In 2009, cash provided by financing activities was $25.3 million. Proceeds from stock-option exercises totaled $16.4 million and excess tax benefits related to stock-option exercises and vesting of restricted stock units totaled $8.7 million. In 2009, cash provided by financing activities decreased by $25.4 million, or 50.1%, com- pared with 2008, driven mostly by a $17.9 million decline in excess tax benefits, and to a lesser extent by a $7.0 million decline in proceeds from stock-option exercises. The decrease mainly reflects a lower average stock price at the time the stock options were exercised and a decrease in the number of options exercised. 

Employees exercised approximately 0.8 million, 1.4 million, and 2.4 million stock options in 2010, 2009, and 2008, respectively. The total intrinsic value of options exercised during 2010, 2009, and 2008 was $31.4 million, $37.4 million, and $113.6 million, respectively. 

## Acquisitions 

We invested a total of $281.9 million, less cash acquired, related to acquisitions over the past three years. We describe these acqui- sitions, including purchase price and product offerings, in Note 7 of the Notes to our Consolidated Financial Statements. 

## Subsequent Events 

See Note 18 in the Notes to our Consolidated Financial Statements for information on events subsequent to December 31, 2010. 

## Application of Critical Accounting Policies and Estimates 

Our discussion and analysis of our financial condition and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with GAAP. We discuss our significant accounting policies in Note 3 of the Notes to our Consolidated Financial Statements. The preparation of financial statements in accordance with GAAP requires our management team to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expense, and related dis- closures included in our Consolidated Financial Statements. 

We evaluate our estimates on an ongoing basis. We base our esti- mates on historical experience and various other assumptions that we believe are reasonable. Based on these assumptions and esti- mates, we make judgments about the carrying values of assets and 

liabilities that are not readily apparent from other sources. Our actual results could vary from these estimates and assumptions. If actual amounts are different from previous estimates, we include revisions in our results of operations for the period in which the actual amounts become known. 

We believe the following critical accounting policies reflect the significant judgments and estimates used in the preparation of our Consolidated Financial Statements: 

## Revenue Recognition 

Much of our revenue comes from the sale of subscriptions or licenses for print publications, software, and Internet-based products and services. We recognize this revenue in equal amounts over the term of the subscription or license, which generally ranges from one to three years. We also provide analysis, consulting, retirement advice, and other services. We recognize this revenue when the service is provided or during the service obligation period defined in the contract. 

We make significant judgments related to revenue recognition, including whether fees are fixed or determinable and whether the collection of payment is probable. For contracts that combine mul- tiple products and services, we make judgments regarding the value of each element in the arrangement based on selling prices of the items when sold separately. Delivery of our products and services is a prerequisite to the recognition of revenue. If arrangements include an acceptance provision, we begin recognizing revenue upon the receipt of customer acceptance. 

We make judgments at the beginning of an arrangement regarding whether or not collection is probable. Probability of collection is assessed on a case-by-case basis. We typically sell to institutional customers with whom we have a history of successful collections. 

Deferred revenue is the amount invoiced or collected in advance for subscriptions, licenses, or services that has not yet been recog- nized as revenue. As of December 31, 2010, our deferred revenue was $146.3 million. We expect to recognize this deferred revenue in future periods as we fulfill our service obligations. The amount of deferred revenue may increase or decrease primarily based on the mix of contracted products and services and the volume of new and renewal subscriptions. The timing of future revenue recognition may change depending on the terms of the license agreements and the timing of fulfilling our service obligations. We believe that the estimate related to revenue recognition is a critical accounting estimate, and to the extent that there are material differences between our determination of deferred revenue and actual results, our financial condition or results of operations may be affected. 

