The increasing concentration of data and development work  carried out at our offshore facilities may have a negative impact  on our business operations, products, and services. Failing to differentiate our products and continuously create  innovative, proprietary research tools may negatively impact  our competitive position and business results. Our operations outside of the United States are expanding and  involve additional challenges that we may not be able to meet. Failing to successfully integrate acquisitions could harm our business. As our non-U.S. revenue increases as a percentage of consolidated  revenue, fluctuations in foreign currencies present a greater poten- tial risk. We don’t engage in currency hedging or have any positions  in derivative instruments to hedge our currency risk. Our reported  revenue could suffer if certain foreign currencies decline relative  to the U.S. dollar, although the impact on operating income may be  offset by an opposing currency impact on locally based operating  expense. In addition, because we use the local currency of our sub- sidiaries as the functional currency, our financial results are affected  by the translation of foreign currencies into U.S. dollars. We’ve completed numerous acquisitions over the past three years,  including seven acquisitions in 2010. We cannot guarantee that we  will successfully integrate the employees, product lines, business  systems, marketing and branding, or other operations following any acquisition. We expect to continue making acquisitions and We attribute much of our company’s success over the past 25 years  to our ability to develop innovative, proprietary research tools. We  cannot guarantee that we will continue to successfully develop new  product features and tools that differentiate our product offerings  from those of our competitors. If tools similar to Morningstar’s pro- prietary tools become more broadly available through other channels,  our competitive position and business results may suffer. Our operations outside of the United States have expanded to $157.1  million in revenue in 2010 from $129.2 million in 2009. Several of  our recent acquisitions have added to our business operations in  Europe, Australia, and other areas outside the United States, and  we recently established a business presence in Latin America. There  are risks inherent in doing business outside the United States, includ- ing challenges in reaching new markets because of established  competitors and limited brand recognition; difficulties in staffing,  managing, and integrating non-U.S. operations; difficulties in coor- dinating and sharing information globally; differences in laws and  policies from country to country; exposure to varying legal standards,  including intellectual property protection laws; potential tax expo- sure related to transfer pricing and other issues; heightened risk of  fraud and noncompliance; and currency exchange rates and exchange  controls. These risks could hamper our ability to expand around the  world, which may hurt our financial performance and ability to grow. We have approximately 270 employees who work at our data collection facilities in Mumbai and New Delhi, India, which may  also be subject to political and regulatory risk. Like the Shenzhen  operation, these facilities also involve operational risks for our net- work infrastructure. We now have approximately 820 employees working in our data  and technology development center in Shenzhen, China, or about  one-fourth of our total workforce. Over the past several years, we  have moved a significant percentage of our data collection and  development operations to this location. Because China has a restric- tive government under centralized control, we cannot predict the  level of political and regulatory risk that may affect our operations.  The concentration of development and data work carried out at this  facility also involves operational risks for our network infrastructure.  Any difficulties that we face in successfully maintaining our development center in China may harm our business and have a  negative impact on the products and services we provide, particularly  because of our increasing reliance on this facility. establishing investments and joint ventures as part of our long-term business strategy. Acquisitions, investments, and joint ventures  involve a number of risks. They can be time-consuming and may divert  management’s attention from day-to-day operations, particularly if  numerous acquisitions are in process at the same time. Financing  an acquisition could result in dilution to our shareholders from the  issuance of equity securities, reduce our financial flexibility because  of reductions in our cash balance, or result in a weaker balance  sheet from incurring debt. Acquisitions might also result in losing key employees. We may fail  to successfully complete an acquisition, investment, or joint venture.  We may also fail to generate enough revenue or profits from an  acquisition to earn a return on the associated purchase price. Morningstar, Inc. 2010 Annual Report 49