Morningstar (MORN) 10-Q 28 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 21, 2016
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-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		43,058,990

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue	$ 196.1	$ 195.3	$ 586.4	$ 587.2
Operating expense:
Cost of revenue	84.9	83.4	256.3	245.2
Sales and marketing	23.1	23.3	71.1	73.8
General and administrative	25.8	26	76.1	79.9
Depreciation and amortization	18.1	16.4	52	47.8
Total operating expense	151.9	149.1	455.5	446.7
Operating income	44.2	46.2	130.9	140.5
Non-operating income (expense):
Interest income, net	0	0.2	0.3	0.5
Gain on sale of investments, reclassified from other comprehensive income	0.3	0	0.5	0.4
Other income, net	1.8	1.2	4.8	0.8
Non-operating income, net	2.1	1.4	5.6	1.7
Income before income taxes and equity in net income of unconsolidated entities	46.3	47.6	136.5	142.2
Equity in net income of unconsolidated entities	0.4	0.5	0.7	1.5
Income tax expense	16.5	14.6	46.5	48.2
Consolidated net income	30.2	33.5	90.7	95.5
Net income attributable to the noncontrolling interest	0	0	0	(0.2)
Net income attributable to Morningstar, Inc.	$ 30.2	$ 33.5	$ 90.7	$ 95.3
Net income per share attributable to:
Basic (in dollars per share)	$ 0.70	$ 0.76	$ 2.11	$ 2.15
Diluted (in dollars per share)	0.70	0.76	2.09	2.15
Dividends declared per common share (in dollars per share)	0.22	0.19	0.66	0.57
Dividends paid per common share (in dollars per share)	$ 0.22	$ 0.19	$ 0.66	$ 0.57
Weighted average shares outstanding:
Basic (in shares)	43.1	44.2	43	44.3
Diluted (in shares)	43.3	44.3	43.3	44.4

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated net income	$ 30.2	$ 33.5	$ 90.7	$ 95.5
Other comprehensive loss:
Foreign currency translation adjustment	(1.7)	(12.8)	(9.8)	(23.8)
Unrealized gains (losses) on securities, net of tax:
Unrealized holding gains (losses) arising during period	0.6	(0.8)	1.1	(1.3)
Reclassification (gains) losses included in net income	0.2	(0.5)	0	(0.2)
Other comprehensive loss	(0.9)	(14.1)	(8.7)	(25.3)
Comprehensive income	29.3	19.4	82	70.2
Comprehensive income attributable to noncontrolling interest	0	(0.2)	0	(0.4)
Comprehensive income attributable to Morningstar, Inc.	$ 29.3	$ 19.2	$ 82	$ 69.8

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 219.4	$ 207.1
Investments	45.7	41.5
Accounts receivable, less allowance of $1.9 and $1.8, respectively	124.3	139.3
Other	23.7	22
Total current assets	413.1	409.9
Property, equipment, and capitalized software, less accumulated depreciation and amortization of $203.9 and $169.8, respectively	150	134.5
Investments in unconsolidated entities	51	35.6
Goodwill	370.7	364.2
Intangible assets, net	65.3	74.2
Other assets	9.4	10.6
Total assets	1,059.5	1,029
Current liabilities:
Accounts payable and accrued liabilities	35	39.2
Accrued compensation	57.7	80.9
Deferred revenue	144.9	140.7
Short-term debt	60	35
Other	16.6	8.6
Total current liabilities	314.2	304.4
Accrued compensation	9.9	8.9
Deferred tax liability, net	17.3	19.8
Deferred rent	22.6	25.4
Other long-term liabilities	33.5	29.9
Total liabilities	397.5	388.4
Morningstar, Inc. shareholders' equity:
Common stock, no par value, 200,000,000 shares authorized, of which 43,058,990 and 43,403,076 shares were outstanding as of September 30, 2016 and December 31, 2015, respectively	0	0
Treasury stock at cost, 9,961,108 and 9,478,449 shares as of September 30, 2016 and December 31, 2015, respectively	(657.3)	(619.8)
Additional paid-in capital	580.8	575.5
Retained earnings	801.5	739.2
Accumulated other comprehensive income (loss):
Currency translation adjustment	(63.3)	(53.5)
Unrealized loss on available-for-sale securities	0	(1.1)
Total accumulated other comprehensive loss	(63.3)	(54.6)
Total Morningstar, Inc. shareholders' equity	661.7	640.3
Noncontrolling interest	0.3	0.3
Total equity	662	640.6
Total liabilities and equity	$ 1,059.5	$ 1,029

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 1.9	$ 1.8
Accumulated depreciation and amortization	$ 203.9	$ 169.8
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Outstanding	43,058,990	43,403,076
Treasury Stock, Shares	9,961,108	9,478,449

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non Controlling Interests
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
Increase (Decrease) in Stockholders' Equity
Net income	$ 90.7				90.7		0
Other comprehensive income (loss):
Unrealized gain on available-for-sale investments, net of income tax of $1.0	1.1					1.1	0
Reclassification of adjustments for gain included in net income, net of income tax of $0.5	0
Foreign currency translation adjustment	(9.8)					(9.8)	0
Other comprehensive loss, net	(8.7)					(8.7)	0
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net of shares withheld for taxes on settlements of restricted stock units	(4)	$ 0	1.3	(5.3)
Issuance of common stock related to stock-option exercises and vesting of restricted stock units, net of shares withheld for taxes on settlements of restricted stock units (in shares)		153,699
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
Stock-based compensation	10.6			10.6
Common share repurchased	(38.8)		(38.8)
Common share repurchased (in shares)		(497,785)
Dividends declared	(28.4)				(28.4)
Balance at Sep. 30, 2016	$ 662	$ 0	$ (657.3)	$ 580.8	$ 801.5	$ (63.3)	$ 0.3
Balance (in shares) at Sep. 30, 2016	43,058,990	43,058,990

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Equity (Parenthetical) $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Statement of Stockholders' Equity [Abstract]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ 1
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Consolidated net income	$ 90.7	$ 95.5
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	52	47.8
Deferred income taxes	(2.9)	(2.7)
Stock-based compensation expense	10.6	13.5
Provision for bad debt	0.7	0.6
Equity in net income of unconsolidated entities	(0.7)	(1.5)
Other, net	(5.2)	(0.5)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	13.1	9
Other assets	(1.4)	(1.1)
Accounts payable and accrued liabilities	(3.9)	1.3
Accrued compensation	(20.8)	(7.3)
Income taxes- current	6.3	20.5
Deferred revenue	4.1	13.1
Deferred rent	(2.7)	0
Other liabilities	3.3	0.4
Cash provided by operating activities	143.2	188.6
Investing activities
Purchases of investments	(24.4)	(28.3)
Proceeds from maturities and sales of investments	21.6	24.8
Capital expenditures	(47.5)	(39.9)
Acquisitions, net of cash acquired	(15.8)	(3.4)
Purchases of equity- and cost-method investments	(16.4)	0
Other, net	0	(6.5)
Cash used for investing activities	(82.5)	(53.3)
Financing activities
Common shares repurchased	(38.8)	(30.1)
Dividends paid	(28.5)	(25.3)
Proceeds from short-term debt	40	15
Repayment of short-term debt	(15)	(45)
Proceeds from stock-option exercises, net	0.4	3.7
Employee taxes paid from withholding of restricted stock units	(4.4)	(4.9)
Other, net	0	0.1
Cash used for financing activities	(46.3)	(86.5)
Effect of exchange rate changes on cash and cash equivalents	(2.1)	(10.3)
Net increase in cash and cash equivalents	12.3	38.5
Cash and cash equivalents-beginning of period	207.1	185.2
Cash and cash equivalents-end of period	219.4	223.7
Supplemental disclosure of cash flow information:
Cash paid for income taxes	43.3	27.3
Interest Paid	0.8	0.3
Supplemental information of non-cash investing and financing activities:
Unrealized gain (loss) on available-for-sale investments	1.5	(2.2)
Software and equipment obtained under long-term financing arrangement	$ 9	$ 1.3

Basis of Presentation of Interi

Basis of Presentation of Interim Financial Information	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation of Interim Financial Information	Basis of Presentation of Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Morningstar, Inc. and subsidiaries (Morningstar, we, our, the company) have been prepared to conform to the rules and regulations of the Securities and Exchange Commission (SEC). The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, and expenses. Actual results could differ from those estimates. In the opinion of management, the statements reflect all adjustments, which are of a normal recurring nature, necessary to present fairly our financial position, results of operations, equity, and cash flows. These financial statements and notes are unaudited and should be read in conjunction with our Audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the SEC on February 26, 2016 . The acronyms that appear in the Notes to our Unaudited Condensed Consolidated Financial Statements refer to the following: ASC: Accounting Standards Codification ASU: Accounting Standards Update FASB: Financial Accounting Standards Board

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies We discuss our significant accounting policies in Note 2 of our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 , filed with the SEC on February 26, 2016 . 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 March 17, 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which provides guidance on assessing whether an entity is a principal or an agent in a revenue transaction and whether an entity reports revenue on a gross or net basis. On April 14, 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , which provides guidance on identifying performance obligations and accounting for licenses of intellectual property. On May 6, 2016, the FASB issued ASU No. 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC guidance because of ASU No. 2014-09 and ASU No. 2014-16 pursuant to staff announcements at the March 3, 2016 EITF Meeting , which rescinds the following SEC Staff Observer comments from ASC 605, Revenue Recognition , upon an entity's early adoption of ASC 606, Revenue from Contracts with Customers : Revenue and expense recognition for freight services in process, accounting for shipping and handling fees and costs, and accounting for consideration given by a vendor to a customer (including reseller of the vendor's products). On May 9, 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients , which makes narrow-scope amendments to ASU No. 2014-09 and provides practical expedients to simplify the transition to the new standard and clarify certain aspects of the standard. The effective date and transition requirements for ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-11, and ASU No. 2016-12 are the same as the effective date and transition requirements of ASU No. 2014-09. We are evaluating the effect that ASU No. 2016-08, ASU No. 2016-10, ASU No. 2016-11, and ASU No. 2016-12 will have on our consolidated financial statements and related disclosures. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases , which will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. The new standard is effective for us on January 1, 2019. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. We are evaluating the effect that ASU No. 2016-02 will have on our consolidated financial statements and related disclosures. On March 15, 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The new standard is effective for us on January 1, 2017. Early adoption is permitted. The new standard should be applied prospectively for investments that qualify for the equity method of accounting after the effective date. We elected to early adopt ASU No. 2016-07 in the quarter ended March 31, 2016. The adoption of ASU No. 2016-07 did not have a material effect on our consolidated financial statements. On March 30, 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which includes amendments to accounting for income taxes at settlement, forfeitures, and net settlements to cover withholding taxes. The new standard is effective for us on January 1, 2017. Early adoption is permitted but requires all elements of the amendments to be adopted at once rather than individually. We elected to early adopt ASU No. 2016-09 in the quarter ended June 30, 2016, which requires us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid in capital for all periods in fiscal year 2016. Additional amendments to the accounting for income taxes and minimum statutory withholding tax requirements had no impact to retained earnings as of January 1, 2016, where the cumulative effective of these changes are required to be recorded. We have elected to continue to estimate forfeiture expected to occur to determine the amount of compensation cost to be recognized in each period. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented which resulted in an increase to both net cash provided by operating activities and net cash used for financing activities of $2.1 million for the nine months ended September 30, 2015. The adoption did not have an impact on net cash provided by operating activities and net cash used for financing activities for the three months ended September 30, 2015. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in our consolidated cash flow statements because such cash flows have historically been presented as a financing activity. Adoption of the new standard resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid in capital of $0.8 million for the nine months ended September 30, 2016. The adoption did not have a material effect on our previously reported results for the quarter ended March 31, 2016 as most of our stock options and restricted stock units vest in the second quarter. On August 26, 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which reduces diversity in practice of how certain transactions are classified in the statement of cash flows. The new guidance clarifies the classification of cash activity related to debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate and bank-owned life insurance policies, distributions received from equity-method investments, and beneficial interests in securitization transactions. The guidance also describes a predominance principle in which cash flows with aspects of more than one class that cannot be separated should be classified based on the activity that is likely to be the predominant source or use of cash flow. The new standard is effective for us on January 1, 2018. Early adoption is permitted, including adoption in an interim period, but requires all elements of the amendments to be adopted at once rather than individually. The new standard must be adopted using a retrospective transition method. We are evaluating the effect that ASU No. 2016-15 will have on our consolidated financial statements and related disclosures.

Credit Arrangements (Notes)

Credit Arrangements (Notes)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Credit Arrangements	Credit Arrangements In March 2016, we increased our single-bank revolving credit facility from $75.0 million to $100.0 million . We had an outstanding principal balance of $60.0 million at an interest rate of LIBOR plus 100 basis points as of September 30, 2016 , leaving borrowing availability of $40.0 million .

Acquisitions, Goodwill and Othe

Acquisitions, Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill, and Other Intangible Assets Acquisitions On March 31, 2016, we acquired RequiSight, LLC, which does business as RightPond, a provider of business intelligence data and analytics on defined contribution and defined benefit plans for financial services firms. We began consolidating the financial results of RightPond in our Consolidated Financial Statements on March 31, 2016. On May 31, 2016, we acquired InvestSoft Technology, Inc. (InvestSoft), a provider of fixed-income analytics. We began consolidating the financial results of InvestSoft in our Consolidated Financial Statements on May 31, 2016. Goodwill The following table shows the changes in our goodwill balances from December 31, 2015 to September 30, 2016 : (in millions) Balance as of December 31, 2015 $ 364.2 Acquisitions and foreign currency translation 6.5 Balance as of September 30, 2016 $ 370.7 We did not record any impairment losses in the first nine months of 2016 or 2015 . We perform our annual impairment reviews in the fourth quarter. Intangible Assets The following table summarizes our intangible assets: As of September 30, 2016 As of December 31, 2015 (in millions) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Intellectual property $ 28.5 $ (27.7 ) $ 0.8 9 $ 28.3 $ (26.7 ) $ 1.6 9 Customer-related assets 137.3 (97.6 ) 39.7 12 137.5 (92.3 ) 45.2 12 Supplier relationships 0.2 (0.1 ) 0.1 20 0.2 (0.1 ) 0.1 20 Technology-based assets 92.6 (69.8 ) 22.8 8 89.5 (64.4 ) 25.1 8 Non-competition agreements 4.8 (2.9 ) 1.9 5 4.6 (2.4 ) 2.2 5 Total intangible assets $ 263.4 $ (198.1 ) $ 65.3 10 $ 260.1 $ (185.9 ) $ 74.2 10 The following table summarizes our amortization expense related to intangible assets: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Amortization expense $ 4.5 $ 5.5 $ 14.3 $ 16.4 We amortize intangible assets using the straight-line method over their expected economic useful lives. We expect intangible amortization expense for the remainder of 2016 and subsequent years as follows: (in millions) Remainder of 2016 (from October 1 through December 31) $ 4.0 2017 13.8 2018 11.7 2019 9.2 2020 5.6 Thereafter 21.0 Our estimates of future amortization expense for intangible assets may be affected by acquisitions, divestitures, changes in the estimated average useful life, and foreign currency translation.

Income Per Share

Income Per Share	9 Months Ended
	Sep. 30, 2016
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 net income per share: Three months ended September 30 Nine months ended September 30 (in millions, except per share amounts) 2016 2015 2016 2015 Basic net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc. $ 30.2 $ 33.5 $ 90.7 $ 95.3 Weighted average common shares outstanding 43.1 44.2 43.0 44.3 Basic net income per share attributable to Morningstar, Inc. $ 0.70 $ 0.76 $ 2.11 $ 2.15 Diluted net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc. $ 30.2 $ 33.5 $ 90.7 $ 95.3 Weighted average common shares outstanding 43.1 44.2 43.0 44.3 Net effect of dilutive stock options, restricted stock units, and performance share awards 0.2 0.1 0.3 0.1 Weighted average common shares outstanding for computing diluted income per share 43.3 44.3 43.3 44.4 Diluted net income per share attributable to Morningstar, Inc. $ 0.70 $ 0.76 $ 2.09 $ 2.15 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: Three months ended September 30 Nine months ended September 30 (in thousands) 2016 2015 2016 2015 Weighted average restricted stock units 4 45 8 41 Weighted average performance share awards — 5 — 7 Total 4 50 8 48

Segment and Geographical Area I

Segment and Geographical Area Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment and Geographical Area Information	Segment and Geographical Area Information Segment Information We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. The accounting policies for our single reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2015 . We evaluate the performance of our reporting segment based on revenue and operating income. Geographical Area Information The tables below summarize our revenue and long-lived assets by geographical area: External revenue by geographical area Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 United States $ 143.5 $ 145.2 $ 430.6 $ 437.3 United Kingdom 15.2 15.6 45.8 46.4 Continental Europe 16.0 14.7 47.3 43.4 Australia 8.3 7.5 24.1 23.2 Canada 7.1 6.6 20.6 20.6 Asia 5.0 4.6 15.1 13.4 Other 1.0 1.1 2.9 2.9 Total International 52.6 50.1 155.8 149.9 Consolidated revenue $ 196.1 $ 195.3 $ 586.4 $ 587.2 Long-lived assets by geographical area As of September 30 As of December 31 (in millions) 2016 2015 United States $ 135.8 $ 116.9 United Kingdom 7.0 8.6 Continental Europe 2.1 2.2 Australia 0.7 0.9 Canada 0.5 0.7 Asia 3.8 5.2 Other 0.1 — Total International 14.2 17.6 Consolidated property, equipment, and capitalized software, net $ 150.0 $ 134.5

Investments and Fair Value Meas

Investments and Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Investments and Fair Value Measurements	Investments and Fair Value Measurements We classify our investments into three categories: available-for-sale, held-to-maturity, and trading securities. 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 September 30 As of December 31 (in millions) 2016 2015 Available-for-sale $ 28.4 $ 17.3 Held-to-maturity 15.9 15.3 Trading securities 1.4 8.9 Total $ 45.7 $ 41.5 The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity: As of September 30, 2016 As of December 31, 2015 (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 $ 26.0 $ 1.3 $ (1.2 ) $ 26.1 $ 17.4 $ 0.3 $ (1.6 ) $ 16.1 Mutual funds 2.2 0.1 — 2.3 1.3 — (0.1 ) 1.2 Total $ 28.2 $ 1.4 $ (1.2 ) $ 28.4 $ 18.7 $ 0.3 $ (1.7 ) $ 17.3 Held-to-maturity: Certificates of deposit $ 14.1 $ — $ — $ 14.1 $ 15.3 $ — $ — $ 15.3 Convertible note 1.8 — — 1.8 — — — — Total $ 15.9 $ — $ — $ 15.9 $ 15.3 $ — $ — $ 15.3 As of September 30, 2016 and December 31, 2015 , investments with unrealized losses for greater than a 12-month period were not material to the Unaudited Condensed Consolidated Balance Sheets and were not deemed to have other than temporary declines in value. The table below shows the cost and fair value of investments classified as available-for-sale and held-to-maturity based on their contractual maturities as of September 30, 2016 and December 31, 2015 . As of September 30, 2016 As of December 31, 2015 (in millions) Cost Fair Value Cost Fair Value Available-for-sale: Equity securities, exchange-traded funds, and mutual funds $ 28.2 $ 28.4 $ 18.7 $ 17.3 Total $ 28.2 $ 28.4 $ 18.7 $ 17.3 Held-to-maturity: Due in one year or less $ 14.1 $ 14.1 $ 15.3 $ 15.3 Due in one to three years 1.8 1.8 — — Total $ 15.9 15.9 $ 15.3 $ 15.3 The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Unaudited Condensed Consolidated Statements of Income: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Realized gains $ 0.5 $ 0.1 $ 1.6 $ 1.0 Realized losses (0.2 ) (0.1 ) (1.1 ) (0.6 ) Realized gains, net $ 0.3 $ — $ 0.5 $ 0.4 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 Unaudited Condensed Consolidated Statements of Income: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Unrealized gains (losses), net $ — $ (0.7 ) $ 0.1 $ (1.0 ) 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: Fair Value Fair Value Measurements as of September 30, 2016 as of Using Fair Value Hierarchy (in millions) September 30, 2016 Level 1 Level 2 Level 3 Available-for-sale investments: Equity securities and exchange-traded funds $ 26.1 $ 26.1 $ — $ — Mutual funds 2.3 2.3 — — Trading securities 1.4 1.4 — — Cash equivalents 0.2 0.2 — — Total $ 30.0 $ 30.0 $ — $ — 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 $ — $ — 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. 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 September 30, 2016 and December 31, 2015 .

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-Based Compensation Plans All of our employees and our non-employee directors are eligible for awards under the Morningstar 2011 Stock Incentive Plan (the 2011 Plan), which provides for a variety of stock-based awards, including stock options, performance share awards, restricted stock units, and restricted stock. The following table summarizes the stock-based compensation expense included in each of our operating expense categories: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Cost of revenue $ 1.5 $ 2.1 $ 5.5 $ 6.2 Sales and marketing 0.3 0.6 1.3 1.7 General and administrative 1.0 1.9 3.8 5.6 Total stock-based compensation expense $ 2.8 $ 4.6 $ 10.6 $ 13.5 As of September 30, 2016 , the total unrecognized stock-based compensation cost related to outstanding restricted stock units and performance share awards expected to vest was $28.1 million , which we expect to recognize over a weighted average period of 31 months.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate The following table shows our effective tax rate for the three months and nine months ended September 30, 2016 and September 30, 2015 : Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Income before income taxes and equity in net income of unconsolidated entities $ 46.3 $ 47.6 $ 136.5 $ 142.2 Equity in net income of unconsolidated entities 0.4 0.5 0.7 1.5 Net income attributable to noncontrolling interest — — — (0.2 ) Total $ 46.7 $ 48.1 $ 137.2 $ 143.5 Income tax expense $ 16.5 $ 14.6 $ 46.5 $ 48.2 Effective tax rate 35.3 % 30.4 % 33.9 % 33.6 % Our effective tax rate in the third quarter and for the first nine months of 2016 was 35.3% and 33.9% , a respective increase of 4.9 and 0.3 percentage points compared with the same periods a year ago. During the third quarter of 2015, we recognized additional tax benefits for credits and incentives. We also recognized a deferred tax asset for net operating losses for certain of our foreign operations that we expect will be utilized over time based upon recent financial performance and forecasted taxable income. Both of these items reduced our effective tax rate in the third quarter of 2015. Unrecognized Tax Benefits The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2016 and December 31, 2015 , as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. As of September 30 As of December 31 (in millions) 2016 2015 Gross unrecognized tax benefits $ 18.7 $ 14.5 Gross unrecognized tax benefits that would affect income tax expense $ 14.7 $ 10.5 Decrease in income tax expense upon recognition of gross unrecognized tax benefits $ 13.4 $ 9.4 Our Unaudited Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. As of September 30 As of December 31 Liabilities for Unrecognized Tax Benefits (in millions) 2016 2015 Current liability $ 7.1 $ 4.2 Non-current liability 7.4 6.0 Total liability for unrecognized tax benefits $ 14.5 $ 10.2 Because we conduct business globally, we file income tax returns in U.S. federal, state, local, and foreign jurisdictions. We are currently under audit by federal and various state and local tax authorities in the United States, as well as tax authorities in certain non-U.S. jurisdictions. It is possible, though not likely, that the examination phase of some of these audits will conclude in 2016 . It is not possible to estimate the effect of current audits on previously recorded unrecognized tax benefits. We have not provided federal and state income taxes on accumulated undistributed earnings of certain foreign subsidiaries because these earnings have been permanently reinvested. Approximately 80% of our cash, cash equivalents, and investments balance as of September 30, 2016 was held by our operations outside of the United States. We believe that our cash balances and investments in the United States, along with cash generated from our U.S. operations, will be sufficient to meet our U.S. operating and cash needs for the foreseeable future, without requiring us to repatriate earnings from these foreign subsidiaries. It is not practical to determine the amount of the unrecognized deferred tax liability related to the undistributed earnings. Certain of our non-U.S. operations have incurred net operating losses (NOLs) which may become deductible to the extent these operations become profitable. For each of our operations, we evaluate whether it is more likely than not that the tax benefits related to NOLs will be realized. As part of this evaluation, we consider evidence such as tax planning strategies, historical operating results, forecasted taxable income, and recent financial performance. In the year that certain non-U.S. operations record a loss, we do not recognize a corresponding tax benefit, thus increasing our effective tax rate. Upon determining that it is more likely than not that the NOLs will be realized, we reduce the tax valuation allowances related to these NOLs, which results in a reduction to our income tax expense and our effective tax rate in the period.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2016
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. While it is difficult to predict the outcome of any particular proceeding, 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	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program We have an ongoing authorization, originally approved by our board of directors in September 2010 and subsequently amended, to repurchase up to $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 September 30, 2016 , we had repurchased a total of 9,880,917 shares for $662.3 million under this authorization, leaving approximately $337.7 million available for future repurchases.

Subsequent Events Subsequent Ev

Subsequent Events Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 14, 2016, we announced that the company had entered into a definitive agreement to acquire PitchBook Data, Inc. (PitchBook). PitchBook delivers data, research, and technology covering the breadth of the private capital markets, including venture capital, private equity, and mergers and acquisitions. Morningstar owned approximately 20% of PitchBook as of September 30, 2016. We expect to pay approximately $180.0 million (subject to working capital adjustments) for the remaining ownership interest based on the terms of the definitive agreement. This agreed upon purchase price values PitchBook at approximately $225.0 million . Subject to customary closing conditions, we anticipate the transaction will close in the fourth quarter of 2016.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Segment Reporting Policy	We report our results in a single reportable segment, which reflects how our chief operating decision maker allocates resources and evaluates our financial results. Because we have one reportable segment, all required financial segment information can be found directly in the Unaudited Condensed Consolidated Financial Statements. The accounting policies for our single reportable segment are the same as those described in “Note 2. Summary of Significant Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2015 . We evaluate the performance of our reporting segment based on revenue and operating income.
Investments- Debt and Equity Securities Policy	We classify our investments into three categories: available-for-sale, held-to-maturity, and trading securities. 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:

Acquisitions, Goodwill and Ot22

Acquisitions, Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table shows the changes in our goodwill balances from December 31, 2015 to September 30, 2016 : (in millions) Balance as of December 31, 2015 $ 364.2 Acquisitions and foreign currency translation 6.5 Balance as of September 30, 2016 $ 370.7
Schedule of Intangible Assets	The following table summarizes our intangible assets: As of September 30, 2016 As of December 31, 2015 (in millions) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Gross Accumulated Amortization Net Weighted Average Useful Life (years) Intellectual property $ 28.5 $ (27.7 ) $ 0.8 9 $ 28.3 $ (26.7 ) $ 1.6 9 Customer-related assets 137.3 (97.6 ) 39.7 12 137.5 (92.3 ) 45.2 12 Supplier relationships 0.2 (0.1 ) 0.1 20 0.2 (0.1 ) 0.1 20 Technology-based assets 92.6 (69.8 ) 22.8 8 89.5 (64.4 ) 25.1 8 Non-competition agreements 4.8 (2.9 ) 1.9 5 4.6 (2.4 ) 2.2 5 Total intangible assets $ 263.4 $ (198.1 ) $ 65.3 10 $ 260.1 $ (185.9 ) $ 74.2 10
Schedule of Intangible Asset, Amortization Expense	The following table summarizes our amortization expense related to intangible assets: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Amortization expense $ 4.5 $ 5.5 $ 14.3 $ 16.4
Schedule of Expected Amortization Expense	We expect intangible amortization expense for the remainder of 2016 and subsequent years as follows: (in millions) Remainder of 2016 (from October 1 through December 31) $ 4.0 2017 13.8 2018 11.7 2019 9.2 2020 5.6 Thereafter 21.0 Our estimates of future amortization expense for intangible assets may be affected by acquisitions, divestitures, changes in the estimated average useful life, and foreign currency translation.

Income Per Share (Tables)

Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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 net income per share: Three months ended September 30 Nine months ended September 30 (in millions, except per share amounts) 2016 2015 2016 2015 Basic net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc. $ 30.2 $ 33.5 $ 90.7 $ 95.3 Weighted average common shares outstanding 43.1 44.2 43.0 44.3 Basic net income per share attributable to Morningstar, Inc. $ 0.70 $ 0.76 $ 2.11 $ 2.15 Diluted net income per share attributable to Morningstar, Inc.: Net income attributable to Morningstar, Inc. $ 30.2 $ 33.5 $ 90.7 $ 95.3 Weighted average common shares outstanding 43.1 44.2 43.0 44.3 Net effect of dilutive stock options, restricted stock units, and performance share awards 0.2 0.1 0.3 0.1 Weighted average common shares outstanding for computing diluted income per share 43.3 44.3 43.3 44.4 Diluted net income per share attributable to Morningstar, Inc. $ 0.70 $ 0.76 $ 2.09 $ 2.15
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	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: Three months ended September 30 Nine months ended September 30 (in thousands) 2016 2015 2016 2015 Weighted average restricted stock units 4 45 8 41 Weighted average performance share awards — 5 — 7 Total 4 50 8 48

Segment and Geographical Area24

Segment and Geographical Area Information (Tables)	9 Months Ended
	Sep. 30, 2016
Revenue from External Customer [Line Items]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	The tables below summarize our revenue and long-lived assets by geographical area: External revenue by geographical area Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 United States $ 143.5 $ 145.2 $ 430.6 $ 437.3 United Kingdom 15.2 15.6 45.8 46.4 Continental Europe 16.0 14.7 47.3 43.4 Australia 8.3 7.5 24.1 23.2 Canada 7.1 6.6 20.6 20.6 Asia 5.0 4.6 15.1 13.4 Other 1.0 1.1 2.9 2.9 Total International 52.6 50.1 155.8 149.9 Consolidated revenue $ 196.1 $ 195.3 $ 586.4 $ 587.2 Long-lived assets by geographical area As of September 30 As of December 31 (in millions) 2016 2015 United States $ 135.8 $ 116.9 United Kingdom 7.0 8.6 Continental Europe 2.1 2.2 Australia 0.7 0.9 Canada 0.5 0.7 Asia 3.8 5.2 Other 0.1 — Total International 14.2 17.6 Consolidated property, equipment, and capitalized software, net $ 150.0 $ 134.5

Investments and Fair Value Me25

Investments and Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Investments	We classify our investment portfolio as shown below: As of September 30 As of December 31 (in millions) 2016 2015 Available-for-sale $ 28.4 $ 17.3 Held-to-maturity 15.9 15.3 Trading securities 1.4 8.9 Total $ 45.7 $ 41.5
Unrealized Gain (Loss) on Investments	The following table shows the cost, unrealized gains (losses), and fair value of investments classified as available-for-sale and held-to-maturity: As of September 30, 2016 As of December 31, 2015 (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 $ 26.0 $ 1.3 $ (1.2 ) $ 26.1 $ 17.4 $ 0.3 $ (1.6 ) $ 16.1 Mutual funds 2.2 0.1 — 2.3 1.3 — (0.1 ) 1.2 Total $ 28.2 $ 1.4 $ (1.2 ) $ 28.4 $ 18.7 $ 0.3 $ (1.7 ) $ 17.3 Held-to-maturity: Certificates of deposit $ 14.1 $ — $ — $ 14.1 $ 15.3 $ — $ — $ 15.3 Convertible note 1.8 — — 1.8 — — — — Total $ 15.9 $ — $ — $ 15.9 $ 15.3 $ — $ — $ 15.3
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 September 30, 2016 and December 31, 2015 . As of September 30, 2016 As of December 31, 2015 (in millions) Cost Fair Value Cost Fair Value Available-for-sale: Equity securities, exchange-traded funds, and mutual funds $ 28.2 $ 28.4 $ 18.7 $ 17.3 Total $ 28.2 $ 28.4 $ 18.7 $ 17.3 Held-to-maturity: Due in one year or less $ 14.1 $ 14.1 $ 15.3 $ 15.3 Due in one to three years 1.8 1.8 — — Total $ 15.9 15.9 $ 15.3 $ 15.3
Schedule of Realized Gain (Loss) on Available-For-Sale Securities	The following table shows the realized gains and losses arising from sales of our investments classified as available-for-sale recorded in our Unaudited Condensed Consolidated Statements of Income: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Realized gains $ 0.5 $ 0.1 $ 1.6 $ 1.0 Realized losses (0.2 ) (0.1 ) (1.1 ) (0.6 ) Realized gains, net $ 0.3 $ — $ 0.5 $ 0.4
Unrealized Gain (Loss) On Trading Securities	The following table shows the net unrealized gains (losses) on trading securities as recorded in our Unaudited Condensed Consolidated Statements of Income: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Unrealized gains (losses), net $ — $ (0.7 ) $ 0.1 $ (1.0 )
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: Fair Value Fair Value Measurements as of September 30, 2016 as of Using Fair Value Hierarchy (in millions) September 30, 2016 Level 1 Level 2 Level 3 Available-for-sale investments: Equity securities and exchange-traded funds $ 26.1 $ 26.1 $ — $ — Mutual funds 2.3 2.3 — — Trading securities 1.4 1.4 — — Cash equivalents 0.2 0.2 — — Total $ 30.0 $ 30.0 $ — $ — 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 $ — $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Compensation Cost By Expense Category	The following table summarizes the stock-based compensation expense included in each of our operating expense categories: Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Cost of revenue $ 1.5 $ 2.1 $ 5.5 $ 6.2 Sales and marketing 0.3 0.6 1.3 1.7 General and administrative 1.0 1.9 3.8 5.6 Total stock-based compensation expense $ 2.8 $ 4.6 $ 10.6 $ 13.5

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The following table shows our effective tax rate for the three months and nine months ended September 30, 2016 and September 30, 2015 : Three months ended September 30 Nine months ended September 30 (in millions) 2016 2015 2016 2015 Income before income taxes and equity in net income of unconsolidated entities $ 46.3 $ 47.6 $ 136.5 $ 142.2 Equity in net income of unconsolidated entities 0.4 0.5 0.7 1.5 Net income attributable to noncontrolling interest — — — (0.2 ) Total $ 46.7 $ 48.1 $ 137.2 $ 143.5 Income tax expense $ 16.5 $ 14.6 $ 46.5 $ 48.2 Effective tax rate 35.3 % 30.4 % 33.9 % 33.6 %
Schedule of Gross Unrecognized Tax Benefits	The table below provides information concerning our gross unrecognized tax benefits as of September 30, 2016 and December 31, 2015 , as well as the effect these gross unrecognized tax benefits would have on our income tax expense, if they were recognized. As of September 30 As of December 31 (in millions) 2016 2015 Gross unrecognized tax benefits $ 18.7 $ 14.5 Gross unrecognized tax benefits that would affect income tax expense $ 14.7 $ 10.5 Decrease in income tax expense upon recognition of gross unrecognized tax benefits $ 13.4 $ 9.4
Schedule of Liabilities for Unrecognized Tax Benefits	Our Unaudited Condensed Consolidated Balance Sheets include the following liabilities for unrecognized tax benefits. These amounts include interest and penalties, less any associated tax benefits. As of September 30 As of December 31 Liabilities for Unrecognized Tax Benefits (in millions) 2016 2015 Current liability $ 7.1 $ 4.2 Non-current liability 7.4 6.0 Total liability for unrecognized tax benefits $ 14.5 $ 10.2

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Income tax expense	$ (16.5)	$ (14.6)	$ (46.5)	$ (48.2)
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Income tax expense	$ 0.8		$ 0.8
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 Statutory Tax Withholding Component [Member]
New Accounting Pronouncement, Early Adoption [Line Items]
Cash provided by operating and financing activities				$ 2.1

Credit Arrangements (Details)

Credit Arrangements (Details) - Revolving Credit Facility [Member] - USD ($)	Sep. 30, 2016	Mar. 01, 2016
Line of Credit Facility [Line Items]
Line of credit	$ 100,000,000	$ 75,000,000
Principal balance of credit facility repaid	60,000,000
Borrowing availability	$ 40,000,000
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	1.00%

Acquisitions, Goodwill and Ot30

Acquisitions, Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Impairment Loss	$ 0	$ 0
Goodwill [Roll Forward]
Goodwill, Beginning Balance	364.2
Acquisitions and foreign currency translation	6.5
Goodwill, Ending Balance	$ 370.7

Acquisitions, Goodwill and Ot31

Acquisitions, Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross	$ 263.4	$ 260.1
Accumulated Amortization	(198.1)	(185.9)
Intangible assets, Net	$ 65.3	$ 74.2
Weighted-Average Useful Life (years)	10 years	10 years
Intellectual Property [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	$ 28.5	$ 28.3
Accumulated Amortization	(27.7)	(26.7)
Intangible assets, Net	$ 0.8	$ 1.6
Weighted-Average Useful Life (years)	9 years	9 years
Customer Related Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	$ 137.3	$ 137.5
Accumulated Amortization	(97.6)	(92.3)
Intangible assets, Net	$ 39.7	$ 45.2
Weighted-Average Useful Life (years)	12 years	12 years
Supplier Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	$ 0.2	$ 0.2
Accumulated Amortization	(0.1)	(0.1)
Intangible assets, Net	$ 0.1	$ 0.1
Weighted-Average Useful Life (years)	20 years	20 years
Technology-Based Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	$ 92.6	$ 89.5
Accumulated Amortization	(69.8)	(64.4)
Intangible assets, Net	$ 22.8	$ 25.1
Weighted-Average Useful Life (years)	8 years	8 years
Non-competition Agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	$ 4.8	$ 4.6
Accumulated Amortization	(2.9)	(2.4)
Intangible assets, Net	$ 1.9	$ 2.2
Weighted-Average Useful Life (years)	5 years	5 years

Acquisitions, Goodwill and Ot32

Acquisitions, Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4.5	$ 5.5	$ 14.3	$ 16.4
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2016 (from October 1 through December 31)	4		4
2,017	13.8		13.8
2,018	11.7		11.7
2,019	9.2		9.2
2,020	5.6		5.6
Thereafter	$ 21		$ 21

Income Per Share (Details)

Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4	50	8	48
Earnings Per Share, Basic [Abstract]
Net income attributable to Morningstar, Inc.	$ 30.2	$ 33.5	$ 90.7	$ 95.3
Weighted average common shares outstanding	43,100	44,200	43,000	44,300
Basic net income per share attributable to Morningstar, Inc.	$ 0.70	$ 0.76	$ 2.11	$ 2.15
Earnings Per Share, Diluted [Abstract]
Numerator for basic net income per share - undistributed and distributed earnings available to common shareholders	$ 30.2	$ 33.5	$ 90.7	$ 95.3
Weighted average common shares outstanding	43,100	44,200	43,000	44,300
Net effect of dilutive stock options and restricted stock units	200	100	300	100
Weighted average common shares outstanding for computing diluted income per share	43,300	44,300	43,300	44,400
Diluted net income per share attributable to Morningstar, Inc.	$ 0.70	$ 0.76	$ 2.09	$ 2.15
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4	45	8	41
Performance Shares [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	5	0	7

Segment and Geographical Area34

Segment and Geographical Area Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information, Operating Income (Loss) [Abstract]
External revenue	$ 196.1	$ 195.3	$ 586.4	$ 587.2
U.S. [Member]
Segment Reporting Information, Operating Income (Loss) [Abstract]
External revenue	143.5	145.2	430.6	437.3
Non-U.S. [Member]
Segment Reporting Information, Operating Income (Loss) [Abstract]
External revenue	$ 52.6	$ 50.1	$ 155.8	$ 149.9

Segment and Geographical Area35

Segment and Geographical Area Information (External Revenue and Long-Lived Assets) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	$ 196.1	$ 195.3	$ 586.4	$ 587.2
Long-lived assets	150		150		$ 134.5
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	143.5	145.2	430.6	437.3
Long-lived assets	135.8		135.8		116.9
Total International
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	52.6	50.1	155.8	149.9
Long-lived assets	14.2		14.2		17.6
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	15.2	15.6	45.8	46.4
Long-lived assets	7		7		8.6
Continental Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	16	14.7	47.3	43.4
Long-lived assets	2.1		2.1		2.2
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	8.3	7.5	24.1	23.2
Long-lived assets	0.7		0.7		0.9
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	7.1	6.6	20.6	20.6
Long-lived assets	0.5		0.5		0.7
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	5	4.6	15.1	13.4
Long-lived assets	3.8		3.8		5.2
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
External revenue	1	$ 1.1	2.9	$ 2.9
Long-lived assets	$ 0.1		$ 0.1		$ 0

Investments and Fair Value Me36

Investments and Fair Value Measurements (Classification of Securities) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Available-for-sale	$ 28.4	$ 17.3
Held-to-maturity	15.9	15.3
Trading securities	1.4	8.9
Total	$ 45.7	$ 41.5

Investments and Fair Value Me37

Investments and Fair Value Measurements (Gains (Losses) on Investments) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Available-for-sale:
Available-for-sale securities, Cost	$ 28.2		$ 28.2		$ 18.7
Available-for-sale Securities, Unrealized Gain	1.4		1.4		0.3
Available-for-sale Securities, Unrealized Loss	(1.2)		(1.2)		(1.7)
Available-for-sale securities, Fair Value	28.4		28.4		17.3
Held-to-maturity:
Held-to-maturity securities, Cost	15.9		15.9		15.3
Held-to-maturity Securities, Unrecognized Gain	0		0		0
Held-to-maturity Securities, Unrecognized Loss	0		0		0
Held-to-maturity	15.9		15.9		15.3
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract]
Available-for-sale securities, realized gains	0.5	$ 0.1	1.6	$ 1
Available-for-sale securities, realized losses	(0.2)	(0.1)	(1.1)	(0.6)
Available-for-sale securities, realized gains (losses), net	0.3	$ 0	0.5	$ 0.4
Equity Securities and Exchange-traded Funds [Member]
Available-for-sale:
Available-for-sale securities, Cost	26		26		17.4
Available-for-sale Securities, Unrealized Gain	1.3		1.3		0.3
Available-for-sale Securities, Unrealized Loss	(1.2)		(1.2)		(1.6)
Available-for-sale securities, Fair Value	26.1		26.1		16.1
Mutual Funds [Member]
Available-for-sale:
Available-for-sale securities, Cost	2.2		2.2		1.3
Available-for-sale Securities, Unrealized Gain	0.1		0.1		0
Available-for-sale Securities, Unrealized Loss	0		0		(0.1)
Available-for-sale securities, Fair Value	2.3		2.3		1.2
Certificates of Deposit [Member]
Held-to-maturity:
Held-to-maturity securities, Cost	14.1		14.1		15.3
Held-to-maturity Securities, Unrecognized Gain	0		0		0
Held-to-maturity Securities, Unrecognized Loss	0		0		0
Held-to-maturity	14.1		14.1
Convertible Debt Securities [Member]
Held-to-maturity:
Held-to-maturity securities, Cost	1.8		1.8		0
Held-to-maturity Securities, Unrecognized Gain	0		0		0
Held-to-maturity Securities, Unrecognized Loss	0		0		0
Held-to-maturity	$ 1.8		$ 1.8		$ 0

Investments and Fair Value Me38

Investments and Fair Value Measurements (Cost and Fair Value of Investments Classified by Maturity) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Debt Maturities [Abstract]
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Cost	$ 28.2	$ 18.7
Available-for-sale securities, Equity securities, exchange-traded funds, and mutual funds, Fair Value	28.4	17.3
Available-for-sale securities, Cost	28.2	18.7
Available-for-sale securities, Fair Value	28.4	17.3
Held-to-maturity Securities, Debt Maturities [Abstract]
Held-to-maturity securities, Due in one year or less, Cost	14.1	15.3
Held-to-maturity securities, Due within one year or less, Fair Value	14.1	15.3
Held-to-maturity securities, Due in one to three years, Cost	1.8	0
Held-to-maturity securities, Due in one to three years, Fair Value	1.8	0
Held-to-maturity securities, Cost	15.9	15.3
Held-to-maturity securities, Fair Value	$ 15.9	$ 15.3

Investments and Fair Value Me39

Investments and Fair Value Measurements (Unrealized Gains on Trading Securities) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Unrealized gains (losses), net	$ 0	$ (0.7)	$ 0.1	$ (1)

Investments and Fair Value Me40

Investments and Fair Value Measurements (Fair Value of Assets) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities, fair value	$ 1.4	$ 8.9
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities, fair value	1.4	8.9
Cash equivalents, fair value	0.2	0.2
Total investments, fair value	30	26.4
Fair Value, Measurements, Recurring [Member] | Equity Securities and Exchange-traded Funds [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	26.1	16.1
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	2.3	1.2
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	1.4	8.9
Cash equivalents, fair value	0.2	0.2
Total investments, fair value	30	26.4
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	26.1	16.1
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	2.3	1.2
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities, fair value	0	0
Cash equivalents, fair value	0	0
Total investments, fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities and Exchange-traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities, fair value	0	0
Cash equivalents, fair value	0	0
Total investments, fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities and Exchange-traded Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	$ 0	$ 0

Stock-Based Compensation (Alloc

Stock-Based Compensation (Allocation of Stock-Based Compensation Costs by Plan) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 2.8	$ 4.6	$ 10.6	$ 13.5
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	1.5	2.1	5.5	6.2
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	0.3	0.6	1.3	1.7
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 1	$ 1.9	$ 3.8	$ 5.6

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - Restricted Stock Units and Performance Share Awards [Member] $ in Millions	9 Months Ended
	Sep. 30, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 28.1
Expected amortization period (months)	31 months

Income Taxes (Income Tax Reconc

Income Taxes (Income Tax Reconciliation and Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income before income taxes and equity in net income of unconsolidated entities	$ 46.3	$ 47.6	$ 136.5	$ 142.2
Equity in net income of unconsolidated entities	0.4	0.5	0.7	1.5
Net income attributable to the noncontrolling interest	0	0	0	(0.2)
Total	46.7	48.1	137.2	143.5
Income tax expense	$ 16.5	$ 14.6	$ 46.5	$ 48.2
Effective income tax rate	35.30%	30.40%	33.90%	0.00%
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract]
Current liabilities	$ 7.1		$ 7.1		$ 4.2
Non-current liabilities	7.4		7.4		6
Total liability for unrecognized tax benefits	$ 14.5		$ 14.5		$ 10.2
Concentration Risk [Line Items]
Respective decrease in taxes (as a percent)	4.90%		0.30%
Geographic Concentration Risk [Member] | Cash, Cash Equivalents and Investments [Member] | Non-U.S. [Member]
Concentration Risk [Line Items]
Percentage of cash, cash equivalents and investments held by operations outside of US			80.00%

Income Taxes (Income Tax Contin

Income Taxes (Income Tax Contingency) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefits	$ 18.7	$ 14.5
Gross unrecognized tax benefits which would affect income tax expense	14.7	10.5
Decrease in income tax expense upon recognition of gross unrecognized tax benefits	$ 13.4	$ 9.4

Share Repurchase Program (Detai

Share Repurchase Program (Details)	Sep. 30, 2016USD ($)shares
Equity [Abstract]
Share repurchase program, authorized amount	$ 1,000,000,000
Shares repurchased, program life to date, shares | shares	9,880,917
Shares repurchased, program life to date, value	$ 662,300,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 337,700,000

Subsequent Events (Details)

Subsequent Events (Details) - PitchBook [Member] - USD ($) $ in Millions	Oct. 14, 2016	Sep. 30, 2016
Subsequent Event [Line Items]
Equity interest in acquiree, percentage		20.00%
Subsequent Event [Member]
Subsequent Event [Line Items]
Consideration	$ 180
Current value of acquiree	$ 225