Cover
Cover - shares | 3 Months Ended | |
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, $0.01 Par Value | |
Trading Symbol | FDS | |
Entity Central Index Key | 0001013237 | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
New York Stock Exchange LLC | ||
Entity Information [Line Items] | ||
Security Exchange Name | NYSE | |
The Nasdaq Stock Market | ||
Entity Information [Line Items] | ||
Security Exchange Name | NASDAQ |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) 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 Statements of Comp
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 $588, respectively. |
Consolidated Balance Sheets - U
Consolidated Balance Sheets - Unaudited - USD ($) $ 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 |
Consolidated Balance Sheets -_2
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 |
Consolidated Statements of Cash
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 |
Consolidated Statements of Chan
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 | 84,296 | |||||||
Other comprehensive (loss) income | (8,466) | (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) | $ (4,277) | |||||||
Repurchase of common stock (in shares) | (275,000) | (275,000) | |||||||
Repurchases of common stock | $ (60,441) | $ (60,441) | |||||||
Stock-based compensation expense | 8,435 | 8,435 | |||||||
Dividends declared | (24,372) | (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 | 93,957 | |||||||
Other comprehensive (loss) income | 9,838 | 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) | $ (1,456) | |||||||
Repurchase of common stock (in shares) | (343,000) | (343,000) | |||||||
Repurchases of common stock | $ (84,423) | $ (84,423) | |||||||
Stock-based compensation expense | 9,814 | 9,814 | |||||||
Dividends declared | (27,290) | (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. |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
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. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION FactSet conducts business globally and is managed on a geographic basis. The accompany ing 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
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. R efer 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. |
Revenue Recognition
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 |
Fair Value Measures
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 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 th e C onsolidated 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 secur ities 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 der ivative 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. (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. (c) Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only 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
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 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. |
Other Comprehensive Income (Los
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) |
Segment Information
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 |
Goodwill
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 |
Common Stock and Earnings Per S
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 Weighted Per Share 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 |
Stockholders' Equity
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 t he following dividends for the first three months of fiscal 2020 and 2019 respectively: Year Ended Dividends per Record Date Total $ Amount 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. |
Employee and Non-employee Direc
Employee and Non-employee Director Stock Option and Retirement Plans | 3 Months Ended |
Nov. 30, 2019 | |
Compensation Related Costs [Abstract] | |
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. |
Income Taxes
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. |
Debt
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. |
Leases
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 O ccupancy 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 le ase 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, 201 9 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 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 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
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. Depos its 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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
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. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
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. |
Revenue Recognition (Tables)
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 |
Fair Value Measures (Tables)
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 th e C onsolidated 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 secur ities 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 der ivative 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. |
Derivative Instruments (Tables)
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 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 |
Other Comprehensive Income (L_2
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) |
Segment Information (Tables)
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 |
Goodwill (Tables)
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 |
Common Stock and Earnings Per_2
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 (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 |
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 Weighted Per Share 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 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Schedule of dividends declared | The Company’s Board of Directors declared t he following dividends for the first three months of fiscal 2020 and 2019 respectively: Year Ended Dividends per Record Date Total $ Amount 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 |
Employee and Non-employee Dir_2
Employee and Non-employee Director Stock Option and Retirement Plans (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Compensation Related Costs [Abstract] | |
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% |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of 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 % |
Debt (Tables)
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 |
Leases (Tables)
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 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 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) $ in Thousands | Nov. 30, 2019USD ($) |
Accounting Policies [Abstract] | |
Lease right-of-use assets, net | $ 216,957 |
Present value of total lease payments | $ 266,446 |
Revenue Recognition - Disaggreg
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 |
Fair Value Measures (Details)
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 | $ 575,000,000 |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Financial liabilities fair value | $ 0 | $ 0 |
Fair Value Measures - Schedule
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 |
Derivative Instruments (Details
Derivative Instruments (Details) € in Millions, £ in Millions, ₱ in Billions, ₨ in Billions | 3 Months Ended | ||||||||
Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2019EUR (€) | Nov. 30, 2019INR (₨) | Nov. 30, 2019PHP (₱) | Nov. 30, 2019GBP (£) | Aug. 31, 2019USD ($) | |
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 | € 21.7 | ₨ 906.4 | ₱ 1 | £ 12.8 | $ 113,700,000 |
Derivative Instruments - Hedgin
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, 2019USD ($) | Nov. 30, 2019EUR (€) | Nov. 30, 2019PHP (₱) | Nov. 30, 2019INR (₨) | Nov. 30, 2019GBP (£) | Aug. 31, 2019USD ($) |
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 | € 21.7 | ₱ 1 | ₨ 906.4 | £ 12.8 | 113,700 |
Fair Value Asset (Liability) | $ (291) | $ (3,055) |
Derivative Instruments - Fair V
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 |
Derivative Instruments - Deriva
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 (L_3
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 |
Other Comprehensive Income (L_4
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) |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Nov. 30, 2019numberOfSegments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Results o
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 |
Goodwill (Details Textual)
Goodwill (Details Textual) | 3 Months Ended | |
Nov. 30, 2019numberOfReportingUnits | Aug. 31, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Number of reporting units | numberOfReportingUnits | 3 | |
Goodwill impairment loss | $ | $ 0 |
Goodwill - Changes in the Carry
Goodwill - Changes in the Carrying Amount of Goodwill by Segment (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
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 |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 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 |
Common Stock and Earnings Per_4
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 |
Common Stock and Earnings Per_5
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 |
Stockholders' Equity (Details T
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 |
Stockholders' Equity - Dividend
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 |
Employee and Non-employee Dir_3
Employee and Non-employee Director Stock Option and Retirement Plans (Details Textual) - USD ($) | 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 Dir_4
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% |
Income Taxes - Provision for In
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% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
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 |
Debt - Schedule of Debt Obligat
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 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) | 3 Months Ended | |||
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 | |||
Maximum amount of additional borrowings | $ 175,000,000 | $ 500,000,000 | ||
Minimum borrowing amount required for additional borrowings | 25,000,000 | |||
Long-term line of credit | $ 575,000,000 | |||
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% |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
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 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Commitments (Details) $ in Thousands | Nov. 30, 2019USD ($) |
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 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating Lease (Details) $ in Millions | 3 Months Ended |
Nov. 30, 2019USD ($) | |
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 (
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 |