2010 10-K: Part II Corporate unallocated increased $0.7 million in 2009 as certain  expenses recorded in 2009 more than offset the expense reductions  implemented in 2009. The increases included the $6.1 million of  operating expense related to adjusting the tax treatment of certain  stock options originally considered incentive stock options, as well  as an operating expense for the deposit penalty of $3.4 million. This  category also includes a $3.2 million expense to increase lease  vacancy reserves, primarily for the former Ibbotson headquarters. The following table presents the components of net non-operating  income: Equity in net income of unconsolidated entities includes our portion  of the net income (loss) of Morningstar Japan K.K. (MJKK) and  Morningstar Sweden AB. In the first six months of 2010, this category  also included our portion of the net income (loss) of Morningstar  Denmark. In 2009 and 2008, this category also included our portion  of the net income (loss) of Morningstar Denmark and Morningstar  Korea. Equity in net income of unconsolidated entities is primarily  from our position in MJKK. In 2010, we acquired an additional 75% ownership interest in  Morningstar Denmark, increasing our ownership percentage to 100%.  As a result, we no longer account for our investment in Morningstar  Denmark using the equity method. In July 2010, we began consoli- dating the assets, liabilities, and results of operations of Morningstar  Denmark in our Consolidated Financial Statements. In 2009, we acquired an additional 40% ownership interest in  Morningstar Korea, increasing our ownership percentage to 80%.  As a result, we no longer account for our investment in Morningstar  Korea using the equity method. In September 2009, we began con- solidating the assets, liabilities, and results of operations of  Morningstar Korea in our Consolidated Financial Statements. We describe our investments in unconsolidated entities in more  detail in Note 8 of the Notes to our Consolidated Financial Statements. Interest income, net mainly reflects interest from our investment  portfolio. Net interest income decreased $0.6 million in 2010 and  $2.7 million during 2009. The decrease in both years reflects lower  returns on our invested balances during the year. Other income, net primarily represents foreign currency exchange  gains and losses arising from the ordinary course of business related  to our U.S. and non-U.S. operations. It also includes royalty income  from MJKK and realized gains and losses from our investment port- folio. In 2010, we recorded a holding gain of approximately $4.6  million. This gain represents the difference between the estimated  fair value and the book value of our investment in Morningstar  Denmark at the date of acquisition. In 2009, we recorded a holding  gain of approximately $0.4 million when we increased our ownership  in Morningstar Korea. The following table summarizes our effective tax rate: For a reconciliation of the U.S. federal tax rate to our effective  income tax rate, refer to Note 15 of the Notes to our Consolidated  Financial Statements. Income Tax Expense Non-Operating Income Equity in Net Income of Unconsolidated Entities,  Non-Operating Income, and Income Tax Expense Equity in Net Income of Unconsolidated Entities 88 ($000)  2010 2009  2008 Income before income taxes $ 127,791 $127,607  $143,128 and equity in net income of unconsolidated entities Equity in net income of 1,422 1,165  1,321 unconsolidated entities Net (income) loss attributable (87) 132  (397) to noncontrolling interests  Total  $129,126 $128,904  $144,052 Income tax expense  $ 42,756 $ 46,775  $ 54,423 Effective tax rate  33.1% 36.3%  37.8% ($000)  2010 2009  2008 Equity in net income of $ 1,422 $ 1,165  $ 1,321 unconsolidated entities ($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