2010 10-K: Part II Intangible Assets.  We amortize intangible assets using the straight- line method over their estimated economic useful lives, which range  from one to 25 years. In accordance with FASB ASC 360-10-35,  Subsequent Measurement—Impairment or Disposal of Long Lived  Assets , we review intangible assets for impairment whenever events  or changes in circumstances indicate that the carrying value may  not be recoverable. If the value of future undiscounted cash flows  is less than the carrying amount of an asset, we record an impair- ment loss based on the excess of the carrying amount over the fair  value of the asset. We did not record any impairment losses in 2010,  2009, or 2008. We recognize revenue from subscription sales in equal installments  over the term of the subscription. We recognize revenue from  Investment Consulting, Retirement Advice, Internet advertising, and  other non-subscription products and services when the product or  service is delivered or, when applicable, over the service obligation  period defined by the terms of the contract. Revenue from Internet  advertising is generated primarily from “impression-based” contracts.  For advertisers who use our cost-per-impression pricing, we charge  fees each time their ads are displayed on our site. We recognize  asset-based fees once the fees are fixed and determinable assum- ing all other revenue recognition criteria are met. For contracts that  combine multiple products and services, we assign the fair value  of each element in the arrangement based on selling prices of the  items when sold separately. Delivery of our products and services  is a prerequisite for recognition of revenue. If arrangements include  an acceptance provision, we generally begin recognizing revenue  upon the receipt of customer acceptance. Revenue Recognition.  We earn revenue by selling a variety of  investment-related products and services. We sell many of our offer- ings, such as our newsletters, Principia software, and Premium  service on Morningstar.com, via subscriptions. These subscriptions  are mainly offered for a one-year term, although we also offer terms  ranging from one month to three years. We also sell advertising on  our websites throughout the world. Several of our other products  are sold through license agreements, including Morningstar Advisor  Workstation, Morningstar Equity Research, Morningstar Direct,  Retirement Advice, and Licensed Data. Our license agreements  typically range from one to three years. We record taxes imposed on revenue-producing transactions (such  as sales, use, value-added, and some excise taxes) on a net basis;  therefore, such taxes are excluded from revenue in our Consolidated  Statements of Income. For some of our other institutional services, mainly Investment  Consulting, we generally base our fees on the scope of work and  the level of service we provide and earn fees as a percentage of  assets under management. We also earn fees relating to Morningstar  Managed Portfolios as a percentage of assets under management.  A portion of the fees for managed retirement accounts offered  through Morningstar Retirement Manager and Advice by Ibbotson  are earned as a percentage of assets under management. Advertising Costs.  Advertising costs include expenses incurred for  various print and Internet ads, search engine fees, and direct mail  campaigns. We expense advertising costs as incurred. The table  below summarizes our advertising expense for the past three years: Deferred revenue represents the portion of subscriptions billed or  collected in advance of the service being provided, which we expect  to recognize to revenue in future periods. Certain arrangements  may have cancellation or refund provisions. If we make a refund, it  typically reflects the amount collected from a customer for which  services have not yet been provided. The refund therefore results  in a reduction of deferred revenue. We follow the standards established in FASB ASC 605,  Revenue  Recognition , including subtopic 25,  Multiple-Element Arrangements ,  and FASB ASC 985-605,  Software—Revenue Recognition . We estimate expected forfeitures of all employee stock-based  awards and recognize compensation cost only for those awards  expected to vest. We determine forfeiture rates based on historical  experience and adjust the estimated forfeitures to actual forfeiture  experience as needed. Stock-Based Compensation Expense.  We account for our stock-based  compensation expense in accordance with FASB ASC 718,  Compensation—Stock Compensation . Our stock-based compensa- tion expense is mainly related to grants of restricted stock units  and restricted stock. We measure the fair value of our restricted  stock units and restricted stock on the date of grant based on the  closing market price of Morningstar’s common stock on the day prior  to grant. We amortize that value to stock-based compensation  expense, net of estimated forfeitures, ratably over the vesting period. 110 ($000)  2010 2009  2008 Advertising expense  $ 8,572 $7,361  $ 10,549