Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 |
Document and Entity Information Abstract | |||
Entity Registrant Name | MORNINGSTAR, INC. | ||
Entity Central Index Key | 1289419 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 44,354,426 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1.40 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $760,071 | $698,266 | $658,288 |
Operating expense: | |||
Cost of revenue | 318,638 | 271,437 | 246,783 |
Sales and marketing | 111,088 | 103,614 | 108,884 |
General and administrative | 108,865 | 106,868 | 108,857 |
Depreciation and amortization | 54,886 | 45,693 | 43,096 |
Gain (Loss) Related to Litigation Settlement | 61,000 | 0 | 0 |
Total operating expense | 654,477 | 527,612 | 507,620 |
Operating income | 105,594 | 170,654 | 150,668 |
Non-operating income (expense): | |||
Interest income, net | 2,050 | 2,712 | 5,153 |
Gain (loss) on sale of investments reclassified from other comprehensive income | 1,018 | 4,207 | 538 |
Equity Method Investments Holding Gain | 5,168 | 3,635 | 0 |
Other income (expense), net | 68 | -3,198 | -2,734 |
Non-operating income (expense), net | 8,304 | 7,356 | 2,957 |
Income before income taxes and equity in net income of unconsolidated entities | 113,898 | 178,010 | 153,625 |
Income tax expense | 35,678 | 56,031 | 52,878 |
Equity in net income of unconsolidated entities | 39 | 1,428 | 2,027 |
Consolidated Net Income from Continuing Operations | 78,259 | 123,407 | 102,774 |
Gain on Sale of Discontinued Operation, Net of Tax | 0 | 0 | 5,188 |
Consolidated net income | 78,259 | 123,407 | 107,962 |
Net (income) loss attributable to the noncontrolling interest | 42 | 122 | 117 |
Net income attributable to Morningstar, Inc. | 78,301 | 123,529 | 108,079 |
Net Income from Continuing Operations, net of tax | 78,301 | 123,529 | 102,891 |
Net Income from Discontinued Operations, Net of Tax | $0 | $0 | $5,188 |
Net income per share attributable to Morningstar, Inc.: | |||
Basic (in dollars per share) | $1.75 | $2.68 | $2.23 |
Diluted (in dollars per share) | $1.74 | $2.66 | $2.20 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0 | $0 | $0.10 |
Income (Loss) from Continuing Operations, Per Diluted Share | $1.74 | $2.66 | $2.10 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0 | $0 | $0.11 |
Income (Loss) from Continuing Operations, Per Basic Share | $1.75 | $2.68 | $2.12 |
Dividends per common share: | |||
Dividends declared per common share | $0.70 | $0.55 | $0.43 |
Dividends paid per common share | $0.68 | $0.38 | $0.53 |
Weighted average shares outstanding: | |||
Basic (in shares) | 44,675 | 46,158 | 48,497 |
Diluted (in shares) | 44,901 | 46,491 | 49,148 |
Consolidated_Consolidated_Stat
Consolidated Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated net income | $78,259 | $123,407 | $107,962 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | -29,793 | -4,539 | 6,838 |
Unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) arising during period | 420 | 2,408 | 1,455 |
Reclasification of (gains) losses included in net income | -643 | -2,631 | -344 |
Other comprehensive income (loss) | -30,016 | -4,762 | 7,949 |
Comprehensive income | 48,243 | 118,645 | 115,911 |
Comprehensive (income) loss attributable to noncontrolling interest | 131 | 345 | 268 |
Comprehensive income attributable to Morningstar, Inc. | $48,374 | $118,990 | $116,179 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $185,150 | $168,160 |
Investments | 39,422 | 130,407 |
Accounts receivable, less allowance of $1,520 and $1,089, respectively | 136,735 | 114,131 |
Deferred tax asset, net | 9,000 | 3,892 |
Income tax receivable, net | 6,870 | 3,942 |
Other | 22,596 | 26,361 |
Total current assets | 399,773 | 446,893 |
Property, equipment, and capitalized software, net | 117,561 | 104,986 |
Investments in unconsolidated entities | 28,798 | 38,714 |
Goodwill | 370,054 | 326,450 |
Intangible assets, net | 95,905 | 103,909 |
Other assets | 7,190 | 9,716 |
Total assets | 1,019,281 | 1,030,668 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 34,268 | 42,131 |
Accrued compensation | 80,476 | 71,403 |
Deferred revenue | 145,979 | 149,225 |
Short-term Debt | 30,000 | 0 |
Other | 3,036 | 6,786 |
Total current liabilities | 293,759 | 269,545 |
Accrued compensation | 7,946 | 8,193 |
Deferred tax liability, net | 25,978 | 23,755 |
Deferred rent | 26,390 | 23,938 |
Other long-term liabilities | 10,810 | 13,947 |
Total liabilities | 364,883 | 339,378 |
Morningstar, Inc. shareholders' equity: | ||
Common stock, no par value, 200,000,000 shares authorized, of which 44,345,763 and 44,967,423 shares were outstanding as of December 31, 2014 and December 31, 2013, respectively | 4 | 5 |
Treasury stock at cost, 8,257,214 shares as of December 31, 2014 and 7,202,896 shares as of December 31, 2013 | -524,356 | -449,054 |
Additional paid-in capital | 561,075 | 539,507 |
Retained earnings | 641,527 | 594,626 |
Accumulated other comprehensive income (loss): | ||
Currency translation adjustment | -25,095 | 4,609 |
Unrealized gain (loss) on available-for-sale investments | 341 | 564 |
Total accumulated other comprehensive income | -24,754 | 5,173 |
Total Morningstar, Inc. shareholders' equity | 653,496 | 690,257 |
Noncontrolling interest | 902 | 1,033 |
Total equity | 654,398 | 691,290 |
Total liabilities and equity | $1,019,281 | $1,030,668 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $1,520 | $1,089 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 44,345,763 | 44,967,423 |
Treasury Stock, Shares | 8,257,214 | 7,202,896 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Equity (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $857,016 | $5 | ($46,701) | $491,432 | $409,022 | $1,612 | $1,646 |
Balance (in shares) at Dec. 31, 2011 | 50,083,940 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 107,962 | 108,079 | -117 | ||||
Other Comprehensive Income (loss) | |||||||
Unrealized gain on available-for-sale investments, net of income tax | 1,455 | 1,455 | 0 | ||||
Reclassification of adjustments for gains included in net income, net of income tax | -344 | -344 | 0 | ||||
Foreign currency translation adjustment, net | 6,838 | 6,989 | -151 | ||||
Other comprehensive income (loss) | 7,949 | 8,100 | -151 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 4,809 | 0 | 1,342 | 3,467 | |||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 715,888 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Stock-based compensation - restricted stock units | 13,451 | 13,451 | |||||
Stock-based compensation - restricted stock | 5,013 | 5,013 | |||||
Stock-based compensation - stock options | 441 | 441 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 7,210 | 7,210 | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 0 | 0 | |||||
Dividends declared - common shares outstanding | -20,420 | -20,420 | |||||
Dividends declared - restricted stock units | -56 | 271 | -327 | ||||
Common share repurchased | -256,480 | -256,480 | |||||
Common share repurchased (in shares) | -4,258,257 | ||||||
Balance at Dec. 31, 2012 | 726,895 | 5 | -301,839 | 521,285 | 496,354 | 9,712 | 1,378 |
Balance (in shares) at Dec. 31, 2012 | 46,541,571 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 123,407 | 123,529 | -122 | ||||
Other Comprehensive Income (loss) | |||||||
Unrealized gain on available-for-sale investments, net of income tax | 2,408 | 2,408 | 0 | ||||
Reclassification of adjustments for gains included in net income, net of income tax | -2,631 | -2,631 | 0 | ||||
Foreign currency translation adjustment, net | -4,539 | -4,316 | -223 | ||||
Other comprehensive income (loss) | -4,762 | -4,539 | -223 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | -1,275 | 1,633 | -2,908 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 437,263 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Stock-based compensation - restricted stock units | 14,163 | 14,163 | |||||
Stock-based compensation - restricted stock | 388 | 388 | |||||
Stock-based compensation - stock options | 492 | 492 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 5,898 | 5,898 | |||||
Dividends declared - common shares outstanding | -24,977 | -24,977 | |||||
Dividends declared - restricted stock units | -91 | 189 | -280 | ||||
Common share repurchased | -148,848 | -148,848 | |||||
Common share repurchased (in shares) | -2,011,411 | ||||||
Balance at Dec. 31, 2013 | 691,290 | 5 | -449,054 | 539,507 | 594,626 | 5,173 | 1,033 |
Balance (in shares) at Dec. 31, 2013 | 44,967,423 | 44,967,423 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 78,259 | 78,301 | -42 | ||||
Other Comprehensive Income (loss) | |||||||
Unrealized gain on available-for-sale investments, net of income tax | 420 | 420 | 0 | ||||
Reclassification of adjustments for gains included in net income, net of income tax | -643 | -643 | 0 | ||||
Foreign currency translation adjustment, net | -29,793 | -29,704 | -89 | ||||
Other comprehensive income (loss) | -30,016 | -29,927 | -89 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 805 | 1,429 | -624 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 452,344 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Stock-based compensation - restricted stock units | 16,307 | 16,307 | |||||
Stock-based compensation - restricted stock | 388 | 388 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Other Long-term Incentive Plans, Requisite Service Period Recognition | 505 | 505 | |||||
Stock-based compensation - stock options | 424 | 424 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 4,449 | 4,449 | |||||
Dividends declared - common shares outstanding | -31,211 | -31,211 | |||||
Dividends declared - restricted stock units | -70 | 119 | -189 | ||||
Common share repurchased | -76,732 | -1 | -76,731 | ||||
Common share repurchased (in shares) | -1,074,004 | ||||||
Balance at Dec. 31, 2014 | $654,398 | $4 | ($524,356) | $561,075 | $641,527 | ($24,754) | $902 |
Balance (in shares) at Dec. 31, 2014 | 44,345,763 | 44,345,763 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $236 | $1,469 | $614 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $375 | $1,576 | $194 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Consolidated net income | $78,259 | $123,407 | $107,962 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | |||
Depreciation and amortization | 54,886 | 45,693 | 43,096 |
Deferred income taxes | 3,028 | -1,133 | 6,316 |
Stock-based compensation expense | 17,624 | 15,043 | 18,905 |
Provision for bad debt | 526 | 825 | 1,016 |
Equity in net income of unconsolidated entities | -39 | -1,428 | -2,027 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | -4,449 | -5,898 | -7,210 |
Gain on sale of discontinued operations, Net of Tax | 0 | 0 | -5,188 |
Loss on sale of cost-method investment | -353 | 0 | 2,034 |
Holding gain upon acquisition of additional ownership of equity method investment | -5,168 | -3,635 | 0 |
Other, net | -715 | -1,830 | 142 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | -25,916 | -1,593 | -17,124 |
Other assets | -5,336 | -2,302 | 223 |
Accounts payable and accrued liabilities | -1,960 | -1,244 | 1,173 |
Accrued compensation | 19,484 | 3,153 | -8,861 |
Income taxesbcurrent | 2,274 | 16,794 | -1,205 |
Deferred revenue | -1,690 | 3,658 | 7,769 |
Deferred rent | 3,027 | -1,484 | 407 |
Other liabilities | -1,261 | -1,368 | -1,432 |
Cash provided by operating activities | 132,221 | 186,658 | 145,996 |
Investing activities | |||
Purchases of investments | -20,353 | -140,051 | -145,491 |
Proceeds from maturities and sales of investments | 111,551 | 171,243 | 260,317 |
Capital expenditures | -58,320 | -33,583 | -30,039 |
Acquisitions, net of cash acquired | -64,447 | -11,079 | 0 |
Proceeds from sale of a business, net | 0 | 957 | 5,734 |
Purchases of cost and equity method investments | 0 | -2,751 | -10,304 |
Other, net | 353 | 403 | -25 |
Cash used for investing activities | -31,216 | -14,861 | 80,192 |
Financing activities | |||
Common shares repurchased | -76,732 | -153,514 | -251,813 |
Dividends paid | -30,498 | -17,425 | -25,487 |
Proceeds from Short-term Debt | 30,000 | 0 | 0 |
Proceeds from stock-option exercises, net | 6,606 | 4,532 | 9,101 |
Taxes Withheld For Restricted Stock Units | -5,801 | -5,807 | -4,292 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 4,449 | 5,898 | 7,210 |
Other, net | 297 | -56 | 105 |
Cash provided by (used for) financing activities | -71,679 | -166,372 | -265,176 |
Effect of exchange rate changes on cash and cash equivalents | -12,336 | -1,154 | 2,440 |
Net increase (decrease) in cash and cash equivalents | 16,990 | 4,271 | -36,548 |
Cash and cash equivalents - beginning of period | 168,160 | 163,889 | 200,437 |
Cash and cash equivalents - end of period | 185,150 | 168,160 | 163,889 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 30,392 | 40,364 | 47,355 |
Supplemental information of non-cash investing and financing activities: | |||
Unrealized gain (loss) on available-for-sale investments | -362 | -328 | 1,723 |
Equipment obtained under long-term financing arrangement | $0 | $4,860 | $4,551 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business |
Morningstar, Inc. and its subsidiaries (Morningstar, we, our), provides independent investment research for investors around the world. We offer an extensive line of products and services for financial advisors, asset managers, retirement plan providers and sponsors, and individual investors. We have operations in 27 countries. |
Correction_Notes
Correction (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Corrections | 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||||||
The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following: | |||||||||||||
ASC | Accounting Standards Codification | ||||||||||||
ASU | Accounting Standards Update | ||||||||||||
EITF | Emerging Issues Task Force | ||||||||||||
FASB | Financial Accounting Standards Board | ||||||||||||
SEC | Securities and Exchange Commission | ||||||||||||
Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions. | |||||||||||||
We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation. A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. | |||||||||||||
We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. | |||||||||||||
As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. | |||||||||||||
Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). We show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement along with net income. | |||||||||||||
Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. | |||||||||||||
Reclassifications. Certain amounts reported in 2012 have been reclassified to conform to the 2013 presentation. | |||||||||||||
Separately, as a result of our move to a more centralized structure in 2013 (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. These changes added approximately $14 million of compensation expense to cost of revenue in 2014 versus 2013 as well as in 2013 versus 2012, and reduced the compensation expense included in the sales and marketing and general and administrative categories by approximately $8 million and $6 million in each of these periods, respectively. These changes did not affect total operating expense or operating income for any of the periods presented. | |||||||||||||
Cash and Cash Equivalents. Cash and cash equivalents consists of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices. | |||||||||||||
Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. | |||||||||||||
• | Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. | ||||||||||||
• | Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
• | Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of fixed-income securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. | |||||||||||||
Effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and IFRS. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements. | |||||||||||||
FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs: | |||||||||||||
• | Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. | ||||||||||||
• | Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||
• | Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||
We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 7. | |||||||||||||
Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2014, 2013, and 2012, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. | |||||||||||||
Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. | |||||||||||||
Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three to five years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance. | |||||||||||||
The table below summarizes our capitalized software development costs for the past three years: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Capitalized software development costs | $ | 18,804 | $ | 8,142 | $ | 8,527 | |||||||
Business Combinations. Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their full fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations, on the acquisition date. | |||||||||||||
As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. | |||||||||||||
Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2014, 2013, and 2012. We did not record any significant impairment losses in 2014, 2013, and 2012. | |||||||||||||
Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2014, 2013, or 2012. | |||||||||||||
Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition, ASC 605-25, Revenue Recognition: Multiple Element Arrangements, and ASC 985-605, Software: Revenue Recognition. | |||||||||||||
We recognize revenue when all of the following conditions are met: | |||||||||||||
• | There is persuasive evidence of an arrangement, as evidenced by a signed contract; | ||||||||||||
• | Delivery of our products and services has taken place. If arrangements include an acceptance provision, we generally begin recognizing revenue when we receive customer acceptance; | ||||||||||||
• | The amount of fees to be paid by the customer is fixed or determinable; and | ||||||||||||
• | The collectibility of the fees is reasonably assured. | ||||||||||||
We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Research, Premium Membership subscriptions for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for commercial mortgage- backed securities (CMBS), we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance. | |||||||||||||
We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. | |||||||||||||
Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. | |||||||||||||
Our Retirement Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Retirement Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Retirement Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. | |||||||||||||
Some of our revenue arrangements combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. | |||||||||||||
We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. | |||||||||||||
Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided, which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. | |||||||||||||
Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Advertising expense | $ | 7,497 | $ | 6,939 | $ | 6,306 | |||||||
Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation. Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, performance share awards, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||
We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. | |||||||||||||
Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, Morningstar's full-time employees are generally eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25, Compensated Absences. We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave and include this liability in Accrued Compensation in our Consolidated Balance Sheet. | |||||||||||||
Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, Income Taxes. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. | |||||||||||||
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. | |||||||||||||
Income per Share. We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share. The difference between weighted average shares outstanding and diluted shares outstanding mainly reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two Class Method. Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. | |||||||||||||
ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. | |||||||||||||
Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. |
Credit_Arrangements_Notes
Credit Arrangements (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements |
In July 2014, we entered into a one year, $75.0 million, single-bank revolving credit facility. We drew on the credit facility during 2014 and had an outstanding principal balance of $30.0 million at an interest rate of LIBOR plus 100 basis points as of December 31, 2014, leaving borrowing availability of $45.0 million. |
Income_Per_Share
Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Income Per Share | Income Per Share | ||||||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | |||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 78,301 | $ | 123,529 | $ | 108,079 | |||||||
Less: Distributed earnings available to participating securities | (7 | ) | (10 | ) | (41 | ) | |||||||
Less: Undistributed earnings available to participating securities | (9 | ) | (36 | ) | (47 | ) | |||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,991 | |||||||
Weighted average common shares outstanding | 44,675 | 46,158 | 48,497 | ||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 1.75 | $ | 2.68 | $ | 2.12 | |||||||
Discontinued operations | — | — | 0.11 | ||||||||||
Total | $ | 1.75 | $ | 2.68 | $ | 2.23 | |||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,991 | |||||||
Add: Undistributed earnings allocated to participating securities | 9 | 36 | 47 | ||||||||||
Less: Undistributed earnings reallocated to participating securities | (9 | ) | (36 | ) | (46 | ) | |||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,992 | |||||||
Weighted average common shares outstanding | 44,675 | 46,158 | 48,497 | ||||||||||
Net effect of dilutive stock options and restricted stock units | 226 | 333 | 651 | ||||||||||
Weighted average common shares outstanding for computing diluted income per share | 44,901 | 46,491 | 49,148 | ||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||
Continuing operations | $ | 1.74 | $ | 2.66 | $ | 2.1 | |||||||
Discontinued operations | — | — | 0.1 | ||||||||||
Total | $ | 1.74 | $ | 2.66 | $ | 2.2 | |||||||
The following table shows the number of weighted average stock options, restricted stock units, and performance share awards excluded from our calculation of diluted earnings per share from both continuing operations and net earnings because their inclusion would have been anti-dilutive: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Weighted average stock options | — | — | 83 | ||||||||||
Weighted average restricted stock units | 47 | 17 | 7 | ||||||||||
Weighted average performance share awards | 6 | — | — | ||||||||||
Total | 53 | 17 | 90 | ||||||||||
Stock options and restricted stock could be included in the calculation in the future. |
Segment_and_Geographical_Area_
Segment and Geographical Area Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment and Geographical Area Information | Segment, Enterprise-Wide, and Geographical Area Information | ||||||||||||
Segment Information | |||||||||||||
We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |||||||||||||
Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. | |||||||||||||
The accounting policies for our reportable segment are the same as those described in Note 3. 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 | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Investment information | $ | 597,046 | $ | 555,642 | $ | 526,147 | |||||||
Investment management | 163,025 | 142,624 | 132,141 | ||||||||||
Consolidated revenue | $ | 760,071 | $ | 698,266 | $ | 658,288 | |||||||
Geographical Area Information | |||||||||||||
The tables below summarize our revenue and long-lived assets by geographical area: | |||||||||||||
External revenue by geographical area | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 550,740 | $ | 500,730 | $ | 466,947 | |||||||
United Kingdom | 61,844 | 56,298 | 56,794 | ||||||||||
Continental Europe | 62,677 | 57,580 | 49,844 | ||||||||||
Australia | 34,977 | 35,289 | 38,229 | ||||||||||
Canada | 30,790 | 31,845 | 30,664 | ||||||||||
Asia | 15,830 | 13,860 | 13,765 | ||||||||||
Other | 3,213 | 2,664 | 2,045 | ||||||||||
Total International | 209,331 | 197,536 | 191,341 | ||||||||||
Consolidated revenue | $ | 760,071 | $ | 698,266 | $ | 658,288 | |||||||
Long-lived assets by geographical area | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
United States | $ | 98,135 | $ | 84,321 | |||||||||
United Kingdom | 8,014 | 6,873 | |||||||||||
Continental Europe | 2,102 | 1,873 | |||||||||||
Australia | 794 | 1,051 | |||||||||||
Canada | 938 | 1,275 | |||||||||||
Asia | 7,491 | 9,479 | |||||||||||
Other | 87 | 114 | |||||||||||
Total International | 19,426 | 20,665 | |||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 117,561 | $ | 104,986 | |||||||||
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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 into three categories: available-for-sale, held-to-maturity, and trading. Our investment portfolio is primarily invested in proprietary Morningstar portfolios, exchange-traded funds that seek to track the performance of certain Morningstar proprietary indexes, and various mutual funds. We classify our investment portfolio as shown below: | |||||||||||||||||||||||||||||||||
As of December 31 | |||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 13,187 | $ | 91,461 | |||||||||||||||||||||||||||||
Held-to-maturity | 17,930 | 31,214 | |||||||||||||||||||||||||||||||
Trading securities | 8,305 | 7,732 | |||||||||||||||||||||||||||||||
Total | $ | 39,422 | $ | 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 December 31, 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 | $ | — | $ | — | $ | — | $ | — | $ | 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 | 11,428 | 796 | (289 | ) | 11,935 | 8,872 | 1,011 | (141 | ) | 9,742 | |||||||||||||||||||||||
Mutual funds | 1,220 | 132 | (100 | ) | 1,252 | 2,095 | 221 | (98 | ) | 2,218 | |||||||||||||||||||||||
Total | $ | 12,648 | $ | 928 | $ | (389 | ) | $ | 13,187 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 17,930 | $ | — | $ | — | $ | 17,930 | $ | 31,214 | $ | — | $ | — | $ | 31,214 | |||||||||||||||||
As of December 31, 2014 and December 31, 2013, investments with unrealized losses for greater than a 12-month period were not material to the Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. | |||||||||||||||||||||||||||||||||
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 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 December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | 45,486 | $ | 45,402 | |||||||||||||||||||||||||
Due in one to two years | — | — | 34,107 | 34,099 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 12,648 | 13,187 | 10,967 | 11,960 | |||||||||||||||||||||||||||||
Total | $ | 12,648 | $ | 13,187 | $ | 90,560 | $ | 91,461 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 17,929 | $ | 17,929 | $ | 31,210 | $ | 31,210 | |||||||||||||||||||||||||
Due in one to three years | 1 | 1 | 4 | 4 | |||||||||||||||||||||||||||||
Total | $ | 17,930 | $ | 17,930 | $ | 31,214 | $ | 31,214 | |||||||||||||||||||||||||
As of December 31, 2014 and December 31, 2013, held-to-maturity investments included a $1.5 million certificate of deposit, held primarily as collateral against bank guarantees for our office leases, primarily in Australia. | |||||||||||||||||||||||||||||||||
The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Realized gains | $ | 1,484 | $ | 5,550 | $ | 1,671 | |||||||||||||||||||||||||||
Realized losses | (466 | ) | (1,343 | ) | (1,133 | ) | |||||||||||||||||||||||||||
Realized gains, net | $ | 1,018 | $ | 4,207 | $ | 538 | |||||||||||||||||||||||||||
We determine realized gains and losses using the specific identification method. | |||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains (losses) on trading securities as recorded in our Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | (188 | ) | $ | 827 | $ | 269 | ||||||||||||||||||||||||||
The table below shows the fair value of our assets subject to fair value measurements 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: | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||||||||||
Government obligations | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||||||||||||||||||
Foreign obligations | — | — | — | — | |||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 11,935 | 11,935 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 1,252 | 1,252 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8,305 | 8,305 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 512 | 512 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22,004 | $ | 22,004 | $ | — | $ | — | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||
There were no transfers between levels one and two during the year ended December 31, 2014. | |||||||||||||||||||||||||||||||||
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 December 31, 2014 and December 31, 2013. |
Acquisitions_Goodwill_and_Othe
Acquisitions, Goodwill, and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets | Acquisitions, Goodwill, and Other Intangible Assets | ||||||||||||||||||||||||||||
2014 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 classified as "Holding gain upon acquisition of additional ownership of equity-method investments" in our Consolidated Statement of Income for the year ended December 31, 2014. | |||||||||||||||||||||||||||||
The purchase price valuation will be finalized upon the completion of the fair value analysis of the acquired assets and liabilities. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities to finalize the purchase price allocation. The primary area that is not yet finalized relates to 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 completion 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 | 8,646 | ||||||||||||||||||||||||||||
Intangible assets | 9,460 | ||||||||||||||||||||||||||||
Goodwill | 39,166 | ||||||||||||||||||||||||||||
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 assets. | |||||||||||||||||||||||||||||
We recognized a preliminary deferred tax asset of $8,646,000 mainly because of net operating losses of HelloWallet which will become available to Morningstar. | |||||||||||||||||||||||||||||
Preliminary goodwill of $39,166,000 represents the premium over the fair value of the net tangible and intangible assets acquired. 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 purchase price valuation will be finalized upon the completion of the fair value analysis of the acquired assets and liabilities. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities to finalize the purchase price allocation. The primary area that is not yet finalized relates to 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, all of which are preliminary pending completion of the final valuation: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 287 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 152 | ||||||||||||||||||||||||||||
Deferred tax asset | 3,987 | ||||||||||||||||||||||||||||
Other current and non-current assets | 257 | ||||||||||||||||||||||||||||
Intangible assets | 8,681 | ||||||||||||||||||||||||||||
Goodwill | 18,476 | ||||||||||||||||||||||||||||
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 $3,987,000 mainly because of net operating losses of ByAllAccounts which will become available to Morningstar. | |||||||||||||||||||||||||||||
Preliminary goodwill value of $18,476,000 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. | |||||||||||||||||||||||||||||
2013 Acquisitions | |||||||||||||||||||||||||||||
Increased Ownership Interest in Morningstar Sweden AB | |||||||||||||||||||||||||||||
In May 2013, we acquired an additional 76% interest in Morningstar Sweden AB (Morningstar Sweden), increasing our ownership to 100% from 24%. Morningstar’s main offerings in Sweden include Morningstar Direct, Morningstar Data, Morningstar Enterprise Components (formerly Integrated Web Tools), and Morningstar.se, a website for individual investors. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on May 2, 2013. | |||||||||||||||||||||||||||||
Morningstar Sweden's total estimated fair value of $18,513,000 included $14,554,000 in cash paid to acquire the remaining 76% interest in Morningstar Sweden and $3,959,000 related to the 24% of Morningstar Sweden we previously held. We determined the fair value of the previously held 24% investment independent of the acquired controlling interest by applying a minority interest discount based on analysis of comparable transactions. Accordingly, we recorded a non-cash holding gain of $3,635,000, which is classified as "Holding gain upon acquisition of additional ownership of equity-method investments" in our Consolidated Statement of Income for the year ended December 31, 2013. | |||||||||||||||||||||||||||||
The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,472 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 519 | ||||||||||||||||||||||||||||
Other non-current assets | 244 | ||||||||||||||||||||||||||||
Intangible assets | 9,700 | ||||||||||||||||||||||||||||
Goodwill | 8,911 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (870 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
The allocation included acquired intangible assets, as follows: | |||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Total intangible assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
We recognized a deferred tax liability of $2,272,000 mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. | |||||||||||||||||||||||||||||
Goodwill of $8,911,000 represents the premium over the fair value of the net tangible and intangible assets acquired with this acquisition. We paid this premium for a number of reasons, including the opportunity to offer Morningstar's full suite of products and services to investors in Sweden and further leverage Morningstar's global reach, investment databases, and technology expertise. | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from January 1, 2013 to December 31, 2014: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 8,911 | ||||||||||||||||||||||||||||
Other, primarily foreign currency translation | (3,306 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
Acquisition of HelloWallet and ByAllAccounts | 57,642 | ||||||||||||||||||||||||||||
Foreign currency translation | (14,038 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 370,054 | |||||||||||||||||||||||||||
We did not record any significant impairment losses in 2014, 2013, or 2012, as the estimated fair values of our reporting units exceeded their carrying values. We perform our annual impairment testing during the fourth quarter of each year. | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 29,026 | $ | (25,033 | ) | $ | 3,993 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | |||||||||||||
Customer-related assets | 141,497 | (83,582 | ) | 57,915 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (120 | ) | 120 | 20 | 240 | (108 | ) | 132 | 20 | |||||||||||||||||||
Technology-based assets | 88,816 | (57,395 | ) | 31,421 | 8 | 80,489 | (50,673 | ) | 29,816 | 9 | |||||||||||||||||||
Non-competition agreement | 4,339 | (1,883 | ) | 2,456 | 5 | 1,661 | (1,571 | ) | 90 | 4 | |||||||||||||||||||
Total intangible assets | $ | 263,918 | $ | (168,013 | ) | $ | 95,905 | 10 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 | |||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Amortization expense | $ | 22,264 | $ | 21,454 | $ | 23,944 | |||||||||||||||||||||||
We did not record any significant impairment losses involving intangible assets in 2014, 2013, or 2012. | |||||||||||||||||||||||||||||
We amortize intangible assets using the straight-line method over their expected economic useful lives. | |||||||||||||||||||||||||||||
Based on acquisitions and divestitures completed through December 31, 2014, we expect intangible amortization expense for 2015 and subsequent years to be as follows: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2015 | $ | 21,920 | |||||||||||||||||||||||||||
2016 | 17,394 | ||||||||||||||||||||||||||||
2017 | 12,941 | ||||||||||||||||||||||||||||
2018 | 10,790 | ||||||||||||||||||||||||||||
2019 | 8,046 | ||||||||||||||||||||||||||||
Thereafter | 24,814 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations | ||||||||||||
In October 2012, we sold Morningstar Investor Relations Services to UK-based Investis, a leading specialist in digital corporate communications for public companies. In October 2012, we sold the Morningstar Australasia trade publishing assets to Sterling Publishing Pty Ltd. We have not reclassified the operating results of these businesses to discontinued operations, nor have we reclassified the related assets and liabilities to held for disposition, because these amounts are not significant to our consolidated financial statements. | |||||||||||||
The following table summarizes the amounts included in our Consolidated Statements of Income for discontinued operations for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Gain on sales of businesses | $ | — | $ | — | $ | 6,193 | |||||||
Income tax expense | — | — | 1,005 | ||||||||||
Earnings from discontinued operations, net of tax | $ | — | $ | — | $ | 5,188 | |||||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 12 Months Ended | ||||||||
Dec. 31, 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 December 31 | |||||||||
$0 | 2014 | 2013 | |||||||
Investment in MJKK | $ | 23,014 | $ | 21,782 | |||||
Other equity method investments | 3,475 | 6,166 | |||||||
Investments accounted for using the cost method | 2,309 | 10,766 | |||||||
Total investments in unconsolidated entities | $ | 28,798 | $ | 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 December 31 | |||||||||
2014 | 2013 | ||||||||
Morningstar’s approximate ownership of MJKK | 34 | % | 34 | % | |||||
Approximate market value of Morningstar’s ownership in MJKK: | |||||||||
Japanese yen (¥000) | ¥ | 7,347,413 | ¥ | 9,824,068 | |||||
Equivalent U.S. dollars ($000) | $ | 61,277 | $ | 94,999 | |||||
Other Equity Method Investments. As of December 31, 2014 and 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 December 31, 2014 and 2013. YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of December 31, 2014 and 2013. | |||||||||
Cost Method Investments. As of December 31, 2014, 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 8 for additional information concerning our acquisition of HelloWallet. | |||||||||
During 2014, we recorded an impairment loss of $1.7 million on our investment in an unconsolidated entity. We did not record any impairment losses on these investments in 2013. | |||||||||
Property_Equipment_and_Capital
Property, Equipment, and Capitalized Software | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Equipment, and Capitalized Software | Property, Equipment, and Capitalized Software | ||||||||||||
The following table shows our property, equipment, and capitalized software summarized by major category: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Computer equipment | $ | 53,420 | $ | 47,830 | |||||||||
Capitalized software | 87,764 | 50,360 | |||||||||||
Furniture and fixtures | 23,172 | 23,259 | |||||||||||
Leasehold improvements | 54,320 | 52,512 | |||||||||||
Telephone equipment | 1,948 | 2,032 | |||||||||||
Construction in progress | 29,870 | 35,159 | |||||||||||
Property, equipment, and capitalized software, at cost | 250,494 | 211,152 | |||||||||||
Less accumulated depreciation | (132,933 | ) | (106,166 | ) | |||||||||
Property, equipment, and capitalized software, net | $ | 117,561 | $ | 104,986 | |||||||||
The following table shows the amount of capitalized software development costs included in construction in progress: | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Capitalized software development costs not yet placed into service | $ | 18,070 | $ | 11,345 | |||||||||
The following table summarizes our depreciation expense: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 32,622 | $ | 24,239 | $ | 19,152 | |||||||
Operating_Leases
Operating Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases, Operating [Abstract] | |||||||||||||
Operating Leases | Operating Leases | ||||||||||||
The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: | |||||||||||||
Minimum Future Rental Commitments | $0 | ||||||||||||
2015 | $ | 19,395 | |||||||||||
2016 | 20,299 | ||||||||||||
2017 | 19,270 | ||||||||||||
2018 | 16,916 | ||||||||||||
2019 | 12,632 | ||||||||||||
Thereafter | 48,203 | ||||||||||||
Total | $ | 136,715 | |||||||||||
The following table summarizes our rent expense including taxes, insurance, and related operating costs: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 24,460 | $ | 22,169 | $ | 20,736 | |||||||
Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Deferred rent | $ | 29,124 | $ | 26,157 | |||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 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, restricted stock units, restricted stock, performance share awards, and stock options. We granted restricted stock units, restricted stock, and stock options under the 2004 Plan. | |||||||||||||||||||||||||||
All of our employees and our non-employee directors are eligible for awards under the 2011 Plan. | |||||||||||||||||||||||||||
Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan. | |||||||||||||||||||||||||||
The following table summarizes the number of shares available for future grants under our 2011 Plan: | |||||||||||||||||||||||||||
As of December 31 | |||||||||||||||||||||||||||
0 | 2014 | ||||||||||||||||||||||||||
Shares available for future grants | 4,233 | ||||||||||||||||||||||||||
Accounting for Stock-Based Compensation Awards | |||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: | |||||||||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Restricted stock units | $ | 16,307 | $ | 14,163 | $ | 13,451 | |||||||||||||||||||||
Restricted stock | 388 | 388 | 5,013 | ||||||||||||||||||||||||
Performance share awards | 505 | — | — | ||||||||||||||||||||||||
Stock options | 424 | 492 | 441 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 17,624 | $ | 15,043 | $ | 18,905 | |||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 5,055 | $ | 4,027 | $ | 3,686 | |||||||||||||||||||||
The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years: | |||||||||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cost of revenue | $ | 7,774 | $ | 6,870 | $ | 6,416 | |||||||||||||||||||||
Sales and marketing | 2,170 | 1,975 | 1,937 | ||||||||||||||||||||||||
General and administrative | 7,680 | 6,198 | 10,552 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 17,624 | $ | 15,043 | $ | 18,905 | |||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 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 | $ | 33,064 | 32 | ||||||||||||||||||||||||
Restricted stock | 129 | 4 | |||||||||||||||||||||||||
Performance share awards | 453 | 24 | |||||||||||||||||||||||||
Stock options | 162 | 6 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33,808 | 32 | ||||||||||||||||||||||||
In accordance with FASB ASC 718, Compensation—Stock Compensation, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. 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 granted to employees vest ratably over a four-year period. Restricted stock units granted to non-employee directors vest ratably over a three-year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit. | |||||||||||||||||||||||||||
We measure the fair value of our restricted stock units on the date of grant based on the closing market price of the underlying common stock on the day prior to grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the past three years: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs Outstanding - January 1, 2012 | 741,043 | 20,076 | 761,119 | $ | 50.66 | ||||||||||||||||||||||
Granted | 341,282 | — | 341,282 | 56.26 | |||||||||||||||||||||||
Dividend equivalents | 6,405 | 130 | 6,535 | 52.02 | |||||||||||||||||||||||
Vested | (270,695 | ) | — | (270,695 | ) | 50.12 | |||||||||||||||||||||
Vested but deferred | (892 | ) | 892 | — | — | ||||||||||||||||||||||
Issued | — | (2,316 | ) | (2,316 | ) | 73.28 | |||||||||||||||||||||
Forfeited | (89,998 | ) | — | (89,998 | ) | 50.84 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2012 | 727,145 | 18,782 | 745,927 | 53.37 | |||||||||||||||||||||||
Granted | 287,848 | — | 287,848 | 72.04 | |||||||||||||||||||||||
Dividend equivalents | 2,773 | 157 | 2,930 | 57.39 | |||||||||||||||||||||||
Vested | (278,549 | ) | — | (278,549 | ) | 50.41 | |||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (59,215 | ) | — | (59,215 | ) | 57.58 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2013 | 680,002 | 16,682 | 696,684 | 62.02 | |||||||||||||||||||||||
Granted | 279,524 | — | 279,524 | 72.68 | |||||||||||||||||||||||
Dividend equivalents | 2,621 | 150 | 2,771 | 55.7 | |||||||||||||||||||||||
Vested | (268,115 | ) | — | (268,115 | ) | 58.91 | |||||||||||||||||||||
Issued | — | (2,054 | ) | (2,054 | ) | 53.54 | |||||||||||||||||||||
Forfeited | (38,098 | ) | — | (38,098 | ) | 65.21 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2014 | 655,934 | 14,778 | 670,712 | 67.51 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
In conjunction with the 2010 Realpoint acquisition, we issued shares of restricted stock to the selling employee-shareholders which vest 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. | |||||||||||||||||||||||||||
Performance Share Awards | |||||||||||||||||||||||||||
In 2014, we granted executive officers, other than Joe Mansueto, 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 we attain pre-established target performance goals. The number of performance shares that actually vest may be more or less than the specified number of performance shares based on our performance relative to the target performance goals over a three-year period. | |||||||||||||||||||||||||||
We base the grant date fair value for these awards 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 December 31, 2014 regarding our target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted during 2014 is as follows: | |||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||
Target performance share awards granted | 23,685 | ||||||||||||||||||||||||||
Fair value per award (1) | $ | 80.91 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 11,843 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels | $ | 453,000 | |||||||||||||||||||||||||
(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 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. | |||||||||||||||||||||||||||
In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: | |||||||||||||||||||||||||||
Assumptions for Black-Scholes Option Pricing Model | |||||||||||||||||||||||||||
Expected life (years): | 7.4 | ||||||||||||||||||||||||||
Volatility factor: | 35.1 | % | |||||||||||||||||||||||||
Dividend yield: | 0.35 | % | |||||||||||||||||||||||||
Interest rate: | 2.87 | % | |||||||||||||||||||||||||
The following tables summarize stock option activity in the past three years for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (150 | ) | 22.24 | (250 | ) | 21.48 | (650 | ) | 14.7 | ||||||||||||||||||
Exercised | (179,409 | ) | 22.08 | (102,886 | ) | 21.09 | (115,514 | ) | 20.19 | ||||||||||||||||||
Options outstanding—end of year | — | — | 179,559 | 21.47 | 282,695 | 20.55 | |||||||||||||||||||||
Options exercisable—end of year | — | $ | — | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 253,972 | $ | 36.48 | 391,784 | $ | 28.98 | 818,552 | $ | 22.76 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (526 | ) | 38.61 | (1,352 | ) | 16.19 | (22,330 | ) | 39.75 | ||||||||||||||||||
Exercised | (83,636 | ) | 30.82 | (136,460 | ) | 16.84 | (404,438 | ) | 16.6 | ||||||||||||||||||
Options outstanding—end of year | 169,810 | 40.2 | 253,972 | 36.48 | 391,784 | 28.98 | |||||||||||||||||||||
Options exercisable—end of year | 154,864 | $ | 38.53 | 219,449 | $ | 33.18 | 337,684 | $ | 24.42 | ||||||||||||||||||
The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 12,021 | $ | 12,801 | $ | 22,526 | |||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of December 31, 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) | |||||||||||||||||||||||||||
$27.54 | 96,354 | 0.34 | $ | 27.54 | $ | 3,582 | 96,354 | 0.34 | $ | 27.54 | $ | 3,582 | |||||||||||||||
$40.49 - $51.03 | 5,781 | 0.91 | 49.1 | 90 | 5,781 | 0.91 | 49.1 | 90 | |||||||||||||||||||
$57.28 - $59.35 | 67,675 | 6.51 | 57.47 | 490 | 52,729 | 6.51 | 57.46 | 358 | |||||||||||||||||||
$27.54 - $59.35 | 169,810 | 2.82 | 40.2 | $ | 4,162 | 154,864 | 2.46 | 38.53 | $ | 4,030 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$27.54 - $59.35 | 169,810 | 2.82 | $ | 40.2 | $ | 4,162 | |||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on December 31, 2014. The intrinsic value is based on our closing stock price of $64.71 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 Consolidated Statement of Income. The following table summarizes our excess tax benefits for the past three years: | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 4,449 | $ | 5,898 | $ | 7,210 | |||||||||||||||||||||
Defined_Contribution_Plan
Defined Contribution Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Defined Contribution Plan [Abstract] | |||||||||||||
Defined Contribution Plan | Defined Contribution Plan | ||||||||||||
We sponsor a defined contribution 401(k) plan, which allows our U.S.-based employees to voluntarily contribute pre-tax dollars up to a maximum amount allowable by the U.S. Internal Revenue Service. In 2014, 2013, and 2012, we made matching contributions to our 401(k) plan in the United States in an amount equal to 75 cents for every dollar of an employee's contribution, up to a maximum of 7% of the employee's compensation in the pay period. | |||||||||||||
The following table summarizes our matching contributions: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
401(k) matching contributions | $ | 7,451 | $ | 6,879 | $ | 6,642 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||||||
Income Tax Expense and Effective Tax Rate | ||||||||||||||||||||||
The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 113,898 | $ | 178,010 | $ | 153,625 | ||||||||||||||||
Equity in net income of unconsolidated entities | 39 | 1,428 | 2,027 | |||||||||||||||||||
Net loss attributable to the noncontrolling interest | 42 | 122 | 117 | |||||||||||||||||||
Total | $ | 113,979 | $ | 179,560 | $ | 155,769 | ||||||||||||||||
Income tax expense | $ | 35,678 | $ | 56,031 | $ | 52,878 | ||||||||||||||||
Effective tax rate | 31.3 | % | 31.2 | % | 33.9 | % | ||||||||||||||||
The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
($000, except percentages) | Amount | % | Amount | % | Amount | % | ||||||||||||||||
Income tax expense at U.S. federal rate | $ | 39,893 | 35 | % | $ | 62,845 | 35 | % | $ | 54,519 | 35 | % | ||||||||||
State income taxes, net of federal income tax benefit | 2,129 | 1.9 | 3,029 | 1.7 | 1,510 | 1 | ||||||||||||||||
Equity in net income of unconsolidated subsidiaries | (1,397 | ) | (1.2 | ) | — | — | — | — | ||||||||||||||
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses | (600 | ) | (0.5 | ) | (1,842 | ) | (1.0 | ) | (630 | ) | (0.4 | ) | ||||||||||
Difference between U.S. federal statutory and foreign tax rates | (3,961 | ) | (3.5 | ) | (2,513 | ) | (1.4 | ) | (2,777 | ) | (1.8 | ) | ||||||||||
Change in unrecognized tax benefits | 1,481 | 1.3 | (211 | ) | (0.1 | ) | 967 | 0.6 | ||||||||||||||
Credits and incentives | (2,924 | ) | (2.6 | ) | (4,374 | ) | (2.5 | ) | (1,494 | ) | (1.0 | ) | ||||||||||
Recognition of deferred tax assets | (140 | ) | (0.1 | ) | (1,448 | ) | (0.8 | ) | — | — | ||||||||||||
Other - net | 1,197 | 1 | 545 | 0.3 | 783 | 0.5 | ||||||||||||||||
Total income tax expense | $ | 35,678 | 31.3 | % | $ | 56,031 | 31.2 | % | $ | 52,878 | 33.9 | % | ||||||||||
Income tax expense consists of the following: | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
Current tax expense: | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | $ | 20,726 | $ | 42,808 | $ | 38,821 | ||||||||||||||||
State | 1,996 | 3,882 | 1,997 | |||||||||||||||||||
Non-U.S. | 9,638 | 10,456 | 5,719 | |||||||||||||||||||
Current tax expense | 32,360 | 57,146 | 46,537 | |||||||||||||||||||
Deferred tax expense (benefit): | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | 3,668 | 2,630 | 6,287 | |||||||||||||||||||
State | 1,326 | 814 | 334 | |||||||||||||||||||
Non-U.S. | (1,676 | ) | (4,559 | ) | (280 | ) | ||||||||||||||||
Deferred tax expense (benefit), net | 3,318 | (1,115 | ) | 6,341 | ||||||||||||||||||
Income tax expense | $ | 35,678 | $ | 56,031 | $ | 52,878 | ||||||||||||||||
The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: | ||||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
U.S. | $ | 80,394 | $ | 144,065 | $ | 128,920 | ||||||||||||||||
Non-U.S. | 33,504 | 33,945 | 24,705 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 113,898 | $ | 178,010 | $ | 153,625 | ||||||||||||||||
Deferred Tax Assets and Liabilities | ||||||||||||||||||||||
We recognize deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and their tax basis. The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Stock-based compensation expense | $ | 3,262 | $ | 3,479 | ||||||||||||||||||
Accrued liabilities | 13,632 | 9,805 | ||||||||||||||||||||
Net operating loss carryforwards - U.S. federal and state | 10,505 | 851 | ||||||||||||||||||||
Net operating loss carryforwards - Non-U.S. | 7,725 | 9,229 | ||||||||||||||||||||
Deferred royalty revenue | 354 | 366 | ||||||||||||||||||||
Allowance for doubtful accounts | 929 | 758 | ||||||||||||||||||||
Deferred rent | 10,019 | 8,673 | ||||||||||||||||||||
Total deferred tax assets | 46,426 | 33,161 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Acquired intangible assets | (16,419 | ) | (12,967 | ) | ||||||||||||||||||
Property, equipment, and capitalized software | (23,157 | ) | (15,525 | ) | ||||||||||||||||||
Unrealized exchange gains, net | (174 | ) | (395 | ) | ||||||||||||||||||
Prepaid expenses | (3,677 | ) | (4,299 | ) | ||||||||||||||||||
Investments in unconsolidated entities | (12,836 | ) | (12,009 | ) | ||||||||||||||||||
Other | (435 | ) | (373 | ) | ||||||||||||||||||
Total deferred tax liabilities | (56,698 | ) | (45,568 | ) | ||||||||||||||||||
Net deferred tax liability before valuation allowance | (10,272 | ) | (12,407 | ) | ||||||||||||||||||
Valuation allowance | (6,706 | ) | (7,456 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (16,978 | ) | $ | (19,863 | ) | ||||||||||||||||
The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Deferred tax asset, net - current | $ | 9,000 | $ | 3,892 | ||||||||||||||||||
Deferred tax liability, net - non-current | (25,978 | ) | (23,755 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (16,978 | ) | $ | (19,863 | ) | ||||||||||||||||
The following table summarizes our U.S. net operating loss (NOL) carryforwards: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Expiration Date | Expiration Date | |||||||||||||||||||||
U.S. federal NOLs subject to expiration dates | $ | 30,015 | 2023-2034 | $ | 2,136 | 12/31/23 | ||||||||||||||||
The year-over-year increase in U.S. federal NOL carryforward mainly reflects the two acquisitions we completed in 2014, as both HelloWallet and ByAllAccounts were startup companies that accumulated losses in their early stages of operation. | ||||||||||||||||||||||
The following table summarizes our NOL carryforwards for our non-U.S. operations: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Non-U.S. NOLs subject to expiration dates from 2018 through 2034 | $ | 5,240 | $ | 5,314 | ||||||||||||||||||
Non-U.S. NOLs with no expiration date | 32,628 | 40,054 | ||||||||||||||||||||
Total | $ | 37,868 | $ | 45,368 | ||||||||||||||||||
Non-U.S. NOLs not subject to valuation allowances | $ | 5,127 | $ | 8,759 | ||||||||||||||||||
The decrease in non-U.S. NOL carryforwards as of December 31, 2014 compared with 2013 primarily reflects the use of NOL carryforwards in our non-U.S. operations. | ||||||||||||||||||||||
We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries aggregating approximately $118,600,000 as of December 31, 2014, because these earnings have been permanently reinvested. It is not practicable to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. | ||||||||||||||||||||||
In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We have recorded a valuation allowance against all but approximately $5,127,000 of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized. | ||||||||||||||||||||||
Uncertain Tax Positions | ||||||||||||||||||||||
We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. In the normal course of business we are subject to examination by tax authorities throughout the world. The open tax years for our U.S. Federal tax returns and most state tax returns include the years 2008 to the present. In non-U.S. jurisdictions, the statute of limitations generally extends to years prior to 2005. | ||||||||||||||||||||||
We are currently under audit by federal, state and local tax authorities in the United States as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these U.S. federal, state, local, and non-U.S. audits will conclude in 2015. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. | ||||||||||||||||||||||
As of December 31, 2014, our Consolidated Balance Sheet included a current liability of $5,124,000 and a non-current liability of $6,608,000 for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | ||||||||||||||||||||||
The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Gross unrecognized tax benefits - beginning of the year | $ | 12,958 | $ | 12,699 | ||||||||||||||||||
Increases as a result of tax positions taken during a prior-year period | 866 | 791 | ||||||||||||||||||||
Decreases as a result of tax positions taken during a prior-year period | (54 | ) | (146 | ) | ||||||||||||||||||
Increases as a result of tax positions taken during the current period | 2,007 | 2,887 | ||||||||||||||||||||
Decreases relating to settlements with tax authorities | (2,400 | ) | (2,779 | ) | ||||||||||||||||||
Reductions as a result of lapse of the applicable statute of limitations | (1,455 | ) | (494 | ) | ||||||||||||||||||
Gross unrecognized tax benefits - end of the year | $ | 11,922 | $ | 12,958 | ||||||||||||||||||
In 2014, we recorded a net increase of $2,818,000 of gross unrecognized tax benefits before settlements and lapses of statutes of limitations, of which $2,818,000 increased our income tax expense by $2,572,000. In addition, we reduced our unrecognized tax benefits by $3,855,000 for settlements and lapses of statutes of limitations, of which $1,455,000 decreased our income tax expense by $1,269,000. | ||||||||||||||||||||||
As of December 31, 2014, we had $11,922,000 of gross unrecognized tax benefits, of which $11,922,000, if recognized, would reduce our effective income tax rate and decrease our income tax expense by $10,565,000. | ||||||||||||||||||||||
We record interest and penalties related to uncertain tax positions as part of our income tax expense. The following table summarizes our gross liability for interest and penalties: | ||||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Liabilities for interest and penalties | $ | 1,488 | $ | 1,865 | ||||||||||||||||||
We recorded the decrease in the liability, net of any tax benefits, to income tax expense in our Consolidated Statement of Income in 2014. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
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 the result of any of these matters will have a material adverse effect on our business, operating results, or financial position. |
Share_Repurchase_Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Quarterly Dividend and Share Repurchase Programs | 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 December 31, 2014, we had repurchased a total of 8,142,010 shares for $526.5 million under this authorization, leaving approximately $173.5 million available for future repurchases. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
In February 2015, our board of directors declared a quarterly dividend of 19 cents per share. The dividend is payable on April 30, 2015 to shareholders of record as of April 10, 2015. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
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 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. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data (unaudited) | ||||||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||||||
(in thousands except per share amounts) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||
Revenue | $ | 168,856 | $ | 175,428 | $ | 173,482 | $ | 180,500 | $ | 181,165 | $ | 189,385 | $ | 193,106 | $ | 196,415 | |||||||||||||||||
Total operating expense | 128,296 | 131,844 | 128,869 | 138,603 | 142,633 | 214,165 | 147,845 | 149,834 | |||||||||||||||||||||||||
Operating income (loss) | 40,560 | 43,584 | 44,613 | 41,897 | 38,532 | (24,780 | ) | 45,261 | 46,581 | ||||||||||||||||||||||||
Non-operating income (expense), net | 945 | 3,111 | 771 | 2,529 | 865 | 5,898 | (298 | ) | 1,839 | ||||||||||||||||||||||||
Income (loss) before income taxes and equity in net income of unconsolidated entities | 41,505 | 46,695 | 45,384 | 44,426 | 39,397 | (18,882 | ) | 44,963 | 48,420 | ||||||||||||||||||||||||
Equity in net income (loss) of unconsolidated entities | 497 | 360 | 315 | 256 | 599 | 497 | 337 | (1,394 | ) | ||||||||||||||||||||||||
Income tax expense (benefit) | 12,427 | 15,955 | 14,265 | 13,384 | 13,650 | (8,611 | ) | 15,149 | 15,490 | ||||||||||||||||||||||||
Consolidated net income (loss) | 29,575 | 31,100 | 31,434 | 31,298 | 26,346 | (9,774 | ) | 30,151 | 31,536 | ||||||||||||||||||||||||
Net (income) loss attributable to the noncontrolling interests | 43 | 21 | 29 | 29 | 30 | 5 | 29 | (22 | ) | ||||||||||||||||||||||||
Net income (loss) attributable to Morningstar, Inc. | $ | 29,618 | $ | 31,121 | $ | 31,463 | $ | 31,327 | $ | 26,376 | $ | (9,769 | ) | $ | 30,180 | $ | 31,514 | ||||||||||||||||
Net income (loss) per share attributable to Morningstar, Inc. | |||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | $ | 0.59 | $ | (0.22 | ) | $ | 0.67 | $ | 0.71 | ||||||||||||||||
Diluted | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | $ | 0.58 | $ | (0.22 | ) | $ | 0.67 | $ | 0.71 | ||||||||||||||||
Dividends per common share: | |||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.125 | $ | 0.125 | $ | — | $ | 0.295 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.19 | |||||||||||||||||
Dividends paid per common share | $ | — | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | |||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||
Basic | 46,406 | 46,400 | 46,080 | 45,756 | 44,777 | 44,777 | 44,734 | 44,414 | |||||||||||||||||||||||||
Diluted | 46,814 | 46,853 | 46,519 | 46,211 | 45,093 | 44,777 | 44,889 | 44,548 | |||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation | Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions. | ||||||||||||
We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation. A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. | |||||||||||||
We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. | |||||||||||||
As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. | |||||||||||||
Comprehensive Income | Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-2, Comprehensive Income (Topic 220). We show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement | ||||||||||||
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. | ||||||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications. Certain amounts reported in 2012 have been reclassified to conform to the 2013 presentation. | ||||||||||||
Separately, as a result of our move to a more centralized structure in 2013 (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. These changes added approximately $14 million of compensation expense to cost of revenue in 2014 versus 2013 as well as in 2013 versus 2012, and reduced the compensation expense included in the sales and marketing and general and administrative categories by approximately $8 million and $6 million in each of these periods, respectively. These changes did not affect total operating expense or operating income for any of the periods presented. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consists of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices. | ||||||||||||
Investments | Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. | ||||||||||||
• | Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. | ||||||||||||
• | Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
• | Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of fixed-income securities. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. | ||||||||||||
Fair Value Measurements | Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. | ||||||||||||
Effective January 1, 2012, we adopted FASB ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and IFRS. ASU No. 2011-04 clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles, and requires additional disclosures about fair value measurements. The adoption of ASU No. 2011-04 did not have a material impact on our Consolidated Financial Statements. | |||||||||||||
FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs: | |||||||||||||
• | Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. | ||||||||||||
• | Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||
• | Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||
We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 7. | |||||||||||||
We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: available-for-sale, held-to-maturity, and trading. Our investment portfolio is primarily invested in proprietary Morningstar portfolios, exchange-traded funds that seek to track the performance of certain Morningstar proprietary indexes, and various mutual funds. | |||||||||||||
Concentration of Credit Risk Policy [Policy Text Block] | Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2014, 2013, and 2012, no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. | ||||||||||||
Property, Equipment, and Depreciation | Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. | ||||||||||||
Computer Software and Internal Product Development Costs | Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software, FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software. Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three to five years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance. | ||||||||||||
The table below summarizes our capitalized software development costs for the past three years: | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Capitalized software development costs | $ | 18,804 | $ | 8,142 | $ | 8,527 | |||||||
Business Combinations | Business Combinations. Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations. We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their full fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations, on the acquisition date. | ||||||||||||
As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. | |||||||||||||
Goodwill | Goodwill. Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other, we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2014, 2013, and 2012. We did not record any significant impairment losses in 2014, 2013, and 2012. | ||||||||||||
Intangible Assets | Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets, we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2014, 2013, or 2012. | ||||||||||||
Revenue Recognition | Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition, ASC 605-25, Revenue Recognition: Multiple Element Arrangements, and ASC 985-605, Software: Revenue Recognition. | ||||||||||||
We recognize revenue when all of the following conditions are met: | |||||||||||||
• | There is persuasive evidence of an arrangement, as evidenced by a signed contract; | ||||||||||||
• | Delivery of our products and services has taken place. If arrangements include an acceptance provision, we generally begin recognizing revenue when we receive customer acceptance; | ||||||||||||
• | The amount of fees to be paid by the customer is fixed or determinable; and | ||||||||||||
• | The collectibility of the fees is reasonably assured. | ||||||||||||
We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Research, Premium Membership subscriptions for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for commercial mortgage- backed securities (CMBS), we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance. | |||||||||||||
We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. | |||||||||||||
Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. | |||||||||||||
Our Retirement Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Retirement Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Retirement Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. | |||||||||||||
Some of our revenue arrangements combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. | |||||||||||||
We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. | |||||||||||||
Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided, which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. | |||||||||||||
Advertising Costs | Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Advertising expense | $ | 7,497 | $ | 6,939 | $ | 6,306 | |||||||
Stock-Based Compensation Expense | Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation. Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, performance share awards, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | ||||||||||||
We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. | |||||||||||||
Liability for Sabbatical Leave | Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, Morningstar's full-time employees are generally eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25, Compensated Absences. We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave and include this liability in Accrued Compensation in our Consolidated Balance Sheet. | ||||||||||||
Income Taxes | Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, Income Taxes. FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. | ||||||||||||
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. | |||||||||||||
Income per Share | Income per Share. We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share. The difference between weighted average shares outstanding and diluted shares outstanding mainly reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two Class Method. Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. | ||||||||||||
ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. | |||||||||||||
Foreign Currency | Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. | ||||||||||||
Segment Reporting | Segment Information | ||||||||||||
We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |||||||||||||
Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. | |||||||||||||
The accounting policies for our reportable segment are the same as those described in Note 3. We evaluate the performance of our reporting segment based on revenue and operating income. |
Correction_Tables
Correction (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Schedule of Error Corrections | 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_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Advertising Expense [Table Text Block] | The table below summarizes our advertising expense for the past three years: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Advertising expense | $ | 7,497 | $ | 6,939 | $ | 6,306 | |||||||
Capitalized Software Development Costs [Table Text Block] | The table below summarizes our capitalized software development costs for the past three years: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Capitalized software development costs | $ | 18,804 | $ | 8,142 | $ | 8,527 | |||||||
Income_Per_Share_Tables
Income Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||||||||||||
Net income attributable to Morningstar, Inc.: | $ | 78,301 | $ | 123,529 | $ | 108,079 | |||||||||||||||||
Less: Distributed earnings available to participating securities | (7 | ) | (10 | ) | (41 | ) | |||||||||||||||||
Less: Undistributed earnings available to participating securities | (9 | ) | (36 | ) | (47 | ) | |||||||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,991 | |||||||||||||||||
Weighted average common shares outstanding | 44,675 | 46,158 | 48,497 | ||||||||||||||||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||||||||||||||
Continuing operations | $ | 1.75 | $ | 2.68 | $ | 2.12 | |||||||||||||||||
Discontinued operations | — | — | 0.11 | ||||||||||||||||||||
Total | $ | 1.75 | $ | 2.68 | $ | 2.23 | |||||||||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||||||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,991 | |||||||||||||||||
Add: Undistributed earnings allocated to participating securities | 9 | 36 | 47 | ||||||||||||||||||||
Less: Undistributed earnings reallocated to participating securities | (9 | ) | (36 | ) | (46 | ) | |||||||||||||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 78,285 | $ | 123,483 | $ | 107,992 | |||||||||||||||||
Weighted average common shares outstanding | 44,675 | 46,158 | 48,497 | ||||||||||||||||||||
Net effect of dilutive stock options and restricted stock units | 226 | 333 | 651 | ||||||||||||||||||||
Weighted average common shares outstanding for computing diluted income per share | 44,901 | 46,491 | 49,148 | ||||||||||||||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||||||||||||||
Continuing operations | $ | 1.74 | $ | 2.66 | $ | 2.1 | |||||||||||||||||
Discontinued operations | — | — | 0.1 | ||||||||||||||||||||
Total | $ | 1.74 | $ | 2.66 | $ | 2.2 | |||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table shows the number of weighted average stock options, restricted stock units, and performance share awards excluded from our calculation of diluted earnings per share from both continuing operations and net earnings because their inclusion would have been anti-dilutive: | ||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted average stock options | — | — | 83 | ||||||||||||||||||||
Weighted average restricted stock units | 47 | 17 | 7 | ||||||||||||||||||||
Weighted average performance share awards | 6 | — | — | ||||||||||||||||||||
Total | 53 | 17 | 90 | ||||||||||||||||||||
Stock options and restricted stock could be included in the calculation in the future. |
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Products and Services Information | ||||||||||||
We derive revenue from two product groups. The investment information product group includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements. The investment management product group includes all of our asset management operations, which earn the majority of their revenue from asset-based fees. The table below summarizes our revenue by product group: | |||||||||||||
External revenue by product group | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Investment information | $ | 597,046 | $ | 555,642 | $ | 526,147 | |||||||
Investment management | 163,025 | 142,624 | 132,141 | ||||||||||
Consolidated revenue | $ | 760,071 | $ | 698,266 | $ | 658,288 | |||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | |||||||||||||
External revenue by geographical area | |||||||||||||
Year ended December 31 | |||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 550,740 | $ | 500,730 | $ | 466,947 | |||||||
United Kingdom | 61,844 | 56,298 | 56,794 | ||||||||||
Continental Europe | 62,677 | 57,580 | 49,844 | ||||||||||
Australia | 34,977 | 35,289 | 38,229 | ||||||||||
Canada | 30,790 | 31,845 | 30,664 | ||||||||||
Asia | 15,830 | 13,860 | 13,765 | ||||||||||
Other | 3,213 | 2,664 | 2,045 | ||||||||||
Total International | 209,331 | 197,536 | 191,341 | ||||||||||
Consolidated revenue | $ | 760,071 | $ | 698,266 | $ | 658,288 | |||||||
Long-lived assets by geographical area | |||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
United States | $ | 98,135 | $ | 84,321 | |||||||||
United Kingdom | 8,014 | 6,873 | |||||||||||
Continental Europe | 2,102 | 1,873 | |||||||||||
Australia | 794 | 1,051 | |||||||||||
Canada | 938 | 1,275 | |||||||||||
Asia | 7,491 | 9,479 | |||||||||||
Other | 87 | 114 | |||||||||||
Total International | 19,426 | 20,665 | |||||||||||
Consolidated property, equipment, and capitalized software, net | $ | 117,561 | $ | 104,986 | |||||||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Investments | |||||||||||||||||||||||||||||||||
As of December 31 | |||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 13,187 | $ | 91,461 | |||||||||||||||||||||||||||||
Held-to-maturity | 17,930 | 31,214 | |||||||||||||||||||||||||||||||
Trading securities | 8,305 | 7,732 | |||||||||||||||||||||||||||||||
Total | $ | 39,422 | $ | 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 December 31, 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 | $ | — | $ | — | $ | — | $ | — | $ | 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 | 11,428 | 796 | (289 | ) | 11,935 | 8,872 | 1,011 | (141 | ) | 9,742 | |||||||||||||||||||||||
Mutual funds | 1,220 | 132 | (100 | ) | 1,252 | 2,095 | 221 | (98 | ) | 2,218 | |||||||||||||||||||||||
Total | $ | 12,648 | $ | 928 | $ | (389 | ) | $ | 13,187 | $ | 90,560 | $ | 1,269 | $ | (368 | ) | $ | 91,461 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 17,930 | $ | — | $ | — | $ | 17,930 | $ | 31,214 | $ | — | $ | — | $ | 31,214 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 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 December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||
$0 | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | 45,486 | $ | 45,402 | |||||||||||||||||||||||||
Due in one to two years | — | — | 34,107 | 34,099 | |||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | 12,648 | 13,187 | 10,967 | 11,960 | |||||||||||||||||||||||||||||
Total | $ | 12,648 | $ | 13,187 | $ | 90,560 | $ | 91,461 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 17,929 | $ | 17,929 | $ | 31,210 | $ | 31,210 | |||||||||||||||||||||||||
Due in one to three years | 1 | 1 | 4 | 4 | |||||||||||||||||||||||||||||
Total | $ | 17,930 | $ | 17,930 | $ | 31,214 | $ | 31,214 | |||||||||||||||||||||||||
Schedule of Realized Gain (Loss) | The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Realized gains | $ | 1,484 | $ | 5,550 | $ | 1,671 | |||||||||||||||||||||||||||
Realized losses | (466 | ) | (1,343 | ) | (1,133 | ) | |||||||||||||||||||||||||||
Realized gains, net | $ | 1,018 | $ | 4,207 | $ | 538 | |||||||||||||||||||||||||||
Unrealized Gain Loss On Trading Securities | The following table shows the net unrealized gains (losses) on trading securities as recorded in our Consolidated Statements of Income: | ||||||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Unrealized gains (losses), net | $ | (188 | ) | $ | 827 | $ | 269 | ||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
$0 | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments | |||||||||||||||||||||||||||||||||
Government obligations | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||||||||||||||||||
Foreign obligations | — | — | — | — | |||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | |||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | 11,935 | 11,935 | — | — | |||||||||||||||||||||||||||||
Mutual funds | 1,252 | 1,252 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8,305 | 8,305 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 512 | 512 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22,004 | $ | 22,004 | $ | — | $ | — | |||||||||||||||||||||||||
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 | $ | — | |||||||||||||||||||||||||
Acquisitions_Goodwill_and_Othe1
Acquisitions, Goodwill, and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 completion 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 | 8,646 | ||||||||||||||||||||||||||||
Intangible assets | 9,460 | ||||||||||||||||||||||||||||
Goodwill | 39,166 | ||||||||||||||||||||||||||||
Deferred revenue | (2,897 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,595 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (981 | ) | |||||||||||||||||||||||||||
Total fair value of HelloWallet | $ | 54,006 | |||||||||||||||||||||||||||
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, all of which are preliminary pending completion of the final valuation: | |||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 287 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 152 | ||||||||||||||||||||||||||||
Deferred tax asset | 3,987 | ||||||||||||||||||||||||||||
Other current and non-current assets | 257 | ||||||||||||||||||||||||||||
Intangible assets | 8,681 | ||||||||||||||||||||||||||||
Goodwill | 18,476 | ||||||||||||||||||||||||||||
Deferred revenue | (79 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (3,299 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (513 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 27,949 | |||||||||||||||||||||||||||
Schedule of Business Acquisitions | The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: | ||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,472 | |||||||||||||||||||||||||||
Accounts receivable and other current assets | 519 | ||||||||||||||||||||||||||||
Other non-current assets | 244 | ||||||||||||||||||||||||||||
Intangible assets | 9,700 | ||||||||||||||||||||||||||||
Goodwill | 8,911 | ||||||||||||||||||||||||||||
Deferred revenue | (1,191 | ) | |||||||||||||||||||||||||||
Deferred tax liability | (2,272 | ) | |||||||||||||||||||||||||||
Other current and non-current liabilities | (870 | ) | |||||||||||||||||||||||||||
Total fair value of Morningstar Sweden | $ | 18,513 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The allocation included acquired intangible assets, as follows: | ||||||||||||||||||||||||||||
$0 | Weighted Average Useful Life (years) | ||||||||||||||||||||||||||||
Customer-related assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Total intangible assets | $ | 9,700 | 14 | ||||||||||||||||||||||||||
Schedule of Goodwill | The following table shows the changes in our goodwill balances from January 1, 2013 to December 31, 2014: | ||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 320,845 | |||||||||||||||||||||||||||
Acquisition of remaining ownership in Morningstar Sweden | 8,911 | ||||||||||||||||||||||||||||
Other, primarily foreign currency translation | (3,306 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 326,450 | |||||||||||||||||||||||||||
Acquisition of HelloWallet and ByAllAccounts | 57,642 | ||||||||||||||||||||||||||||
Foreign currency translation | (14,038 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 370,054 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | The following table summarizes our intangible assets: | ||||||||||||||||||||||||||||
As of December 31, 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 | $ | 29,026 | $ | (25,033 | ) | $ | 3,993 | 9 | $ | 29,477 | $ | (23,128 | ) | $ | 6,349 | 9 | |||||||||||||
Customer-related assets | 141,497 | (83,582 | ) | 57,915 | 12 | 141,833 | (74,311 | ) | 67,522 | 12 | |||||||||||||||||||
Supplier relationships | 240 | (120 | ) | 120 | 20 | 240 | (108 | ) | 132 | 20 | |||||||||||||||||||
Technology-based assets | 88,816 | (57,395 | ) | 31,421 | 8 | 80,489 | (50,673 | ) | 29,816 | 9 | |||||||||||||||||||
Non-competition agreement | 4,339 | (1,883 | ) | 2,456 | 5 | 1,661 | (1,571 | ) | 90 | 4 | |||||||||||||||||||
Total intangible assets | $ | 263,918 | $ | (168,013 | ) | $ | 95,905 | 10 | $ | 253,700 | $ | (149,791 | ) | $ | 103,909 | 10 | |||||||||||||
Schedule of Intangible Asset, Amortization Expense | |||||||||||||||||||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Amortization expense | $ | 22,264 | $ | 21,454 | $ | 23,944 | |||||||||||||||||||||||
Schedule of Expected Amortization Expense | Based on acquisitions and divestitures completed through December 31, 2014, we expect intangible amortization expense for 2015 and subsequent years to be as follows: | ||||||||||||||||||||||||||||
$0 | |||||||||||||||||||||||||||||
2015 | $ | 21,920 | |||||||||||||||||||||||||||
2016 | 17,394 | ||||||||||||||||||||||||||||
2017 | 12,941 | ||||||||||||||||||||||||||||
2018 | 10,790 | ||||||||||||||||||||||||||||
2019 | 8,046 | ||||||||||||||||||||||||||||
Thereafter | 24,814 | ||||||||||||||||||||||||||||
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | 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 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the amounts included in our Consolidated Statements of Income for discontinued operations for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Gain on sales of businesses | $ | — | $ | — | $ | 6,193 | |||||||
Income tax expense | — | — | 1,005 | ||||||||||
Earnings from discontinued operations, net of tax | $ | — | $ | — | $ | 5,188 | |||||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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 December 31 | |||||||||
$0 | 2014 | 2013 | |||||||
Investment in MJKK | $ | 23,014 | $ | 21,782 | |||||
Other equity method investments | 3,475 | 6,166 | |||||||
Investments accounted for using the cost method | 2,309 | 10,766 | |||||||
Total investments in unconsolidated entities | $ | 28,798 | $ | 38,714 | |||||
Schedule of Equity Method Investments | |||||||||
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) | ¥ | 7,347,413 | ¥ | 9,824,068 | |||||
Equivalent U.S. dollars ($000) | $ | 61,277 | $ | 94,999 | |||||
Property_Equipment_and_Capital1
Property, Equipment, and Capitalized Software Property, Equipment, and Capitalized Software (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Schedule of Property, Equipment, and Capitalized Software by Major Category | The following table shows our property, equipment, and capitalized software summarized by major category: | ||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Computer equipment | $ | 53,420 | $ | 47,830 | |||||||||
Capitalized software | 87,764 | 50,360 | |||||||||||
Furniture and fixtures | 23,172 | 23,259 | |||||||||||
Leasehold improvements | 54,320 | 52,512 | |||||||||||
Telephone equipment | 1,948 | 2,032 | |||||||||||
Construction in progress | 29,870 | 35,159 | |||||||||||
Property, equipment, and capitalized software, at cost | 250,494 | 211,152 | |||||||||||
Less accumulated depreciation | (132,933 | ) | (106,166 | ) | |||||||||
Property, equipment, and capitalized software, net | $ | 117,561 | $ | 104,986 | |||||||||
Capitalized Software Not Yet Placed In Service Included In Construction In Progress Balance | The following table shows the amount of capitalized software development costs included in construction in progress: | ||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Capitalized software development costs not yet placed into service | $ | 18,070 | $ | 11,345 | |||||||||
Summary of Depreciation Expense | The following table summarizes our depreciation expense: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 32,622 | $ | 24,239 | $ | 19,152 | |||||||
Operating_Leases_Operating_Lea
Operating Leases Operating Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases, Operating [Abstract] | |||||||||||||
Schedule of Minimum Future Rental Commitments | The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: | ||||||||||||
Minimum Future Rental Commitments | $0 | ||||||||||||
2015 | $ | 19,395 | |||||||||||
2016 | 20,299 | ||||||||||||
2017 | 19,270 | ||||||||||||
2018 | 16,916 | ||||||||||||
2019 | 12,632 | ||||||||||||
Thereafter | 48,203 | ||||||||||||
Total | $ | 136,715 | |||||||||||
Schedule of Rent Expense | The following table summarizes our rent expense including taxes, insurance, and related operating costs: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
Rent expense | $ | 24,460 | $ | 22,169 | $ | 20,736 | |||||||
Schedule of Deferred Rent | Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. | ||||||||||||
As of December 31 | |||||||||||||
$0 | 2014 | 2013 | |||||||||||
Deferred rent | $ | 29,124 | $ | 26,157 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 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 December 31 | |||||||||||||||||||||||||||
0 | 2014 | ||||||||||||||||||||||||||
Shares available for future grants | 4,233 | ||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: | ||||||||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Restricted stock units | $ | 16,307 | $ | 14,163 | $ | 13,451 | |||||||||||||||||||||
Restricted stock | 388 | 388 | 5,013 | ||||||||||||||||||||||||
Performance share awards | 505 | — | — | ||||||||||||||||||||||||
Stock options | 424 | 492 | 441 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 17,624 | $ | 15,043 | $ | 18,905 | |||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 5,055 | $ | 4,027 | $ | 3,686 | |||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years: | ||||||||||||||||||||||||||
Year ended December 31 | |||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Cost of revenue | $ | 7,774 | $ | 6,870 | $ | 6,416 | |||||||||||||||||||||
Sales and marketing | 2,170 | 1,975 | 1,937 | ||||||||||||||||||||||||
General and administrative | 7,680 | 6,198 | 10,552 | ||||||||||||||||||||||||
Total stock-based compensation expense | $ | 17,624 | $ | 15,043 | $ | 18,905 | |||||||||||||||||||||
Schedule of Uncategorized Stock-Based Compensation Expense | The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 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 | $ | 33,064 | 32 | ||||||||||||||||||||||||
Restricted stock | 129 | 4 | |||||||||||||||||||||||||
Performance share awards | 453 | 24 | |||||||||||||||||||||||||
Stock options | 162 | 6 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33,808 | 32 | ||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | The following table summarizes restricted stock unit activity during the past three years: | ||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs Outstanding - January 1, 2012 | 741,043 | 20,076 | 761,119 | $ | 50.66 | ||||||||||||||||||||||
Granted | 341,282 | — | 341,282 | 56.26 | |||||||||||||||||||||||
Dividend equivalents | 6,405 | 130 | 6,535 | 52.02 | |||||||||||||||||||||||
Vested | (270,695 | ) | — | (270,695 | ) | 50.12 | |||||||||||||||||||||
Vested but deferred | (892 | ) | 892 | — | — | ||||||||||||||||||||||
Issued | — | (2,316 | ) | (2,316 | ) | 73.28 | |||||||||||||||||||||
Forfeited | (89,998 | ) | — | (89,998 | ) | 50.84 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2012 | 727,145 | 18,782 | 745,927 | 53.37 | |||||||||||||||||||||||
Granted | 287,848 | — | 287,848 | 72.04 | |||||||||||||||||||||||
Dividend equivalents | 2,773 | 157 | 2,930 | 57.39 | |||||||||||||||||||||||
Vested | (278,549 | ) | — | (278,549 | ) | 50.41 | |||||||||||||||||||||
Issued | — | (2,257 | ) | (2,257 | ) | 49.4 | |||||||||||||||||||||
Forfeited | (59,215 | ) | — | (59,215 | ) | 57.58 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2013 | 680,002 | 16,682 | 696,684 | 62.02 | |||||||||||||||||||||||
Granted | 279,524 | — | 279,524 | 72.68 | |||||||||||||||||||||||
Dividend equivalents | 2,621 | 150 | 2,771 | 55.7 | |||||||||||||||||||||||
Vested | (268,115 | ) | — | (268,115 | ) | 58.91 | |||||||||||||||||||||
Issued | — | (2,054 | ) | (2,054 | ) | 53.54 | |||||||||||||||||||||
Forfeited | (38,098 | ) | — | (38,098 | ) | 65.21 | |||||||||||||||||||||
RSUs Outstanding - December 31, 2014 | 655,934 | 14,778 | 670,712 | 67.51 | |||||||||||||||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | Information as of December 31, 2014 regarding our target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted during 2014 is as follows: | ||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||
Target performance share awards granted | 23,685 | ||||||||||||||||||||||||||
Fair value per award (1) | $ | 80.91 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 11,843 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels | $ | 453,000 | |||||||||||||||||||||||||
(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 Stock Options, Valuation Assumptions | In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: | ||||||||||||||||||||||||||
Assumptions for Black-Scholes Option Pricing Model | |||||||||||||||||||||||||||
Expected life (years): | 7.4 | ||||||||||||||||||||||||||
Volatility factor: | 35.1 | % | |||||||||||||||||||||||||
Dividend yield: | 0.35 | % | |||||||||||||||||||||||||
Interest rate: | 2.87 | % | |||||||||||||||||||||||||
Schedule of Options Granted at Exercise Price Below Fair Value per Share on Grant Date | The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | 398,859 | $ | 19.72 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (150 | ) | 22.24 | (250 | ) | 21.48 | (650 | ) | 14.7 | ||||||||||||||||||
Exercised | (179,409 | ) | 22.08 | (102,886 | ) | 21.09 | (115,514 | ) | 20.19 | ||||||||||||||||||
Options outstanding—end of year | — | — | 179,559 | 21.47 | 282,695 | 20.55 | |||||||||||||||||||||
Options exercisable—end of year | — | $ | — | 179,559 | $ | 21.47 | 282,695 | $ | 20.55 | ||||||||||||||||||
Schedule of All Other Option Granted | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
All Other Option Grants, Excluding Activity Shown Above | Underlying | Weighted | Underlying | Weighted | Underlying | Weighted | |||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Options outstanding—beginning of year | 253,972 | $ | 36.48 | 391,784 | $ | 28.98 | 818,552 | $ | 22.76 | ||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||
Canceled | (526 | ) | 38.61 | (1,352 | ) | 16.19 | (22,330 | ) | 39.75 | ||||||||||||||||||
Exercised | (83,636 | ) | 30.82 | (136,460 | ) | 16.84 | (404,438 | ) | 16.6 | ||||||||||||||||||
Options outstanding—end of year | 169,810 | 40.2 | 253,972 | 36.48 | 391,784 | 28.98 | |||||||||||||||||||||
Options exercisable—end of year | 154,864 | $ | 38.53 | 219,449 | $ | 33.18 | 337,684 | $ | 24.42 | ||||||||||||||||||
Schedule of Intrinsic Value of Stock Options Exercised During Period | The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 12,021 | $ | 12,801 | $ | 22,526 | |||||||||||||||||||||
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | The table below shows additional information for options outstanding and exercisable as of December 31, 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) | |||||||||||||||||||||||||||
$27.54 | 96,354 | 0.34 | $ | 27.54 | $ | 3,582 | 96,354 | 0.34 | $ | 27.54 | $ | 3,582 | |||||||||||||||
$40.49 - $51.03 | 5,781 | 0.91 | 49.1 | 90 | 5,781 | 0.91 | 49.1 | 90 | |||||||||||||||||||
$57.28 - $59.35 | 67,675 | 6.51 | 57.47 | 490 | 52,729 | 6.51 | 57.46 | 358 | |||||||||||||||||||
$27.54 - $59.35 | 169,810 | 2.82 | 40.2 | $ | 4,162 | 154,864 | 2.46 | 38.53 | $ | 4,030 | |||||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$27.54 - $59.35 | 169,810 | 2.82 | $ | 40.2 | $ | 4,162 | |||||||||||||||||||||
Schedule of Tax Benefits Related To Share Based Compensation | The following table summarizes our excess tax benefits for the past three years: | ||||||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 4,449 | $ | 5,898 | $ | 7,210 | |||||||||||||||||||||
Defined_Contribution_Plan_Tabl
Defined Contribution Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Defined Contribution Plan [Abstract] | |||||||||||||
Schedule of Defined Contribution Plan, Employer Matching Contributions | The following table summarizes our matching contributions: | ||||||||||||
$0 | 2014 | 2013 | 2012 | ||||||||||
401(k) matching contributions | $ | 7,451 | $ | 6,879 | $ | 6,642 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||||||
Schedule of Income Tax Expense and Effective Tax Rate | The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 113,898 | $ | 178,010 | $ | 153,625 | ||||||||||||||||
Equity in net income of unconsolidated entities | 39 | 1,428 | 2,027 | |||||||||||||||||||
Net loss attributable to the noncontrolling interest | 42 | 122 | 117 | |||||||||||||||||||
Total | $ | 113,979 | $ | 179,560 | $ | 155,769 | ||||||||||||||||
Income tax expense | $ | 35,678 | $ | 56,031 | $ | 52,878 | ||||||||||||||||
Effective tax rate | 31.3 | % | 31.2 | % | 33.9 | % | ||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
($000, except percentages) | Amount | % | Amount | % | Amount | % | ||||||||||||||||
Income tax expense at U.S. federal rate | $ | 39,893 | 35 | % | $ | 62,845 | 35 | % | $ | 54,519 | 35 | % | ||||||||||
State income taxes, net of federal income tax benefit | 2,129 | 1.9 | 3,029 | 1.7 | 1,510 | 1 | ||||||||||||||||
Equity in net income of unconsolidated subsidiaries | (1,397 | ) | (1.2 | ) | — | — | — | — | ||||||||||||||
Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses | (600 | ) | (0.5 | ) | (1,842 | ) | (1.0 | ) | (630 | ) | (0.4 | ) | ||||||||||
Difference between U.S. federal statutory and foreign tax rates | (3,961 | ) | (3.5 | ) | (2,513 | ) | (1.4 | ) | (2,777 | ) | (1.8 | ) | ||||||||||
Change in unrecognized tax benefits | 1,481 | 1.3 | (211 | ) | (0.1 | ) | 967 | 0.6 | ||||||||||||||
Credits and incentives | (2,924 | ) | (2.6 | ) | (4,374 | ) | (2.5 | ) | (1,494 | ) | (1.0 | ) | ||||||||||
Recognition of deferred tax assets | (140 | ) | (0.1 | ) | (1,448 | ) | (0.8 | ) | — | — | ||||||||||||
Other - net | 1,197 | 1 | 545 | 0.3 | 783 | 0.5 | ||||||||||||||||
Total income tax expense | $ | 35,678 | 31.3 | % | $ | 56,031 | 31.2 | % | $ | 52,878 | 33.9 | % | ||||||||||
Schedule of Components of Income Tax Expense | Income tax expense consists of the following: | |||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
Current tax expense: | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | $ | 20,726 | $ | 42,808 | $ | 38,821 | ||||||||||||||||
State | 1,996 | 3,882 | 1,997 | |||||||||||||||||||
Non-U.S. | 9,638 | 10,456 | 5,719 | |||||||||||||||||||
Current tax expense | 32,360 | 57,146 | 46,537 | |||||||||||||||||||
Deferred tax expense (benefit): | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||
Federal | 3,668 | 2,630 | 6,287 | |||||||||||||||||||
State | 1,326 | 814 | 334 | |||||||||||||||||||
Non-U.S. | (1,676 | ) | (4,559 | ) | (280 | ) | ||||||||||||||||
Deferred tax expense (benefit), net | 3,318 | (1,115 | ) | 6,341 | ||||||||||||||||||
Income tax expense | $ | 35,678 | $ | 56,031 | $ | 52,878 | ||||||||||||||||
Schedule of Income before Income Tax | The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: | |||||||||||||||||||||
Year ended December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | 2012 | |||||||||||||||||||
U.S. | $ | 80,394 | $ | 144,065 | $ | 128,920 | ||||||||||||||||
Non-U.S. | 33,504 | 33,945 | 24,705 | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 113,898 | $ | 178,010 | $ | 153,625 | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: | |||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||
Stock-based compensation expense | $ | 3,262 | $ | 3,479 | ||||||||||||||||||
Accrued liabilities | 13,632 | 9,805 | ||||||||||||||||||||
Net operating loss carryforwards - U.S. federal and state | 10,505 | 851 | ||||||||||||||||||||
Net operating loss carryforwards - Non-U.S. | 7,725 | 9,229 | ||||||||||||||||||||
Deferred royalty revenue | 354 | 366 | ||||||||||||||||||||
Allowance for doubtful accounts | 929 | 758 | ||||||||||||||||||||
Deferred rent | 10,019 | 8,673 | ||||||||||||||||||||
Total deferred tax assets | 46,426 | 33,161 | ||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||
Acquired intangible assets | (16,419 | ) | (12,967 | ) | ||||||||||||||||||
Property, equipment, and capitalized software | (23,157 | ) | (15,525 | ) | ||||||||||||||||||
Unrealized exchange gains, net | (174 | ) | (395 | ) | ||||||||||||||||||
Prepaid expenses | (3,677 | ) | (4,299 | ) | ||||||||||||||||||
Investments in unconsolidated entities | (12,836 | ) | (12,009 | ) | ||||||||||||||||||
Other | (435 | ) | (373 | ) | ||||||||||||||||||
Total deferred tax liabilities | (56,698 | ) | (45,568 | ) | ||||||||||||||||||
Net deferred tax liability before valuation allowance | (10,272 | ) | (12,407 | ) | ||||||||||||||||||
Valuation allowance | (6,706 | ) | (7,456 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (16,978 | ) | $ | (19,863 | ) | ||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets | The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: | |||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Deferred tax asset, net - current | $ | 9,000 | $ | 3,892 | ||||||||||||||||||
Deferred tax liability, net - non-current | (25,978 | ) | (23,755 | ) | ||||||||||||||||||
Net deferred tax liability | $ | (16,978 | ) | $ | (19,863 | ) | ||||||||||||||||
Schedule of Gross Unrecognized Tax Benefits | The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: | |||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Gross unrecognized tax benefits - beginning of the year | $ | 12,958 | $ | 12,699 | ||||||||||||||||||
Increases as a result of tax positions taken during a prior-year period | 866 | 791 | ||||||||||||||||||||
Decreases as a result of tax positions taken during a prior-year period | (54 | ) | (146 | ) | ||||||||||||||||||
Increases as a result of tax positions taken during the current period | 2,007 | 2,887 | ||||||||||||||||||||
Decreases relating to settlements with tax authorities | (2,400 | ) | (2,779 | ) | ||||||||||||||||||
Reductions as a result of lapse of the applicable statute of limitations | (1,455 | ) | (494 | ) | ||||||||||||||||||
Gross unrecognized tax benefits - end of the year | $ | 11,922 | $ | 12,958 | ||||||||||||||||||
Summary of Income Tax Examinations | The following table summarizes our gross liability for interest and penalties: | |||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Liabilities for interest and penalties | $ | 1,488 | $ | 1,865 | ||||||||||||||||||
U.S [Member] | ||||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||||||
Summary of Operating Loss Carryforwards | The following table summarizes our U.S. net operating loss (NOL) carryforwards: | |||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Expiration Date | Expiration Date | |||||||||||||||||||||
U.S. federal NOLs subject to expiration dates | $ | 30,015 | 2023-2034 | $ | 2,136 | 12/31/23 | ||||||||||||||||
Non-U.S. [Member] | ||||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||||||||
Summary of Operating Loss Carryforwards | The following table summarizes our NOL carryforwards for our non-U.S. operations: | |||||||||||||||||||||
As of December 31 | ||||||||||||||||||||||
$0 | 2014 | 2013 | ||||||||||||||||||||
Non-U.S. NOLs subject to expiration dates from 2018 through 2034 | $ | 5,240 | $ | 5,314 | ||||||||||||||||||
Non-U.S. NOLs with no expiration date | 32,628 | 40,054 | ||||||||||||||||||||
Total | $ | 37,868 | $ | 45,368 | ||||||||||||||||||
Non-U.S. NOLs not subject to valuation allowances | $ | 5,127 | $ | 8,759 | ||||||||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | |||||||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||||||
(in thousands except per share amounts) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||
Revenue | $ | 168,856 | $ | 175,428 | $ | 173,482 | $ | 180,500 | $ | 181,165 | $ | 189,385 | $ | 193,106 | $ | 196,415 | |||||||||||||||||
Total operating expense | 128,296 | 131,844 | 128,869 | 138,603 | 142,633 | 214,165 | 147,845 | 149,834 | |||||||||||||||||||||||||
Operating income (loss) | 40,560 | 43,584 | 44,613 | 41,897 | 38,532 | (24,780 | ) | 45,261 | 46,581 | ||||||||||||||||||||||||
Non-operating income (expense), net | 945 | 3,111 | 771 | 2,529 | 865 | 5,898 | (298 | ) | 1,839 | ||||||||||||||||||||||||
Income (loss) before income taxes and equity in net income of unconsolidated entities | 41,505 | 46,695 | 45,384 | 44,426 | 39,397 | (18,882 | ) | 44,963 | 48,420 | ||||||||||||||||||||||||
Equity in net income (loss) of unconsolidated entities | 497 | 360 | 315 | 256 | 599 | 497 | 337 | (1,394 | ) | ||||||||||||||||||||||||
Income tax expense (benefit) | 12,427 | 15,955 | 14,265 | 13,384 | 13,650 | (8,611 | ) | 15,149 | 15,490 | ||||||||||||||||||||||||
Consolidated net income (loss) | 29,575 | 31,100 | 31,434 | 31,298 | 26,346 | (9,774 | ) | 30,151 | 31,536 | ||||||||||||||||||||||||
Net (income) loss attributable to the noncontrolling interests | 43 | 21 | 29 | 29 | 30 | 5 | 29 | (22 | ) | ||||||||||||||||||||||||
Net income (loss) attributable to Morningstar, Inc. | $ | 29,618 | $ | 31,121 | $ | 31,463 | $ | 31,327 | $ | 26,376 | $ | (9,769 | ) | $ | 30,180 | $ | 31,514 | ||||||||||||||||
Net income (loss) per share attributable to Morningstar, Inc. | |||||||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.67 | $ | 0.68 | $ | 0.68 | $ | 0.59 | $ | (0.22 | ) | $ | 0.67 | $ | 0.71 | ||||||||||||||||
Diluted | $ | 0.63 | $ | 0.66 | $ | 0.68 | $ | 0.68 | $ | 0.58 | $ | (0.22 | ) | $ | 0.67 | $ | 0.71 | ||||||||||||||||
Dividends per common share: | |||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.125 | $ | 0.125 | $ | — | $ | 0.295 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.19 | |||||||||||||||||
Dividends paid per common share | $ | — | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 | |||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||||||
Basic | 46,406 | 46,400 | 46,080 | 45,756 | 44,777 | 44,777 | 44,734 | 44,414 | |||||||||||||||||||||||||
Diluted | 46,814 | 46,853 | 46,519 | 46,211 | 45,093 | 44,777 | 44,889 | 44,548 | |||||||||||||||||||||||||
Description_of_Business_Detail
Description of Business (Details) | Dec. 31, 2014 |
Countries | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates | 27 |
Correction_Details
Correction (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts payable and accrued liabilities | $34,268 | $42,131 |
Deferred rent | 26,390 | 23,938 |
Previously Reported | ||
Accounts payable and accrued liabilities | 52,877 | |
Deferred rent | 13,192 | |
Correction | ||
Accounts payable and accrued liabilities | -10,746 | |
Deferred rent | $10,746 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||
capitalized software development costs | $18,804,000 | $8,142,000 | $8,527,000 |
Advertising expense | 7,497,000 | 6,939,000 | 6,306,000 |
Intangible Assets, useful life, minimum | 10 years | 10 years | |
Correction | |||
Business Acquisition [Line Items] | |||
Reorganization, Number of Positions Shifted | 180 | ||
Cost of Revenue [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | 14,000,000 | ||
General and Administrative Expense [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | -6,000,000 | ||
Sales and Marketing [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | ($8,000,000) | ||
Property, Plant and Equipment [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 3 years | ||
Property, Plant and Equipment [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 7 years | ||
Capitalized software [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 3 years | ||
Capitalized software [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 5 years |
Credit_Arrangements_Details
Credit Arrangements (Details) (Revolving Credit Facility [Member], USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | 75 | |
Line of Credit, Current | 30 | |
Line of Credit Facility, Remaining Borrowing Capacity | $45 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 100.00% |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||
Net income attributable to Morningstar, Inc. | $31,514 | $30,180 | ($9,769) | $26,376 | $31,327 | $31,463 | $31,121 | $29,618 | $78,301 | $123,529 | $108,079 |
Less: Distributed earnings availabline to participating securities | -7 | -10 | -41 | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 9 | 36 | 47 | ||||||||
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 78,285 | 123,483 | 107,991 | ||||||||
Weighted average common shares outstanding | 44,414 | 44,734 | 44,777 | 44,777 | 45,756 | 46,080 | 46,400 | 46,406 | 44,675 | 46,158 | 48,497 |
Basic net income per share attributable to Morningstar, Inc. | $1.75 | $2.68 | $2.23 | ||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 78,285 | 123,483 | 107,991 | ||||||||
Add: Undistributed earnings allocated to participating securities | 9 | 36 | 47 | ||||||||
Less: Undistributed earnings reallocated to participating securities | -9 | -36 | -46 | ||||||||
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | $78,285 | $123,483 | $107,992 | ||||||||
Weighted average common shares outstanding | 44,414 | 44,734 | 44,777 | 44,777 | 45,756 | 46,080 | 46,400 | 46,406 | 44,675 | 46,158 | 48,497 |
Net effect of dilutive stock options and restricted stock units | 226 | 333 | 651 | ||||||||
Weighted average common shares outstanding for computing diluted income per share | 44,548 | 44,889 | 44,777 | 45,093 | 46,211 | 46,519 | 46,853 | 46,814 | 44,901 | 46,491 | 49,148 |
Diluted net income per share attributable to Morningstar, Inc. | $1.74 | $2.66 | $2.20 | ||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1.75 | $2.68 | $2.12 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $0 | $0 | $0.11 | ||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.71 | $0.67 | ($0.22) | $0.58 | $0.68 | $0.68 | $0.66 | $0.63 | $1.74 | $2.66 | $2.10 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $0 | $0 | $0.10 |
Income_Per_Share_Income_Per_Sh
Income Per Share Income Per Share Antidilutive Shares (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 53 | 17 | 90 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 83 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 47 | 17 | 7 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6 | 0 | 0 |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information (Operating Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | $196,415 | $193,106 | $189,385 | $181,165 | $180,500 | $173,482 | $175,428 | $168,856 | $760,071 | $698,266 | $658,288 |
Stock-based compensation expense | 17,624 | 15,043 | 18,905 | ||||||||
Depreciation and amortization | 54,886 | 45,693 | 43,096 | ||||||||
Operating income | 46,581 | 45,261 | -24,780 | 38,532 | 41,897 | 44,613 | 43,584 | 40,560 | 105,594 | 170,654 | 150,668 |
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Goodwill | 370,054 | 326,450 | 370,054 | 326,450 | 320,845 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | 550,740 | 500,730 | 466,947 | ||||||||
Investment Management [Member] | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | 163,025 | 142,624 | 132,141 | ||||||||
Investment Information [Member] | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | $597,046 | $555,642 | $526,147 |
Segment_and_Geographical_Area_3
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $196,415 | $193,106 | $189,385 | $181,165 | $180,500 | $173,482 | $175,428 | $168,856 | $760,071 | $698,266 | $658,288 |
Long-lived assets | 117,561 | 104,986 | 117,561 | 104,986 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 550,740 | 500,730 | 466,947 | ||||||||
Long-lived assets | 98,135 | 84,321 | 98,135 | 84,321 | |||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 61,844 | 56,298 | 56,794 | ||||||||
Long-lived assets | 8,014 | 6,873 | 8,014 | 6,873 | |||||||
Europe excluding the United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 62,677 | 57,580 | 49,844 | ||||||||
Long-lived assets | 2,102 | 1,873 | 2,102 | 1,873 | |||||||
Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 34,977 | 35,289 | 38,229 | ||||||||
Long-lived assets | 794 | 1,051 | 794 | 1,051 | |||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 30,790 | 31,845 | 30,664 | ||||||||
Long-lived assets | 938 | 1,275 | 938 | 1,275 | |||||||
Asia, Excluding Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 15,830 | 13,860 | 13,765 | ||||||||
Long-lived assets | 7,491 | 9,479 | 7,491 | 9,479 | |||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 3,213 | 2,664 | 2,045 | ||||||||
Long-lived assets | 87 | 114 | 87 | 114 | |||||||
Non United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 209,331 | 197,536 | 191,341 | ||||||||
Long-lived assets | $19,426 | $20,665 | $19,426 | $20,665 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Available-for-sale | $13,187 | $91,461 |
Held-to-maturity | 17,930 | 31,214 |
Trading securities, fair value disclosure | 8,305 | 7,732 |
Total | $39,422 | $130,407 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | $12,648 | $90,560 | |
Available-for-sale securities, unrealized gain | 928 | 1,269 | |
Available-for-sale securities, unrealized loss | -389 | -368 | |
Available-for-sale securities, current | 13,187 | 91,461 | |
Held-to-maturity: | |||
Held-to-maturity securities, total amortized cost | 17,930 | 31,214 | |
Held-to-maturity securities, unrealized gain | 0 | 0 | |
Held-to-maturity securities, unrealized loss | 0 | 0 | |
Held-to-maturity securities, current | 17,930 | 31,214 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Available-for-sale securities, realized gains | 1,484 | 5,550 | 1,671 |
Available-for-sale securities, realized losses | -466 | -1,343 | -1,133 |
Available-for-sale securities, realized gains, net | 1,018 | 4,207 | 538 |
US Treasury and Government [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 0 | 19,693 | |
Available-for-sale securities, unrealized gain | 0 | 8 | |
Available-for-sale securities, unrealized loss | 0 | -3 | |
Available-for-sale securities, fair value disclosure | 0 | 19,698 | |
Corporate Bonds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 0 | 49,913 | |
Available-for-sale securities, unrealized gain | 0 | 22 | |
Available-for-sale securities, unrealized loss | 0 | -124 | |
Available-for-sale securities, fair value disclosure | 0 | 49,811 | |
Foreign obligations [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 0 | 505 | |
Available-for-sale securities, unrealized gain | 0 | 0 | |
Available-for-sale securities, unrealized loss | 0 | -2 | |
Available-for-sale securities, fair value disclosure | 0 | 503 | |
Commercial paper [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 0 | 9,482 | |
Available-for-sale securities, unrealized gain | 0 | 7 | |
Available-for-sale securities, unrealized loss | 0 | 0 | |
Available-for-sale securities, fair value disclosure | 0 | 9,489 | |
Equity securities and exchange-traded funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 11,428 | 8,872 | |
Available-for-sale securities, unrealized gain | 796 | 1,011 | |
Available-for-sale securities, unrealized loss | -289 | -141 | |
Available-for-sale securities, fair value disclosure | 11,935 | 9,742 | |
Mutual funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 1,220 | 2,095 | |
Available-for-sale securities, unrealized gain | 132 | 221 | |
Available-for-sale securities, unrealized loss | -100 | -98 | |
Available-for-sale securities, fair value disclosure | $1,252 | $2,218 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Cost and Fair Value of Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, due in one year or less, amortized cost basis | $0 | $45,486,000 |
Available-for-sale securities, due in one year or less, fair vlaue | 0 | 45,402,000 |
Available for sale securities, due in one to two years, amortized cost basis | 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 and mutual funds, amortized cost basis | 12,648,000 | 10,967,000 |
Available-for-sale securities, equity securities and mutual funds, fair value | 13,187,000 | 11,960,000 |
Available-for-sale securities, amortized cost basis | 12,648,000 | 90,560,000 |
Available-for-sale securities, current | 13,187,000 | 91,461,000 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due in one year, net carrying amount | 17,929,000 | 31,210,000 |
Held-to-maturity securities, due within one year, fair value | 17,929,000 | 31,210,000 |
Held-to-maturity securities, due in one to three years, net carrying amount | 1,000 | 4,000 |
Held-to-maturity securities, due in one to three years, fair value | 1,000 | 4,000 |
Held-to-maturity securities, total amortized cost | 17,930,000 | 31,214,000 |
Held-to-maturity securities, current | 17,930,000 | 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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Unrealized gains (losses), net | ($188) | $827 | $269 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | $8,305 | $7,732 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 8,305 | 7,732 |
Cash equivalents, fair value disclosure | 512 | 925 |
Investments, fair value disclosure | 22,004 | 20,617 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Government obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 11,935 | 9,742 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 1,252 | 2,218 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 0 | 79,501 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 19,698 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 49,811 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 503 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 9,489 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Government obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 8,305 | 7,732 |
Cash equivalents, fair value disclosure | 512 | 925 |
Investments, fair value disclosure | 22,004 | 100,118 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Government obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 19,698 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 49,811 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Foreign obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 503 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 9,489 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 11,935 | 9,742 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $1,252 | $2,218 |
Acquisitions_Goodwill_and_Othe2
Acquisitions, Goodwill, and Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 03, 2014 | 3-May-13 | Apr. 02, 2014 | Mar. 31, 2013 | |
Business Acquisition [Line Items] | |||||||
Equity Method Investments Holding Gain | $5,168,000 | $3,635,000 | $0 | ||||
Goodwill | 370,054,000 | 326,450,000 | 320,845,000 | ||||
Goodwill, Impairment Loss | 0 | 0 | 0 | ||||
Impairment of intangible assets | 0 | 0 | 0 | ||||
HelloWallet [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 9,460,000 | ||||||
Percentage of voting interests acquired | 81.30% | ||||||
Business Combination, Consideration Transferred, Previously Held Ownership Portion | 13,481,000 | ||||||
Acquisition estimated fair value | 54,006,000 | ||||||
Cash paid to acquire the entity | 40,525,000 | ||||||
Deferred tax liability | 3,595,000 | ||||||
Deferred tax asset | 8,646,000 | ||||||
Goodwill | 39,166,000 | ||||||
Business Acquisition, Current Percentage of Voting Interests | 100.00% | ||||||
Business Acquisition, Prior Percentage of Voting Interests | 18.70% | ||||||
Business Combination, Non-Cash Holding Gain (Loss) | 5,168,000 | ||||||
ByAllAccounts, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 8,681,000 | ||||||
Acquisition estimated fair value | 27,949,000 | ||||||
Deferred tax liability | 3,299,000 | ||||||
Deferred tax asset | 3,987,000 | ||||||
Goodwill | 18,476,000 | ||||||
Morningstar Sweden AB [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 9,700,000 | ||||||
Percentage of voting interests acquired | 76.00% | ||||||
Equity method investment, ownership percentage | 100.00% | 24.00% | |||||
Acquisition estimated fair value | 18,513,000 | ||||||
Cash paid to acquire the entity | 14,554,000 | ||||||
Equity method investments, fair value | 3,959,000 | ||||||
Equity Method Investments Holding Gain | 3,635,000 | ||||||
Deferred tax liability | 2,272,000 | ||||||
Goodwill | $8,911,000 |
Acquisitions_Goodwill_and_Othe3
Acquisitions, Goodwill, and Other Intangible Assets (Purchase Price Allocation) (Details) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 03, 2014 | Apr. 02, 2014 | 3-May-13 |
In Thousands, unless otherwise specified | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Goodwill | $370,054 | $326,450 | $320,845 | |||
HelloWallet [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | 3,739 | |||||
Accounts receivable and other current assets | 150 | |||||
Other non-current assets | 318 | |||||
Deferred tax asset | 8,646 | |||||
Intangible assets | 9,460 | |||||
Goodwill | 39,166 | |||||
Deferred revenue | -2,897 | |||||
Deferred tax liability | -3,595 | |||||
Other current and non-current liabilities | -981 | |||||
Acquisition estimated fair value | 54,006 | |||||
ByAllAccounts, Inc. [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | 287 | |||||
Accounts receivable and other current assets | 152 | |||||
Other non-current assets | 257 | |||||
Deferred tax asset | 3,987 | |||||
Intangible assets | 8,681 | |||||
Goodwill | 18,476 | |||||
Deferred revenue | -79 | |||||
Deferred tax liability | -3,299 | |||||
Other current and non-current liabilities | -513 | |||||
Acquisition estimated fair value | 27,949 | |||||
Morningstar Sweden AB [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | 3,472 | |||||
Accounts receivable and other current assets | 519 | |||||
Other non-current assets | 244 | |||||
Intangible assets | 9,700 | |||||
Goodwill | 8,911 | |||||
Deferred revenue | -1,191 | |||||
Deferred tax liability | -2,272 | |||||
Other current and non-current liabilities | -870 | |||||
Acquisition estimated fair value | $18,513 |
Acquisitions_Goodwill_and_Othe4
Acquisitions, Goodwill, and Other Intangible Assets (Allocation of Acquired Intangible Assets) (Details) (USD $) | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 03, 2014 | Apr. 01, 2014 | 3-May-13 | Apr. 02, 2014 |
HelloWallet [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $9,460 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
HelloWallet [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 6,670 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
HelloWallet [Member] | Trademarks and Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 169 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
HelloWallet [Member] | Noncompete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 2,621 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
ByAllAccounts, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 8,681 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years | |||
ByAllAccounts, Inc. [Member] | Customer-Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 5,506 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 24 years | |||
ByAllAccounts, Inc. [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3,020 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 6 months | |||
ByAllAccounts, Inc. [Member] | Trademarks and Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 47 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | |||
ByAllAccounts, Inc. [Member] | Noncompete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 108 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
Morningstar Sweden AB [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 9,700 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |||
Morningstar Sweden AB [Member] | Customer-Related Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $9,700 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |
Acquisitions_Goodwill_and_Othe5
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | 3-May-13 |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $326,450 | $320,845 | |
Foreign currency translation | -14,038 | -3,306 | |
Goodwill, Ending Balance | 370,054 | 326,450 | |
Inquiry Financial Europe AB [Member] | |||
Goodwill [Roll Forward] | |||
Adjustments to Acquisitions | 8,911 | ||
Morningstar Sweden AB [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 8,911 | ||
Adjustments to Acquisitions | 57,642 | ||
Goodwill, Ending Balance | $8,911 |
Acquisitions_Goodwill_and_Othe6
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $263,918 | $253,700 |
Accumulated Amortization | -168,013 | -149,791 |
Net | 95,905 | 103,909 |
Weighted Average Useful Life (years) | 10 years | 10 years |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 29,026 | 29,477 |
Accumulated Amortization | -25,033 | -23,128 |
Net | 3,993 | 6,349 |
Weighted Average Useful Life (years) | 9 years | 9 years |
Customer-Related Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 141,497 | 141,833 |
Accumulated Amortization | -83,582 | -74,311 |
Net | 57,915 | 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 | -120 | -108 |
Net | 120 | 132 |
Weighted Average Useful Life (years) | 20 years | 20 years |
Technology-Based Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 88,816 | 80,489 |
Accumulated Amortization | -57,395 | -50,673 |
Net | 31,421 | 29,816 |
Weighted Average Useful Life (years) | 8 years | 9 years |
Non-Competition Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 4,339 | 1,661 |
Accumulated Amortization | -1,883 | -1,571 |
Net | $2,456 | $90 |
Weighted Average Useful Life (years) | 5 years | 4 years |
Acquisitions_Goodwill_and_Othe7
Acquisitions, Goodwill, and Other Intangible Assets (Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |||
Amortization expense | $22,264 | $21,454 | $23,944 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 21,920 | ||
2016 | 17,394 | ||
2017 | 12,941 | ||
2018 | 10,790 | ||
2019 | 8,046 | ||
Thereafter | $24,814 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | $0 | $0 | $6,193 |
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 0 | 1,005 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $0 | $0 | $5,188 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities (Details) | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | 3-May-13 | Mar. 31, 2013 |
USD ($) | USD ($) | USD ($) | Other Equity Method Investments [Member] | Other Equity Method Investments [Member] | YCharts [Member] | YCharts [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Morningstar Japan KK [Member] | Inquiry Financial Europe AB [Member] | Inquiry Financial Europe AB [Member] | Morningstar Sweden AB [Member] | Morningstar Sweden AB [Member] | |
USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | JPY (¥) | USD ($) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Equity method investments | $3,475 | $6,166 | $23,014 | $21,782 | |||||||||||
Cost method investments | 2,309 | 10,766 | |||||||||||||
Total investments in unconsolidated entities | 28,798 | 38,714 | |||||||||||||
Equity method investment, ownership percentage | 22.00% | 22.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 100.00% | 24.00% | |||||
Holding gain upon acquisition of additional ownership of equity method investment | -5,168 | -3,635 | 0 | -3,635 | |||||||||||
Percentage of voting interests acquired | 76.00% | ||||||||||||||
Equity method investment, approximate market value | 61,277 | 7,347,413 | 94,999 | 9,824,068 | |||||||||||
Cost-method investments, other than temporary impairment | 0 | 0 | |||||||||||||
Equity Method Investment, Other than Temporary Impairment | 1,683 | 0 | |||||||||||||
Payments to Acquire Other Investments | 0 | 2,751 | 10,304 | ||||||||||||
Cost-method Investments, Realized Gain (Loss) | $353 | $0 | ($2,034) |
Property_Equipment_and_Capital2
Property, Equipment, and Capitalized Software (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | $250,494 | $211,152 | |
Less accumulated depreciation | -132,933 | -106,166 | |
Property, equipment, and capitalized software, net | 117,561 | 104,986 | |
Capitalized software development costs not yet placed into service | 18,070 | 11,345 | |
Depreciation expense | 32,622 | 24,239 | 19,152 |
Computer equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 53,420 | 47,830 | |
Capitalized software [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 87,764 | 50,360 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 23,172 | 23,259 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 54,320 | 52,512 | |
Telephone equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 1,948 | 2,032 | |
Construction in progress [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | $29,870 | $35,159 |
Operating_Leases_Operating_Lea1
Operating Leases Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2012 | $19,395 | ||
2013 | 20,299 | ||
2014 | 19,270 | ||
2015 | 16,916 | ||
2016 | 12,632 | ||
Thereafter | 48,203 | ||
Total | 136,715 | ||
Rent expense | 24,460 | 22,169 | 20,736 |
Deferred rent | $29,124 | $26,157 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | 31-May-11 | Dec. 31, 2011 | Nov. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $33,808 | |||
Expected amortization period (months) | 32 years | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 162 | |||
Expected amortization period (months) | 6 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 129 | |||
Expected amortization period (months) | 4 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $33,064 | |||
Expected amortization period (months) | 32 years | |||
2004 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option granted | 86,106 | |||
Fair value per share | $23.81 | |||
2011 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option granted | 6,095 |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares Available for Future Grants) (Details) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares available for future grants | 4,233 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $17,624 | $15,043 | $18,905 |
Income tax benefit related to the stock-based compensation expense | 5,055 | 4,027 | 3,686 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 16,307 | 14,163 | 13,451 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 388 | 388 | 5,013 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 505 | 0 | 0 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $424 | $492 | $441 |
StockBased_Compensation_Unreco
Stock-Based Compensation (Unrecognized Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | $33,808 |
Expected amortization period (months) | 32 years |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | 33,064 |
Expected amortization period (months) | 32 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | 129 |
Expected amortization period (months) | 4 years |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | 453 |
Expected amortization period (months) | 24 years |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | $162 |
Expected amortization period (months) | 6 years |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
RSUs Outstanding, Beginning Balance, Unvested | 680,002 | 727,145 | 741,043 |
RSUs Outstanding, Beginning Balance, Vested but Deferred | 16,682 | 18,782 | 20,076 |
RSUs Outstanding, Beginning Balance | 696,684 | 745,927 | 761,119 |
RSUs Outstanding, Beginning Balance, Weighted Average Grant Date Value per RSU | $62.02 | $53.37 | $50.66 |
Granted, Unvested | 279,524 | 287,848 | 341,282 |
Granted, Vested but Deferred | 0 | 0 | 0 |
Granted | 279,524 | 287,848 | 341,282 |
Granted, Weighted Average Grant Date Value per RSU | $72.68 | $72.04 | $56.26 |
Dividend equivalents, Unvested | 2,621 | 2,773 | 6,405 |
Dividends equivalents, Vested but Deferred | 150 | 157 | 130 |
Dividends equivalents | 2,771 | 2,930 | 6,535 |
Dividends equivalents, Weighted Average Grant Date Value per RSU | $55.70 | $57.39 | $52.02 |
Vested, Unvested | -268,115 | -278,549 | -270,695 |
Vested, Vested but Deferred | 0 | 0 | 0 |
Vested | -268,115 | -278,549 | -270,695 |
Vested, Weighted Average Grant Date Value per RSU | $58.91 | $50.41 | $50.12 |
Vested but Deferred, Unvested | -892 | ||
Vested but Deferred, Vested but Deferred | 892 | ||
Vested but Deferred | 0 | ||
Vested but Deferred, Weighted Average Grant Date Value per RSU | $0 | ||
Issued, Unvested | 0 | 0 | 0 |
Issued, Vested but Deferred | -2,054 | -2,257 | -2,316 |
Issued | -2,054 | -2,257 | -2,316 |
Issued, Weighted Average Grant Date Value per RSU | $53.54 | $49.40 | $73.28 |
Forfeited, Unvested | -38,098 | -59,215 | -89,998 |
Forfeited, Vested but Deferred | 0 | 0 | 0 |
Forfeited | -38,098 | -59,215 | -89,998 |
Forfeited, Weighted Average Grant Date Value per RSU | $65.21 | $57.58 | $50.84 |
RSUs Outstanding, Ending Balance, Unvested | 655,934 | 680,002 | 727,145 |
RSUs Outstanding, Ending Balance, Vested but Deferred | 14,778 | 16,682 | 18,782 |
RSUs Outstanding, Ending Balance | 670,712 | 696,684 | 745,927 |
RSUs Outstanding, Ending Balance, Weighted Average Grant Date Value per RSU | $67.51 | $62.02 | $53.37 |
StockBased_Compensation_Assump
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) (Employee Stock Option [Member]) | 12 Months Ended |
Dec. 31, 2011 | |
Employee Stock Option [Member] | |
Assumptions for Black-Scholes Option Pricing Model [Line Items] | |
Expected life (years): | 7 years 4 months 24 days |
Volatility factor: | 35.10% |
Dividends yield: | 0.35% |
Interest rate: | 2.87% |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 |
Option Exercise Price Grouping [Member] | ||||
Intrinsic Value of Options Exercised [Abstract] | ||||
Intrinsic value of options exercised | $12,021 | $12,801 | $22,526 | |
Options Granted At Discount [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Beginning Balance, Options, Outstanding, Underlying Shares | 179,559 | 282,695 | 398,859 | |
Granted, Underlying Shares | 0 | 0 | 0 | |
Canceled, Underlying Shares | -150 | -250 | -650 | |
Exercised, Underlying Shares | -179,409 | -102,886 | -115,514 | |
Ending Balance, Options, Outstanding, Underlying Shares | 0 | 179,559 | 282,695 | |
Options, Weighted Average Exercise Price [Abstract] | ||||
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $21.47 | $20.55 | $19.72 | |
Granted, Weighted Average Exercise Price | $0 | $0 | $0 | |
Canceled, Weighted Average Exercise Price | $22.24 | $21.48 | $14.70 | |
Exercised, Weighted Average Exercise Price | $22.08 | $21.09 | $20.19 | |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $0 | $21.47 | $20.55 | |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ||||
Options exercisable - end of year, Underlying Shares | 0 | 179,559 | 282,695 | |
Options exercisable - end of year, Weighted Average Exercise Price | $0 | $21.47 | $20.55 | |
Option Grants Excluding Options Granted At Discount [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Beginning Balance, Options, Outstanding, Underlying Shares | 253,972 | 391,784 | 818,552 | |
Granted, Underlying Shares | 0 | 0 | 0 | |
Canceled, Underlying Shares | -526 | -1,352 | -22,330 | |
Exercised, Underlying Shares | -83,636 | -136,460 | -404,438 | |
Ending Balance, Options, Outstanding, Underlying Shares | 169,810 | 253,972 | 391,784 | |
Options, Weighted Average Exercise Price [Abstract] | ||||
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $36.48 | $28.98 | $22.76 | |
Granted, Weighted Average Exercise Price | $0 | $0 | $0 | |
Canceled, Weighted Average Exercise Price | $38.61 | $16.19 | $39.75 | |
Exercised, Weighted Average Exercise Price | $30.82 | $16.84 | $16.60 | |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $40.20 | $36.48 | $28.98 | |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ||||
Options exercisable - end of year, Underlying Shares | 154,864 | 219,449 | 337,684 | |
Options exercisable - end of year, Weighted Average Exercise Price | $38.53 | $33.18 | $24.42 |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information on Options) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Closing Stock Price Used to Calculate Intrinsic Value | $64.71 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $27.54 |
Exercise price range, lower range limit | $27.54 |
Exercise price range, upper range limit | $27.54 |
Options Outstanding, Number of Options | 96,354 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 0 years 4 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $27.54 |
Options Outstanding, Aggregate Intrinsic Value | $3,582 |
Options Exercisable, Exercisable Shares | 96,354 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 0 years 4 months 2 days |
Options Exercisable, Weighted Average Exercise Price | $27.54 |
Options Exercisable, Aggregate Intrinsic Value | 3,582 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $40.49 - $51.03 |
Exercise price range, lower range limit | $40.49 |
Exercise price range, upper range limit | $51.03 |
Options Outstanding, Number of Options | 5,781 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 0 years 10 months 28 days |
Options Outstanding, Weighted Average Exercise Price | $49.10 |
Options Outstanding, Aggregate Intrinsic Value | 90 |
Options Exercisable, Exercisable Shares | 5,781 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 0 years 10 months 28 days |
Options Exercisable, Weighted Average Exercise Price | $49.10 |
Options Exercisable, Aggregate Intrinsic Value | 90 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $57.28 - $59.35 |
Exercise price range, lower range limit | $57.28 |
Exercise price range, upper range limit | $59.35 |
Options Outstanding, Number of Options | 67,675 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 6 years 6 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $57.47 |
Options Outstanding, Aggregate Intrinsic Value | 490 |
Options Exercisable, Exercisable Shares | 52,729 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 6 months 4 days |
Options Exercisable, Weighted Average Exercise Price | $57.46 |
Options Exercisable, Aggregate Intrinsic Value | 358 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $27.54 - $59.35 |
Exercise price range, lower range limit | $27.54 |
Exercise price range, upper range limit | $59.35 |
Options Outstanding, Number of Options | 169,810 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 2 years 9 months 26 days |
Options Outstanding, Weighted Average Exercise Price | $40.20 |
Options Outstanding, Aggregate Intrinsic Value | 4,162 |
Options Exercisable, Exercisable Shares | 154,864 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 2 years 5 months 16 days |
Options Exercisable, Weighted Average Exercise Price | $38.53 |
Options Exercisable, Aggregate Intrinsic Value | 4,030 |
Vested or Expected to Vest [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $27.54 |
Exercise price range, upper range limit | $59.35 |
Share Based Compensation, Arrangement By Share Based Payments, Vested or Expected to Vest, Range of Exercise Prices | $27.54 - $59.35 |
Option Outstanding, Number of Options, Vested or Expected to Vest | 169,810 |
Options Outstanding, Weighted Average Remaining Contractual Life (years), Vested or Expected to vest | 2 years 9 months 26 days |
Options Outstanding, Weighted Average Exercise Price, Vested or Expected to Vest | $40.20 |
Options Outstanding, Average Intrinsic Value, Vested or Expected to Vest | $4,162 |
StockBased_Compensation_Excess
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Excess tax benefits related to stock-based compensation | $4,449 | $5,898 | $7,210 |
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | $17,624 | $15,043 | $18,905 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | 7,774 | 6,870 | 6,416 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | 2,170 | 1,975 | 1,937 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | $7,680 | $6,198 | $10,552 |
StockBased_Compensation_StockB1
Stock-Based Compensation Stock-Based Compensation (Performance Shares) (Details) (Performance Shares [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Unvested | 23,685 |
Granted, Weighted Average Grant Date Value per RSU | $80.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Shares Issued Based Upon Current Performance Levels | 11,842.50 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $453,000 |
Defined_Contribution_Plan_Deta
Defined Contribution Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Contribution Plan [Abstract] | |||
401(k) matching contributions | $7,451,000 | $6,879,000 | $6,642,000 |
Matching contribution to 401(k) for every dollar | $0.75 | $0.75 | $0.75 |
Matching contribution percent to employee's contribution in pay period | 7.00% | 7.00% | 7.00% |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense and Effective Tax Rate) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $48,420 | $44,963 | ($18,882) | $39,397 | $44,426 | $45,384 | $46,695 | $41,505 | $113,898 | $178,010 | $153,625 |
Equity in net income of unconsolidated entities | -1,394 | 337 | 497 | 599 | 256 | 315 | 360 | 497 | 39 | 1,428 | 2,027 |
Net (income) loss attributable to the noncontrolling interest | -22 | 29 | 5 | 30 | 29 | 29 | 21 | 43 | 42 | 122 | 117 |
Income loss from continuing operations before income taxes domestic and foreign | 113,979 | 179,560 | 155,769 | ||||||||
Income tax expense | $15,490 | $15,149 | ($8,611) | $13,650 | $13,384 | $14,265 | $15,955 | $12,427 | $35,678 | $56,031 | $52,878 |
Effective income tax rate | 31.30% | 31.20% | 33.90% |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Examination [Line Items] | |||||||||||
Income tax expense at U.S. federal rate | $39,893 | $62,845 | $54,519 | ||||||||
Income tax expense at U.S. federal rate, percent | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of frderal income tax benefit | 2,129 | 3,029 | 1,510 | ||||||||
State income taxes, net of frderal income tax benefit, percent | 1.90% | 1.70% | 1.00% | ||||||||
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | -1,397 | 0 | 0 | ||||||||
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Percent | -1.20% | 0.00% | 0.00% | ||||||||
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses | -600 | -1,842 | -630 | ||||||||
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses, percent | -0.50% | -1.00% | -0.40% | ||||||||
Difference between U.S. federal statutory and foreign tax rates | -3,961 | -2,513 | -2,777 | ||||||||
Difference between U.S. federal statutory and foreign tax rates, percent | -3.50% | -1.40% | -1.80% | ||||||||
Change in unrecognized tax benefits | 1,481 | -211 | 967 | ||||||||
Changes in unrecognized tax benefits, percent | 1.30% | -0.10% | 0.60% | ||||||||
Other tax credits | -2,924 | -4,374 | -1,494 | ||||||||
Other tax credits, percent | -2.60% | -2.50% | -1.00% | ||||||||
Recognition of deferred tax assets | -140 | -1,448 | 0 | ||||||||
Recognition of deferred tax assets, percent | -0.10% | -0.80% | 0.00% | ||||||||
Other - net | 1,197 | 545 | 783 | ||||||||
Other - net, percent | 1.00% | 0.30% | 0.50% | ||||||||
Income tax expense | $15,490 | $15,149 | ($8,611) | $13,650 | $13,384 | $14,265 | $15,955 | $12,427 | $35,678 | $56,031 | $52,878 |
Incomr tax expense, percent | 31.30% | 31.20% | 33.90% |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Federal | $20,726 | $42,808 | $38,821 | ||||||||
State | 1,996 | 3,882 | 1,997 | ||||||||
Non-U.S. | 9,638 | 10,456 | 5,719 | ||||||||
Current tax expense | 32,360 | 57,146 | 46,537 | ||||||||
Federal | 3,668 | 2,630 | 6,287 | ||||||||
State | 1,326 | 814 | 334 | ||||||||
Non-U.S. | -1,676 | -4,559 | -280 | ||||||||
Deferred tax expense (benefit) | 3,318 | -1,115 | 6,341 | ||||||||
Income tax expense | $15,490 | $15,149 | ($8,611) | $13,650 | $13,384 | $14,265 | $15,955 | $12,427 | $35,678 | $56,031 | $52,878 |
Income_Taxes_Schedule_of_Incom1
Income Taxes (Schedule of Income before Income Taxes and Equity in Net Income of Unconsolidated Entities) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $80,394 | $144,065 | $128,920 | ||||||||
Non-U.S. | 33,504 | 33,945 | 24,705 | ||||||||
Income before income taxes and equity in net income of unconsolidated entities | $48,420 | $44,963 | ($18,882) | $39,397 | $44,426 | $45,384 | $46,695 | $41,505 | $113,898 | $178,010 | $153,625 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Stock-based compensation expense | $3,262 | $3,479 |
Accrued liabilities | 13,632 | 9,805 |
Net operating loss carryforwards - U.S. | 10,505 | 851 |
Net operating loss carryforwards - Non-U.S. | 7,725 | 9,229 |
Deferred royalty revenue | 354 | 366 |
Allowance for doubtful accounts | 929 | 758 |
Deferred rent | 10,019 | 8,673 |
Total deferred tax assets | 46,426 | 33,161 |
Deferred tax liabilities: | ||
Acquired intangible assets | -16,419 | -12,967 |
Property, equipment and capitalized software | -23,157 | -15,525 |
Unrealized exchange gains, net | -174 | -395 |
Prepaid expenses | -3,677 | -4,299 |
Investments in unconsolidated entities | -12,836 | -12,009 |
Other | -435 | -373 |
Total deferred tax liabilities | -56,698 | -45,568 |
Net deferred tax liability before valuation allowance | 10,272 | 12,407 |
Valuation allowance | -6,706 | -7,456 |
Net deferred tax liability | ($16,978) | ($19,863) |
Income_Taxes_Schedule_of_Defer1
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net - current | $9,000 | $3,892 |
Deferred tax liabilities, net - noncurrent | -25,978 | -23,755 |
Net deferred tax liability | ($16,978) | ($19,863) |
Income_Taxes_Summary_of_Operat
Income Taxes (Summary of Operating Loss Carryforward- U.S and Non-U.S) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Undistributed earnings of foreigh subsidiaries, permanently invested | $118,600,000 | |
Non-U.S. [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 45,368,000 | 37,868,000 |
Operating loss carryforwards, not subject to valuation allowances | 8,759,000 | 5,127,000 |
Non-U.S. [Member] | Subject to Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 5,314,000 | 5,240,000 |
Non-U.S. [Member] | No Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 40,054,000 | 32,628,000 |
U.S [Member] | Subject to Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $2,136,000 | $30,015,000 |
Operating loss carryforwards, expiration dates | 31-Dec-23 |
Income_Taxes_Accounting_for_Un
Income Taxes (Accounting for Uncertainty in Tax Positions) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits - beginning of the year | $12,958,000 | $12,699,000 |
Increases as a resulting of tax positions taken during a prior-year period | 866,000 | 791,000 |
Decreases as a resulting of tax positions taked during a prior-year period | -54,000 | -146,000 |
Increases as a result of tax positions taken during the current period | 2,007,000 | 2,887,000 |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | -2,400,000 | -2,779,000 |
Decrease of unrecognized tax benefits relating to settlements with tax authorities | 1,455,000 | |
Reductions as a result of lapse of the applicable statute of limitations | -1,455,000 | -494,000 |
Gross unrecognized tax benefits - end of the year | 11,922,000 | 12,958,000 |
Unrecognized tax benefits included in current liabilities | 5,124,000 | |
Unrecognized tax benefits included in non-current liabilities | 6,608,000 | |
Result of tax position taken during period | 2,818,000 | |
Increase in income tax expense | 2,572,000 | |
Reductions resulting from settlements and lapse of statute of limitations | 3,855,000 | |
Unrecognized tax benefits that would impact effective tax rate | 11,922,000 | |
Unrecognized tax benefits, period increase (decrease) | 2,818,000 | |
Reductions resulting from settlements and lapse statute of limitations, tax effect | 1,269,000 | |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $10,565,000 |
Income_Taxes_Summary_of_Income
Income Taxes (Summary of Income Tax Examinations) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Liabilities for interest and penalties | $1,488 | $1,865 |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | Dec. 31, 2014 |
Equity [Abstract] | |
Shares repurchased, program life to date, shares | 8,142,010 |
Shares repurchased, program life to date, value | $526,500,000 |
Stock repurchase program, authorized amount | 700,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $173,500,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2015 | |
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share | $0.19 | $0.17 | $0.17 | $0.17 | $0.30 | $0 | $0.13 | $0.13 | $0.70 | $0.55 | $0.43 | |
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share | $0.19 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $196,415 | $193,106 | $189,385 | $181,165 | $180,500 | $173,482 | $175,428 | $168,856 | $760,071 | $698,266 | $658,288 |
Total operating expense | 149,834 | 147,845 | 214,165 | 142,633 | 138,603 | 128,869 | 131,844 | 128,296 | 654,477 | 527,612 | 507,620 |
Operating income | 46,581 | 45,261 | -24,780 | 38,532 | 41,897 | 44,613 | 43,584 | 40,560 | 105,594 | 170,654 | 150,668 |
Non-operating income (expense), net | 1,839 | -298 | 5,898 | 865 | 2,529 | 771 | 3,111 | 945 | 8,304 | 7,356 | 2,957 |
Income before income taxes and equity in net income of unconsolidated entities | 48,420 | 44,963 | -18,882 | 39,397 | 44,426 | 45,384 | 46,695 | 41,505 | 113,898 | 178,010 | 153,625 |
Equity in net income (loss) of unconsolidated entities | -1,394 | 337 | 497 | 599 | 256 | 315 | 360 | 497 | 39 | 1,428 | 2,027 |
Income tax expense | 15,490 | 15,149 | -8,611 | 13,650 | 13,384 | 14,265 | 15,955 | 12,427 | 35,678 | 56,031 | 52,878 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 31,536 | 30,151 | -9,774 | 26,346 | 31,298 | 31,434 | 31,100 | 29,575 | 78,259 | 123,407 | 102,774 |
Consolidated net income | 78,259 | 123,407 | 107,962 | ||||||||
Net (income) loss attributable to the noncontrolling interest | -22 | 29 | 5 | 30 | 29 | 29 | 21 | 43 | 42 | 122 | 117 |
Net income attributable to Morningstar, Inc. | $31,514 | $30,180 | ($9,769) | $26,376 | $31,327 | $31,463 | $31,121 | $29,618 | $78,301 | $123,529 | $108,079 |
Income (Loss) from Continuing Operations, Per Basic Share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1.75 | $2.68 | $2.12 |
Earnings Per Share, Basic [Abstract] | |||||||||||
Basic net income per share attributable to Morningstar, Inc. | $1.75 | $2.68 | $2.23 | ||||||||
Weighted average common shares outstanding - basic | 44,414 | 44,734 | 44,777 | 44,777 | 45,756 | 46,080 | 46,400 | 46,406 | 44,675 | 46,158 | 48,497 |
Income (Loss) from Continuing Operations, Per Diluted Share | $0.71 | $0.67 | ($0.22) | $0.58 | $0.68 | $0.68 | $0.66 | $0.63 | $1.74 | $2.66 | $2.10 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Diluted net income per share attributable to Morningstar, Inc. | $1.74 | $2.66 | $2.20 | ||||||||
Weighted average common shares outstanding - diluted | 44,548 | 44,889 | 44,777 | 45,093 | 46,211 | 46,519 | 46,853 | 46,814 | 44,901 | 46,491 | 49,148 |
Dividends Per Common Share: [Abstract] | |||||||||||
Common stock, dividends, per share, declared | $0.19 | $0.17 | $0.17 | $0.17 | $0.30 | $0 | $0.13 | $0.13 | $0.70 | $0.55 | $0.43 |
Dividends paid per common share | $0.17 | $0.17 | $0.17 | $0.17 | $0.13 | $0.13 | $0.13 | $0 | $0.68 | $0.38 | $0.53 |