equity method investments | 6,166 | 6,288 | |||||||
Investments accounted for using the cost method | 10,766 | 8,477 | |||||||
Total investments in unconsolidated entities | $ | 38,714 | $ | 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 December 31 | |||||||||
2013 | 2012 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 9,824,068 | ¥ | 3,109,579 | |||||
Equivalent U.S. dollars ($000) | $ | 94,999 | $ | 36,227 | |||||
Property_Equipment_and_Capital1
Property, Equipment, and Capitalized Software Property, Equipment, and Capitalized Software (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||||
Schedule of Property, Equipment, and Capitalized Software by Major Category | ' | ||||||||||||
The following table shows our property, equipment, and capitalized software summarized by major category: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Computer equipment | $ | 47,830 | $ | 42,312 | |||||||||
Capitalized software | 50,360 | 39,643 | |||||||||||
Furniture and fixtures | 23,259 | 22,804 | |||||||||||
Leasehold improvements | 52,512 | 51,333 | |||||||||||
Telephone equipment | 2,032 | 1,951 | |||||||||||
Construction in progress | 35,159 | 13,489 | |||||||||||
Property, equipment, and capitalized software, at cost | 211,152 | 171,532 | |||||||||||
Less accumulated depreciation | (106,166 | ) | (87,510 | ) | |||||||||
Property, equipment, and capitalized software, net | $ | 104,986 | $ | 84,022 | |||||||||
Capitalized Software Not Yet Placed In Service Included In Construction In Progress Balance | ' | ||||||||||||
The following table shows the amount of capitalized software development costs included in construction in progress: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Capitalized software development costs not yet placed into service | $ | 11,345 | $ | 6,478 | |||||||||
Summary of Depreciation Expense | ' | ||||||||||||
The following table summarizes our depreciation expense: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Depreciation expense | $ | 24,239 | $ | 19,152 | $ | 15,646 | |||||||
Operating_Leases_Operating_Lea
Operating Leases Operating Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Leases, Operating [Abstract] | ' | ||||||||||||
Schedule of Minimum Future Rental Commitments | ' | ||||||||||||
The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: | |||||||||||||
Minimum Future Rental Commitments | $0 | ||||||||||||
2014 | $ | 18,987 | |||||||||||
2015 | 17,656 | ||||||||||||
2016 | 16,918 | ||||||||||||
2017 | 16,001 | ||||||||||||
2018 | 13,908 | ||||||||||||
Thereafter | 42,592 | ||||||||||||
Total | $ | 126,062 | |||||||||||
Schedule of Rent Expense | ' | ||||||||||||
The following table summarizes our rent expense including taxes, insurance, and other operating costs: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Rent expense | $ | 22,169 | $ | 20,736 | $ | 20,122 | |||||||
Schedule of Deferred Rent | ' | ||||||||||||
Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2013 | 2012 | |||||||||||
Deferred rent | $ | 26,157 | $ | 27,783 | |||||||||
Schedule of Liability for Vacant Office Space | ' | ||||||||||||
The following table shows the change in our liability for vacant office space from December 31, 2011 to December 31, 2013: | |||||||||||||
Liability for Vacant Office Space | $0 | ||||||||||||
Balance as of December 31, 2011 | $ | 919 | |||||||||||
Reduction of liability for lease and other related payments | (774 | ) | |||||||||||
Balance as of December 31, 2012 | 145 | ||||||||||||
Reduction of liability for lease and other related payments | (14 | ) | |||||||||||
Balance as of December 31, 2013 | $ | 131 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 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 December 31 | |||||||||||||||||||||||||||
0 | 2013 | ||||||||||||||||||||||||||
Shares available for future grants | 4,501 | ||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Restricted stock units | $ | 14,163 | $ | 13,451 | $ | 12,765 | |||||||||||||||||||||
Restricted stock | 388 | 5,013 | 2,196 | ||||||||||||||||||||||||
Stock options | 492 | 441 | 342 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 15,043 | $ | 18,905 | $ | 15,303 | |||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 4,027 | $ | 3,686 | $ | 3,535 | |||||||||||||||||||||
Schedule of Uncategorized Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 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 | $ | 31,306 | 33 | ||||||||||||||||||||||||
Restricted stock | 517 | 16 | |||||||||||||||||||||||||
Stock options | 585 | 16 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 32,408 | 32 | ||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | ' | ||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the past three years: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs Outstanding - January 1, 2011 | 777,666 | 45,189 | 822,855 | $ | 47.14 | ||||||||||||||||||||||
Granted | 292,398 | — | 292,398 | 57.36 | |||||||||||||||||||||||
Dividend equivalents | 2,673 | — | 2,673 | 48.57 | |||||||||||||||||||||||
Vested | (256,623 | ) | — | (256,623 | ) | 48.28 | |||||||||||||||||||||
Vested but deferred | (1,753 | ) | 1,753 | — | — | ||||||||||||||||||||||
Issued | — | (26,866 | ) | (26,866 | ) | 46.69 | |||||||||||||||||||||
Forfeited | (73,318 | ) | — | (73,318 | ) | 47.59 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2011 | 741,043 | 20,076 | 761,119 | 50.66 | |||||||||||||||||||||||
Granted | 341,282 | — | 341,282 | 56.26 | |||||||||||||||||||||||
Dividend equivalents | 6,405 | 130 | 6,535 | 52.02 | |||||||||||||||||||||||
Vested | (270,695 | ) | — | (270,695 | ) | 50.12 | |||||||||||||||||||||
Vested but deferred | (892 | ) | 892 | — | — | ||||||||||||||||||||||
Issued | — | (2,316 | ) | (2,316 | ) | 73.28 | |||||||||||||||||||||
Forfeited | (89,998 | ) | — | (89,998 | ) | 50.84 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2012 | 727,145 | 18,782 | 745,927 | 53.37 | |||||||||||||||||||||||
Granted | 287,848 | — | 287,848 | 72.04 | |||||||||||||||||||||||
Dividend equivalents | 2,773 | 157 | 2,930 | 57.39 | |||||||||||||||||||||||
Vested | (278,549 | ) | — | (278,549 | ) | 50.41 | |||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (59,215 | ) | — | (59,215 | ) | 57.58 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2013 | 680,002 | 16,682 | 696,684 | 62.02 | |||||||||||||||||||||||
Schedule of Stock Options, Valuation Assumptions | ' | ||||||||||||||||||||||||||
In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: | |||||||||||||||||||||||||||
Assumptions for Black-Scholes Option Pricing Model | |||||||||||||||||||||||||||
Expected life (years): | 7.4 | ||||||||||||||||||||||||||
Volatility factor: | 35.1 | % | |||||||||||||||||||||||||
Dividend yield: | 0.35 | % | |||||||||||||||||||||||||
Interest rate: | 2.87 | % | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | 648,885 | $ | 18.91 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (250 | ) | 21.48 | (650 | ) | 14.7 | — | — | |||||||||||||||||||
Exercised | (102,886 | ) | 21.09 | (115,514 | ) | 20.19 | (250,026 | ) | 19.25 | ||||||||||||||||||
Options outstanding—end of year | 179,559 | 21.47 | 282,695 | 20.55 | 398,859 | 19.72 | |||||||||||||||||||||
Options exercisable—end of year | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | ||||||||||||||||||
Schedule of All Other Option Granted | ' | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 391,784 | $ | 28.98 | 818,552 | $ | 22.76 | 1,207,540 | $ | 17.09 | ||||||||||||||||||
Granted | — | — | — | — | 92,201 | 57.42 | |||||||||||||||||||||
Canceled | (1,352 | ) | 16.19 | (22,330 | ) | 39.75 | (1,960 | ) | 16.04 | ||||||||||||||||||
Exercised | (136,460 | ) | 16.84 | (404,438 | ) | 16.6 | (479,229 | ) | 16.17 | ||||||||||||||||||
Options outstanding—end of year | 253,972 | 36.48 | 391,784 | 28.98 | 818,552 | 22.76 | |||||||||||||||||||||
Options exercisable—end of year | 219,449 | $ | 33.18 | 337,684 | $ | 24.42 | 726,351 | $ | 18.36 | ||||||||||||||||||
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: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 12,801 | $ | 22,526 | $ | 29,899 | |||||||||||||||||||||
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of December 31, 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) | |||||||||||||||||||||||||||
$14.70 | 285 | 0.93 | $ | 14.7 | $ | 18 | 285 | 0.93 | $ | 14.7 | $ | 18 | |||||||||||||||
$21.40 - $48.90 | 361,571 | 1.17 | 24.88 | 19,238 | 361,571 | 1.17 | 24.88 | 19,238 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.52 | 57.46 | 1,479 | 37,152 | 7.52 | 57.45 | 710 | |||||||||||||||||||
$14.70 - $59.35 | 433,531 | 2.22 | 30.26 | $ | 20,735 | 399,008 | 1.76 | 27.91 | $ | 19,966 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$14.70 - $59.35 | 433,531 | 2.22 | $ | 30.26 | $ | 20,735 | |||||||||||||||||||||
Schedule of Tax Benefits Related To Share Based Compensation | ' | ||||||||||||||||||||||||||
The following table summarizes our excess tax benefits for the past three years: | |||||||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 5,898 | $ | 7,210 | $ | 9,525 | |||||||||||||||||||||
Defined_Contribution_Plan_Tabl
Defined Contribution Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Defined Contribution Plan [Abstract] | ' | ||||||||||||
Schedule of Defined Contribution Plan, Employer Matching Contributions | ' | ||||||||||||
The following table summarizes our matching contributions: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
401(k) matching contributions | $ | 6,879 | $ | 6,642 | $ | 5,601 | |||||||
NonOperating_Income_Tables
Non-Operating Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Nonoperating Income (Expense) [Abstract] | ' | ||||||||||||
Nonoperating Income (Expense) [Table Text Block] | ' | ||||||||||||
The following table presents the components of our net non-operating income: | |||||||||||||
$0 | 2013 | 2012 | 2011 | ||||||||||
Interest income | $ | 2,940 | $ | 5,464 | $ | 3,679 | |||||||
Interest expense | (228 | ) | (311 | ) | (1,318 | ) | |||||||
Gain on sale of investments, net | 4,207 | 538 | 260 | ||||||||||
Holding gain upon acquisition of additional ownership of equity-method investments | 3,635 | — | — | ||||||||||
Other expense, net | (3,198 | ) | (2,734 | ) | (912 | ) | |||||||
Non-operating income, net | $ | 7,356 | $ | 2,957 | $ | 1,709 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ' | |||||||||||||||||||||
Schedule of Income Tax Expense and Effective Tax Rate | ' | |||||||||||||||||||||
The following table shows our income tax expense and our effective tax rate for the years ending December 31, 2013, 2012, and 2011: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 178,010 | $ | 153,625 | $ | 140,124 | ||||||||||||||||
Equity in net income of unconsolidated entities | 1,428 | 2,027 | 1,848 | |||||||||||||||||||
Net (income) loss attributable to the noncontrolling interest | 122 | 117 | 43 | |||||||||||||||||||
Total | $ | 179,560 | $ | 155,769 | $ | 142,015 | ||||||||||||||||
Income tax expense | $ | 56,031 | $ | 52,878 | $ | 43,658 | ||||||||||||||||
Effective tax rate | 31.2 | % | 33.9 | % | 30.7 | % | ||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||||||||||||
The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
($000, except percentages) | Amount | % | Amount | % | Amount | % | ||||||||||||||||
Income tax expense at U.S. federal rate | $ | 62,845 | 35 | % | $ | 54,519 | 35 | % | $ | 49,705 | 35 | % | ||||||||||
State income taxes, net of federal income tax benefit | 3,029 | 1.7 | 1,510 | 1 | 1,376 | 1 | ||||||||||||||||
Stock-based compensation activity | 254 | 0.1 | 516 | 0.3 | 440 | 0.3 | ||||||||||||||||
Non-U.S. withholding taxes, net of federal income tax effect, and foreign tax credits | 310 | 0.2 | 307 | 0.2 | 346 | 0.2 | ||||||||||||||||
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses | (1,842 | ) | (1.0 | ) | (630 | ) | (0.4 | ) | 394 | 0.3 | ||||||||||||
Difference between U.S. federal statutory and foreign tax rates | (2,513 | ) | (1.4 | ) | (2,777 | ) | (1.8 | ) | (2,393 | ) | (1.7 | ) | ||||||||||
Change in unrecognized tax benefits | (211 | ) | (0.1 | ) | 967 | 0.6 | 3,126 | 2.2 | ||||||||||||||
Credits and incentives | (4,374 | ) | (2.5 | ) | (1,494 | ) | (1.0 | ) | (7,734 | ) | (5.4 | ) | ||||||||||
Recognition of deferred tax assets | (1,448 | ) | (0.8 | ) | — | — | (1,778 | ) | (1.3 | ) | ||||||||||||
Other - net | (19 | ) | — | (40 | ) | — | 176 | 0.1 | ||||||||||||||
Total income tax expense | $ | 56,031 | 31.2 | % | $ | 52,878 | 33.9 | % | $ | 43,658 | 30.7 | % | ||||||||||
Schedule of Components of Income Tax Expense | ' | |||||||||||||||||||||
Income tax expense consists of the following: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
Current tax expense: | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | $ | 42,808 | $ | 38,821 | $ | 41,520 | ||||||||||||||||
State | 3,882 | 1,997 | 1,808 | |||||||||||||||||||
Non-U.S. | 10,456 | 5,719 | 5,756 | |||||||||||||||||||
Current tax expense | 57,146 | 46,537 | 49,084 | |||||||||||||||||||
Deferred tax expense (benefit): | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | 2,630 | 6,287 | (1,011 | ) | ||||||||||||||||||
State | 814 | 334 | (242 | ) | ||||||||||||||||||
Non-U.S. | (4,559 | ) | (280 | ) | (4,173 | ) | ||||||||||||||||
Deferred tax expense (benefit), net | (1,115 | ) | 6,341 | (5,426 | ) | |||||||||||||||||
Income tax expense | $ | 56,031 | $ | 52,878 | $ | 43,658 | ||||||||||||||||
Schedule of Income before Income Tax | ' | |||||||||||||||||||||
The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: | ||||||||||||||||||||||
$0 | 2013 | 2012 | 2011 | |||||||||||||||||||
U.S. | $ | 144,065 | $ | 128,920 | $ | 123,390 | ||||||||||||||||
Non-U.S. | 33,945 | 24,705 | 16,734 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 178,010 | $ | 153,625 | $ | 140,124 | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||||||||||||
The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Stock-based compensation expense | $ | 3,479 | $ | 4,019 | ||||||||||||||||||
Accrued liabilities | 9,805 | 8,402 | ||||||||||||||||||||
Net operating loss carryforwards - U.S. federal and state | 851 | 930 | ||||||||||||||||||||
Net operating loss carryforwards - Non-U.S. | 9,229 | 12,386 | ||||||||||||||||||||
Research and development | — | 246 | ||||||||||||||||||||
Deferred royalty revenue | 366 | 383 | ||||||||||||||||||||
Allowance for doubtful accounts | 758 | 515 | ||||||||||||||||||||
Deferred rent | 8,673 | 9,031 | ||||||||||||||||||||
Other | — | 846 | ||||||||||||||||||||
Total deferred tax assets | 33,161 | 36,758 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Acquired intangible assets | (12,967 | ) | (14,535 | ) | ||||||||||||||||||
Property, equipment, and capitalized software | (15,525 | ) | (14,615 | ) | ||||||||||||||||||
Unrealized exchange gains, net | (395 | ) | (444 | ) | ||||||||||||||||||
Prepaid expenses | (4,299 | ) | (3,694 | ) | ||||||||||||||||||
Investments in unconsolidated entities | (12,009 | ) | (9,905 | ) | ||||||||||||||||||
Other | (373 | ) | — | |||||||||||||||||||
Total deferred tax liabilities | (45,568 | ) | (43,193 | ) | ||||||||||||||||||
Net deferred tax asset (liability) before valuation allowance | (12,407 | ) | (6,435 | ) | ||||||||||||||||||
Valuation allowance | (7,456 | ) | (11,407 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (19,863 | ) | $ | (17,842 | ) | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets | ' | |||||||||||||||||||||
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Deferred tax asset, net - current | $ | 3,892 | $ | 3,741 | ||||||||||||||||||
Deferred tax liability, net - non-current | (23,755 | ) | (21,583 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (19,863 | ) | $ | (17,842 | ) | ||||||||||||||||
Schedule of Gross Unrecognized Tax Benefits | ' | |||||||||||||||||||||
The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Gross unrecognized tax benefits - beginning of the year | $ | 12,699 | $ | 12,189 | ||||||||||||||||||
Increases as a result of tax positions taken during a prior-year period | 791 | 445 | ||||||||||||||||||||
Decreases as a result of tax positions taken during a prior-year period | (146 | ) | (1,153 | ) | ||||||||||||||||||
Increases as a result of tax positions taken during the current period | 2,887 | 2,008 | ||||||||||||||||||||
Decreases relating to settlements with tax authorities | (2,779 | ) | (299 | ) | ||||||||||||||||||
Reductions as a result of lapse of the applicable statute of limitations | (494 | ) | (491 | ) | ||||||||||||||||||
Gross unrecognized tax benefits - end of the year | $ | 12,958 | $ | 12,699 | ||||||||||||||||||
Summary of Income Tax Examinations | ' | |||||||||||||||||||||
The following table summarizes our gross liability for interest and penalties: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Liabilities for interest and penalties | $ | 1,865 | $ | 2,232 | ||||||||||||||||||
U.S [Member] | ' | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ' | |||||||||||||||||||||
Summary of Operating Loss Carryforwards | ' | |||||||||||||||||||||
The following table summarizes our U.S. net operating loss (NOL) carryforwards: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Expiration Date | Expiration Date | |||||||||||||||||||||
U.S. federal NOLs subject to expiration dates | $ | 2,136 | 12/31/23 | $ | 2,362 | 12/31/23 | ||||||||||||||||
Non-U.S. [Member] | ' | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ' | |||||||||||||||||||||
Summary of Operating Loss Carryforwards | ' | |||||||||||||||||||||
The following table summarizes our NOL carryforwards for our non-U.S. operations: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2013 | 2012 | ||||||||||||||||||||
Non-U.S. NOLs subject to expiration dates from 2014 through 2032 | $ | 5,314 | $ | 6,064 | ||||||||||||||||||
Non-U.S. NOLs with no expiration date | 40,054 | 44,504 | ||||||||||||||||||||
Total | $ | 45,368 | $ | 50,568 | ||||||||||||||||||
Non-U.S. NOLs not subject to valuation allowances | $ | 8,759 | $ | 4,031 | ||||||||||||||||||
Share_Repurchase_Program_Table
Share Repurchase Program (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Class of Treasury Stock | ' | ||||||||
The following table summarizes the board approvals for increases to the program and the total available under the program: | |||||||||
Date | Increase | Total program | |||||||
Sep-10 | $ | 100 | million | $ | 100 | million | |||
Dec-11 | $ | 200 | million | $ | 300 | million | |||
Dec-12 | $ | 200 | million | $ | 500 | million | |||
Dec-13 | $ | 200 | million | $ | 700 | million |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | ' | |||||||||||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||
(in thousands except per share amounts) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||
Revenue | $ | 160,759 | $ | 165,968 | $ | 160,952 | $ | 170,609 | $ | 168,856 | $ | 175,428 | $ | 173,482 | $ | 180,500 | ||||||||||||||||||
Total operating expense (1) | 130,360 | 124,832 | 121,088 | 131,340 | 128,296 | 131,844 | 128,869 | 138,603 | ||||||||||||||||||||||||||
Operating income | 30,399 | 41,136 | 39,864 | 39,269 | 40,560 | 43,584 | 44,613 | 41,897 | ||||||||||||||||||||||||||
Non-operating income (expense), net | 659 | 995 | 1,880 | (577 | ) | 945 | 3,111 | 771 | 2,529 | |||||||||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | 31,058 | 42,131 | 41,744 | 38,692 | 41,505 | 46,695 | 45,384 | 44,426 | ||||||||||||||||||||||||||
Income tax expense | 11,511 | 14,744 | 15,186 | 11,437 | 12,427 | 15,955 | 14,265 | 13,384 | ||||||||||||||||||||||||||
Equity in net income (loss) of unconsolidated entities | 566 | 497 | 478 | 486 | 497 | 360 | 315 | 256 | ||||||||||||||||||||||||||
Consolidated net income from continuing operations | 20,113 | 27,884 | 27,036 | 27,741 | 29,575 | 31,100 | 31,434 | 31,298 | ||||||||||||||||||||||||||
Gain on sale of discontinued operations, net of tax | — | — | — | 5,188 | — | — | — | — | ||||||||||||||||||||||||||
Consolidated net income | 20,113 | 27,884 | 27,036 | 32,929 | 29,575 | 31,100 | 31,434 | 31,298 | ||||||||||||||||||||||||||
Net (income) loss attributable to the noncontrolling interests | 24 | 4 | 34 | 55 | 43 | 21 | 29 | 29 | ||||||||||||||||||||||||||
Net income attributable to Morningstar, Inc. | $ | 20,137 | $ | 27,888 | $ | 27,070 | $ | 32,984 | $ | 29,618 | $ | 31,121 | $ | 31,463 | $ | 31,327 | ||||||||||||||||||
Net income per share attributable to Morningstar, Inc. | ||||||||||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.4 | $ | 0.57 | $ | 0.56 | $ | 0.59 | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | ||||||||||||||||||
Discontinued operations | — | — | — | 0.11 | — | — | — | — | ||||||||||||||||||||||||||
$ | 0.4 | $ | 0.57 | $ | 0.56 | $ | 0.7 | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | |||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.4 | $ | 0.56 | $ | 0.56 | $ | 0.58 | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | ||||||||||||||||||
Discontinued operations | — | — | — | 0.11 | — | — | — | — | ||||||||||||||||||||||||||
$ | 0.4 | $ | 0.56 | $ | 0.56 | $ | 0.69 | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | |||||||||||||||||||
Dividends per common share: | ||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | — | $ | 0.295 | ||||||||||||||||||
Dividends paid per common share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.225 | $ | — | $ | 0.125 | $ | 0.125 | $ | 0.125 | ||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||
Basic | 49,938 | 49,195 | 47,975 | 46,913 | 46,406 | 46,400 | 46,080 | 45,756 | ||||||||||||||||||||||||||
Diluted | 50,758 | 49,856 | 48,481 | 47,511 | 46,814 | 46,853 | 46,519 | 46,211 | ||||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||
(1) Includes stock-based compensation expense of: | $ | 3,866 | $ | 3,734 | $ | 3,994 | $ | 7,311 | $ | 3,783 | $ | 3,954 | $ | 3,416 | $ | 3,890 | ||||||||||||||||||
Description_of_Business_Detail
Description of Business (Details) | Dec. 31, 2013 |
Countries | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Number of countries in which entity operates | 27 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Business Acquisition [Line Items] | ' | ' | ' |
capitalized software development costs | $8,142,000 | $8,527,000 | $5,315,000 |
Advertising expense | 6,939,000 | 6,306,000 | 8,210,000 |
Property, Equipment, and Depreciation, useful life, minimum | '3 years | ' | ' |
Intangible Assets, useful life, minimum | '10 years | '10 years | ' |
Aspect Huntley [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Impairment loss | ' | $800,000 | ' |
Minimum [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Property, Equipment, and Depreciation, useful life, minimum | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Property, Equipment, and Depreciation, useful life, minimum | '7 years | ' | ' |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic net income per share attributable to Morningstar, Inc.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Morningstar, Inc. | $31,327 | $31,463 | $31,121 | $29,618 | $32,984 | $27,070 | $27,888 | $20,137 | $123,529 | $108,079 | $98,357 |
Less: Distributed earnings availabline to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -41 | -40 |
Less: Undistributed earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -36 | -47 | -259 |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 123,483 | 107,991 | 98,058 |
Weighted average common shares outstanding | 45,756 | 46,080 | 46,400 | 46,406 | 46,913 | 47,975 | 49,195 | 49,938 | 46,158 | 48,497 | 50,032 |
Basic net income per share attributable to Morningstar, Inc. | $0.68 | $0.68 | $0.67 | $0.64 | $0.70 | $0.56 | $0.57 | $0.40 | $2.68 | $2.23 | $1.96 |
Diluted net income per share attributable to Morningstar, Inc.: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 123,483 | 107,991 | 98,058 |
Add: Undistributed earnings allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 47 | 259 |
Less: Undistributed earnings reallocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -36 | -46 | -254 |
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $123,483 | $107,992 | $98,063 |
Weighted average common shares outstanding | 45,756 | 46,080 | 46,400 | 46,406 | 46,913 | 47,975 | 49,195 | 49,938 | 46,158 | 48,497 | 50,032 |
Net effect of dilutive stock options and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 333 | 651 | 956 |
Weighted average common shares outstanding for computing diluted income per share | 46,211 | 46,519 | 46,853 | 46,814 | 47,511 | 48,481 | 49,856 | 50,758 | 46,491 | 49,148 | 50,988 |
Diluted net income per share attributable to Morningstar, Inc. | $0.68 | $0.68 | $0.66 | $0.63 | $0.69 | $0.56 | $0.56 | $0.40 | $2.66 | $2.20 | $1.92 |
Income (Loss) from Continuing Operations, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $2.68 | $2.12 | $1.96 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0.11 | $0 |
Income (Loss) from Continuing Operations, Per Diluted Share | $0.68 | $0.68 | $0.66 | $0.63 | $0.58 | $0.56 | $0.56 | $0.40 | $2.66 | $2.10 | $1.92 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0 | $0 | $0 | $0 | $0.11 | $0 | $0 | $0 | $0 | $0.10 | $0 |
Income_Per_Share_Income_Per_Sh
Income Per Share Income Per Share Antidilutive Shares (Details) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 55 |
Stock Options [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 55 |
Restricted Stock Units (RSUs) [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 |
Restricted Stock [Member] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information (Operating Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External revenue | $180,500 | $173,482 | $175,428 | $168,856 | $170,609 | $160,952 | $165,968 | $160,759 | ' | ' | ' | $698,266 | $658,288 | $631,400 |
Stock-based compensation expense | 3,890 | ' | ' | ' | 7,311 | 3,416 | 3,954 | 3,783 | 3,994 | 3,734 | 3,866 | 15,043 | 18,905 | 15,303 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,693 | 43,096 | 42,913 |
Operating income | 41,897 | 44,613 | 43,584 | 40,560 | 39,269 | 39,864 | 41,136 | 30,399 | ' | ' | ' | 170,654 | 150,668 | 138,415 |
Segment Reporting Information, Additional Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 326,450 | ' | ' | ' | 320,845 | ' | ' | ' | ' | ' | ' | 326,450 | 320,845 | 318,492 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,730 | 466,947 | 446,470 |
Investment Management [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142,624 | 132,141 | 133,135 |
Investment Information [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
External revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $555,642 | $526,147 | $498,265 |
Segment_and_Geographical_Area_3
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $180,500 | $173,482 | $175,428 | $168,856 | $170,609 | $160,952 | $165,968 | $160,759 | $698,266 | $658,288 | $631,400 |
Long-lived assets | 104,986 | ' | ' | ' | 84,022 | ' | ' | ' | 104,986 | 84,022 | ' |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 500,730 | 466,947 | 446,470 |
Long-lived assets | 84,321 | ' | ' | ' | 60,371 | ' | ' | ' | 84,321 | 60,371 | ' |
United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 56,298 | 56,794 | 53,427 |
Long-lived assets | 6,873 | ' | ' | ' | 7,435 | ' | ' | ' | 6,873 | 7,435 | ' |
Europe excluding the United Kingdom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 57,580 | 49,844 | 49,507 |
Long-lived assets | 1,873 | ' | ' | ' | 2,356 | ' | ' | ' | 1,873 | 2,356 | ' |
Australia [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 35,289 | 38,229 | 39,761 |
Long-lived assets | 1,051 | ' | ' | ' | 1,402 | ' | ' | ' | 1,051 | 1,402 | ' |
Canada [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 31,845 | 30,664 | 27,808 |
Long-lived assets | 1,275 | ' | ' | ' | 1,773 | ' | ' | ' | 1,275 | 1,773 | ' |
Asia, Excluding Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 13,860 | 13,765 | 13,188 |
Long-lived assets | 9,479 | ' | ' | ' | 10,529 | ' | ' | ' | 9,479 | 10,529 | ' |
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,664 | 2,045 | 1,239 |
Long-lived assets | $114 | ' | ' | ' | $156 | ' | ' | ' | $114 | $156 | ' |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Available-for-sale | $91,461 | $125,786 |
Held-to-maturity | 31,214 | 26,357 |
Trading securities | 7,732 | 5,386 |
Total | $130,407 | $157,529 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | $90,560 | $124,557 | ' |
Available-for-sale securities, unrealized gain | 1,269 | 2,517 | ' |
Available-for-sale securities, unrealized loss | -368 | -1,288 | ' |
Available-for-sale securities, current | 91,461 | 125,786 | ' |
Held-to-maturity: | ' | ' | ' |
Held-to-maturity securities, total amortized cost | 31,214 | 26,357 | ' |
Held-to-maturity securities, unrealized gain | 0 | 0 | ' |
Held-to-maturity securities, unrealized loss | 0 | 0 | ' |
Held-to-maturity securities, current | 31,214 | 26,357 | ' |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' |
Available-for-sale securities, realized gains | 5,550 | 1,671 | 761 |
Available-for-sale securities, realized losses | -1,343 | -1,133 | -501 |
Available-for-sale securities, realized gains, net | 4,207 | 538 | 260 |
US Treasury and Government [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 19,693 | 40,669 | ' |
Available-for-sale securities, unrealized gain | 8 | 29 | ' |
Available-for-sale securities, unrealized loss | -3 | -608 | ' |
Available-for-sale securities, fair value disclosure | 19,698 | 40,090 | ' |
Corporate Bonds [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 49,913 | 49,339 | ' |
Available-for-sale securities, unrealized gain | 22 | 36 | ' |
Available-for-sale securities, unrealized loss | -124 | -292 | ' |
Available-for-sale securities, fair value disclosure | 49,811 | 49,083 | ' |
Foreign obligations [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 505 | 2,437 | ' |
Available-for-sale securities, unrealized gain | 0 | 1 | ' |
Available-for-sale securities, unrealized loss | -2 | -19 | ' |
Available-for-sale securities, fair value disclosure | 503 | 2,419 | ' |
Commercial paper [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 9,482 | 2,000 | ' |
Available-for-sale securities, unrealized gain | 7 | 0 | ' |
Available-for-sale securities, unrealized loss | 0 | 0 | ' |
Available-for-sale securities, fair value disclosure | 9,489 | 2,000 | ' |
Equity securities and exchange-traded funds [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 8,872 | 19,613 | ' |
Available-for-sale securities, unrealized gain | 1,011 | 1,359 | ' |
Available-for-sale securities, unrealized loss | -141 | -323 | ' |
Available-for-sale securities, fair value disclosure | 9,742 | 20,649 | ' |
Mutual funds [Member] | ' | ' | ' |
Available-for-sale: | ' | ' | ' |
Available-for-sale securities, amortized cost basis | 2,095 | 10,499 | ' |
Available-for-sale securities, unrealized gain | 221 | 1,092 | ' |
Available-for-sale securities, unrealized loss | -98 | -46 | ' |
Available-for-sale securities, fair value disclosure | $2,218 | $11,545 | ' |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Cost and Fair Value of Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Available-for-sale securities, due in one year or less, amortized cost basis | $45,486,000 | $87,599,000 |
Available-for-sale securities, due in one year or less, fair vlaue | 45,402,000 | 86,784,000 |
Available for sale securities, due in one to two years, amortized cost basis | 34,107,000 | 6,846,000 |
Available-for-sale securities, due in one to two years, fair value | 34,099,000 | 6,808,000 |
Available-for-sale securities, equity securities and mutual funds, amortized cost basis | 10,967,000 | 30,112,000 |
Available-for-sale securities, equity securities and mutual funds, fair value | 11,960,000 | 32,194,000 |
Available-for-sale securities, amortized cost basis | 90,560,000 | 124,557,000 |
Available-for-sale securities, current | 91,461,000 | 125,786,000 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ' | ' |
Held-to-maturity securities, due in one year, net carrying amount | 31,210,000 | 26,352,000 |
Held-to-maturity securities, due within one year, fair value | 31,210,000 | 26,352,000 |
Held-to-maturity securities, due in one to three years, net carrying amount | 4,000 | 5,000 |
Held-to-maturity securities, due in one to three years, fair value | 4,000 | 5,000 |
Held-to-maturity securities, total amortized cost | 31,214,000 | 26,357,000 |
Held-to-maturity securities, current | 31,214,000 | 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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Unrealized gains (losses), net | $827 | $269 | ($387) |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 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 disclosure | $7,732 | $5,386 |
Cash equivalents, fair value disclosure | 925 | 398 |
Investments, fair value disclosure | 100,118 | 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 disclosure | 19,698 | 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 disclosure | 49,811 | 49,083 |
Estimate of Fair Value Measurement [Member] | Foreign obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 503 | 2,419 |
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 disclosure | 9,489 | 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 disclosure | 9,742 | 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 disclosure | 2,218 | 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 disclosure | 7,732 | 5,386 |
Cash equivalents, fair value disclosure | 925 | 398 |
Investments, fair value disclosure | 20,617 | 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 disclosure | 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 disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 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 disclosure | 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 disclosure | 9,742 | 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 disclosure | 2,218 | 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 disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 79,501 | 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 disclosure | 19,698 | 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 disclosure | 49,811 | 49,083 |
Fair Value, Inputs, Level 2 [Member] | Foreign obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 503 | 2,419 |
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 disclosure | 9,489 | 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 disclosure | 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 disclosure | 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 disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 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 disclosure | 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 disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value disclosure | 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 disclosure | 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 disclosure | 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 disclosure | $0 | $0 |
Acquisitions_Goodwill_and_Othe2
Acquisitions, Goodwill, and Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 3-May-13 | Mar. 31, 2013 | |
Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Percentage of voting interests acquired | ' | ' | ' | 76.00% | ' |
Equity method investment, ownership percentage | ' | ' | ' | 100.00% | 24.00% |
Acquisition estimated fair value | ' | ' | ' | $18,513,000 | ' |
Cash paid to acquire the entity | ' | ' | ' | 14,554,000 | ' |
Equity method investments, fair value | ' | ' | ' | ' | 3,959,000 |
Equity Method Investments Holding Gain | 3,635,000 | 0 | 0 | 3,635,000 | ' |
Deferred tax liability | ' | ' | ' | 2,272,000 | ' |
Goodwill | 326,450,000 | 320,845,000 | 318,492,000 | 8,911,000 | ' |
Goodwill, Impairment Loss | 0 | 0 | 0 | ' | ' |
Impairment of intangible assets | $0 | $0 | $800,000 | ' | ' |
Acquisitions_Goodwill_and_Othe3
Acquisitions, Goodwill, and Other Intangible Assets (Purchase Price Allocation) (Details) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 3-May-13 |
In Thousands, unless otherwise specified | Morningstar Sweden AB [Member] | |||
Business Acquisition, Purchase Price Allocation [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | $3,472 |
Accounts receivable and other current assets | ' | ' | ' | 519 |
Other non-current assets | ' | ' | ' | 244 |
Intangible assets | ' | ' | ' | 9,700 |
Goodwill | 326,450 | 320,845 | 318,492 | 8,911 |
Deferred revenue | ' | ' | ' | -1,191 |
Deferred tax liability | ' | ' | ' | -2,272 |
Other current and non-current liabilities | ' | ' | ' | -870 |
Acquisition estimated fair value | ' | ' | ' | $18,513 |
Acquisitions_Goodwill_and_Othe4
Acquisitions, Goodwill, and Other Intangible Assets (Allocation of Acquired Intangible Assets) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 3-May-13 | 3-May-13 |
Customer-Related Assets [Member] | Customer-Related Assets [Member] | Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | |||
Customer-Related Assets [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | $9,700 | $9,700 |
Weighted Average Useful Life (years) | '10 years | '10 years | '12 years | '12 years | '14 years | '14 years |
Acquisitions_Goodwill_and_Othe5
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 3-May-13 |
Inquiry Financial Europe AB [Member] | Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | |||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | $320,845 | $318,492 | ' | ' | $8,911 |
Adjustments to Acquisitions | ' | ' | -937 | 8,911 | ' |
Other, primarily currency translation | -3,306 | 3,290 | ' | ' | ' |
Goodwill, Ending Balance | $326,450 | $320,845 | ' | ' | $8,911 |
Acquisitions_Goodwill_and_Othe6
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | $253,700 | $246,757 |
Accumulated Amortization | -149,791 | -130,025 |
Net | 103,909 | 116,732 |
Weighted Average Useful Life (years) | '10 years | '10 years |
Intellectual Property [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 29,477 | 30,621 |
Accumulated Amortization | -23,128 | -21,527 |
Net | 6,349 | 9,094 |
Weighted Average Useful Life (years) | '9 years | '9 years |
Customer-Related Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 141,833 | 132,798 |
Accumulated Amortization | -74,311 | -63,005 |
Net | 67,522 | 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 | -108 | -96 |
Net | 132 | 144 |
Weighted Average Useful Life (years) | '20 years | '20 years |
Technology-Based Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 80,489 | 81,333 |
Accumulated Amortization | -50,673 | -43,809 |
Net | 29,816 | 37,524 |
Weighted Average Useful Life (years) | '9 years | '9 years |
Non-Competition Agreement [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross | 1,661 | 1,765 |
Accumulated Amortization | -1,571 | -1,588 |
Net | $90 | $177 |
Weighted Average Useful Life (years) | '4 years | '4 years |
Acquisitions_Goodwill_and_Othe7
Acquisitions, Goodwill, and Other Intangible Assets (Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | ' | ' | ' |
Amortization expense | $21,454 | $23,944 | $27,267 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | 20,485 | ' | ' |
2015 | 19,659 | ' | ' |
2016 | 15,101 | ' | ' |
2017 | 10,565 | ' | ' |
2018 | $8,568 | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,193 | $0 |
Discontinued Operation, Tax Effect of Discontinued Operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,005 | 0 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $0 | $0 | $0 | $0 | $5,188 | $0 | $0 | $0 | $0 | $5,188 | $0 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities (Details) | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 3-May-13 | Mar. 31, 2013 |
USD ($) | USD ($) | USD ($) | Other Equity Method Investments [Member] | Other Equity Method Investments [Member] | Morningstar Sweden AB [Member] | YCharts [Member] | YCharts [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Inquiry Financial Europe AB [Member] | Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | |
USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments | ' | ' | ' | $6,166 | $6,288 | ' | ' | ' | $21,782 | ' | $20,540 | ' | ' | ' | ' |
Cost method investments | 10,766 | 8,477 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investments in unconsolidated entities | 38,714 | 35,305 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | ' | ' | 24.00% | 22.00% | 22.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 100.00% | 24.00% |
Holding gain upon acquisition of additional ownership of equity method investment | -3,635 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,635 | ' |
Percentage of voting interests acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76.00% | ' |
Equity method investment, approximate market value | ' | ' | ' | ' | ' | ' | ' | ' | 94,999 | 9,824,068 | 36,227 | 3,109,579 | ' | ' | ' |
Cost-method investments, other than temporary impairment | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Other Investments | 2,751 | 10,304 | 2,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost-method Investments, Realized Gain (Loss) | $0 | ($2,034) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_Equipment_and_Capital2
Property, Equipment, and Capitalized Software (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | $171,532 | ' | $211,152 |
Less accumulated depreciation | -87,510 | ' | -106,166 |
Property, equipment, and capitalized software, net | 84,022 | ' | 104,986 |
Capitalized software development costs not yet placed into service | 6,478 | ' | 11,345 |
Depreciation expense | 19,152 | 15,646 | ' |
Computer equipment [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | 42,312 | ' | 47,830 |
Capitalized software [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | 39,643 | ' | 50,360 |
Furniture and fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | 22,804 | ' | 23,259 |
Leasehold improvements [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | 51,333 | ' | 52,512 |
Telephone equipment [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | 1,951 | ' | 2,032 |
Construction in progress [Member] | ' | ' | ' |
Property, Plant and Equipment, Net [Abstract] | ' | ' | ' |
Property, equipment, and capitalized software, at cost | $13,489 | ' | $35,159 |
Operating_Leases_Operating_Lea1
Operating Leases Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2012 | $18,987 | ' | ' |
2013 | 17,656 | ' | ' |
2014 | 16,918 | ' | ' |
2015 | 16,001 | ' | ' |
2016 | 13,908 | ' | ' |
Thereafter | 42,592 | ' | ' |
Total | 126,062 | ' | ' |
Rent expense | 22,169 | 20,736 | 20,122 |
Deferred rent | 26,157 | 27,783 | ' |
Liability for Vacant Office Space [Roll Forward] | ' | ' | ' |
Vacant office space liability, beginning balance | 145 | ' | 919 |
Reduction of liability for lease and other related payments | ' | -774 | ' |
Reduction of liability for lease payments | -14 | ' | ' |
Vacant office space liability, ending balance | $131 | $145 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | 31-May-10 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-11 | Dec. 31, 2012 | Nov. 30, 2011 | |
Realpoint, LLC [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2011 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stock | ' | 199,174 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized fair value to stock-based compensation | ' | ' | ' | $9,363,000 | ' | ' | ' | ' | ' | ' |
Expense recognized upon accelerated vesting of restricted stock | ' | ' | ' | ' | 3,238,000 | 396,000 | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | $32,408,000 | ' | $585,000 | $517,000 | ' | ' | $31,306,000 | ' | ' | ' |
Expected amortization period (months) | '32 years | ' | '16 years | '16 years | ' | ' | '33 years | ' | ' | ' |
Stock option granted | ' | ' | ' | ' | ' | ' | ' | 86,106 | ' | 6,095 |
Fair value per share | ' | ' | ' | ' | ' | ' | ' | ' | $23.81 | ' |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares Available for Future Grants) (Details) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares available for future grants | 4,501 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,890 | $7,311 | $3,416 | $3,954 | $3,783 | $3,994 | $3,734 | $3,866 | $15,043 | $18,905 | $15,303 |
Income tax benefit related to the stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 4,027 | 3,686 | 3,535 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | 14,163 | 13,451 | 12,765 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | 388 | 5,013 | 2,196 |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | $492 | $441 | $342 |
StockBased_Compensation_Unreco
Stock-Based Compensation (Unrecognized Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Income tax benefit related to the stock-based compensation expense | $32,408 |
Expected amortization period (months) | '32 years |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Income tax benefit related to the stock-based compensation expense | 31,306 |
Expected amortization period (months) | '33 years |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Income tax benefit related to the stock-based compensation expense | 517 |
Expected amortization period (months) | '16 years |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Income tax benefit related to the stock-based compensation expense | $585 |
Expected amortization period (months) | '16 years |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
RSUs Outstanding, Beginning Balance, Unvested | 727,145 | 741,043 | 777,666 |
RSUs Outstanding, Beginning Balance, Vested but Deferred | 18,782 | 20,076 | 45,189 |
RSUs Outstanding, Beginning Balance | 745,927 | 761,119 | 822,855 |
RSUs Outstanding, Beginning Balance, Weighted Average Grant Date Value per RSU | 53.37 | 50.66 | 47.14 |
Granted, Unvested | 287,848 | 341,282 | 292,398 |
Granted, Vested but Deferred | 0 | 0 | 0 |
Granted | 287,848 | 341,282 | 292,398 |
Granted, Weighted Average Grant Date Value per RSU | $72.04 | $56.26 | $57.36 |
Dividend equivalents, Unvested | 2,773 | 6,405 | ' |
Dividends equivalents, Vested but Deferred | 157 | 130 | ' |
Dividends equivalents | 2,930 | 6,535 | ' |
Dividends equivalents, Weighted Average Grant Date Value per RSU | $57.39 | $52.02 | ' |
Vested, Unvested | -278,549 | -270,695 | -256,623 |
Vested, Vested but Deferred | 0 | 0 | 0 |
Vested | -278,549 | -270,695 | -256,623 |
Vested, Weighted Average Grant Date Value per RSU | $50.41 | $50.12 | $48.28 |
Vested but Deferred, Unvested | ' | -892 | -1,753 |
Vested but Deferred, Vested but Deferred | ' | 892 | 1,753 |
Vested but Deferred | ' | 0 | 0 |
Vested but Deferred, Weighted Average Grant Date Value per RSU | ' | $0 | $0 |
Issued, Unvested | 0 | 0 | 0 |
Issued, Vested but Deferred | -2,257 | -2,316 | -26,866 |
Issued | -2,257 | -2,316 | -26,866 |
Issued, Weighted Average Grant Date Value per RSU | $49.40 | $73.28 | $46.69 |
Forfeited, Unvested | -59,215 | -89,998 | -73,318 |
Forfeited, Vested but Deferred | 0 | 0 | 0 |
Forfeited | -59,215 | -89,998 | -73,318 |
Forfeited, Weighted Average Grant Date Value per RSU | $57.58 | $50.84 | $47.59 |
RSUs Outstanding, Ending Balance, Unvested | 680,002 | 727,145 | 741,043 |
RSUs Outstanding, Ending Balance, Vested but Deferred | 16,682 | 18,782 | 20,076 |
RSUs Outstanding, Ending Balance | 696,684 | 745,927 | 761,119 |
RSUs Outstanding, Ending Balance, Weighted Average Grant Date Value per RSU | 62.02 | 53.37 | 50.66 |
StockBased_Compensation_Assump
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) (Employee Stock Option [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Employee Stock Option [Member] | ' |
Assumptions for Black-Scholes Option Pricing Model [Line Items] | ' |
Expected life (years): | '7 years 4 months 24 days |
Volatility factor: | 35.10% |
Dividends yield: | 0.35% |
Interest rate: | 2.87% |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 |
Intrinsic Value of Options Exercised [Abstract] | ' | ' | ' | ' |
Intrinsic value of options exercised | $12,801 | $22,526 | $29,899 | ' |
Options Granted At Discount [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Beginning Balance, Options, Outstanding, Underlying Shares | 282,695 | ' | 648,885 | ' |
Granted, Underlying Shares | 0 | 0 | 0 | ' |
Canceled, Underlying Shares | -250 | -650 | 0 | ' |
Exercised, Underlying Shares | -102,886 | -115,514 | -250,026 | ' |
Ending Balance, Options, Outstanding, Underlying Shares | 179,559 | 282,695 | 398,859 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' |
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $20.55 | ' | $18.91 | ' |
Granted, Weighted Average Exercise Price | $0 | $0 | $0 | ' |
Canceled, Weighted Average Exercise Price | $21.48 | $14.70 | $0 | ' |
Exercised, Weighted Average Exercise Price | $21.09 | $20.19 | $19.25 | ' |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $21.47 | $20.55 | $19.72 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' |
Options exercisable - end of year, Underlying Shares | 179,559 | 282,695 | ' | 398,859 |
Options exercisable - end of year, Weighted Average Exercise Price | $21.47 | $20.55 | ' | $19.72 |
Option Grants Excluding Options Granted At Discount [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Beginning Balance, Options, Outstanding, Underlying Shares | 391,784 | ' | 1,207,540 | ' |
Granted, Underlying Shares | 0 | 0 | 92,201 | ' |
Canceled, Underlying Shares | -1,352 | -22,330 | -1,960 | ' |
Exercised, Underlying Shares | -136,460 | -404,438 | -479,229 | ' |
Ending Balance, Options, Outstanding, Underlying Shares | 253,972 | 391,784 | 818,552 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' |
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $28.98 | ' | $17.09 | ' |
Granted, Weighted Average Exercise Price | $0 | $0 | $57.42 | ' |
Canceled, Weighted Average Exercise Price | $16.19 | $39.75 | $16.04 | ' |
Exercised, Weighted Average Exercise Price | $16.84 | $16.60 | $16.17 | ' |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $36.48 | $28.98 | $22.76 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' |
Options exercisable - end of year, Underlying Shares | 219,449 | 337,684 | ' | 726,351 |
Options exercisable - end of year, Weighted Average Exercise Price | $33.18 | $24.42 | ' | $18.36 |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information on Options) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Closing Stock Price Used to Calculate Intrinsic Value | $78.09 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$14.70 |
Exercise price range, lower range limit | $8.57 |
Exercise price range, upper range limit | $14.70 |
Options Outstanding, Number of Options | 285 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '0 years 11 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $14.70 |
Options Outstanding, Aggregate Intrinsic Value | $18 |
Options Exercisable, Exercisable Shares | 285 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '0 years 11 months 5 days |
Options Exercisable, Weighted Average Exercise Price | $14.70 |
Options Exercisable, Aggregate Intrinsic Value | 18 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$21.40 - $48.90 |
Exercise price range, lower range limit | ' |
Exercise price range, upper range limit | ' |
Options Outstanding, Number of Options | 361,571 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '1 year 2 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $24.88 |
Options Outstanding, Aggregate Intrinsic Value | 19,238 |
Options Exercisable, Exercisable Shares | 361,571 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 2 months 1 day |
Options Exercisable, Weighted Average Exercise Price | $24.88 |
Options Exercisable, Aggregate Intrinsic Value | 19,238 |
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 |
Exercise price range, lower range limit | $57.28 |
Exercise price range, upper range limit | $59.35 |
Options Outstanding, Number of Options | 71,675 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '7 years 6 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $57.46 |
Options Outstanding, Aggregate Intrinsic Value | 1,479 |
Options Exercisable, Exercisable Shares | 37,152 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '7 years 6 months 7 days |
Options Exercisable, Weighted Average Exercise Price | $57.45 |
Options Exercisable, Aggregate Intrinsic Value | 710 |
Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$14.70 - $59.35 |
Exercise price range, lower range limit | $5.87 |
Exercise price range, upper range limit | $59.35 |
Options Outstanding, Number of Options | 433,531 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | '2 years 2 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $30.26 |
Options Outstanding, Aggregate Intrinsic Value | 20,735 |
Options Exercisable, Exercisable Shares | 399,008 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 9 months 4 days |
Options Exercisable, Weighted Average Exercise Price | $27.91 |
Options Exercisable, Aggregate Intrinsic Value | 19,966 |
Vested or Expected to Vest [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, lower range limit | $5.87 |
Exercise price range, upper range limit | $59.35 |
Share Based Compensation, Arrangement By Share Based Payments, Vested or Expected to Vest, Range of Exercise Prices | '$14.70 - $59.35 |
Option Outstanding, Number of Options, Vested or Expected to Vest | 433,531 |
Options Outstanding, Weighted Average Remaining Contractual Life (years), Vested or Expected to vest | '2 years 2 months 19 days |
Options Outstanding, Weighted Average Exercise Price, Vested or Expected to Vest | $30.26 |
Options Outstanding, Average Intrinsic Value, Vested or Expected to Vest | $20,735 |
StockBased_Compensation_Excess
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Excess tax benefits related to stock-based compensation | $5,898 | $7,210 | $9,525 | $9,525 |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Contribution Plan [Abstract] | ' | ' | ' |
401(k) matching contributions | $6,879,000 | $6,642,000 | $5,601,000 |
Matching contribution to 401(k) for every dollar | $0.75 | $0.75 | ' |
Matching contribution percent to employee's contribution in pay period | 7.00% | 1.00% | ' |
NonOperating_Income_Details
Non-Operating Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Nonoperating Income (Expense) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | $2,940,000 | $5,464,000 | $3,679,000 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -228,000 | -311,000 | -1,318,000 |
Gain (loss) on sale of investments reclassified from other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 4,207,000 | 538,000 | 260,000 |
Other income (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -3,198,000 | -2,734,000 | -912,000 |
Non-operating income (expense), net | 2,529,000 | 771,000 | 3,111,000 | 945,000 | -577,000 | 1,880,000 | 995,000 | 659,000 | 7,356,000 | 2,957,000 | 1,709,000 |
Interest on business tax expense related to prior years | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | 900,000 |
Business tax expense related to prior years | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,400,000 |
Cost-method Investments, Realized Gain (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -2,034,000 | 0 |
Holding gain upon acquisition of additional ownership of equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | ($3,635,000) | $0 | $0 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense and Effective Tax Rate) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes and equity in net income of unconsolidated entities | $44,426 | $45,384 | $46,695 | $41,505 | $38,692 | $41,744 | $42,131 | $31,058 | $178,010 | $153,625 | $140,124 |
Equity in net income of unconsolidated entities | 256 | 315 | 360 | 497 | 486 | 478 | 497 | 566 | 1,428 | 2,027 | 1,848 |
Net (income) loss attributable to the noncontrolling interest | 29 | 29 | 21 | 43 | 55 | 34 | 4 | 24 | 122 | 117 | 43 |
Income loss from continuing operations before income taxes domestic and foreign | ' | ' | ' | ' | ' | ' | ' | ' | 179,560 | 155,769 | 142,015 |
Income tax expense | $13,384 | $14,265 | $15,955 | $12,427 | $11,437 | $15,186 | $14,744 | $11,511 | $56,031 | $52,878 | $43,658 |
Effective income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 31.20% | 33.90% | 30.70% |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Examination [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense at U.S. federal rate | ' | ' | ' | ' | ' | ' | ' | ' | $62,845 | $54,519 | $49,705 |
Income tax expense at U.S. federal rate, percent | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State income taxes, net of frderal income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 3,029 | 1,510 | 1,376 |
State income taxes, net of frderal income tax benefit, percent | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | 1.00% | 1.00% |
Stock option activity | ' | ' | ' | ' | ' | ' | ' | ' | 254 | 516 | 440 |
Stock option activity, percent | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.30% | 0.30% |
Non-U.S. witholding taxes, net of federal income tax effect, and foreign tax credits | ' | ' | ' | ' | ' | ' | ' | ' | 310 | 307 | 346 |
Non-U.S. witholding taxes, net of federal income tax effect, and foreign tax credits, percent | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.20% | 0.20% |
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses | ' | ' | ' | ' | ' | ' | ' | ' | -1,842 | -630 | 394 |
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses, percent | ' | ' | ' | ' | ' | ' | ' | ' | -1.00% | -0.40% | 0.30% |
Difference between U.S. federal statutory and foreign tax rates | ' | ' | ' | ' | ' | ' | ' | ' | -2,513 | -2,777 | -2,393 |
Difference between U.S. federal statutory and foreign tax rates, percent | ' | ' | ' | ' | ' | ' | ' | ' | -1.40% | -1.80% | -1.70% |
Change in unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | -211 | 967 | 3,126 |
Changes in unrecognized tax benefits, percent | ' | ' | ' | ' | ' | ' | ' | ' | -0.10% | 0.60% | 2.20% |
Other tax credits | ' | ' | ' | ' | ' | ' | ' | ' | -4,374 | -1,494 | -7,734 |
Other tax credits, percent | ' | ' | ' | ' | ' | ' | ' | ' | -2.50% | -1.00% | -5.40% |
Recognition of deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | -1,448 | 0 | -1,778 |
Recognition of deferred tax assets, percent | ' | ' | ' | ' | ' | ' | ' | ' | -0.80% | 0.00% | -1.30% |
Other - net | ' | ' | ' | ' | ' | ' | ' | ' | -19 | -40 | 176 |
Other - net, percent | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.10% |
Income tax expense | $13,384 | $14,265 | $15,955 | $12,427 | $11,437 | $15,186 | $14,744 | $11,511 | $56,031 | $52,878 | $43,658 |
Incomr tax expense, percent | ' | ' | ' | ' | ' | ' | ' | ' | 31.20% | 33.90% | 30.70% |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $42,808 | $38,821 | $41,520 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 3,882 | 1,997 | 1,808 |
Non-U.S. | ' | ' | ' | ' | ' | ' | ' | ' | 10,456 | 5,719 | 5,756 |
Current tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 57,146 | 46,537 | 49,084 |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 2,630 | 6,287 | -1,011 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 814 | 334 | -242 |
Non-U.S. | ' | ' | ' | ' | ' | ' | ' | ' | -4,559 | -280 | -4,173 |
Deferred tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -1,115 | 6,341 | -5,426 |
Income tax expense | $13,384 | $14,265 | $15,955 | $12,427 | $11,437 | $15,186 | $14,744 | $11,511 | $56,031 | $52,878 | $43,658 |
Income_Taxes_Schedule_of_Incom1
Income Taxes (Schedule of Income before Income Taxes and Equity in Net Income of Unconsolidated Entities) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | $144,065 | $128,920 | $123,390 |
Non-U.S. | ' | ' | ' | ' | ' | ' | ' | ' | 33,945 | 24,705 | 16,734 |
Income before income taxes and equity in net income of unconsolidated entities | $44,426 | $45,384 | $46,695 | $41,505 | $38,692 | $41,744 | $42,131 | $31,058 | $178,010 | $153,625 | $140,124 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Stock-based compensation expense | $3,479 | $4,019 |
Accrued liabilities | 9,805 | 8,402 |
Net operating loss carryforwards - U.S. | 851 | 930 |
Net operating loss carryforwards - Non-U.S. | 9,229 | 12,386 |
Research and development | 0 | 246 |
Deferred royalty revenue | 366 | 383 |
Allowance for doubtful accounts | 758 | 515 |
Deferred rent | 8,673 | 9,031 |
Other | 0 | 846 |
Total deferred tax assets | 33,161 | 36,758 |
Deferred tax liabilities: | ' | ' |
Acquired intangible assets | -12,967 | -14,535 |
Property, equipment and capitalized software | -15,525 | -14,615 |
Unrealized exchange gains, net | -395 | -444 |
Prepaid expenses | -4,299 | -3,694 |
Investments in unconsolidated entities | -12,009 | -9,905 |
Other | -373 | 0 |
Total deferred tax liabilities | -45,568 | -43,193 |
Net deferred tax liability before valuation allowance | 12,407 | 6,435 |
Valuation allowance | -7,456 | -11,407 |
Net deferred tax liability | ($19,863) | ($17,842) |
Income_Taxes_Schedule_of_Defer1
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax assets, net - current | $3,892 | $3,741 |
Deferred tax liabilities, net - noncurrent | -23,755 | -21,583 |
Net deferred tax liability | ($19,863) | ($17,842) |
Income_Taxes_Summary_of_Operat
Income Taxes (Summary of Operating Loss Carryforward- U.S and Non-U.S) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | ' | ' |
Undistributed earnings of foreigh subsidiaries, permanently invested | $112,600,000 | ' |
Non-U.S. [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 45,368,000 | 50,568,000 |
Operating loss carryforwards, not subject to valuation allowances | 8,759,000 | 4,031,000 |
Non-U.S. [Member] | Subject to Expiration Date [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 5,314,000 | 6,064,000 |
Non-U.S. [Member] | No Expiration Date [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | 40,054,000 | 44,504,000 |
U.S [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforward, amount subject to limitations | 225,000 | ' |
U.S [Member] | Subject to Expiration Date [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating loss carryforwards | $2,136,000 | $2,362,000 |
Operating loss carryforwards, expiration dates | 31-Dec-23 | 31-Dec-23 |
Income_Taxes_Accounting_for_Un
Income Taxes (Accounting for Uncertainty in Tax Positions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Gross unrecognized tax benefits - beginning of the year | $12,699,000 | ' | $12,189,000 |
Increases as a resulting of tax positions taken during a prior-year period | 791,000 | 445,000 | ' |
Decreases as a resulting of tax positions taked during a prior-year period | -146,000 | -1,153,000 | ' |
Increases as a result of tax positions taken during the current period | 2,887,000 | 2,008,000 | ' |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | -2,779,000 | -299,000 | ' |
Decrease of unrecognized tax benefits relating to settlements with tax authorities | 2,785,000 | ' | ' |
Reductions as a result of lapse of the applicable statute of limitations | -494,000 | -491,000 | ' |
Gross unrecognized tax benefits - end of the year | 12,958,000 | 12,699,000 | 12,189,000 |
Unrecognized tax benefits included in current liabilities | 6,211,000 | ' | ' |
Unrecognized tax benefits included in non-current liabilities | 6,012,000 | ' | ' |
Result of tax position taken during period | 3,227,000 | ' | ' |
Increase in income tax expense | 2,690,000 | ' | ' |
Reductions resulting from settlements and lapse of statute of limitations | 3,275,000 | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | 10,557,000 | ' | ' |
Unrecognized tax benefits, period increase (decrease) | 3,532,000 | ' | ' |
Reductions resulting from settlements and lapse statute of limitations, tax effect | 2,301,000 | ' | ' |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $9,262,000 | ' | ' |
Income_Taxes_Summary_of_Income
Income Taxes (Summary of Income Tax Examinations) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Liabilities for interest and penalties | $1,865 | $2,232 |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2010 | Dec. 31, 2013 | Feb. 21, 2014 | |
Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Shares repurchased, program life to date, shares | 7,068,006 | ' | ' | ' | 7,068,006 | 7,350,000 |
Shares repurchased, program life to date, value | $449,784,000 | ' | ' | ' | $449,784,000 | ' |
Stock repurchase program, increase in authorized amount | 200,000,000 | 200,000,000 | 200,000,000 | 100,000,000 | ' | ' |
Stock repurchase program, authorized amount | 700,000,000 | 500,000,000 | 300,000,000 | 100,000,000 | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | ' | ' | $230,000,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 29, 2012 | |
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per common share | $0.30 | $0 | $0.13 | $0.13 | $0.13 | $0.10 | $0.10 | $0.10 | $0.55 | $0.43 | $0.25 | $0.17 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenue | $180,500 | $173,482 | $175,428 | $168,856 | $170,609 | $160,952 | $165,968 | $160,759 | ' | ' | ' | $698,266 | $658,288 | $631,400 | |||||||||||
Total operating expense | 138,603 | [1] | 128,869 | [1] | 131,844 | [1] | 128,296 | [1] | 131,340 | [1] | 121,088 | [1] | 124,832 | [1] | 130,360 | [1] | ' | ' | ' | 527,612 | [2] | 507,620 | [2] | 492,985 | [2] |
Operating income | 41,897 | 44,613 | 43,584 | 40,560 | 39,269 | 39,864 | 41,136 | 30,399 | ' | ' | ' | 170,654 | 150,668 | 138,415 | |||||||||||
Non-operating income (expense), net | 2,529 | 771 | 3,111 | 945 | -577 | 1,880 | 995 | 659 | ' | ' | ' | 7,356 | 2,957 | 1,709 | |||||||||||
Income before income taxes and equity in net income of unconsolidated entities | 44,426 | 45,384 | 46,695 | 41,505 | 38,692 | 41,744 | 42,131 | 31,058 | ' | ' | ' | 178,010 | 153,625 | 140,124 | |||||||||||
Income tax expense | 13,384 | 14,265 | 15,955 | 12,427 | 11,437 | 15,186 | 14,744 | 11,511 | ' | ' | ' | 56,031 | 52,878 | 43,658 | |||||||||||
Equity in net income (loss) of unconsolidated entities | 256 | 315 | 360 | 497 | 486 | 478 | 497 | 566 | ' | ' | ' | 1,428 | 2,027 | 1,848 | |||||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 31,298 | 31,434 | 31,100 | 29,575 | 27,741 | 27,036 | 27,884 | 20,113 | ' | ' | ' | 123,407 | 102,774 | 98,314 | |||||||||||
Consolidated net income | 31,298 | 31,434 | 31,100 | 29,575 | 32,929 | 27,036 | 27,884 | 20,113 | ' | ' | ' | 123,407 | 107,962 | 98,314 | |||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | 0 | 0 | 5,188 | 0 | 0 | 0 | ' | ' | ' | 0 | 5,188 | 0 | |||||||||||
Net (income) loss attributable to the noncontrolling interest | 29 | 29 | 21 | 43 | 55 | 34 | 4 | 24 | ' | ' | ' | 122 | 117 | 43 | |||||||||||
Net income attributable to Morningstar, Inc. | 31,327 | 31,463 | 31,121 | 29,618 | 32,984 | 27,070 | 27,888 | 20,137 | ' | ' | ' | 123,529 | 108,079 | 98,357 | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | $2.68 | $2.12 | $1.96 | |||||||||||
Earnings Per Share, Basic [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic net income per share attributable to Morningstar, Inc. | $0.68 | $0.68 | $0.67 | $0.64 | $0.70 | $0.56 | $0.57 | $0.40 | ' | ' | ' | $2.68 | $2.23 | $1.96 | |||||||||||
Weighted average common shares outstanding - basic | 45,756 | 46,080 | 46,400 | 46,406 | 46,913 | 47,975 | 49,195 | 49,938 | ' | ' | ' | 46,158 | 48,497 | 50,032 | |||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.68 | $0.68 | $0.66 | $0.63 | $0.58 | $0.56 | $0.56 | $0.40 | ' | ' | ' | $2.66 | $2.10 | $1.92 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | $0 | $0.11 | $0 | |||||||||||
Earnings Per Share, Diluted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Diluted net income per share attributable to Morningstar, Inc. | $0.68 | $0.68 | $0.66 | $0.63 | $0.69 | $0.56 | $0.56 | $0.40 | ' | ' | ' | $2.66 | $2.20 | $1.92 | |||||||||||
Weighted average common shares outstanding - diluted | 46,211 | 46,519 | 46,853 | 46,814 | 47,511 | 48,481 | 49,856 | 50,758 | ' | ' | ' | 46,491 | 49,148 | 50,988 | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0 | $0 | $0 | $0 | $0.11 | $0 | $0 | $0 | ' | ' | ' | $0 | $0.10 | $0 | |||||||||||
Dividends Per Common Share: [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Common stock, dividends, per share, declared | $0.30 | $0 | $0.13 | $0.13 | $0.13 | $0.10 | $0.10 | $0.10 | ' | ' | ' | $0.55 | $0.43 | $0.25 | |||||||||||
Dividends paid per common share | $0.13 | $0.13 | $0.13 | $0 | $0.23 | $0.10 | $0.10 | $0.10 | ' | ' | ' | $0.38 | $0.53 | $0.20 | |||||||||||
Includes stock-based compaensation expense of: | $3,890 | ' | ' | ' | $7,311 | $3,416 | $3,954 | $3,783 | $3,994 | $3,734 | $3,866 | $15,043 | $18,905 | $15,303 | |||||||||||
[1] | 2012 2013 (in thousands)B Q1B Q2B Q3B Q4B Q1B Q2B Q3B Q4B (1) Includes stock-based compensation expense of:B $3,866B $3,734B $3,994B $7,311B $3,783B $3,954B $3,416B $3,890 | ||||||||||||||||||||||||
[2] | 2013B 2012B 2011(1)B Includes stock-based compensation expense of: Cost of revenueB $6,870B $6,416B $6,236Sales and marketingB 1,975B 1,937B 1,871General and administrativeB 6,198B 10,552B 7,196Total stock-based compensation expenseB $15,043B $18,905B $15,303 |