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## Business Segments, Products, and Services 

We operate our business in two segments: 

U  Investment Information, which includes all of our data, software, and research products and services. These products are typically sold through subscriptions or license agreements; and 

U  Investment Management, which includes all of our asset manage- ment operations, which operate as registered investment advisors and earn more than half of their revenue from asset-based fees. 

The table below shows our revenue by business segment for each of the past three years. 

For information on segment operating income (loss) and total assets, refer to Note 5 of the Notes to our Consolidated Financial Statements. 

## Investment Information 

The largest products in this segment based on revenue are Licensed Data, a set of investment data spanning all of our investment data- bases, including real-time pricing data, and available through elec- tronic data feeds; Morningstar Advisor Workstation, a web-based investment planning system for independent financial advisors as well as advisors affiliated with larger firms; Morningstar.com, which includes both Premium Memberships and Internet advertising sales; Morningstar Direct, a web-based institutional research platform; and Morningstar Site Builder and Licensed Tools, services that help institutional clients build customized websites or enhance their existing sites with Morningstar’s online tools and components. 

The Investment Information segment also includes Logical Information Machines, Inc. (LIM), an analytical software service we acquired at the end of 2009 that aggregates financial and energy data from a large number of sources. LIM delivers a comprehensive, real-time solution for research, analysis, and trading for institutional clients and lets clients query these multiple data sets simultaneously. The majority of LIM’s clients are in the energy and commodities industries. 

Other major products within the Investment Information segment include equity and credit research, fund research, Realpoint’s research on commercial mortgage-backed securities, and our Enterprise Data Management business, which helps institutions outsource certain business operations to Morningstar, including creating investment profiles, aggregating account data, performance reporting, and consolidating and managing data feeds from multiple sources. 

We also offer a variety of financial communications materials, real- time data and desktop software, investment software for financial advisors and institutions, and investment indexes, as well as several print and online publications. 

In 2010, 31.8% of Investment Information segment revenue was from outside of the United States. 

Most of our products for individual investors target investors who are actively involved in the investing process and want to take charge of their own investment decisions. We also reach individuals who want to learn more about investing and investors who seek out third-party sources to validate the advice they receive from brokers or financial planners. 

We sell our advisor-related products both directly to independent financial advisors and through enterprise licenses, which allow financial advisors associated with the licensing enterprise to use our products. Our institutional clients include banks, brokerage firms, insurance companies, mutual fund companies, media outlets, and retirement plan sponsors and providers. We also have data resell- ing agreements with third-party providers of investment tools and applications, allowing us to increase the distribution of our data with minimal additional cost. 

We believe the Investment Information segment has a modest amount of seasonality. We’ve historically had higher revenue in the second quarter because we hold an investment conference then. Other products in this segment generally have not shown marked seasonality. 

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