0001013237-20-000015 | 10-Q | XBRL Viewer | Factset Research Systems INC

Income Taxes (Tables)

3 Months Ended

Nov. 30, 2019

The provision for income taxes is as follows:


	Three Months Ended November 30,
(in thousands)	2019			2018
Income before income taxes	$	108,741		$	95,943
Provision for income taxes	$	14,784		$	11,647
Effective tax rate	13.6		%	12.1		%

Consolidated Statements of Income - Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Revenue	$ 366,658	$ 351,640
Operating expenses
Cost of services	164,957	166,776
Selling, general and administrative	88,515	84,325
Total operating expenses	253,472	251,101
Operating income	113,186	100,539
Other expenses
Interest expense, net	(3,131)	(4,459)
Other expense, net	(1,314)	(137)
Income before income taxes	108,741	95,943
Provision for income taxes	14,784	11,647
Net income	$ 93,957	$ 84,296
Basic earnings per common share (in USD per share)	$ 2.47	$ 2.21
Diluted earnings per common share (in USD per share)	$ 2.43	$ 2.17
Basic weighted average common shares (in shares)	37,978	38,106
Diluted weighted average common shares (in shares)	38,587	38,809

Consolidated Balance Sheets - Unaudited (Parentheticals) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, net of reserve	$ 8,901	$ 10,511
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	40,239,308	40,104,192
Common stock, shares outstanding (in shares)	37,904,178	38,117,840
Treasury stock (in shares)	2,335,130	1,986,352

Goodwill - Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Thousands	3 Months Ended
	Nov. 30, 2019 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 685,729
Foreign currency translations	5,592
Ending Balance	691,321
Americas
Goodwill [Roll Forward]
Beginning Balance	386,195
Foreign currency translations	0
Ending Balance	386,195
Europe
Goodwill [Roll Forward]
Beginning Balance	296,459
Foreign currency translations	5,686
Ending Balance	302,145
Asia Pacific
Goodwill [Roll Forward]
Beginning Balance	3,075
Foreign currency translations	(94)
Ending Balance	$ 2,981

Organization and Nature of Business	3 Months Ended
Organization and Nature of Business	Nov. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Business	ORGANIZATION AND NATURE OF BUSINESS FactSet Research Systems Inc. (the "Company" or "FactSet") is a global provider of integrated financial information, analytical applications and industry-leading services for the investment and corporate communities. For over 40 years, global financial professionals have utilized the Company's content and multi-asset class solutions across each stage of the investment process. FactSet's goal is to provide a seamless user experience spanning idea generation, research, portfolio construction, trade execution, performance measurement, risk management, reporting, and portfolio analysis, in which the Company serves the front, middle, and back offices to drive productivity and improved performance. FactSet's flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in the organization. FactSet is focused on growing the business throughout each of its three segments, the Americas, Europe, and Asia Pacific. The Company primarily delivers insight and information through the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions ("CTS") and Wealth. FactSet currently serves financial professionals, which include portfolio managers, investment research professionals, investment bankers, risk and performance analysts, wealth advisors and corporate clients. FactSet provides both insights on global market trends and intelligence on companies and industries, as well as capabilities to monitor portfolio risk and performance and to execute trades. The Company combines dedicated client service with open and flexible technology offerings, such as a configurable desktop and mobile platform, comprehensive data feeds, an open marketplace and digital portals and application programming interfaces ("APIs"). The Company’s revenue is primarily derived from subscriptions to products and services such as workstations, analytics, enterprise data, and research management.

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Nov. 30, 2019	Aug. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Purchase commitment, remaining minimum amount committed		$ 69.9
Letters of credit outstanding	$ 2.9
Largest individual client percent of total subscriptions (in percentage)	3.00%
Percentage of subscription from ten largest clients (in percentage)	15.00%
Receivable reserve	$ 8.9	$ 10.5

Segment Information (Details Textual)	3 Months Ended
Segment Information (Details Textual)	Nov. 30, 2019 numberOfSegments
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Information

3 Months Ended

Nov. 30, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that have the following characteristics: (i) it engages in business activities from which they may earn revenue and incur expense, (ii) its operating results are regularly reviewed by the company's chief operating decision maker ("CODM") for resource allocation decisions and performance assessment, and (iii) its discrete financial information is available. The Company's Chief Executive Officer functions as the CODM.

The Company’s operating segments are aligned with how the Company, including its CODM, manages the business and the demographic markets in which it serves, with a primary focus on providing integrated global financial and economic information. The Company’s internal financial reporting structure is based on three segments: the Americas, Europe and Asia Pacific. The primary workflow solutions within the Americas, Europe and Asia Pacific segments are Research, Analytics and Trading, Content and Technology Solutions and Wealth. These workflow solutions provide global financial and economic information to investment managers, investment banks and other financial services professionals.

The Americas segment serves investment professionals including financial institutions throughout the Americas. The Europe and Asia Pacific segments serve investment professionals located throughout Europe and Asia Pacific, respectively. Segment revenue reflects direct sales to clients based in their respective geographic locations. Each segment records compensation expense (including stock-based compensation), amortization of intangible assets, depreciation of furniture and fixtures, amortization of leasehold improvements, communication costs, professional fees, rent expense, travel, office and other direct expenses.

Expenditures associated with the Company’s data centers, third-party data costs and corporate headquarters charges are recorded by the Americas segment and are not allocated to the other segments. The content collection centers, located in India, the Philippines, and Latvia, benefit all the Company’s operating segments, and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenue.

The following tables reflect the results of operations of the Company's segments:


(in thousands)
For the three months ended November 30, 2019	Americas		Europe		Asia Pacific		Total
Revenue from clients	$	231,330	$	100,830	$	34,498	$	366,658
Segment operating income	$	49,623	$	41,218	$	22,345	$	113,186
Total assets	$	954,636	$	645,293	$	162,303	$	1,762,232
Capital expenditures	$	24,024	$	1,168	$	1,588	$	26,780


For the three months ended November 30, 2018	Americas		Europe		Asia Pacific		Total
Revenue from clients	$	222,203	$	97,765	$	31,672	$	351,640
Segment operating income	$	43,841	$	39,089	$	17,609	$	100,539
Total assets	$	719,961	$	536,042	$	109,924	$	1,365,927
Capital expenditures	$	4,105	$	1,263	$	4,158	$	9,526

Leases - Schedule of Future Minimum Commitments (Details) $ in Thousands	Nov. 30, 2019 USD ($)
Leases [Abstract]
Remainder of 2020	$ 28,448
2021	36,561
2022	31,601
2023	28,318
2024	26,888
Thereafter	173,946
Total Undiscounted lease Payments	325,762
Less: Imputed Interest	59,316
Present value of total lease payments	$ 266,446

Common Stock and Earnings Per Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Dec. 19, 2019	Nov. 15, 2019	Nov. 30, 2019	Nov. 30, 2018
Cash dividends paid (in USD per share)		$ 0.72
Repurchase of common stock (in shares)			343,000	275,000
Repurchases of common stock			$ 84,423	$ 60,441
Dividend payments			$ 27,259	$ 24,252
Subsequent event
Dividend payments	$ 27,100
Share-based payment arrangement, option
Antidilutive securities excluded from computation of earnings per share (in shares)			20,128
Performance shares
Antidilutive securities excluded from computation of earnings per share (in shares)				0

Subsequent Event	3 Months Ended
Subsequent Event	Nov. 30, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn January 9, 2020, Mr. Franck A.R. Gossieaux, the Company’s Executive Vice President, Global Head of Sales and Client Solutions will assume the title of Executive Vice President, Chief Revenue Officer. Ms. Rachel R. Stern, the Executive Vice President, General Counsel and Secretary will assume the title of Executive Vice President, Chief Legal Officer and Global Head of Strategic Resources. Ms. Stern will also continue as Corporate Secretary. The titles were updated to align with the executives’ current roles and responsibilities.

Derivative Instruments - Fair Value Amounts of Derivative Instruments (Details) - Foreign exchange contract - Cash flow hedging - Designated as hedging instrument - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Prepaid expenses and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Assets: Foreign Currency Forward Contracts	$ 984	$ 520
Accounts payable and accrued expenses
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Liabilities: Foreign Currency Forward Contracts	$ (1,275)	$ 3,575

Leases - Schedule of Other Information Related to Operating Lease (Details) $ in Millions	3 Months Ended
	Nov. 30, 2019 USD ($)
Leases [Abstract]
Weighted average remaining lease term (in years)	10 years 6 months
Weighted average discount rate (IBR)	3.80%
Cash paid for amounts included in the measurement of lease liabilities (in millions)	$ 10.5

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Nov. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Commitments represent obligations, such as those for future purchases of goods or services that are not yet recorded on the balance sheet as liabilities. FactSet records liabilities for commitments when incurred (i.e., when the goods or services are received). Purchase Commitments with Suppliers Purchase commitments represent payments due in future periods to the Company’s various data vendors as well as commitments to purchase goods and services such as telecommunication and computer maintenance services. These purchase commitments are agreements that are enforceable and legally binding on FactSet, and they specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. As of August 31, 2019, the Company had total purchase commitments with suppliers of $69.9 million. There were no material changes in the Company’s purchase commitments during the first three months of fiscal 2020. Letters of Credit Approximately $2.9 million of standby letters of credit have been issued during the ordinary course of business in connection with the Company’s current leased office space as of November 30, 2019. These standby letters of credit utilize the same covenants included in the 2019 Credit Agreement, refer to Note 14 Debt for more information. Contingencies Income Taxes Uncertain income tax positions are accounted for in accordance with applicable accounting guidance, refer to Note 13 Income Taxes for further details. FactSet is currently under audit by tax authorities and has reserved for potential adjustments to its provision for income taxes that may result from examinations by, or any negotiated settlements with, these tax authorities. The Company believes that the final outcome of these examinations or settlements will not have a material effect on its results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period FactSet determines the liabilities are no longer necessary. If the Company’s estimates of the federal, state, and foreign income tax liabilities are less than the ultimate assessment, a further charge to expense would result. Legal Matters FactSet accrues non-income tax liabilities for contingencies when management believes that a loss is probable, and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. The Company is engaged in various legal proceedings, claims and litigation that have arisen in the ordinary course of business, including employment matters, commercial and intellectual property litigation. The outcome of all the matters against the Company is subject to future resolution, including the uncertainties of litigation. Based on information available at November 30, 2019, FactSet’s management believes that the ultimate outcome of these unresolved matters against the Company, individually or in the aggregate, will not have a material adverse effect on the Company's consolidated financial position, its results of operations or its cash flows. Sales Tax Matters In August 2019, FactSet received a Notice of Intent to Assess (the "Notice") additional sales taxes, interest and underpayment penalties from the Commonwealth of Massachusetts Department of Revenue relating to prior tax periods. The Notice follows FactSet's previously disclosed response to a letter from the Commonwealth requesting additional sales information. Based upon the Notice, it is the Commonwealth's intention to assess sales/use tax, interest and penalties on previously recorded sales transactions. The Company filed an appeal to the Notice and intends to contest any such assessment, if assessed, and continues to cooperate with the Commonwealth's inquiry. Due to the uncertainty surrounding the assessment process, the Company is unable to reasonably estimate the ultimate outcome of this matter and, as such, has not recorded a liability as of November 30, 2019. While FactSet believes that it will ultimately prevail if the Company is presented with a formal assessment; if FactSet does not prevail, the amount could have a material impact on the Company’s consolidated financial position, cash flows and results of operations. Indemnifications As permitted or required under Delaware law and to the maximum extent allowable under that law, FactSet has certain obligations to indemnify its current and former officers and directors for certain events or occurrences while the officer or director is, or was serving, at FactSet’s request in such capacity. These indemnification obligations are valid as long as the director or officer acted in good faith and in a manner the person reasonably believed to be in, or not opposed to, the best interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The maximum potential amount of future payments FactSet could be required to make under these indemnification obligations is unlimited; however, FactSet has a director and officer insurance policy that it believes mitigates FactSet’s exposure and may enable FactSet to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification obligations is immaterial. Concentrations of Credit Risk Cash equivalents Cash and cash equivalents are maintained primarily with five financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and are maintained with financial institutions, with reputable credit, and therefore, bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. Accounts Receivable Accounts receivable are unsecured and are derived from revenue earned from clients located around the globe. The Company does not require collateral from its clients but performs credit evaluations on an ongoing basis. The Company maintains reserves for potential write-offs and evaluates the adequacy of the reserves periodically. These losses have historically been within expectations. No single client represented 10% or more of FactSet’s total revenue in any period presented. At November 30, 2019, the Company’s largest individual client accounted for approximately 3% of total annual subscriptions, and subscriptions from the ten largest clients did not surpass 15% of total annual subscriptions, consistent with August 31, 2019. As of November 30, 2019, the receivable reserve was $8.9 million compared to $10.5 million as of August 31, 2019. Derivative Instruments As a result of the use of derivative instruments, the Company is exposed to counterparty credit risk. The Company has incorporated counterparty credit risk into the fair value of its derivative assets and its own credit risk into the value of the Company’s derivative liabilities, when applicable. For derivative instruments, the Company calculates credit risk from observable data related to credit default swaps ("CDS") as quoted by publicly available information. Counterparty risk is represented by CDS spreads related to the senior secured debt of the respective bank with whom the Company has executed these derivative transactions. To mitigate counterparty credit risk, the Company enters into contracts with large financial institutions and regularly reviews its credit exposure balances as well as the creditworthiness of the counterparties. For the Company’s liabilities, as CDS spread information is not available for FactSet, the Company’s credit risk is determined based on using a simple average of CDS spreads for peer companies. The Company does not expect any losses as a result of default of its counterparties. Concentrations of Other Risk Data Content Providers Certain data sets that FactSet relies on have a limited number of suppliers, although the Company makes every effort to assure that, where reasonable, alternative sources are available. FactSet is not dependent on any one third-party data supplier in order to meet the needs of its clients. FactSet combines the data from these commercial databases into its own dedicated single online service, which the client accesses to perform their analysis. No single vendor or data supplier represented more than 10% of FactSet's total data costs for the three months ended November 30, 2019 and 2018, respectively.

Segment Information - Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2019
Revenue from clients	$ 366,658	$ 351,640
Segment operating income	113,186	100,539
Total assets	1,762,232	1,365,927	$ 1,560,130
Capital expenditures	26,780	9,526
Americas
Revenue from clients	231,330	222,203
Segment operating income	49,623	43,841
Total assets	954,636	719,961
Capital expenditures	24,024	4,105
Europe
Revenue from clients	100,830	97,765
Segment operating income	41,218	39,089
Total assets	645,293	536,042
Capital expenditures	1,168	1,263
Asia Pacific
Revenue from clients	34,498	31,672
Segment operating income	22,345	17,609
Total assets	162,303	109,924
Capital expenditures	$ 1,588	$ 4,158

Common Stock and Earnings Per Share - Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Basic EPS
Net Income (Numerator)	$ 93,957	$ 84,296
Weighted Average Common Shares (Denominator)	37,978	38,106
Per Share Amount	$ 2.47	$ 2.21
Diluted EPS
Weighted Average Common Shares (Denominator)	609	703
Income available to common stockholders plus assumed conversions, net income amount	$ 93,957	$ 84,296
Income available to common stockholders plus assumed conversion, weighted average common shares (in shares)	38,587	38,809
Income available to common stockholders plus assumed conversions, per share amount (in dollars per share)	$ 2.43	$ 2.17
Basic earnings per common share (in USD per share)	2.47	2.21
Diluted earnings per common share (in USD per share)	$ 2.43	$ 2.17

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

Stockholders' Equity (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchase of common stock (in shares)	343,000	275,000
Repurchases of common stock	$ 84,423	$ 60,441
Remaining authorized repurchase amount	154,200
Cost of shares repurchased from employees	$ 1,500	$ 4,300
Restricted stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Restricted stock vested (in shares)	15,376	52,611
Treasury Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchase of common stock (in shares)	343,000	275,000
Repurchases of common stock	$ 84,423	$ 60,441
Common Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchase of common stock (in shares)
Repurchases of common stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchases of common stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss) [Line Items]
Repurchases of common stock

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss - Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency translation adjustments, pre-tax	$ 7,787	$ (9,504)
Foreign currency translation adjustments, net of tax	7,787	(9,504)
Net unrealized loss on cash flow hedges recognized in AOCL, pre-tax		1,626
Net unrealized loss on cash flow hedges recognized in AOCL, net of tax		1,038
Other comprehensive Income (loss), pre-tax	10,552	(7,878)
Other comprehensive income (loss), net of tax, total	9,838	$ (8,466)
Foreign exchange contract
Derivative Instruments, Gain (Loss) [Line Items]
Loss Reclassified from AOCL into Income (Effective Portion)	2,765
Net unrealized loss on cash flow hedges recognized in AOCL	$ 2,051

Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Debt Instrument [Line Items]
Total outstanding Debt	$ 574,219	$ 574,174
2019 Revolving Credit Facility (maturity date of March 29, 2024)
Debt Instrument [Line Items]
Total outstanding Debt	$ 575,000	$ 575,000

Stockholders' Equity

3 Months Ended

Nov. 30, 2019

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Share Repurchase Program

Repurchases will be made from time to time in the open market and privately negotiated transactions, subject to market conditions. For the three months ended November 30, 2019 and 2018, the Company repurchased 343,000 shares for $84.4 million and 275,000 shares for $60.4 million, respectively.

As of November 30, 2019, $154.2 million remains authorized for future share repurchases. There is no defined number of shares to be repurchased over a specified timeframe through the life of the share repurchase program. It is expected that share repurchases will be paid using existing and future cash generated by operations.

Restricted Stock

Restricted stock entitles the holder to shares of common stock as the awards vest over time. During the first three months of fiscal 2020, previously granted restricted stock of 15,376 shares vested and were included in common stock outstanding as of November 30, 2019 (recorded net of 5,778 shares repurchased from employees at a cost of $1.5 million to cover their cost of taxes upon vesting of the restricted stock). During the same comparable period a year ago, 52,611 shares of previously granted restricted stock vested and were included in common stock outstanding as of November 30, 2018 (recorded net of 19,350 shares repurchased from employees at a cost of $4.3 million to cover their cost of taxes upon vesting of the restricted stock).

Dividends

The Company’s Board of Directors declared the following dividends for the first three months of fiscal 2020 and 2019 respectively:

Year Ended

Dividends per
Share of
Common Stock

Record Date

Total $ Amount
(in thousands)

Payment Date

Fiscal 2020

First Quarter

0.72

November 29, 2019

27,290

December 19, 2019

Fiscal 2019

First Quarter

0.64

November 30, 2018

24,372

December 18, 2018

Cash dividends were paid from existing cash resources. Future dividend payments will depend on the Company’s earnings, capital requirements, financial condition and other factors considered relevant by the Company and is subject to final determination by the Company’s Board of Directors.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss - Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Accumulated unrealized losses on cash flow hedges, net of tax	$ (215)	$ (2,266)
Accumulated foreign currency translation adjustments	(64,491)	(72,278)
Total accumulated other comprehensive loss	$ (64,706)	$ (74,544)

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Derivative Instruments

3 Months Ended

Nov. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

Cash Flow Hedges

FactSet conducts business outside the U.S. in several currencies including British Pound Sterling, Euro, Indian Rupee, and Philippine Peso. As such, the Company is exposed to movements in foreign currency exchange rates compared to the U.S. dollar. The Company utilizes derivative instruments (foreign currency forward contracts) to manage the exposures related to the effects of foreign exchange rate fluctuations and reduce the volatility of earnings and cash flows associated with changes in foreign currency. The Company does not enter into foreign currency forward contracts for trading or speculative purposes. See Note 16, Commitments and Contingencies – Concentrations of Credit Risk, for further discussion on counterparty credit risk.

In designing a specific hedging approach, FactSet considered several factors, including offsetting exposures, the significance of exposures, the forecasting of risk and the potential effectiveness of the hedge. The gains and losses on foreign currency forward contracts offset the variability in operating expenses associated with currency movements. The changes in fair value for these foreign currency forward contracts are initially reported as a component of accumulated other comprehensive loss ("AOCL") and subsequently reclassified into operating expenses when the hedge is settled. There was no discontinuance of cash flow hedges during the first three months of fiscal 2019 or 2018, and as such, no corresponding gains or losses related to changes in the value of the Company’s contracts were reclassified into earnings prior to settlement.

As of November 30, 2019, FactSet maintained the following foreign currency forward contracts to hedge its exposures:

•Euro – foreign currency forward contracts to hedge approximately 50% of its Euro exposure through the third quarter of fiscal 2020, and 25% of its exposure during the fourth quarter of fiscal 2020

•British Pound Sterling – foreign currency forward contracts to hedge approximately 50% of its British Pound Sterling exposure through the third quarter of fiscal 2020 and 25% of its exposure through the fourth quarter of fiscal 2020

•Indian Rupee – foreign currency forward contracts to hedge approximately 50% of its Indian Rupee exposure through the third quarter of fiscal 2020, and 25% of its exposure through the fourth quarter of fiscal 2020

•Philippine Peso – foreign currency forward contracts to hedge approximately 75% of its Philippine Peso exposure through the fourth quarter of fiscal 2020

The following is a summary of all hedging positions and corresponding fair values:


Currency Hedged (in thousands, in U.S. dollars)	Gross Notional Value									Fair Value Asset (Liability)
			November 30, 2019			August 31, 2019			November 30, 2019			August 31, 2019
Euro	$	24,932		$	40,854		$	(826)		$	(1,230)
Indian Rupee	12,920			20,410			(449)			(998)
Philippine Peso	19,000			26,000			955			520
British Pound Sterling	16,587			26,436			29			(1,347)
Total	$	73,439		$	113,700		$	(291)		$	(3,055)

As of November 30, 2019, the gross notional value of foreign currency forward contracts to purchase Philippine Pesos and Indian Rupees with U.S. dollars was ₱1.0 billion and Rs906.4 billion, respectively. The gross notional value of foreign currency forward contracts to purchase U.S. dollars with Euros and British Pound Sterling was €21.7 million and £12.8 million, respectively.

Fair Value of Derivative Instruments

The following tables provide a summary of the fair value amounts of derivative instruments:


Designation of Derivatives (in thousands)	Balance Sheet Location	November 30, 2019		August 31, 2019
Derivatives designated as hedging instruments	Assets: Foreign Currency Forward Contracts
	Prepaid expenses and other current assets	$	984	$	520

	Liabilities: Foreign Currency Forward Contracts
	Accounts payable and accrued expenses	$	(1,275)	$	3,575

All derivatives were designated as hedging instruments as of November 30, 2019 and August 31, 2019.

Derivatives in Cash Flow Hedging Relationships

The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended November 30, 2019 and 2018, respectively:


(in thousands)	Gain Recognized in AOCL on Derivatives (Effective Portion)					Location of (Loss) Gain Reclassified from AOCL into Income (Effective Portion)		Loss Reclassified from AOCL into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2019		2018					2019		2018
Foreign currency forward contracts	$	2,030	$	1,943	SG&A	$	(734)	$	(399)

As of November 30, 2019, the Company assessed that these cash flow hedges were effective. All components of each derivative’s gain or loss were recorded in the Consolidated Statement of Income in Selling, general, and administrative ("SG&A"). As of November 30, 2019, the Company estimates that $0.3 million of net derivative losses related to its cash flow hedges included in AOCL will be reclassified into earnings within the next 12 months.

Offsetting of Derivative Instruments

FactSet’s master netting and other similar arrangements with its respective counterparties allow for net settlement under certain conditions. As of November 30, 2019, and August 31, 2019, there were no material amounts recorded net on the Consolidated Balance Sheets.

Debt

3 Months Ended

Nov. 30, 2019

Debt Disclosure [Abstract]

Debt

DEBT

FactSet’s debt obligations consisted of the following:


(in thousands)	November 30, 2019		August 31, 2019
2019 Revolving Credit Facility (maturity date of March 29, 2024)	$	575,000	$	575,000

On March 29, 2019, the Company entered into the 2019 Credit Agreement (the "2019 Credit Agreement") between FactSet, as the borrower, and PNC Bank, National Association ("PNC"), as the administrative agent and lender. The 2019 Credit Agreement provides for a $750.0 million revolving credit facility (the "2019 Revolving Credit Facility"). FactSet may request borrowings under the 2019 Revolving Credit Facility until its maturity date of March 29, 2024. The 2019 Credit Agreement also allows FactSet, subject to certain requirements, to arrange for additional borrowings with PNC for an aggregate amount up to $500.0 million, provided that any such request for additional borrowings must be in a minimum amount of $25.0 million.

FactSet borrowed $575.0 million of the available $750.0 million provided by the 2019 Revolving Credit Facility, resulting in $175.0 million available to be withdrawn. FactSet is required to pay a commitment fee using a pricing grid currently at 0.10% based on the daily amount by which the available balance in the 2019 Revolving Credit Facility exceeds the borrowed amount. All outstanding loan amounts are reported as Long-term debt within the Consolidated balance sheets at November 30, 2019. The principal balance is payable in full on the maturity date.

The fair value of the Company's long-term debt was $575.0 million as of November 30, 2019, which the Company believes approximates the carrying amount as the terms and interest rate approximate market rates given its floating interest rate basis. Borrowings under the loan bear interest on the outstanding principal amount at a rate equal to the daily LIBOR rate plus a spread using a debt leverage pricing grid, currently at 0.875%. For the three months ended November 30, 2019 and 2018, the Company recorded interest expense of $4.2 million and $4.7 million on its outstanding debt amounts, respectively. The weighted average interest rate on amounts outstanding under our credit facilities was 2.59% and 3.35% as of November 30, 2019 and August 31, 2019, respectively. Interest on the loan outstanding is payable quarterly, in arrears, and on the maturity date.

During fiscal 2019, FactSet incurred approximately $0.9 million in debt issuance costs related to the 2019 Credit Agreement. These costs were capitalized as loan origination fees and are amortized into interest expense ratably over the term of the 2019 Credit Agreement.

The 2019 Credit Agreement contains covenants and requirements restricting certain FactSet activities, which are usual and customary for this type of loan. In addition, the 2019 Credit Agreement requires that FactSet maintains a consolidated net leverage ratio, as measured by total net funded debt/EBITDA below a specified level as of the end of each fiscal quarter. The Company was in compliance with all the covenants and requirements within the 2019 Credit Agreement as of November 30, 2019.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

3 Months Ended

Nov. 30, 2019

Other Comprehensive (Loss) Income And Accumulated Other Comprehensive Loss [Abstract]

Other Comprehensive (Loss) Income and Accumulated Other Comprehensive Loss

OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of other comprehensive income for the three months ended November 30, 2019 and 2018 are as follows:


	November 30, 2019						November 30, 2018
(in thousands)	Pre-tax		Net of tax		Pre-tax		Net of tax
Foreign currency translation adjustments	$	7,787	$	7,787	$	(9,504)	$	(9,504)
Net unrealized gain on cash flow hedges recognized in AOCL	2,765		2,051		1,626		1,038
Other comprehensive income (loss)	$	10,552	$	9,838	$	(7,878)	$	(8,466)

The components of AOCL are as follows:


(in thousands)	November 30, 2019		August 31, 2019
Accumulated unrealized losses on cash flow hedges, net of tax	$	(215)	$	(2,266)
Accumulated foreign currency translation adjustments	(64,491)		(72,278)
Total accumulated other comprehensive loss	$	(64,706)	$	(74,544)

Common Stock and Earnings Per Share - Shares of Common Stock Outstanding (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Schedule of Common Stock Outstanding [Roll Forward]
Balance (in shares)	38,117,840	38,192,000
Common stock issued for employee stock plans (in shares)	135,000	183,000
Repurchase of common stock (in shares)	343,000	275,000
Balance (in shares)	37,904,178	38,081,000
Shares repurchased from employees (in shares)	5,778	19,350
Cost of shares repurchased from employees	$ 1.5	$ 4.3
Repurchase of common stock from employees
Schedule of Common Stock Outstanding [Roll Forward]
Repurchase of common stock (in shares)	6,000	19,000
Share repurchase program
Schedule of Common Stock Outstanding [Roll Forward]
Repurchase of common stock (in shares)	343,000	275,000

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Revenue from External Customer [Line Items]
Revenue	$ 366,658	$ 351,640
Americas
Revenue from External Customer [Line Items]
Revenue	231,330	222,203
Europe
Revenue from External Customer [Line Items]
Revenue	100,830	97,765
Asia Pacific
Revenue from External Customer [Line Items]
Revenue	$ 34,498	$ 31,672

Employee and Non-employee Director Stock Option and Retirement Plans (Tables)

3 Months Ended

Nov. 30, 2019

Schedule of Assumptions Used in the Estimated Fair Value of Employee Stock Options Granted

The estimated fair value of employee stock options granted on November 1, 2019 was determined with the following assumptions:


November 1, 2019 Grant Details
Term structure of risk-free interest rate						1.59% - 1.79%
Expected life (years)						7.22
Term structure of volatility						23% - 26%
Dividend yield						1.09%
Estimated fair value						$ 60.19
Exercise price						$ 255.87
Fair value as a percentage of exercise price						23.5%

Fair Value Measures - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($)	Nov. 30, 2019	Aug. 31, 2019
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	$ 984,000	$ 520,000
Total assets measured at fair value	103,328,000	102,042,000
Derivative instruments	1,275,000	3,575,000
Total liabilities measured at fair value	1,275,000	3,575,000
Fair value \| Corporate money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	76,293,000	75,849,000
Fair value \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	18,710,000	18,583,000
Fair value \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposit	7,341,000	7,090,000
Level 1 \| Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	0	0
Total assets measured at fair value	76,293,000	75,849,000
Derivative instruments	0	0
Total liabilities measured at fair value	0	0
Level 1 \| Fair value \| Corporate money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	76,293,000	75,849,000
Level 1 \| Fair value \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	0	0
Level 1 \| Fair value \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposit	0	0
Level 2 \| Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	984,000	520,000
Total assets measured at fair value	27,035,000	26,193,000
Derivative instruments	1,275,000	3,575,000
Total liabilities measured at fair value	1,275,000	3,575,000
Level 2 \| Fair value \| Corporate money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Level 2 \| Fair value \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	18,710,000	18,583,000
Level 2 \| Fair value \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposit	7,341,000	7,090,000
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 \| Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	0	0
Total assets measured at fair value	0	0
Derivative instruments	0	0
Total liabilities measured at fair value	0	0
Level 3 \| Fair value \| Corporate money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Level 3 \| Fair value \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mutual funds	0	0
Level 3 \| Fair value \| Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposit	$ 0	$ 0

Cover - shares	3 Months Ended
Cover - shares	Nov. 30, 2019	Dec. 31, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2019
Document Transition Report	false
Entity File Number	1-11869
Entity Registrant Name	FACTSET RESEARCH SYSTEMS INC.
Entity Tax Identification Number	13-3362547
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	45 Glover Avenue
Entity Address, City or Town	Norwalk
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06850
City Area Code	203
Local Phone Number	810-1000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		37,906,328
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	FDS
Entity Central Index Key	0001013237
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
New York Stock Exchange LLC
Entity Information [Line Items]
Security Exchange Name	NYSE
The Nasdaq Stock Market
Entity Information [Line Items]
Security Exchange Name	NASDAQ

Goodwill (Tables)

3 Months Ended

Nov. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

Changes in the carrying amount of goodwill by segment for the three months ended November 30, 2019 are as follows:


(in thousands)	Americas		Europe		Asia Pacific		Total
Balance at August 31, 2019	$	386,195	$	296,459	$	3,075	$	685,729
Foreign currency translations	—		5,686		(94)		5,592
Balance at November 30, 2019	$	386,195	$	302,145	$	2,981	$	691,321

Income Taxes

3 Months Ended

Nov. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXESIncome tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement and the tax bases of assets and liabilities using currently enacted tax rates.

Provision for Income Taxes

The provision for income taxes is as follows:


	Three Months Ended November 30,
(in thousands)	2019			2018
Income before income taxes	$	108,741		$	95,943
Provision for income taxes	$	14,784		$	11,647
Effective tax rate	13.6		%	12.1		%

FactSet’s effective tax rate is based on recurring factors and nonrecurring events, including the taxation of foreign income. The Company’s effective tax rate will vary based on, among other things, changes in levels of foreign income, as well as discrete and other nonrecurring events that may not be predictable. FactSet’s effective tax rate is lower than the applicable U.S. corporate income tax rate for the three months ended November 30, 2019 due to R&D tax benefits, foreign derived intangible income deduction ("FDII"), and excess tax benefits associated with share-based payments.

For the three months ended November 30, 2019, the provision for income taxes was $14.8 million, an increase of 26.9% from the same period a year ago. The provision increased due to higher operating income and a reduction in income tax benefits for the three months ended November 30, 2019, compared to the prior year period. Income tax benefits for the three months ended November 30, 2019 were $5.9 million due to the remeasurement of a foreign net deferred tax position due to changes in the jurisdiction's tax rate, finalizing prior years' tax returns, and windfall tax benefits from stock-based compensation, compared to a $6.4 million benefit in the prior year period due to windfall tax benefits from stock-based compensation and the revision of the one-time transition tax on accumulated earnings and profits of foreign subsidiaries permitted by the TCJA.

FactSet finalized the accounting for the tax effects of the TCJA with respect to the one-time transition tax, however the tax effects may be affected by changes in interpretations at the federal and state levels, and any additional regulatory guidance that may be issued.

Consolidated Statements of Comprehensive Income - Unaudited - USD ($)
$ in Thousands

3 Months Ended

Nov. 30, 2019

Nov. 30, 2018

Statement of Comprehensive Income [Abstract]

Net income

$ 93,957

$ 84,296

Other comprehensive income (loss), net of tax

Net unrealized gain on cash flow hedges*

^[1]

2,051

1,038

Foreign currency translation adjustments

7,787

(9,504)

Other comprehensive income (loss)

9,838

(8,466)

Comprehensive income

103,795

75,830

Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, tax

$ 714

$ 588

[1]	For the three months ended November 30, 2019 and 2018, the unrealized gains on cash flow hedges were net of a tax expense of $714 and $588, respectively.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Changes in Stockholders' Equity - Unaudited - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Treasury Stock

Retained Earnings

Accumulated Other Comprehensive Loss

Beginning balance (in shares) at Aug. 31, 2018

39,264,849

1,072,263

Beginning balance at Aug. 31, 2018

$ 525,900

$ 393

$ 667,531

$ (213,428)

$ 122,843

$ (51,439)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

84,296

Other comprehensive (loss) income

(8,466)

Common stock issued for employee stock plans (in shares)

130,031

Common stock issued for employee stock plans

18,113

$ 1

18,112

Vesting of restricted stock (in shares)

52,611

19,350

Vesting of restricted stock

$ (4,277)

Repurchase of common stock (in shares)

(275,000)

Repurchases of common stock

$ (60,441)

Stock-based compensation expense

8,435

Dividends declared

(24,372)

Retirement of treasury shares (in shares)

Cumulative effect of adoption of accounting standards*

(2,021)

^[1]

(1,304)

^[1]

(717)

^[1]

Ending balance (in shares) at Nov. 30, 2018

39,447,491

1,366,613

Ending balance at Nov. 30, 2018

541,209

$ 394

694,078

$ (278,146)

184,071

(59,188)

Beginning balance (in shares) at Aug. 31, 2019

40,104,192

1,986,352

Beginning balance at Aug. 31, 2019

672,256

$ 401

806,973

$ (433,799)

373,225

(74,544)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net income

93,957

Other comprehensive (loss) income

9,838

Common stock issued for employee stock plans (in shares)

119,740

Common stock issued for employee stock plans

19,182

$ 1

19,181

Vesting of restricted stock (in shares)

15,376

5,778

Vesting of restricted stock

$ (1,456)

Repurchase of common stock (in shares)

(343,000)

Repurchases of common stock

$ (84,423)

Stock-based compensation expense

9,814

Dividends declared

(27,290)

Ending balance (in shares) at Nov. 30, 2019

40,239,308

2,335,130

Ending balance at Nov. 30, 2019

$ 691,878

$ 402

$ 835,968

$ (519,678)

$ 439,892

$ (64,706)

[1]

Includes the cumulative effect of adoption of accounting standards primarily due to both the adoption of the new revenue recognition standard (ASC 606) resulting in a cumulative increase to retained earnings related to certain fulfillment costs and the accounting standard update related to the U.S. Tax Cuts and Jobs Act ("TCJA") providing for the reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects. See Note 4 for additional revenue recognition information.

Recent Accounting Pronouncements (Details) $ in Thousands	Nov. 30, 2019 USD ($)
Accounting Policies [Abstract]
Lease right-of-use assets, net	$ 216,957
Present value of total lease payments	$ 266,446

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Nov. 30, 2019
Accounting Policies [Abstract]
New Accounting Standards or Updates Recently Adopted	New Accounting Standards or Updates Recently Adopted Leases In February 2016, the FASB issued an accounting standard update related to accounting for leases. The update requires the recognition of lease right-of use (“ROU”) assets and liabilities on the balance sheet and the disclosure of qualitative and quantitative information about leasing arrangements. The guidance also eliminates the requirement for an entity to use bright-line tests in determining lease classification. FactSet adopted the new accounting standard effective September 1, 2019, using a modified retrospective approach to record the required cumulative effect adjustments to the opening balance sheet in the period of adoption, rather than in the earliest comparative period presented. As such, the Company's historical consolidated financial statements were not restated and follow the Company's previous policy under ASC 840, Leases. Refer to FactSet’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed with the Securities and Exchange Commission on October 30, 2019, for further details of the Company’s policy prior to adoption of ASC 842. FactSet elected the package of practical expedients permitted under the transition guidance, which permits the Company not to reassess the prior conclusions about lease identification, lease classification, and initial direct costs. FactSet did not elect the use-of-hindsight practical expedient in determining the lease term and in assessing impairment. FactSet elected the practical expedient not to separate lease components from non-lease components but, rather, to combine them into one single lease component. The Company has also elected to apply the short-term lease exception not to recognize lease liabilities and right-of-use assets for leases with a term of 12 months or less. FactSet will recognize lease payments on a straight-line basis over the lease term. As of November 30, 2019, the Company recognized right-of-use (“ROU”) assets, net of amortization of $217.0 million and corresponding current and non-current lease liabilities of $266.4 million, related primarily to the Company’s real estate leases. There was no material impact to the Company’s Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statement of Changes in Stockholders' Equity. Refer to Note 15 Leases for more information regarding the Company's lease accounting. Hedge Accounting Simplification During the first quarter of fiscal 2020, FactSet adopted the accounting standard updated issued by the FASB in August 2017, which focused on reducing the complexity of and simplifying the application of hedge accounting. The guidance refines and expands hedge accounting for both financial and nonfinancial risk components, eliminates the need to separately measure and report hedge ineffectiveness, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The adoption of this standard had no impact on the Company's consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective Credit Losses on Financial Instruments In June 2016, the FASB issued an accounting standard that significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. The guidance will be effective for the Company beginning in the first quarter of fiscal 2021. The Company is currently evaluating the impact of this accounting standard update but it is not expected to have a material impact on the Company's consolidated financial statements. Goodwill Impairment TestIn January 2017, the FASB issued an accounting standard update which removes the requirement for companies to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is currently evaluating the impact of this accounting standard update but it is not expected to have a material impact on the Company's consolidated financial statements.

Stockholders' Equity (Tables)

3 Months Ended

Nov. 30, 2019

Equity [Abstract]

Schedule of dividends declared

The Company’s Board of Directors declared the following dividends for the first three months of fiscal 2020 and 2019 respectively:

Year Ended

Dividends per
Share of
Common Stock

Record Date

Total $ Amount
(in thousands)

Payment Date

Fiscal 2020

First Quarter

0.72

November 29, 2019

27,290

December 19, 2019

Fiscal 2019

First Quarter

0.64

November 30, 2018

24,372

December 18, 2018

Common Stock and Earnings Per Share

3 Months Ended

Nov. 30, 2019

Earnings Per Share [Abstract]

Common Stock and Earnings Per Share

COMMON STOCK AND EARNINGS PER SHARE

On November 15, 2019, FactSet’s Board of Directors approved a regular quarterly dividend of $0.72 per share. The cash dividend of $27.1 million was paid on December 19, 2019 to common stockholders of record at the close of business on November 29, 2019.

Shares of common stock outstanding were as follows:


	Three Months Ended November 30,
(in thousands)	2019	2018
Balance, beginning of year at September 1, 2019 and 2018, respectively	38,118	38,192
Common stock issued for employee stock plans	135	183
Repurchase of common stock from employees⁽¹⁾	(6)	(19)
Repurchase of common stock under the share repurchase program	(343)	(275)
Balance at November 30, 2019 and 2018, respectively	37,904	38,081

(1)For the three months ended November 30, 2019 and 2018, the Company repurchased 5,778 and 19,350 shares, or $1.5 million and $4.3 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share ("EPS") computations is as follows:


(in thousands, except per share data)	Net Income (Numerator)		Weighted Average Common Shares (Denominator)	Per Share Amount
For the three months ended November 30, 2019
Basic EPS
Income available to common stockholders	$	93,957	37,978	$	2.47
Diluted EPS
Dilutive effect of stock options and restricted stock			609
Income available to common stockholders plus assumed conversions	$	93,957	38,587	$	2.43
For the three months ended November 30, 2018
Basic EPS
Income available to common stockholders	$	84,296	38,106	$	2.21
Diluted EPS
Dilutive effect of stock options and restricted stock			703
Income available to common stockholders plus assumed conversions	$	84,296	38,809	$	2.17

Dilutive potential common shares consist of stock options and unvested performance-based awards. Performance-based awards are omitted from the calculation of diluted EPS until it is determined that the performance criteria has been met at the end of the reporting period. There were 20,128 stock options excluded from the calculation of diluted EPS for the three months ended November 30, 2019, because their inclusion would have been anti-dilutive. In addition, there were 36,501 performance-based awards excluded from the calculation of diluted EPS. For the three months ended November 30, 2018, there were no stock options or performance-based awards excluded from the calculation of diluted EPS.

Revenue Recognition (Tables)

3 Months Ended

Nov. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following table presents this disaggregation of revenue by geography:


	Three months ended November 30,
(in thousands)	2019		2018
Americas	$	231,330	$	222,203
Europe	100,830		97,765
Asia Pacific	34,498		31,672
Total Revenue	$	366,658	$	351,640

Goodwill

3 Months Ended

Nov. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

Changes in the carrying amount of goodwill by segment for the three months ended November 30, 2019 are as follows:


(in thousands)	Americas		Europe		Asia Pacific		Total
Balance at August 31, 2019	$	386,195	$	296,459	$	3,075	$	685,729
Foreign currency translations	—		5,686		(94)		5,592
Balance at November 30, 2019	$	386,195	$	302,145	$	2,981	$	691,321

Goodwill is not amortized as it is estimated to have an indefinite life. At least annually, the Company is required to test goodwill at the reporting unit level for potential impairment, and, if impaired, write down to fair value based on the present value of discounted cash flows. The Company’s reporting units evaluated for potential impairment were the Americas, Europe and Asia Pacific, which reflect the level of internal reporting the Company uses to manage its business and operations. The three reporting units are consistent with the reported operating segments as there is no discrete financial information available for the subsidiaries within each operating segment. The Company performed its annual goodwill impairment test during the fourth quarter of fiscal 2019, consistent with the timing of previous years, utilizing a qualitative analysis and concluded it was more likely than not the fair value of each reporting unit was greater than its respective carrying value and no impairment charge was required.

Leases

3 Months Ended

Nov. 30, 2019

Leases [Abstract]

Leases

LEASES

In February 2016, the FASB issued an accounting standard update related to accounting for leases. The update requires the recognition of lease right-of use (“ROU”) assets and liabilities on the balance sheet and the disclosure of qualitative and quantitative information about leasing arrangements. FactSet adopted the standard as of September 1, 2019, using a modified retrospective approach to record the required cumulative effect adjustments to the opening balance sheet in the period of adoption.

FactSet reviews new arrangements at inception to evaluate whether the Company obtains substantially all the economic benefits of and has the right to control the use of an asset. If FactSet determines that an arrangement qualifies as a lease, a lease liability and a corresponding lease right-of-use (“ROU”) asset is recognized on the lease commencement date which includes fixed lease payments and certain qualifying index-based variable payments.

In determining the amount of lease payments used in measuring ROU assets and lease liabilities, FactSet elected the package of practical expedients permitted under the transition guidance, which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification, and initial direct costs. FactSet did not elect the use-of-hindsight practical expedient in determining the lease term and in assessing impairment. FactSet elected the practical expedient not to separate lease components from non-lease components but, rather, to combine them into one single lease component. The Company has also elected to apply the short-term lease exception to not recognize lease liabilities and right-of-use assets for leases with a term of 12 months or less. FactSet will recognize these lease payments on a straight-line basis over the lease term in Occupancy expense (a component of SG&A expense).

The adoption of the lease standard primarily related to the Company’s real estate operating leases. As a result of the adoption of the standard, the Company recognized lease liabilities (initially measured at the present value of the future minimum lease payments over the remaining lease term at the commencement date) of $266.4 million as of November 30, 2019, included in Current lease liabilities and Lease liabilities on the Consolidated Balance Sheets. The Company also recognized right-of-use (“ROU”) assets (initially measured as the lease liabilities, adjusted for deferred rent and lease incentives) of $217.0 million as of November 30, 2019, included in Lease right-of-use assets, net on the Consolidated Balance Sheets.

Lease liabilities are measured as the present value of the future minimum lease payments over the lease term using FactSet’s incremental borrowing rate within the geography where the leased asset is located, as there is no rate implicit in the Company’s operating lease arrangements. As FactSet does not have any outstanding public debt, the Company estimates the incremental borrowing rate based on FactSet’s estimated credit rating and available market information. The incremental borrowing rate was determined at lease commencement, or as of September 1, 2019 for operating leases in existence upon adoption of ASC 842. The incremental borrowing rate is subsequently reassessed upon a modification to the lease arrangement.

As of November 30, 2019, the Company’s leases have remaining terms of less than one year to 16 years. The ROU assets and lease liabilities recognized did not include any renewal or termination options that were not yet reasonably certain to be exercised. FactSet’s operating lease net expense for the three months ended November 30, 2019 was $10.6 million. Charges related to our operating leases that are variable and therefore not included in the measurement of the lease liabilities were $5.0 million for the three months ended November 30, 2019.

The following table reconciles FactSet’s future undiscounted cash flows related to the Company’s operating leases and the reconciliation to the operating lease liability as of November 30, 2019:


(in thousands)	Minimum Lease Payments
Years ended August 31,

Remainder of 2020	$	28,448
2021	36,561
2022	31,601
2023	28,318
2024	26,888
Thereafter	173,946
Total Undiscounted lease Payments	325,762
Less: Imputed Interest	59,316
Present value of total lease payments	$	266,446

As of November 30, 2019, the Company has entered into an additional real estate lease in the Philippines which has not yet commenced and is therefore not part of the table above nor included in the lease right-of-use assets and liabilities. This lease will commence when the Company obtains possession of the underlying leased asset which is expected to be in phases during the second and third quarters of fiscal 2020. The lease is for approximately 10 years and has undiscounted future rent payments of approximately $74 million.

The following table presents other information related to the operating leases recorded on the Consolidated Balance Sheets as of November 30, 2019:


Weighted average remaining lease term (in years)						10.5
Weighted average discount rate (IBR)						3.8%
Cash paid for amounts included in the measurement of lease liabilities (in millions)						$ 10.5

Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Nov. 30, 2019	Aug. 31, 2019
ASSETS
Cash and cash equivalents	$ 336,217	$ 359,799
Investments	26,051	25,813
Accounts receivable, net of reserves of $8,901 at November 30, 2019 and $10,511 at August 31, 2019	145,434	146,309
Prepaid taxes	0	15,033
Prepaid expenses and other current assets	38,513	36,858
Total current assets	546,215	583,812
Property, equipment and leasehold improvements, net	137,726	119,384
Goodwill	691,321	685,729
Intangible assets, net	131,679	133,691
Deferred taxes	10,514
Deferred taxes		7,571
Lease right-of-use assets, net	216,957
Other assets	27,820	29,943
TOTAL ASSETS	1,762,232	1,560,130
LIABILITIES
Accounts payable and accrued expenses	87,172	79,620
Current lease liabilities	29,406
Accrued compensation	18,632	64,202
Deferred fees	41,325	47,656
Taxes payable	3,825	0
Dividends payable	27,290	27,445
Total current liabilities	207,650	218,923
Long-term debt	574,219	574,174
Deferred taxes	13,471	16,391
Deferred fees	9,932	10,088
Taxes payable	25,115	26,292
Lease liabilities	237,040
Other non-current liabilities	2,927	42,006
TOTAL LIABILITIES	1,070,354	887,874
Commitments and contingencies (see Note 16)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued	0	0
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,239,308 and 40,104,192 shares issued, 37,904,178 and 38,117,840 shares outstanding at November 30, 2019 and August 31, 2019, respectively	402	401
Additional paid-in capital	835,968	806,973
Treasury stock, at cost: 2,335,130 and 1,986,352 shares at November 30, 2019 and August 31, 2019, respectively	(519,678)	(433,799)
Retained earnings	439,892	373,225
Accumulated other comprehensive loss	(64,706)	(74,544)
TOTAL STOCKHOLDERS’ EQUITY	691,878	672,256
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,762,232	$ 1,560,130

Employee and Non-employee Director Stock Option and Retirement Plans (Details Textual) - USD ($)			3 Months Ended
	Nov. 01, 2019	Dec. 19, 2017	Nov. 30, 2019	Nov. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price			$ 255.87
Estimated fair value			$ 60.19
Purchase price (in percentage)			85.00%
Maximum employee subscription rate (in percentage)			10.00%
Maximum contribution limit			$ 25,000
Number of share purchased by employees (in shares)			11,159	13,095
Stock issued during period employee stock purchase plans weighted average price per share (in USD per share)			$ 220.70	$ 197.34
Capital shares reserved for future issuance (in shares)			209,251
Stock based compensation expense			$ 9,800,000	$ 8,400,000
Unrecognized compensation expense related to non-vested equity			$ 107,400,000
Period for recognition			3 years 6 months
Shares repurchased from employees, amount capitalized			$ 0	0
LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)			5,500,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense			$ 500,000	$ 500,000
Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)			300,000
Share-based payment arrangement, option \| LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options (in shares)			412,098
Award vesting (in percentage)			20.00%
Award vesting period		5 years
Share-based payment arrangement, option \| LTIP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period		10 years
Non performance based \| LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price			$ 255.87
Estimated fair value			$ 60.19
Restricted stock \| LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options (in shares)			29,817
Award vesting period	5 years
Weighted average grant date fair value (in USD per share)	$ 245.48
Restricted stock \| LTIP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting (in percentage)	20.00%
Expiration period	10 years
Performance based restricted stock \| LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based stock options (in shares)			36,501
Award vesting period	3 years

Employee and Non-employee Director Stock Option and Retirement Plans

3 Months Ended

Nov. 30, 2019

Employee Stock Option and Retirement Plans

EMPLOYEE AND NON-EMPLOYEE DIRECTOR STOCK OPTION AND RETIREMENT PLANS

Stock Compensation Activity

Stock Option Awards

Stock options granted during the first three months of fiscal 2020, related to the employee grant on November 1, 2019 under the FactSet Research Systems Inc. Stock Option and Award Plan, as Amended and Restated (the "LTIP"). FactSet granted 412,098 non-performance-based employee stock options, with an exercise price of $255.87 and estimated fair value of $60.19 per share using the lattice-binomial option-pricing model. The stock options awards vest 20% annually on the anniversary date of the grant and are fully vested after five years, expiring ten years from the date of grant.

The estimated fair value of employee stock options granted on November 1, 2019 was determined with the following assumptions:


November 1, 2019 Grant Details
Term structure of risk-free interest rate						1.59% - 1.79%
Expected life (years)						7.22
Term structure of volatility						23% - 26%
Dividend yield						1.09%
Estimated fair value						$ 60.19
Exercise price						$ 255.87
Fair value as a percentage of exercise price						23.5%

Restricted Stock Units

During the first three months of fiscal 2020, FactSet granted 29,817 non-performance based restricted stock units ("RSUs") and 36,501 performance-based restricted stock units ("PRSUs") related to the annual employee grant on November 1, 2019, with a weighted average grant date fair value of $245.48 under the LTIP plan. The RSUs and PRSUs granted to employees entitle the holder to shares of common stock as the unit vests over time or the performance period, but not to dividends declared on the underlying shares, while the restricted stock is unvested. The grant date fair value of restricted stock units is measured by reducing the grant date price of FactSet's share by the present value of the dividends expected to be paid on the underlying stock during the requisite service period, discounted at the appropriate risk-free interest rate. The RSUs vest 20% annually on the anniversary date of grant and are fully vested after five years, expiring ten years from the date of grant. The PRSUs cliff vest three years from the anniversary date of grant based on the achievement of certain performance metrics and expire ten years from the date of grant.

Employee Stock Purchase Plan

Shares of FactSet common stock may be purchased by eligible employees under the FactSet Research Systems Inc. Employee Stock Purchase Plan, as Amended and Restated (the "ESPP") in three-month intervals. The purchase price is equal to 85% of the lesser of, the fair market value of the Company’s common stock on the first day or the last day of each three-month offering period. Employee purchases may not exceed 10% of their gross compensation and a $25,000 contribution limit during an offering period.

During the three months ended November 30, 2019, employees purchased 11,159 shares at a weighted average price of $220.70 compared to 13,095 shares at a weighted average price of $197.34 for the three months ended November 30, 2018. At November 30, 2019, the ESPP had 209,251 shares reserved for future issuance.

Stock-based Compensation

The Company recognized total stock-based compensation expense of $9.8 million and $8.4 million, during the three months ended November 30, 2019 and 2018, respectively. As of November 30, 2019, $107.4 million of total unrecognized compensation expense related to non-vested equity awards is expected to be recognized over a weighted average period of 3.5 years. Stock-based compensation expense related to the ESPP was $0.5 million for both the three months ended November 30, 2019 and 2018. There was no stock-based compensation capitalized for the three months ended November 30, 2019 or 2018.

As of November 30, 2019, FactSet had 5.5 million share-based awards available for grant under the LTIP and 0.3 million share-based awards available for grant under the Non-Employee Directors' Stock Option and Award Plan, as Amended and Restated.

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Income before income taxes	$ 108,741	$ 95,943
Provision for income taxes	$ 14,784	$ 11,647
Effective tax rate (in percentage)	13.60%	12.10%

Derivative Instruments (Tables)

3 Months Ended

Nov. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of All Hedging Positions and Corresponding Fair Value

The following is a summary of all hedging positions and corresponding fair values:


Currency Hedged (in thousands, in U.S. dollars)	Gross Notional Value									Fair Value Asset (Liability)
			November 30, 2019			August 31, 2019			November 30, 2019			August 31, 2019
Euro	$	24,932		$	40,854		$	(826)		$	(1,230)
Indian Rupee	12,920			20,410			(449)			(998)
Philippine Peso	19,000			26,000			955			520
British Pound Sterling	16,587			26,436			29			(1,347)
Total	$	73,439		$	113,700		$	(291)		$	(3,055)

Summary of the Fair Value Amounts of Derivative Instruments

The following tables provide a summary of the fair value amounts of derivative instruments:


Designation of Derivatives (in thousands)	Balance Sheet Location	November 30, 2019		August 31, 2019
Derivatives designated as hedging instruments	Assets: Foreign Currency Forward Contracts
	Prepaid expenses and other current assets	$	984	$	520

	Liabilities: Foreign Currency Forward Contracts
	Accounts payable and accrued expenses	$	(1,275)	$	3,575

Schedule of Pre-Tax Effect of Derivative Instruments in Cash Flow Hedging Relationships

The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended November 30, 2019 and 2018, respectively:


(in thousands)	Gain Recognized in AOCL on Derivatives (Effective Portion)					Location of (Loss) Gain Reclassified from AOCL into Income (Effective Portion)		Loss Reclassified from AOCL into Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2019		2018					2019		2018
Foreign currency forward contracts	$	2,030	$	1,943	SG&A	$	(734)	$	(399)

Basis of Presentation	3 Months Ended
Basis of Presentation	Nov. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION FactSet conducts business globally and is managed on a geographic basis. The accompanying unaudited consolidated financial statements and notes of FactSet and its wholly-owned subsidiaries included in this Quarterly Report on Form 10-Q are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements. The accompanying consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All intercompany activity and balances have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements include all normal recurring adjustments, transactions or events discretely impacting the interim periods considered necessary to present fairly the Company’s financial position, results of operations, equity and cash flows. Certain notes and other information have been condensed or omitted in this Quarterly Report on Form 10-Q, therefore the information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed with the Securities and Exchange Commission ("SEC") on October 30, 2019. The Company has evaluated subsequent events through the date that the financial statements were issued. Reclassification The Company reclassified certain capitalized software from Property, equipment and leasehold improvements, net to Intangible assets, net in the prior year comparative figures in the Consolidated Balance Sheets to conform to the current year's presentation. The Company reclassified certain prior year comparative figures from Interest expense net, to Other expense, net including non-operational foreign exchange gains and losses in the Consolidated Statement of Income to conform to the current year's presentation.

Revenue Recognition

3 Months Ended

Nov. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

The Company derives most of its revenue by providing client access to its hosted proprietary data and analytics platform which can include various combinations of products and services available over the contractual term. The hosted platform is a subscription-based service that consists primarily of providing access to products and services including workstations, analytics, enterprise data, and research management. The Company determined that the subscription-based service represents a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of transfer to the client. The Company determined the nature of the promise to the client is to provide daily access to one overall data and analytics platform. This platform provides integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the services and products offered by FactSet, the Company applies an input time-based measure of progress as the client is simultaneously receiving and consuming the benefits of the platform. The Company records revenue for its contracts using the over-time revenue recognition model as a client is invoiced or performance is satisfied. FactSet does not consider payment terms a performance obligation for customers with contractual terms that are one year or less and has elected the practical expedient.

Contracts with clients can include certain fulfillment costs, comprised of up-front costs to allow for the delivery of services and products, which are recoverable. In connection with the adoption of the revenue recognition standard, fulfillment costs are recognized as an asset, recorded in the Prepaid expenses and other current assets account for the current portion and Other assets for the non-current portion, based on the term of the license period, and amortized consistent with the associated revenue for providing the services. There are no significant judgments that would impact the timing of revenue recognition. The majority of client contracts have a duration of one year or less, or the amount FactSet is entitled to receive corresponds directly with the value of performance obligations completed to date, and therefore, the Company does not disclose the value of the remaining unsatisfied performance obligations.

Disaggregated Revenue

The Company disaggregates revenue from contracts with clients by demographic region, which includes Americas, Europe and Asia Pacific. FactSet believes these geographic regions are reflective of how the Company manages the business and the demographic markets in which it serves. The geographic regions best depict the nature, amount, timing and uncertainty of revenue and cash flows related to contracts with clients. Refer to Note 8 Segment Information for further information on revenue by geographic region.

The following table presents this disaggregation of revenue by geography:


	Three months ended November 30,
(in thousands)	2019		2018
Americas	$	231,330	$	222,203
Europe	100,830		97,765
Asia Pacific	34,498		31,672
Total Revenue	$	366,658	$	351,640

Employee and Non-employee Director Stock Option and Retirement Plans - Schedule of Assumptions Used in the Estimated Fair Value of Employee Stock Options Granted (Details)	3 Months Ended
	Nov. 30, 2019 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (Years)	7 years 2 months 19 days
Dividend yield	1.09%
Estimated fair value	$ 60.19
Exercise price	$ 255.87
Fair value as a percentage of exercise price	23.50%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term structure of risk-free interest rate	1.59%
Term structure of volatility	2300.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term structure of risk-free interest rate	1.79%
Term structure of volatility	26.00%

Derivative Instruments - Derivatives in Cash Flow Hedging Relationships (Details) - Foreign exchange contract - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss Reclassified from AOCL into Income (Effective Portion)	$ 2,765
Cash flow hedging \| Designated as hedging instrument \| SG&A
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain Recognized in AOCL on Derivatives (Effective Portion)	2,030	$ 1,943
Loss Reclassified from AOCL into Income (Effective Portion)	$ (734)	$ (399)

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Nov. 30, 2019

Other Comprehensive (Loss) Income And Accumulated Other Comprehensive Loss [Abstract]

Schedule of Components of Other Comprehensive (Loss) Income

The components of other comprehensive income for the three months ended November 30, 2019 and 2018 are as follows:


	November 30, 2019						November 30, 2018
(in thousands)	Pre-tax		Net of tax		Pre-tax		Net of tax
Foreign currency translation adjustments	$	7,787	$	7,787	$	(9,504)	$	(9,504)
Net unrealized gain on cash flow hedges recognized in AOCL	2,765		2,051		1,626		1,038
Other comprehensive income (loss)	$	10,552	$	9,838	$	(7,878)	$	(8,466)

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of AOCL are as follows:


(in thousands)	November 30, 2019		August 31, 2019
Accumulated unrealized losses on cash flow hedges, net of tax	$	(215)	$	(2,266)
Accumulated foreign currency translation adjustments	(64,491)		(72,278)
Total accumulated other comprehensive loss	$	(64,706)	$	(74,544)

Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
Equity [Abstract]
Dividends per share of common stock (in USD per share)	$ 0.72	$ 0.64
Total amount of dividends	$ 27,290	$ 24,372

Fair Value Measures (Tables)

3 Months Ended

Nov. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.


	Fair Value Measurements at November 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds ⁽¹⁾	$	76,293	$	—	$	—	$	76,293
Mutual funds ⁽²⁾	—		18,710		—		18,710
Certificates of deposit ⁽³⁾	—		7,341		—		7,341
Derivative instruments ⁽⁴⁾	—		984		—		984
Total assets measured at fair value	$	76,293	$	27,035	$	—	$	103,328

Liabilities
Derivative instruments ⁽⁴⁾	$	—	$	1,275	$	—	$	1,275
Total liabilities measured at fair value	$	—	$	1,275	$	—	$	1,275


	Fair Value Measurements at August 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds ⁽¹⁾	$	75,849	$	—	$	—	$	75,849
Mutual funds ⁽²⁾	—		18,583		—		18,583
Certificates of deposit ⁽³⁾	—		7,090		—		7,090
Derivative instruments ⁽⁴⁾	—		520		—		520
Total assets measured at fair value	$	75,849	$	26,193	$	—	$	102,042

Liabilities
Derivative instruments ⁽⁴⁾	$	—	$	3,575	$	—	$	3,575
Total liabilities measured at fair value	$	—	$	3,575	$	—	$	3,575

1.The Company’s corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. As such, the Company’s corporate money market funds are classified as Level 1 assets and included in Cash and cash equivalents within the Consolidated balance sheets.

2.The Company’s mutual funds have a fair value based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of the underlying investments is based on observable inputs. As such, the Company’s mutual funds are classified as Level 2 and are classified as Investments (short-term) on the Consolidated balance sheets.

3.The Company’s certificates of deposit held for investment are not debt securities and are classified as Level 2 assets. These certificates of deposit have original maturities greater than three months, but less than one year and, as such, are classified as Investments (short-term) within the Consolidated balance sheets.

4.The Company utilizes the income approach to measure fair value for its derivative instruments (foreign exchange forward contracts). The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads and therefore, are classified as Level 2 assets.

Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Nov. 30, 2019	Nov. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 93,957	$ 84,296
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	14,390	14,241
Stock-based compensation expense	9,814	8,435
Deferred income taxes	(6,624)	(689)
Loss on sale of assets	0	181
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of reserves	875	(3,583)
Accounts payable and accrued expenses	13,165	(10,522)
Accrued compensation	(45,780)	(44,051)
Deferred fees	(6,483)	(7,250)
Taxes payable, net of prepaid taxes	16,616	7,489
Other, net	5,861	(2,227)
Net cash provided by operating activities	95,791	46,320
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions	(26,780)	(9,526)
Purchases of investments	(2,620)	(4,356)
Proceeds from maturity or sale of investments	2,257	6,573
Net cash used in investing activities	(27,143)	(7,309)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchases of common stock	(84,423)	(64,718)
Dividend payments	(27,259)	(24,252)
Proceeds from employee stock plans	16,727	13,965
Net cash used by financing activities	(94,955)	(75,005)
Effect of exchange rate changes on cash and cash equivalents	2,725	(2,251)
Net decrease in cash and cash equivalents	(23,582)	(38,245)
Cash and cash equivalents at beginning of period	359,799	208,623
Cash and cash equivalents at end of period	$ 336,217	$ 170,378

Fair Value Measures (Details) - USD ($)	Nov. 30, 2019	Aug. 31, 2019
Level 2 \| Estimate of fair value measurement
Fair Value, Option, Quantitative Disclosures [Line Items]
Long-term debt	$ 575,000,000.0	$ 575,000,000.0
Level 3
Fair Value, Option, Quantitative Disclosures [Line Items]
Total assets measured at fair value	0	0
Financial liabilities fair value	$ 0	$ 0

Common Stock and Earnings Per Share (Tables)

3 Months Ended

Nov. 30, 2019

Earnings Per Share [Abstract]

Schedule of common stock outstanding

Shares of common stock outstanding were as follows:


	Three Months Ended November 30,
(in thousands)	2019	2018
Balance, beginning of year at September 1, 2019 and 2018, respectively	38,118	38,192
Common stock issued for employee stock plans	135	183
Repurchase of common stock from employees⁽¹⁾	(6)	(19)
Repurchase of common stock under the share repurchase program	(343)	(275)
Balance at November 30, 2019 and 2018, respectively	37,904	38,081

Schedule of weighted average number of shares

A reconciliation of the weighted average shares outstanding used in the basic and diluted earnings per share ("EPS") computations is as follows:


(in thousands, except per share data)	Net Income (Numerator)		Weighted Average Common Shares (Denominator)	Per Share Amount
For the three months ended November 30, 2019
Basic EPS
Income available to common stockholders	$	93,957	37,978	$	2.47
Diluted EPS
Dilutive effect of stock options and restricted stock			609
Income available to common stockholders plus assumed conversions	$	93,957	38,587	$	2.43
For the three months ended November 30, 2018
Basic EPS
Income available to common stockholders	$	84,296	38,106	$	2.21
Diluted EPS
Dilutive effect of stock options and restricted stock			703
Income available to common stockholders plus assumed conversions	$	84,296	38,809	$	2.17

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(28))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21553-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21488-112644

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21484-112644

Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Derivative Instruments (Details) € in Millions, £ in Millions, ₱ in Billions, ₨ in Billions	3 Months Ended
	Aug. 31, 2020	May 31, 2020	Nov. 30, 2019 USD ($)	Nov. 30, 2018 USD ($)	Nov. 30, 2019 PHP (₱)	Nov. 30, 2019 INR (₨)	Nov. 30, 2019 EUR (€)	Nov. 30, 2019 GBP (£)	Aug. 31, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Discontinuance of cash flow hedges			$ 0	$ 0
Net derivative losses related to its cash flow hedges included in AOCL estimated to be reclassified into earnings within the next 12 months			(300,000)
Euro \| Cash flow hedging \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount			24,932,000						$ 40,854,000
Euro \| Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percent of foreign exchange contracts hedged (in percentage)	25.00%	50.00%
Indian Rupee \| Cash flow hedging \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount			12,920,000						20,410,000
Indian Rupee \| Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percent of foreign exchange contracts hedged (in percentage)	25.00%	50.00%
Philippine Peso \| Cash flow hedging \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount			19,000,000						26,000,000
Philippine Peso \| Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percent of foreign exchange contracts hedged (in percentage)	75.00%
British Pound Sterling \| Cash flow hedging \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount			16,587,000						26,436,000
British Pound Sterling \| Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Percent of foreign exchange contracts hedged (in percentage)	25.00%	50.00%
Foreign exchange contract \| Cash flow hedging \| Designated as hedging instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount			$ 73,439,000		₱ 1.0	₨ 906.4	€ 21.7	£ 12.8	$ 113,700,000

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Nov. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Present value of total lease payments	$ 266,446
Lease right-of-use assets, net	216,957
Operating lease expense	10,600
Variable lease cost	$ 5,000
Lease not yet commenced, term of contract	10 years
Lease not yet commenced, undiscounted amount	$ 74,000
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	16 years

Debt (Tables)

3 Months Ended

Nov. 30, 2019

Debt Disclosure [Abstract]

Schedule of Debt Obligations

FactSet’s debt obligations consisted of the following:


(in thousands)	November 30, 2019		August 31, 2019
2019 Revolving Credit Facility (maturity date of March 29, 2024)	$	575,000	$	575,000

Goodwill (Details Textual)	3 Months Ended
Goodwill (Details Textual)	Nov. 30, 2019 numberOfReportingUnits	Aug. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reporting units \| numberOfReportingUnits	3
Goodwill impairment loss \| $		$ 0

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2019
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 14,784	$ 11,647
Percentage change in total provision for income taxes	26.90%
Tax cuts and jobs act income tax expense	$ 5,900		$ 6,400

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Nov. 30, 2019
Accounting Policies [Abstract]
Recent Accounting Policies	RECENT ACCOUNTING PRONOUNCEMENTS As of November 30, 2019, the Company implemented all applicable new accounting standards and updates issued by the Financial Accounting Standards Board ("FASB") that were in effect. There were no new standards or updates adopted during the first three months of fiscal 2020 that had a material impact on the consolidated financial statements other than the new lease accounting standard discussed below. Refer to Note 15 Leases for additional information. New Accounting Standards or Updates Recently Adopted Leases In February 2016, the FASB issued an accounting standard update related to accounting for leases. The update requires the recognition of lease right-of use (“ROU”) assets and liabilities on the balance sheet and the disclosure of qualitative and quantitative information about leasing arrangements. The guidance also eliminates the requirement for an entity to use bright-line tests in determining lease classification. FactSet adopted the new accounting standard effective September 1, 2019, using a modified retrospective approach to record the required cumulative effect adjustments to the opening balance sheet in the period of adoption, rather than in the earliest comparative period presented. As such, the Company's historical consolidated financial statements were not restated and follow the Company's previous policy under ASC 840, Leases. Refer to FactSet’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed with the Securities and Exchange Commission on October 30, 2019, for further details of the Company’s policy prior to adoption of ASC 842. FactSet elected the package of practical expedients permitted under the transition guidance, which permits the Company not to reassess the prior conclusions about lease identification, lease classification, and initial direct costs. FactSet did not elect the use-of-hindsight practical expedient in determining the lease term and in assessing impairment. FactSet elected the practical expedient not to separate lease components from non-lease components but, rather, to combine them into one single lease component. The Company has also elected to apply the short-term lease exception not to recognize lease liabilities and right-of-use assets for leases with a term of 12 months or less. FactSet will recognize lease payments on a straight-line basis over the lease term. As of November 30, 2019, the Company recognized right-of-use (“ROU”) assets, net of amortization of $217.0 million and corresponding current and non-current lease liabilities of $266.4 million, related primarily to the Company’s real estate leases. There was no material impact to the Company’s Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statement of Changes in Stockholders' Equity. Refer to Note 15 Leases for more information regarding the Company's lease accounting. Hedge Accounting Simplification During the first quarter of fiscal 2020, FactSet adopted the accounting standard updated issued by the FASB in August 2017, which focused on reducing the complexity of and simplifying the application of hedge accounting. The guidance refines and expands hedge accounting for both financial and nonfinancial risk components, eliminates the need to separately measure and report hedge ineffectiveness, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The adoption of this standard had no impact on the Company's consolidated financial statements. Recent Accounting Standards or Updates Not Yet Effective Credit Losses on Financial Instruments In June 2016, the FASB issued an accounting standard that significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. The guidance will be effective for the Company beginning in the first quarter of fiscal 2021. The Company is currently evaluating the impact of this accounting standard update but it is not expected to have a material impact on the Company's consolidated financial statements. Goodwill Impairment Test In January 2017, the FASB issued an accounting standard update which removes the requirement for companies to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is currently evaluating the impact of this accounting standard update but it is not expected to have a material impact on the Company's consolidated financial statements. No other new accounting pronouncements issued or effective as of November 30, 2019 have had or are expected to have a material impact on the Company’s consolidated financial statements.

Leases (Tables)

3 Months Ended

Nov. 30, 2019

Leases [Abstract]

Schedule of future minimum commitments

The following table reconciles FactSet’s future undiscounted cash flows related to the Company’s operating leases and the reconciliation to the operating lease liability as of November 30, 2019:


(in thousands)	Minimum Lease Payments
Years ended August 31,

Remainder of 2020	$	28,448
2021	36,561
2022	31,601
2023	28,318
2024	26,888
Thereafter	173,946
Total Undiscounted lease Payments	325,762
Less: Imputed Interest	59,316
Present value of total lease payments	$	266,446

Schedule of Other Information Related to Operating Lease

The following table presents other information related to the operating leases recorded on the Consolidated Balance Sheets as of November 30, 2019:


Weighted average remaining lease term (in years)						10.5
Weighted average discount rate (IBR)						3.8%
Cash paid for amounts included in the measurement of lease liabilities (in millions)						$ 10.5

Debt (Details Textual) - USD ($)	3 Months Ended
Debt (Details Textual) - USD ($)	Nov. 30, 2019	Nov. 30, 2018	Aug. 31, 2019	Mar. 29, 2019
Debt Instrument [Line Items]
Interest paid	$ 4,200,000	$ 4,700,000
Weighted Average [Member]
Debt Instrument [Line Items]
Interest rate at period end (in percentage)	2.59%		3.35%
2019 Revolving Credit Facility (maturity date of March 29, 2024) \| PNC Bank, National Associations
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 750,000,000.0
Maximum amount of additional borrowings	$ 175,000,000.0			$ 500,000,000.0
Minimum borrowing amount required for additional borrowings	25,000,000.0
Long-term line of credit	$ 575,000,000.0
Commitment fee percentage (in percentage)	0.10%
Debt issuance costs	$ 900,000
2019 Revolving Credit Facility (maturity date of March 29, 2024) \| PNC Bank, National Associations \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (in percentage)	0.875%

Segment Information (Tables)

3 Months Ended

Nov. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information


(in thousands)
For the three months ended November 30, 2019	Americas		Europe		Asia Pacific		Total
Revenue from clients	$	231,330	$	100,830	$	34,498	$	366,658
Segment operating income	$	49,623	$	41,218	$	22,345	$	113,186
Total assets	$	954,636	$	645,293	$	162,303	$	1,762,232
Capital expenditures	$	24,024	$	1,168	$	1,588	$	26,780


For the three months ended November 30, 2018	Americas		Europe		Asia Pacific		Total
Revenue from clients	$	222,203	$	97,765	$	31,672	$	351,640
Segment operating income	$	43,841	$	39,089	$	17,609	$	100,539
Total assets	$	719,961	$	536,042	$	109,924	$	1,365,927
Capital expenditures	$	4,105	$	1,263	$	4,158	$	9,526

Fair Value Measures

3 Months Ended

Nov. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measures

FAIR VALUE MEASURES

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. The Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels. FactSet has categorized its cash equivalents, investments and derivatives within the fair value hierarchy as follows:

Level 1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. These Level 1 assets and liabilities include the Company’s corporate money market funds that are classified as cash equivalents.

Level 2 – applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. The Company’s certificates of deposit, mutual funds and derivative instruments are classified as Level 2.

Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. There were no Level 3 assets or liabilities held by the Company as of November 30, 2019 or August 31, 2019.

(a) Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables shows by level within the fair value hierarchy the Company’s assets and liabilities that are measured at fair value on a recurring basis at November 30, 2019 and August 31, 2019. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.


	Fair Value Measurements at November 30, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds ⁽¹⁾	$	76,293	$	—	$	—	$	76,293
Mutual funds ⁽²⁾	—		18,710		—		18,710
Certificates of deposit ⁽³⁾	—		7,341		—		7,341
Derivative instruments ⁽⁴⁾	—		984		—		984
Total assets measured at fair value	$	76,293	$	27,035	$	—	$	103,328

Liabilities
Derivative instruments ⁽⁴⁾	$	—	$	1,275	$	—	$	1,275
Total liabilities measured at fair value	$	—	$	1,275	$	—	$	1,275


	Fair Value Measurements at August 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds ⁽¹⁾	$	75,849	$	—	$	—	$	75,849
Mutual funds ⁽²⁾	—		18,583		—		18,583
Certificates of deposit ⁽³⁾	—		7,090		—		7,090
Derivative instruments ⁽⁴⁾	—		520		—		520
Total assets measured at fair value	$	75,849	$	26,193	$	—	$	102,042

Liabilities
Derivative instruments ⁽⁴⁾	$	—	$	3,575	$	—	$	3,575
Total liabilities measured at fair value	$	—	$	3,575	$	—	$	3,575

(b) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Certain assets, including goodwill and intangible assets, and liabilities, are measured at fair value on a non-recurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances such as when they are deemed to be other-than-temporarily impaired. Goodwill is tested for impairment using a qualitative approach. The fair values of other non-financial assets and liabilities are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparable information, and discounted cash flow projections. An impairment charge is recorded when the cost exceeds its fair value, based upon the results of such valuations. During the three months ended November 30, 2019, no fair value adjustments or material fair value measurements were required for the Company’s non-financial assets or liabilities.

As of November 30, 2019, and August 31, 2019, the fair value of the Company’s Long-term debt was $575.0 million, which approximated its carrying amount given the application of a floating interest rate equal to the daily LIBOR rate plus a spread using a debt leverage pricing grid. As the interest rate is a variable rate, adjusted based on market conditions, it approximates the current market-rate for similar instruments available to companies with comparable credit quality and maturity, and therefore, the long-term debt is categorized as Level 2 in the fair value hierarchy.

Derivative Instruments - Hedging Positions and Corresponding Fair Values (Details) - Cash flow hedging - Designated as hedging instrument $ in Thousands, € in Millions, £ in Millions, ₱ in Billions, ₨ in Billions	Nov. 30, 2019 USD ($)	Nov. 30, 2019 PHP (₱)	Nov. 30, 2019 INR (₨)	Nov. 30, 2019 EUR (€)	Nov. 30, 2019 GBP (£)	Aug. 31, 2019 USD ($)
Euro
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	$ 24,932					$ 40,854
Fair Value Asset (Liability)	(826)					(1,230)
Indian Rupee
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	12,920					20,410
Fair Value Asset (Liability)	(449)					(998)
Philippine Peso
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	19,000					26,000
Fair Value Asset (Liability)	955					520
British Pound Sterling
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	16,587					26,436
Fair Value Asset (Liability)	29					(1,347)
Foreign exchange contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gross notional amount	73,439	₱ 1.0	₨ 906.4	€ 21.7	£ 12.8	113,700
Fair Value Asset (Liability)	$ (291)					$ (3,055)