content_image/205728.jpg content_image/205729.jpg content_image/205732.jpg content_image/205730.jpg content_image/205731.jpg
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: 

<img src='content_image/205728.jpg'>

All outstanding options were vested and exercisable as of January 1, 2010. The table below shows additional information for options outstanding and exercisable as December 31, 2010: 

<img src='content_image/205729.jpg'>

The aggregate intrinsic value in the tables above represents the total pretax intrinsic value all option holders would have received if they had exercised all outstanding options on December 31, 2010. The intrinsic value is based on our closing stock price of $53.08 on that date. 

## Excess Tax Benefits Related to Stock-Based Compensation 

FASB ASC 718, Compensation—Stock Compensation , requires that we classify the cash flows that result from excess tax benefits as financing cash flows. Excess tax benefits correspond to the portion of the tax deduction taken on our income tax return which exceeds the amount of tax benefit related to the compensation cost recog- nized in our Consolidated Statements of Income. The following table summarizes our excess tax benefits for the past three years: 

<img src='content_image/205732.jpg'>

## 12. Related Party Transactions 

In 2009, we determined that certain incentive stock options (ISOs) granted to one former and two current executives, including Tao Huang, our chief operating officer, should have been treated as non-qualified stock options for the executives’ and our income tax purposes. In the fourth quarter of 2009, we recorded an operating expense of $4,887,000 related to adjusting the tax treatment of 

these stock options that were originally considered ISOs. In the first quarter of 2010, we paid these individuals $4,887,000 to compensate for the difference in tax treatment. 

## 13. 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 2010, we made matching contributions to our 401(k) plan in the United States in an amount equal to 50 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 match paid in 2010 represents approximately half of the benefit in 2008, after having suspended the matching contributions in 2009. 

The following table summarizes our matching contributions: 

<img src='content_image/205730.jpg'>

## 14. Non-Operating Income 

The following table presents the components of our net non-oper- ating income: 

<img src='content_image/205731.jpg'>

Interest income primarily reflects interest from our investment portfolio. 

Other income (expense), net primarily represents foreign currency exchange gains and losses arising from the ordinary course of busi- ness related to non-U.S. operations. It also includes realized gains and losses from our investment portfolio and royalty income from MJKK. In 2010, this category also includes the holding gain of $4,564,000 resulting from the difference between the estimated fair value and the book value of our investment in Morningstar Denmark; in 2009, it includes the holding gain of $352,000 resulting from the difference between the estimated fair value and the book value of our investment in Morningstar Korea. See Notes 7 and 8 for additional information concerning Morningstar Denmark and Morningstar Korea. The larger expense in 2008 was influenced primarily by foreign currency exchange losses in the fourth quarter driven by a significantly stronger U.S. dollar. 

