Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document and Entity Information Abstract | |||
Entity Registrant Name | MORNINGSTAR, INC. | ||
Entity Central Index Key | 1,289,419 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 42,911,386 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.5 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue | $ 788.8 | $ 760.1 | $ 698.3 |
Operating expense: | |||
Cost of revenue | 330.1 | 318.6 | 271.4 |
Sales and marketing | 96.6 | 111.1 | 103.6 |
General and administrative | 107.1 | 108.9 | 106.9 |
Depreciation and amortization | 64.4 | 54.9 | 45.7 |
Gain (Loss) Related to Litigation Settlement | 0 | 61 | 0 |
Total operating expense | 598.2 | 654.5 | 527.6 |
Operating income | 190.6 | 105.6 | 170.7 |
Non-operating income: | |||
Interest income, net | 1.3 | 2.1 | 2.7 |
Gain on sale of investments, reclassified from other comprehensive income | 0.6 | 1 | 4.2 |
Equity Method Investments Holding Gain | 0 | 5.2 | 3.6 |
Other income (expense), net | 1.2 | 0.1 | (3.2) |
Non-operating income, net | 3.1 | 8.4 | 7.3 |
Income before income taxes and equity in net income of unconsolidated entities | 193.7 | 114 | 178 |
Income tax expense | 62.7 | 35.7 | 56 |
Equity in net income of unconsolidated entities | 1.8 | 0 | 1.4 |
Consolidated net income | 132.8 | 78.3 | 123.4 |
Net (income) loss attributable to the noncontrolling interest | (0.2) | 0 | 0.1 |
Net income attributable to Morningstar, Inc. | $ 132.6 | $ 78.3 | $ 123.5 |
Net income per share attributable to Morningstar, Inc.: | |||
Basic net income per share attributable to Morningstar, Inc. (in dollars per share) | $ 3 | $ 1.75 | $ 2.68 |
Diluted net income per share attributable to Morningstar, Inc. (in dollars per share) | 3 | 1.74 | 2.66 |
Dividends per common share: | |||
Dividends declared per common share | 0.79 | 0.70 | 0.545 |
Dividends paid per common share | $ 0.76 | $ 0.68 | $ 0.375 |
Weighted average shares outstanding: | |||
Basic (in shares) | 44.2 | 44.7 | 46.2 |
Diluted (in shares) | 44.3 | 44.9 | 46.5 |
Consolidated Consolidated State
Consolidated Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated net income | $ 132.8 | $ 78.3 | $ 123.4 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (28.2) | (29.8) | (4.5) |
Unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) arising during period | (1) | 0.4 | 2.4 |
Reclassification of gains included in net income | (0.4) | (0.6) | (2.6) |
Other comprehensive income (loss) | (29.6) | (30) | (4.7) |
Comprehensive income | 103.2 | 48.3 | 118.7 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.4) | 0.1 | 0.3 |
Comprehensive income attributable to Morningstar, Inc. | $ 102.8 | $ 48.4 | $ 119 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 207.1 | $ 185.2 |
Investments | 41.5 | 39.4 |
Accounts receivable, less allowance of $1.8 and $1.5, respectively | 139.3 | 136.7 |
Deferred tax asset, net | 0 | 0 |
Other | 22 | 29.5 |
Total current assets | 409.9 | 390.8 |
Property, equipment, and capitalized software, net | 134.5 | 117.6 |
Investments in unconsolidated entities | 35.6 | 28.8 |
Goodwill | 364.2 | 370.1 |
Intangible assets, net | 74.2 | 95.9 |
Other assets | 10.6 | 7.1 |
Total assets | 1,029 | 1,010.3 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 39.2 | 34.3 |
Accrued compensation | 80.9 | 80.5 |
Deferred revenue | 140.7 | 146 |
Short-term Debt | 35 | 30 |
Other | 8.6 | 3 |
Total current liabilities | 304.4 | 293.8 |
Accrued compensation | 8.9 | 7.9 |
Deferred tax liability, net | 19.8 | 17 |
Deferred rent | 25.4 | 26.4 |
Other long-term liabilities | 29.9 | 10.8 |
Total liabilities | 388.4 | 355.9 |
Morningstar, Inc. shareholders' equity: | ||
Common stock, no par value, 200,000,000 shares authorized, of which 43,403,076 and 44,345,763 shares were outstanding as of December 31, 2015 and December 31, 2014, respectively | 0 | 0 |
Treasury stock at cost, 9,478,449 shares and 8,257,214 shares as of December 31, 2015 and December 31, 2014, respectively | (619.8) | (524.3) |
Additional paid-in capital | 575.5 | 561.1 |
Retained earnings | 739.2 | 641.5 |
Accumulated other comprehensive loss: | ||
Currency translation adjustment | (53.5) | (25.1) |
Unrealized gain (loss) on available-for-sale investments | (1.1) | 0.3 |
Total accumulated other comprehensive loss | (54.6) | (24.8) |
Total Morningstar, Inc. shareholders' equity | 640.3 | 653.5 |
Noncontrolling interest | 0.3 | 0.9 |
Total equity | 640.6 | 654.4 |
Total liabilities and equity | $ 1,029 | $ 1,010.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 1.8 | $ 1.5 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Outstanding | 43,403,076 | 44,345,763 |
Treasury Stock, Shares | 9,478,449 | 8,257,214 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interests |
Balance at Dec. 31, 2012 | $ 726.9 | $ (301.8) | $ 521.4 | $ 496.4 | $ 9.6 | $ 1.3 | |
Balance (in shares) at Dec. 31, 2012 | 46,541,571 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 123.4 | 123.5 | (0.1) | ||||
Other Comprehensive Income (loss) | |||||||
Unrealized gain on available-for-sale investments, net of income tax | 2.4 | 2.4 | |||||
Reclassification of adjustments for gains included in net income, net of income tax | (2.6) | (2.6) | |||||
Foreign currency translation adjustment, net | (4.5) | (4.3) | (0.2) | ||||
Other comprehensive income (loss) | (4.7) | (4.5) | (0.2) | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | (1.3) | 1.6 | (2.9) | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 437,263 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Stock-based compensation - restricted stock units | 14.1 | 14.1 | |||||
Stock-based compensation - restricted stock | 0.4 | 0.4 | |||||
Stock-based compensation - stock options | 0.5 | 0.5 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 5.9 | 5.9 | |||||
Dividends declared - common shares outstanding | (25) | (25) | |||||
Dividends declared - restricted stock units | (0.1) | 0.2 | (0.3) | ||||
Balance at Dec. 31, 2013 | 691.3 | (449) | 539.6 | 594.6 | 5.1 | 1 | |
Balance (in shares) at Dec. 31, 2013 | 44,967,423 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Common share repurchased | (148.8) | (148.8) | |||||
Common share repurchased (in shares) | (2,011,411) | ||||||
Net income (loss) | 78.3 | 78.3 | |||||
Unrealized gain on available-for-sale investments, net of income tax | 0.4 | 0.4 | |||||
Reclassification of adjustments for gains included in net income, net of income tax | (0.6) | (0.6) | |||||
Foreign currency translation adjustment, net | (29.8) | (29.7) | (0.1) | ||||
Other comprehensive income (loss) | (30) | (29.9) | (0.1) | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | 0.8 | 1.4 | (0.6) | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 452,344 | ||||||
Stock-based compensation - restricted stock units | 16.3 | 16.3 | |||||
Stock-based compensation - restricted stock | 0.4 | 0.4 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Other Long-term Incentive Plans, Requisite Service Period Recognition | 0.5 | 0.5 | |||||
Stock-based compensation - stock options | 0.4 | 0.4 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 4.4 | 4.4 | |||||
Dividends declared - common shares outstanding | (31.2) | (31.2) | |||||
Dividends declared - restricted stock units | (0.1) | 0.1 | (0.2) | ||||
Balance at Dec. 31, 2014 | $ 654.4 | $ 0 | (524.3) | 561.1 | 641.5 | (24.8) | 0.9 |
Balance (in shares) at Dec. 31, 2014 | 44,345,763 | 44,345,763 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Common share repurchased | $ (76.7) | (76.7) | |||||
Common share repurchased (in shares) | (1,074,004) | ||||||
Net income (loss) | 132.8 | 132.6 | 0.2 | ||||
Unrealized gain on available-for-sale investments, net of income tax | (1) | (1) | |||||
Reclassification of adjustments for gains included in net income, net of income tax | (0.4) | (0.4) | |||||
Foreign currency translation adjustment, net | (28.2) | (28.4) | 0.2 | ||||
Other comprehensive income (loss) | (29.6) | (29.8) | 0.2 | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net | (1.7) | 1.5 | (3.2) | ||||
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net (in shares) | 298,435 | ||||||
Stock-based compensation - restricted stock units | 16.1 | 16.1 | |||||
Stock-based compensation - restricted stock | 0.1 | 0.1 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Other Long-term Incentive Plans, Requisite Service Period Recognition | 1 | 1 | |||||
Stock-based compensation - stock options | 0.2 | 0.2 | |||||
Excess tax benefit derived from stock-option exercises and vesting of restricted stock units | 2.6 | 2.6 | |||||
Dividends declared - common shares outstanding | (34.8) | (34.8) | |||||
Dividends declared - restricted stock units | (0.1) | (0.1) | |||||
Purchase of remaining interest in majority-owned investment | (3.4) | (2.4) | (1) | ||||
Balance at Dec. 31, 2015 | $ 640.6 | $ 0 | (619.8) | $ 575.5 | $ 739.2 | $ (54.6) | $ 0.3 |
Balance (in shares) at Dec. 31, 2015 | 43,403,076 | 43,403,076 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition [Abstract] | |||||||
Common share repurchased | $ (97) | $ (97) | |||||
Common share repurchased (in shares) | (1,241,122) |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 0.4 | $ 0.2 | $ 1.5 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | $ 0.1 | $ 0.4 | $ 1.6 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Consolidated net income | $ 132.8 | $ 78.3 | $ 123.4 |
Adjustments to reconcile consolidated net income to net cash flows from operating activities: | |||
Depreciation and amortization | 64.4 | 54.9 | 45.7 |
Deferred income taxes | 2.9 | 3 | (1.1) |
Stock-based compensation expense | 17.4 | 17.6 | 15 |
Provision for bad debt | 0.5 | 0.5 | 0.8 |
Equity in net income of unconsolidated entities | (1.8) | 0 | (1.4) |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | (2.6) | (4.4) | (5.9) |
Gain on sale of cost-method investment | 0 | (0.4) | 0 |
Holding gain upon acquisition of additional ownership of equity method investment | 0 | (5.2) | (3.6) |
Other, net | (1.1) | (0.7) | (1.8) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (6.9) | (25.9) | (1.6) |
Other assets | 0.7 | (5.3) | (2.3) |
Accounts payable and accrued liabilities | 4.7 | (2) | (1.2) |
Accrued compensation | 7 | 19.5 | 3.2 |
Income taxes—current | 10.1 | 2.3 | 16.8 |
Deferred revenue | 10.6 | (1.7) | 3.7 |
Deferred rent | (0.3) | 3 | (1.5) |
Other liabilities | 0.5 | (1.3) | (1.5) |
Cash provided by operating activities | 238.9 | 132.2 | 186.7 |
Investing activities | |||
Purchases of investments | (34.7) | (20.4) | (140.1) |
Proceeds from maturities and sales of investments | 30 | 111.6 | 171.2 |
Capital expenditures | (57.3) | (58.3) | (33.6) |
Acquisitions, net of cash acquired | (11.1) | (64.4) | (11.1) |
Proceeds from sale of a business, net | 0 | 0 | 1 |
Purchases of cost and equity method investments | (6.2) | 0 | (2.8) |
Other, net | (0.2) | 0.3 | 0.5 |
Cash used for investing activities | (79.5) | (31.2) | (14.9) |
Financing activities | |||
Common shares repurchased | (97) | (76.7) | (153.5) |
Dividends paid | (33.7) | (30.5) | (17.4) |
Proceeds from short-term debt | 50 | 30 | 0 |
Repayments of short-term debt | (45) | 0 | 0 |
Proceeds from stock-option exercises, net | 3.9 | 6.6 | 4.5 |
Taxes Withheld For Restricted Stock Units | (5.6) | (5.8) | (5.8) |
Excess tax benefits from stock-option exercises and vesting of restricted stock units | 2.6 | 4.4 | 5.9 |
Other, net | (0.1) | 0.3 | (0.1) |
Cash provided by (used for) financing activities | (124.9) | (71.7) | (166.4) |
Effect of exchange rate changes on cash and cash equivalents | (12.6) | (12.3) | (1.1) |
Net increase in cash and cash equivalents | 21.9 | 17 | 4.3 |
Cash and cash equivalents - beginning of period | 185.2 | 168.2 | 163.9 |
Cash and cash equivalents - end of period | 207.1 | 185.2 | 168.2 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 50.1 | 30.4 | 40.4 |
Cash paid for interest | 0.4 | 0.3 | 0 |
Supplemental information of non-cash investing and financing activities: | |||
Unrealized gain (loss) on available-for-sale investments | 2 | (0.4) | (0.3) |
Equipment obtained under long-term financing arrangement | $ 5.3 | $ 0 | $ 4.9 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Morningstar, Inc. and its subsidiaries (Morningstar, we, our), provides independent investment research for investors around the world. We offer an extensive line of products and services for financial advisors, asset managers, retirement plan providers and sponsors, and individual investors. We have operations in 27 countries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The acronyms that appear in these Notes to our Consolidated Financial Statements refer to the following: ASC Accounting Standards Codification ASU Accounting Standards Update EITF Emerging Issues Task Force FASB Financial Accounting Standards Board SEC Securities and Exchange Commission Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions. We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation . A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-02, Comprehensive Income (Topic 220) . We show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement along with net income. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. Reclassifications . Certain amounts reported in prior years have been reclassified to conform to the current year presentation. Separately, as a result of our move to a more centralized structure in 2013 (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. These changes added approximately $14 million of compensation expense to cost of revenue in 2014 versus 2013, and reduced the compensation expense included in the sales and marketing and general and administrative categories by approximately $8 million and $6 million , respectively, in the same period. These changes did not affect total operating expense or operating income for any of the periods presented. Cash and Cash Equivalents. Cash and cash equivalents consists of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices. Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. • Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. • Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. • Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of equity securities, exchange-traded funds, and mutual funds. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements . FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs: • Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. • Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 6 . Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2015 , 2014 , and 2013 , no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software , FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software . Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three to five years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance. The table below summarizes our capitalized software development costs for the past three years: (in millions) 2015 2014 2013 Capitalized software development costs $ 21.8 $ 18.8 $ 8.1 Business Combinations . Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations . We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their full fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations , on the acquisition date. As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. Goodwill . Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other , we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2015 , 2014 , and 2013 . We did not record any impairment losses in 2015 , 2014 , or 2013 . Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets , we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2015 , 2014 , or 2013 . Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition , ASC 605-25, Revenue Recognition: Multiple Element Arrangements , and ASC 985-605, Software: Revenue Recognition . We recognize revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery of our products and services has taken place. If arrangements include an acceptance provision, we generally begin recognizing revenue when we receive customer acceptance; • The amount of fees to be paid by the customer is fixed or determinable; and • The collectibility of the fees is reasonably assured. We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Research, Premium Membership subscriptions for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for commercial mortgage- backed securities (CMBS), we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance. We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. Our Workplace Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Workplace Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Workplace Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. Some of our revenue arrangements combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. Sales Commissions. Through December 31, 2013, we paid sales commissions based on a formula driven by the total contract value of sales opportunities closed, with any subsequent adjustments (such as clawbacks for contract cancellations) reflected in future commission payouts. We considered the corresponding commission expense an incremental direct acquisition cost and treated it as a deferred charge, which we expensed over the term of the underlying sales contracts. In the first quarter of 2014, we modified our sales incentive plan. The revised plan is based on a combination of net new sales and specific business objectives not solely tied to revenue growth. Because of this new structure and the discretion involved in determining the related incentives, we started expensing sales commissions as incurred instead of amortizing them over the contract terms. However, we continued to amortize the deferred charge capitalized in connection with sales commissions paid in 2013 and previous periods as part of the previous incentive plan. This amortization added $3.5 million and $9.8 million of sales commission cost in 2015 and 2014, respectively. Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: (in millions) 2015 2014 2013 Advertising expense $ 8.3 $ 7.5 $ 6.9 Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation . Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, performance share awards, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, Morningstar's full-time employees are generally eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25 , Compensated Absences . We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave and include this liability in Accrued Compensation in our Consolidated Balance Sheet. Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, Income Taxes . FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. Income per Share . We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share . The difference between weighted average shares outstanding and diluted shares outstanding mainly reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two-Class Method . Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. |
Credit Arrangements
Credit Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | Credit Arrangements In July 2015, we renewed our $75.0 million , single-bank revolving credit facility. We drew on the credit facility during the fourth quarter of 2015 and had an outstanding principal balance of $35.0 million at an interest rate of LIBOR plus 100 basis points as of December 31, 2015 , leaving borrowing availability of $40.0 million . |
Income Per Share
Income Per Share | 12 Months Ended |
Dec. 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: (in millions, except per share amounts) 2015 2014 2013 Basic net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc.: $ 132.6 $ 78.3 $ 123.5 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 $ 132.6 $ 78.3 $ 123.5 Weighted average common shares outstanding 44.2 44.7 46.2 Basic net income per share attributable to Morningstar, Inc. $ 3.00 $ 1.75 $ 2.68 Diluted net income per share attributable to Morningstar, Inc.: Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders $ 132.6 $ 78.3 $ 123.5 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 $ 132.6 $ 78.3 $ 123.5 Weighted average common shares outstanding 44.2 44.7 46.2 Net effect of dilutive stock options and restricted stock units 0.1 0.2 0.3 Weighted average common shares outstanding for computing diluted income per share 44.3 44.9 46.5 Diluted net income per share attributable to Morningstar, Inc. $ 3.00 $ 1.74 $ 2.66 The following table shows the number of weighted average restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: (in thousands) 2015 2014 2013 Weighted average restricted stock units 38 47 17 Weighted average performance share awards 4 6 — Total 42 53 17 Stock options could be included in the calculation in the future. |
Segment and Geographical Area I
Segment and Geographical Area Information | 12 Months Ended |
Dec. 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 a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2 . 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 Year ended December 31 (in millions) 2015 2014 2013 United States $ 585.1 $ 550.8 $ 500.8 United Kingdom 64.2 61.8 56.2 Continental Europe 58.8 62.7 57.6 Australia 30.5 35.0 35.3 Canada 27.9 30.8 31.8 Asia 18.5 15.8 13.9 Other 3.8 3.2 2.7 Total International 203.7 209.3 197.5 Consolidated revenue $ 788.8 $ 760.1 $ 698.3 Long-lived assets by geographical area As of December 31 (in millions) 2015 2014 United States $ 116.9 $ 98.1 United Kingdom 8.6 8.1 Continental Europe 2.2 2.1 Australia 0.9 0.8 Canada 0.7 0.9 Asia 5.2 7.5 Other — 0.1 Total International 17.6 19.5 Consolidated property, equipment, and capitalized software, net $ 134.5 $ 117.6 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 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. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. We classify our investment portfolio as shown below: As of December 31 (in millions) 2015 2014 Available-for-sale $ 17.3 $ 13.2 Held-to-maturity 15.3 17.9 Trading securities 8.9 8.3 Total $ 41.5 $ 39.4 The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity: As of December 31, 2015 As of December 31, 2014 (in millions) Cost Unrealized Gain Unrealized Loss Fair Value Cost Unrealized Gain Unrealized Loss Fair Value Available-for-sale: Equity securities and exchange-traded funds 17.4 0.3 (1.6 ) 16.1 11.4 0.8 (0.3 ) 11.9 Mutual funds 1.3 — (0.1 ) 1.2 1.2 0.2 (0.1 ) 1.3 Total $ 18.7 $ 0.3 $ (1.7 ) $ 17.3 $ 12.6 $ 1.0 $ (0.4 ) $ 13.2 Held-to-maturity: Certificates of deposit $ 15.3 $ — $ — $ 15.3 $ 17.9 $ — $ — $ 17.9 As of December 31, 2015 and December 31, 2014 , investments with unrealized losses for greater than a 12-month period were not material to the Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 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 December 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 18.7 17.3 12.6 13.2 Total $ 18.7 $ 17.3 $ 12.6 $ 13.2 Held-to-maturity: Due in one year or less $ 15.3 $ 15.3 $ 17.9 $ 17.9 Total $ 15.3 $ 15.3 $ 17.9 $ 17.9 As of December 31, 2014 , held-to-maturity investments included a $1.5 million certificate of deposit, held as collateral against bank guarantees for our office leases, primarily in Australia. The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: (in millions) 2015 2014 2013 Realized gains $ 1.3 $ 1.5 $ 5.5 Realized losses (0.7 ) (0.5 ) (1.3 ) Realized gains, net $ 0.6 $ 1.0 $ 4.2 We determine realized gains and losses using the specific identification method. The following table shows the net unrealized gains (losses) on trading securities as recorded in our Consolidated Statements of Income: (in millions) 2015 2014 2013 Unrealized gains (losses), net $ (0.8 ) $ (0.2 ) $ 0.8 The table below shows the fair value of our assets subject to fair value measurements that are measured at fair value on a recurring basis using the fair value hierarchy and the necessary disclosures under FASB ASC 820, Fair Value Measurement : Fair Value Fair Value Measurements as of December 31, 2015 as of Using Fair Value Hierarchy (in millions) December 31, 2015 Level 1 Level 2 Level 3 Available-for-sale investments Equity securities and exchange-traded funds 16.1 16.1 — — Mutual funds 1.2 1.2 — — Trading securities 8.9 8.9 — — Cash equivalents 0.2 0.2 — — Total $ 26.4 $ 26.4 $ — $ — 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 $ 22.0 $ 22.0 $ — $ — 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 December 31, 2015 and December 31, 2014 . |
Acquisitions, Goodwill, and Oth
Acquisitions, Goodwill, and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |
Acquisitions, Goodwill, and Other Intangible Assets | Acquisitions, Goodwill, and Other Intangible Assets 2015 Acquisitions Increased Ownership Interest in Ibbotson Associates Japan K.K. (IAJ) In July 2015, we acquired an additional 28.9% interest in Ibbotson Associates Japan K.K. (IAJ), increasing our ownership to 100% from 71.1% . As we previously owned more than 50% of the company, IAJ's financial results were consolidated in our Consolidated Financial Statements prior to acquiring the remaining interest. Total Rebalance Expert (tRx) In November 2015, we acquired Total Rebalance Expert (tRx), an automated, tax-efficient investment portfolio rebalancing platform for financial advisors. tRx streamlines the rebalancing process for advisors and automates the complexities involved in rebalancing and managing portfolios. We began consolidating the financial results of tRx in our Consolidated Financial Statements on November 2, 2015. 2014 Acquisitions Increased Ownership Interest in HelloWallet Holdings, Inc. In June 2014, we acquired an additional 81.3% interest in HelloWallet Holdings, Inc. (HelloWallet), increasing our ownership to 100% from 18.7% . HelloWallet combines behavioral economics and the psychology of decision-making with sophisticated technology to provide personalized, unbiased financial guidance to U.S. workers and their families through their employer benefit plans. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on June 3, 2014. HelloWallet's total estimated fair value of $54.0 million includes $40.5 million in cash paid to acquire the remaining 81.3% interest in HelloWallet and pay off HelloWallet's indebtedness as well as $13.5 million related to the 18.7% of HelloWallet we previously held. We recorded a non-cash holding gain of $5.2 million for the difference between the fair value and the book value of our previously held investment. The gain is classified as "Holding gain upon acquisition of additional ownership of equity-method investments" in our Consolidated Statement of Income for the year ended December 31, 2014. The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in millions) Cash and cash equivalents $ 3.7 Accounts receivable and other current assets 0.2 Other current and non-current assets 0.3 Deferred tax asset 8.6 Intangible assets 9.5 Goodwill 39.2 Deferred revenue (2.9 ) Deferred tax liability (3.6 ) Other current and non-current liabilities (1.0 ) Total fair value of HelloWallet $ 54.0 The allocation includes $9.5 million of acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Technology based assets $ 6.7 5 Intellectual property (trademarks and trade names) 0.2 3 Non-competition agreement 2.6 5 Total intangible assets $ 9.5 5 We recognized a deferred tax liability of $3.6 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. We recognized a deferred tax asset of $8.6 million mainly because of net operating losses of HelloWallet which will become available to Morningstar. Goodwill of $39.2 million represents the premium over the fair value of the net tangible and intangible assets acquired. We paid this premium for a number of reasons, including the opportunity to bring together HelloWallet's comprehensive financial wellness expertise with Morningstar's independent, research-based retirement advice to create a holistic retirement savings and advice offering. ByAllAccounts, Inc. In April 2014, we acquired ByAllAccounts, Inc. (ByAllAccounts), a provider of innovative data aggregation technology for financial applications for $27.9 million in cash. ByAllAccounts uses a knowledge-based process, including patented artificial intelligence technology, to collect, consolidate, and enrich financial account data and deliver it to virtually any platform. We began including the financial results of this acquisition in our Consolidated Financial Statements on April 1, 2014. The following table summarizes our allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: (in millions) Cash and cash equivalents $ 0.3 Accounts receivable and other current assets 0.1 Deferred tax asset 4.0 Other current and non-current assets 0.3 Intangible assets 8.7 Goodwill 18.5 Deferred revenue (0.1 ) Deferred tax liability (3.3 ) Other current and non-current liabilities (0.6 ) Total purchase price $ 27.9 The allocation includes $8.7 million of acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Customer-related assets $ 5.5 24 Technology-based assets 3.0 4.5 Intellectual property (trademarks and trade names) 0.1 1 Non-competition agreement 0.1 3 Total intangible assets $ 8.7 19 We recognized a deferred tax liability of $3.3 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. We recognized a deferred tax asset of $4.0 million mainly because of net operating losses of ByAllAccounts which will become available to Morningstar. Goodwill of $18.5 million represents the premium we paid over the fair value of the acquired net tangible and intangible assets. We paid this premium for a number of reasons, including the opportunity to integrate the service into our offerings as well as expand and develop ByAllAccounts' third-party distribution relationships. 2013 Acquisitions Increased Ownership Interest in Morningstar Sweden AB In May 2013, we acquired an additional 76% interest in Morningstar Sweden AB (Morningstar Sweden), increasing our ownership to 100% from 24% . Morningstar’s main offerings in Sweden include Morningstar Direct, Morningstar Data, Morningstar Enterprise Components (formerly Integrated Web Tools), and Morningstar.se, a website for individual investors. We began consolidating the financial results of this acquisition in our Consolidated Financial Statements on May 2, 2013. Morningstar Sweden's total estimated fair value of $18.5 million included $14.5 million in cash paid to acquire the remaining 76% interest in Morningstar Sweden and $4.0 million related to the 24% of Morningstar Sweden we previously held. We determined the fair value of the previously held 24% investment independent of the acquired controlling interest by applying a minority interest discount based on analysis of comparable transactions. Accordingly, we recorded a non-cash holding gain of $3.6 million , which is classified as "Holding gain upon acquisition of additional ownership of equity-method investments" in our Consolidated Statement of Income for the year ended December 31, 2013. The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in millions) Cash and cash equivalents $ 3.5 Accounts receivable and other current assets 0.5 Other non-current assets 0.2 Intangible assets 9.7 Goodwill 8.9 Deferred revenue (1.2 ) Deferred tax liability (2.3 ) Other current and non-current liabilities (0.8 ) Total fair value of Morningstar Sweden $ 18.5 The allocation included acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Customer-related assets $ 9.7 14 Total intangible assets $ 9.7 14 We recognized a deferred tax liability of $2.3 million mainly because the amortization expense related to certain intangible assets is not deductible for income tax purposes. Goodwill of $8.9 million represents the premium over the fair value of the net tangible and intangible assets acquired with this acquisition. We paid this premium for a number of reasons, including the opportunity to offer Morningstar's full suite of products and services to investors in Sweden and further leverage Morningstar's global reach, investment databases, and technology expertise. Goodwill The following table shows the changes in our goodwill balances from January 1, 2014 to December 31, 2015 : (in millions) Balance as of January 1, 2014 $ 326.5 Acquisition of HelloWallet and ByAllAccounts 57.6 Other, primarily foreign currency translation (14.0 ) Balance as of December 31, 2014 $ 370.1 Other, primarily foreign currency translation (5.9 ) Balance as of December 31, 2015 $ 364.2 We did not record any impairment losses in 2015 , 2014 , or 2013 , as the estimated fair values of our reporting unit exceeded its carrying value. We perform our annual impairment testing during the fourth quarter of each year. Intangible Assets The following table summarizes our intangible assets: As of December 31, 2015 As of December 31, 2014 (in millions) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Intellectual property $ 28.3 $ (26.7 ) $ 1.6 9 $ 29.0 $ (25.0 ) $ 4.0 9 Customer-related assets 137.5 (92.3 ) 45.2 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 89.5 (64.4 ) 25.1 8 88.8 (57.4 ) 31.4 8 Non-competition agreement 4.6 (2.4 ) 2.2 5 4.4 (1.9 ) 2.5 5 Total intangible assets $ 260.1 $ (185.9 ) $ 74.2 10 $ 263.9 $ (168.0 ) $ 95.9 10 The following table summarizes our amortization expense related to intangible assets: (in millions) 2015 2014 2013 Amortization expense $ 22.0 $ 22.3 $ 21.5 We did not record any impairment losses involving intangible assets in 2015 , 2014 , or 2013 . We amortize intangible assets using the straight-line method over their expected economic useful lives. Based on acquisitions and divestitures completed through December 31, 2015 , we expect intangible amortization expense for 2016 and subsequent years to be as follows: (in millions) 2016 $ 17.7 2017 12.8 2018 10.7 2019 8.2 2020 4.7 Thereafter 20.1 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. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Unconsolidated Entities [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Our investments in unconsolidated entities consist primarily of the following: As of December 31 (in millions) 2015 2014 Investment in MJKK $ 24.3 $ 23.0 Other equity method investments 3.7 3.5 Investments accounted for using the cost method 7.6 2.3 Total investments in unconsolidated entities $ 35.6 $ 28.8 Morningstar Japan K.K. Morningstar Japan K.K. (MJKK) develops and markets products and services customized for the Japanese market. MJKK’s shares are traded on the Tokyo Stock Exchange under the ticker 47650. We account for our investment in MJKK using the equity method. The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: As of December 31 2015 2014 Morningstar’s approximate ownership of MJKK 34 % 34 % Approximate market value of Morningstar’s ownership in MJKK: Japanese yen (¥ in millions) ¥ 8,200.5 ¥ 7,347.4 Equivalent U.S. dollars ($ in millions) $ 68.1 $ 61.3 Other Equity Method Investments . As of December 31, 2015 and 2014 , other equity method investments consist of our investment in Inquiry Financial Europe AB (Inquiry Financial) and YCharts, Inc. (YCharts). Inquiry Financial is a provider of sell-side consensus estimate data. Our ownership interest in Inquiry Financial was approximately 34% as of December 31, 2015 and 2014 . YCharts is a technology company that provides stock research and analysis. Our ownership interest in YCharts was approximately 22% as of December 31, 2015 and 2014 . During 2014, we recorded an impairment loss of $1.7 million on our investment in an unconsolidated entity. We did not record any impairment losses on these investments in 2015 or 2013. |
Property, Equipment, and Capita
Property, Equipment, and Capitalized Software | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment, and Capitalized Software | Property, Equipment, and Capitalized Software The following table shows our property, equipment, and capitalized software summarized by major category: As of December 31 (in millions) 2015 2014 Computer equipment $ 60.3 $ 53.4 Capitalized software 144.0 87.8 Furniture and fixtures 24.3 23.2 Leasehold improvements 61.9 54.3 Telephone equipment 2.1 1.9 Construction in progress 11.7 29.9 Property, equipment, and capitalized software, at cost 304.3 250.5 Less accumulated depreciation (169.8 ) (132.9 ) Property, equipment, and capitalized software, net $ 134.5 $ 117.6 The following table shows the amount of capitalized software development costs included in construction in progress: As of December 31 (in millions) 2015 2014 Capitalized software development costs not yet placed into service $ — $ 18.1 The following table summarizes our depreciation expense: (in millions) 2015 2014 2013 Depreciation expense $ 42.4 $ 32.6 $ 24.2 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: Minimum Future Rental Commitments (in millions) 2016 $ 20.9 2017 20.3 2018 18.1 2019 13.5 2020 13.1 Thereafter 35.7 Total $ 121.6 The following table summarizes our rent expense including taxes, insurance, and related operating costs: (in millions) 2015 2014 2013 Rent expense $ 27.1 $ 24.5 $ 22.2 Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. As of December 31 (in millions) 2015 2014 Deferred rent $ 28.5 $ 29.1 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 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, restricted stock units, restricted stock, performance share awards, and stock options. We granted restricted stock units, restricted stock, and stock options under the 2004 Plan. All of our employees and our non-employee directors are eligible for awards under the 2011 Plan. Grants awarded under the 2011 Plan or the 2004 Plan that are forfeited, canceled, settled, or otherwise terminated without a distribution of shares, or shares withheld by us in connection with the exercise of options, will be available for awards under the 2011 Plan. Any shares subject to awards under the 2011 Plan, but not under the 2004 Plan, that are withheld by us in connection with the payment of any required income tax withholding will be available for awards under the 2011 Plan. The following table summarizes the number of shares available for future grants under our 2011 Plan: As of December 31 (in millions) 2015 Shares available for future grants 4.0 Accounting for Stock-Based Compensation Awards The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: Year ended December 31 (in millions) 2015 2014 2013 Restricted stock units $ 16.1 $ 16.3 $ 14.1 Restricted stock 0.1 0.4 0.4 Performance share awards 1.0 0.5 — Stock options 0.2 0.4 0.5 Total stock-based compensation expense $ 17.4 $ 17.6 $ 15.0 Income tax benefit related to the stock-based compensation expense $ 5.0 $ 5.1 $ 4.0 The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years: Year ended December 31 (in millions) 2015 2014 2013 Cost of revenue $ 8.1 $ 7.8 $ 6.8 Sales and marketing 2.2 2.1 2.0 General and administrative 7.1 7.7 6.2 Total stock-based compensation expense $ 17.4 $ 17.6 $ 15.0 The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2015 and the expected number of months over which the expense will be recognized: Unrecognized stock-based compensation expense (in millions) Weighted average expected amortization period (months) Restricted stock units $ 31.4 31 Performance share awards 1.2 24 Total unrecognized stock-based compensation expense $ 32.6 31 In accordance with FASB ASC 718, Compensation—Stock Compensation , we estimate forfeitures of employee stock-based awards and recognize compensation cost only for those awards expected to vest. Our largest annual equity grants typically have vesting dates in the second quarter. We adjust the stock-based compensation expense annually in the third quarter to reflect those awards that ultimately vested and update our estimate of the forfeiture rate that will be applied to awards not yet vested. Restricted Stock Units Restricted stock units represent the right to receive a share of Morningstar common stock when that unit vests. Restricted stock units granted to employees vest ratably over a four -year period. Restricted stock units granted to non-employee directors vest ratably over a three -year period. For restricted stock units granted through December 31, 2008, employees could elect to defer receipt of the Morningstar common stock issued upon vesting of the restricted stock unit. We measure the fair value of our restricted stock units on the date of grant based on the closing market price of the underlying common stock on the day prior to grant. We amortize that value to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. The following table summarizes restricted stock unit activity during the past three years: Restricted Stock Units (RSUs) Unvested Vested but Deferred Total Weighted Average Grant Date Value per RSU RSUs Outstanding - January 1, 2013 727,145 18,782 745,927 $ 53.37 Granted 287,848 — 287,848 72.04 Dividend equivalents 2,773 157 2,930 57.39 Vested (278,549 ) — (278,549 ) 50.41 Issued — (2,257 ) (2,257 ) 49.40 Forfeited (59,215 ) — (59,215 ) 57.58 RSUs Outstanding - December 31, 2013 680,002 16,682 696,684 $ 62.02 Granted 279,524 — 279,524 72.68 Dividend equivalents 2,621 150 2,771 55.70 Vested (268,115 ) — (268,115 ) 58.91 Issued — (2,054 ) (2,054 ) 53.54 Forfeited (38,098 ) — (38,098 ) 65.21 RSUs Outstanding - December 31, 2014 655,934 14,778 670,712 $ 67.51 Granted 235,213 — 235,213 77.17 Dividend equivalents 1,409 146 1,555 56.42 Vested (253,038 ) — (253,038 ) 64.65 Forfeited (66,992 ) — (66,992 ) 53.61 RSUs Outstanding - December 31, 2015 572,526 14,924 587,450 $ 72.14 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 December 31, 2015 : As of December 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 34,713 Unamortized expense, based on current performance levels (in millions) $ 1.2 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. In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. All options granted in 2011 have an exercise price equal to the fair market value on the grant date. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: Assumptions for Black-Scholes Option Pricing Model Expected life (years): 7.4 Volatility factor: 35.1 % Dividend yield: 0.35 % Interest rate: 2.87 % The following tables summarize stock option activity in the past three years for our various stock option grants. The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. 2015 2014 2013 Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Options outstanding—beginning of year — $ — 179,559 $ 21.47 282,695 $ 20.55 Granted — — — — — — Canceled — — (150 ) 22.24 (250 ) 21.48 Exercised — — (179,409 ) 22.08 (102,886 ) 21.09 Options outstanding—end of year — $ — — $ — 179,559 $ 21.47 Options exercisable—end of year — $ — — $ — 179,559 $ 21.47 2015 2014 2013 All Other Option Grants, Excluding Activity Shown Above Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Options outstanding—beginning of year 169,810 $ 40.20 253,972 $ 36.48 391,784 $ 28.98 Granted — — — — — — Canceled — — (526 ) 38.61 (1,352 ) 16.19 Exercised (117,714 ) 32.91 (83,636 ) 30.82 (136,460 ) 16.84 Options outstanding—end of year 52,096 $ 57.52 169,810 $ 40.20 253,972 $ 36.48 Options exercisable—end of year 52,096 $ 57.52 154,864 $ 38.53 219,449 $ 33.18 The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: (in millions) 2015 2014 2013 Intrinsic value of options exercised $ 5.1 $ 12.0 $ 12.8 The table below shows additional information for options outstanding and exercisable as of December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) $57.28 - $59.35 52,096 4.77 $ 57.52 $ 1.2 52,096 4.77 $ 57.52 $ 1.2 Vested or Expected to Vest $57.28 - $59.35 52,096 4.77 $ 57.52 $ 1.2 The aggregate intrinsic value in the table above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on December 31, 2015 . The intrinsic value is based on our closing stock price of $81.18 on December 30, 2015. Excess Tax Benefits Related to Stock-Based Compensation FASB ASC 718, Compensation—Stock Compensation, requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return that exceeds the amount of tax benefit related to the compensation cost recognized in our Consolidated Statement of Income. The following table summarizes our excess tax benefits for the past three years: (in millions) 2015 2014 2013 Excess tax benefits related to stock-based compensation $ 2.6 $ 4.4 $ 5.9 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Plan [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan We sponsor a defined contribution 401(k) plan, which allows our U.S.-based employees to voluntarily contribute pre-tax dollars up to a maximum amount allowable by the U.S. Internal Revenue Service. In 2015 , 2014 , and 2013 , we made matching contributions to our 401(k) plan in the United States in an amount equal to 75 cents for every dollar of an employee's contribution, up to a maximum of 7% of the employee's compensation in the pay period. The following table summarizes our matching contributions: (in millions) 2015 2014 2013 401(k) matching contributions $ 8.3 $ 7.5 $ 6.9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense and Effective Tax Rate The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2015 , 2014 , and 2013 : (in millions) 2015 2014 2013 Income before income taxes and equity in net income of unconsolidated entities $ 193.7 $ 114.0 $ 178.0 Equity in net income of unconsolidated entities 1.8 — 1.4 Net loss attributable to the noncontrolling interest (0.2 ) — 0.1 Total $ 195.3 $ 114.0 $ 179.5 Income tax expense $ 62.7 $ 35.7 $ 56.0 Effective tax rate 32.1 % 31.3 % 31.2 % The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: 2015 2014 2013 (in millions, except percentages) Amount % Amount % Amount % Income tax expense at U.S. federal rate $ 68.4 35.0 % $ 39.9 35.0 % $ 62.8 35.0 % State income taxes, net of federal income tax benefit 6.6 3.4 2.1 1.9 3.0 1.7 Equity in net income of unconsolidated subsidiaries — — (1.4 ) (1.2 ) — — Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses (2.0 ) (1.0 ) (0.6 ) (0.5 ) (1.8 ) (1.0 ) Difference between U.S. federal statutory and foreign tax rates (4.4 ) (2.3 ) (4.0 ) (3.5 ) (2.5 ) (1.4 ) Change in unrecognized tax benefits (1.4 ) (0.7 ) 1.5 1.3 (0.2 ) (0.1 ) Credits and incentives (5.1 ) (2.6 ) (2.9 ) (2.6 ) (4.4 ) (2.5 ) Recognition of deferred tax assets — — (0.1 ) (0.1 ) (1.4 ) (0.8 ) Other - net 0.6 0.3 1.2 1.0 0.5 0.3 Total income tax expense $ 62.7 32.1 % $ 35.7 31.3 % $ 56.0 31.2 % Income tax expense consists of the following: Year ended December 31 (in millions) 2015 2014 2013 Current tax expense: U.S. Federal $ 42.8 $ 20.8 $ 42.8 State 8.3 2.0 3.9 Non-U.S. 8.7 9.6 10.5 Current tax expense 59.8 32.4 57.2 Deferred tax expense (benefit): U.S. Federal 4.3 3.7 2.6 State 1.8 1.3 0.8 Non-U.S. (3.2 ) (1.7 ) (4.6 ) Deferred tax expense (benefit), net 2.9 3.3 (1.2 ) Income tax expense $ 62.7 $ 35.7 $ 56.0 The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: Year ended December 31 (in millions) 2015 2014 2013 U.S. $ 160.6 $ 80.4 $ 144.1 Non-U.S. 33.1 33.6 33.9 Income before income taxes and equity in net income of unconsolidated entities $ 193.7 $ 114.0 $ 178.0 Deferred Tax Assets and Liabilities We recognize deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and their tax basis. The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: As of December 31 (in millions) 2015 2014 Deferred tax assets: Stock-based compensation expense $ 3.1 $ 3.3 Accrued liabilities 14.3 13.6 Deferred revenue 0.9 — Net operating loss carryforwards - U.S. federal and state 7.6 10.5 Net operating loss carryforwards - Non-U.S. 3.7 7.7 Credits and incentive carryforwards 0.6 — Deferred royalty revenue 0.3 0.4 Allowance for doubtful accounts 1.0 0.9 Deferred rent 8.9 10.0 Unrealized exchange losses, net 0.4 — Total deferred tax assets 40.8 46.4 Deferred tax liabilities: Acquired intangible assets (13.2 ) (16.4 ) Property, equipment, and capitalized software (28.1 ) (23.2 ) Unrealized exchange gains, net — (0.2 ) Prepaid expenses (4.3 ) (3.7 ) Investments in unconsolidated entities (13.7 ) (12.8 ) Other (0.1 ) (0.4 ) Total deferred tax liabilities (59.4 ) (56.7 ) Net deferred tax liability before valuation allowance (18.6 ) (10.3 ) Valuation allowance (1.2 ) (6.7 ) Net deferred tax liability $ (19.8 ) $ (17.0 ) The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: As of December 31 (in millions) 2015 2014 Deferred tax asset, net - current $ — $ — Deferred tax liability, net - non-current (19.8 ) (17.0 ) Net deferred tax liability $ (19.8 ) $ (17.0 ) As a result of our retrospective adoption of ASU 2015-17, Balance Sheet Classification of Deferred Taxes , our December 31, 2014 Consolidated Balance Sheet reflects a $9.0 million reclassification of current deferred tax assets to non-current liabilities. The following table summarizes our U.S. net operating loss (NOL) carryforwards: As of December 31 (in millions) 2015 2014 Expiration Dates Expiration Dates U.S. federal NOLs subject to expiration dates $ 21.6 2023-2034 $ 30.0 2023-2034 The decrease in U.S. NOL carryforwards as of December 31, 2015 compared with 2014 primarily reflects the use of NOL carryforwards in our U.S. operations. The following table summarizes our NOL carryforwards for our non-U.S. operations: As of December 31 (in millions) 2015 2014 Non-U.S. NOLs subject to expiration dates from 2019 through 2035 $ 2.9 $ 5.2 Non-U.S. NOLs with no expiration date 15.5 32.7 Total $ 18.4 $ 37.9 Non-U.S. NOLs not subject to valuation allowances $ 12.1 $ 5.1 The decrease in non-U.S. NOL carryforwards as of December 31, 2015 compared with 2014 primarily reflects the use of NOL carryforwards. We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries aggregating approximately $142.7 million as of December 31, 2015 , because these earnings have been permanently reinvested. It is not practicable to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. In assessing the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We have recorded a valuation allowance against all but approximately $12.1 million of the non-U.S. NOLs, reflecting the likelihood that the benefit of these NOLs will not be realized. Uncertain Tax Positions We conduct business globally and as a result, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. In the normal course of business we are subject to examination by tax authorities throughout the world. The open tax years for our U.S. Federal tax returns and most state tax returns include the years 2008 to the present. We are currently under audit by federal, state and local tax authorities in the United States as well as tax authorities in certain non-U.S. jurisdictions. It is likely that the examination phase of some of these U.S. federal, state, local, and non-U.S. audits will conclude in 2016 . It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. As of December 31, 2015 , our Consolidated Balance Sheet included a current liability of $4.2 million and a non-current liability of $6.0 million for unrecognized tax benefits. As of December 31, 2014, our Consolidated Balance Sheet included a current liability of $5.1 million and a non-current liability of $6.6 million for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: (in millions) 2015 2014 Gross unrecognized tax benefits - beginning of the year $ 11.9 $ 13.0 Increases as a result of tax positions taken during a prior-year period 4.4 0.9 Decreases as a result of tax positions taken during a prior-year period (0.7 ) (0.1 ) Increases as a result of tax positions taken during the current period 2.4 2.0 Decreases relating to settlements with tax authorities (1.8 ) (2.4 ) Reductions as a result of lapse of the applicable statute of limitations (1.7 ) (1.5 ) Gross unrecognized tax benefits - end of the year $ 14.5 $ 11.9 In 2015 , we recorded a net increase of $6.0 million of gross unrecognized tax benefits before settlements and lapses of statutes of limitations, of which $2.1 million increased our income tax expense by $2.1 million . In addition, we reduced our unrecognized tax benefits by $3.5 million for settlements and lapses of statutes of limitations, of which $3.4 million decreased our income tax expense by $3.2 million . As of December 31, 2015 , we had $14.5 million of gross unrecognized tax benefits, of which $10.5 million , if recognized, would reduce our effective income tax rate and decrease our income tax expense by $9.4 million . We record interest and penalties related to uncertain tax positions as part of our income tax expense. The following table summarizes our gross liability for interest and penalties: As of December 31 (in millions) 2015 2014 Liabilities for interest and penalties $ 1.2 $ 1.5 We recorded the decrease in the liability, net of any tax benefits, to income tax expense in our Consolidated Statement of Income in 2015 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 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 | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Quarterly Dividend and Share Repurchase Programs | Share Repurchase Program We have an ongoing authorization, originally approved by our board of directors in September 2010, and subsequently amended, to repurchase up to $1.0 billion in shares of our outstanding common stock. The authorization expires on December 31, 2017. We may repurchase shares from time to time at prevailing market prices on the open market or in private transactions in amounts that we deem appropriate. As of December 31, 2015 , we had repurchased a total of 9,383,132 shares for $623.5 million under this authorization, leaving approximately $376.5 million available for future repurchases. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The original effective date for ASU 2014-09 would have required the Company to adopt beginning on January 1, 2017. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. The new standard is effective for us on January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU No. 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. On September 28, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement Period Adjustments , which eliminates the requirement to restate prior period financial statements for measurement period adjustments. The new standard requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The new standard is effective for us on January 1, 2016. We elected to early adopt ASU No. 2015-16 in the quarter ended December 31, 2015. The adoption of ASU No. 2015-16 did not have a material effect on our consolidated financial statements. On November 20, 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position and apply to all entities that present a classified statement of financial position. The new standard is effective for us on January 1, 2017. The standard permits the use of either the prospective or retrospective method. We elected to early adopt ASU No. 2015-17 retrospectively in the quarter ended December 31, 2015. The adoption of ASU No. 2015-17 did not have a material effect on our consolidated financial statements. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (unaudited) 2014 2015 (in millions except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 181.2 $ 189.4 $ 193.1 $ 196.4 $ 189.8 $ 202.1 $ 195.3 $ 201.6 Total operating expense 142.7 214.2 147.8 149.8 145.3 152.4 149.1 151.5 Operating income (loss) 38.5 (24.8 ) 45.3 46.6 44.5 49.7 46.2 50.1 Non-operating income (expense), net 0.9 5.9 (0.3 ) 1.8 (0.4 ) 0.6 1.4 1.4 Income (loss) before income taxes and equity in net income of unconsolidated entities 39.4 (18.9 ) 45.0 48.4 44.1 50.3 47.6 51.5 Equity in net income (loss) of unconsolidated entities 0.6 0.5 0.3 (1.4 ) 0.5 0.6 0.5 0.3 Income tax expense (benefit) 13.7 (8.6 ) 15.1 15.5 14.8 18.7 14.6 14.5 Consolidated net income (loss) 26.3 (9.8 ) 30.2 31.5 29.8 32.2 33.5 37.3 Net (income) loss attributable to the noncontrolling interests 0.1 — — — (0.1 ) — — — Net income (loss) attributable to Morningstar, Inc. $ 26.4 $ (9.8 ) $ 30.2 $ 31.5 $ 29.7 $ 32.2 $ 33.5 $ 37.3 Net income (loss) per share attributable to Morningstar, Inc. Basic $ 0.59 $ (0.22 ) $ 0.67 $ 0.71 $ 0.67 $ 0.73 $ 0.76 $ 0.85 Diluted $ 0.58 $ (0.22 ) $ 0.67 $ 0.71 $ 0.67 $ 0.72 $ 0.76 $ 0.85 Dividends per common share: Dividends declared per common share $ 0.17 $ 0.17 $ 0.17 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.22 Dividends paid per common share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.19 $ 0.19 $ 0.19 $ 0.19 Weighted average shares outstanding: Basic 44.8 44.8 44.7 44.4 44.3 44.3 44.2 43.8 Diluted 45.1 44.8 44.9 44.5 44.5 44.4 44.3 43.9 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. We conduct our business operations through wholly owned or majority-owned operating subsidiaries. The accompanying consolidated financial statements include the accounts of Morningstar, Inc. and our subsidiaries. We consolidate assets, liabilities, and results of operations of subsidiaries in which we have a controlling interest and eliminate all significant intercompany accounts and transactions. We account and report the noncontrolling (minority) interest in our Consolidated Financial Statements in accordance with FASB ASC 810, Consolidation . A noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to the parent company. We report the noncontrolling interest in our Consolidated Balance Sheet within equity separate from the shareholders' equity attributable to Morningstar, Inc. In addition, we present the net income (loss) and comprehensive income (loss) attributable to Morningstar, Inc.'s shareholders and the noncontrolling interest in our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, and Consolidated Statements of Equity. We account for investments in entities in which we exercise significant influence, but do not control, using the equity method. As part of our investment management operations, we manage certain funds outside of the United States that are considered variable interest entities. For the majority of these variable interest entities, we do not have a variable interest in them. In cases where we do have a variable interest, we are not the primary beneficiary. Accordingly, we do not consolidate any of these variable interest entities. |
Comprehensive Income | Comprehensive Income. In accordance with ASU No. 2011-05, Presentation of Comprehensive Income, we present the total of comprehensive income, the components of net income, and the components of other comprehensive income (OCI) in two separate but consecutive statements, our Consolidated Statements of Income and separately, our Consolidated Statements of Comprehensive Income. In addition, effective January 1, 2013, we adopted FASB ASU No. 2013-02, Comprehensive Income (Topic 220) . We show the effects of items reclassified out of each component of accumulated other comprehensive income to net income on the face of the financial statement along with net income. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. Actual results may differ from these estimates. |
Reclassifications | Reclassifications . Certain amounts reported in prior years have been reclassified to conform to the current year presentation. Separately, as a result of our move to a more centralized structure in 2013 (including new positions created, changes in focus for some existing roles, and the refinement of employee cost categorizations as we moved to a more centralized structure), approximately 180 net positions shifted from the general and administrative and sales and marketing categories to cost of revenue. These changes added approximately $14 million of compensation expense to cost of revenue in 2014 versus 2013, and reduced the compensation expense included in the sales and marketing and general and administrative categories by approximately $8 million and $6 million , respectively, in the same period. These changes did not affect total operating expense or operating income for any of the periods presented. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consists of cash and investments with original maturities of three months or less. We state them at cost, which approximates fair value. We state the portion of our cash equivalents that are invested in money market funds at fair value, as these funds are actively traded and have quoted market prices. |
Investments | Investments. We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: held-to-maturity, trading, and available-for-sale. • Held-to-maturity: We classify certain investments, primarily certificates of deposit, as held-to-maturity securities, based on our intent and ability to hold these securities to maturity. We record held-to-maturity investments at amortized cost in our Consolidated Balance Sheets. • Trading: We classify certain other investments, primarily equity securities, as trading securities, primarily to satisfy the requirements of one of our wholly owned subsidiaries, which is a registered broker-dealer. We include realized and unrealized gains and losses associated with these investments as a component of our operating income in our Consolidated Statements of Income. We record these securities at their fair value in our Consolidated Balance Sheets. • Available-for-sale: Investments not considered held-to-maturity or trading securities are classified as available-for-sale securities. Available-for-sale securities primarily consist of equity securities, exchange-traded funds, and mutual funds. We report unrealized gains and losses for available-for-sale securities as other comprehensive income (loss), net of related income taxes. We record these securities at their fair value in our Consolidated Balance Sheets. |
Fair Value Measurements | Fair Value Measurements. We follow FASB ASC 820, Fair Value Measurements . FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Under FASB ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. The standard does not expand the use of fair value in any new circumstances and does not require any new fair value measurements. FASB ASC 820 uses a fair value hierarchy based on three broad levels of valuation inputs: • Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities that the company has the ability to access. • Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3: Valuations based on inputs that are unobservable and significant to the overall fair value measurement. We provide additional information about our cash equivalents and investments that are subject to valuation under FASB ASC 820 in Note 6 . We account for our investments in accordance with FASB ASC 320, Investments—Debt and Equity Securities. We classify our investments into three categories: available-for-sale, held-to-maturity, and trading. Our investment portfolio consists of stocks, bonds, options, mutual funds, money market funds, or exchange-traded products that replicate the model portfolios and strategies created by Morningstar. These investment accounts may also include exchange-traded products where Morningstar is an index provider. |
Concentration of Credit Risk | Concentration of Credit Risk. No single customer is large enough to pose a significant credit risk to our operations or financial condition. For the years ended December 31, 2015 , 2014 , and 2013 , no single customer represented 5% or more of our consolidated revenue. If receivables from our customers become delinquent, we begin a collections process. We maintain an allowance for doubtful accounts based on our estimate of the probable losses of accounts receivable. |
Property, Equipment, and Depreciation | Property, Equipment, and Depreciation. We state property and equipment at historical cost, net of accumulated depreciation. We depreciate property and equipment primarily using the straight-line method based on the useful life of the asset, which ranges from three to seven years. We amortize leasehold improvements over the lease term or their useful lives, whichever is shorter. |
Computer Software and Internal Product Development Costs | Computer Software and Internal Product Development Costs. We capitalize certain costs in accordance with FASB ASC 350-40, Internal-Use Software , FASB ASC 350-50, Website Development Costs, and FASB ASC 985, Software . Internal product development costs mainly consist of employee costs for developing new web-based products and certain major enhancements of existing products. We amortize these costs on a straight-line basis over the estimated economic life, which is generally three to five years. We include capitalized software development costs related to projects that have not been placed into service in our construction in progress balance. The table below summarizes our capitalized software development costs for the past three years: (in millions) 2015 2014 2013 Capitalized software development costs $ 21.8 $ 18.8 $ 8.1 |
Business Combinations | Business Combinations . Over the past several years, we have acquired companies that complement our business operations. For each acquisition, we allocate the purchase price to the assets acquired, liabilities assumed, and goodwill. We follow FASB ASC 805, Business Combinations . We recognize and measure the fair value of the acquired operation as a whole, as well as the assets acquired and liabilities assumed, at their full fair values as of the date we obtain control, regardless of the percentage ownership in the acquired operation or how the acquisition was achieved. We expense direct costs related to the business combination, such as advisory, accounting, legal, valuation, and other professional fees, as incurred. We recognize restructuring costs, including severance and relocation for employees of the acquired entity, as post-combination expenses unless the target entity meets the criteria of FASB ASC 420, Exit or Disposal Cost Obligations , on the acquisition date. As part of the purchase price allocation, we follow the requirements of FASB ASC 740, Income Taxes. This includes establishing deferred tax assets or liabilities reflecting the difference between the values assigned for financial statement purposes and income tax purposes. In certain acquisitions, the goodwill resulting from the purchase price allocation may not be deductible for income tax purposes. FASB ASC 740 prohibits recognition of a deferred tax asset or liability for temporary differences in goodwill if goodwill is not amortizable and deductible for tax purposes. |
Goodwill | Goodwill . Changes in the carrying amount of our recorded goodwill are mainly the result of business acquisitions, divestitures, and the effect of foreign currency translations. In accordance with FASB ASC 350, Intangibles—Goodwill and Other , we do not amortize goodwill; instead, goodwill is subject to an impairment test annually, or whenever indicators of impairment exist. An impairment would occur if the carrying amount of a reporting unit exceeded the fair value of that reporting unit. We performed annual impairment reviews in the fourth quarter of 2015 , 2014 , and 2013 . We did not record any impairment losses in 2015 , 2014 , or 2013 . |
Intangible Assets | Intangible Assets. We amortize intangible assets using the straight-line method over their estimated useful lives, which range from one to 25 years. We have no intangible assets with indefinite useful lives. In accordance with FASB ASC 360-10-35, Subsequent Measurement—Impairment or Disposal of Long Lived Assets , we review intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the value of future undiscounted cash flows is less than the carrying amount of an asset group, we record an impairment loss based on the excess of the carrying amount over the fair value of the asset group. We did not record any impairment losses in 2015 , 2014 , or 2013 . |
Revenue Recognition | Revenue Recognition. We recognize revenue in accordance with SEC SAB Topic 13, Revenue Recognition , ASC 605-25, Revenue Recognition: Multiple Element Arrangements , and ASC 985-605, Software: Revenue Recognition . We recognize revenue when all of the following conditions are met: • There is persuasive evidence of an arrangement, as evidenced by a signed contract; • Delivery of our products and services has taken place. If arrangements include an acceptance provision, we generally begin recognizing revenue when we receive customer acceptance; • The amount of fees to be paid by the customer is fixed or determinable; and • The collectibility of the fees is reasonably assured. We generate revenue through sales of Morningstar Data, Morningstar Advisor Workstation (including Morningstar Office), Morningstar Direct, Morningstar Research, Premium Membership subscriptions for Morningstar.com, our structured credit research and ratings offerings, and a variety of other investment-related products and services. We generally structure the revenue agreements for these offerings as licenses or subscriptions. We recognize revenue from licenses and subscription sales ratably as we deliver the product or service and over the service obligation period defined by the terms of the customer contract. For new-issue ratings and analysis for commercial mortgage- backed securities (CMBS), we charge asset-based fees that are paid by the issuer on the rated balance of the transaction and recognize the revenue immediately upon issuance. We also generate revenue from Internet advertising, primarily from “impression-based” contracts. For advertisers who use our cost-per-impression pricing, we charge fees each time we display their ads on our site. Our Investment Advisory business includes a broad range of services. Pricing for consulting services is based on the scope of work and the level of service provided, and includes asset-based fees for work we perform that involves investment management or acting as a subadvisor to investment portfolios. In arrangements that involve asset-based fees, we generally invoice clients quarterly in arrears based on average assets for the quarter. We recognize asset-based fees once the fees are fixed and determinable assuming all other revenue recognition criteria are met. Our Workplace Solutions offerings help retirement plan participants plan and invest for retirement. We offer these services both through retirement plan providers (typically third-party asset management companies that offer proprietary mutual funds) and directly to plan sponsors (employers that offer retirement plans to their employees). For our Workplace Solutions offerings, we provide both a hosted solution as well as proprietary installed software advice solution. Clients can integrate the installed customized software into their existing systems to help investors accumulate wealth, transition into retirement, and manage income during retirement. The revenue arrangements for Workplace Solutions generally extend over multiple years. Our contracts may include one-time setup fees, implementation fees, technology licensing and maintenance fees, asset-based fees for managed retirement accounts, fixed and variable fees for advice and guidance, or a combination of these fee structures. Upon customer acceptance, we recognize revenue ratably over the term of the agreement. We recognize asset-based fees and variable fees in excess of any minimum once the value is fixed and determinable. Some of our revenue arrangements combine multiple products and services. These products and services may be provided at different points in time or over different time periods within the same arrangement. We allocate fees to the separate deliverables based on the deliverables’ relative selling price, which is generally based on the price we charge when the same deliverable is sold separately. We record taxes imposed on revenue-producing transactions (such as sales, use, value-added, and some excise taxes) on a net basis; therefore, we exclude such taxes from revenue in our Consolidated Statements of Income. Deferred revenue represents the portion of licenses or subscriptions billed or collected in advance of the service being provided which we expect to recognize as revenue in future periods. Certain arrangements may have cancellation or refund provisions. If we make a refund, it typically reflects the amount collected from a customer for which we have not yet provided services. The refund therefore results in a reduction of deferred revenue. |
Sales Commissions | Sales Commissions. Through December 31, 2013, we paid sales commissions based on a formula driven by the total contract value of sales opportunities closed, with any subsequent adjustments (such as clawbacks for contract cancellations) reflected in future commission payouts. We considered the corresponding commission expense an incremental direct acquisition cost and treated it as a deferred charge, which we expensed over the term of the underlying sales contracts. In the first quarter of 2014, we modified our sales incentive plan. The revised plan is based on a combination of net new sales and specific business objectives not solely tied to revenue growth. Because of this new structure and the discretion involved in determining the related incentives, we started expensing sales commissions as incurred instead of amortizing them over the contract terms. However, we continued to amortize the deferred charge capitalized in connection with sales commissions paid in 2013 and previous periods as part of the previous incentive plan |
Advertising Costs | Advertising Costs. Advertising costs include expenses incurred for various print and Internet ads, search engine fees, and direct mail campaigns. We expense advertising costs as incurred. The table below summarizes our advertising expense for the past three years: (in millions) 2015 2014 2013 Advertising expense $ 8.3 $ 7.5 $ 6.9 |
Stock-Based Compensation Expense | Stock-Based Compensation Expense. We account for our stock-based compensation expense in accordance with FASB ASC 718, Compensation—Stock Compensation . Our stock-based compensation expense reflects grants of restricted stock units, restricted stock, performance share awards, and stock options. We measure the fair value of our restricted stock units, restricted stock, and performance share awards on the date of grant based on the closing market price of Morningstar's common stock on the day prior to grant. For stock options, we estimate the fair value of our stock options on the date of grant using a Black-Scholes option-pricing model. We amortize the fair values to stock-based compensation expense, net of estimated forfeitures, ratably over the vesting period. We estimate expected forfeitures of all employee stock-based awards and recognize compensation cost only for those awards expected to vest. We determine forfeiture rates based on historical experience and adjust the estimated forfeitures to actual forfeiture experience as needed. |
Liability for Sabbatical Leave | Liability for Sabbatical Leave. In certain of our operations, we offer employees a sabbatical leave. Although the sabbatical policy varies by region, Morningstar's full-time employees are generally eligible for six weeks of paid time off after four years of continuous service. We account for our sabbatical liability in accordance with FASB ASC 710-10-25 , Compensated Absences . We record a liability for employees' sabbatical benefits over the period employees earn the right for sabbatical leave and include this liability in Accrued Compensation in our Consolidated Balance Sheet. |
Income Taxes | Income Taxes. We record deferred income taxes for the temporary differences between the carrying amount of assets and liabilities for financial statement purposes and tax purposes in accordance with FASB ASC 740, Income Taxes . FASB ASC 740 prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, and disclosure for uncertain tax positions. We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in our Consolidated Statements of Income. We classify liabilities related to unrecognized tax benefits as either current or long-term liabilities in our Consolidated Balance Sheet, depending on when we expect to make payment. |
Income per Share | Income per Share . We compute and present income per share in accordance with FASB ASC 260, Earnings Per Share . The difference between weighted average shares outstanding and diluted shares outstanding mainly reflects the dilutive effect associated with our stock-based compensation plans. We further compute income per share in accordance with FASB ASC 260-10-45-59A, Participating Securities and the Two-Class Method . Under the two-class method, we allocate earnings between common stock and participating securities. The two-class method includes an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared and undistributed earnings for the period. For purposes of calculating earnings per share, we reduce our reported net earnings by the amount allocated to participating securities to arrive at the earnings allocated to common stock shareholders. ASC 260-10-45-59A requires the dilutive effect of participating securities to be calculated using the more dilutive of the treasury stock or the two-class method. We have determined the two-class method to be the more dilutive. As such, we adjusted the earnings allocated to common stock shareholders in the basic earnings per share calculation for the reallocation of undistributed earnings to participating securities to calculate diluted earnings per share. |
Foreign Currency | Foreign Currency. We translate the financial statements of non-U.S. subsidiaries to U.S. dollars using the period-end exchange rate for assets and liabilities and an average exchange rate for revenue and expense. We use the local currency as the functional currency for all of our non-U.S. subsidiaries. We record translation adjustments for non-U.S. subsidiaries as a component of “Other comprehensive income (loss)” in our Consolidated Statements of Comprehensive Income. We include exchange gains and losses arising from transactions denominated in currencies other than the functional currency in “Other income (expense), net” in our Consolidated Statements of Income. |
Segment Reporting | Segment Information We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have a single reportable segment, all required financial segment information can be found directly in the Consolidated Financial Statements. The accounting policies for our reportable segment are the same as those described in Note 2 . We evaluate the performance of our reporting segment based on revenue and operating income. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Advertising Expense [Table Text Block] | The table below summarizes our advertising expense for the past three years: (in millions) 2015 2014 2013 Advertising expense $ 8.3 $ 7.5 $ 6.9 |
Capitalized Software Development Costs [Table Text Block] | The table below summarizes our capitalized software development costs for the past three years: (in millions) 2015 2014 2013 Capitalized software development costs $ 21.8 $ 18.8 $ 8.1 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows how we reconcile our net income and the number of shares used in computing basic and diluted income per share: (in millions, except per share amounts) 2015 2014 2013 Basic net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc.: $ 132.6 $ 78.3 $ 123.5 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 $ 132.6 $ 78.3 $ 123.5 Weighted average common shares outstanding 44.2 44.7 46.2 Basic net income per share attributable to Morningstar, Inc. $ 3.00 $ 1.75 $ 2.68 Diluted net income per share attributable to Morningstar, Inc.: Numerator for basic net income per share — undistributed and distributed earnings available to common shareholders $ 132.6 $ 78.3 $ 123.5 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 $ 132.6 $ 78.3 $ 123.5 Weighted average common shares outstanding 44.2 44.7 46.2 Net effect of dilutive stock options and restricted stock units 0.1 0.2 0.3 Weighted average common shares outstanding for computing diluted income per share 44.3 44.9 46.5 Diluted net income per share attributable to Morningstar, Inc. $ 3.00 $ 1.74 $ 2.66 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table shows the number of weighted average restricted stock units and performance share awards excluded from our calculation of diluted earnings per share because their inclusion would have been anti-dilutive: (in thousands) 2015 2014 2013 Weighted average restricted stock units 38 47 17 Weighted average performance share awards 4 6 — Total 42 53 17 Stock options could be included in the calculation in the future. |
Segment and Geographical Area29
Segment and Geographical Area Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The tables below summarize our revenue and long-lived assets by geographical area: External revenue by geographical area Year ended December 31 (in millions) 2015 2014 2013 United States $ 585.1 $ 550.8 $ 500.8 United Kingdom 64.2 61.8 56.2 Continental Europe 58.8 62.7 57.6 Australia 30.5 35.0 35.3 Canada 27.9 30.8 31.8 Asia 18.5 15.8 13.9 Other 3.8 3.2 2.7 Total International 203.7 209.3 197.5 Consolidated revenue $ 788.8 $ 760.1 $ 698.3 Long-lived assets by geographical area As of December 31 (in millions) 2015 2014 United States $ 116.9 $ 98.1 United Kingdom 8.6 8.1 Continental Europe 2.2 2.1 Australia 0.9 0.8 Canada 0.7 0.9 Asia 5.2 7.5 Other — 0.1 Total International 17.6 19.5 Consolidated property, equipment, and capitalized software, net $ 134.5 $ 117.6 |
Investments and Fair Value Me30
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Investments | We classify our investment portfolio as shown below: As of December 31 (in millions) 2015 2014 Available-for-sale $ 17.3 $ 13.2 Held-to-maturity 15.3 17.9 Trading securities 8.9 8.3 Total $ 41.5 $ 39.4 |
Unrealized Gain (Loss) on Investments | The following table shows the cost, unrealized gains (losses), and fair values related to investments classified as available-for-sale and held-to-maturity: As of December 31, 2015 As of December 31, 2014 (in millions) Cost Unrealized Gain Unrealized Loss Fair Value Cost Unrealized Gain Unrealized Loss Fair Value Available-for-sale: Equity securities and exchange-traded funds 17.4 0.3 (1.6 ) 16.1 11.4 0.8 (0.3 ) 11.9 Mutual funds 1.3 — (0.1 ) 1.2 1.2 0.2 (0.1 ) 1.3 Total $ 18.7 $ 0.3 $ (1.7 ) $ 17.3 $ 12.6 $ 1.0 $ (0.4 ) $ 13.2 Held-to-maturity: Certificates of deposit $ 15.3 $ — $ — $ 15.3 $ 17.9 $ — $ — $ 17.9 |
Investments Classified by Contractual Maturity Date | The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of December 31, 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 December 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 18.7 17.3 12.6 13.2 Total $ 18.7 $ 17.3 $ 12.6 $ 13.2 Held-to-maturity: Due in one year or less $ 15.3 $ 15.3 $ 17.9 $ 17.9 Total $ 15.3 $ 15.3 $ 17.9 $ 17.9 |
Schedule of Realized Gain (Loss) | The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Consolidated Statements of Income: (in millions) 2015 2014 2013 Realized gains $ 1.3 $ 1.5 $ 5.5 Realized losses (0.7 ) (0.5 ) (1.3 ) Realized gains, net $ 0.6 $ 1.0 $ 4.2 |
Unrealized Gain Loss On Trading Securities | The following table shows the net unrealized gains (losses) on trading securities as recorded in our Consolidated Statements of Income: (in millions) 2015 2014 2013 Unrealized gains (losses), net $ (0.8 ) $ (0.2 ) $ 0.8 |
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 December 31, 2015 as of Using Fair Value Hierarchy (in millions) December 31, 2015 Level 1 Level 2 Level 3 Available-for-sale investments Equity securities and exchange-traded funds 16.1 16.1 — — Mutual funds 1.2 1.2 — — Trading securities 8.9 8.9 — — Cash equivalents 0.2 0.2 — — Total $ 26.4 $ 26.4 $ — $ — 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 $ 22.0 $ 22.0 $ — $ — |
Acquisitions, Goodwill, and O31
Acquisitions, Goodwill, and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes our allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition: (in millions) Cash and cash equivalents $ 0.3 Accounts receivable and other current assets 0.1 Deferred tax asset 4.0 Other current and non-current assets 0.3 Intangible assets 8.7 Goodwill 18.5 Deferred revenue (0.1 ) Deferred tax liability (3.3 ) Other current and non-current liabilities (0.6 ) Total purchase price $ 27.9 The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in millions) Cash and cash equivalents $ 3.7 Accounts receivable and other current assets 0.2 Other current and non-current assets 0.3 Deferred tax asset 8.6 Intangible assets 9.5 Goodwill 39.2 Deferred revenue (2.9 ) Deferred tax liability (3.6 ) Other current and non-current liabilities (1.0 ) Total fair value of HelloWallet $ 54.0 |
Schedule of Business Acquisitions | The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: (in millions) Cash and cash equivalents $ 3.5 Accounts receivable and other current assets 0.5 Other non-current assets 0.2 Intangible assets 9.7 Goodwill 8.9 Deferred revenue (1.2 ) Deferred tax liability (2.3 ) Other current and non-current liabilities (0.8 ) Total fair value of Morningstar Sweden $ 18.5 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The allocation included acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Customer-related assets $ 9.7 14 Total intangible assets $ 9.7 14 |
Schedule of Goodwill | The following table shows the changes in our goodwill balances from January 1, 2014 to December 31, 2015 : (in millions) Balance as of January 1, 2014 $ 326.5 Acquisition of HelloWallet and ByAllAccounts 57.6 Other, primarily foreign currency translation (14.0 ) Balance as of December 31, 2014 $ 370.1 Other, primarily foreign currency translation (5.9 ) Balance as of December 31, 2015 $ 364.2 |
Schedule of Intangible Assets | The following table summarizes our intangible assets: As of December 31, 2015 As of December 31, 2014 (in millions) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Intellectual property $ 28.3 $ (26.7 ) $ 1.6 9 $ 29.0 $ (25.0 ) $ 4.0 9 Customer-related assets 137.5 (92.3 ) 45.2 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 89.5 (64.4 ) 25.1 8 88.8 (57.4 ) 31.4 8 Non-competition agreement 4.6 (2.4 ) 2.2 5 4.4 (1.9 ) 2.5 5 Total intangible assets $ 260.1 $ (185.9 ) $ 74.2 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: (in millions) 2015 2014 2013 Amortization expense $ 22.0 $ 22.3 $ 21.5 |
Schedule of Expected Amortization Expense | Based on acquisitions and divestitures completed through December 31, 2015 , we expect intangible amortization expense for 2016 and subsequent years to be as follows: (in millions) 2016 $ 17.7 2017 12.8 2018 10.7 2019 8.2 2020 4.7 Thereafter 20.1 |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The allocation includes $9.5 million of acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Technology based assets $ 6.7 5 Intellectual property (trademarks and trade names) 0.2 3 Non-competition agreement 2.6 5 Total intangible assets $ 9.5 5 The allocation includes $8.7 million of acquired intangible assets, as follows: (in millions) Weighted Average Useful Life (years) Customer-related assets $ 5.5 24 Technology-based assets 3.0 4.5 Intellectual property (trademarks and trade names) 0.1 1 Non-competition agreement 0.1 3 Total intangible assets $ 8.7 19 |
Investments in Unconsolidated32
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments in Unconsolidated Entities [Abstract] | |
Schedule of Equity Method And Cost Method Investments | Our investments in unconsolidated entities consist primarily of the following: As of December 31 (in millions) 2015 2014 Investment in MJKK $ 24.3 $ 23.0 Other equity method investments 3.7 3.5 Investments accounted for using the cost method 7.6 2.3 Total investments in unconsolidated entities $ 35.6 $ 28.8 |
Schedule of Equity Method Investments | The following table summarizes our ownership percentage in MJKK and the market value of this investment based on MJKK’s publicly quoted share price: As of December 31 2015 2014 Morningstar’s approximate ownership of MJKK 34 % 34 % Approximate market value of Morningstar’s ownership in MJKK: Japanese yen (¥ in millions) ¥ 8,200.5 ¥ 7,347.4 Equivalent U.S. dollars ($ in millions) $ 68.1 $ 61.3 |
Property, Equipment, and Capi33
Property, Equipment, and Capitalized Software (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Equipment, and Capitalized Software by Major Category | The following table shows our property, equipment, and capitalized software summarized by major category: As of December 31 (in millions) 2015 2014 Computer equipment $ 60.3 $ 53.4 Capitalized software 144.0 87.8 Furniture and fixtures 24.3 23.2 Leasehold improvements 61.9 54.3 Telephone equipment 2.1 1.9 Construction in progress 11.7 29.9 Property, equipment, and capitalized software, at cost 304.3 250.5 Less accumulated depreciation (169.8 ) (132.9 ) Property, equipment, and capitalized software, net $ 134.5 $ 117.6 |
Capitalized Software Not Yet Placed In Service Included In Construction In Progress Balance | The following table shows the amount of capitalized software development costs included in construction in progress: As of December 31 (in millions) 2015 2014 Capitalized software development costs not yet placed into service $ — $ 18.1 |
Summary of Depreciation Expense | The following table summarizes our depreciation expense: (in millions) 2015 2014 2013 Depreciation expense $ 42.4 $ 32.6 $ 24.2 |
Operating Leases Operating Leas
Operating Leases Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Minimum Future Rental Commitments | The following table shows our minimum future rental commitments due in each of the next five years and thereafter for all non-cancelable operating leases, consisting primarily of leases for office space: Minimum Future Rental Commitments (in millions) 2016 $ 20.9 2017 20.3 2018 18.1 2019 13.5 2020 13.1 Thereafter 35.7 Total $ 121.6 |
Schedule of Rent Expense | The following table summarizes our rent expense including taxes, insurance, and related operating costs: (in millions) 2015 2014 2013 Rent expense $ 27.1 $ 24.5 $ 22.2 |
Schedule of Deferred Rent | Deferred rent includes build-out and rent abatement allowances received, which are amortized over the remaining portion of the original term of the lease as a reduction in office lease expense. We include deferred rent, as appropriate, in “Accounts payable and accrued liabilities” and “Deferred rent, noncurrent” on our Consolidated Balance Sheets. As of December 31 (in millions) 2015 2014 Deferred rent $ 28.5 $ 29.1 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 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 December 31 (in millions) 2015 Shares available for future grants 4.0 |
Schedule of Stock-Based Compensation Expense | The following table summarizes our stock-based compensation expense and the related income tax benefit we recorded in the past three years: Year ended December 31 (in millions) 2015 2014 2013 Restricted stock units $ 16.1 $ 16.3 $ 14.1 Restricted stock 0.1 0.4 0.4 Performance share awards 1.0 0.5 — Stock options 0.2 0.4 0.5 Total stock-based compensation expense $ 17.4 $ 17.6 $ 15.0 Income tax benefit related to the stock-based compensation expense $ 5.0 $ 5.1 $ 4.0 |
Schedule of Share-based Compensation, Activity [Table Text Block] | The following table summarizes the stock-based compensation expense included in each of our operating expense categories for the past three years: Year ended December 31 (in millions) 2015 2014 2013 Cost of revenue $ 8.1 $ 7.8 $ 6.8 Sales and marketing 2.2 2.1 2.0 General and administrative 7.1 7.7 6.2 Total stock-based compensation expense $ 17.4 $ 17.6 $ 15.0 |
Schedule of Uncategorized Stock-Based Compensation Expense | The following table summarizes the amount of unrecognized stock-based compensation expense as of December 31, 2015 and the expected number of months over which the expense will be recognized: Unrecognized stock-based compensation expense (in millions) Weighted average expected amortization period (months) Restricted stock units $ 31.4 31 Performance share awards 1.2 24 Total unrecognized stock-based compensation expense $ 32.6 31 |
Schedule of Restricted Stock Units Award Activity | The following table summarizes restricted stock unit activity during the past three years: Restricted Stock Units (RSUs) Unvested Vested but Deferred Total Weighted Average Grant Date Value per RSU RSUs Outstanding - January 1, 2013 727,145 18,782 745,927 $ 53.37 Granted 287,848 — 287,848 72.04 Dividend equivalents 2,773 157 2,930 57.39 Vested (278,549 ) — (278,549 ) 50.41 Issued — (2,257 ) (2,257 ) 49.40 Forfeited (59,215 ) — (59,215 ) 57.58 RSUs Outstanding - December 31, 2013 680,002 16,682 696,684 $ 62.02 Granted 279,524 — 279,524 72.68 Dividend equivalents 2,621 150 2,771 55.70 Vested (268,115 ) — (268,115 ) 58.91 Issued — (2,054 ) (2,054 ) 53.54 Forfeited (38,098 ) — (38,098 ) 65.21 RSUs Outstanding - December 31, 2014 655,934 14,778 670,712 $ 67.51 Granted 235,213 — 235,213 77.17 Dividend equivalents 1,409 146 1,555 56.42 Vested (253,038 ) — (253,038 ) 64.65 Forfeited (66,992 ) — (66,992 ) 53.61 RSUs Outstanding - December 31, 2015 572,526 14,924 587,450 $ 72.14 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | 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 December 31, 2015 : As of December 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 34,713 Unamortized expense, based on current performance levels (in millions) $ 1.2 |
Schedule of Stock Options, Valuation Assumptions | In May 2011, we granted 86,106 stock options under the 2004 Stock Incentive Plan. In November 2011, we granted 6,095 stock options under the 2011 Plan. All options granted in 2011 have an exercise price equal to the fair market value on the grant date. We estimated the fair value of the options on the grant date using a Black-Scholes option-pricing model. The weighted average fair value of options granted during 2011 was $23.81 per share, based on the following assumptions: Assumptions for Black-Scholes Option Pricing Model Expected life (years): 7.4 Volatility factor: 35.1 % Dividend yield: 0.35 % Interest rate: 2.87 % |
Schedule of Options Granted at Exercise Price Below Fair Value per Share on Grant Date | The first table includes activity for options granted at an exercise price below the fair value per share of our common stock on the grant date; the second table includes activity for all other option grants. 2015 2014 2013 Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Options outstanding—beginning of year — $ — 179,559 $ 21.47 282,695 $ 20.55 Granted — — — — — — Canceled — — (150 ) 22.24 (250 ) 21.48 Exercised — — (179,409 ) 22.08 (102,886 ) 21.09 Options outstanding—end of year — $ — — $ — 179,559 $ 21.47 Options exercisable—end of year — $ — — $ — 179,559 $ 21.47 |
Schedule of All Other Option Granted | 2015 2014 2013 All Other Option Grants, Excluding Activity Shown Above Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Underlying Shares Weighted Average Exercise Price Options outstanding—beginning of year 169,810 $ 40.20 253,972 $ 36.48 391,784 $ 28.98 Granted — — — — — — Canceled — — (526 ) 38.61 (1,352 ) 16.19 Exercised (117,714 ) 32.91 (83,636 ) 30.82 (136,460 ) 16.84 Options outstanding—end of year 52,096 $ 57.52 169,810 $ 40.20 253,972 $ 36.48 Options exercisable—end of year 52,096 $ 57.52 154,864 $ 38.53 219,449 $ 33.18 |
Schedule of Intrinsic Value of Stock Options Exercised During Period | The following table summarizes the total intrinsic value (difference between the market value of our stock on the date of exercise and the exercise price of the option) of options exercised: (in millions) 2015 2014 2013 Intrinsic value of options exercised $ 5.1 $ 12.0 $ 12.8 |
Schedule of Options, Vested and Expected to Vest, Outstanding and Exercisable | The table below shows additional information for options outstanding and exercisable as of December 31, 2015 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) $57.28 - $59.35 52,096 4.77 $ 57.52 $ 1.2 52,096 4.77 $ 57.52 $ 1.2 Vested or Expected to Vest $57.28 - $59.35 52,096 4.77 $ 57.52 $ 1.2 |
Schedule of Tax Benefits Related To Share Based Compensation | The following table summarizes our excess tax benefits for the past three years: (in millions) 2015 2014 2013 Excess tax benefits related to stock-based compensation $ 2.6 $ 4.4 $ 5.9 |
Defined Contribution Plan (Tabl
Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Plan [Abstract] | |
Schedule of Defined Contribution Plan, Employer Matching Contributions | The following table summarizes our matching contributions: (in millions) 2015 2014 2013 401(k) matching contributions $ 8.3 $ 7.5 $ 6.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |
Schedule of Income Tax Expense and Effective Tax Rate | The following table shows our income tax expense and our effective tax rate for the years ended December 31, 2015 , 2014 , and 2013 : (in millions) 2015 2014 2013 Income before income taxes and equity in net income of unconsolidated entities $ 193.7 $ 114.0 $ 178.0 Equity in net income of unconsolidated entities 1.8 — 1.4 Net loss attributable to the noncontrolling interest (0.2 ) — 0.1 Total $ 195.3 $ 114.0 $ 179.5 Income tax expense $ 62.7 $ 35.7 $ 56.0 Effective tax rate 32.1 % 31.3 % 31.2 % |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles our income tax expense at the U.S. federal income tax rate of 35% to income tax expense as recorded: 2015 2014 2013 (in millions, except percentages) Amount % Amount % Amount % Income tax expense at U.S. federal rate $ 68.4 35.0 % $ 39.9 35.0 % $ 62.8 35.0 % State income taxes, net of federal income tax benefit 6.6 3.4 2.1 1.9 3.0 1.7 Equity in net income of unconsolidated subsidiaries — — (1.4 ) (1.2 ) — — Net change in valuation allowance related to non-U.S. deferred tax assets, primarily net operating losses (2.0 ) (1.0 ) (0.6 ) (0.5 ) (1.8 ) (1.0 ) Difference between U.S. federal statutory and foreign tax rates (4.4 ) (2.3 ) (4.0 ) (3.5 ) (2.5 ) (1.4 ) Change in unrecognized tax benefits (1.4 ) (0.7 ) 1.5 1.3 (0.2 ) (0.1 ) Credits and incentives (5.1 ) (2.6 ) (2.9 ) (2.6 ) (4.4 ) (2.5 ) Recognition of deferred tax assets — — (0.1 ) (0.1 ) (1.4 ) (0.8 ) Other - net 0.6 0.3 1.2 1.0 0.5 0.3 Total income tax expense $ 62.7 32.1 % $ 35.7 31.3 % $ 56.0 31.2 % |
Schedule of Components of Income Tax Expense | Income tax expense consists of the following: Year ended December 31 (in millions) 2015 2014 2013 Current tax expense: U.S. Federal $ 42.8 $ 20.8 $ 42.8 State 8.3 2.0 3.9 Non-U.S. 8.7 9.6 10.5 Current tax expense 59.8 32.4 57.2 Deferred tax expense (benefit): U.S. Federal 4.3 3.7 2.6 State 1.8 1.3 0.8 Non-U.S. (3.2 ) (1.7 ) (4.6 ) Deferred tax expense (benefit), net 2.9 3.3 (1.2 ) Income tax expense $ 62.7 $ 35.7 $ 56.0 |
Schedule of Income before Income Tax | The following table provides our income before income taxes and equity in net income of unconsolidated entities, generated by our U.S. and non-U.S. operations: Year ended December 31 (in millions) 2015 2014 2013 U.S. $ 160.6 $ 80.4 $ 144.1 Non-U.S. 33.1 33.6 33.9 Income before income taxes and equity in net income of unconsolidated entities $ 193.7 $ 114.0 $ 178.0 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences that give rise to the deferred income tax assets and liabilities are as follows: As of December 31 (in millions) 2015 2014 Deferred tax assets: Stock-based compensation expense $ 3.1 $ 3.3 Accrued liabilities 14.3 13.6 Deferred revenue 0.9 — Net operating loss carryforwards - U.S. federal and state 7.6 10.5 Net operating loss carryforwards - Non-U.S. 3.7 7.7 Credits and incentive carryforwards 0.6 — Deferred royalty revenue 0.3 0.4 Allowance for doubtful accounts 1.0 0.9 Deferred rent 8.9 10.0 Unrealized exchange losses, net 0.4 — Total deferred tax assets 40.8 46.4 Deferred tax liabilities: Acquired intangible assets (13.2 ) (16.4 ) Property, equipment, and capitalized software (28.1 ) (23.2 ) Unrealized exchange gains, net — (0.2 ) Prepaid expenses (4.3 ) (3.7 ) Investments in unconsolidated entities (13.7 ) (12.8 ) Other (0.1 ) (0.4 ) Total deferred tax liabilities (59.4 ) (56.7 ) Net deferred tax liability before valuation allowance (18.6 ) (10.3 ) Valuation allowance (1.2 ) (6.7 ) Net deferred tax liability $ (19.8 ) $ (17.0 ) |
Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets | The deferred tax assets and liabilities are presented in our Consolidated Balance Sheets as follows: As of December 31 (in millions) 2015 2014 Deferred tax asset, net - current $ — $ — Deferred tax liability, net - non-current (19.8 ) (17.0 ) Net deferred tax liability $ (19.8 ) $ (17.0 ) |
Schedule of Gross Unrecognized Tax Benefits | The table below reconciles the beginning and ending amount of the gross unrecognized tax benefits as follows: (in millions) 2015 2014 Gross unrecognized tax benefits - beginning of the year $ 11.9 $ 13.0 Increases as a result of tax positions taken during a prior-year period 4.4 0.9 Decreases as a result of tax positions taken during a prior-year period (0.7 ) (0.1 ) Increases as a result of tax positions taken during the current period 2.4 2.0 Decreases relating to settlements with tax authorities (1.8 ) (2.4 ) Reductions as a result of lapse of the applicable statute of limitations (1.7 ) (1.5 ) Gross unrecognized tax benefits - end of the year $ 14.5 $ 11.9 |
Summary of Income Tax Examinations | The following table summarizes our gross liability for interest and penalties: As of December 31 (in millions) 2015 2014 Liabilities for interest and penalties $ 1.2 $ 1.5 |
U.S [Member] | |
Operating Loss Carryforwards [Line Items] | |
Summary of Operating Loss Carryforwards | The following table summarizes our U.S. net operating loss (NOL) carryforwards: As of December 31 (in millions) 2015 2014 Expiration Dates Expiration Dates U.S. federal NOLs subject to expiration dates $ 21.6 2023-2034 $ 30.0 2023-2034 |
Non-U.S. [Member] | |
Operating Loss Carryforwards [Line Items] | |
Summary of Operating Loss Carryforwards | The following table summarizes our NOL carryforwards for our non-U.S. operations: As of December 31 (in millions) 2015 2014 Non-U.S. NOLs subject to expiration dates from 2019 through 2035 $ 2.9 $ 5.2 Non-U.S. NOLs with no expiration date 15.5 32.7 Total $ 18.4 $ 37.9 Non-U.S. NOLs not subject to valuation allowances $ 12.1 $ 5.1 |
Selected Quarterly Financial 38
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | 2014 2015 (in millions except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 181.2 $ 189.4 $ 193.1 $ 196.4 $ 189.8 $ 202.1 $ 195.3 $ 201.6 Total operating expense 142.7 214.2 147.8 149.8 145.3 152.4 149.1 151.5 Operating income (loss) 38.5 (24.8 ) 45.3 46.6 44.5 49.7 46.2 50.1 Non-operating income (expense), net 0.9 5.9 (0.3 ) 1.8 (0.4 ) 0.6 1.4 1.4 Income (loss) before income taxes and equity in net income of unconsolidated entities 39.4 (18.9 ) 45.0 48.4 44.1 50.3 47.6 51.5 Equity in net income (loss) of unconsolidated entities 0.6 0.5 0.3 (1.4 ) 0.5 0.6 0.5 0.3 Income tax expense (benefit) 13.7 (8.6 ) 15.1 15.5 14.8 18.7 14.6 14.5 Consolidated net income (loss) 26.3 (9.8 ) 30.2 31.5 29.8 32.2 33.5 37.3 Net (income) loss attributable to the noncontrolling interests 0.1 — — — (0.1 ) — — — Net income (loss) attributable to Morningstar, Inc. $ 26.4 $ (9.8 ) $ 30.2 $ 31.5 $ 29.7 $ 32.2 $ 33.5 $ 37.3 Net income (loss) per share attributable to Morningstar, Inc. Basic $ 0.59 $ (0.22 ) $ 0.67 $ 0.71 $ 0.67 $ 0.73 $ 0.76 $ 0.85 Diluted $ 0.58 $ (0.22 ) $ 0.67 $ 0.71 $ 0.67 $ 0.72 $ 0.76 $ 0.85 Dividends per common share: Dividends declared per common share $ 0.17 $ 0.17 $ 0.17 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.22 Dividends paid per common share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.19 $ 0.19 $ 0.19 $ 0.19 Weighted average shares outstanding: Basic 44.8 44.8 44.7 44.4 44.3 44.3 44.2 43.8 Diluted 45.1 44.8 44.9 44.5 44.5 44.4 44.3 43.9 |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2015Countries |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates | 27 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |||
Amortization of sales commission cost | $ 3.5 | $ 9.8 | |
capitalized software development costs | 21.8 | 18.8 | $ 8.1 |
Advertising expense | $ 8.3 | $ 7.5 | $ 6.9 |
Intangible Assets, useful life, minimum | 10 years | 10 years | |
Correction | |||
Business Acquisition [Line Items] | |||
Reorganization, Number of Positions Shifted | employee | 180 | ||
Cost of Revenue [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | $ 14 | ||
General and Administrative Expense [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | (6) | ||
Sales and Marketing [Member] | Correction | |||
Business Acquisition [Line Items] | |||
Compensation | $ (8) | ||
Property, Plant and Equipment [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 3 years | ||
Property, Plant and Equipment [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 7 years | ||
Capitalized software [Member] | Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 3 years | ||
Capitalized software [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Property, Equipment, and Depreciation, useful life, minimum | 5 years |
Credit Arrangements (Details)
Credit Arrangements (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Jul. 09, 2015 |
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | $ 75 | |
Line of Credit, Current | $ 35 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 40 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Income Per Share (Details)
Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic net income per share attributable to Morningstar, Inc.: | |||||||||||
Net income attributable to Morningstar, Inc. | $ 37.3 | $ 33.5 | $ 32.2 | $ 29.7 | $ 31.5 | $ 30.2 | $ (9.8) | $ 26.4 | $ 132.6 | $ 78.3 | $ 123.5 |
Less: Distributed earnings availabline to participating securities | 0 | 0 | 0 | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 0 | 0 | 0 | ||||||||
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | $ 132.6 | $ 78.3 | $ 123.5 | ||||||||
Weighted average common shares outstanding | 43.8 | 44.2 | 44.3 | 44.3 | 44.4 | 44.7 | 44.8 | 44.8 | 44.2 | 44.7 | 46.2 |
Basic net income per share attributable to Morningstar, Inc. (in dollars per share) | $ 3 | $ 1.75 | $ 2.68 | ||||||||
Diluted net income per share attributable to Morningstar, Inc.: | |||||||||||
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders | $ 132.6 | $ 78.3 | $ 123.5 | ||||||||
Add: Undistributed earnings allocated to participating securities | 0 | 0 | 0 | ||||||||
Less: Undistributed earnings reallocated to participating securities | 0 | 0 | 0 | ||||||||
Numerator for diluted net income per share - undistributed and distributed earnings available to common shareholders | $ 132.6 | $ 78.3 | $ 123.5 | ||||||||
Weighted average common shares outstanding | 43.8 | 44.2 | 44.3 | 44.3 | 44.4 | 44.7 | 44.8 | 44.8 | 44.2 | 44.7 | 46.2 |
Net effect of dilutive stock options and restricted stock units | 0.1 | 0.2 | 0.3 | ||||||||
Weighted average common shares outstanding for computing diluted income per share | 43.9 | 44.3 | 44.4 | 44.5 | 44.5 | 44.9 | 44.8 | 45.1 | 44.3 | 44.9 | 46.5 |
Diluted net income per share attributable to Morningstar, Inc. (in dollars per share) | $ 3 | $ 1.74 | $ 2.66 |
Income Per Share Income Per Sha
Income Per Share Income Per Share Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 42 | 53 | 17 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 38 | 47 | 17 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4 | 6 | 0 |
Segment and Geographical Area44
Segment and Geographical Area Information (Operating Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | $ 201.6 | $ 195.3 | $ 202.1 | $ 189.8 | $ 196.4 | $ 193.1 | $ 189.4 | $ 181.2 | $ 788.8 | $ 760.1 | $ 698.3 |
Stock-based compensation expense | 17.4 | 17.6 | 15 | ||||||||
Depreciation and amortization | 64.4 | 54.9 | 45.7 | ||||||||
Operating income | 50.1 | $ 46.2 | $ 49.7 | $ 44.5 | 46.6 | $ 45.3 | $ (24.8) | $ 38.5 | 190.6 | 105.6 | 170.7 |
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Goodwill | $ 364.2 | $ 370.1 | 364.2 | 370.1 | 326.5 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||||||||||
External revenue | $ 585.1 | $ 550.8 | $ 500.8 |
Segment and Geographical Area45
Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 201.6 | $ 195.3 | $ 202.1 | $ 189.8 | $ 196.4 | $ 193.1 | $ 189.4 | $ 181.2 | $ 788.8 | $ 760.1 | $ 698.3 |
Long-lived assets | 134.5 | 117.6 | 134.5 | 117.6 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 585.1 | 550.8 | 500.8 | ||||||||
Long-lived assets | 116.9 | 98.1 | 116.9 | 98.1 | |||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 64.2 | 61.8 | 56.2 | ||||||||
Long-lived assets | 8.6 | 8.1 | 8.6 | 8.1 | |||||||
Europe excluding the United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 58.8 | 62.7 | 57.6 | ||||||||
Long-lived assets | 2.2 | 2.1 | 2.2 | 2.1 | |||||||
Australia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 30.5 | 35 | 35.3 | ||||||||
Long-lived assets | 0.9 | 0.8 | 0.9 | 0.8 | |||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 27.9 | 30.8 | 31.8 | ||||||||
Long-lived assets | 0.7 | 0.9 | 0.7 | 0.9 | |||||||
Asia, Excluding Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 18.5 | 15.8 | 13.9 | ||||||||
Long-lived assets | 5.2 | 7.5 | 5.2 | 7.5 | |||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 3.8 | 3.2 | 2.7 | ||||||||
Long-lived assets | 0 | 0.1 | 0 | 0.1 | |||||||
Non United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 203.7 | 209.3 | $ 197.5 | ||||||||
Long-lived assets | $ 17.6 | $ 19.5 | $ 17.6 | $ 19.5 |
Investments and Fair Value Me46
Investments and Fair Value Measurements (Classification of Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Available-for-sale | $ 17.3 | $ 13.2 |
Held-to-maturity | 15.3 | 17.9 |
Trading securities, fair value disclosure | 8.9 | 8.3 |
Total | $ 41.5 | $ 39.4 |
Investments and Fair Value Me47
Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | $ 18.7 | $ 12.6 | |
Available-for-sale securities, unrealized gain | 0.3 | 1 | |
Available-for-sale securities, unrealized loss | (1.7) | (0.4) | |
Available-for-sale securities, current | 17.3 | 13.2 | |
Held-to-maturity: | |||
Held-to-maturity securities, total amortized cost | 15.3 | 17.9 | |
Held-to-maturity securities, unrealized gain | 0 | 0 | |
Held-to-maturity securities, unrealized loss | 0 | 0 | |
Held-to-maturity securities, current | 15.3 | 17.9 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Available-for-sale securities, realized gains | 1.3 | 1.5 | $ 5.5 |
Available-for-sale securities, realized losses | (0.7) | (0.5) | (1.3) |
Available-for-sale securities, realized gains, net | 0.6 | 1 | $ 4.2 |
Equity securities and exchange-traded funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 17.4 | 11.4 | |
Available-for-sale securities, unrealized gain | 0.3 | 0.8 | |
Available-for-sale securities, unrealized loss | (1.6) | (0.3) | |
Available-for-sale securities, fair value disclosure | 16.1 | 11.9 | |
Mutual funds [Member] | |||
Available-for-sale: | |||
Available-for-sale securities, amortized cost basis | 1.3 | 1.2 | |
Available-for-sale securities, unrealized gain | 0 | 0.2 | |
Available-for-sale securities, unrealized loss | (0.1) | (0.1) | |
Available-for-sale securities, fair value disclosure | $ 1.2 | $ 1.3 |
Investments and Fair Value Me48
Investments and Fair Value Measurements (Cost and Fair Value of Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale securities, equity securities and mutual funds, amortized cost basis | $ 18.7 | $ 12.6 |
Available-for-sale securities, equity securities and mutual funds, fair value | 17.3 | 13.2 |
Available-for-sale securities, amortized cost basis | 18.7 | 12.6 |
Available-for-sale securities, current | 17.3 | 13.2 |
Held-to-maturity Securities, Debt Maturities [Abstract] | ||
Held-to-maturity securities, due in one year, net carrying amount | 15.3 | 17.9 |
Held-to-maturity securities, due within one year, fair value | 15.3 | 17.9 |
Held-to-maturity securities, total amortized cost | 15.3 | 17.9 |
Held-to-maturity securities, current | $ 15.3 | 17.9 |
Certificate of Deposit Held as Collateral Against Australia Office Lease | $ 1.5 |
Investments and Fair Value Me49
Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gains (losses), net | $ (0.8) | $ (0.2) | $ 0.8 |
Investments and Fair Value Me50
Investments and Fair Value Measurements (Fair Value of Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | $ 8.9 | $ 8.3 |
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 disclosure | 8.9 | 8.3 |
Cash equivalents, fair value disclosure | 0.2 | 0.5 |
Investments, fair value disclosure | 26.4 | 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 disclosure | 16.1 | 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 disclosure | 1.2 | 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 disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 0 | 0 |
Cash equivalents, fair value disclosure | 0 | 0 |
Investments, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, fair value disclosure | 8.9 | 8.3 |
Cash equivalents, fair value disclosure | 0.2 | 0.5 |
Investments, fair value disclosure | 26.4 | 22 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities and exchange-traded funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 16.1 | 11.9 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 1.2 | $ 1.3 |
Acquisitions, Goodwill, and O51
Acquisitions, Goodwill, and Other Intangible Assets (Narrative) (Details) - USD ($) | Jun. 03, 2014 | May. 03, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2015 | Jun. 30, 2015 | Apr. 02, 2014 | Mar. 31, 2014 |
Business Acquisition [Line Items] | |||||||||
Equity Method Investments Holding Gain | $ 0 | $ 5,200,000 | $ 3,600,000 | ||||||
Goodwill | 364,200,000 | 370,100,000 | 326,500,000 | ||||||
Goodwill, Impairment Loss | 0 | 0 | 0 | ||||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | ||||||
Ibbotson Associates Japan K.K. (IAJ) [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of voting interests acquired | 28.90% | ||||||||
Percentage of voting interest after subsequent acquisition (percent) | 100.00% | ||||||||
Percentage of voting interest before subsequent acquisition (percent) | 71.10% | ||||||||
HelloWallet [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 9,500,000 | ||||||||
Percentage of voting interests acquired | 81.30% | ||||||||
Business Combination, Consideration Transferred, Previously Held Ownership Portion | $ 13,500,000 | ||||||||
Acquisition estimated fair value | 54,000,000 | ||||||||
Cash paid to acquire the entity | 40,500,000 | ||||||||
Deferred tax liability | 3,600,000 | ||||||||
Deferred tax asset | 8,600,000 | ||||||||
Goodwill | $ 39,200,000 | ||||||||
Business Acquisition, Current Percentage of Voting Interests | 100.00% | ||||||||
Business Acquisition, Prior Percentage of Voting Interests | 18.70% | ||||||||
Business Combination, Non-Cash Holding Gain (Loss) | $ 5,200,000 | ||||||||
ByAllAccounts, Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 8,700,000 | ||||||||
Acquisition estimated fair value | 27,900,000 | ||||||||
Deferred tax liability | 3,300,000 | ||||||||
Deferred tax asset | 4,000,000 | ||||||||
Goodwill | $ 18,500,000 | ||||||||
Morningstar Sweden AB [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets | $ 9,700,000 | ||||||||
Percentage of voting interests acquired | 76.00% | ||||||||
Equity method investment, ownership percentage | 100.00% | 24.00% | |||||||
Acquisition estimated fair value | $ 18,500,000 | ||||||||
Cash paid to acquire the entity | 14,500,000 | ||||||||
Equity method investments, fair value | $ 4,000,000 | ||||||||
Equity Method Investments Holding Gain | 3,600,000 | ||||||||
Deferred tax liability | 2,300,000 | ||||||||
Goodwill | $ 8,900,000 |
Acquisitions, Goodwill, and O52
Acquisitions, Goodwill, and Other Intangible Assets (Purchase Price Allocation) (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 03, 2014 | Apr. 02, 2014 | Dec. 31, 2013 | May. 03, 2013 |
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Goodwill | $ 364.2 | $ 370.1 | $ 326.5 | |||
HelloWallet [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | $ 3.7 | |||||
Accounts receivable and other current assets | 0.2 | |||||
Other non-current assets | 0.3 | |||||
Deferred tax asset | 8.6 | |||||
Intangible assets | 9.5 | |||||
Goodwill | 39.2 | |||||
Deferred revenue | (2.9) | |||||
Deferred tax liability | (3.6) | |||||
Other current and non-current liabilities | (1) | |||||
Acquisition estimated fair value | $ 54 | |||||
ByAllAccounts, Inc. [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | $ 0.3 | |||||
Accounts receivable and other current assets | 0.1 | |||||
Other non-current assets | 0.3 | |||||
Deferred tax asset | 4 | |||||
Intangible assets | 8.7 | |||||
Goodwill | 18.5 | |||||
Deferred revenue | (0.1) | |||||
Deferred tax liability | (3.3) | |||||
Other current and non-current liabilities | (0.6) | |||||
Acquisition estimated fair value | $ 27.9 | |||||
Morningstar Sweden AB [Member] | ||||||
Business Acquisition, Purchase Price Allocation [Abstract] | ||||||
Cash and cash equivalents | $ 3.5 | |||||
Accounts receivable and other current assets | 0.5 | |||||
Other non-current assets | 0.2 | |||||
Intangible assets | 9.7 | |||||
Goodwill | 8.9 | |||||
Deferred revenue | (1.2) | |||||
Deferred tax liability | (2.3) | |||||
Other current and non-current liabilities | (0.8) | |||||
Acquisition estimated fair value | $ 18.5 |
Acquisitions, Goodwill, and O53
Acquisitions, Goodwill, and Other Intangible Assets (Allocation of Acquired Intangible Assets) (Details) - USD ($) $ in Millions | Jun. 03, 2014 | Apr. 01, 2014 | May. 03, 2013 | Apr. 02, 2014 |
HelloWallet [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 9.5 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
HelloWallet [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 6.7 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
HelloWallet [Member] | Trademarks and Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 0.2 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
HelloWallet [Member] | Noncompete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 2.6 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
ByAllAccounts, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 8.7 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years | |||
ByAllAccounts, Inc. [Member] | Customer-Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 5.5 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 24 years | |||
ByAllAccounts, Inc. [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 3 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 6 months | |||
ByAllAccounts, Inc. [Member] | Trademarks and Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 0.1 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year | |||
ByAllAccounts, Inc. [Member] | Noncompete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 0.1 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
Morningstar Sweden AB [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 9.7 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |||
Morningstar Sweden AB [Member] | Customer-Related Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 9.7 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |
Acquisitions, Goodwill, and O54
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 370.1 | $ 326.5 |
Other, primarily foreign currency translation | (5.9) | (14) |
Goodwill, Ending Balance | $ 364.2 | 370.1 |
HelloWallet and ByAllAccounts [Member] | ||
Goodwill [Roll Forward] | ||
Acquisition of HelloWallet and ByAllAccounts | $ 57.6 |
Acquisitions, Goodwill, and O55
Acquisitions, Goodwill, and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 260.1 | $ 263.9 |
Accumulated Amortization | (185.9) | (168) |
Net | $ 74.2 | $ 95.9 |
Weighted Average Useful Life (years) | 10 years | 10 years |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 28.3 | $ 29 |
Accumulated Amortization | (26.7) | (25) |
Net | $ 1.6 | $ 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 | (92.3) | (83.6) |
Net | $ 45.2 | $ 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) |
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 | $ 89.5 | $ 88.8 |
Accumulated Amortization | (64.4) | (57.4) |
Net | $ 25.1 | $ 31.4 |
Weighted Average Useful Life (years) | 8 years | 8 years |
Non-Competition Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 4.6 | $ 4.4 |
Accumulated Amortization | (2.4) | (1.9) |
Net | $ 2.2 | $ 2.5 |
Weighted Average Useful Life (years) | 5 years | 5 years |
Acquisitions, Goodwill, and O56
Acquisitions, Goodwill, and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquisitions, Goodwill, and Other Intangible Assets [Abstract] | |||
Amortization expense | $ 22 | $ 22.3 | $ 21.5 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,015 | 17.7 | ||
2,016 | 12.8 | ||
2,017 | 10.7 | ||
2,018 | 8.2 | ||
2,019 | 4.7 | ||
Thereafter | $ 20.1 |
Investments in Unconsolidated57
Investments in Unconsolidated Entities (Details) ¥ in Millions, $ in Millions | May. 03, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015JPY (¥) | Dec. 31, 2014JPY (¥) | Mar. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||||
Cost method investments | $ 7.6 | $ 2.3 | |||||
Total investments in unconsolidated entities | 35.6 | 28.8 | |||||
Holding gain upon acquisition of additional ownership of equity method investment | 0 | (5.2) | $ (3.6) | ||||
Cost-method investments, other than temporary impairment | 0 | 0 | |||||
Equity Method Investment, Other than Temporary Impairment | 0 | 1.7 | |||||
Payments to Acquire Other Investments | 6.2 | 0 | 2.8 | ||||
Cost-method Investments, Realized Gain (Loss) | 0 | 0.4 | $ 0 | ||||
Other Equity Method Investments [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 3.7 | $ 3.5 | |||||
YCharts [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 22.00% | 22.00% | 22.00% | 22.00% | |||
Morningstar Japan KK [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 24.3 | $ 23 | |||||
Equity method investment, ownership percentage | 34.00% | 34.00% | 34.00% | 34.00% | |||
Equity method investment, approximate market value | $ 68.1 | $ 61.3 | ¥ 8,200.5 | ¥ 7,347.4 | |||
Inquiry Financial Europe AB [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 34.00% | 34.00% | 34.00% | 34.00% | |||
Morningstar Sweden AB [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, ownership percentage | 100.00% | 24.00% | |||||
Holding gain upon acquisition of additional ownership of equity method investment | $ (3.6) | ||||||
Percentage of voting interests acquired | 76.00% |
Property, Equipment, and Capi58
Property, Equipment, and Capitalized Software (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | $ 304.3 | $ 250.5 | |
Less accumulated depreciation | (169.8) | (132.9) | |
Property, equipment, and capitalized software, net | 134.5 | 117.6 | |
Capitalized software development costs not yet placed into service | 0 | 18.1 | |
Depreciation expense | 42.4 | 32.6 | $ 24.2 |
Computer equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 60.3 | 53.4 | |
Capitalized software [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 144 | 87.8 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 24.3 | 23.2 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 61.9 | 54.3 | |
Telephone equipment [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | 2.1 | 1.9 | |
Construction in progress [Member] | |||
Property, Plant and Equipment, Net [Abstract] | |||
Property, equipment, and capitalized software, at cost | $ 11.7 | $ 29.9 |
Operating Leases Operating Le59
Operating Leases Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,012 | $ 20.9 | ||
2,013 | 20.3 | ||
2,014 | 18.1 | ||
2,015 | 13.5 | ||
2,016 | 13.1 | ||
Thereafter | 35.7 | ||
Total | 121.6 | ||
Rent expense | 27.1 | $ 24.5 | $ 22.2 |
Deferred rent | $ 28.5 | $ 29.1 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2011 | May. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 32.6 | |||
Expected amortization period (months) | 31 years | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Unrecognized stock-based compensation expense | $ 31.4 | |||
Expected amortization period (months) | 31 years | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Unrecognized stock-based compensation expense | $ 1.2 | |||
Expected amortization period (months) | 24 years | |||
2004 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option granted | 86,106 | |||
Fair value per share | $ 23.81 | |||
2011 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option granted | 6,095 | |||
Non-Employee Director [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Non-Employee Director [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Employee [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stock-Based Compensation (Share
Stock-Based Compensation (Shares Available for Future Grants) (Details) shares in Millions | Dec. 31, 2015shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares available for future grants | 0 |
Stock-Based Compensation (Alloc
Stock-Based Compensation (Allocation of Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 17.4 | $ 17.6 | $ 15 |
Income tax benefit related to the stock-based compensation expense | 5 | 5.1 | 4 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 16.1 | 16.3 | 14.1 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 0.1 | 0.4 | 0.4 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1 | 0.5 | 0 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.4 | $ 0.5 |
Stock-Based Compensation (Unrec
Stock-Based Compensation (Unrecognized Stock-Based Compensation Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | $ 32.6 |
Expected amortization period (months) | 31 years |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | $ 31.4 |
Expected amortization period (months) | 31 years |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Income tax benefit related to the stock-based compensation expense | $ 1.2 |
Expected amortization period (months) | 24 years |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
RSUs Outstanding, Beginning Balance, Unvested | 655,934 | 680,002 | 727,145 | 680,002 |
RSUs Outstanding, Beginning Balance, Vested but Deferred | 14,778 | 16,682 | 18,782 | 16,682 |
RSUs Outstanding, Beginning Balance | 670,712 | 696,684 | 745,927 | 696,684 |
RSUs Outstanding, Beginning Balance, Weighted Average Grant Date Value per RSU | $ 67.51 | $ 62.02 | $ 53.37 | $ 62.02 |
Granted, Unvested | 235,213 | 279,524 | 287,848 | |
Granted, Vested but Deferred | 0 | 0 | 0 | |
Granted | 235,213 | 279,524 | 287,848 | |
Granted, Weighted Average Grant Date Value per RSU | $ 77.17 | $ 72.68 | $ 72.04 | |
Dividend equivalents, Unvested | 1,409 | 2,621 | 2,773 | |
Dividends equivalents, Vested but Deferred | 146 | 150 | 157 | |
Dividends equivalents | 1,555 | 2,771 | 2,930 | |
Dividends equivalents, Weighted Average Grant Date Value per RSU | $ 56.42 | $ 55.70 | $ 57.39 | |
Vested, Unvested | (253,038) | (268,115) | (278,549) | |
Vested, Vested but Deferred | 0 | 0 | 0 | |
Vested | (253,038) | (268,115) | (278,549) | |
Vested, Weighted Average Grant Date Value per RSU | $ 64.65 | $ 58.91 | $ 50.41 | |
Issued, Unvested | 0 | 0 | ||
Issued, Vested but Deferred | (2,054) | (2,257) | ||
Issued | (2,054) | (2,257) | ||
Issued, Weighted Average Grant Date Value per RSU | $ 53.54 | $ 49.40 | ||
Forfeited, Unvested | (66,992) | (38,098) | (59,215) | |
Forfeited, Vested but Deferred | 0 | 0 | 0 | |
Forfeited | (66,992) | (38,098) | (59,215) | |
Forfeited, Weighted Average Grant Date Value per RSU | $ 53.61 | $ 65.21 | $ 57.58 | |
RSUs Outstanding, Ending Balance, Unvested | 572,526 | 655,934 | 680,002 | 572,526 |
RSUs Outstanding, Ending Balance, Vested but Deferred | 14,924 | 14,778 | 16,682 | 14,924 |
RSUs Outstanding, Ending Balance | 587,450 | 670,712 | 696,684 | 587,450 |
RSUs Outstanding, Ending Balance, Weighted Average Grant Date Value per RSU | $ 72.14 | $ 67.51 | $ 62.02 | $ 72.14 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions for Black-Scholes Option Pricing Model) (Details) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2012 | |
Assumptions for Black-Scholes Option Pricing Model [Line Items] | |
Expected life (years): | 7 years 4 months 24 days |
Volatility factor: | 35.10% |
Dividends yield: | 0.35% |
Interest rate: | 2.87% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | |
Option Exercise Price Grouping [Member] | ||||
Intrinsic Value of Options Exercised [Abstract] | ||||
Intrinsic value of options exercised | $ 5.1 | $ 12 | $ 12.8 | |
Options Granted At Discount [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Beginning Balance, Options, Outstanding, Underlying Shares | 0 | 179,559 | 282,695 | |
Granted, Underlying Shares | 0 | 0 | 0 | |
Canceled, Underlying Shares | 0 | (150) | (250) | |
Exercised, Underlying Shares | 0 | (179,409) | (102,886) | |
Ending Balance, Options, Outstanding, Underlying Shares | 0 | 0 | 179,559 | |
Options, Weighted Average Exercise Price [Abstract] | ||||
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $ 0 | $ 21.47 | $ 20.55 | |
Granted, Weighted Average Exercise Price | 0 | 0 | 0 | |
Canceled, Weighted Average Exercise Price | 0 | 22.24 | 21.48 | |
Exercised, Weighted Average Exercise Price | 0 | 22.08 | 21.09 | |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $ 0 | $ 0 | $ 21.47 | |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ||||
Options exercisable - end of year, Underlying Shares | 0 | 0 | 179,559 | |
Options exercisable - end of year, Weighted Average Exercise Price | $ 0 | $ 0 | $ 21.47 | |
Option Grants Excluding Options Granted At Discount [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Beginning Balance, Options, Outstanding, Underlying Shares | 169,810 | 253,972 | 391,784 | |
Granted, Underlying Shares | 0 | 0 | 0 | |
Canceled, Underlying Shares | 0 | (526) | (1,352) | |
Exercised, Underlying Shares | (117,714) | (83,636) | (136,460) | |
Ending Balance, Options, Outstanding, Underlying Shares | 52,096 | 169,810 | 253,972 | |
Options, Weighted Average Exercise Price [Abstract] | ||||
Beginning Balance, Options, Outstanding, Weighted Average Exercise Price | $ 40.20 | $ 36.48 | $ 28.98 | |
Granted, Weighted Average Exercise Price | 0 | 0 | 0 | |
Canceled, Weighted Average Exercise Price | 0 | 38.61 | 16.19 | |
Exercised, Weighted Average Exercise Price | 32.91 | 30.82 | 16.84 | |
Ending Balance, Options, Outstanding, Weighted Average Exercise Price | $ 57.52 | $ 40.20 | $ 36.48 | |
Options, Exercisable, Number of Shares and Weighted Average Exercise Price [Abstract] | ||||
Options exercisable - end of year, Underlying Shares | 52,096 | 154,864 | 219,449 | |
Options exercisable - end of year, Weighted Average Exercise Price | $ 57.52 | $ 38.53 | $ 33.18 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information on Options) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Closing Stock Price Used to Calculate Intrinsic Value | $ 81.18 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices | $57.28 - $59.35 |
Exercise price range, lower range limit | $ 57.28 |
Exercise price range, upper range limit | $ 59.35 |
Options Outstanding, Number of Options | shares | 52,096 |
Options Outstanding, Weighted Average Remaining Contractual Life (years) | 4 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $ 57.52 |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 1.2 |
Options Exercisable, Exercisable Shares | shares | 52,096 |
Options Exercisable, Weighted Average Remaining Contractual Life (years) | 4 years 9 months 7 days |
Options Exercisable, Weighted Average Exercise Price | $ 57.52 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 1.2 |
Share Based Compensation, Arrangement By Share Based Payments, Vested or Expected to Vest, Range of Exercise Prices | $57.28 - $59.35 |
Option Outstanding, Number of Options, Vested or Expected to Vest | shares | 52,096 |
Options Outstanding, Weighted Average Remaining Contractual Life (years), Vested or Expected to vest | 4 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price, Vested or Expected to Vest | $ 57.52 |
Options Outstanding, Average Intrinsic Value, Vested or Expected to Vest | $ | $ 1.2 |
Stock-Based Compensation (Exces
Stock-Based Compensation (Excess Tax Benefits Related to Stock-Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Excess tax benefits related to stock-based compensation | $ 2.6 | $ 4.4 | $ 5.9 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | $ 17.4 | $ 17.6 | $ 15 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | 8.1 | 7.8 | 6.8 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | 2.2 | 2.1 | 2 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated Share-based Compensation Expense | $ 7.1 | $ 7.7 | $ 6.2 |
Stock-Based Compensation Stoc70
Stock-Based Compensation Stock-Based Compensation (Performance Shares) (Details) - Performance Shares [Member] $ / shares in Units, $ in Millions | 12 Months Ended | 24 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, Unvested | 75,947 | |
Granted, Weighted Average Grant Date Value per RSU | $ / shares | $ 76.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Shares Issued Based Upon Current Performance Levels | 34,713 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 0 | $ 0 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan [Abstract] | |||
401(k) matching contributions | $ 8,300,000 | $ 7,500,000 | $ 6,900,000 |
Matching contribution to 401(k) for every dollar | $ 0.75 | $ 0.75 | $ 0.75 |
Matching contribution percent to employee's contribution in pay period | 7.00% | 7.00% | 7.00% |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense and Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ 51.5 | $ 47.6 | $ 50.3 | $ 44.1 | $ 48.4 | $ 45 | $ (18.9) | $ 39.4 | $ 193.7 | $ 114 | $ 178 |
Equity in net income of unconsolidated entities | 0.3 | 0.5 | 0.6 | 0.5 | (1.4) | 0.3 | 0.5 | 0.6 | 1.8 | 0 | 1.4 |
Net (income) loss attributable to the noncontrolling interest | 0 | 0 | 0 | (0.1) | 0 | 0 | 0 | 0.1 | (0.2) | 0 | 0.1 |
Income loss from continuing operations before income taxes domestic and foreign | 195.3 | 114 | 179.5 | ||||||||
Income tax expense | $ 14.5 | $ 14.6 | $ 18.7 | $ 14.8 | $ 15.5 | $ 15.1 | $ (8.6) | $ 13.7 | $ 62.7 | $ 35.7 | $ 56 |
Effective income tax rate | 32.10% | 31.30% | 31.20% |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Examination [Line Items] | |||||||||||
Income tax expense at U.S. federal rate | $ 68.4 | $ 39.9 | $ 62.8 | ||||||||
Income tax expense at U.S. federal rate, percent | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of frderal income tax benefit | $ 6.6 | $ 2.1 | $ 3 | ||||||||
State income taxes, net of frderal income tax benefit, percent | 3.40% | 1.90% | 1.70% | ||||||||
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | $ 0 | $ (1.4) | $ 0 | ||||||||
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Percent | (0.00%) | (1.20%) | (0.00%) | ||||||||
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses | $ (2) | $ (0.6) | $ (1.8) | ||||||||
Net change in valuation allowance related to non-U.S. deffered tax assets, primarily net operating losses, percent | (1.00%) | (0.50%) | (1.00%) | ||||||||
Difference between U.S. federal statutory and foreign tax rates | $ (4.4) | $ (4) | $ (2.5) | ||||||||
Difference between U.S. federal statutory and foreign tax rates, percent | (2.30%) | (3.50%) | (1.40%) | ||||||||
Change in unrecognized tax benefits | $ (1.4) | $ 1.5 | $ (0.2) | ||||||||
Changes in unrecognized tax benefits, percent | (0.70%) | 1.30% | (0.10%) | ||||||||
Other tax credits | $ (5.1) | $ (2.9) | $ (4.4) | ||||||||
Other tax credits, percent | (2.60%) | (2.60%) | (2.50%) | ||||||||
Recognition of deferred tax assets | $ 0 | $ (0.1) | $ (1.4) | ||||||||
Recognition of deferred tax assets, percent | 0.00% | (0.10%) | (0.80%) | ||||||||
Other - net | $ 0.6 | $ 1.2 | $ 0.5 | ||||||||
Other - net, percent | 0.30% | 1.00% | 0.30% | ||||||||
Income tax expense | $ 14.5 | $ 14.6 | $ 18.7 | $ 14.8 | $ 15.5 | $ 15.1 | $ (8.6) | $ 13.7 | $ 62.7 | $ 35.7 | $ 56 |
Incomr tax expense, percent | 32.10% | 31.30% | 31.20% |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal | $ 42.8 | $ 20.8 | $ 42.8 | ||||||||
State | 8.3 | 2 | 3.9 | ||||||||
Non-U.S. | 8.7 | 9.6 | 10.5 | ||||||||
Current tax expense | 59.8 | 32.4 | 57.2 | ||||||||
Federal | 4.3 | 3.7 | 2.6 | ||||||||
State | 1.8 | 1.3 | 0.8 | ||||||||
Non-U.S. | (3.2) | (1.7) | (4.6) | ||||||||
Deferred tax expense (benefit) | 2.9 | 3.3 | (1.2) | ||||||||
Income tax expense | $ 14.5 | $ 14.6 | $ 18.7 | $ 14.8 | $ 15.5 | $ 15.1 | $ (8.6) | $ 13.7 | $ 62.7 | $ 35.7 | $ 56 |
Income Taxes (Schedule of Inc75
Income Taxes (Schedule of Income before Income Taxes and Equity in Net Income of Unconsolidated Entities) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 160.6 | $ 80.4 | $ 144.1 | ||||||||
Non-U.S. | 33.1 | 33.6 | 33.9 | ||||||||
Income before income taxes and equity in net income of unconsolidated entities | $ 51.5 | $ 47.6 | $ 50.3 | $ 44.1 | $ 48.4 | $ 45 | $ (18.9) | $ 39.4 | $ 193.7 | $ 114 | $ 178 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Stock-based compensation expense | $ 3.1 | $ 3.3 |
Accrued liabilities | 14.3 | 13.6 |
Deferred revenue | 0.9 | 0 |
Net operating loss carryforwards - U.S. | 7.6 | 10.5 |
Net operating loss carryforwards - Non-U.S. | 3.7 | 7.7 |
Credits and incentive carryforwards | 0.6 | 0 |
Deferred royalty revenue | 0.3 | 0.4 |
Allowance for doubtful accounts | 1 | 0.9 |
Deferred rent | 8.9 | 10 |
Unrealized exchange losses, net | 0.4 | 0 |
Total deferred tax assets | 40.8 | 46.4 |
Deferred tax liabilities: | ||
Acquired intangible assets | (13.2) | (16.4) |
Property, equipment and capitalized software | (28.1) | (23.2) |
Unrealized exchange gains, net | 0 | (0.2) |
Prepaid expenses | (4.3) | (3.7) |
Investments in unconsolidated entities | (13.7) | (12.8) |
Other | (0.1) | (0.4) |
Total deferred tax liabilities | 59.4 | 56.7 |
Net deferred tax liability before valuation allowance | 18.6 | 10.3 |
Valuation allowance | (1.2) | (6.7) |
Total deferred tax liabilities | $ (19.8) | $ (17) |
Income Taxes (Schedule of Def77
Income Taxes (Schedule of Deferred Tax Assets and Liabilities Included in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Valuation Allowance [Line Items] | ||
Deferred tax assets, net - current | $ 0 | $ 0 |
Deferred tax liabilities, net - noncurrent | (19.8) | (17) |
Total deferred tax liabilities | $ (19.8) | (17) |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Net, Current | (9) | |
Deferred Tax Assets, Net, Noncurrent | $ 9 |
Income Taxes (Summary of Operat
Income Taxes (Summary of Operating Loss Carryforward- U.S and Non-U.S) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Operating Loss Carryforwards [Line Items] | ||
Undistributed earnings of foreigh subsidiaries, permanently invested | $ 142.7 | |
Non-U.S. [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 18.4 | $ 37.9 |
Operating loss carryforwards, not subject to valuation allowances | 12.1 | 5.1 |
Non-U.S. [Member] | Subject to Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 2.9 | 5.2 |
Non-U.S. [Member] | No Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 15.5 | 32.7 |
U.S [Member] | Subject to Expiration Date [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 21.6 | $ 30 |
Income Taxes (Accounting for Un
Income Taxes (Accounting for Uncertainty in Tax Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits - beginning of the year | $ 11.9 | $ 13 |
Increases as a resulting of tax positions taken during a prior-year period | 4.4 | 0.9 |
Decreases as a resulting of tax positions taked during a prior-year period | (0.7) | (0.1) |
Increases as a result of tax positions taken during the current period | 2.4 | 2 |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | (1.8) | (2.4) |
Decrease of unrecognized tax benefits relating to settlements with tax authorities | 3.4 | |
Reductions as a result of lapse of the applicable statute of limitations | (1.7) | (1.5) |
Gross unrecognized tax benefits - end of the year | 14.5 | 11.9 |
Unrecognized tax benefits included in current liabilities | 4.2 | 5.1 |
Unrecognized tax benefits included in non-current liabilities | 6 | $ 6.6 |
Result of tax position taken during period | 2.1 | |
Increase in income tax expense | 2.1 | |
Reductions resulting from settlements and lapse of statute of limitations | 3.5 | |
Unrecognized tax benefits that would impact effective tax rate | 10.5 | |
Unrecognized tax benefits, period increase (decrease) | 6 | |
Reductions resulting from settlements and lapse statute of limitations, tax effect | 3.2 | |
Decrease in income tax expense upon recognition of gross unrecognized tax benefits | $ 9.4 |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Examinations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Liabilities for interest and penalties | $ 1.2 | $ 1.5 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) | Dec. 31, 2015USD ($)shares |
Equity [Abstract] | |
Shares repurchased, program life to date, shares | shares | 9,383,132 |
Shares repurchased, program life to date, value | $ 623,500,000 |
Stock repurchase program, authorized amount | 1,000,000,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 376,500,000 |
Selected Quarterly Financial 82
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 201.6 | $ 195.3 | $ 202.1 | $ 189.8 | $ 196.4 | $ 193.1 | $ 189.4 | $ 181.2 | $ 788.8 | $ 760.1 | $ 698.3 |
Total operating expense | 151.5 | 149.1 | 152.4 | 145.3 | 149.8 | 147.8 | 214.2 | 142.7 | 598.2 | 654.5 | 527.6 |
Operating income | 50.1 | 46.2 | 49.7 | 44.5 | 46.6 | 45.3 | (24.8) | 38.5 | 190.6 | 105.6 | 170.7 |
Non-operating income (expense), net | 1.4 | 1.4 | 0.6 | (0.4) | 1.8 | (0.3) | 5.9 | 0.9 | 3.1 | 8.4 | 7.3 |
Income before income taxes and equity in net income of unconsolidated entities | 51.5 | 47.6 | 50.3 | 44.1 | 48.4 | 45 | (18.9) | 39.4 | 193.7 | 114 | 178 |
Equity in net income (loss) of unconsolidated entities | 0.3 | 0.5 | 0.6 | 0.5 | (1.4) | 0.3 | 0.5 | 0.6 | 1.8 | 0 | 1.4 |
Income tax expense | 14.5 | 14.6 | 18.7 | 14.8 | 15.5 | 15.1 | (8.6) | 13.7 | 62.7 | 35.7 | 56 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 37.3 | 33.5 | 32.2 | 29.8 | 31.5 | 30.2 | (9.8) | 26.3 | |||
Consolidated net income | 132.8 | 78.3 | 123.4 | ||||||||
Net (income) loss attributable to the noncontrolling interest | 0 | 0 | 0 | (0.1) | 0 | 0 | 0 | 0.1 | (0.2) | 0 | 0.1 |
Net income attributable to Morningstar, Inc. | $ 37.3 | $ 33.5 | $ 32.2 | $ 29.7 | $ 31.5 | $ 30.2 | $ (9.8) | $ 26.4 | $ 132.6 | $ 78.3 | $ 123.5 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.85 | $ 0.76 | $ 0.73 | $ 0.67 | $ 0.71 | $ 0.67 | $ (0.22) | $ 0.59 | |||
Earnings Per Share, Basic [Abstract] | |||||||||||
Basic net income per share attributable to Morningstar, Inc. (in dollars per share) | $ 3 | $ 1.75 | $ 2.68 | ||||||||
Weighted average common shares outstanding - basic | 43.8 | 44.2 | 44.3 | 44.3 | 44.4 | 44.7 | 44.8 | 44.8 | 44.2 | 44.7 | 46.2 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.85 | $ 0.76 | $ 0.72 | $ 0.67 | $ 0.71 | $ 0.67 | $ (0.22) | $ 0.58 | |||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Diluted net income per share attributable to Morningstar, Inc. (in dollars per share) | $ 3 | $ 1.74 | $ 2.66 | ||||||||
Weighted average common shares outstanding - diluted | 43.9 | 44.3 | 44.4 | 44.5 | 44.5 | 44.9 | 44.8 | 45.1 | 44.3 | 44.9 | 46.5 |
Dividends Per Common Share: [Abstract] | |||||||||||
Common stock, dividends, per share, declared | $ 0.22 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.79 | $ 0.70 | $ 0.545 |
Dividends paid per common share | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.76 | $ 0.68 | $ 0.375 |