2010 10-K: Part II Sales and marketing costs decreased $8.3 million in 2009. Most of  the decline reflects lower spending on advertising and marketing  (primarily direct mail expense) and lower travel costs, which we  pared back because of the challenging business environment. As  mentioned above, we discontinued three of the publications we  previously published in the first quarter of each year, and therefore  didn’t incur costs to promote these publications in 2009. We do not disclose a fee range for our Investment Consulting and  Retirement Advice businesses because our fee structures are cus- tomized by client. In addition, we believe disclosing a fee range  would be detrimental to our competitive position. We disclose  changes in the nature of the underlying services we provide or their  associated fee structures (for example, a change from flat fees to  asset-based fees) in our periodic filings to the extent that they are  material to our financial results. The Investment Management segment includes all of our asset  management operations, which operate as registered investment  advisors and earn more than half of their revenue from asset-  based fees. For Morningstar Managed Portfolios, we charge asset-based fees,  which are based on a tiered schedule that depends on the client’s  average daily account balance. Fees for our mutual fund and ETF  portfolios generally range from 30 to 40 basis points. We charge  55 basis points for our customized stock portfolios. The key products and services in this segment based on revenue  are Investment Consulting, which focuses on investment monitoring  and asset allocation for funds of funds, including mutual funds and  variable annuities; Retirement Advice, including the Morningstar  Retirement Manager and Advice by Ibbotson platforms; and  Morningstar Managed Portfolios, a fee-based discretionary asset  management service that includes a series of mutual fund, exchange- traded fund, and stock portfolios tailored to meet a range of investment  time horizons, risk levels, and investment strategies that financial  advisors can use for their clients’ taxable and tax-deferred accounts. This segment represented approximately 20% of our consolidated  revenue in 2010, 2009, and 2008, respectively. In the majority of our contracts that include variable asset-based  fees, we bill clients quarterly in arrears based on average assets  for the quarter. The method of calculation varies by client; some  contracts include provisions for calculating average assets based on  daily data, while others use weekly or monthly data. Other contracts  may include provisions for monthly billing or billing based on assets  as of the last day of the billing period rather than on average assets. Our Investment Consulting business has multiple fee structures,  which vary by client. In general, we seek to receive asset-based  fees for any work we perform that involves investment management  or acting as a subadvisor to investment portfolios. For any individual  contract, we may receive flat fees, variable asset-based fees, or a  combination of the two. Some of our contracts include minimum  fee levels that provide us with a flat payment up to a specified asset  level, above which we also receive variable asset-based fees. In our Retirement Advice business, our contracts may include fixed  fees for advice and guidance, one-time setup fees, technology licens- ing fees, asset-based fees for managed retirement accounts, or a  combination of these fee structures. Investment Management segment revenue increased $18.0 million,  or 19.5%, in 2010. Acquisitions contributed $7.5 million of revenue in  2010, primarily from the Intech and OBSR acquisitions. Excluding  acquisitions, revenue increased across all product categories in 2010. Revenue Investment Management Segment ($000) Investment Management Segment 84 Revenue Operating income $107,735 $55,395 $111,764 $60,396 $92,354 $52,889 $110,394 $56,816 2007  2008  2009 2010 Revenue % change  49.4%  3.7%  (17.4%)  19.5% Operating income % change  72.2%  9.0%  (12.4%)  7.4% Operating margin %  51.4%  54.0%  57.3%  51.5% Change  6.8pp  2.6pp  3.3pp  (5.8)pp