13. Defined Contribution Plan 14. Non-Operating Income Excess Tax Benefits Related to Stock-Based Compensation 12. Related Party Transactions The following table summarizes the total intrinsic value (difference  between the market value of our stock on the date of exercise and  the exercise price of the option) of options exercised: All outstanding options were vested and exercisable as of January  1, 2010. The table below shows additional information for options  outstanding and exercisable as December 31, 2010: The aggregate intrinsic value in the tables above represents the  total pretax intrinsic value all option holders would have received  if they had exercised all outstanding options on December 31, 2010.  The intrinsic value is based on our closing stock price of $53.08 on  that date. FASB ASC 718,  Compensation—Stock Compensation , requires that  we classify the cash flows that result from excess tax benefits as  financing cash flows. Excess tax benefits correspond to the portion  of the tax deduction taken on our income tax return which exceeds  the amount of tax benefit related to the compensation cost recog- nized in our Consolidated Statements of Income. The following table  summarizes our excess tax benefits for the past three years: In 2009, we determined that certain incentive stock options (ISOs)  granted to one former and two current executives, including Tao  Huang, our chief operating officer, should have been treated as  non-qualified stock options for the executives’ and our income tax  purposes. In the fourth quarter of 2009, we recorded an operating  expense of $4,887,000 related to adjusting the tax treatment of  Other income (expense), net primarily represents foreign currency  exchange gains and losses arising from the ordinary course of busi- ness related to non-U.S. operations. It also includes realized gains  and losses from our investment portfolio and royalty income from  MJKK. In 2010, this category also includes the holding gain of  $4,564,000 resulting from the difference between the estimated  fair value and the book value of our investment in Morningstar  Denmark; in 2009, it includes the holding gain of $352,000 resulting  from the difference between the estimated fair value and the book  value of our investment in Morningstar Korea. See Notes 7 and 8  for additional information concerning Morningstar Denmark and  Morningstar Korea. The larger expense in 2008 was influenced  primarily by foreign currency exchange losses in the fourth quarter  driven by a significantly stronger U.S. dollar. Interest income primarily reflects interest from our investment portfolio. We sponsor a defined contribution 401(k) plan, which allows our  U.S.-based employees to voluntarily contribute pre-tax dollars up  to a maximum amount allowable by the U.S. Internal Revenue Service.  In 2010, we made matching contributions to our 401(k) plan in the  United States in an amount equal to 50 cents for every dollar of an  employee’s contribution, up to a maximum of 7% of the employee’s  compensation in the pay period. The match paid in 2010 represents  approximately half of the benefit in 2008, after having suspended  the matching contributions in 2009. The following table summarizes our matching contributions: these stock options that were originally considered ISOs. In the first  quarter of 2010, we paid these individuals $4,887,000 to compensate  for the difference in tax treatment. ($000)  2010 2009  2008 Intrinsic value of options exercised  $ 31,410 $ 37,356  $113,645 Options Outstanding and Exercisable Weighted  Average  Weighted  Aggregate  Remaining  Average  Intrinsic  Number of  Contractual  Exercise  Value  Range of Exercise Prices  Options  Life (years)  Price  ($000) $8.57 - $14.70  725,394  1.39  $ 11.15  $ 30,414 $18.94 - $42.94  1,131,031  3.84   21.95  35,212 $8.57 - $42.94  1,856,425  2.88   17.73  $ 65,626 ($000)  2010  2009  2008 401(k) matching contributions  $3,321 $ —  $6,584 ($000)  2010 2009  2008 Interest income, net  $ 2,437 $ 3,016  $ 5,687 Other income (expense), net  4,295 (82)   (1,435) Non-operating income, net $ 6,732 $ 2,934  $ 4,252 ($000)  2010 2009  2008 Excess tax benefits related to  $ 7,507 $ 8,693  $26,638 stock-based compensation The following table presents the components of our net non-oper- ating income: Morningstar, Inc. 2010 Annual Report 131