2010 10-K: Part II 17. Quarterly Dividend and Share Repurchase Programs 18. Subsequent Events 19. Recently Issued Accounting Pronouncements 136 In December 2010, the FASB issued ASU No. 2010-29,  Business  Combinations (Topic 805): Disclosure of Supplementary Pro Forma  Information for Business Combinations . ASU No. 2010-29 specifies  that if a public entity presents comparative financial statements,  the entity should disclose revenue and earnings of the combined  entity as though the business combination(s) that occurred during  the current year had occurred as of the beginning of the comparable  prior annual reporting period only. ASU No. 2010-29 also expands  the supplemental pro forma disclosures under Topic 805 to include  a description of the nature and amount of material, nonrecurring  pro forma adjustments directly attributable to the business combi- nation included in the reported pro forma revenue and earnings. For  Morningstar, ASU No. 2010-29 is effective prospectively for business  combinations occurring on or after January 1, 2011. In October 2009, the FASB issued ASU No. 2009-13,  Revenue  Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements .  ASU 2009-13 supersedes EITF Issue 00-21,  Revenue Arrangements  with Multiple Deliverables . ASU 2009-13 establishes the accounting  and reporting guidance for arrangements when a vendor performs  multiple revenue-generating activities, addresses how to separate  deliverables, and specifies how to measure and allocate arrange- ment consideration. Vendors often provide multiple products or  services to customers. Because products and services are often  provided at different points in time or over different time periods  within the same contractual arrangement, this guidance enables  vendors to account for products or services separately rather than  as a combined unit. For Morningstar, ASU 2009-13 is effective pro- spectively for revenue arrangements entered into or materially  modified beginning on January 1, 2011. Also in October 2009, the FASB issued ASU No. 2009-14,  Software  (Topic 985): Certain Revenue Arrangements That Include Software  Elements . This update affects vendors that sell or lease tangible  products in an arrangement that contains software that is more  In January 2011, we announced that Tao Huang, chief operating  officer, was leaving Morningstar. At that time, we entered into a  separation agreement that provides for payments of $3,764,000.  The majority of these separation payments will be expensed in the  first quarter of 2011. In February 2011, our board of directors declared a quarterly dividend  of 5 cents per share. The dividend is payable April 29, 2011 to share- holders of record as of April 15, 2011. In December 2010, the FASB issued ASU No. 2010-28,  Intangibles— Goodwill and Other (Topic 350): When to Perform Step 2 of the  Goodwill Impairment Test for Reporting Units with Zero or Negative  Carrying Amounts . ASU 2010-28 modifies Step 1 of the goodwill  impairment test for reporting units with zero or negative carrying  amounts. For these reporting units, an entity is required to perform  Step 2 of the goodwill impairment test if it is more likely than not  that a goodwill impairment exists. In making this determination, an  entity should consider whether there are any adverse qualitative  factors indicating that an impairment may exist. The qualitative  factors are consistent with the existing guidance. For Morningstar,  ASU No. 2010-28 is effective on January 1, 2011. In January 2010, the FASB issued ASU No. 2010-06,  Fair Value  Measurements and Disclosures (Topic 820) Improving Disclosures  about Fair Value Measurements . ASU No. 2010-06 requires entities  to disclose information in the Level 3 rollforward about purchases,  sales, issuances, and settlements on a gross basis. We adopted the  requirement to separately disclose purchases, sales, issuances, and  settlements in the Level 3 rollforward effective January 2011 and do  not anticipate any impact on our Consolidated Financial Statements. In addition, the board of directors approved a share repurchase  program that authorizes the repurchase of up to $100 million in  shares of our outstanding common stock. We may repurchase shares  from time to time at prevailing market prices on the open market  or in private transactions in amounts that we deem appropriate. As of December 31, 2010, we had repurchased 76,218 shares for $3,785,000. In September 2010, our board of directors approved a regular quar- terly dividend of 5 cents per share. The first quarterly dividend was  payable on January 14, 2011 to shareholders of record and to hold- ers of restricted stock units on December 31, 2010. As of December  31, 2010, we recorded a liability for dividends payable of $2,494,000. than incidental to the tangible product as a whole. ASU No. 2009- 14 does not affect software revenue arrangements that do not include  tangible products and also does not affect software revenue arrange- ments that include services if the software is essential to the func- tionality of those services. We adopted ASU No. 2009-14 effective  January 1, 2011and do not anticipate any impact on our Consolidated  Financial Statements.