Depreciation and Amortization Expense Depreciation expense rose $1.8 million in 2010 and $3.7 million in  2009. The increase in 2010 reflects incremental expense from acquisitions and accelerated depreciation expense related to our  existing office space in China, in advance of moving into new office  space. The increase in 2009 was primarily from higher depreciation  expense associated with our new corporate headquarters in Chicago.  Amortization expense increased $5.9 million in 2010 and $2.3 million in 2009, reflecting amortization of intangible assets related  to acquisitions. As a percentage of revenue, depreciation and amortization expense  increased 0.4 percentage points in 2010. We expect that amortization of intangible assets will be an ongoing  cost for the remaining life of the assets. Based on acquisitions  completed through December 31, 2010, we estimate that aggregate  amortization expense for intangible assets will be $25.7 million in  2011. Our estimates of future amortization expense for intangible  assets may be affected by changes to the preliminary purchase  price allocations associated with our 2010 acquisitions. Stock-based compensation expense mainly relates to grants of  restricted stock units (RSUs) and, beginning in 2010, includes expense  related to restricted stock. Based on grants made through December 31, 2010, we anticipate that  total stock-based compensation expense will be $13.5 million in  2011. This amount is subject to change based on additional equity  grants or changes in our estimated forfeiture rate related to these grants. Restricted Stock:  Beginning in 2010, we began recording expense  related to restricted stock issued with the acquisition of Realpoint.  In May 2010, we issued 199,174 shares that will vest over five years  from the date of grant. This grant resulted in an expense of approx- imately $1.2 million in 2010. We amortize this value to stock-based  compensation expense ratably over the vesting period. We have  assumed that all of the restricted stock will ultimately vest, and  therefore haven’t incorporated a forfeiture rate in this portion of  our stock-based compensation expense. Stock options:  Stock-based compensation expense related to stock  options has declined over the past three years, as stock options  granted in previous years were fully vested as of January 1, 2010. Stock-based compensation expense is included in each of our oper- ating expense categories, as shown below: Restricted Stock Units:  Our stock-based compensation expense  related to RSUs has increased over the past three years, reflecting  annual grants. We began granting RSUs in May 2006 and have  made additional grants each year since then. We recognize the  expense related to RSUs over the vesting period, which is generally  four years. We estimate forfeitures for these awards and typically  adjust the estimated forfeitures to actual forfeiture experience in  the second quarter, which is when most of our larger equity grants  typically vest. We have not recorded any significant changes to  stock-based compensation related to these adjustments. ($000)  2010 2009  2008 Depreciation expense  $ 14,814 $ 12,998  $ 9,348 Amortization expense  24,850  18,963   16,648 Total depreciation and $ 39,664 $ 31,961  $ 25,996 amortization expense % change  24.1%  22.9%   22.3% % of revenue  7.1% 6.7%  5.2% Change  0.4pp 1.5pp  0.3pp ($000)  2010 2009  2008 Cost of goods sold $ 3,473 $ 2,666  $ 2,058 Development  1,840 1,570  1,402 Sales and marketing  1,786 1,587  1,449 General and administrative 6,694 5,770  6,372 Stock-based compensation expense  $ 13,793 $ 11,593  $ 11,281 % change  19.0% 2.8%  2.8% % of revenue  2.5% 2.4%  2.2% Change  0.1pp 0.2pp   (0.3)pp ($000)  2010 2009  2008 Restricted stock units  $ 12,545 $ 10,591  $ 7,571 Restricted stock  1,248 —  — Stock options  — 1,002  3,710 Total stock-based compensation expense  $ 13,793 $11,593  $11,281 Stock-Based Compensation Expense Morningstar, Inc. 2010 Annual Report 77