Morningstar, Inc. — Director's Dealing 2011

Dec 27, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Morningstar, Inc. (MORN)
CIK: 0001289419
Period of Report: 2011-12-27

Reporting Person: Phillips Donald James II (Director, President, Fund Research)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-12-27	Common Stock	M	5000	$24.3137	Acquired	266692	Direct
2011-12-27	Common Stock	S	5000	$60.1053	Disposed	261692	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-12-27	Employee Stock Option (Right to Buy)	$24.3137	M	5000	Disposed	2015-05-02	Common Stock (5000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	70738	Indirect

Footnotes

F1: The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on March 11, 2011.

F2: The exercise price increases over the term of the option at a rate equal to the 10-year Treasury bond yield as of the date of grant ($18.50). On December 23, 2011, the exercise price was $24.3029.

F3: The transaction was executed in multiple trades at prices ranging from $60.00 to $60.40. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, Morningstar or a shareholder of Morningstar full information regarding the number of shares and prices at which the transaction was effected.

F4: The options became exercisable in 4 equal installments on May 2, 2006, 2007, 2008, and 2009.