Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document and Entity Information Abstract | ' | ' |
Entity Registrant Name | 'MORNINGSTAR, INC. | ' |
Entity Central Index Key | '0001289419 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 44,721,637 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Revenue | $189,385 | $175,428 | $370,550 | $344,284 | ||||
Operating expense (1): | ' | ' | ' | ' | ||||
Cost of revenue | 81,387 | [1] | 64,427 | [1] | 157,101 | [1] | 126,077 | [1] |
Sales and marketing | 27,949 | [1] | 28,035 | [1] | 56,377 | [1] | 56,015 | [1] |
General and administrative | 30,438 | [1] | 28,120 | [1] | 56,542 | [1] | 55,447 | [1] |
Depreciation and amortization | 13,391 | 11,262 | 25,778 | 22,601 | ||||
Litigation settlement | 61,000 | 0 | 61,000 | 0 | ||||
Total operating expense | 214,165 | [1] | 131,844 | [1] | 356,798 | [1] | 260,140 | [1] |
Operating income (loss) | -24,780 | 43,584 | 13,752 | 84,144 | ||||
Non-operating income (expense): | ' | ' | ' | ' | ||||
Interest income (expense), net | 634 | 664 | 1,219 | 1,405 | ||||
Gain (loss) on sale of investments reclassified from other comprehensive income | 371 | 423 | 347 | 1,148 | ||||
Equity Method Investments Holding Gain | 5,168 | 3,713 | 5,168 | 3,713 | ||||
Other income (expense), net | -275 | -1,689 | 29 | -2,210 | ||||
Non-operating income (expense), net | 5,898 | 3,111 | 6,763 | 4,056 | ||||
Income before income taxes and equity in net income of unconsolidated entities | -18,882 | 46,695 | 20,515 | 88,200 | ||||
Equity in net income of unconsolidated entities | 497 | 360 | 1,096 | 857 | ||||
Income tax expense | -8,611 | 15,955 | 5,039 | 28,382 | ||||
Consolidated net income | -9,774 | 31,100 | 16,572 | 60,675 | ||||
Net (income) loss attributable to the noncontrolling interest | 5 | 21 | 35 | 64 | ||||
Net income attributable to Morningstar, Inc. | ($9,769) | $31,121 | $16,607 | $60,739 | ||||
Net income per share attributable to: | ' | ' | ' | ' | ||||
Basic (in dollars per share) | ($0.22) | $0.67 | $0.37 | $1.31 | ||||
Diluted (in dollars per share) | ($0.22) | $0.66 | $0.37 | $1.30 | ||||
Dividends declared per common share | $0.17 | $0.13 | $0.34 | $0.25 | ||||
Dividends paid per common share | $0.17 | $0.13 | $0.34 | $0.13 | ||||
Weighted average shares outstanding: | ' | ' | ' | ' | ||||
Basic (in shares) | 44,777 | 46,400 | 44,778 | 46,403 | ||||
Diluted (in shares) | 44,777 | 46,853 | 45,039 | 46,756 | ||||
[1] | Three months ended June 30 Six months ended June 30 2014 2013 2014 2013(1) Includes stock-based compensation expense of: Cost of revenue $1,890 $1,691 $3,652 $3,392Sales and marketing 530 522 1,027 1,034General and administrative 1,943 1,741 3,623 3,311Total stock-based compensation expense $4,363 $3,954 $8,302 $7,737 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $4,363 | $3,954 | $8,302 | $7,737 |
Cost of Revenue | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,890 | 1,691 | 3,652 | 3,392 |
Sales and Marketing | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 530 | 522 | 1,027 | 1,034 |
General and Administrative | ' | ' | ' | ' |
(1) Includes stock-based compensation expense of: | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,943 | $1,741 | $3,623 | $3,311 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated net income (loss) | ($9,774) | $31,100 | $16,572 | $60,675 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 2,861 | -7,128 | 5,333 | -16,199 |
Unrealized gains on securities, net of tax: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during period | 280 | -166 | 396 | 1,000 |
Reclassification of gains included in net income | -233 | -271 | -218 | -734 |
Other comprehensive income (loss) | 2,908 | -7,565 | 5,511 | -15,933 |
Comprehensive income (loss) | -6,866 | 23,535 | 22,083 | 44,742 |
Comprehensive income (loss) | 10 | 64 | 15 | 206 |
Comprehensive income (loss) attributable to Morningstar, Inc. | ($6,856) | $23,599 | $22,098 | $44,948 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $176,254 | $168,160 |
Investments | 44,696 | 130,407 |
Accounts receivable, less allowance of $762 and $1,089, respectively | 135,017 | 114,131 |
Deferred tax asset, net | 6,437 | 3,892 |
Income tax receivable, net | 18,616 | 3,942 |
Other | 21,565 | 26,361 |
Total current assets | 402,585 | 446,893 |
Property, equipment, and capitalized software, net | 109,900 | 104,986 |
Investments in unconsolidated entities | 30,287 | 38,714 |
Goodwill | 388,837 | 326,450 |
Intangible assets, net | 111,779 | 103,909 |
Other assets | 7,835 | 9,716 |
Total assets | 1,051,223 | 1,030,668 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 97,251 | 42,131 |
Accrued compensation | 58,409 | 71,403 |
Deferred revenue | 161,921 | 149,225 |
Other | 4,607 | 6,786 |
Total current liabilities | 322,188 | 269,545 |
Accrued compensation | 7,512 | 8,193 |
Deferred tax liability, net | 19,183 | 23,755 |
Deferred rent | 23,158 | 23,938 |
Other long-term liabilities | 10,520 | 13,947 |
Total liabilities | 382,561 | 339,378 |
Morningstar, Inc. shareholders' equity: | ' | ' |
Common stock, no par value, 200,000,000 shares authorized, of which 44,715,637 and 44,967,423 shares were outstanding as of June 30, 2014 and December 31, 2013, respectively | 5 | 5 |
Treasury stock at cost, 7,676,092 shares as of June 30, 2014 and 7,202,896 shares as of December 31, 2013 | -484,560 | -449,054 |
Additional paid-in capital | 545,624 | 539,507 |
Retained earnings | 595,911 | 594,626 |
Accumulated other comprehensive income: | ' | ' |
Currency translation adjustment | 9,922 | 4,609 |
Unrealized gain on available-for-sale securities | 742 | 564 |
Total accumulated other comprehensive income | 10,664 | 5,173 |
Total Morningstar, Inc. shareholders' equity | 667,644 | 690,257 |
Noncontrolling interest | 1,018 | 1,033 |
Total equity | 668,662 | 691,290 |
Total liabilities and equity | $1,051,223 | $1,030,668 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $762 | $1,089 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 44,715,637 | 44,967,423 |
Treasury Stock, Shares | 7,676,092 | 7,202,896 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 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 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 16,572 | ' | ' | ' | 16,607 | ' | -35 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on available-for-sale investments, net of income tax of $219 | 396 | ' | ' | ' | ' | 396 | 0 |
Reclassification of adjustments for losses included in net income, net of income tax of $129 | -218 | ' | ' | ' | ' | -218 | 0 |
Foreign currency translation adjustment, net | 5,333 | ' | ' | ' | ' | 5,313 | 20 |
Other comprehensive income (loss) | 5,511 | ' | ' | ' | ' | 5,491 | 20 |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | -2,931 | 0 | 1,214 | -4,145 | ' | ' | ' |
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | ' | 238,015 | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation - restricted stock units | 8,302 | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | 8,302 | ' | ' | ' |
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 1,913 | ' | ' | 1,913 | ' | ' | ' |
Common share repurchased | -36,720 | ' | -36,720 | ' | ' | ' | ' |
Common share repurchased (in shares) | ' | -489,801 | ' | ' | ' | ' | ' |
Dividends declared - common shares outstanding | -15,211 | ' | ' | ' | -15,211 | ' | ' |
Dividends declared - restricted stock units | -64 | ' | ' | 47 | -111 | ' | ' |
Balance at Jun. 30, 2014 | $668,662 | $5 | ($484,560) | $545,624 | $595,911 | $10,664 | $1,018 |
Balance (in shares) at Jun. 30, 2014 | 44,715,637 | 44,715,637 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Equity (Parenthetical) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ' |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $219 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $129 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Consolidated net income (loss) | $16,572 | $60,675 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ' | ' |
Depreciation and amortization | 25,778 | 22,601 |
Deferred income taxes | -2,638 | -38 |
Stock-based compensation expense | 8,302 | 7,737 |
Provision for bad debt | -326 | 461 |
Equity in net income of unconsolidated entities | -1,096 | -857 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | -1,913 | -3,842 |
Equity Method Investments Holding Gain | 5,168 | 3,713 |
Other, net | -703 | 688 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | -19,340 | 524 |
Other assets | 163 | -3,465 |
Accounts payable and accrued liabilities | 61,196 | 638 |
Accrued compensation | -8,687 | -19,581 |
Income taxes- current | -12,169 | 13,693 |
Deferred revenue | 8,802 | 11,023 |
Deferred rent | -996 | -872 |
Other liabilities | -1,089 | -537 |
Cash provided by operating activities | 66,688 | 85,135 |
Investing activities | ' | ' |
Purchases of investments | -7,715 | -82,299 |
Proceeds from maturities and sales of investments | 95,499 | 96,128 |
Capital expenditures | -30,799 | -18,881 |
Other, net | 259 | 436 |
Cash used for investing activities | -7,203 | -15,693 |
Financing activities | ' | ' |
Proceeds from stock-option exercises, net | 2,072 | 2,810 |
Employee taxes withheld for restricted stock units | -5,003 | -5,157 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 1,913 | 3,842 |
Common shares repurchased | -36,720 | -53,937 |
Dividends paid | -15,309 | -5,889 |
Other, net | 14 | -50 |
Cash provided by (used for) financing activities | -53,033 | -58,381 |
Effect of exchange rate changes on cash and cash equivalents | 1,642 | -5,140 |
Net increase (decrease) in cash and cash equivalents | 8,094 | 5,921 |
Cash and cash equivalents-beginning of period | 168,160 | 163,889 |
Cash and cash equivalents-end of period | 176,254 | 169,810 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income taxes | 19,891 | 14,511 |
Supplemental information of non-cash investing and financing activities: | ' | ' |
Unrealized gain on available-for-sale investments | 270 | 418 |
Equipment obtained under long-term financing arrangement | 0 | 4,860 |
Payments to Acquire Businesses, Net of Cash Acquired | 64,447 | 11,125 |
Proceeds from Divestiture of Businesses | 0 | 957 |
Purchases of equity- and cost-method investments | $0 | $909 |
Basis_of_Presentation_of_Inter
Basis of Presentation of Interim Financial Information | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation of Interim Financial Information | ' |
Basis of Presentation of Interim Financial Information | |
The accompanying condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the Company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 28, 2014. | |
Certain prior period amounts have been reclassified to conform to our current period's presentation. We now include development expense in the cost of revenue category. We have reclassified development expense to include it in cost of revenue for all periods presented. We previously reported development expense as a separate operating expense category. | |
Separately, as a result of our recent reorganization (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. For the first six months of 2014 as compared with the same period in 2013, changes related to our more centralized organizational structure added $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 $8 million and $6 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented. | |
The acronyms that appear in the Notes to our Unaudited Condensed Consolidated Financial Statements refer to the following: | |
ASC: Accounting Standards Codification | |
ASU: Accounting Standards Update | |
FASB: Financial Accounting Standards Board | |
Correction
Correction | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||
Correction | ' | ||||||||||||
Correction | |||||||||||||
In 2014, we identified and corrected an immaterial classification error related to the current and long-term balance for deferred rent included on our Consolidated Balance Sheets as of December 31, 2013. The correcting entries had the effect of decreasing accounts payable and accrued liabilities by $10.7 million and increasing deferred rent (long-term) by the same amount. The financial statements have been corrected to reduce the current balance and increase the long-term balance as shown in the table below: | |||||||||||||
As of December 31, 2013 | |||||||||||||
$0 | Previously Reported | Correction | As Corrected | ||||||||||
Accounts payable and accrued liabilities | $ | 52,877 | $ | (10,746 | ) | $ | 42,131 | ||||||
Deferred rent | $ | 13,192 | $ | 10,746 | $ | 23,938 | |||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
We discuss our significant accounting policies in Note 2 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 28, 2014. | |
In addition, effective January 1, 2014, we adopted FASB 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 (a consensus of the FASB Emerging Issues Task Force). 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 acquiree 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. The adoption of ASU No. 2013-05 did not have a material effect on our consolidated financial statements. | |
We also adopted FASB ASU No. 2013-11, Income Taxes (Topic 740): 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), effective January 1, 2014. This update requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a 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. The adoption of ASU No. 2013-11 did not have a material effect on our consolidated financial statements. | |
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
Increased Ownership Interest in HelloWallet Holdings, Inc. | |||||||||||||||||||||||||||||
In June 2014, we acquired an additional 81.3% interest in HelloWallet Holdings, Inc. (HelloWallet), increasing our ownership to 100% from 18.7%. HelloWallet combines behavioral economics and the psychology of decision-making with sophisticated technology to provide personalized, unbiased financial guidance to U.S. workers and their families through their employer benefit plans. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on June 3, 2014. | |||||||||||||||||||||||||||||
HelloWallet's total preliminary estimated fair value of $54,006,000 includes $40,525,000 in cash paid to acquire the remaining 81.3% interest in HelloWallet and pay off HelloWallet's indebtedness as well as $13,481,000 related to the 18.7% of HelloWallet we previously held. We recorded a preliminary non-cash holding gain of $5,168,000 for the difference between the fair value and the book value of our previously held investment. The gain is included in non-operating income in our Unaudited Condensed Consolidated Statement of Income. | |||||||||||||||||||||||||||||
The preliminary allocation of the purchase price will be finalized upon the completion of the fair value analysis of the acquired assets and liabilities, including the preliminary intangible assets. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities related to the acquisition to finalize the purchase price allocation. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of the identifiable intangible assets and income taxes. | |||||||||||||||||||||||||||||
The following table summarizes our preliminary allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition, all of which are preliminary pending receipt of the final valuation: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,739 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 150 | ||||||||||||||||||||||||||||
Other current and non-current assets | 318 | ||||||||||||||||||||||||||||
Deferred tax asset | 7,340 | ||||||||||||||||||||||||||||
Intangible assets | 9,460 | ||||||||||||||||||||||||||||
Goodwill | 40,472 | ||||||||||||||||||||||||||||
Deferred revenue | (2,897 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,595 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (981 | ) | |||||||||||||||||||||||||||
Total fair value of HelloWallet | $ | 54,006 | |||||||||||||||||||||||||||
The preliminary allocation includes $9,460,000 of acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Technology based assets | 6,670 | 5 | |||||||||||||||||||||||||||
Intellectual property (trademarks and trade names) | 169 | 3 | |||||||||||||||||||||||||||
Non-competition agreement | 2,621 | 5 | |||||||||||||||||||||||||||
Total intangible assets | $ | 9,460 | 5 | ||||||||||||||||||||||||||
We recognized a preliminary deferred tax liability of $3,595,000 mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. The fair value of the acquired intangible assets and the deferred tax liability are preliminary pending receipt of the final valuation for these intangible assets. | |||||||||||||||||||||||||||||
We recognized a preliminary deferred tax asset of $7,340,000 mainly because of net operating losses of HelloWallet which will become available to Morningstar. | |||||||||||||||||||||||||||||
Preliminary goodwill of $40,472,000 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 bring together HelloWallet's comprehensive financial wellness expertise with Morningstar's independent, research-based retirement advice to create a holistic retirement savings and advice offering. | |||||||||||||||||||||||||||||
ByAllAccounts, Inc. | |||||||||||||||||||||||||||||
In April 2014, we acquired ByAllAccounts, Inc. (ByAllAccounts), a provider of innovative data aggregation technology for financial applications, for $27,949,000 in cash. ByAllAccounts uses a knowledge-based process, including patented artificial intelligence technology, to collect, consolidate, and enrich financial account data and deliver it to virtually any platform. We began including the financial results of this acquisition in our Consolidated Financial Statements on April 1, 2014. | |||||||||||||||||||||||||||||
The preliminary allocation of the purchase price will be finalized upon the completion of the fair value analysis of the acquired assets and liabilities, including the preliminary intangible assets. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities related to the acquisition to finalize the purchase price allocation. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of the identifiable intangible assets and income taxes. | |||||||||||||||||||||||||||||
The following table summarizes our preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 287 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 152 | ||||||||||||||||||||||||||||
Deferred tax asset | 3,685 | ||||||||||||||||||||||||||||
Other non-current assets | 257 | ||||||||||||||||||||||||||||
Intangible assets | 8,681 | ||||||||||||||||||||||||||||
Goodwill | 18,778 | ||||||||||||||||||||||||||||
Deferred revenue | (79 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,299 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (513 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 27,949 | |||||||||||||||||||||||||||
The preliminary allocation includes $8,681,000 of acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 5,506 | 24 | ||||||||||||||||||||||||||
Technology-based assets | 3,020 | 4.5 | |||||||||||||||||||||||||||
Intellectual property (trademarks and trade names) | 47 | 1 | |||||||||||||||||||||||||||
Non-competition agreement | 108 | 3 | |||||||||||||||||||||||||||
Total intangible assets | $ | 8,681 | 19 | ||||||||||||||||||||||||||
We recognized a preliminary deferred tax liability of $3,299,000 mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. The fair value of the acquired intangible assets and the deferred tax liability are preliminary pending receipt of the final valuation for these intangible assets. | |||||||||||||||||||||||||||||
We recognized a preliminary deferred tax asset of $3,685,000 mainly because of net operating losses of ByAllAccounts which will become available to Morningstar. | |||||||||||||||||||||||||||||
Preliminary goodwill value of $18,778,000 represents the premium we paid over the fair value of the acquired net tangible and intangible assets. We paid this premium for a number of reasons, including the opportunity to integrate the service into our offerings as well as expand and develop ByAllAccounts' third-party distribution relationships. | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from December 31, 2013 to June 30, 2014: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
Acquisitions of HelloWallet and ByAllAccounts | 59,250 | ||||||||||||||||||||||||||||
Foreign currency translation | 3,137 | ||||||||||||||||||||||||||||
Balance as of June 30, 2014 | $ | 388,837 | |||||||||||||||||||||||||||
We did not record any impairment losses in the first six months of 2014 or 2013. We perform our annual impairment reviews in the fourth quarter. | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
$0 | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 30,177 | $ | (24,741 | ) | $ | 5,436 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | |||||||||||||
Customer-related assets | 148,000 | (80,782 | ) | 67,218 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (114 | ) | 126 | 20 | 240 | (108 | ) | 132 | 20 | |||||||||||||||||||
Technology-based assets | 90,979 | (54,729 | ) | 36,250 | 9 | 80,489 | (50,673 | ) | 29,816 | 9 | |||||||||||||||||||
Non-competition agreement | 4,428 | (1,679 | ) | 2,749 | 5 | 1,661 | (1,571 | ) | 90 | 4 | |||||||||||||||||||
Total intangible assets | $ | 273,824 | $ | (162,045 | ) | $ | 111,779 | 11 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 | |||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Amortization expense | $ | 5,501 | $ | 5,337 | $ | 10,643 | $ | 10,962 | |||||||||||||||||||||
We amortize intangible assets using the straight-line method over their expected economic useful lives. | |||||||||||||||||||||||||||||
We expect intangible amortization expense for 2014 and subsequent years as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2014 | $ | 22,493 | |||||||||||||||||||||||||||
2015 | 22,669 | ||||||||||||||||||||||||||||
2016 | 18,071 | ||||||||||||||||||||||||||||
2017 | 13,406 | ||||||||||||||||||||||||||||
2018 | 11,190 | ||||||||||||||||||||||||||||
Thereafter | 34,593 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Income_Per_Share
Income Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Income Per Share | ' | ||||||||||||||||
Income Per Share | |||||||||||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic net income (loss) per share attributable to Morningstar, Inc.: | |||||||||||||||||
Net income (loss) attributable to Morningstar, Inc.: | $ | (9,769 | ) | $ | 31,121 | $ | 16,607 | $ | 60,739 | ||||||||
Less: Distributed earnings available to participating securities | (1 | ) | (2 | ) | (4 | ) | (5 | ) | |||||||||
Less: Undistributed earnings available to participating securities | 3 | (9 | ) | — | (18 | ) | |||||||||||
Numerator for basic net income (loss) per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,716 | ||||||||
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 | |||||||||||||
Basic net income (loss) per share attributable to Morningstar, Inc. | $ | (0.22 | ) | $ | 0.67 | $ | 0.37 | $ | 1.31 | ||||||||
Diluted net income (loss) per share attributable to Morningstar, Inc.: | |||||||||||||||||
Numerator for basic net income (loss) per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,716 | ||||||||
Add: Undistributed earnings allocated to participating securities | (3 | ) | 9 | — | 18 | ||||||||||||
Less: Undistributed earnings reallocated to participating securities | 3 | (9 | ) | — | (17 | ) | |||||||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,717 | ||||||||
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 | |||||||||||||
Net effect of dilutive stock options and restricted stock units | — | 453 | 261 | 353 | |||||||||||||
Weighted average common shares outstanding for computing diluted income per share | 44,777 | 46,853 | 45,039 | 46,756 | |||||||||||||
Diluted net income (loss) per share attributable to Morningstar, Inc. | $ | (0.22 | ) | $ | 0.66 | $ | 0.37 | $ | 1.3 | ||||||||
Because of our net loss for the quarter ended June 30, 2014, the assumed exercise of stock options and vesting of restricted stock units outstanding would have had an anti-dilutive effect and were therefore excluded from the computation of diluted net loss per share. | |||||||||||||||||
The following table shows the number of weighted average stock options, restricted stock units, performance share awards, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average stock options | 160 | — | — | — | |||||||||||||
Weighted average restricted stock units | 108 | 2 | 18 | 22 | |||||||||||||
Weighted average performance share awards | 10 | — | — | — | |||||||||||||
Weighted average restricted stock | 3 | 6 | |||||||||||||||
Total | 281 | 2 | 24 | 22 | |||||||||||||
These stock options, restricted stock units and performance share awards could be included in the calculation in the future. |
Segment_and_Geographical_Area_
Segment and Geographical Area Information | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||
Segment and Geographical Area Information | ' | |||||||||||||||||
Segment, Enterprise-Wide, and Geographical Area Information | ||||||||||||||||||
Segment Information | ||||||||||||||||||
Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | ||||||||||||||||||
Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||
The accounting policies for our single reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2013. We evaluate the performance of our reporting segment based on revenue and operating income. | ||||||||||||||||||
Products and Services Information | ||||||||||||||||||
We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group: | ||||||||||||||||||
External revenue by product group | ||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Investment information | $ | 149,527 | $ | 140,031 | $ | 290,797 | $ | 275,116 | ||||||||||
Investment management | 39,858 | 35,397 | 79,753 | 69,168 | ||||||||||||||
Consolidated revenue | $ | 189,385 | $ | 175,428 | $ | 370,550 | $ | 344,284 | ||||||||||
Geographical Area Information | ||||||||||||||||||
The tables below summarize our revenue and long-lived assets by geographical area: | ||||||||||||||||||
External revenue by geographical area | ||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | $ | 136,453 | $ | 126,335 | $ | 266,405 | $ | 247,748 | ||||||||||
United Kingdom | 15,544 | 14,015 | 30,882 | 27,168 | ||||||||||||||
Continental Europe | 15,921 | 13,993 | 31,547 | 27,160 | ||||||||||||||
Australia | 9,233 | 9,176 | 17,401 | 18,528 | ||||||||||||||
Canada | 7,542 | 7,812 | 15,209 | 15,548 | ||||||||||||||
Asia | 3,888 | 3,449 | 7,597 | 6,873 | ||||||||||||||
Other | 804 | 648 | 1,509 | 1,259 | ||||||||||||||
Total International | 52,932 | 49,093 | 104,145 | 96,536 | ||||||||||||||
Consolidated revenue | $ | 189,385 | $ | 175,428 | $ | 370,550 | $ | 344,284 | ||||||||||
Long-lived assets by geographical area | ||||||||||||||||||
As of June 30 | As of December 31 | |||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||
United States | $ | 90,924 | $ | 84,321 | ||||||||||||||
United Kingdom | 6,720 | 6,873 | ||||||||||||||||
Continental Europe | 1,591 | 1,873 | ||||||||||||||||
Australia | 977 | 1,051 | ||||||||||||||||
Canada | 1,041 | 1,275 | ||||||||||||||||
Asia | 8,548 | 9,479 | ||||||||||||||||
Other | 99 | 114 | ||||||||||||||||
Total International | 18,976 | 20,665 | ||||||||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 109,900 | $ | 104,986 | ||||||||||||||
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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 June 30 | As of December 31 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 16,015 | $ | 91,461 | |||||||||||||||||||||||||||||
Held-to-maturity | 20,422 | 31,214 | |||||||||||||||||||||||||||||||
Trading securities | 8,259 | 7,732 | |||||||||||||||||||||||||||||||
Total | $ | 44,696 | $ | 130,407 | |||||||||||||||||||||||||||||
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 June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 3,396 | $ | 2 | $ | — | $ | 3,398 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | ||||||||||||||||
Corporate bonds | — | — | — | — | 49,913 | 22 | (124 | ) | 49,811 | ||||||||||||||||||||||||
Foreign obligations | — | — | — | — | 505 | — | (2 | ) | 503 | ||||||||||||||||||||||||
Commercial paper | — | — | — | — | 9,482 | 7 | — | 9,489 | |||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,311 | 1,100 | (118 | ) | 10,293 | 8,872 | 1,011 | (141 | ) | 9,742 | |||||||||||||||||||||||
Mutual funds | 2,137 | 276 | (89 | ) | 2,324 | 2,095 | 221 | (98 | ) | 2,218 | |||||||||||||||||||||||
Total | $ | 14,844 | $ | 1,378 | $ | (207 | ) | $ | 16,015 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 20,422 | $ | — | $ | — | $ | 20,422 | $ | 31,214 | $ | — | $ | — | $ | 31,214 | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, investments with unrealized losses for greater than a 12-month period were not material to the Condensed Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. | |||||||||||||||||||||||||||||||||
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of June 30, 2014 and December 31, 2013. 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 June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 3,396 | $ | 3,398 | $ | 45,486 | $ | 45,402 | |||||||||||||||||||||||||
Due in one to two years | — | — | 34,107 | 34,099 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 11,448 | 12,617 | 10,967 | 11,960 | |||||||||||||||||||||||||||||
Total | $ | 14,844 | $ | 16,015 | $ | 90,560 | $ | 91,461 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,417 | $ | 20,417 | $ | 31,210 | $ | 31,210 | |||||||||||||||||||||||||
Due in one to three years | 5 | 5 | 4 | 4 | |||||||||||||||||||||||||||||
Total | $ | 20,422 | $ | 20,422 | $ | 31,214 | $ | 31,214 | |||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, held-to-maturity investments included a $1,500,000 certificate of deposit held primarily as collateral against bank guarantees for our office leases, primarily in Australia. | |||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Realized gains | $ | 417 | $ | 662 | $ | 578 | $ | 2,226 | |||||||||||||||||||||||||
Realized losses | (46 | ) | (239 | ) | (231 | ) | (1,078 | ) | |||||||||||||||||||||||||
Realized gains, net | $ | 371 | $ | 423 | $ | 347 | $ | 1,148 | |||||||||||||||||||||||||
We determine realized gains and losses using the specific identification method. | |||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | (224 | ) | $ | (45 | ) | $ | (155 | ) | $ | 273 | ||||||||||||||||||||||
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 June 30, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | June 30, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 3,398 | $ | — | $ | 3,398 | $ | — | |||||||||||||||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||||||||||||||||||
Foreign obligations | — | — | — | — | |||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 10,293 | 10,293 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 2,324 | 2,324 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8,259 | 8,259 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 2,691 | 2,691 | — | — | |||||||||||||||||||||||||||||
Total | $ | 26,965 | $ | 23,567 | $ | 3,398 | $ | — | |||||||||||||||||||||||||
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 | $ | — | |||||||||||||||||||||||||
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. | ||||||||||||||||||||||||||||||||
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||||||||||||||||||
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||||||||||||||||||||||
Based on our analysis of the nature and risks of our investments in equity securities and mutual funds, we have determined that presenting each of these investment categories in the aggregate is appropriate. | |||||||||||||||||||||||||||||||||
We measure the fair value of money market funds, mutual funds, equity securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. All other financial instruments were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from observable market data. We did not hold any securities categorized as Level 3 as of June 30, 2014 and December 31, 2013. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 June 30 | As of December 31 | ||||||||
$0 | 2014 | 2013 | |||||||
Investment in MJKK | $ | 22,173 | $ | 21,782 | |||||
Other equity method investments | 5,788 | 6,166 | |||||||
Investments accounted for using the cost method | 2,326 | 10,766 | |||||||
Total investments in unconsolidated entities | $ | 30,287 | $ | 38,714 | |||||
Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 47650. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: | |||||||||
As of June 30 | As of December 31 | ||||||||
2014 | 2013 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 7,567,560 | ¥ | 9,824,068 | |||||
Equivalent U.S. dollars ($000) | $ | 74,616 | $ | 94,999 | |||||
Other Equity Method Investments. As of June 30, 2014 and December 31, 2013, other equity method investments consist of our investment in Inquiry Financial Europe AB (Inquiry Financial) and YCharts, Inc. (YCharts). Inquiry Financial is a provider of sell-side consensus estimate data. Our ownership interest in Inquiry Financial was approximately 34% as of June 30, 2014 and December 31, 2013. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of June 30, 2014 and December 31, 2013. | |||||||||
We did not record any impairment losses on our equity method investments in the first six months of 2014 or 2013. | |||||||||
Cost Method Investments. As of June 30, 2014 and December 31, 2013, our cost method investments consist of a minority investment in Pitchbook Data, Inc. (Pitchbook). Pitchbook offers detailed data and information about private equity transactions, investors, companies, limited partners, and service providers. | |||||||||
As of December 31, 2013, our cost method investments also included a minority investment in HelloWallet LLC (HelloWallet). In June 2014, we purchased the remaining interest in HelloWallet. See Note 4 for additional information concerning our acquisition of HelloWallet. | |||||||||
We did not record any impairment losses on our cost method investments in the first six months of 2014 or 2013. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
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, performance share awards, 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 June 30 | |||||||||||||||||||||||||||
(in thousands) | 2014 | ||||||||||||||||||||||||||
Shares available for future grants | 4,248 | ||||||||||||||||||||||||||
Accounting for Stock-Based Compensation Awards | |||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | |||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Restricted stock units | $ | 3,983 | $ | 3,734 | $ | 7,675 | $ | 7,297 | |||||||||||||||||||
Restricted stock | 97 | 97 | 194 | 194 | |||||||||||||||||||||||
Performance share awards | 173 | — | 200 | — | |||||||||||||||||||||||
Stock options | 110 | 123 | 233 | 246 | |||||||||||||||||||||||
Total stock-based compensation expense | $ | 4,363 | $ | 3,954 | $ | 8,302 | $ | 7,737 | |||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 1,283 | $ | 1,068 | $ | 2,362 | $ | 2,098 | |||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of June 30, 2014 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 | $ | 39,567 | 36 | ||||||||||||||||||||||||
Restricted stock | 323 | 10 | |||||||||||||||||||||||||
Performance share awards | 1,716 | 30 | |||||||||||||||||||||||||
Stock options | 353 | 11 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 41,959 | 35 | ||||||||||||||||||||||||
In accordance with FASB ASC 718, Compensation—Stock Compensation, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. Our largest annual equity grants typically have vesting dates in the second quarter. We adjust the stock-based compensation expense annually in the third quarter to reflect those awards that ultimately vested and update our estimate of the forfeiture rate that will be applied to awards not yet vested. | |||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||
Restricted stock units represent the right to receive a share of Morningstar common stock when that unit vests. Restricted stock units to employees vest ratably over a four-year period. Restricted stock units granted to non-employee directors vest ratably over a three-year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit. | |||||||||||||||||||||||||||
We measure the fair value of our restricted stock units on the date of grant based on the closing market price of the underlying common stock on the day prior to the grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the first six months of 2014: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2013 | 680,002 | 16,682 | 696,684 | $ | 62.02 | ||||||||||||||||||||||
Granted | 245,350 | — | 245,350 | 73.11 | |||||||||||||||||||||||
Dividend equivalents | 1,528 | 76 | 1,604 | 57.5 | |||||||||||||||||||||||
Vested | (231,500 | ) | — | (231,500 | ) | 57.48 | |||||||||||||||||||||
Issued | — | (2,054 | ) | (2,054 | ) | 53.54 | |||||||||||||||||||||
Forfeited | (17,874 | ) | — | (17,874 | ) | 57.22 | |||||||||||||||||||||
RSUs Outstanding - June 30, 2014 | 677,506 | 14,704 | 692,210 | $ | 67.37 | ||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
In conjunction with our acquisition of Realpoint LLC in May 2010, we issued 199,174 shares of restricted stock to the selling employee-shareholders under the 2004 Stock Incentive Plan. The restricted stock vests ratably over a five-year period from the acquisition date and may be subject to forfeiture if the holder terminates his or her employment during the vesting period. | |||||||||||||||||||||||||||
Because of the terms of the restricted stock agreements prepared in conjunction with the Realpoint acquisition, we account for the grant of restricted stock as stock-based compensation expense and not as part of the acquisition consideration. | |||||||||||||||||||||||||||
We measured the fair value of the restricted stock on the date of grant based on the closing market price of our common stock on the day prior to the grant. We amortize the fair value of $9,363,000 to stock-based compensation expense over the vesting period. We have assumed that all of the remaining restricted stock will ultimately vest, and therefore have not incorporated a forfeiture rate for purposes of determining the stock-based compensation expense. | |||||||||||||||||||||||||||
Performance Share Awards | |||||||||||||||||||||||||||
In 2014, executive officers, other than Joe Mansueto, were granted performance share awards pursuant to which each executive becomes entitled to a number of shares of Morningstar common stock equal to the number of notional performance shares that become vested. Each award specifies a number of performance shares that will vest if pre-established target performance goals are attained. The number of performance shares that actually vest may be more or less than the specified number of performance shares to the extent Morningstar exceeds or fails to achieve, respectively, the target performance goals over a three-year performance period. | |||||||||||||||||||||||||||
The performance conditions are not considered in the determination of the grant date fair value for these awards. We measure the fair value of our performance share awards on the date of grant based on the closing market price of the underlying common stock on the day prior to the grant date. We amortize that value to stock-based compensation expense, based on the satisfaction of the performance condition that is most likely to be satisfied over the three-year service period ratably over the vesting period. | |||||||||||||||||||||||||||
Information as of June 30, 2014 regarding the Company's target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted during the first six months of 2014 is as follows: | |||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||
Target performance share awards granted | 23,685 | ||||||||||||||||||||||||||
Fair value (1) | $ | 80.91 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 23,685 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels | $ | 1,716,000 | |||||||||||||||||||||||||
(1) Represents the closing market price of Morningstar's stock on March 14, 2014, which is the last closing price prior to the grant date. | |||||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||
Stock options granted to employees vest ratably over a four-year period. Grants to our non-employee directors vest ratably over a three-year period. All grants expire 10 years after the date of grant. Almost all of the options granted under the 2004 Stock Incentive Plan have a premium feature in which the exercise price increases over the term of the option at a rate equal to the 10-year Treasury bond yield as of the date of grant. Options granted under the 2011 Plan have an exercise price equal to the fair market value on the grant date. | |||||||||||||||||||||||||||
The following tables summarize stock option activity in the first six months of 2014 for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | |||||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2013 | 179,559 | $ | 21.47 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (26,420 | ) | 21.67 | ||||||||||||||||||||||||
Options outstanding—June 30, 2014 | 153,139 | 21.91 | |||||||||||||||||||||||||
Options exercisable—June 30, 2014 | 153,139 | $ | 21.91 | ||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2013 | 253,972 | $ | 36.48 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (47,898 | ) | 30.58 | ||||||||||||||||||||||||
Options outstanding—June 30, 2014 | 206,074 | 38.27 | |||||||||||||||||||||||||
Options exercisable—June 30, 2014 | 189,604 | $ | 36.58 | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Six months ended June 30 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 3,760 | $ | 8,170 | |||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||||||||||
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) | |||||||||||||||||||||||||||
$21.61 - $26.96 | 280,732 | 0.62 | $ | 24.2 | $ | 13,364 | 280,732 | 0.62 | $ | 24.2 | $ | 13,364 | |||||||||||||||
$39.68 - $49.92 | 6,806 | 1.43 | 48.18 | 161 | 6,806 | 1.43 | 48.18 | 161 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.02 | 57.46 | 1,029 | 55,205 | 7.02 | 57.39 | 758 | |||||||||||||||||||
$21.61 - $59.35 | 359,213 | 1.91 | $ | 31.29 | $ | 14,554 | 342,743 | 1.67 | $ | 30.03 | $ | 14,283 | |||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$21.61 - $59.35 | 359,213 | 1.91 | $ | 31.29 | $ | 14,554 | |||||||||||||||||||||
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 June 30, 2014. The intrinsic value is based on our closing stock price of $71.81 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 Condensed Consolidated Statements of Operations. The following table summarizes our excess tax benefits: | |||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 1,340 | $ | 2,255 | $ | 1,913 | $ | 3,842 | |||||||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Effective Tax Rate | |||||||||||||||||
The following table shows our effective income tax rate for the three and six months ended June 30, 2014 and June 30, 2013: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes and equity in net income of unconsolidated entities | $ | (18,882 | ) | $ | 46,695 | $ | 20,515 | $ | 88,200 | ||||||||
Equity in net income of unconsolidated entities | 497 | 360 | 1,096 | 857 | |||||||||||||
Net loss attributable to the noncontrolling interest | 5 | 21 | 35 | 64 | |||||||||||||
Total | $ | (18,380 | ) | $ | 47,076 | $ | 21,646 | $ | 89,121 | ||||||||
Income tax expense (benefit) | $ | (8,611 | ) | $ | 15,955 | $ | 5,039 | $ | 28,382 | ||||||||
Effective tax rate | 46.8 | % | 33.9 | % | 23.3 | % | 31.8 | % | |||||||||
Our effective tax rate in the second quarter of 2014 was 46.8%, an increase of 12.9 percentage points compared with the prior-year period. During the second quarter of 2014, we reported a loss before income taxes and equity in net income of unconsolidated entities of $18.9 million, which included a litigation settlement expense of $61.0 million that is deductible for tax purposes. In the same period, we realized a $5.2 million non-taxable gain in connection with the purchase of the remaining ownership interest in HelloWallet. Because of these two items, we reported an income tax benefit of $8.6 million, which is equivalent to a 46.8% effective tax rate. | |||||||||||||||||
Our effective tax rate for the first six months of 2014 was 23.3%, which is lower than the statutory rate mainly because of the non-taxable gain of $5.2 million recorded in connection with purchasing the remaining ownership interest in HelloWallet. | |||||||||||||||||
Unrecognized Tax Benefits | |||||||||||||||||
The table below provides information concerning our gross unrecognized tax benefits as of June 30, 2014 and December 31, 2013. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | |||||||||||||||||
As of June 30 | As of December 31 | ||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||
Gross unrecognized tax benefits | $ | 11,476 | $ | 12,958 | |||||||||||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11,476 | $ | 10,557 | |||||||||||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,961 | $ | 9,262 | |||||||||||||
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | |||||||||||||||||
As of June 30 | As of December 31 | ||||||||||||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2014 | 2013 | |||||||||||||||
Current liability | $ | 4,490 | $ | 6,211 | |||||||||||||
Non-current liability | 6,712 | 6,012 | |||||||||||||||
Total liability for unrecognized tax benefits | $ | 11,202 | $ | 12,223 | |||||||||||||
We conduct business globally and, as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2014. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. | |||||||||||||||||
We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 69% of our cash, cash equivalents, and investments as of June 30, 2014 was held by our operations outside of the United States. As such, we believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not reasonably practical to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. | |||||||||||||||||
Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
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 countersuit 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 filed post-trial proposed findings of fact and conclusions of law on March 14, 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 (Business Logic) filed a complaint in the Circuit Court of Cook County, Illinois against Ibbotson Associates, Inc., one of our wholly owned subsidiaries, and Morningstar, Inc. relating to Ibbotson's prior commercial relationship with Business Logic. Business Logic alleged 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. | |
On July 17, 2014, Morningstar and Ibbotson entered into a settlement agreement with Business Logic relating to this litigation (the Settlement Agreement). Pursuant to the Settlement Agreement, among other things, Morningstar or Ibbotson will pay Business Logic $61.0 million and Business Logic (i) will dismiss with prejudice all claims asserted in the Litigation; (ii) grants releases to Morningstar, Ibbotson, and their clients; and (iii) grants to Morningstar, its affiliates, Ibbotson and their clients an irrevocable license to use the intellectual property at issue in the litigation. In late July 2014, Morningstar paid $15.0 million of the amount owed to Business Logic under the Settlement Agreement and the case was dismissed with prejudice. The Settlement Agreement provides that the remaining $46.0 million be paid on or before August 17, 2014. | |
Other Proceedings | |
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 | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Share Repurchase Program | ' |
Share Repurchase Program | |
We have an ongoing authorization, originally approved by our board of directors in September 2010, and subsequently amended, to repurchase up to $700 million in shares of our outstanding common stock. The authorization expires on December 31, 2015. 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 June 30, 2014, we had repurchased a total of 7,557,807 shares for $486.5 million under this authorization. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On July 17, 2014, Morningstar and Ibbotson entered into a settlement agreement with Business Logic Holding Corporation (Business Logic). Pursuant to the settlement agreement, Morningstar will pay Business Logic $61.0 million. In July 2014, Morningstar paid $15.0 million of the amount owed to Business Logic under the settlement agreement and the case was dismissed with prejudice. This obligation was accrued as of June 30, 2014 and the corresponding expense is reported as "Litigation settlement" in our Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2014. See Note 11, Contingencies, for additional information. | |
Separately, in July 2014, we established a $75 million single-bank revolving credit facility. The line of credit allows for borrowings from time to time of up to $75 million for general corporate purposes. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Reclassification, Policy [Policy Text Block] | ' |
Separately, as a result of our recent reorganization (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. For the first six months of 2014 as compared with the same period in 2013, changes related to our more centralized organizational structure added $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 $8 million and $6 million, respectively. These changes did not affect our total operating expense or operating income for any of the periods presented. | |
Segment Reporting, Policy [Policy Text Block] | ' |
Beginning with the third quarter of 2013, we revised our segment structure to reflect our shift to a more centralized organizational structure. We now report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |
Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | |
The accounting policies for our single reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2013. We evaluate the performance of our reporting segment based on revenue and operating income. | |
Investment, Policy [Policy Text Block] | ' |
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: |
Recovered_Sheet1
Investments and Fair value Measurements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Investment, Policy [Policy Text Block] | ' |
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments in three categories: available-for-sale, held-to-maturity, and trading. We monitor the concentration, diversification, maturity, and liquidity of our investment portfolio, which is primarily invested in fixed-income securities, and classify our investment portfolio as shown below: |
Correction_Tables
Correction (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | ' | ||||||||||||
The financial statements have been corrected to reduce the current balance and increase the long-term balance as shown in the table below: | |||||||||||||
As of December 31, 2013 | |||||||||||||
$0 | Previously Reported | Correction | As Corrected | ||||||||||
Accounts payable and accrued liabilities | $ | 52,877 | $ | (10,746 | ) | $ | 42,131 | ||||||
Deferred rent | $ | 13,192 | $ | 10,746 | $ | 23,938 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from December 31, 2013 to June 30, 2014: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
Acquisitions of HelloWallet and ByAllAccounts | 59,250 | ||||||||||||||||||||||||||||
Foreign currency translation | 3,137 | ||||||||||||||||||||||||||||
Balance as of June 30, 2014 | $ | 388,837 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||
$0 | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 30,177 | $ | (24,741 | ) | $ | 5,436 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | |||||||||||||
Customer-related assets | 148,000 | (80,782 | ) | 67,218 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (114 | ) | 126 | 20 | 240 | (108 | ) | 132 | 20 | |||||||||||||||||||
Technology-based assets | 90,979 | (54,729 | ) | 36,250 | 9 | 80,489 | (50,673 | ) | 29,816 | 9 | |||||||||||||||||||
Non-competition agreement | 4,428 | (1,679 | ) | 2,749 | 5 | 1,661 | (1,571 | ) | 90 | 4 | |||||||||||||||||||
Total intangible assets | $ | 273,824 | $ | (162,045 | ) | $ | 111,779 | 11 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 | |||||||||||||
Schedule of Intangible Asset, Amortization Expense | ' | ||||||||||||||||||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Amortization expense | $ | 5,501 | $ | 5,337 | $ | 10,643 | $ | 10,962 | |||||||||||||||||||||
Schedule of Expected Amortization Expense | ' | ||||||||||||||||||||||||||||
We expect intangible amortization expense for 2014 and subsequent years as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2014 | $ | 22,493 | |||||||||||||||||||||||||||
2015 | 22,669 | ||||||||||||||||||||||||||||
2016 | 18,071 | ||||||||||||||||||||||||||||
2017 | 13,406 | ||||||||||||||||||||||||||||
2018 | 11,190 | ||||||||||||||||||||||||||||
Thereafter | 34,593 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. | |||||||||||||||||||||||||||||
HelloWallet [Member] | ' | ||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||||||||||||||||||||
The following table summarizes our preliminary allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition, all of which are preliminary pending receipt of the final valuation: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,739 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 150 | ||||||||||||||||||||||||||||
Other current and non-current assets | 318 | ||||||||||||||||||||||||||||
Deferred tax asset | 7,340 | ||||||||||||||||||||||||||||
Intangible assets | 9,460 | ||||||||||||||||||||||||||||
Goodwill | 40,472 | ||||||||||||||||||||||||||||
Deferred revenue | (2,897 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,595 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (981 | ) | |||||||||||||||||||||||||||
Total fair value of HelloWallet | $ | 54,006 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||||||||||||||||||||||||||
The preliminary allocation includes $9,460,000 of acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Technology based assets | 6,670 | 5 | |||||||||||||||||||||||||||
Intellectual property (trademarks and trade names) | 169 | 3 | |||||||||||||||||||||||||||
Non-competition agreement | 2,621 | 5 | |||||||||||||||||||||||||||
Total intangible assets | $ | 9,460 | 5 | ||||||||||||||||||||||||||
ByAllAccounts, Inc. [Member] | ' | ||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||||||||||||||||||||||||
The following table summarizes our preliminary allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 287 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 152 | ||||||||||||||||||||||||||||
Deferred tax asset | 3,685 | ||||||||||||||||||||||||||||
Other non-current assets | 257 | ||||||||||||||||||||||||||||
Intangible assets | 8,681 | ||||||||||||||||||||||||||||
Goodwill | 18,778 | ||||||||||||||||||||||||||||
Deferred revenue | (79 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,299 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (513 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 27,949 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||||||||||||||||||||||||||
The preliminary allocation includes $8,681,000 of acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 5,506 | 24 | ||||||||||||||||||||||||||
Technology-based assets | 3,020 | 4.5 | |||||||||||||||||||||||||||
Intellectual property (trademarks and trade names) | 47 | 1 | |||||||||||||||||||||||||||
Non-competition agreement | 108 | 3 | |||||||||||||||||||||||||||
Total intangible assets | $ | 8,681 | 19 | ||||||||||||||||||||||||||
Income_Per_Share_Tables
Income Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||
The following table shows the number of weighted average stock options, restricted stock units, performance share awards, and restricted stock excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average stock options | 160 | — | — | — | |||||||||||||
Weighted average restricted stock units | 108 | 2 | 18 | 22 | |||||||||||||
Weighted average performance share awards | 10 | — | — | — | |||||||||||||
Weighted average restricted stock | 3 | 6 | |||||||||||||||
Total | 281 | 2 | 24 | 22 | |||||||||||||
These stock options, restricted stock units and performance share awards could be included in the calculation in the future. | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic net income (loss) per share attributable to Morningstar, Inc.: | |||||||||||||||||
Net income (loss) attributable to Morningstar, Inc.: | $ | (9,769 | ) | $ | 31,121 | $ | 16,607 | $ | 60,739 | ||||||||
Less: Distributed earnings available to participating securities | (1 | ) | (2 | ) | (4 | ) | (5 | ) | |||||||||
Less: Undistributed earnings available to participating securities | 3 | (9 | ) | — | (18 | ) | |||||||||||
Numerator for basic net income (loss) per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,716 | ||||||||
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 | |||||||||||||
Basic net income (loss) per share attributable to Morningstar, Inc. | $ | (0.22 | ) | $ | 0.67 | $ | 0.37 | $ | 1.31 | ||||||||
Diluted net income (loss) per share attributable to Morningstar, Inc.: | |||||||||||||||||
Numerator for basic net income (loss) per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,716 | ||||||||
Add: Undistributed earnings allocated to participating securities | (3 | ) | 9 | — | 18 | ||||||||||||
Less: Undistributed earnings reallocated to participating securities | 3 | (9 | ) | — | (17 | ) | |||||||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | (9,767 | ) | $ | 31,110 | $ | 16,603 | $ | 60,717 | ||||||||
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 | |||||||||||||
Net effect of dilutive stock options and restricted stock units | — | 453 | 261 | 353 | |||||||||||||
Weighted average common shares outstanding for computing diluted income per share | 44,777 | 46,853 | 45,039 | 46,756 | |||||||||||||
Diluted net income (loss) per share attributable to Morningstar, Inc. | $ | (0.22 | ) | $ | 0.66 | $ | 0.37 | $ | 1.3 | ||||||||
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Revenue from External Customer [Line Items] | ' | |||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | ' | |||||||||||||||||
Products and Services Information | ||||||||||||||||||
We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group: | ||||||||||||||||||
External revenue by product group | ||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Investment information | $ | 149,527 | $ | 140,031 | $ | 290,797 | $ | 275,116 | ||||||||||
Investment management | 39,858 | 35,397 | 79,753 | 69,168 | ||||||||||||||
Consolidated revenue | $ | 189,385 | $ | 175,428 | $ | 370,550 | $ | 344,284 | ||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||||
External revenue by geographical area | ||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | $ | 136,453 | $ | 126,335 | $ | 266,405 | $ | 247,748 | ||||||||||
United Kingdom | 15,544 | 14,015 | 30,882 | 27,168 | ||||||||||||||
Continental Europe | 15,921 | 13,993 | 31,547 | 27,160 | ||||||||||||||
Australia | 9,233 | 9,176 | 17,401 | 18,528 | ||||||||||||||
Canada | 7,542 | 7,812 | 15,209 | 15,548 | ||||||||||||||
Asia | 3,888 | 3,449 | 7,597 | 6,873 | ||||||||||||||
Other | 804 | 648 | 1,509 | 1,259 | ||||||||||||||
Total International | 52,932 | 49,093 | 104,145 | 96,536 | ||||||||||||||
Consolidated revenue | $ | 189,385 | $ | 175,428 | $ | 370,550 | $ | 344,284 | ||||||||||
Long-lived assets by geographical area | ||||||||||||||||||
As of June 30 | As of December 31 | |||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||
United States | $ | 90,924 | $ | 84,321 | ||||||||||||||
United Kingdom | 6,720 | 6,873 | ||||||||||||||||
Continental Europe | 1,591 | 1,873 | ||||||||||||||||
Australia | 977 | 1,051 | ||||||||||||||||
Canada | 1,041 | 1,275 | ||||||||||||||||
Asia | 8,548 | 9,479 | ||||||||||||||||
Other | 99 | 114 | ||||||||||||||||
Total International | 18,976 | 20,665 | ||||||||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 109,900 | $ | 104,986 | ||||||||||||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
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 June 30 | As of December 31 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 16,015 | $ | 91,461 | |||||||||||||||||||||||||||||
Held-to-maturity | 20,422 | 31,214 | |||||||||||||||||||||||||||||||
Trading securities | 8,259 | 7,732 | |||||||||||||||||||||||||||||||
Total | $ | 44,696 | $ | 130,407 | |||||||||||||||||||||||||||||
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 June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 3,396 | $ | 2 | $ | — | $ | 3,398 | $ | 19,693 | $ | 8 | $ | (3 | ) | $ | 19,698 | ||||||||||||||||
Corporate bonds | — | — | — | — | 49,913 | 22 | (124 | ) | 49,811 | ||||||||||||||||||||||||
Foreign obligations | — | — | — | — | 505 | — | (2 | ) | 503 | ||||||||||||||||||||||||
Commercial paper | — | — | — | — | 9,482 | 7 | — | 9,489 | |||||||||||||||||||||||||
Equity securities and exchange-traded funds | 9,311 | 1,100 | (118 | ) | 10,293 | 8,872 | 1,011 | (141 | ) | 9,742 | |||||||||||||||||||||||
Mutual funds | 2,137 | 276 | (89 | ) | 2,324 | 2,095 | 221 | (98 | ) | 2,218 | |||||||||||||||||||||||
Total | $ | 14,844 | $ | 1,378 | $ | (207 | ) | $ | 16,015 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 20,422 | $ | — | $ | — | $ | 20,422 | $ | 31,214 | $ | — | $ | — | $ | 31,214 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||||||||||
The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties. | |||||||||||||||||||||||||||||||||
As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 3,396 | $ | 3,398 | $ | 45,486 | $ | 45,402 | |||||||||||||||||||||||||
Due in one to two years | — | — | 34,107 | 34,099 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 11,448 | 12,617 | 10,967 | 11,960 | |||||||||||||||||||||||||||||
Total | $ | 14,844 | $ | 16,015 | $ | 90,560 | $ | 91,461 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 20,417 | $ | 20,417 | $ | 31,210 | $ | 31,210 | |||||||||||||||||||||||||
Due in one to three years | 5 | 5 | 4 | 4 | |||||||||||||||||||||||||||||
Total | $ | 20,422 | $ | 20,422 | $ | 31,214 | $ | 31,214 | |||||||||||||||||||||||||
Schedule of Realized Gain (Loss) on Available-For-Sale Securities | ' | ||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Realized gains | $ | 417 | $ | 662 | $ | 578 | $ | 2,226 | |||||||||||||||||||||||||
Realized losses | (46 | ) | (239 | ) | (231 | ) | (1,078 | ) | |||||||||||||||||||||||||
Realized gains, net | $ | 371 | $ | 423 | $ | 347 | $ | 1,148 | |||||||||||||||||||||||||
Unrealized Gain (Loss) On Trading Securities | ' | ||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | (224 | ) | $ | (45 | ) | $ | (155 | ) | $ | 273 | ||||||||||||||||||||||
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 June 30, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | June 30, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Government obligations | $ | 3,398 | $ | — | $ | 3,398 | $ | — | |||||||||||||||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||||||||||||||||||
Foreign obligations | — | — | — | — | |||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 10,293 | 10,293 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 2,324 | 2,324 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8,259 | 8,259 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 2,691 | 2,691 | — | — | |||||||||||||||||||||||||||||
Total | $ | 26,965 | $ | 23,567 | $ | 3,398 | $ | — | |||||||||||||||||||||||||
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 | $ | — | |||||||||||||||||||||||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 June 30 | As of December 31 | ||||||||
$0 | 2014 | 2013 | |||||||
Investment in MJKK | $ | 22,173 | $ | 21,782 | |||||
Other equity method investments | 5,788 | 6,166 | |||||||
Investments accounted for using the cost method | 2,326 | 10,766 | |||||||
Total investments in unconsolidated entities | $ | 30,287 | $ | 38,714 | |||||
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 June 30 | As of December 31 | ||||||||
2014 | 2013 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 7,567,560 | ¥ | 9,824,068 | |||||
Equivalent U.S. dollars ($000) | $ | 74,616 | $ | 94,999 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
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 June 30 | |||||||||||||||||||||||||||
(in thousands) | 2014 | ||||||||||||||||||||||||||
Shares available for future grants | 4,248 | ||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | |||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Restricted stock units | $ | 3,983 | $ | 3,734 | $ | 7,675 | $ | 7,297 | |||||||||||||||||||
Restricted stock | 97 | 97 | 194 | 194 | |||||||||||||||||||||||
Performance share awards | 173 | — | 200 | — | |||||||||||||||||||||||
Stock options | 110 | 123 | 233 | 246 | |||||||||||||||||||||||
Total stock-based compensation expense | $ | 4,363 | $ | 3,954 | $ | 8,302 | $ | 7,737 | |||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 1,283 | $ | 1,068 | $ | 2,362 | $ | 2,098 | |||||||||||||||||||
Schedule of Unrecognized Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of June 30, 2014 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 | $ | 39,567 | 36 | ||||||||||||||||||||||||
Restricted stock | 323 | 10 | |||||||||||||||||||||||||
Performance share awards | 1,716 | 30 | |||||||||||||||||||||||||
Stock options | 353 | 11 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 41,959 | 35 | ||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | ' | ||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the first six months of 2014: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2013 | 680,002 | 16,682 | 696,684 | $ | 62.02 | ||||||||||||||||||||||
Granted | 245,350 | — | 245,350 | 73.11 | |||||||||||||||||||||||
Dividend equivalents | 1,528 | 76 | 1,604 | 57.5 | |||||||||||||||||||||||
Vested | (231,500 | ) | — | (231,500 | ) | 57.48 | |||||||||||||||||||||
Issued | — | (2,054 | ) | (2,054 | ) | 53.54 | |||||||||||||||||||||
Forfeited | (17,874 | ) | — | (17,874 | ) | 57.22 | |||||||||||||||||||||
RSUs Outstanding - June 30, 2014 | 677,506 | 14,704 | 692,210 | $ | 67.37 | ||||||||||||||||||||||
Schedule of Performance Share Activity | ' | ||||||||||||||||||||||||||
Information as of June 30, 2014 regarding the Company's target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted during the first six months of 2014 is as follows: | |||||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||||
Target performance share awards granted | 23,685 | ||||||||||||||||||||||||||
Fair value (1) | $ | 80.91 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 23,685 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels | $ | 1,716,000 | |||||||||||||||||||||||||
(1) Represents the closing market price of Morningstar's stock on March 14, 2014, which is the last closing price prior to the grant date. | |||||||||||||||||||||||||||
Schedule of Options Granted at Exercise Price Below Fair Value per Share on Grant Date | ' | ||||||||||||||||||||||||||
The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | |||||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2013 | 179,559 | $ | 21.47 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (26,420 | ) | 21.67 | ||||||||||||||||||||||||
Options outstanding—June 30, 2014 | 153,139 | 21.91 | |||||||||||||||||||||||||
Options exercisable—June 30, 2014 | 153,139 | $ | 21.91 | ||||||||||||||||||||||||
Schedule of All Other Option Granted | ' | ||||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | |||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2013 | 253,972 | $ | 36.48 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (47,898 | ) | 30.58 | ||||||||||||||||||||||||
Options outstanding—June 30, 2014 | 206,074 | 38.27 | |||||||||||||||||||||||||
Options exercisable—June 30, 2014 | 189,604 | $ | 36.58 | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Six months ended June 30 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 3,760 | $ | 8,170 | |||||||||||||||||||||||
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of June 30, 2014: | |||||||||||||||||||||||||||
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) | |||||||||||||||||||||||||||
$21.61 - $26.96 | 280,732 | 0.62 | $ | 24.2 | $ | 13,364 | 280,732 | 0.62 | $ | 24.2 | $ | 13,364 | |||||||||||||||
$39.68 - $49.92 | 6,806 | 1.43 | 48.18 | 161 | 6,806 | 1.43 | 48.18 | 161 | |||||||||||||||||||
$57.28 - $59.35 | 71,675 | 7.02 | 57.46 | 1,029 | 55,205 | 7.02 | 57.39 | 758 | |||||||||||||||||||
$21.61 - $59.35 | 359,213 | 1.91 | $ | 31.29 | $ | 14,554 | 342,743 | 1.67 | $ | 30.03 | $ | 14,283 | |||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$21.61 - $59.35 | 359,213 | 1.91 | $ | 31.29 | $ | 14,554 | |||||||||||||||||||||
Schedule of Tax Benefits Related to Share Based Compensation | ' | ||||||||||||||||||||||||||
The following table summarizes our excess tax benefits: | |||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 1,340 | $ | 2,255 | $ | 1,913 | $ | 3,842 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||||||
The following table shows our effective income tax rate for the three and six months ended June 30, 2014 and June 30, 2013: | |||||||||||||||||
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||
$0 | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes and equity in net income of unconsolidated entities | $ | (18,882 | ) | $ | 46,695 | $ | 20,515 | $ | 88,200 | ||||||||
Equity in net income of unconsolidated entities | 497 | 360 | 1,096 | 857 | |||||||||||||
Net loss attributable to the noncontrolling interest | 5 | 21 | 35 | 64 | |||||||||||||
Total | $ | (18,380 | ) | $ | 47,076 | $ | 21,646 | $ | 89,121 | ||||||||
Income tax expense (benefit) | $ | (8,611 | ) | $ | 15,955 | $ | 5,039 | $ | 28,382 | ||||||||
Effective tax rate | 46.8 | % | 33.9 | % | 23.3 | % | 31.8 | % | |||||||||
Schedule of Gross Unrecognized Tax Benefits | ' | ||||||||||||||||
The table below provides information concerning our gross unrecognized tax benefits as of June 30, 2014 and December 31, 2013. The table also provides the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | |||||||||||||||||
As of June 30 | As of December 31 | ||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||
Gross unrecognized tax benefits | $ | 11,476 | $ | 12,958 | |||||||||||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11,476 | $ | 10,557 | |||||||||||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 9,961 | $ | 9,262 | |||||||||||||
Schedule of Liabilities for Unrecognized Tax Benefits | ' | ||||||||||||||||
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | |||||||||||||||||
As of June 30 | As of December 31 | ||||||||||||||||
Liabilities for Unrecognized Tax Benefits ($000) | 2014 | 2013 | |||||||||||||||
Current liability | $ | 4,490 | $ | 6,211 | |||||||||||||
Non-current liability | 6,712 | 6,012 | |||||||||||||||
Total liability for unrecognized tax benefits | $ | 11,202 | $ | 12,223 | |||||||||||||
Basis_of_Presentation_of_Inter1
Basis of Presentation of Interim Financial Information (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
position | |
Restructuring Cost and Reserve [Line Items] | ' |
Number of positions shifted | 180 |
Cost of Revenue [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Increase (decrease) in allocated compensation expense | 14 |
Selling and Marketing Expense [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Increase (decrease) in allocated compensation expense | 8 |
General and Administrative Expense [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Increase (decrease) in allocated compensation expense | 6 |
Correction_Details
Correction (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable and accrued liabilities | $97,251 | $42,131 |
Deferred rent | 23,158 | 23,938 |
Previously Reported [Member] | ' | ' |
Accounts payable and accrued liabilities | ' | 52,877 |
Deferred rent | ' | 13,192 |
Correction [Member] | ' | ' |
Accounts payable and accrued liabilities | ' | -10,746 |
Deferred rent | ' | $10,746 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 03, 2014 | Jun. 03, 2014 | Apr. 01, 2014 | Apr. 02, 2014 |
HelloWallet [Member] | HelloWallet [Member] | ByAllAccounts, Inc. [Member] | ByAllAccounts, Inc. [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Additional percentage of ownership acquired | ' | 81.30% | ' | ' |
Current ownership percentage | ' | 100.00% | ' | ' |
Prior ownership percentage | ' | 18.70% | ' | ' |
Estimated fair value | ' | $54,006 | ' | $27,949 |
Business combination, cash paid | 40,525 | ' | 27,949 | ' |
Previously held ownership percentage | 13,481 | ' | ' | ' |
Non-cash holding gain (loss) | $5,168 | ' | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Acquisitions) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 03, 2014 | Apr. 02, 2014 |
HelloWallet [Member] | ByAllAccounts, Inc. [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | $3,739,000 | $287,000 |
Accounts receivable and other current assets | ' | ' | 150,000 | 152,000 |
Other current and non-current assets | ' | ' | 318,000 | ' |
Deferred tax asset | ' | ' | 7,340,000 | 3,685,000 |
Other non-current assets | ' | ' | ' | 257,000 |
Intangible assets | ' | ' | 9,460,000 | 8,681,000 |
Goodwill | 388,837,000 | 326,450,000 | 40,472,000 | 18,778,000 |
Deferred revenue | ' | ' | -2,897,000 | -79,000 |
Deferred tax liability | ' | ' | -3,595,000 | -3,299,000 |
Other current and non-current liabilities | ' | ' | -981,000 | -513,000 |
Total purchase price | ' | ' | $54,006,000 | $27,949,000 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Acquired Intangible Assets) (Details) (USD $) | 0 Months Ended | ||||||||
Jun. 03, 2014 | Jun. 03, 2014 | Jun. 03, 2014 | Jun. 03, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | |
HelloWallet [Member] | HelloWallet [Member] | HelloWallet [Member] | HelloWallet [Member] | ByAllAccounts, Inc. [Member] | ByAllAccounts, Inc. [Member] | ByAllAccounts, Inc. [Member] | ByAllAccounts, Inc. [Member] | ByAllAccounts, Inc. [Member] | |
Technology-based assets [Member] | Intellectual property (trademarks and trade names) [Member] | Non-competition agreement [Member] | Customer-related assets [Member] | Technology-based assets [Member] | Intellectual property (trademarks and trade names) [Member] | Non-competition agreement [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets acquired | $9,460,000 | $6,670,000 | $169,000 | $2,621,000 | $8,681,000 | $5,506,000 | $3,020,000 | $47,000 | $108,000 |
Weighted Average Useful Life (years) | '5 years | '5 years | '3 years | '5 years | '19 years | '24 years | '4 years 6 months | '1 year | '3 years |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, Beginning Balance | $326,450 |
Acquisitions of HelloWallet and ByAllAccounts | 59,250 |
Foreign currency translation | 3,137 |
Goodwill, Ending Balance | $388,837 |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill, impairment loss | $0 | $0 | ' |
Gross | 273,824 | ' | 253,700 |
Accumulated Amortization | -162,045 | ' | -149,791 |
Intangible assets, Net | 111,779 | ' | 103,909 |
Weighted-Average Useful Life (years) | '11 years | ' | '10 years |
Intellectual Property [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross | 30,177 | ' | 29,477 |
Accumulated Amortization | -24,741 | ' | -23,128 |
Intangible assets, Net | 5,436 | ' | 6,349 |
Weighted-Average Useful Life (years) | '9 years | ' | '9 years |
Customer Related Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross | 148,000 | ' | 141,833 |
Accumulated Amortization | -80,782 | ' | -74,311 |
Intangible assets, Net | 67,218 | ' | 67,522 |
Weighted-Average Useful Life (years) | '12 years | ' | '12 years |
Supplier Relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross | 240 | ' | 240 |
Accumulated Amortization | -114 | ' | -108 |
Intangible assets, Net | 126 | ' | 132 |
Weighted-Average Useful Life (years) | '20 years | ' | '20 years |
Technology-Based Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross | 90,979 | ' | 80,489 |
Accumulated Amortization | -54,729 | ' | -50,673 |
Intangible assets, Net | 36,250 | ' | 29,816 |
Weighted-Average Useful Life (years) | '9 years | ' | '9 years |
Non-competition Agreement [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross | 4,428 | ' | 1,661 |
Accumulated Amortization | -1,679 | ' | -1,571 |
Intangible assets, Net | $2,749 | ' | $90 |
Weighted-Average Useful Life (years) | '5 years | ' | '4 years |
Goodwill_and_Other_Intangible_7
Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $5,501 | $5,337 | $10,643 | $10,962 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
2014 | 22,493 | ' | 22,493 | ' |
2015 | 22,669 | ' | 22,669 | ' |
2016 | 18,071 | ' | 18,071 | ' |
2017 | 13,406 | ' | 13,406 | ' |
2018 | 11,190 | ' | 11,190 | ' |
2019 | $34,593 | ' | $34,593 | ' |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 281 | ' | 24 | ' |
Earnings Per Share, Basic [Abstract] | ' | ' | ' | ' |
Net income attributable to Morningstar, Inc. | ($9,769) | $31,121 | $16,607 | $60,739 |
Less: Distributed Earnings Available to Participating Securities | -1 | ' | -4 | ' |
Less: Undistributed earnings allocated to participating securities | 3 | ' | 0 | ' |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | -9,767 | ' | 16,603 | ' |
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 |
Basic net income per share attributable to Morningstar, Inc. | ($0.22) | $0.67 | $0.37 | $1.31 |
Earnings Per Share, Diluted [Abstract] | ' | ' | ' | ' |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | -9,767 | ' | 16,603 | ' |
Add: Undistributed Earnings Allocated To Participating Securities | -3 | ' | 0 | ' |
Less: Undistributed Earnings Reallocated to Participating Securities | 3 | ' | 0 | ' |
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | ($9,767) | ' | $16,603 | ' |
Weighted average common shares outstanding | 44,777 | 46,400 | 44,778 | 46,403 |
Net effect of dilutive stock options and restricted stock units | 0 | ' | 261 | ' |
Weighted average common shares outstanding for computing diluted income per share | 44,777 | 46,853 | 45,039 | 46,756 |
Diluted net income per share attributable to Morningstar, Inc. | ($0.22) | $0.66 | $0.37 | $1.30 |
Stock Options [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 160 | ' | 0 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 108 | ' | 18 | ' |
Performance Shares [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10 | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | ' | 0 | ' |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' |
External revenue | $189,385 | $175,428 | $370,550 | $344,284 |
U.S. [Member] | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' |
External revenue | 136,453 | 126,335 | 266,405 | 247,748 |
Non-U.S. [Member] | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' |
External revenue | 52,932 | 49,093 | 104,145 | 96,536 |
Investment Management [Member] | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' |
External revenue | 39,858 | 35,397 | 79,753 | 69,168 |
Investment Information [Member] | ' | ' | ' | ' |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ' | ' | ' | ' |
External revenue | $149,527 | $140,031 | $290,797 | $275,116 |
Segment_and_Geographical_Area_3
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | $189,385 | $175,428 | $370,550 | $344,284 | ' |
Long-lived assets | 109,900 | ' | 109,900 | ' | 104,986 |
United States | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 136,453 | 126,335 | 266,405 | 247,748 | ' |
Long-lived assets | 90,924 | ' | 90,924 | ' | 84,321 |
Total International | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 52,932 | 49,093 | 104,145 | 96,536 | ' |
Long-lived assets | 18,976 | ' | 18,976 | ' | 20,665 |
United Kingdom | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 15,544 | 14,015 | 30,882 | 27,168 | ' |
Long-lived assets | 6,720 | ' | 6,720 | ' | 6,873 |
Continental Europe | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 15,921 | 13,993 | 31,547 | 27,160 | ' |
Long-lived assets | 1,591 | ' | 1,591 | ' | 1,873 |
Australia | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 9,233 | 9,176 | 17,401 | 18,528 | ' |
Long-lived assets | 977 | ' | 977 | ' | 1,051 |
Canada | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 7,542 | 7,812 | 15,209 | 15,548 | ' |
Long-lived assets | 1,041 | ' | 1,041 | ' | 1,275 |
Asia | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 3,888 | 3,449 | ' | ' | ' |
Long-lived assets | 8,548 | ' | 8,548 | ' | 9,479 |
Asia excluding Japan [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | ' | ' | 7,597 | 6,873 | ' |
Other | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
External revenue | 804 | 648 | 1,509 | 1,259 | ' |
Long-lived assets | $99 | ' | $99 | ' | $114 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Available-for-sale | $16,015 | $91,461 |
Held-to-maturity | 20,422 | 31,214 |
Trading securities | 8,259 | 7,732 |
Total | $44,696 | $130,407 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | $14,844 | ' | $14,844 | ' | $90,560 |
Available-for-sale Securities, Unrealized Gain | 1,378 | ' | 1,378 | ' | 1,269 |
Available-for-sale Securities, Unrealized Loss | -207 | ' | -207 | ' | -368 |
Available-for-sale securities, Fair Value | 16,015 | ' | 16,015 | ' | 91,461 |
Held-to-maturity: | ' | ' | ' | ' | ' |
Held-to-maturity securities, Cost | 20,422 | ' | 20,422 | ' | 31,214 |
Held-to-maturity Securities, Unrecognized Gain | 0 | ' | 0 | ' | 0 |
Held-to-maturity Securities, Unrecognized Loss | 0 | ' | 0 | ' | 0 |
Held-to-maturity | 20,422 | ' | 20,422 | ' | 31,214 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Available-for-sale securities, realized gains | 417 | 662 | 578 | 2,226 | ' |
Available-for-sale securities, realized losses | -46 | -239 | -231 | -1,078 | ' |
Available-for-sale securities, realized gains (losses), net | 371 | 423 | 347 | 1,148 | ' |
Government Obligations [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 3,396 | ' | 3,396 | ' | 19,693 |
Available-for-sale Securities, Unrealized Gain | 2 | ' | 2 | ' | 8 |
Available-for-sale Securities, Unrealized Loss | 0 | ' | 0 | ' | -3 |
Available-for-sale securities, Fair Value | 3,398 | ' | 3,398 | ' | 19,698 |
Corporate Bonds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 0 | ' | 0 | ' | 49,913 |
Available-for-sale Securities, Unrealized Gain | 0 | ' | 0 | ' | 22 |
Available-for-sale Securities, Unrealized Loss | 0 | ' | 0 | ' | -124 |
Available-for-sale securities, Fair Value | 0 | ' | 0 | ' | 49,811 |
Foreign Government Debt Securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 0 | ' | 0 | ' | 505 |
Available-for-sale Securities, Unrealized Gain | 0 | ' | 0 | ' | 0 |
Available-for-sale Securities, Unrealized Loss | 0 | ' | 0 | ' | -2 |
Available-for-sale securities, Fair Value | 0 | ' | 0 | ' | 503 |
Commercial Paper [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 0 | ' | 0 | ' | 9,482 |
Available-for-sale Securities, Unrealized Gain | 0 | ' | 0 | ' | 7 |
Available-for-sale Securities, Unrealized Loss | 0 | ' | 0 | ' | 0 |
Available-for-sale securities, Fair Value | 0 | ' | 0 | ' | 9,489 |
Equity Securities and Exchange-traded Funds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 9,311 | ' | 9,311 | ' | 8,872 |
Available-for-sale Securities, Unrealized Gain | 1,100 | ' | 1,100 | ' | 1,011 |
Available-for-sale Securities, Unrealized Loss | -118 | ' | -118 | ' | -141 |
Available-for-sale securities, Fair Value | 10,293 | ' | 10,293 | ' | 9,742 |
Mutual Funds [Member] | ' | ' | ' | ' | ' |
Available-for-sale: | ' | ' | ' | ' | ' |
Available-for-sale securities, Cost | 2,137 | ' | 2,137 | ' | 2,095 |
Available-for-sale Securities, Unrealized Gain | 276 | ' | 276 | ' | 221 |
Available-for-sale Securities, Unrealized Loss | -89 | ' | -89 | ' | -98 |
Available-for-sale securities, Fair Value | $2,324 | ' | $2,324 | ' | $2,218 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Available-for-sale securities, Due in one year or less, Cost | $3,396,000 | $45,486,000 |
Available-for-sale securities, Due in one year or less, Fair Vlaue | 3,398,000 | 45,402,000 |
Available-for-sale securities, Due in one to two years, Cost | 0 | 34,107,000 |
Available-for-sale securities, Due in one to two years, Fair Value | 0 | 34,099,000 |
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost | 11,448,000 | 10,967,000 |
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value | 12,617,000 | 11,960,000 |
Available-for-sale securities, Cost | 14,844,000 | 90,560,000 |
Available-for-sale securities, Fair Value | 16,015,000 | 91,461,000 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ' | ' |
Held-to-maturity securities, Due in one year or less, Cost | 20,417,000 | 31,210,000 |
Held-to-maturity securities, Due within one year or less, Fair Value | 20,417,000 | 31,210,000 |
Held-to-maturity securities, Due in one to three years, Cost | 5,000 | 4,000 |
Held-to-maturity securities, Due in one to three years, Fair Value | 5,000 | 4,000 |
Held-to-maturity securities, Cost | 20,422,000 | 31,214,000 |
Held-to-maturity securities, Fair Value | 20,422,000 | 31,214,000 |
Certificate of deposit held as collateral against Australia office lease | $1,500,000 | ' |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses), net | ($224) | ($45) | ($155) | $273 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | $8,259 | $7,732 |
Cash equivalents, fair value | 2,691 | 925 |
Total investments, fair value | 26,965 | 100,118 |
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 | 3,398 | 19,698 |
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 | 0 | 49,811 |
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 | 0 | 9,489 |
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 | 10,293 | 9,742 |
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 | 2,324 | 2,218 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 8,259 | 7,732 |
Cash equivalents, fair value | 2,691 | 925 |
Total investments, fair value | 23,567 | 20,617 |
Fair Value, Inputs, Level 1 [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 10,293 | 9,742 |
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 | 2,324 | 2,218 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 3,398 | 79,501 |
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 | 3,398 | 19,698 |
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 | 0 | 49,811 |
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 | 0 | 9,489 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Trading securities, fair value | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Government Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities and Exchange-traded Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Foreign Government Debt Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 503 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 0 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | 0 | 503 |
Foreign Government Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, fair value | $0 | $0 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities (Details) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Other Equity Method Investments [Member] | Other Equity Method Investments [Member] | YCharts [Member] | YCharts [Member] | Morningstar Sweden AB [Member] | Inquiry Financial Europe AB [Member] | Inquiry Financial Europe AB [Member] | |
USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | USD ($) | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments | ' | ' | ' | $22,173,000 | ' | $21,782,000 | ' | $5,788,000 | $6,166,000 | ' | ' | ' | ' | ' |
Cost method investments | 2,326,000 | ' | 10,766,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investments in unconsolidated entities | 30,287,000 | ' | 38,714,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | ' | 34.00% | 34.00% | 34.00% | 34.00% | ' | ' | 22.00% | 22.00% | 100.00% | 34.00% | 34.00% |
Equity method investment, approximate market value | ' | ' | ' | 74,616,000 | 7,567,560,000 | 94,999,000 | 9,824,068,000 | ' | ' | ' | ' | ' | ' | ' |
Equity-method investments, other than temporary impairment | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost-method investments, other than temporary impairment | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares Available For Future Grants) (Details) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares available for future grants | 4,248 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $4,363 | $3,954 | $8,302 | $7,737 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected amortization period (months) | '35 years |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected amortization period (months) | '36 years |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected amortization period (months) | '10 years |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected amortization period (months) | '30 years |
Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected amortization period (months) | '11 years |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
RSUs outstanding, Beginning Balance, Unvested | 680,002 |
RSUs outstanding, Beginning Balance, Vested but Deferred | 16,682 |
RSUs outstanding, Beginning Balance, Total | 696,684 |
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU | $62.02 |
Granted, Unvested | 245,350 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Grants In Period | 0 |
Granted, Total | 245,350 |
Granted, Weighted Average Grant Date Valueper RSU | $73.11 |
Dividend equivalents, Unvested | 1,528 |
Dividend equivalents, Vestedd but Deferred | 76 |
Dividend equivalents, Total | 1,604 |
Dividend equivalents, Weighted Average Grant Date Valueper RSU | $57.50 |
Vested, Unvested | -231,500 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Vested In Period | 0 |
Vested, Total | -231,500 |
Vested, Weighted Average Grant Date Valueper RSU | $57.48 |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Issued in Period | 0 |
Issued, Vested but Deferred | -2,054 |
Issued, Total | -2,054 |
Issued, Weighted Average Grant Date Valueper RSU | $53.54 |
Forfeited, Unvested | -17,874 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Forfeited In Period | 0 |
Forfeited, Total | -17,874 |
Forfeited, Weighted Average Grant Date Valueper RSU | $57.22 |
RSUs outstanding, Ending Balance, Unvested | 677,506 |
RSUs outstanding, Ending Balance, Vested but Deferred | 14,704 |
RSUs outstanding, Ending Balance, Total | 692,210 |
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU | $67.37 |
StockBased_Compensation_Perfor
Stock-Based Compensation (Performance Shares Activity) (Details) (Performance Shares [Member], USD $) | 6 Months Ended | |
Jun. 30, 2014 | ||
Performance Shares [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Target performance share awards granted | 23,685 | |
Fair value (1) | $80.91 | [1] |
Number of shares that would be issued based on current performance levels | 23,685 | |
Unamortized expense, based on current performance levels | $1,716,000 | |
[1] | Represents the closing market price of Morningstar's stock on March 14, 2014, which is the last closing price prior to the grant date. |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Option Exercise Price Grouping [Member] | ' | ' |
Intrinsic Value of Options Exercised [Abstract] | ' | ' |
Intrinsic value of options exercised | $3,760 | $8,170 |
Options Granted At Discount [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Beginning Balance, Underlying Shares | 179,559 | ' |
Granted, Underlying Shares | 0 | ' |
Canceled, Underlying Shares | 0 | ' |
Exercised, Underlying Shares | -26,420 | ' |
Options outstanding, Ending Balance, Underlying Shares | 153,139 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' |
Options outstanding, Beginning Balance, Weighted Average Exercise Price | $21.47 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Canceled, Weighted Average Exercise Price | $0 | ' |
Exercised, Weighted Average Exercise Price | $21.67 | ' |
Options outstanding, Ending Balance, Weighted Average Exercise Price | $21.91 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' |
Options exercisable, Underlying Shares | 153,139 | ' |
Options exercisable, Weighted Average Exercise Price | $21.91 | ' |
Option Grants Excluding Options Granted at Discount [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Options outstanding, Beginning Balance, Underlying Shares | 253,972 | ' |
Granted, Underlying Shares | 0 | ' |
Canceled, Underlying Shares | 0 | ' |
Exercised, Underlying Shares | -47,898 | ' |
Options outstanding, Ending Balance, Underlying Shares | 206,074 | ' |
Options, Weighted Average Exercise Price [Abstract] | ' | ' |
Options outstanding, Beginning Balance, Weighted Average Exercise Price | $36.48 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Canceled, Weighted Average Exercise Price | $0 | ' |
Exercised, Weighted Average Exercise Price | $30.58 | ' |
Options outstanding, Ending Balance, Weighted Average Exercise Price | $38.27 | ' |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ' | ' |
Options exercisable, Underlying Shares | 189,604 | ' |
Options exercisable, Weighted Average Exercise Price | $36.58 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information on Options) (Details) (USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Closing stock price used to calculate intrinsic value | $71.81 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$21.61 - $26.96 |
Range of Exercise Prices, Lower Limit | $21.61 |
Range of Exercise Prices, Upper Limit | $26.68 |
Options Outstanding, Number of Options | 280,732 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '0 years 7 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $24.20 |
Options Outstanding, Aggregate Intrinsic Value | $13,364 |
Options Exercisable, Exercisable Shares | 280,732 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '0 years 7 months 13 days |
Options Exercisable, Weighted Average Exercise Price | $24.20 |
Options Exercisable, Aggregate Intrinsic Value | 13,364 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$39.68 - $49.92 |
Range of Exercise Prices, Lower Limit | $39.31 |
Range of Exercise Prices, Upper Limit | $49.38 |
Options Outstanding, Number of Options | 6,806 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '1 year 5 months 5 days |
Options Outstanding, Weighted Average Exercise Price | $48.18 |
Options Outstanding, Aggregate Intrinsic Value | 161 |
Options Exercisable, Exercisable Shares | 6,806 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 5 months 5 days |
Options Exercisable, Weighted Average Exercise Price | $48.18 |
Options Exercisable, Aggregate Intrinsic Value | 161 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$57.28 - $59.35 |
Range of Exercise Prices, Lower Limit | $57.28 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 71,675 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '7 years 0 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $57.46 |
Options Outstanding, Aggregate Intrinsic Value | 1,029 |
Options Exercisable, Exercisable Shares | 55,205 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '7 years 0 months 7 days |
Options Exercisable, Weighted Average Exercise Price | $57.39 |
Options Exercisable, Aggregate Intrinsic Value | 758 |
Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '$21.61 - $59.35 |
Range of Exercise Prices, Lower Limit | $21.61 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 359,213 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | '1 year 10 months 28 days |
Options Outstanding, Weighted Average Exercise Price | $31.29 |
Options Outstanding, Aggregate Intrinsic Value | 14,554 |
Options Exercisable, Exercisable Shares | 342,743 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | '1 year 8 months 1 day |
Options Exercisable, Weighted Average Exercise Price | $30.03 |
Options Exercisable, Aggregate Intrinsic Value | 14,283 |
Vested or Expected to Vest [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $21.61 |
Range of Exercise Prices, Upper Limit | $59.35 |
Vested or Expected to Vest, Range of Exercise Prices | '$21.61 - $59.35 |
Vested or Expected to Vest, Number of Options | 359,213 |
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years) | '1 year 10 months 28 days |
Vested or Expected to Vest, Weighted Average Exercise Price | $31.29 |
Vested or Expected to Vest, Aggregate Intrinsic Value | $14,554 |
StockBased_Compensation_Excess
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Excess tax benefits related to stock-based compensation | $1,340 | $2,255 | $1,913 | $3,842 |
StockBased_Compensation_Restri1
Stock-Based Compensation (Restricted Stock Activity Related to the Realpoint Acquisition) (Details) (USD $) | 3-May-10 | Jun. 30, 2014 |
Realpoint, LLC [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Business Acquisition, Cost of Acquired Entity, Shares of Restricted Stock | 199,174 | ' |
Share Based Compensation, Fair Value of Share Based Compensation Expensed Over Vesting Period | ' | $9,363,000 |
Income_Taxes_Income_Tax_Reconc
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ' | ' | ' | ' | ' |
Income before income taxes and equity in net income of unconsolidated entities | ($18,882) | $46,695 | $20,515 | $88,200 | ' |
Equity in net income of unconsolidated entities | 497 | 360 | 1,096 | 857 | ' |
Net (income) loss attributable to the noncontrolling interest | 5 | 21 | 35 | 64 | ' |
Total | -18,380 | 47,076 | 21,646 | 89,121 | ' |
Income tax expense | -8,611 | 15,955 | 5,039 | 28,382 | ' |
Effective income tax rate | 46.80% | 33.90% | 23.30% | 31.80% | ' |
Effective income tax rate reconciliation, change in percentage points compared with prior year period | ' | 12.9 | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ' | ' | ' | ' | ' |
Current liabilities | 4,490 | ' | 4,490 | ' | 6,211 |
Non-current liabilities | 6,712 | ' | 6,712 | ' | 6,012 |
Total liability for unrecognized tax benefits | $11,202 | ' | $11,202 | ' | $12,223 |
Income_Taxes_Income_Tax_Contin
Income Taxes (Income Tax Contingency) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Gross unrecognized tax benefits | $11,476 | $12,958 |
Gross unrecognized tax benefits which would affect income tax expense | 11,476 | 10,557 |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $9,961 | $9,262 |
Contingencies_Details
Contingencies (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Jul. 17, 2014 | Jun. 30, 2014 | Jul. 17, 2014 |
Business Logic Holding Corporation [Member] | Pending Litigation [Member] | Subsequent Event [Member] | |
Klass Matter [Member] | Business Logic Holding Corporation [Member] | ||
Loss Contingencies [Line Items] | ' | ' | ' |
Damages sought, value | ' | $14.50 | ' |
Gain (Loss) Related to Litigation Settlement | $61 | ' | $61 |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Shares repurchased, program life to date, shares | 7,557,807 |
Shares repurchased, program life to date, value | $486,504,000 |
Share repurchase program, authorized amount | $700,000,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Jul. 31, 2014 | Jul. 17, 2014 | Jul. 17, 2014 |
Revolving Credit Facility [Member] | Business Logic Holding Corporation [Member] | Business Logic Holding Corporation [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ' | ' | ' |
Litigation settlement, amount | ' | $61,000,000 | $61,000,000 |
Line of credit | 75,000,000 | ' | ' |
Maximum borrowing capacity | $75,000,000 | ' | ' |