Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
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-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 44,400,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | $189.80 | $181.20 |
Operating expense: | ||
Cost of revenue | 78.7 | 75.8 |
Sales and marketing | 25.4 | 28.4 |
General and administrative | 26.1 | 26.1 |
Depreciation and amortization | 15.1 | 12.4 |
Total operating expense | 145.3 | 142.7 |
Operating income (loss) | 44.5 | 38.5 |
Non-operating income (expense): | ||
Interest income (expense), net | 0.2 | 0.6 |
Other income (expense), net | -0.6 | 0.3 |
Non-operating income (expense), net | -0.4 | 0.9 |
Income before income taxes and equity in net income of unconsolidated entities | 44.1 | 39.4 |
Equity in net income of unconsolidated entities | 0.5 | 0.6 |
Income tax expense | 14.8 | 13.7 |
Consolidated net income | 29.8 | 26.3 |
Net (income) loss attributable to the noncontrolling interest | -0.1 | 0.1 |
Net income attributable to Morningstar, Inc. | $29.70 | $26.40 |
Net income per share attributable to: | ||
Basic (in dollars per share) | $0.67 | $0.59 |
Diluted (in dollars per share) | $0.67 | $0.58 |
Dividends declared per common share | $0.19 | $0.17 |
Dividends paid per common share | $0.19 | $0.17 |
Weighted average shares outstanding: | ||
Basic (in shares) | 44.3 | 44.8 |
Diluted (in shares) | 44.5 | 45.1 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated net income | $29.80 | $26.30 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | -19.8 | 2.5 |
Unrealized gains (losses) on securities, net of tax: | ||
Unrealized holding gains arising during period | 0.1 | 0.1 |
Reclassification of (gains) losses included in net income | 0 | 0 |
Other comprehensive income (loss) | -19.7 | 2.6 |
Comprehensive income | 10.1 | 28.9 |
Comprehensive (income) loss attributable to noncontrolling interest | -0.1 | 0.1 |
Comprehensive income attributable to Morningstar, Inc. | $10 | $29 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $204.60 | $185.20 |
Investments | 38.6 | 39.4 |
Accounts receivable, less allowance of $1.7 and $1.5, respectively | 142.2 | 136.7 |
Deferred tax asset, net | 10.8 | 9 |
Income tax receivable, net | 0 | 6.9 |
Other | 22.3 | 22.6 |
Total current assets | 418.5 | 399.8 |
Property, equipment, and capitalized software, net | 121.4 | 117.6 |
Investments in unconsolidated entities | 29.3 | 28.8 |
Goodwill | 359.8 | 370.1 |
Intangible assets, net | 87.9 | 95.9 |
Other assets | 8.9 | 7.1 |
Total assets | 1,025.80 | 1,019.30 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 35.8 | 34.3 |
Accrued compensation | 41.3 | 80.5 |
Deferred revenue | 160.2 | 146 |
Short-term debt | 45 | 30 |
Income tax payable | 6.1 | 0 |
Other | 4.8 | 3 |
Total current liabilities | 293.2 | 293.8 |
Accrued compensation | 8.1 | 7.9 |
Deferred tax liability, net | 26.3 | 26 |
Deferred rent | 26.2 | 26.4 |
Other long-term liabilities | 11 | 10.8 |
Total liabilities | 364.8 | 364.9 |
Morningstar, Inc. shareholders' equity: | ||
Common stock, no par value, 200,000,000 shares authorized, of which 44,395,391 and 44,345,763 shares were outstanding as of March 31, 2015 and December 31, 2014, respectively | 0 | 0 |
Treasury stock at cost, 8,289,240 shares as of March 31, 2015 and 8,257,214 shares as of December 31, 2014 | -526.6 | -524.3 |
Additional paid-in capital | 568.3 | 561.1 |
Retained earnings | 662.8 | 641.5 |
Accumulated other comprehensive income (loss): | ||
Currency translation adjustment | -44.9 | -25.1 |
Unrealized gain on available-for-sale securities | 0.4 | 0.3 |
Total accumulated other comprehensive income (loss) | -44.5 | -24.8 |
Total Morningstar, Inc. shareholders' equity | 660 | 653.5 |
Noncontrolling interest | 1 | 0.9 |
Total equity | 661 | 654.4 |
Total liabilities and equity | $1,025.80 | $1,019.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $1.70 | $1.50 |
Common Stock, No Par Value | $0 | $0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 44,395,391 | 44,345,763 |
Treasury Stock, Shares | 8,289,240 | 8,257,214 |
Condensed_Consolidated_Stateme2
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 Millions, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2014 | $654.40 | $0 | ($524.30) | $561.10 | $641.50 | ($24.80) | $0.90 |
Balance (in shares) at Dec. 31, 2014 | 44,345,763 | 44,345,763 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 29.8 | 29.7 | 0.1 | ||||
Other comprehensive income (loss): | |||||||
Unrealized gain on available-for-sale investments, net of income tax of $0.1 | 0.1 | 0.1 | 0 | ||||
Reclassification of adjustments for losses included in net income, net of income tax of $0 | 0 | 0 | 0 | ||||
Foreign currency translation adjustment, net | -19.8 | -19.8 | 0 | ||||
Other comprehensive income (loss) | -19.7 | -19.7 | 0 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 1.8 | 0 | 0 | 1.8 | |||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 81,654 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | |||||||
Stock-based compensation - restricted stock units | 4.3 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4.3 | ||||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 1.1 | 1.1 | |||||
Common share repurchased | -2.3 | -2.3 | |||||
Common share repurchased (in shares) | -32,026 | ||||||
Dividends declared - common shares outstanding | -8.4 | -8.4 | |||||
Dividends declared - restricted stock units | 0 | 0 | 0 | ||||
Balance at Mar. 31, 2015 | $661 | $0 | ($526.60) | $568.30 | $662.80 | ($44.50) | $1 |
Balance (in shares) at Mar. 31, 2015 | 44,395,391 | 44,395,391 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Equity (Parenthetical) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $0.10 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $0 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Consolidated net income | $29.80 | $26.30 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | ||
Depreciation and amortization | 15.1 | 12.4 |
Deferred income taxes | -1.6 | -2.3 |
Stock-based compensation expense | 4.3 | 3.9 |
Provision for (recoveries of) bad debts | 0.3 | -0.3 |
Equity in net income of unconsolidated entities | -0.5 | -0.6 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | -1.1 | -0.6 |
Other, net | 0.6 | -0.2 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | -8.6 | -16.8 |
Other assets | -0.5 | -3.3 |
Accounts payable and accrued liabilities | 2.2 | 4.5 |
Accrued compensation | -36.4 | -27.4 |
Income taxes- current | 13.9 | 7.2 |
Deferred revenue | 17.4 | 10.2 |
Deferred rent | 0.1 | -0.5 |
Other liabilities | 0 | -0.6 |
Cash provided by operating activities | 35 | 11.9 |
Investing activities | ||
Purchases of investments | -5.5 | -1.7 |
Proceeds from maturities and sales of investments | 5.9 | 73.7 |
Capital expenditures | -14.4 | -20.8 |
Other, net | -0.1 | 0.2 |
Cash used for investing activities | -14.1 | 51.4 |
Financing activities | ||
Common shares repurchased | -2.3 | -21.7 |
Dividends paid | -8.4 | -7.6 |
Proceeds from short-term debt | 15 | 0 |
Proceeds from stock-option exercises, net | 1.8 | 1.3 |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 1.1 | 0.6 |
Other, net | -0.2 | -0.1 |
Cash provided by (used for) financing activities | 7 | -27.5 |
Effect of exchange rate changes on cash and cash equivalents | -8.5 | 0.6 |
Net increase (decrease) in cash and cash equivalents | 19.4 | 36.4 |
Cash and cash equivalents-beginning of period | 185.2 | 168.2 |
Cash and cash equivalents-end of period | 204.6 | 204.6 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 2.5 | 8.8 |
Supplemental information of non-cash investing and financing activities: | ||
Unrealized gain (loss) on available-for-sale investments | 0.2 | 0.2 |
Equipment obtained under long-term financing arrangement | $1.30 | $0 |
Basis_of_Presentation_of_Inter
Basis of Presentation of Interim Financial Information | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation of Interim Financial Information | Basis of Presentation of Interim Financial Information |
The accompanying condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015. | |
The acronyms that appear in the Notes to our Unaudited Condensed Consolidated Financial Statements refer to the following: | |
ASC: Accounting Standards Codification | |
ASU: Accounting Standards Update | |
FASB: Financial Accounting Standards Board | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
We discuss our significant accounting policies in Note 3 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015. | |
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Credit_Arrangements_Notes
Credit Arrangements (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements |
In July 2014, the company entered into a one year, $75.0 million, single-bank revolving credit facility. The company drew $15.0 million on the credit facility during the first quarter of 2015 and had an outstanding principal balance of $45.0 million at an interest rate of LIBOR plus 100 basis points as of March 31, 2015, leaving borrowing availability of $30.0 million. |
Acquisitions_Goodwill_and_Othe
Acquisitions, Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill, and Other Intangible Assets | ||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
In the first quarter of 2015, we finalized the purchase price allocation related to our 2014 acquisitions of ByAllAccounts, Inc. and HelloWallet Holdings, Inc. As a result, there were no adjustments to the balances reported as of December 31, 2014. | |||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||
The following table shows the changes in our goodwill balances from December 31, 2014 to March 31, 2015: | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 370.1 | |||||||||||||||||||||||||||
Foreign currency translation | (10.3 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 359.8 | |||||||||||||||||||||||||||
We did not record any impairment losses in the first three months of 2015 or 2014. We perform our annual impairment reviews in the fourth quarter. | |||||||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||||||
The following table summarizes our intangible assets: | |||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||
(in millions) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 28.6 | $ | (25.2 | ) | $ | 3.4 | 9 | $ | 29 | $ | (25.0 | ) | $ | 4 | 9 | |||||||||||||
Customer-related assets | 137.5 | (84.5 | ) | 53 | 12 | 141.5 | (83.6 | ) | 57.9 | 12 | |||||||||||||||||||
Supplier relationships | 0.2 | (0.1 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | |||||||||||||||||||
Technology-based assets | 87.8 | (58.7 | ) | 29.1 | 8 | 88.8 | (57.4 | ) | 31.4 | 8 | |||||||||||||||||||
Non-competition agreement | 4.3 | (2.0 | ) | 2.3 | 5 | 4.4 | (1.9 | ) | 2.5 | 5 | |||||||||||||||||||
Total intangible assets | $ | 258.4 | $ | (170.5 | ) | $ | 87.9 | 10 | $ | 263.9 | $ | (168.0 | ) | $ | 95.9 | 10 | |||||||||||||
The following table summarizes our amortization expense related to intangible assets: | |||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||
Amortization expense | $ | 5.5 | $ | 5.1 | |||||||||||||||||||||||||
We amortize intangible assets using the straight-line method over their expected economic useful lives. | |||||||||||||||||||||||||||||
We expect intangible amortization expense for the remainder of 2015 and subsequent years as follows: | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Remainder of 2015 (from April 1 through December 31) | $ | 16 | |||||||||||||||||||||||||||
2016 | 17 | ||||||||||||||||||||||||||||
2017 | 12.7 | ||||||||||||||||||||||||||||
2018 | 10.5 | ||||||||||||||||||||||||||||
2019 | 7.8 | ||||||||||||||||||||||||||||
Thereafter | 23.9 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Income_Per_Share
Income Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Income Per Share | Income Per Share | ||||||||
The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | |||||||||
Three months ended March 31 | |||||||||
(in millions, except per share amounts) | 2015 | 2014 | |||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||
Net income attributable to Morningstar, Inc.: | $ | 29.7 | $ | 26.4 | |||||
Less: Distributed earnings available to participating securities | — | — | |||||||
Less: Undistributed earnings available to participating securities | — | — | |||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Weighted average common shares outstanding | 44.3 | 44.8 | |||||||
Basic net income per share attributable to Morningstar, Inc. | $ | 0.67 | $ | 0.59 | |||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Add: Undistributed earnings allocated to participating securities | — | — | |||||||
Less: Undistributed earnings reallocated to participating securities | — | — | |||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Weighted average common shares outstanding | 44.3 | 44.8 | |||||||
Net effect of dilutive stock options, restricted stock units, and performance share awards | 0.2 | 0.3 | |||||||
Weighted average common shares outstanding for computing diluted income per share | 44.5 | 45.1 | |||||||
Diluted net income per share attributable to Morningstar, Inc. | $ | 0.67 | $ | 0.58 | |||||
The following table shows the number of restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | |||||||||
Three months ended March 31 | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Weighted average restricted stock units | 32 | 6 | |||||||
Weighted average performance share awards | 18 | 9 | |||||||
Total | 50 | 15 | |||||||
Stock options and restricted stock could be included in the calculation in the future. |
Segment_and_Geographical_Area_
Segment and Geographical Area Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment and Geographical Area Information | Segment and Geographical Area Information | ||||||||
Segment Information | |||||||||
We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. | |||||||||
Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | |||||||||
The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2014. We evaluate the performance of our reporting segment based on revenue and operating income. | |||||||||
Geographical Area Information | |||||||||
The tables below summarize our revenue and long-lived assets by geographical area: | |||||||||
External revenue by geographical area | |||||||||
Three months ended March 31 | |||||||||
(in millions) | 2015 | 2014 | |||||||
United States | $ | 140.9 | $ | 130 | |||||
United Kingdom | 14.6 | 15.3 | |||||||
Continental Europe | 14.3 | 15.6 | |||||||
Australia | 7.7 | 8.2 | |||||||
Canada | 7 | 7.7 | |||||||
Asia | 4.4 | 3.7 | |||||||
Other | 0.9 | 0.7 | |||||||
Total International | 48.9 | 51.2 | |||||||
Consolidated revenue | $ | 189.8 | $ | 181.2 | |||||
Long-lived assets by geographical area | |||||||||
As of March 31 | As of December 31 | ||||||||
(in millions) | 2015 | 2014 | |||||||
United States | $ | 102.7 | $ | 98.1 | |||||
United Kingdom | 8.4 | 8.1 | |||||||
Continental Europe | 1.8 | 2.1 | |||||||
Australia | 0.7 | 0.8 | |||||||
Canada | 0.8 | 0.9 | |||||||
Asia | 6.9 | 7.5 | |||||||
Other | 0.1 | 0.1 | |||||||
Total International | 18.7 | 19.5 | |||||||
Consolidated property, equipment, and capitalized software, net | $ | 121.4 | $ | 117.6 | |||||
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
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 securities. 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 March 31 | As of December 31 | ||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 13.4 | $ | 13.2 | |||||||||||||||||||||||||||||
Held-to-maturity | 16.8 | 17.9 | |||||||||||||||||||||||||||||||
Trading securities | 8.4 | 8.3 | |||||||||||||||||||||||||||||||
Total | $ | 38.6 | $ | 39.4 | |||||||||||||||||||||||||||||
The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity: | |||||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 11.5 | $ | 0.9 | $ | (0.3 | ) | $ | 12.1 | $ | 11.4 | $ | 0.8 | $ | (0.3 | ) | $ | 11.9 | |||||||||||||||
Mutual funds | 1.2 | 0.2 | (0.1 | ) | 1.3 | 1.2 | 0.2 | (0.1 | ) | 1.3 | |||||||||||||||||||||||
Total | $ | 12.7 | $ | 1.1 | $ | (0.4 | ) | $ | 13.4 | $ | 12.6 | $ | 1 | $ | (0.4 | ) | $ | 13.2 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 16.8 | $ | — | $ | — | $ | 16.8 | $ | 17.9 | $ | — | $ | — | $ | 17.9 | |||||||||||||||||
As of March 31, 2015 and December 31, 2014, investments with unrealized losses for greater than a 12-month period were not material to the Condensed Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. | |||||||||||||||||||||||||||||||||
The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of March 31, 2015 and December 31, 2014. 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 March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||||||
(in millions) | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | $ | 12.7 | $ | 13.4 | $ | 12.6 | $ | 13.2 | |||||||||||||||||||||||||
Total | $ | 12.7 | $ | 13.4 | $ | 12.6 | $ | 13.2 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 16.8 | $ | 16.8 | $ | 17.9 | $ | 17.9 | |||||||||||||||||||||||||
Due in one to three years | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 16.8 | $ | 16.8 | $ | 17.9 | $ | 17.9 | |||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, 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 Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Realized gains | $ | 0.2 | $ | 0.2 | |||||||||||||||||||||||||||||
Realized losses | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||||||||||
Realized gains (losses), net | $ | — | $ | — | |||||||||||||||||||||||||||||
We determine realized gains and losses using the specific identification method. | |||||||||||||||||||||||||||||||||
The following table shows the net unrealized gains on trading securities as recorded in our Condensed Consolidated Statements of Income: | |||||||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Unrealized gains, net | $ | 0.1 | $ | 0.1 | |||||||||||||||||||||||||||||
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 March 31, 2015 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
(in millions) | March 31, 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 12.1 | $ | 12.1 | $ | — | $ | — | |||||||||||||||||||||||||
Mutual funds | 1.3 | 1.3 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8.4 | 8.4 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 0.5 | 0.5 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22.3 | $ | 22.3 | $ | — | $ | — | |||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
(in millions) | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 11.9 | $ | 11.9 | $ | — | $ | — | |||||||||||||||||||||||||
Mutual funds | 1.3 | 1.3 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8.3 | 8.3 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 0.5 | 0.5 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22 | $ | 22 | $ | — | $ | — | |||||||||||||||||||||||||
Level 1: | Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. | ||||||||||||||||||||||||||||||||
Level 2: | Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||||||||||||||||||
Level 3: | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||||||||||||||||||||||
Based on our analysis of the nature and risks of our investments in equity securities and mutual funds, we have determined that presenting each of these investment categories in the aggregate is appropriate. | |||||||||||||||||||||||||||||||||
We measure the fair value of money market funds, mutual funds, equity securities, and exchange-traded funds based on quoted prices in active markets for identical assets or liabilities. We did not hold any securities categorized as Level 2 or Level 3 as of March 31, 2015 and December 31, 2014. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||||||||||||
Our shareholders approved the Morningstar 2011 Stock Incentive Plan (the 2011 Plan) on May 17, 2011. As of that date, we stopped granting awards under the Morningstar 2004 Stock Incentive Plan (the 2004 Plan). The 2004 Plan amended and restated the Morningstar 1993 Stock Option Plan, the Morningstar 2000 Stock Option Plan, and the Morningstar 2001 Stock Option Plan. | |||||||||||||||||||||||||||
The 2011 Plan provides for a variety of stock-based awards, including, among other things, stock options, performance share awards, restricted stock units, and restricted stock. We granted stock options, restricted stock units, and restricted stock under the 2004 Plan. | |||||||||||||||||||||||||||
All of our employees and our non-employee directors are eligible for awards under the 2011 Plan. | |||||||||||||||||||||||||||
Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan. | |||||||||||||||||||||||||||
The following table summarizes the number of shares available for future grants under our 2011 Plan: | |||||||||||||||||||||||||||
As of March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | ||||||||||||||||||||||||||
Shares available for future grants | 4.2 | ||||||||||||||||||||||||||
Accounting for Stock-Based Compensation Awards | |||||||||||||||||||||||||||
The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | |||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Restricted stock units | $ | 4 | $ | 3.7 | |||||||||||||||||||||||
Restricted stock | 0.1 | 0.1 | |||||||||||||||||||||||||
Performance share awards | 0.1 | — | |||||||||||||||||||||||||
Stock options | 0.1 | 0.1 | |||||||||||||||||||||||||
Total stock-based compensation expense | $ | 4.3 | $ | 3.9 | |||||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||||
The following table summarizes the stock-based compensation expense included in each of our operating expense categories: | |||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Cost of revenue | $ | 2 | $ | 1.7 | |||||||||||||||||||||||
Sales and marketing | 0.5 | 0.5 | |||||||||||||||||||||||||
General and administrative | 1.8 | 1.7 | |||||||||||||||||||||||||
Total stock-based compensation expense | $ | 4.3 | $ | 3.9 | |||||||||||||||||||||||
The following table summarizes the amount of unrecognized stock-based compensation expense as of March 31, 2015 and the expected number of months over which the expense will be recognized: | |||||||||||||||||||||||||||
Unrecognized stock-based compensation expense (in millions) | Expected amortization period (months) | ||||||||||||||||||||||||||
Restricted stock units | $ | 29.1 | 30 | ||||||||||||||||||||||||
Restricted stock | — | 1 | |||||||||||||||||||||||||
Performance share awards | 4.2 | 32 | |||||||||||||||||||||||||
Stock options | 0.1 | 4 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33.4 | 30 | ||||||||||||||||||||||||
In accordance with FASB ASC 718, Compensation—Stock Compensation, we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. Our largest annual equity grants typically have vesting dates in the second quarter. We adjust the stock-based compensation expense annually in the third quarter to reflect those awards that ultimately vested and update our estimate of the forfeiture rate that will be applied to awards not yet vested. | |||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||
Restricted stock units represent the right to receive a share of Morningstar common stock when that unit vests. Restricted stock units to employees vest ratably over a four-year period. Restricted stock units granted to non-employee directors vest ratably over a three-year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit. | |||||||||||||||||||||||||||
We measure the fair value of our restricted stock units on the date of grant based on the closing market price of the underlying common stock on the day prior to the grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. | |||||||||||||||||||||||||||
The following table summarizes restricted stock unit activity during the first three months of 2015: | |||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2014 | 655,934 | 14,778 | 670,712 | $ | 67.51 | ||||||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||||||
Dividend equivalents | 595 | 42 | 637 | 56.4 | |||||||||||||||||||||||
Vested | (123 | ) | — | (123 | ) | 57.07 | |||||||||||||||||||||
Issued | — | — | — | — | |||||||||||||||||||||||
Forfeited | (10,812 | ) | — | (10,812 | ) | 68.23 | |||||||||||||||||||||
RSUs Outstanding - March 31, 2015 | 645,594 | 14,820 | 660,414 | $ | 67.5 | ||||||||||||||||||||||
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 introduced a long-term incentive award program consisting of performance shares. In March 2015, executive officers, other than Joe Mansueto, and certain other employees, were granted performance share awards. These awards entitle the holder to a number of shares of Morningstar common stock equal to the number of notional performance shares that become vested. Each award specifies a number of performance shares that will vest if pre-established target performance goals are attained. The number of performance shares that actually vest may be more or less than the specified number of performance shares to the extent Morningstar exceeds or fails to achieve, respectively, the target performance goals over a three-year performance period. | |||||||||||||||||||||||||||
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 ratably over the vesting period based on the satisfaction of the performance condition that is most likely to be satisfied over the three-year performance period. | |||||||||||||||||||||||||||
The table below shows target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted as of March 31, 2015: | |||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||
Target performance share awards granted | 75,947 | ||||||||||||||||||||||||||
Weighted average fair value per award | $ | 76.33 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 64,105 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels (in millions) | $ | 4.2 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
The following table summarizes stock option activity in the first three months of 2015 for our various stock option grants: | |||||||||||||||||||||||||||
Underlying | Weighted | ||||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2014 | 169,810 | $ | 40.2 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (81,579 | ) | 29.32 | ||||||||||||||||||||||||
Options outstanding—March 31, 2015 | 88,231 | $ | 50.53 | ||||||||||||||||||||||||
Options exercisable—March 31, 2015 | 73,285 | $ | 49.11 | ||||||||||||||||||||||||
The following table summarizes the total intrinsic value of options exercised, which reflects the difference between the market value of our stock on the date of exercise and the exercise price of the option: | |||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 3.7 | $ | 2.5 | |||||||||||||||||||||||
The table below shows additional information for options outstanding and exercisable as of March 31, 2015: | |||||||||||||||||||||||||||
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 (in millions) | |||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||
Remaining | Exercise | Value | |||||||||||||||||||||||||
Contractual | Price | (in millions) | |||||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||||||
$27.81 | 19,300 | 0.09 | $ | 27.81 | $ | 0.9 | 19,300 | 0.09 | $ | 27.81 | $ | 0.9 | |||||||||||||||
$40.88 - $51.58 | 5,256 | 0.67 | 49.84 | 0.1 | 5,256 | 0.67 | 49.84 | 0.1 | |||||||||||||||||||
$57.28 - $59.35 | 63,675 | 6.26 | 57.48 | 1.1 | 48,729 | 6.26 | 57.47 | 0.9 | |||||||||||||||||||
$57.28 - $59.35 | 88,231 | 4.58 | $ | 50.53 | $ | 2.1 | 73,285 | 4.24 | $ | 49.11 | $ | 1.9 | |||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$27.81 - $59.35 | 88,231 | 4.58 | $ | 50.53 | $ | 2.1 | |||||||||||||||||||||
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 March 31, 2015. The intrinsic value is based on our closing stock price of $74.91 on that date. | |||||||||||||||||||||||||||
Excess Tax Benefits Related to Stock-Based Compensation | |||||||||||||||||||||||||||
FASB ASC 718, Compensation—Stock Compensation, requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return that exceeds the amount of tax benefit related to the compensation cost recognized in our Condensed Consolidated Statements of Operations. The following table summarizes our excess tax benefits: | |||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 1.1 | $ | 0.6 | |||||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes | ||||||||
Effective Tax Rate | |||||||||
The following table shows our effective tax rate for the three months ended March 31, 2015 and March 31, 2014: | |||||||||
Three months ended March 31 | |||||||||
(in millions) | 2015 | 2014 | |||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 44.1 | $ | 39.4 | |||||
Equity in net income of unconsolidated entities | 0.5 | 0.6 | |||||||
Net (income) loss attributable to the noncontrolling interest | (0.1 | ) | 0.1 | ||||||
Total | $ | 44.5 | $ | 40.1 | |||||
Income tax expense | $ | 14.8 | $ | 13.7 | |||||
Effective tax rate | 33.3 | % | 34.1 | % | |||||
Our effective tax rate in the first quarter of 2015 was 33.3%, a decrease of 0.8 percentage points compared with 34.1% in the prior-year period. The effective tax rate decrease primarily reflects unrecognized tax benefits that were recorded in the prior-year period. | |||||||||
Unrecognized Tax Benefits | |||||||||
The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2015 and December 31, 2014, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | |||||||||
As of March 31 | As of December 31 | ||||||||
(in millions) | 2015 | 2014 | |||||||
Gross unrecognized tax benefits | $ | 11.6 | $ | 11.9 | |||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11.6 | $ | 11.9 | |||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 10.2 | $ | 10.6 | |||||
Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | |||||||||
As of March 31 | As of December 31 | ||||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2015 | 2014 | |||||||
Current liability | $ | 5 | $ | 5.1 | |||||
Non-current liability | 6.6 | 6.6 | |||||||
Total liability for unrecognized tax benefits | $ | 11.6 | $ | 11.7 | |||||
We conduct business globally and, as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2015. It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. | |||||||||
We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 56% of our cash, cash equivalents, and investments balance as of March 31, 2015 was held by our operations outside of the United States. We believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not practical to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. | |||||||||
Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program |
We have an ongoing authorization, originally approved by our board of directors in September 2010, and subsequently amended, to repurchase up to $700.0 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 March 31, 2015, we had repurchased a total of 8,174,036 shares for $528.9 million under this authorization, leaving approximately $171.1 million available for future repurchases. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Segment Reporting Policy | 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 one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. | |
The accounting policies for our single reportable segment are the same as those described in “Note 3. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2014. We evaluate the performance of our reporting segment based on revenue and operating income. | |
Investments- Debt and Equity Securities Policy | 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 securities. 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: |
Acquisitions_Goodwill_and_Othe1
Acquisitions, Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Goodwill | The following table shows the changes in our goodwill balances from December 31, 2014 to March 31, 2015: | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 370.1 | |||||||||||||||||||||||||||
Foreign currency translation | (10.3 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 359.8 | |||||||||||||||||||||||||||
Schedule of Intangible Assets | The following table summarizes our intangible assets: | ||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||
(in millions) | Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | |||||||||||||||||||||
Amortization | Average | Amortization | Average | ||||||||||||||||||||||||||
Useful Life | Useful Life | ||||||||||||||||||||||||||||
(years) | (years) | ||||||||||||||||||||||||||||
Intellectual property | $ | 28.6 | $ | (25.2 | ) | $ | 3.4 | 9 | $ | 29 | $ | (25.0 | ) | $ | 4 | 9 | |||||||||||||
Customer-related assets | 137.5 | (84.5 | ) | 53 | 12 | 141.5 | (83.6 | ) | 57.9 | 12 | |||||||||||||||||||
Supplier relationships | 0.2 | (0.1 | ) | 0.1 | 20 | 0.2 | (0.1 | ) | 0.1 | 20 | |||||||||||||||||||
Technology-based assets | 87.8 | (58.7 | ) | 29.1 | 8 | 88.8 | (57.4 | ) | 31.4 | 8 | |||||||||||||||||||
Non-competition agreement | 4.3 | (2.0 | ) | 2.3 | 5 | 4.4 | (1.9 | ) | 2.5 | 5 | |||||||||||||||||||
Total intangible assets | $ | 258.4 | $ | (170.5 | ) | $ | 87.9 | 10 | $ | 263.9 | $ | (168.0 | ) | $ | 95.9 | 10 | |||||||||||||
Schedule of Intangible Asset, Amortization Expense | The following table summarizes our amortization expense related to intangible assets: | ||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||
Amortization expense | $ | 5.5 | $ | 5.1 | |||||||||||||||||||||||||
Schedule of Expected Amortization Expense | We expect intangible amortization expense for the remainder of 2015 and subsequent years as follows: | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Remainder of 2015 (from April 1 through December 31) | $ | 16 | |||||||||||||||||||||||||||
2016 | 17 | ||||||||||||||||||||||||||||
2017 | 12.7 | ||||||||||||||||||||||||||||
2018 | 10.5 | ||||||||||||||||||||||||||||
2019 | 7.8 | ||||||||||||||||||||||||||||
Thereafter | 23.9 | ||||||||||||||||||||||||||||
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful life, and currency translations. |
Income_Per_Share_Tables
Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table shows the number of restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: | ||||||||
Three months ended March 31 | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Weighted average restricted stock units | 32 | 6 | |||||||
Weighted average performance share awards | 18 | 9 | |||||||
Total | 50 | 15 | |||||||
Stock options and restricted stock could be included in the calculation in the future. | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: | ||||||||
Three months ended March 31 | |||||||||
(in millions, except per share amounts) | 2015 | 2014 | |||||||
Basic net income per share attributable to Morningstar, Inc.: | |||||||||
Net income attributable to Morningstar, Inc.: | $ | 29.7 | $ | 26.4 | |||||
Less: Distributed earnings available to participating securities | — | — | |||||||
Less: Undistributed earnings available to participating securities | — | — | |||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Weighted average common shares outstanding | 44.3 | 44.8 | |||||||
Basic net income per share attributable to Morningstar, Inc. | $ | 0.67 | $ | 0.59 | |||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||
Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Add: Undistributed earnings allocated to participating securities | — | — | |||||||
Less: Undistributed earnings reallocated to participating securities | — | — | |||||||
Numerator for diluted net income per share — undistributed and distributed earnings available to common shareholders | $ | 29.7 | $ | 26.4 | |||||
Weighted average common shares outstanding | 44.3 | 44.8 | |||||||
Net effect of dilutive stock options, restricted stock units, and performance share awards | 0.2 | 0.3 | |||||||
Weighted average common shares outstanding for computing diluted income per share | 44.5 | 45.1 | |||||||
Diluted net income per share attributable to Morningstar, Inc. | $ | 0.67 | $ | 0.58 | |||||
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | |||||||||
External revenue by geographical area | |||||||||
Three months ended March 31 | |||||||||
(in millions) | 2015 | 2014 | |||||||
United States | $ | 140.9 | $ | 130 | |||||
United Kingdom | 14.6 | 15.3 | |||||||
Continental Europe | 14.3 | 15.6 | |||||||
Australia | 7.7 | 8.2 | |||||||
Canada | 7 | 7.7 | |||||||
Asia | 4.4 | 3.7 | |||||||
Other | 0.9 | 0.7 | |||||||
Total International | 48.9 | 51.2 | |||||||
Consolidated revenue | $ | 189.8 | $ | 181.2 | |||||
Long-lived assets by geographical area | |||||||||
As of March 31 | As of December 31 | ||||||||
(in millions) | 2015 | 2014 | |||||||
United States | $ | 102.7 | $ | 98.1 | |||||
United Kingdom | 8.4 | 8.1 | |||||||
Continental Europe | 1.8 | 2.1 | |||||||
Australia | 0.7 | 0.8 | |||||||
Canada | 0.8 | 0.9 | |||||||
Asia | 6.9 | 7.5 | |||||||
Other | 0.1 | 0.1 | |||||||
Total International | 18.7 | 19.5 | |||||||
Consolidated property, equipment, and capitalized software, net | $ | 121.4 | $ | 117.6 | |||||
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Investments | We classify our investment portfolio as shown below: | ||||||||||||||||||||||||||||||||
As of March 31 | As of December 31 | ||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Available-for-sale | $ | 13.4 | $ | 13.2 | |||||||||||||||||||||||||||||
Held-to-maturity | 16.8 | 17.9 | |||||||||||||||||||||||||||||||
Trading securities | 8.4 | 8.3 | |||||||||||||||||||||||||||||||
Total | $ | 38.6 | $ | 39.4 | |||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity: | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Gain | Loss | Value | Gain | Loss | Value | ||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 11.5 | $ | 0.9 | $ | (0.3 | ) | $ | 12.1 | $ | 11.4 | $ | 0.8 | $ | (0.3 | ) | $ | 11.9 | |||||||||||||||
Mutual funds | 1.2 | 0.2 | (0.1 | ) | 1.3 | 1.2 | 0.2 | (0.1 | ) | 1.3 | |||||||||||||||||||||||
Total | $ | 12.7 | $ | 1.1 | $ | (0.4 | ) | $ | 13.4 | $ | 12.6 | $ | 1 | $ | (0.4 | ) | $ | 13.2 | |||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 16.8 | $ | — | $ | — | $ | 16.8 | $ | 17.9 | $ | — | $ | — | $ | 17.9 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | The expected maturities of certain fixed-income securities may differ from their contractual maturities because some of these holdings have call features that allow the issuers the right to prepay obligations without penalties. | ||||||||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||||||||||
(in millions) | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||
Equity securities, exchange-traded funds, and mutual funds | $ | 12.7 | $ | 13.4 | $ | 12.6 | $ | 13.2 | |||||||||||||||||||||||||
Total | $ | 12.7 | $ | 13.4 | $ | 12.6 | $ | 13.2 | |||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 16.8 | $ | 16.8 | $ | 17.9 | $ | 17.9 | |||||||||||||||||||||||||
Due in one to three years | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 16.8 | $ | 16.8 | $ | 17.9 | $ | 17.9 | |||||||||||||||||||||||||
Schedule of Realized Gain (Loss) on Available-For-Sale Securities | The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Condensed Consolidated Statements of Income: | ||||||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Realized gains | $ | 0.2 | $ | 0.2 | |||||||||||||||||||||||||||||
Realized losses | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||||||||||
Realized gains (losses), net | $ | — | $ | — | |||||||||||||||||||||||||||||
Unrealized Gain (Loss) On Trading Securities | The following table shows the net unrealized gains on trading securities as recorded in our Condensed Consolidated Statements of Income: | ||||||||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||||||||
Unrealized gains, net | $ | 0.1 | $ | 0.1 | |||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | 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 March 31, 2015 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
(in millions) | March 31, 2015 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 12.1 | $ | 12.1 | $ | — | $ | — | |||||||||||||||||||||||||
Mutual funds | 1.3 | 1.3 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8.4 | 8.4 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 0.5 | 0.5 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22.3 | $ | 22.3 | $ | — | $ | — | |||||||||||||||||||||||||
Fair Value | Fair Value Measurements as of December 31, 2014 | ||||||||||||||||||||||||||||||||
as of | Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||
(in millions) | December 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||||
Equity securities and exchange-traded funds | $ | 11.9 | $ | 11.9 | $ | — | $ | — | |||||||||||||||||||||||||
Mutual funds | 1.3 | 1.3 | — | — | |||||||||||||||||||||||||||||
Trading securities | 8.3 | 8.3 | — | — | |||||||||||||||||||||||||||||
Cash equivalents | 0.5 | 0.5 | — | — | |||||||||||||||||||||||||||||
Total | $ | 22 | $ | 22 | $ | — | $ | — | |||||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
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 March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | ||||||||||||||||||||||||||
Shares available for future grants | 4.2 | ||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded: | ||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Restricted stock units | $ | 4 | $ | 3.7 | |||||||||||||||||||||||
Restricted stock | 0.1 | 0.1 | |||||||||||||||||||||||||
Performance share awards | 0.1 | — | |||||||||||||||||||||||||
Stock options | 0.1 | 0.1 | |||||||||||||||||||||||||
Total stock-based compensation expense | $ | 4.3 | $ | 3.9 | |||||||||||||||||||||||
Income tax benefit related to the stock-based compensation expense | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||||
Schedule Of Compensation Cost By Expense Category | The following table summarizes the stock-based compensation expense included in each of our operating expense categories: | ||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Cost of revenue | $ | 2 | $ | 1.7 | |||||||||||||||||||||||
Sales and marketing | 0.5 | 0.5 | |||||||||||||||||||||||||
General and administrative | 1.8 | 1.7 | |||||||||||||||||||||||||
Total stock-based compensation expense | $ | 4.3 | $ | 3.9 | |||||||||||||||||||||||
Schedule of Unrecognized Stock-Based Compensation Expense | The following table summarizes the amount of unrecognized stock-based compensation expense as of March 31, 2015 and the expected number of months over which the expense will be recognized: | ||||||||||||||||||||||||||
Unrecognized stock-based compensation expense (in millions) | Expected amortization period (months) | ||||||||||||||||||||||||||
Restricted stock units | $ | 29.1 | 30 | ||||||||||||||||||||||||
Restricted stock | — | 1 | |||||||||||||||||||||||||
Performance share awards | 4.2 | 32 | |||||||||||||||||||||||||
Stock options | 0.1 | 4 | |||||||||||||||||||||||||
Total unrecognized stock-based compensation expense | $ | 33.4 | 30 | ||||||||||||||||||||||||
Schedule of Restricted Stock Units Award Activity | The following table summarizes restricted stock unit activity during the first three months of 2015: | ||||||||||||||||||||||||||
Restricted Stock Units (RSUs) | Unvested | Vested but | Total | Weighted | |||||||||||||||||||||||
Deferred | Average | ||||||||||||||||||||||||||
Grant Date Value | |||||||||||||||||||||||||||
per RSU | |||||||||||||||||||||||||||
RSUs outstanding—December 31, 2014 | 655,934 | 14,778 | 670,712 | $ | 67.51 | ||||||||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||||||
Dividend equivalents | 595 | 42 | 637 | 56.4 | |||||||||||||||||||||||
Vested | (123 | ) | — | (123 | ) | 57.07 | |||||||||||||||||||||
Issued | — | — | — | — | |||||||||||||||||||||||
Forfeited | (10,812 | ) | — | (10,812 | ) | 68.23 | |||||||||||||||||||||
RSUs Outstanding - March 31, 2015 | 645,594 | 14,820 | 660,414 | $ | 67.5 | ||||||||||||||||||||||
Schedule of Performance Share Activity | The table below shows target performance share awards granted and shares that would be issued at current performance levels for performance share awards granted as of March 31, 2015: | ||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||
Target performance share awards granted | 75,947 | ||||||||||||||||||||||||||
Weighted average fair value per award | $ | 76.33 | |||||||||||||||||||||||||
Number of shares that would be issued based on current performance levels | 64,105 | ||||||||||||||||||||||||||
Unamortized expense, based on current performance levels (in millions) | $ | 4.2 | |||||||||||||||||||||||||
Schedule of All Other Option Granted | The following table summarizes stock option activity in the first three months of 2015 for our various stock option grants: | ||||||||||||||||||||||||||
Underlying | Weighted | ||||||||||||||||||||||||||
Shares | Average | ||||||||||||||||||||||||||
Exercise | |||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||
Options outstanding—December 31, 2014 | 169,810 | $ | 40.2 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Canceled | — | — | |||||||||||||||||||||||||
Exercised | (81,579 | ) | 29.32 | ||||||||||||||||||||||||
Options outstanding—March 31, 2015 | 88,231 | $ | 50.53 | ||||||||||||||||||||||||
Options exercisable—March 31, 2015 | 73,285 | $ | 49.11 | ||||||||||||||||||||||||
Schedule of Intrinsic Value of Stock Options Exercised During Period | The following table summarizes the total intrinsic value of options exercised, which reflects the difference between the market value of our stock on the date of exercise and the exercise price of the option: | ||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 3.7 | $ | 2.5 | |||||||||||||||||||||||
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | The table below shows additional information for options outstanding and exercisable as of March 31, 2015: | ||||||||||||||||||||||||||
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 (in millions) | |||||||||||||||||||
Average | Average | Intrinsic | |||||||||||||||||||||||||
Remaining | Exercise | Value | |||||||||||||||||||||||||
Contractual | Price | (in millions) | |||||||||||||||||||||||||
Life (years) | |||||||||||||||||||||||||||
$27.81 | 19,300 | 0.09 | $ | 27.81 | $ | 0.9 | 19,300 | 0.09 | $ | 27.81 | $ | 0.9 | |||||||||||||||
$40.88 - $51.58 | 5,256 | 0.67 | 49.84 | 0.1 | 5,256 | 0.67 | 49.84 | 0.1 | |||||||||||||||||||
$57.28 - $59.35 | 63,675 | 6.26 | 57.48 | 1.1 | 48,729 | 6.26 | 57.47 | 0.9 | |||||||||||||||||||
$57.28 - $59.35 | 88,231 | 4.58 | $ | 50.53 | $ | 2.1 | 73,285 | 4.24 | $ | 49.11 | $ | 1.9 | |||||||||||||||
Vested or Expected to Vest | |||||||||||||||||||||||||||
$27.81 - $59.35 | 88,231 | 4.58 | $ | 50.53 | $ | 2.1 | |||||||||||||||||||||
Schedule of Tax Benefits Related to Share Based Compensation | The following table summarizes our excess tax benefits: | ||||||||||||||||||||||||||
Three months ended March 31 | |||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | |||||||||||||||||||||||||
Excess tax benefits related to stock-based compensation | $ | 1.1 | $ | 0.6 | |||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following table shows our effective tax rate for the three months ended March 31, 2015 and March 31, 2014: | ||||||||
Three months ended March 31 | |||||||||
(in millions) | 2015 | 2014 | |||||||
Income before income taxes and equity in net income of unconsolidated entities | $ | 44.1 | $ | 39.4 | |||||
Equity in net income of unconsolidated entities | 0.5 | 0.6 | |||||||
Net (income) loss attributable to the noncontrolling interest | (0.1 | ) | 0.1 | ||||||
Total | $ | 44.5 | $ | 40.1 | |||||
Income tax expense | $ | 14.8 | $ | 13.7 | |||||
Effective tax rate | 33.3 | % | 34.1 | % | |||||
Schedule of Gross Unrecognized Tax Benefits | The table below provides information concerning our gross unrecognized tax benefits as of March 31, 2015 and December 31, 2014, as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. | ||||||||
As of March 31 | As of December 31 | ||||||||
(in millions) | 2015 | 2014 | |||||||
Gross unrecognized tax benefits | $ | 11.6 | $ | 11.9 | |||||
Gross unrecognized tax benefits that would affect income tax expense | $ | 11.6 | $ | 11.9 | |||||
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ | 10.2 | $ | 10.6 | |||||
Schedule of Liabilities for Unrecognized Tax Benefits | Our Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. | ||||||||
As of March 31 | As of December 31 | ||||||||
Liabilities for Unrecognized Tax Benefits (in millions) | 2015 | 2014 | |||||||
Current liability | $ | 5 | $ | 5.1 | |||||
Non-current liability | 6.6 | 6.6 | |||||||
Total liability for unrecognized tax benefits | $ | 11.6 | $ | 11.7 | |||||
Credit_Arrangements_Details
Credit Arrangements (Details) (Revolving Credit Facility [Member], USD $) | 3 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jul. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Line of credit | 75 | |
Proceeds from line of credit | 15 | |
Outstanding principal balance | 45 | |
Borrowing availability under line of credit | $30 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 100.00% |
Acquisitions_Goodwill_and_Othe2
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Impairment Loss | $0 | $0 |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 370.1 | |
Foreign currency translation | -10.3 | |
Goodwill, Ending Balance | $359.80 |
Acquisitions_Goodwill_and_Othe3
Acquisitions, Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $258.40 | $263.90 |
Accumulated Amortization | -170.5 | -168 |
Intangible assets, Net | 87.9 | 95.9 |
Weighted-Average Useful Life (years) | 10 years | 10 years |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 28.6 | 29 |
Accumulated Amortization | -25.2 | -25 |
Intangible assets, Net | 3.4 | 4 |
Weighted-Average Useful Life (years) | 9 years | 9 years |
Customer Related Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 137.5 | 141.5 |
Accumulated Amortization | -84.5 | -83.6 |
Intangible assets, Net | 53 | 57.9 |
Weighted-Average Useful Life (years) | 12 years | 12 years |
Supplier Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 0.2 | 0.2 |
Accumulated Amortization | -0.1 | -0.1 |
Intangible assets, Net | 0.1 | 0.1 |
Weighted-Average Useful Life (years) | 20 years | 20 years |
Technology-Based Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 87.8 | 88.8 |
Accumulated Amortization | -58.7 | -57.4 |
Intangible assets, Net | 29.1 | 31.4 |
Weighted-Average Useful Life (years) | 8 years | 8 years |
Non-competition Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 4.3 | 4.4 |
Accumulated Amortization | -2 | -1.9 |
Intangible assets, Net | $2.30 | $2.50 |
Weighted-Average Useful Life (years) | 5 years | 5 years |
Acquisitions_Goodwill_and_Othe4
Acquisitions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $5.50 | $5.10 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | 16 | |
2016 | 17 | |
2017 | 12.7 | |
2018 | 10.5 | |
2019 | 7.8 | |
Thereafter | $23.90 |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000 | 15,000 |
Earnings Per Share, Basic [Abstract] | ||
Net income attributable to Morningstar, Inc. | $29.70 | $26.40 |
Less: Distributed Earnings Available to Participating Securities | 0 | 0 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | 0 |
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 29.7 | 26.4 |
Weighted average common shares outstanding | 44,300,000 | 44,800,000 |
Basic net income per share attributable to Morningstar, Inc. | $0.67 | $0.59 |
Earnings Per Share, Diluted [Abstract] | ||
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | 29.7 | 26.4 |
Add: Undistributed Earnings Allocated To Participating Securities | 0 | 0 |
Less: Undistributed Earnings Reallocated to Participating Securities | 0 | 0 |
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | $29.70 | $26.40 |
Weighted average common shares outstanding | 44,300,000 | 44,800,000 |
Net effect of dilutive stock options and restricted stock units | 200,000 | 300,000 |
Weighted average common shares outstanding for computing diluted income per share | 44,500,000 | 45,100,000 |
Diluted net income per share attributable to Morningstar, Inc. | $0.67 | $0.58 |
Restricted Stock Units (RSUs) [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 32,000 | 6,000 |
Performance Shares [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18,000 | 9,000 |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
External revenue | $189.80 | $181.20 |
U.S. [Member] | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
External revenue | 140.9 | 130 |
Non-U.S. [Member] | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||
External revenue | $48.90 | $51.20 |
Segment_and_Geographical_Area_3
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | $189.80 | $181.20 | |
Long-lived assets | 121.4 | 117.6 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 140.9 | 130 | |
Long-lived assets | 102.7 | 98.1 | |
Total International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 48.9 | 51.2 | |
Long-lived assets | 18.7 | 19.5 | |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 14.6 | 15.3 | |
Long-lived assets | 8.4 | 8.1 | |
Continental Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 14.3 | 15.6 | |
Long-lived assets | 1.8 | 2.1 | |
Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 7.7 | 8.2 | |
Long-lived assets | 0.7 | 0.8 | |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 7 | 7.7 | |
Long-lived assets | 0.8 | 0.9 | |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 4.4 | 3.7 | |
Long-lived assets | 6.9 | 7.5 | |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
External revenue | 0.9 | 0.7 | |
Long-lived assets | $0.10 | $0.10 |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements (Classification of Securities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Available-for-sale | $13.40 | $13.20 |
Held-to-maturity | 16.8 | 17.9 |
Trading securities | 8.4 | 8.3 |
Total | $38.60 | $39.40 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Available-for-sale: | |||
Available-for-sale securities, Cost | $12.70 | $12.60 | |
Available-for-sale Securities, Unrealized Gain | 1.1 | 1 | |
Available-for-sale Securities, Unrealized Loss | -0.4 | -0.4 | |
Available-for-sale securities, Fair Value | 13.4 | 13.2 | |
Held-to-maturity: | |||
Held-to-maturity securities, Cost | 16.8 | 17.9 | |
Held-to-maturity Securities, Unrecognized Gain | 0 | 0 | |
Held-to-maturity Securities, Unrecognized Loss | 0 | 0 | |
Held-to-maturity | 16.8 | 17.9 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Available-for-sale securities, realized gains | 0.2 | 0.2 | |
Available-for-sale securities, realized losses | -0.2 | -0.2 | |
Available-for-sale securities, realized gains (losses), net | 0 | 0 | |
Equity Securities and Exchange-traded Funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, Cost | 11.5 | 11.4 | |
Available-for-sale Securities, Unrealized Gain | 0.9 | 0.8 | |
Available-for-sale Securities, Unrealized Loss | -0.3 | -0.3 | |
Available-for-sale securities, Fair Value | 12.1 | 11.9 | |
Mutual Funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, Cost | 1.2 | 1.2 | |
Available-for-sale Securities, Unrealized Gain | 0.2 | 0.2 | |
Available-for-sale Securities, Unrealized Loss | -0.1 | -0.1 | |
Available-for-sale securities, Fair Value | $1.30 | $1.30 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost | $12.70 | $12.60 |
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value | 13.4 | 13.2 |
Available-for-sale securities, Cost | 12.7 | 12.6 |
Available-for-sale securities, Fair Value | 13.4 | 13.2 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, Due in one year or less, Cost | 16.8 | 17.9 |
Held-to-maturity securities, Due within one year or less, Fair Value | 16.8 | 17.9 |
Held-to-maturity securities, Due in one to three years, Cost | 0 | 0 |
Held-to-maturity securities, Due in one to three years, Fair Value | 0 | 0 |
Held-to-maturity securities, Cost | 16.8 | 17.9 |
Held-to-maturity securities, Fair Value | 16.8 | 17.9 |
Certificate of deposit held as collateral against Australia office lease | $1.50 |
Investments_and_Fair_Value_Mea5
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Unrealized gains (losses), net | $0.10 | $0.10 |
Investments_and_Fair_Value_Mea6
Investments and Fair Value Measurements (Fair Value of Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value | $8.40 | $8.30 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value | 8.4 | 8.3 |
Cash equivalents, fair value | 0.5 | 0.5 |
Total investments, fair value | 22.3 | 22 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Equity Securities and Exchange-traded Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 12.1 | 11.9 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 1.3 | 1.3 |
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 | 8.4 | 8.3 |
Cash equivalents, fair value | 0.5 | 0.5 |
Total investments, fair value | 22.3 | 22 |
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 | 12.1 | 11.9 |
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 | 1.3 | 1.3 |
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 | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 0 | 0 |
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 | 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 | 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 | 0 | 0 |
Cash equivalents, fair value | 0 | 0 |
Total investments, fair value | 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 | 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 | $0 | $0 |
Investments_and_Fair_Value_Mea7
Investments and Fair Value Measurements - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cost-method Investments, Other than Temporary Impairment | $0 | $0 | |
Equity Method Investment, Other than Temporary Impairment | $0 | $0 | |
Morningstar Sweden AB [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% | ||
YCharts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investment, Ownership Percentage | 22.00% | ||
Inquiry Financial Europe AB [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investment, Ownership Percentage | 34.00% |
StockBased_Compensation_Shares
Stock-Based Compensation (Shares Available For Future Grants) (Details) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares available for future grants | 4.2 |
StockBased_Compensation_Alloca
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $4.30 | $3.90 |
Income tax benefit related to the stock-based compensation expense | 1.2 | 1.1 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 4 | 3.7 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 0.1 | 0.1 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 0.1 | 0 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 0.1 | 0.1 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 2 | 1.7 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 0.5 | 0.5 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $1.80 | $1.70 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Unrecognized Stock-based Compensation Expense) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $33.40 |
Expected amortization period (months) | 30 years |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 29.1 |
Expected amortization period (months) | 30 years |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 0 |
Expected amortization period (months) | 1 year |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 4.2 |
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 | $0.10 |
Expected amortization period (months) | 4 years |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
RSUs outstanding, Beginning Balance, Unvested | 655,934 |
RSUs outstanding, Beginning Balance, Vested but Deferred | 14,778 |
RSUs outstanding, Beginning Balance, Total | 670,712 |
RSUs outstanding, Beginning Balance, Weighted Average Grant Date Valueper RSU | $67.51 |
Granted, Unvested | 0 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Grants In Period | 0 |
Granted, Total | 0 |
Granted, Weighted Average Grant Date Valueper RSU | $0 |
Dividend equivalents, Unvested | 595 |
Dividend equivalents, Vestedd but Deferred | 42 |
Dividend equivalents, Total | 637 |
Dividend equivalents, Weighted Average Grant Date Valueper RSU | $56.40 |
Vested, Unvested | -123 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Vested In Period | 0 |
Vested, Total | -123 |
Vested, Weighted Average Grant Date Valueper RSU | $57.07 |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Issued in Period | 0 |
Issued, Vested but Deferred | 0 |
Issued, Total | 0 |
Issued, Weighted Average Grant Date Valueper RSU | $0 |
Forfeited, Unvested | -10,812 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested But Deferred Forfeited In Period | 0 |
Forfeited, Total | -10,812 |
Forfeited, Weighted Average Grant Date Valueper RSU | $68.23 |
RSUs outstanding, Ending Balance, Unvested | 645,594 |
RSUs outstanding, Ending Balance, Vested but Deferred | 14,820 |
RSUs outstanding, Ending Balance, Total | 660,414 |
RSUs outstanding, Ending Balance, Weighted Average Grant Date Valueper RSU | $67.50 |
Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Non-Employee Director [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Realpoint, LLC [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
StockBased_Compensation_Perfor
Stock-Based Compensation (Performance Shares Activity) (Details) (Performance Shares [Member], USD $) | 3 Months Ended | 15 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target performance share awards granted | 75,947 | |
Weighted average fair value per award | $76.33 | |
Number of shares that would be issued based on current performance levels | 64,105 | |
Unamortized expense, based on current performance levels (in millions) | $4.20 | $4.20 |
Performance period | 3 years |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Option Exercise Price Grouping [Member] | ||
Intrinsic Value of Options Exercised [Abstract] | ||
Intrinsic value of options exercised | $3.70 | $2.50 |
Option Grants Excluding Options Granted at Discount [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, Beginning Balance, Underlying Shares | 169,810 | |
Granted, Underlying Shares | 0 | |
Canceled, Underlying Shares | 0 | |
Exercised, Underlying Shares | -81,579 | |
Options outstanding, Ending Balance, Underlying Shares | 88,231 | |
Options, Weighted Average Exercise Price [Abstract] | ||
Options outstanding, Beginning Balance, Weighted Average Exercise Price | $40.20 | |
Granted, Weighted Average Exercise Price | $0 | |
Canceled, Weighted Average Exercise Price | $0 | |
Exercised, Weighted Average Exercise Price | $29.32 | |
Options outstanding, Ending Balance, Weighted Average Exercise Price | $50.53 | |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ||
Options exercisable, Underlying Shares | 73,285 | |
Options exercisable, Weighted Average Exercise Price | $49.11 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period | 10 years | |
Employee [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Non-Employee Director [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information on Options) (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Closing stock price used to calculate intrinsic value | $74.91 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $27.81 |
Range of Exercise Prices, Lower Limit | $0 |
Range of Exercise Prices, Upper Limit | $27.81 |
Options Outstanding, Number of Options | 19,300 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | 0 years 1 month 2 days |
Options Outstanding, Weighted Average Exercise Price | $27.81 |
Options Outstanding, Aggregate Intrinsic Value | $0.90 |
Options Exercisable, Exercisable Shares | 19,300 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 0 years 1 month 2 days |
Options Exercisable, Weighted Average Exercise Price | $27.81 |
Options Exercisable, Aggregate Intrinsic Value | 0.9 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $40.88 - $51.58 |
Range of Exercise Prices, Lower Limit | $40.88 |
Range of Exercise Prices, Upper Limit | $51.58 |
Options Outstanding, Number of Options | 5,256 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | 0 years 8 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $49.84 |
Options Outstanding, Aggregate Intrinsic Value | 0.1 |
Options Exercisable, Exercisable Shares | 5,256 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 0 years 8 months 1 day |
Options Exercisable, Weighted Average Exercise Price | $49.84 |
Options Exercisable, Aggregate Intrinsic Value | 0.1 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $57.28 - $59.35 |
Range of Exercise Prices, Lower Limit | $57.28 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 63,675 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | 6 years 3 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $57.48 |
Options Outstanding, Aggregate Intrinsic Value | 1.1 |
Options Exercisable, Exercisable Shares | 48,729 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 6 years 3 months 4 days |
Options Exercisable, Weighted Average Exercise Price | $57.47 |
Options Exercisable, Aggregate Intrinsic Value | 0.9 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $57.28 - $59.35 |
Range of Exercise Prices, Lower Limit | $57.28 |
Range of Exercise Prices, Upper Limit | $59.35 |
Options Outstanding, Number of Options | 88,231 |
Options Outstanding, Weighted Average Remaining Contractual Term (years) | 4 years 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $50.53 |
Options Outstanding, Aggregate Intrinsic Value | 2.1 |
Options Exercisable, Exercisable Shares | 73,285 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 4 years 2 months 27 days |
Options Exercisable, Weighted Average Exercise Price | $49.11 |
Options Exercisable, Aggregate Intrinsic Value | 1.9 |
Vested or Expected to Vest [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | $27.81 |
Range of Exercise Prices, Upper Limit | $59.35 |
Vested or Expected to Vest, Range of Exercise Prices | $27.81 - $59.35 |
Vested or Expected to Vest, Number of Options | 88,231 |
Vested or Expected to Vest, Weighted Average Remaining Contractual Life (years) | 4 years 6 months 29 days |
Vested or Expected to Vest, Weighted Average Exercise Price | $50.53 |
Vested or Expected to Vest, Aggregate Intrinsic Value | $2.10 |
StockBased_Compensation_Excess
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Excess tax benefits related to stock-based compensation | $1.10 | $0.60 |
Income_Taxes_Income_Tax_Reconc
Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before income taxes and equity in net income of unconsolidated entities | $44.10 | $39.40 | |
Equity in net income of unconsolidated entities | 0.5 | 0.6 | |
Net (income) loss attributable to the noncontrolling interest | -0.1 | 0.1 | |
Total | 44.5 | 40.1 | |
Income tax expense | 14.8 | 13.7 | |
Effective income tax rate | 0.00% | 0.00% | |
Effective income tax rate reconciliation, change in percentage points compared with prior year period | -0.8 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Current liabilities | 5 | 5.1 | |
Non-current liabilities | 6.6 | 6.6 | |
Total liability for unrecognized tax benefits | $11.60 | $11.70 | |
Geographic Concentration Risk [Member] | Cash, Cash Equivalents and Investments [Member] | Non-U.S. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of cash, cash equivalents and investments held by operations outside of US | 56.00% |
Income_Taxes_Income_Tax_Contin
Income Taxes (Income Tax Contingency) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $11.60 | $11.90 |
Gross unrecognized tax benefits which would affect income tax expense | 11.6 | 11.9 |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $10.20 | $10.60 |
Share_Repurchase_Program_Detai
Share Repurchase Program (Details) (USD $) | Mar. 31, 2015 |
Equity [Abstract] | |
Share repurchase program, authorized amount | $700,000,000 |
Shares repurchased, program life to date, shares | 8,174,036 |
Shares repurchased, program life to date, value | 528,900,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $171,100,000 |