content_image/219736.jpg content_image/219737.jpg content_image/219738.jpg
The allocation includes $9,266,000 of acquired intangible assets, as follows: 

<img src='content_image/219736.jpg'>

Goodwill of $12,422,000 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 strategic benefit of adding to our existing fund research team in London and continuing to build our thought leadership in investment research. OBSR will also help us expand our investment consulting presence in the United Kingdom, where we already provide asset allocation, manager selection, and portfolio construction services to institutions and intermediaries. 

The deferred tax liability of $2,317,000 is primarily because the amortization expense related to intangible assets is not deductible for income tax purposes. 

## Realpoint, LLC 

In May 2010, we acquired Realpoint, LLC (Realpoint), a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured finance. Realpoint offers securities ratings, research, surveillance services, and data to help institutional investors iden- tify credit risk in commercial mortgage-backed securities. Institutional investment firms subscribe to Realpoint’s ratings and analytics, including money managers who invest in commercial mortgage- backed securities. We began including the financial results of this acquisition in our Consolidated Financial Statements on May 3, 2010. 

In conjunction with this acquisition, we paid $38,327,000 in cash, net of cash acquired, and issued 199,174 shares of restricted stock to the selling employee-shareholders. Because of the terms of the restricted share agreements and in accordance with FASB ASC 805, Business Combinations , we account for these grants as stock-based compensation expense and not as part of the acquisition consider- ation. See Note 11for additional information concerning the account- ing for this restricted stock. 

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 acquisition: 

<img src='content_image/219737.jpg'>

The allocation includes $20,920,000 of acquired intangible assets, as follows: 

<img src='content_image/219738.jpg'>

Goodwill of $23,103,000 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 oppor- tunity for Morningstar to enter the structured finance ratings and analysis business. 

The value assigned to goodwill, intangible assets, and restricted stock at the date of grant are deductible for income tax purposes over a period of approximately 15 years from the acquisition date. 

## Increased Ownership Interest in Morningstar Danmark A/S 

In July 2010, we acquired an additional 75% interest in Morningstar Danmark A/S (Morningstar Denmark), increasing our ownership to 100% from 25%. Morningstar Denmark’s main offering is the invest- ment information website for individual investors, Morningstar.dk, which provides fund and ETF data, portfolio tools, and market analysis. We began consolidating the financial results of this acqui- sition in our Consolidated Financial Statements on July 1, 2010. 

