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## Morningstar, Inc. and Subsidiaries 

## Notes to Consolidated Financial Statements 

## 1. Description of Business 

Morningstar, Inc. and its subsidiaries (Morningstar, we, our), is a provider of independent investment research to investors around the world. We offer an extensive line of data, software, and research products for individual investors, financial advisors, and institutional clients. We also offer asset management services for advisors, institutions, and retirement plan participants. We have operations in 26 countries. 

## 2. Restatement 

In 2010, we determined that the cumulative effect of adjustments related to prior periods were material, in aggregate, if recorded in our 2010 financial statements. These amounts related primarily to our accounting for deferred taxes and, to a lesser extent, to expense adjustments associated with vacant office space and rent for one of our office leases. We evaluated the effects of these errors on our prior periods’ Consolidated Financial Statements, individually and in the aggregate, in accordance with the materiality guidance pro- vided by the SEC staff, as included in SAB Topics 1M and 1N, and concluded that no prior period is materially misstated. However, in accordance with the provisions of these SAB Topics, we are restat- ing our Consolidated Financial Statements, as of and for the years ended December 31, 2009 and 2008, as follows: 

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