Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Feb. 28, 2015 | Mar. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FACTSET RESEARCH SYSTEMS INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -23 | |
Entity Common Stock, Shares Outstanding | 41,766,013 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1013237 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | 28-Feb-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Revenues | $247,792 | $226,934 | $490,468 | $449,909 |
Operating expenses | ||||
Cost of services | 99,516 | 87,254 | 197,059 | 170,504 |
Selling, general and administrative | 67,628 | 64,626 | 132,501 | 129,610 |
Total operating expenses | 167,144 | 151,880 | 329,560 | 300,114 |
Operating income | 80,648 | 75,054 | 160,908 | 149,795 |
Other income | 534 | 344 | 964 | 685 |
Income before income taxes | 81,182 | 75,398 | 161,872 | 150,480 |
Provision for income taxes | 19,584 | 22,972 | 44,414 | 45,876 |
Net income | $61,598 | $52,426 | $117,458 | $104,604 |
Basic earnings per common share (in Dollars per share) | $1.48 | $1.23 | $2.82 | $2.44 |
Diluted earnings per common share (in Dollars per share) | $1.46 | $1.22 | $2.78 | $2.41 |
Basic weighted average common shares (in Shares) | 41,630 | 42,547 | 41,658 | 42,840 |
Diluted weighted average common shares (in Shares) | 42,306 | 43,107 | 42,324 | 43,432 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | ||||
Net income | $61,598 | $52,426 | $117,458 | $104,604 | ||||
Other comprehensive (loss) income, net of tax | ||||||||
Net unrealized gain on cash flow hedges* | 843 | [1] | 387 | [1] | 731 | [1] | 3,284 | [1] |
Foreign currency translation adjustments | -8,011 | 3,506 | -21,566 | 11,654 | ||||
Other comprehensive (loss) income | -7,168 | 3,893 | -20,835 | 14,938 | ||||
Comprehensive income | $54,430 | $56,319 | $96,623 | $119,542 | ||||
[1] | For the three and six months ended February 28, 2015, the unrealized gain on cash flow hedges was net of tax expense of $501 and $434, respectively. The unrealized gain on cash flow hedges disclosed above for the three and six months ended February 28, 2014, was net of tax expense of $231 and $1,961, respectively. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Tax expense on the net unrealized gain on cash flow hedges | $501 | $231 | $434 | $1,961 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $122,070 | $116,378 |
Investments | 25,335 | 20,008 |
Accounts receivable, net of reserves of $1,641 at February 28, 2015 and $1,662 at August 31, 2014 | 100,038 | 90,354 |
Prepaid taxes | 15,282 | 6,532 |
Deferred taxes | 1,617 | 1,841 |
Prepaid expenses and other current assets | 17,583 | 14,662 |
Total current assets | 281,925 | 249,775 |
Property, equipment and leasehold improvements, at cost | 203,431 | 201,713 |
Less accumulated depreciation and amortization | -146,738 | -144,072 |
Property, equipment and leasehold improvements, net | 56,693 | 57,641 |
Goodwill | 305,893 | 285,608 |
Intangible assets, net | 43,313 | 41,855 |
Deferred taxes | 16,782 | 22,377 |
Other assets | 4,966 | 5,956 |
TOTAL ASSETS | 709,572 | 663,212 |
LIABILITIES | ||
Accounts payable and accrued expenses | 30,290 | 26,971 |
Accrued compensation | 28,959 | 42,481 |
Deferred fees | 40,577 | 36,504 |
Taxes payable | 4,590 | 5,036 |
Deferred taxes | 1,047 | 0 |
Dividends payable | 16,234 | 16,299 |
Total current liabilities | 121,697 | 127,291 |
Deferred taxes | 2,097 | 2,921 |
Taxes payable | 6,907 | 5,501 |
Long-term debt | 35,000 | 0 |
Deferred rent and other non-current liabilities | 14,787 | 16,417 |
TOTAL LIABILITIES | 180,488 | 152,130 |
Commitments and contingencies (See Note 17) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized, 49,714,486 and 49,110,218 shares issued; 41,630,258 and 41,792,802 shares outstanding at February 28, 2015 and August 31, 2014, respectively | 497 | 491 |
Additional paid-in capital | 471,805 | 413,754 |
Treasury stock, at cost: 8,084,228 and 7,317,416 shares at February 28, 2015 and August 31, 2014, respectively | -838,972 | -734,746 |
Retained earnings | 934,510 | 849,504 |
Accumulated other comprehensive loss | -38,756 | -17,921 |
TOTAL STOCKHOLDERS’ EQUITY | 529,084 | 511,082 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $709,572 | $663,212 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, reserves (in Dollars) | $1,641 | $1,662 |
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 49,714,486 | 49,110,218 |
Common stock, shares outstanding | 41,630,258 | 41,792,802 |
Treasury stock shares | 8,084,228 | 7,317,416 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $117,458 | $104,604 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 16,222 | 17,442 |
Stock-based compensation expense | 11,037 | 10,616 |
Deferred income taxes | 2,697 | -1,157 |
Gain on sale of assets | -4 | -64 |
Tax benefits from share-based payment arrangements | -11,743 | -4,984 |
Changes in assets and liabilities, net of effects of acquisitions | ||
Accounts receivable, net of reserves | -9,280 | -20,466 |
Accounts payable and accrued expenses | 4,206 | -2,909 |
Accrued compensation | -12,753 | -15,949 |
Deferred fees | 2,624 | 2,460 |
Taxes payable, net of prepaid taxes | 3,139 | 9,754 |
Prepaid expenses and other assets | -1,664 | -331 |
Deferred rent and other non-current liabilities | -1,172 | -389 |
Other working capital accounts, net | -27 | 100 |
Net cash provided by operating activities | 120,740 | 98,727 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of businesses, net of cash acquired | -30,133 | -47,170 |
Purchases of investments | -12,437 | -7,487 |
Proceeds from sales of investments | 7,535 | 6,871 |
Purchases of property, equipment and leasehold improvements, net of proceeds from dispositions | -11,764 | -8,032 |
Net cash used in investing activities | -46,799 | -55,818 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend payments | -32,286 | -30,011 |
Repurchase of common stock | -106,317 | -146,184 |
Proceeds from debt | 35,000 | 0 |
Debt issuance costs | -32 | 0 |
Proceeds from employee stock plans | 34,393 | 16,881 |
Tax benefits from share-based payment arrangements | 11,743 | 4,984 |
Net cash used in financing activities | -57,499 | -154,330 |
Effect of exchange rate changes on cash and cash equivalents | -10,750 | 3,584 |
Net increase (decrease) in cash and cash equivalents | 5,692 | -107,837 |
Cash and cash equivalents at beginning of period | 116,378 | 196,627 |
Cash and cash equivalents at end of period | $122,070 | $88,790 |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Business | 6 Months Ended |
Feb. 28, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | 1. ORGANIZATION AND NATURE OF BUSINESS |
FactSet Research Systems Inc. (the “Company” or “FactSet”) is a provider of integrated financial information and analytical applications to the global investment community. FactSet combines content regarding companies and securities from major markets all over the globe into a single online platform of information and analytics. By consolidating content from hundreds of databases with powerful analytics, FactSet supports the investment process from initial research to published results for buy and sell-side professionals. These professionals include portfolio managers, research and performance analysts, risk managers, marketing professionals, sell-side equity research professionals, investment bankers and fixed income professionals. The Company’s applications provide users access to company analysis, multicompany comparisons, industry analysis, company screening, portfolio analysis, predictive risk measurements, alphatesting, portfolio optimization and simulation, real-time news and quotes and tools to value and analyze fixed income securities and portfolios. With Microsoft Office integration, wireless access and customizable options, FactSet offers a complete financial workflow solution. The Company’s revenues are derived from subscriptions to services such as workstations, content and applications. |
Note_2_Basis_of_Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Feb. 28, 2015 | |
Disclosure Text Block [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | 2. BASIS OF PRESENTATION |
FactSet conducts business globally and is managed on a geographic basis. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany activity and balances have been eliminated from the consolidated financial statements. | |
The accompanying financial data as of February 28, 2015 and for the three and six months ended February 28, 2015 and 2014 has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The August 31, 2014 Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. However, the Company believes that the disclosures are adequate to make the information presented not misleading. The information in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2014. | |
In the opinion of management, the accompanying balance sheets and related interim statements of income, comprehensive income and cash flows include all normal adjustments in order to present fairly the results of the Company’s operations for the periods presented in conformity with accounting principles generally accepted in the United States. |
Note_3_Recent_Accounting_Prono
Note 3 - Recent Accounting Pronouncements | 6 Months Ended |
Feb. 28, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. RECENT ACCOUNTING PRONOUNCEMENTS |
New Accounting Standards or Updates Recently Adopted | |
As of the beginning of fiscal 2015, FactSet implemented all 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 six months of fiscal 2015 that had a material impact on the consolidated financial statements. | |
RecentAccounting Standards or Updates Not Yet Effective | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard update that changes the criteria for reporting discontinued operations. Under the accounting standard update, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when either it qualifies as held for sale, disposed of by sale, or disposed of other than by sale. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2016. | |
Revenue Recognition | |
In May 2014, the FASB issued an accounting standard update which provides clarified principles for recognizing revenue arising from contracts with clients and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue model to contracts within its scope, an entity will identify the contract with a client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2018. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. | |
Going Concern | |
In August 2014, the FASB issued an accounting standard update that requires management to evaluate and disclose whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after financial statements are issued. The evaluation and disclosure will be required to be made for both annual and interim reporting periods, if applicable, along with an evaluation as to whether management’s plans alleviate that doubt. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2017. | |
Income Statement Presentation – Extraordinary and Unusual Items | |
In January 2015, the FASB issued an accounting standard update that eliminates from GAAP the concept of extraordinary items. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2017, with early adoption permitted. The standard primarily involves presentation and disclosure and, therefore, is not expected to have a material impact on the Company’s financial condition, results of operations or its cash flows. | |
No other new accounting pronouncements issued or effective as of February 28, 2015 have had or are expected to have an impact on the Company’s consolidated financial statements. |
Note_4_Fair_Value_Measures
Note 4 - Fair Value Measures | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | 4. 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. | |||||||||||||||||
(a) 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 FactSet’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 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 FactSet as of February 28, 2015 or August 31, 2014. | |||||||||||||||||
(b) Assetsand 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 February 28, 2015 and August 31, 2014 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
28-Feb-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Corporate money market funds (1) | $ | 79,641 | $ | 0 | $ | 0 | $ | 79,641 | |||||||||
Certificates of deposit (2) | 0 | 25,335 | 0 | 25,335 | |||||||||||||
Derivative instruments (3) | 0 | 2,151 | 0 | 2,151 | |||||||||||||
Total assets measured at fair value | $ | 79,641 | $ | 27,486 | $ | 0 | $ | 107,127 | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (3) | $ | 0 | $ | 171 | $ | 0 | $ | 171 | |||||||||
Total liabilities measured at fair value | $ | 0 | $ | 171 | $ | 0 | $ | 171 | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
31-Aug-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Corporate money market funds (1) | $ | 75,363 | $ | 0 | $ | 0 | $ | 75,363 | |||||||||
Certificates of deposit (2) | 0 | 20,008 | 0 | 20,008 | |||||||||||||
Derivative instruments (3) | 0 | 1,406 | 0 | 1,406 | |||||||||||||
Total assets measured at fair value | $ | 75,363 | $ | 21,414 | $ | 0 | $ | 96,777 | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (3) | $ | 0 | $ | 591 | $ | 0 | $ | 591 | |||||||||
Total liabilities measured at fair value | $ | 0 | $ | 591 | $ | 0 | $ | 591 | |||||||||
-1 | The Company’s corporate money market funds are traded in an active market 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 and included in cash and cash equivalents on the consolidated balance sheet. | ||||||||||||||||
-2 | The Company’s certificates of deposit are held to maturity are not debt securities and are classified as Level 2. 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) on the Company’s consolidated balance sheet. | ||||||||||||||||
-3 | The Company utilizes the income approach to measure fair value for its derivative instruments (foreign exchange forward contracts). The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads and therefore are classified as Level 2. | ||||||||||||||||
The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. | |||||||||||||||||
(c) Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | |||||||||||||||||
Certain assets, including goodwill and intangible assets, and liabilities, including long-term debt, 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. The fair values of these non-financial assets and liabilities are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, 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 and six months ended February 28, 2015, no fair value adjustments were required for the Company’s non-financial assets or liabilities. | |||||||||||||||||
As of February 28, 2015, the fair value of the Company’s long-term debt was $35.0 million, which approximated its carrying amount. FactSet did not have any long-term debt as of August 31, 2014. The fair value of the Company’s long-term debt was determined based on the current rates offered to FactSet for debt with a similar maturity, and thus categorized as Level 2 in the fair value hierarchy. |
Note_5_Derivative_Instruments
Note 5 - Derivative Instruments | 6 Months Ended | |||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. DERIVATIVE INSTRUMENTS | |||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||
FactSet conducts business outside the U.S. in several currencies including the British Pound Sterling, Euro, Japanese Yen, Indian Rupee and Philippine Peso. As such, it is exposed to movements in foreign currency exchange rates compared to the U.S. dollar. To manage the exposures related to the effects of foreign exchange rate fluctuations, the Company utilizes derivative instruments (foreign currency forward contracts). The Company’s primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes. In designing a specific hedging approach, FactSet considered several factors, including offsetting exposures, significance of exposures, forecasting risk and 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 hedged exposure affects earnings. There was no discontinuance of cash flow hedges during the three and six months ended February 28, 2015 and 2014, respectively, 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 February 28, 2015, FactSet maintained the following foreign currency forward contracts to hedge its Indian Rupee, Philippine Peso, British Pound and Euro exposure: | ||||||||||||||||||
● | Indian Rupee - foreign currency forward contracts to hedge approximately 75% of its Indian Rupee exposure through the fourth quarter of fiscal 2016 and approximately 50% of its exposure through the second quarter of fiscal 2017. | |||||||||||||||||
● | Philippine Peso - foreign currency forward contracts to hedge approximately 50% of its Philippine Peso exposure through the fourth quarter of fiscal 2015. | |||||||||||||||||
● | British Pound - foreign currency forward contracts to hedge approximately 50% of its British Pound exposure through the second quarter of fiscal 2016. | |||||||||||||||||
● | Euro - foreign currency forward contracts to hedge approximately 50% of its Euro exposure through the second quarter of fiscal 2016. | |||||||||||||||||
The following is a summary of all hedging positions and corresponding fair values (in thousands): | ||||||||||||||||||
Gross Notional Value | Fair Value Asset (Liability) | |||||||||||||||||
Currency Hedged (in U.S. dollars) | 28-Feb-15 | 31-Aug-14 | 28-Feb-15 | 31-Aug-14 | ||||||||||||||
Indian Rupee | $ | 37,005 | $ | 38,479 | $ | 1,335 | $ | 700 | ||||||||||
Philippine Peso | 6,500 | 6,500 | 128 | 115 | ||||||||||||||
Euro | 19,877 | 0 | (171 | ) | 0 | |||||||||||||
British Pound | 30,539 | 0 | 688 | 0 | ||||||||||||||
Total | $ | 93,921 | $ | 44,979 | $ | 1,980 | $ | 815 | ||||||||||
As of February 28, 2015, the gross notional value of foreign exchange contracts to purchase Indian Rupees with U.S. dollars was Rs.2.5 billion. The gross notional value of foreign exchange contracts to purchase Philippine Pesos with U.S. dollars was Php292.8 million. The gross notional value of foreign exchange contracts to purchase British Pound with U.S. dollars was £20.3 million. The gross notional value of foreign exchange contracts to purchase Euros with U.S. dollars was €17.6 million. | ||||||||||||||||||
Counterparty Credit Risk | ||||||||||||||||||
As a result of the use of derivative instruments, the Company is exposed to counterparty credit risk. FactSet has incorporated counterparty risk into the fair value of its derivative assets and its own credit risk into the value of the Company’s derivative liabilities. FactSet 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 FactSet has executed these derivative transactions. Because 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. To mitigate counterparty credit risk, FactSet enters into contracts with large financial institutions. The Company regularly reviews its credit exposure balances as well as the creditworthiness of the counterparties. The Company does not expect any losses as a result of default of its counterparties. | ||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||
The following tables provide a summary of the fair value amounts of derivative instruments and gains and losses on derivative instruments (in thousands): | ||||||||||||||||||
Designation of Derivatives | Balance Sheet Location | 28-Feb-15 | 31-Aug-14 | |||||||||||||||
Derivatives designated as hedging instruments | Assets: Foreign Currency Forward Contracts | |||||||||||||||||
Prepaid expenses and other current assets | $ | 1,377 | $ | 114 | ||||||||||||||
Other assets | $ | 774 | $ | 1,292 | ||||||||||||||
Liabilities: Foreign Currency Forward Contracts | ||||||||||||||||||
Accounts payable and accrued expenses | $ | 171 | $ | 591 | ||||||||||||||
All derivatives were designated as hedging instruments as of February 28, 2015 and August 31, 2014, respectively. | ||||||||||||||||||
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 February 28, 2015 and 2014 (in thousands): | ||||||||||||||||||
Gain Recognized | Location of Gain | (Loss) Gain Reclassified | ||||||||||||||||
in AOCL on Derivatives | Reclassified from AOCL into Income | from AOCL into Income | ||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | (Effective Portion) | 2015 | 2014 | |||||||||||||
Foreign currency forward contracts | $ | 1,192 | $ | 761 | SG&A | $ | (152 | ) | $ | 143 | ||||||||
The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the six months ended February 28, 2015 and 2014 (in thousands): | ||||||||||||||||||
Gain Recognized | Location of (Loss) | (Loss) Reclassified | ||||||||||||||||
in AOCL on Derivatives | Reclassified from AOCL into Income | from AOCL into Income | ||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | (Effective Portion) | 2015 | 2014 | |||||||||||||
Foreign currency forward contracts | $ | 974 | $ | 4,988 | SG&A | $ | (191 | ) | $ | (257 | ) | |||||||
No amount of ineffectiveness was recorded in the Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss was included in the assessment of hedge effectiveness. As of February 28, 2015, FactSet estimates that approximately $1.2 million of net derivative gains 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 February 28, 2015 and August 31, 2014, information related to these offsetting arrangements was as follows (in thousands): | ||||||||||||||||||
Derivatives Offset in Consolidated Balance Sheets | ||||||||||||||||||
28-Feb-15 | Gross Derivative | Gross Derivative Amounts Offset in Balance Sheet | Net | |||||||||||||||
Amounts | Amounts | |||||||||||||||||
Fair value of assets | $ | 2,477 | $ | (326 | ) | $ | 2,151 | |||||||||||
Fair value of liabilities | (497 | ) | 326 | (171 | ) | |||||||||||||
Total | $ | 1,980 | $ | 0 | $ | 1,980 | ||||||||||||
Derivatives Offset in Consolidated Balance Sheets | ||||||||||||||||||
31-Aug-14 | Gross Derivative | Gross Derivative Amounts Offset in Balance Sheet | Net | |||||||||||||||
Amounts | Amounts | |||||||||||||||||
Fair value of assets | $ | 1,406 | $ | 0 | $ | 1,406 | ||||||||||||
Fair value of liabilities | (626 | ) | 35 | (591 | ) | |||||||||||||
Total | $ | 780 | $ | 35 | $ | 815 | ||||||||||||
Note_6_Other_Comprehensive_Inc
Note 6 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | 6. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
The components of other comprehensive income (loss) and amounts reclassified out of accumulated other comprehensive loss into earnings during the three and six months ended February 28, 2015 and 2014 are as follows (in thousands): | |||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
28-Feb-15 | 28-Feb-14 | ||||||||||||||||
Pre-tax | Net of tax | Pre-tax | Net of tax | ||||||||||||||
Foreign currency translation adjustments | $ | (8,011 | ) | $ | (8,011 | ) | $ | 3,506 | $ | 3,506 | |||||||
Realized loss (gain) on cash flow hedges reclassified to earnings (1) | 152 | 95 | (143 | ) | (89 | ) | |||||||||||
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 1,192 | 748 | 761 | 476 | |||||||||||||
Other comprehensive income (loss) | $ | (6,667 | ) | $ | (7,168 | ) | $ | 4,124 | $ | 3,893 | |||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
28-Feb-15 | 28-Feb-14 | ||||||||||||||||
Pre-tax | Net of tax | Pre-tax | Net of tax | ||||||||||||||
Foreign currency translation adjustments | $ | (21,566 | ) | $ | (21,566 | ) | $ | 11,654 | $ | 11,654 | |||||||
Realized loss on cash flow hedges reclassified to earnings (1) | 191 | 120 | 257 | 161 | |||||||||||||
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 974 | 611 | 4,988 | 3,123 | |||||||||||||
Other comprehensive (loss) income | $ | (20,401 | ) | $ | (20,835 | ) | $ | 16,899 | $ | 14,938 | |||||||
(1) Reclassified to Selling, General and Administrative Expenses | |||||||||||||||||
The components of accumulated other comprehensive loss is as follows (in thousands): | |||||||||||||||||
28-Feb-15 | 31-Aug-14 | ||||||||||||||||
Accumulated unrealized gains on cash flow hedges, net of tax | $ | 1,241 | $ | 510 | |||||||||||||
Accumulated foreign currency translation adjustments | (39,997 | ) | (18,431 | ) | |||||||||||||
Total accumulated other comprehensive loss | $ | (38,756 | ) | $ | (17,921 | ) | |||||||||||
Note_7_Segment_Information
Note 7 - Segment Information | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | 7. SEGMENT INFORMATION | ||||||||||||||||
Operating segments are defined as components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. FactSet’s CODM is its Chief Executive Officer, who is responsible for making decisions about resources allocated amongst the operating segments based on actual results. | |||||||||||||||||
FactSet’s operating segments are aligned with how the Company, including its CODM, manages the business and the demographic markets in which FactSet serves. The Company’s internal financial reporting structure is based on three segments; U.S., Europe and Asia Pacific. FactSet believes this alignment helps it better manage the business and view the markets the Company serves, which are centered on providing integrated global financial and economic information. Sales, consulting, data collection, product development and software engineering are the primary functional groups within the U.S., Europe and Asia Pacific segments that provide global financial and economic information to investment managers, investment banks and other financial services professionals. The U.S. segment services finance professionals including financial institutions throughout the Americas, while the European and Asia Pacific segments service investment professionals located throughout Europe and Asia, respectively. | |||||||||||||||||
The European segment is headquartered in London, England and maintains office locations in France, Germany, the Netherlands, Latvia, Sweden, Spain, Dubai and Italy. The Asia Pacific segment is headquartered in Tokyo, Japan with office locations in Australia, Hong Kong, Singapore and Mumbai, India. Segment revenues reflect direct sales to clients based in their respective geographic locations. There are no intersegment or intercompany sales of the FactSet service. 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, marketing, 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 U.S. segment and are not allocated to the other segments. The content collection centers located in India and the Philippines benefit all of the Company’s operating segments and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenues. Of the total $305.9 million of goodwill reported by the Company at February 28, 2015, 68% was recorded in the U.S. segment, 31% in the European segment and the remaining 1% in the Asia Pacific segment. | |||||||||||||||||
The following reflects the results of operations of the segments consistent with the Company’s management system. These results are used by management, both in evaluating the performance of, and in allocating resources to, each of the segments (in thousands). | |||||||||||||||||
For the three months ended February 28, 2015 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 166,539 | $ | 62,554 | $ | 18,699 | $ | 247,792 | |||||||||
Segment operating profit | 42,503 | 27,899 | 10,246 | 80,648 | |||||||||||||
Total assets | 410,524 | 236,313 | 62,735 | 709,572 | |||||||||||||
Capital expenditures | 6,506 | 123 | 321 | 6,950 | |||||||||||||
For the three months ended February 28, 2014 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 154,266 | $ | 56,023 | $ | 16,645 | $ | 226,934 | |||||||||
Segment operating profit | 41,935 | 24,178 | 8,941 | 75,054 | |||||||||||||
Total assets | 378,440 | 218,671 | 56,854 | 653,965 | |||||||||||||
Capital expenditures | 2,186 | 106 | 302 | 2,594 | |||||||||||||
For the six months ended February 28, 2015 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 330,201 | $ | 123,164 | $ | 37,103 | $ | 490,468 | |||||||||
Segment operating profit | 86,938 | 54,488 | 19,482 | 160,908 | |||||||||||||
Capital expenditures | 10,831 | 208 | 725 | 11,764 | |||||||||||||
For the six months ended February 28, 2014 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 307,178 | $ | 109,728 | $ | 33,003 | $ | 449,909 | |||||||||
Segment operating profit | 82,725 | 50,423 | 16,647 | 149,795 | |||||||||||||
Capital expenditures | 7,430 | 192 | 410 | 8,032 | |||||||||||||
Note_8_Business_Combinations
Note 8 - Business Combinations | 6 Months Ended | ||||
Feb. 28, 2015 | |||||
Business Combinations [Abstract] | |||||
Business Combination Disclosure [Text Block] | 8. BUSINESS COMBINATIONS | ||||
Code Red, Inc. | |||||
On February 6, 2015, FactSet acquired Code Red, Inc. (“Code Red”) for $34.6 million. At the time of acquisition, Code Red employed 32 individuals in the U.S. and Europe and had annual subscriptions of $9.3 million. Code Red provides research management technologies to the investment community, including endowments and foundations, institutional asset managers, sovereign wealth funds, pensions, and hedge funds. With the addition of Code Red to FactSet's existing Research Management Solutions (“RMS”), FactSet now offers an RMS for all its clients' workflows, which is consistent with the Company’s strategy of offering software and tools to make client workflows more efficient. This factor contributed to a purchase price in excess of fair value of Code Red’s net tangible and intangible assets, leading to the recognition of goodwill. | |||||
The total preliminary purchase price of the acquisition is as follows (in thousands): | |||||
Cash consideration | $ | 32,000 | |||
Fair value of FactSet stock issued | 2,990 | ||||
Adjustment for changes in working capital | (374 | ) | |||
Total preliminary purchase price | $ | 34,616 | |||
Allocation of the purchase price to the assets acquired and liabilities assumed was not yet finalized as of February 28, 2015. The preliminary purchase price was allocated to Code Red net tangible and intangible assets based upon their estimated fair value as of the date of acquisition. The purchase price is subject to finalizing working capital adjustments. | |||||
Based upon the purchase price and preliminary valuation, the allocation is as follows (in thousands): | |||||
Tangible assets acquired | $ | 2,469 | |||
Amortizable intangible assets | |||||
Software technology | 4,728 | ||||
Client relationships | 3,089 | ||||
Non-compete agreements | 277 | ||||
Trade name | 127 | ||||
Goodwill | 29,624 | ||||
Total assets acquired | 40,314 | ||||
Liabilities assumed | (5,698 | ) | |||
Net assets acquired | $ | 34,616 | |||
Intangible assets of $8.2 million have been allocated to amortizable intangible assets consisting of software technology, amortized over six years using a straight-line amortization method; client relationships, amortized over seven years using an accelerated amortization method; non-compete agreements, amortized over four years using a straight-line amortization method; and trade name, amortized over three years using a straight-line amortization method. | |||||
Goodwill totaling $29.6 million represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. Goodwill generated from the Code Red acquisition is included in the U.S. segment and is not deductible for income tax purposes. The results of operations of Code Red have been included in the Company’s Consolidated Statements of Income since the completion of the acquisition on February 6, 2015 and did not have a material impact on the second quarter of fiscal 2015. Pro forma information has not been presented because the effect of this acquisition was not material on the Company’s consolidated financial results. | |||||
Matrix Data Limited | |||||
During the second quarter of fiscal 2014, FactSet acquired Matrix Data Limited (“Matrix”) for a total purchase price of $31.8 million. Matrix’ primary line of business is a provider of intelligence to the UK financial services industry, covering market share of mutual fund distribution. Matrix has developed customer, channel and market benchmarking solutions that help clients optimize product distribution and improve marketing effectiveness to drive revenue growth. At the time of acquisition, Matrix had annual subscriptions of $7 million. The acquisition of Matrix allows FactSet to expand its current U.S. advisor-sold investments and insurance products to the UK, with the potential to ultimately expand this coverage throughout continental Europe. The opportunity for FactSet to develop an international presence and complement its existing U.S. product offerings contributed to a purchase price in excess of fair value of the Matrix net tangible and intangible assets, leading to the recognition of goodwill. | |||||
The results of operations of Matrix have been included in the Company’s Consolidated Statements of Income since the completion of the acquisition and did not have a material impact on the Company’s operations. Pro forma information has not been presented because the effect of this acquisition was not material on the Company’s consolidated financial results. | |||||
Revere Data | |||||
On September 1, 2013, FactSet acquired the assets of Revere Data, LLC (“Revere”) to complement the Company's commitment to provide its clients with insightful content sets, for $15.3 million in cash. Revere classifies companies into a unique industry taxonomy and offers a database of supply chain relationships that helps investors identify companies’ interrelationships and mutual dependencies. As of the date of acquisition, Revere had annual subscriptions of $4.9 million. The opportunity for FactSet to offer this robust data to new and existing clients contributed to a purchase price in excess of fair value of the Revere net tangible and intangible assets. As a result, FactSet recorded goodwill in connection with this transaction. The results of the operations of Revere have been included in the Company’s Consolidated Statement of Income since the completion of the acquisition on September 1, 2013 and did not have a material impact on the Company’s operations. Pro forma information has not been presented because the effect of this acquisition was not material to the Company’s consolidated financial results. |
Note_9_Goodwill
Note 9 - Goodwill | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||
Goodwill Disclosure [Text Block] | 9. GOODWILL | ||||||||||||||||
Changes in the carrying amount of goodwill by segment for the six months ended February 28, 2015 are as follows (in thousands): | |||||||||||||||||
U.S. | Europe | Asia | Total | ||||||||||||||
Pacific | |||||||||||||||||
Balance at August 31, 2014 | $ | 179,434 | $ | 103,032 | $ | 3,142 | $ | 285,608 | |||||||||
Goodwill acquired during the period | 29,624 | 0 | 0 | 29,624 | |||||||||||||
Foreign currency translations | 0 | (8,927 | ) | (412 | ) | (9,339 | ) | ||||||||||
Balance at February 28, 2015 | $ | 209,058 | $ | 94,105 | $ | 2,730 | $ | 305,893 | |||||||||
Goodwill is not amortized as it has an estimated indefinite life. At least annually, the Company evaluates goodwill at the reporting unit level for potential impairment. Goodwill is tested for impairment based on the present value of discounted cash flows, and, if impaired, written down to fair value based on discounted cash flows. The Company has three reporting units, which are consistent with the operating segments reported because there is no discrete financial information available for the subsidiaries within each operating segment. The Company’s reporting units evaluated for potential impairment were the U.S., Europe and Asia Pacific, which reflects the level of internal reporting the Company uses to manage its business and operations. The Company performed an annual goodwill impairment test during the fourth quarter of fiscal year 2014, which determined that there were no reporting units that were deemed at risk. The fair value of each of the Company’s reporting units significantly exceeded carrying value, thus there had been no impairment. | |||||||||||||||||
Goodwill acquired during the period of $29.6 million represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired from the Code Red acquisition on February 6, 2015. |
Note_10_Intangible_Assets
Note 10 - Intangible Assets | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Intangible Assets Disclosure [Text Block] | 10. INTANGIBLE ASSETS | ||||||||||||
FactSet’s identifiable intangible assets consist of acquired content databases, client relationships, software technology, non-compete agreements and trade names resulting from acquisitions, which have been fully integrated into the Company’s operations. The weighted average useful life of FactSet’s acquired identifiable intangible assets at February 28, 2015 was 10.5 years. The Company amortizes intangible assets over their estimated useful lives, which are evaluated quarterly to determine whether events and circumstances warrant a revision to the remaining period of amortization. There have been no changes to the estimate of the remaining useful lives during fiscal 2015. If indicators of impairment appear to exist, amortizable intangible assets are tested for impairment based on undiscounted cash flows, and, if impaired, written down to fair value based on discounted cash flows. No impairment of intangible assets has been identified during any of the periods presented. The intangible assets have no assigned residual values. | |||||||||||||
The gross carrying amounts and accumulated amortization totals related to the Company’s identifiable intangible assets are as follows (in thousands): | |||||||||||||
At February 28, 2015 | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Data content | $ | 53,039 | $ | 28,482 | $ | 24,557 | |||||||
Client relationships | 27,861 | 17,383 | 10,478 | ||||||||||
Software technology | 26,877 | 19,912 | 6,965 | ||||||||||
Trade names | 1,809 | 1,072 | 737 | ||||||||||
Non-compete agreements | 2,732 | 2,156 | 576 | ||||||||||
Total | $ | 112,318 | $ | 69,005 | $ | 43,313 | |||||||
At August 31, 2014 | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Data content | $ | 56,974 | $ | 27,644 | $ | 29,330 | |||||||
Client relationships | 25,821 | 17,443 | 8,378 | ||||||||||
Software technology | 22,881 | 20,089 | 2,792 | ||||||||||
Non-compete agreements | 2,465 | 1,881 | 584 | ||||||||||
Trade names | 1,729 | 958 | 771 | ||||||||||
Total | $ | 109,870 | $ | 68,015 | $ | 41,855 | |||||||
During the second quarter of fiscal 2015, $8.2 million of intangible assets were acquired with a weighted average useful life of 6.3 years due to the acquisition of Code Red on February 6, 2015. | |||||||||||||
Amortization expense recorded for intangible assets was $2.0 million and $2.2 million for the three months ended February 28, 2015 and 2014, respectively. Amortization expense recorded for intangible assets was $4.1 million and $3.9 million for the six months ended February 28, 2015 and 2014, respectively. As of February 28, 2015, estimated intangible asset amortization expense for each of the next five years and thereafter are as follows (in thousands): | |||||||||||||
Fiscal Year | Estimated Amortization | ||||||||||||
Expense | |||||||||||||
2015 (remaining six months) | $ | 4,023 | |||||||||||
2016 | 6,895 | ||||||||||||
2017 | 6,813 | ||||||||||||
2018 | 5,688 | ||||||||||||
2019 | 4,376 | ||||||||||||
Thereafter | 15,518 | ||||||||||||
Total | $ | 43,313 | |||||||||||
Note_11_Common_Stock_and_Earni
Note 11 - Common Stock and Earnings Per Share | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share [Text Block] | 11. COMMON STOCK AND EARNINGS PER SHARE | ||||||||||||
On February 11, 2015, FactSet’s Board of Directors approved a regular quarterly dividend of $0.39 per share, or $1.56 per share per annum. The cash dividend of $16.2 million was paid on March 17, 2015 to common stockholders of record at the close of business on February 27, 2015. | |||||||||||||
Shares of common stock outstanding were as follows (in thousands): | |||||||||||||
Six Months Ended | |||||||||||||
February 28, | |||||||||||||
2015 | 2014 | ||||||||||||
Balance at September 1 | 41,793 | 43,324 | |||||||||||
Common stock issued for employee stock plans | 604 | 389 | |||||||||||
Stock issued for acquisition of a business | 20 | 0 | |||||||||||
Repurchase of common stock from employees* | (17 | ) | (21 | ) | |||||||||
Repurchase of common stock under the share repurchase program | (770 | ) | (1,330 | ) | |||||||||
Balance at February 28, 2015 and 2014, respectively | 41,630 | 42,362 | |||||||||||
* For the six months ended February 28, 2015 and 2014, the Company repurchased 17,165 and 21,289 shares, or $2.2 million and $2.3 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 computations is as follows (in thousands, except per share data): | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Net Income | Common Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
For the three months ended February 28, 2015 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 61,598 | 41,630 | $ | 1.48 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 676 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 61,598 | 42,306 | $ | 1.46 | ||||||||
For the three months ended February 28, 2014 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 52,426 | 42,547 | $ | 1.23 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 560 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 52,426 | 43,107 | $ | 1.22 | ||||||||
For the six months ended February 28, 2015 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 117,458 | 41,658 | $ | 2.82 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 666 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 117,458 | 42,324 | $ | 2.78 | ||||||||
For the six months ended February 28, 2014 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 104,604 | 42,840 | $ | 2.44 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 592 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 104,604 | 43,432 | $ | 2.41 | ||||||||
Dilutive potential common shares consist of stock options and unvested restricted stock awards. No stock options were excluded from the calculation of diluted EPS for the three and six months ended February 28, 2015, while 49,738 were excluded for the three months ended February 28, 2014, because their inclusion would have been anti-dilutive. No stock options were excluded from calculation of diluted EPS for the six months ended February 28, 2014. | |||||||||||||
For the three and six months ended February 28, 2015, the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 494,297. For the three and six months ended February 28, 2014 the number of performance-based stock option grants excluded from the calculation of diluted earnings per share was 1,394,821. Performance-based stock options are omitted from the calculation of diluted earnings per share until the performance criteria are probable of being achieved. The criterion was not yet probable of being achieved as of February 28, 2015 and 2014 for these performance-based stock options. |
Note_12_Stockholders_Equity
Note 12 - Stockholders' Equity | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 12. STOCKHOLDERS’ EQUITY | ||||||||||||
Preferred Stock | |||||||||||||
At February 28, 2015 and August 31, 2014, there were 10,000,000 shares of preferred stock ($.01 par value per share) authorized, of which no shares were issued and outstanding. FactSet’s Board of Directors may from time to time authorize the issuance of one or more series of preferred stock and, in connection with the creation of such series, determine the characteristics of each such series including, without limitation, the preference and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions of the series. | |||||||||||||
Common Stock | |||||||||||||
At February 28, 2015 and August 31, 2014, there were 150,000,000 shares of common stock ($.01 par value per share) authorized, of which 49,714,486 and 49,110,218 shares were issued, respectively. The authorized shares of common stock are issuable for any proper corporate purpose, including future stock splits, stock dividends, acquisitions, raising equity capital or to adopt additional employee benefit plans. | |||||||||||||
Treasury Stock | |||||||||||||
At February 28, 2015 and August 31, 2014, there were 8,084,228 and 7,317,416 shares of treasury stock (at cost) outstanding, respectively. As a result, 41,630,258 and 41,792,802 shares of FactSet common stock were outstanding at February 28, 2015 and August 31, 2014, respectively. In connection with the acquisition of Code Red on February 6, 2015, FactSet issued 20,207 shares of treasury stock with a fair value of $3.0 million. | |||||||||||||
Share Repurchase Program | |||||||||||||
On December 15, 2014, the Company’s Board of Directors approved a $300 million expansion of the existing share repurchase program. During the first six months of fiscal 2015, the Company repurchased 769,854 shares for $104.1 million. At February 28, 2015, $282.9 million remains authorized for future share repurchases. Repurchases will be made from time to time in the open market and privately negotiated transactions, subject to market conditions. No minimum number of shares to be repurchased has been fixed. There is no timeframe to complete the repurchase program and it is expected that share repurchases will be paid using existing and future cash generated by operations. | |||||||||||||
Restricted Stock | |||||||||||||
Restricted stock awards entitle the holder to shares of common stock as the awards vest over time. During the first six months of fiscal 2015, 53,495 of previously granted restricted stock awards vested and were included in common stock outstanding as of February 28, 2015 (less 17,165 shares repurchased from employees to cover their cost of taxes upon vesting of the restricted stock). During the same period in fiscal 2014, 79,774 of previously granted restricted stock awards vested and were included in common stock outstanding as of February 28, 2014 (less 21,289 shares repurchased from employees to cover their cost of taxes upon vesting of the restricted stock). | |||||||||||||
Dividends | |||||||||||||
The Company’s Board of Directors declared the following historical dividends: | |||||||||||||
Declaration Date | Dividends Per | Type | Record Date | Total $ Amount | Payment Date | ||||||||
Share of | (in thousands) | ||||||||||||
Common Stock | |||||||||||||
11-Feb-15 | $ | 0.39 | Regular (cash) | 27-Feb-15 | $ | 16,236 | 17-Mar-15 | ||||||
12-Nov-14 | $ | 0.39 | Regular (cash) | 28-Nov-14 | $ | 16,216 | 16-Dec-14 | ||||||
14-Aug-14 | $ | 0.39 | Regular (cash) | 29-Aug-14 | $ | 16,299 | 16-Sep-14 | ||||||
5-May-14 | $ | 0.39 | Regular (cash) | 30-May-14 | $ | 16,386 | 17-Jun-14 | ||||||
11-Feb-14 | $ | 0.35 | Regular (cash) | 28-Feb-14 | $ | 14,827 | 18-Mar-14 | ||||||
14-Nov-13 | $ | 0.35 | Regular (cash) | 29-Nov-13 | $ | 15,046 | 17-Dec-13 | ||||||
15-Aug-13 | $ | 0.35 | Regular (cash) | 31-Aug-13 | $ | 15,164 | 17-Sep-13 | ||||||
All of the above 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. |
Note_13_Employee_Stock_Option_
Note 13 - Employee Stock Option and Retirement Plans | 6 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Compensation and Employee Benefit Plans [Text Block] | 13. EMPLOYEE STOCK OPTION AND RETIREMENT PLANS | ||||||||
Stock Option Awards | |||||||||
The FactSet Research Systems Inc. 2004 Stock Option and Award Plan, as Amended and Restated (the “Option Plan”) provides for the grant of share-based awards, including stock options and restricted stock awards to employees of FactSet. The expiration date of the Option Plan is December 14, 2020. Stock options granted under the Option Plan expire either seven or ten years from the date of grant and the majority vest ratably over a period of five years. Options become vested and exercisable provided the employee continues employment with the Company through the applicable vesting date and remain exercisable until expiration or cancellation. Options are not transferable or assignable other than by will or the laws of descent and distribution. During the grantee’s lifetime, the options may be exercised only by the grantee. | |||||||||
During the first six months of fiscal 2015, FactSet granted 625,510 stock options at a weighted average exercise price of $135.40 to existing employees of the Company. | |||||||||
As of February 28, 2015, a total of 3,540,039 stock options were outstanding at a weighted average exercise price of $91.67. Unamortized stock-based compensation of $38.6 million is expected to be recognized as stock-based compensation expense over the remaining vesting period of 3.5 years. | |||||||||
A summary of stock option activity is as follows (in thousands, except per share data): | |||||||||
Number | Weighted Average | ||||||||
Outstanding | Exercise Price Per Share | ||||||||
Balance at August 31, 2014 | 3,482 | $ | 79.67 | ||||||
Granted – non-performance based | 463 | 131.31 | |||||||
Exercised | (114 | ) | 73.53 | ||||||
Forfeited | (33 | ) | 98.28 | ||||||
Balance at November 30, 2014 | 3,798 | $ | 85.98 | ||||||
Granted – non-performance-based | 25 | 139.02 | |||||||
Granted – performance-based | 138 | 148.52 | |||||||
Granted – non-employee Directors grant | 14 | 138.48 | |||||||
Exercised | (403 | ) | 61.63 | ||||||
Forfeited | (32 | ) | 97.08 | ||||||
Balance at February 28, 2015 | 3,540 | $ | 91.67 | ||||||
The total number of in-the-money options exercisable as of February 28, 2015 was 1.6 million with a weighted average exercise price of $73.17. As of August 31, 2014, 1.9 million in-the-money outstanding options were exercisable with a weighted average exercise price of $68.78. The aggregate intrinsic value of in-the-money stock options exercisable at February 28, 2015 and August 31, 2014 was $133.1 million and $111.3 million, respectively. Aggregate intrinsic value represents the difference between the Company’s closing stock price of $155.55 on February 27, 2015 and the exercise price multiplied by the number of options exercisable as of that date. The total pre-tax intrinsic value of stock options exercised during the three months ended February 28, 2015 and 2014 was $32.8 million and $9.0 million, respectively. The total pre-tax intrinsic value of stock options exercised during the six months ended February 28, 2015 and 2014 was $38.8 million and $16.0 million, respectively. | |||||||||
Performance-based Stock Options | |||||||||
Performance-based stock options require management to make assumptions regarding the likelihood of achieving Company performance targets. The number of performance-based options that vest will be predicated on the Company achieving performance levels during the measurement period subsequent to the date of grant. Dependent on the financial performance levels attained by FactSet, a percentage of the performance-based stock options will vest to the grantees of those stock options. However, there is no current guarantee that such options will vest in whole or in part. | |||||||||
July 2012 Performance-based Option Grant | |||||||||
In July 2012, FactSet granted 241,546 performance-based employee stock options, which are eligible to vest in 20% tranches depending upon future StreetAccount user growth through August 31, 2017. During the fourth quarter of fiscal 2013, the first growth target as outlined within the terms of the grant was achieved, thus 20% or 48,314 options vested on August 31, 2013. The second 20% tranche vested on August 31, 2014 as a result of accelerated expansion of Street Account users during fiscal 2014. Due to this accelerated growth and forecasted future usage, the Company estimates that the third 20% tranche will vest by August 31, 2017. Total unamortized stock-based compensation expense as of February 28, 2015 of $0.8 million will be recognized over the remaining vesting period of 2.5 years. A change, up or down, in the actual financial performance levels achieved by StreetAccount in future fiscal years could result in the following changes to the current estimate of the vesting percentage and related expense (in thousands): | |||||||||
Vesting | Cumulative | Remaining Expense | |||||||
Percentage | Catch-up Adjustment* | to be Recognized | |||||||
Third 20% | $ | 0 | $ | 774 | |||||
Fourth 20% | $ | 948 | $ | 1,426 | |||||
Fifth 20% | $ | 2,274 | $ | 1,701 | |||||
* Amounts represent the cumulative catch-up adjustment to be recorded if there was a change in the vesting percentage as of February 28, 2015. | |||||||||
February 2015 Performance-based Option Grant | |||||||||
In connection with the acquisition of Code Red during the second quarter of fiscal 2015, FactSet granted 137,522 performance-based stock options. These performance-based options are eligible to vest four years from date of grant if certain Code Red ASV and operating margin targets are achieved over the measurement period. Of the total grant, 68,761 performance-based options are eligible for vesting based on achieving the growth targets over a four year measurement period ending February 28, 2019 and the remaining 68,761 options are eligible to cliff vest based on a two year measurement period ending February 28, 2017. For all Code Red options granted, the option holders must also remain employed by FactSet to be eligible to vest. As of February 28, 2015, total unamortized stock-based compensation of $2.4 million will be recognized as expense over the remaining vesting period of 3.9 years. A change, up or down, in the actual financial performance levels achieved by Code Red in future fiscal years could result in the following changes to the current estimate of the vesting percentage and related expense (in thousands): | |||||||||
Vesting | Cumulative | Remaining Expense | |||||||
Percentage | Catch-up Adjustment* | to be Recognized | |||||||
10% | $ | (38 | ) | $ | 0 | ||||
40% (current expectation) | $ | 0 | $ | 2,363 | |||||
70% | $ | 66 | $ | 4,134 | |||||
100% | $ | 94 | $ | 5,906 | |||||
* Amounts represent the cumulative catch-up adjustment to be recorded if there was a change in the vesting percentage as of February 28, 2015. | |||||||||
Other Performance-based Option Grants | |||||||||
In connection with the acquisitions of Matrix and Revere, FactSet granted 165,949 and 36,695 performance-based stock options, respectively, during fiscal 2014. The performance-based options granted in connection with the acquisition of Matrix will vest only if ASV and operating margin targets related to the Matrix business are met during a five year measurement period ending December 23, 2018, and the option holders remain employed by FactSet. As of February 28, 2015 FactSet does not believe these targets are probable of being achieved, and as such, no stock-based compensation expense is expected to be realized in connection with these options. Of the 36,695 performance-based stock options granted in connection with the Revere acquisition, FactSet currently estimates that 18,553 options will vest based upon the achievement of certain ASV and operating margins during the measurement period ending August 31, 2015. This results in unamortized stock-based compensation expense of $0.4 million to be recognized over the remaining vesting period of 3.5 years. | |||||||||
Restricted Stock and Stock Unit Awards | |||||||||
The Company’s Option Plan permits the issuance of restricted stock and restricted stock units. Restricted stock awards are subject to continued employment over a specified period. During the first six months of fiscal 2015, FactSet granted 48,313 restricted stock awards to employees of the Company at a weighted average grant date fair value of $135.66. These restricted stock awards vest over a weighted average period of 3.9 years from grant date. | |||||||||
As of February 28, 2015, a total of 357,321 shares of restricted stock and restricted stock units were unvested and outstanding, which results in unamortized stock-based compensation of $24.8 million to be recognized as stock-based compensation expense over the remaining vesting period of 3.4 years. | |||||||||
A summary of restricted stock award activity is as follows (in thousands, except per award data): | |||||||||
Number | Weighted Average | ||||||||
Outstanding | Grant Date Fair | ||||||||
Value Per Award | |||||||||
Balance at August 31, 2014 | 368 | $ | 89.77 | ||||||
Granted | 10 | $ | 127.58 | ||||||
Vested* | (53 | ) | $ | 62.85 | |||||
Canceled/forfeited | (1 | ) | $ | 93.76 | |||||
Balance at November 30, 2014 | 324 | $ | 95.4 | ||||||
Granted | 38 | $ | 137.83 | ||||||
Canceled/forfeited | (5 | ) | $ | 95.43 | |||||
Balance at February 28, 2015 | 357 | $ | 99.85 | ||||||
* All of the 53,495 restricted stock awards that vested during the first quarter of fiscal 2015 related to awards granted on October 23, 2009. These restricted stock awards cliff vested 100% after five years on October 23, 2014 and were amortized to expense over the vesting period using the straight-line attribution method. | |||||||||
Performance-based Restricted Stock Units | |||||||||
Performance-based restricted stock units require management to make assumptions regarding the likelihood of achieving Company performance targets. The number of performance-based units that vest will be predicated on the Company achieving performance levels during the measurement period subsequent to the date of grant. Dependent on the financial performance levels attained by FactSet, a percentage of the performance-based units will vest to the grantees. However, there is no current guarantee that such restricted stock will vest in whole or in part. | |||||||||
September 2013 Grant of Restricted Stock Units | |||||||||
In connection with the acquisition of Revere in the first quarter of fiscal 2014, FactSet granted 7,744 performance-based restricted stock units on September 17, 2013. Of the 7,744 performance-based restricted stock units granted, 3,872 are estimated to vest based upon the Company’s belief that certain ASV and operating margin targets will be achieved during the measurement period ending August 31, 2017. As of February 28, 2015, unamortized stock-based compensation of $0.3 million will be amortized to compensation expense over the remaining vesting period of 3.5 years. The remaining 3,872 performance-based restricted stock units are expected to be forfeited. | |||||||||
February 2015 Grant of Restricted Stock Units | |||||||||
In connection with the acquisition of Code Red during the second quarter of fiscal 2015, FactSet granted 1,724 performance-based restricted stock units. Of the 1,724 performance-based restricted stock units granted, 690 are estimated to vest based upon the Company’s belief that certain Code Red ASV and operating margin targets will be achieved during the measurement period ending February 28, 2017. As of February 28, 2015, unamortized stock-based compensation of $0.1 million will be amortized to compensation expense over the remaining vesting period of 2.0 years. The remaining 1,034 performance-based restricted stock units are expected to be forfeited. | |||||||||
Share-based Awards Available for Grant | |||||||||
A summary of share-based awards available for grant is as follows (in thousands): | |||||||||
Share-based Awards | Share-based Awards | ||||||||
Available for Grant under | Available for Grant under | ||||||||
the Employee Option Plan | the Non-Employee Directors Plan | ||||||||
Balance at August 31, 2014 | 3,222 | 102 | |||||||
Granted – non performance-based options | (463 | ) | 0 | ||||||
Granted – performance-based options | 0 | 0 | |||||||
Restricted stock awards granted* | (26 | ) | 0 | ||||||
Share-based awards canceled/forfeited* | 35 | 0 | |||||||
Balance at November 30, 2014 | 2,768 | 102 | |||||||
Granted – non performance-based options | (25 | ) | (14 | ) | |||||
Granted – performance-based options | (138 | ) | 0 | ||||||
Restricted stock awards granted* | (95 | ) | 0 | ||||||
Share-based awards canceled/forfeited* | 44 | 0 | |||||||
Balance at February 28, 2015 | 2,554 | 88 | |||||||
* Under the Company’s option plan, for each restricted stock award canceled/forfeited, an equivalent of 2.5 shares is added back to the available share-based awards balance. | |||||||||
Employee Stock Purchase Plan | |||||||||
At the 2014 Annual Meeting of Stockholders of FactSet held on December 16, 2014, the stockholders of FactSet voted on and approved the Amended and Restated FactSet Research Systems Inc. 2008 Employee Stock Purchase Plan (the “Purchase Plan”), including the reservation of an additional 500,000 shares of common stock for issuance thereunder. The amendment and restatement of the Purchase Plan was approved by FactSet’s Board of Directors on October 23, 2014, subject to the approval of the Company’s stockholders, and became effective with such stockholder approval on December 16, 2014. As a result of such stockholder approval, the Purchase Plan was amended and modified to increase the maximum number of shares of common stock authorized for issuance over the term of the Purchase Plan by 500,000 shares. There is no expiration date for the Purchase Plan. | |||||||||
Shares of FactSet common stock may be purchased by eligible employees under the Purchase Plan in three-month intervals at a purchase price equal to at least 85% of the lesser of the fair market value of the Company’s common stock on either the first day or the last day of each three-month offering period. Employee purchases may not exceed 10% of their gross compensation during an offering period. | |||||||||
During the three months ended February 28, 2015, employees purchased 17,811 shares at a weighted average price of $116.95 as compared to 20,166 shares at a weighted average price of $89.50 in the same period a year ago. During the six months ended February 28, 2015, employees purchased 33,208 shares at a weighted average price of $113.12 as compared to 36,529 shares at a weighted average price of $88.22 in the same period a year ago. At February 28, 2015, 511,673 shares were reserved for future issuance under the Purchase Plan. | |||||||||
401(k) Plan | |||||||||
The Company established a 401(k) Plan (the “401(k) Plan”) in fiscal 1993. The 401(k) Plan is a defined contribution plan covering all full-time, U.S. employees of the Company and is subject to the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986. Each year, participants may contribute up to 60% of their eligible annual compensation, subject to annual limitations established by the Internal Revenue Code. The Company matches up to 4% of employees’ earnings, capped at the IRS annual maximum. Company matching contributions are subject to a five year graduated vesting schedule. All full-time, U.S. employees are eligible for the matching contribution by the Company. The Company contributed $4.0 million and $3.7 million in matching contributions to employee 401(k) accounts during the six months ended February 28, 2015 and 2014, respectively. |
Note_14_Stockbased_Compensatio
Note 14 - Stock-based Compensation | 6 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 14. STOCK-BASED COMPENSATION | |||||||||
The Company recognized total stock-based compensation expense of $5.8 million and $11.0 million during the three and six months ended February 28, 2015, respectively. Similarly, the Company recognized total stock-based compensation expense of $5.5 million and $10.6 million during the three and six months ended February 28, 2014, respectively. As of February 28, 2015, $63.4 million of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a weighted average period of 3.5 years. There was no stock-based compensation capitalized as of February 28, 2015 or August 31, 2014, respectively. | ||||||||||
Employee Stock Option Fair Value Determinations | ||||||||||
The Company utilizes the lattice-binomial option-pricing model (“binomial model”) to estimate the fair value of new employee stock option grants. The Company’s determination of fair value of stock option awards on the date of grant using the binomial model is affected by the Company’s stock price as well as assumptions regarding a number of variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, interest rates, option forfeitures and employee stock option exercise behaviors. | ||||||||||
Fiscal 2015 | ||||||||||
– | Q1 2015 – 462,913 non performance-based employee stock options were granted at a weighted average exercise price of $131.31 and a weighted average estimated fair value of $37.67 per share. | |||||||||
– | Q2 2015 – 25,075 non performance-based employee stock options and 137,522 performance-based employee stock options were granted at a weighted average exercise price of $147.05 and a weighted average estimated fair value of $43.05 per share. | |||||||||
Fiscal 2014 | ||||||||||
– | Q1 2014 – 35,508 non performance-based employee stock options and 36,695 performance-based employee stock options were granted at a weighted average exercise price of $109.49 and a weighted average estimated fair value of $31.78 per share. | |||||||||
– | Q2 2014 – 138,902 non performance-based employee stock options and 165,949 performance-based employee stock options were granted at a weighted average exercise price of $106.03 and a weighted average estimated fair value of $29.14 per share. | |||||||||
The weighted average estimated fair value of employee stock options granted during the first six months of fiscal 2015 and 2014 was determined using the binomial model with the following weighted average assumptions: | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
February 28, | February 28, | |||||||||
2015 | 2014 | 2015 | 2014 | |||||||
Term structure of risk-free interest rate | 0.06% - 2.34% | 0.01% - 2.48% | 0.06% - 2.34% | 0.01% - 2.61% | ||||||
Expected life (in years) | 8.3 | 7.6 | 8.2 | 7.6 | ||||||
Term structure of volatility | 21% - 31% | 23% - 32% | 21% - 31% | 23% - 33% | ||||||
Dividend yield | 1.29% | 1.35% | 1.35% | 1.35% | ||||||
Weighted average estimated fair value | $43.05 | $29.14 | $39.07 | $29.64 | ||||||
Weighted average exercise price | $147.05 | $106.03 | $135.40 | $106.69 | ||||||
Fair value as a percentage of exercise price | 29.30% | 27.50% | 28.90% | 27.80% | ||||||
The risk-free interest rate assumption for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on a combination of historical volatility of the Company’s stock and implied volatilities of publicly traded options to buy FactSet common stock with contractual terms closest to the expected life of options granted to employees. The approach to utilize a mix of historical and implied volatility was based upon the availability of actively traded options on the Company’s stock and the Company’s assessment that a combination of implied volatility and historical volatility is best representative of future stock price trends. The Company uses historical data to estimate option exercises and employee termination within the valuation model. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding and is a derived output of the binomial model. The binomial model estimates employees exercise behavior is based on the option’s remaining vested life and the extent to which the option is in-the-money. The binomial model estimates the probability of exercise as a function of these two variables based on the entire history of exercises and cancellations of all past option grants made by the Company. | ||||||||||
Restricted Stock Fair Value Determinations | ||||||||||
Restricted stock granted to employees entitle the holder to shares of common stock as the award vests over time, but not to dividends declared on the underlying shares while the restricted stock is unvested. The grant date fair value of restricted stock awards are measured by reducing the grant date price of FactSet’s common stock 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. Restricted stock awards are amortized to expense over the vesting period. During the first six months of fiscal 2015, there were 48,313 restricted stock awards granted with a weighted average grant date fair value of $135.66. During the first six months of fiscal 2014, FactSet granted 204,124 restricted stock awards at a weighted average grant date fair value of $101.95. | ||||||||||
Non-Employee Director Stock Option Fair Value Determinations | ||||||||||
The 2008 Non-Employee Directors’ Stock Option Plan (the “Directors’ Plan”) provides for the grant of share-based awards, including stock options, to non-employee directors of FactSet. An initial 250,000 shares of FactSet common stock were reserved for issuance under the Directors’ Plan, of which 88,590 remain available for future grant as of February 28, 2015. The expiration date of the Directors’ Plan is December 1, 2018. | ||||||||||
The Company utilizes the Black-Scholes model to estimate the fair value of non-employee Director stock option grants. The Company’s determination of fair value of share-based payment awards on the date of grant is affected by the Company’s stock price as well as assumptions regarding a number of variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, interest rates, option forfeitures and employee stock option exercise behaviors. | ||||||||||
Fiscal 2015 | ||||||||||
On January 15, 2015, FactSet granted 13,842 stock options to the Company’s non-employee Directors. All of the options granted on January 15, 2015 have a weighted average estimated fair value of $28.18 per share, using the Black-Scholes option-pricing model with the following weighted average assumptions: | ||||||||||
Risk-free interest rate | 1.45 | % | ||||||||
Expected life (in years) | 5.4 | |||||||||
Expected volatility | 23.5 | % | ||||||||
Dividend yield | 1.3 | % | ||||||||
Fiscal 2014 | ||||||||||
On January 15, 2014, FactSet granted 14,424 stock options to the Company’s non-employee Directors. All of the options granted on January 15, 2014 have a weighted average estimated fair value of $27.04 per share, using the Black-Scholes option-pricing model with the following weighted average assumptions: | ||||||||||
Risk-free interest rate | 1.66 | % | ||||||||
Expected life (in years) | 5.4 | |||||||||
Expected volatility | 28.9 | % | ||||||||
Dividend yield | 1.35 | % | ||||||||
The risk-free interest rate assumption for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility of the Company’s stock. The Company uses historical data to estimate option exercises and non-employee director terminations within the valuation model. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. | ||||||||||
Employee Stock Purchase Plan Fair Value Determinations | ||||||||||
During the three months ended February 28, 2015, employees purchased 17,811 shares at a weighted average price of $116.95 as compared to 20,166 shares at a weighted average price of $89.50 in the same period a year ago. During the six months ended February 28, 2015, employees purchased 33,208 shares at a weighted average price of $113.12 as compared to 36,529 shares at a weighted average price of $88.22 in the same period a year ago. Stock-based compensation expense recorded for the three months ended February 28, 2015 and 2014, relating to the employee stock purchase plan was $0.4 million and $0.3 million, respectively. | ||||||||||
The Company uses the Black-Scholes model to calculate the estimated fair value for the employee stock purchase plan. The estimated fair value of employee stock purchase plan grants during the three months ended February 28, 2015 and 2014 were $22.37 and $19.04 per share, respectively, with the following assumptions: | ||||||||||
Three Months Ended | ||||||||||
February 28, | ||||||||||
2015 | 2014 | |||||||||
Risk-free interest rate | 0.03 | % | 0.05 | % | ||||||
Expected life (in months) | 3 | 3 | ||||||||
Expected volatility | 8.1 | % | 10.3 | % | ||||||
Dividend yield | 1.13 | % | 1.23 | % | ||||||
The weighted average estimated fair value of employee stock purchase plan grants during the six months ended February 28, 2015 and 2014 were $21.67 and $17.96 per share, respectively, with the following weighted average assumptions: | ||||||||||
Six Months Ended | ||||||||||
February 28, | ||||||||||
2015 | 2014 | |||||||||
Risk-free interest rate | 0.02 | % | 0.05 | % | ||||||
Expected life (in months) | 3 | 3 | ||||||||
Expected volatility | 8.3 | % | 9.6 | % | ||||||
Dividend yield | 1.17 | % | 1.29 | % | ||||||
Accuracy of Fair Value Estimates | ||||||||||
The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, interest rates, option forfeiture rates and actual and projected employee stock option exercise behaviors. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. |
Note_15_Income_Taxes
Note 15 - Income Taxes | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | 15. INCOME TAXES | ||||||||||||||||
Income 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 tax bases of assets and liabilities using currently enacted tax rates. | |||||||||||||||||
Provision for Income Taxes | |||||||||||||||||
The provision for income taxes is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
U.S. operations | $ | 64,881 | $ | 62,429 | $ | 130,839 | $ | 122,688 | |||||||||
Non-U.S. operations | 16,301 | 12,969 | 31,033 | 27,792 | |||||||||||||
Income before income taxes | $ | 81,182 | $ | 75,398 | $ | 161,872 | $ | 150,480 | |||||||||
U.S. operations | $ | 15,157 | $ | 20,275 | $ | 40,817 | $ | 39,929 | |||||||||
Non-U.S. operations | 4,427 | 2,697 | 3,597 | 5,947 | |||||||||||||
Total provision for income taxes | $ | 19,584 | $ | 22,972 | $ | 44,414 | $ | 45,876 | |||||||||
Effective tax rate | 24.1%* | 30.5 | % | 27.4 | % | 30.5 | % | ||||||||||
* On December 16, 2014, the U.S. Congress passed the Tax Increase Prevention Act of 2014 (the “ACT”), which President Obama signed into law on December 19, 2014. The ACT reinstated the U.S. Federal R&D tax credit, which had previously expired on December 31, 2013. The reenactment of the credit was retroactive to January 1, 2014 and extended through the end of the 2014 calendar year. Prior to the reenactment of the tax credit, FactSet had not been permitted to factor it into its effective tax rate because it was not currently enacted tax law. The reenactment resulted in a discrete income tax benefit of $5.1 million during the second quarter of fiscal 2015 and reduced the Company’s effective tax rate for the quarter to 24.1%. | |||||||||||||||||
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. The effective tax rate was lower than the U.S. statutory rate of 35% in both periods presented above primarily due to income tax benefits from the reenactment of the U.S. Federal R&D tax credit, foreign income, which is subject to lower statutory tax rates than in the U.S., benefits from foreign tax credits and deductions due to U.S. production activities partially offset by additional state and local income taxes. | |||||||||||||||||
The components of the provision for income taxes consist of the following (in thousands): | |||||||||||||||||
Six Months Ended | |||||||||||||||||
February 28, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Current | |||||||||||||||||
U.S. Federal | $ | 34,492 | $ | 38,630 | |||||||||||||
U.S. state and local | 2,601 | 2,573 | |||||||||||||||
Non-U.S. | 5,186 | 6,008 | |||||||||||||||
Total current taxes | $ | 42,279 | $ | 47,211 | |||||||||||||
Deferred | |||||||||||||||||
U.S. Federal | $ | 3,561 | $ | (1,205 | ) | ||||||||||||
U.S. state and local | 163 | (69 | ) | ||||||||||||||
Non-U.S. | (1,589 | ) | (61 | ) | |||||||||||||
Total deferred taxes | $ | 2,135 | $ | (1,335 | ) | ||||||||||||
Total provision for income taxes | $ | 44,414 | $ | 45,876 | |||||||||||||
Deferred Tax Assets and Liabilities | |||||||||||||||||
The significant components of deferred tax assets that are recorded in the Consolidated Balance Sheets were as follows (in thousands): | |||||||||||||||||
28-Feb-15 | 31-Aug-14 | ||||||||||||||||
Deferred tax assets | |||||||||||||||||
Current | |||||||||||||||||
Receivable reserve | $ | 592 | $ | 597 | |||||||||||||
Deferred rent | 807 | 1,067 | |||||||||||||||
Other | 218 | 177 | |||||||||||||||
Net current deferred tax assets | $ | 1,617 | $ | 1,841 | |||||||||||||
Non-current | |||||||||||||||||
Depreciation on property, equipment and leasehold improvements | $ | 9,657 | $ | 9,831 | |||||||||||||
Deferred rent | 3,459 | 3,572 | |||||||||||||||
Stock-based compensation | 18,319 | 18,160 | |||||||||||||||
Purchased intangible assets, including acquired technology | (16,416 | ) | (10,750 | ) | |||||||||||||
Other | 1,763 | 1,564 | |||||||||||||||
Net non-current deferred tax assets | $ | 16,782 | $ | 22,377 | |||||||||||||
Total deferred tax assets | $ | 18,399 | $ | 24,218 | |||||||||||||
The significant components of deferred tax liabilities that are recorded in the Consolidated Balance Sheets were as follows (in thousands): | |||||||||||||||||
28-Feb-15 | 31-Aug-14 | ||||||||||||||||
Deferred tax liabilities (current) | |||||||||||||||||
Other | $ | 1,047 | $ | 0 | |||||||||||||
Net current deferred tax liabilities | $ | 1,047 | $ | 0 | |||||||||||||
Deferred tax liabilities (non-current) | |||||||||||||||||
Purchased intangible assets, including acquired technology | $ | 1,992 | $ | 3,478 | |||||||||||||
Stock-based compensation | 0 | (860 | ) | ||||||||||||||
Depreciation on property, equipment and leasehold improvements | (182 | ) | 0 | ||||||||||||||
Other | 287 | 303 | |||||||||||||||
Net non-current deferred tax liabilities | $ | 2,097 | $ | 2,921 | |||||||||||||
Total deferred tax liabilities | $ | 3,144 | $ | 2,921 | |||||||||||||
A provision has not been made for additional U.S. Federal taxes as of February 28, 2015 on income earned by foreign subsidiaries as all undistributed earnings of such foreign subsidiaries are considered to be invested indefinitely or will be repatriated if it results in no additional U.S. tax liability. The amount of such undistributed earnings of these foreign subsidiaries included in consolidated retained earnings was immaterial at February 28, 2015 and August 31, 2014. As such, the unrecognized deferred tax liability on those undistributed earnings was immaterial. These earnings could become subject to additional tax if they are remitted as dividends, loaned to FactSet, or upon sale of the subsidiary’s stock. | |||||||||||||||||
Unrecognized Tax Positions | |||||||||||||||||
Applicable accounting guidance prescribes a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions that a company has taken or expects to take on a tax return. A company can recognize the financial effect of an income tax position only if it is more likely than not (greater than 50%) that the tax position will prevail upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit or expense can be recognized in the consolidated financial statements. The tax benefits recognized are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Additionally, companies are required to accrue interest on all tax exposures for which reserves have been established consistent with jurisdictional tax laws. | |||||||||||||||||
As of February 28, 2015, the Company had gross unrecognized tax benefits totaling $6.9 million, including $1.4 million of accrued interest, recorded as non-current taxes payable in the consolidated balance sheet. Approximately $0.5 million of these unrecognized tax benefits would have affected the current year effective tax rate if realized as of February 28, 2015. Unrecognized tax benefits represent tax positions taken on tax returns but not yet recognized in the consolidated financial statements. When applicable, the Company adjusts the previously recorded tax expense to reflect examination results when the position is ultimately settled. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. However, FactSet has no reason to believe that such audits will result in the payment of additional taxes and/or penalties that would have a material adverse effect on the Company’s results of operations or financial position, beyond current estimates. Any changes in accounting estimates resulting from new developments with respect to uncertain tax positions will be recorded as appropriate. The Company does not currently anticipate that the total amounts of unrecognized tax benefits will significantly change within the next 12 months. | |||||||||||||||||
The following table summarizes the changes in the balance of gross unrecognized tax benefits during the first six months of fiscal 2015 (in thousands): | |||||||||||||||||
Unrecognized income tax benefits at August 31, 2014 | $ | 5,501 | |||||||||||||||
Additions based on tax positions related to the current year | 524 | ||||||||||||||||
Additions for tax positions of prior years | 882 | ||||||||||||||||
Unrecognized income tax benefits at February 28, 2015 | $ | 6,907 | |||||||||||||||
In the normal course of business, the Company’s tax filings are subject to audit by federal, state and foreign tax authorities. At February 28, 2015, the Company remained subject to examination in the following major tax jurisdictions for the fiscal years as indicated below: | |||||||||||||||||
Major Tax Jurisdictions | Open Tax Years | ||||||||||||||||
U.S. | |||||||||||||||||
Federal | 2013 through 2015 | ||||||||||||||||
State (various) | 2011 through 2015 | ||||||||||||||||
Europe | |||||||||||||||||
France | 2012 through 2015 | ||||||||||||||||
United Kingdom | 2013 through 2015 | ||||||||||||||||
Note_16_Longterm_Debt
Note 16 - Long-term Debt | 6 Months Ended |
Feb. 28, 2015 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 16. LONG-TERM DEBT |
On February 6, 2015, the Company entered into a Credit Agreement (the “Credit Agreement”) between FactSet, as the borrower, and Bank of America, N.A., as the lender (the “Lender”). The Credit Agreement provides for a $35 million revolving credit facility (the “Revolving Credit Facility”), under which the Company may request borrowings until its maturity date of February 6, 2018. The Credit Agreement allows FactSet to arrange for additional borrowings with the Lender for an aggregate amount of up to $265 million provided that any such request for additional borrowings must be in a minimum amount of $25 million. At the Company’s option, the borrowing may be in the form of a Eurodollar rate loan, a base rate loan, or a LIBOR daily rate loan. | |
On February 6, 2015, FactSet borrowed $35 million in the form of a Eurodollar rate loan (the “Loan”) under the Revolving Credit Facility. The proceeds of the Loan made under the Credit Agreement may be used for permitted acquisitions and general corporate purposes. The Loan matures on February 6, 2018. There are no prepayment penalties in the event that the Company elects to prepay the Loan prior to its scheduled maturity date. The principal balance is payable in full on the maturity date. The $35 million borrowed under the February 6, 2015 Loan bears interest on the outstanding principal amount at a rate equal to the Eurodollar rate plus 0.50% and is reported as long-term debt within the Consolidated Balance Sheet at February 28, 2015. The Eurodollar rate is defined in the Credit Agreement as the rate per annum equal to one-month LIBOR. Interest on the Loan is payable quarterly in arrears and on the maturity date. During the second quarter of fiscal 2015, the Company paid interest of less than $0.1 million on its outstanding Loan amount. | |
In addition, no commitment fee was owed by FactSet since it borrowed the full amount of the Revolving Credit Facility on February 6, 2015. Other fees incurred by the Company, such as legal costs to draft and review the Credit Agreement, totaled less than $0.1 million and were capitalized as loan origination fees. These loan origination fees are being amortized into interest expense over the term of the Loan (three years) using the effective interest method and totaled less than $0.1 million for the quarter ended February 28, 2015. | |
The Credit Agreement contains covenants restricting certain FactSet activities, which are usual and customary for this type of loan. | |
In addition, the Credit Agreement requires that FactSet must maintain a consolidated leverage ratio, as measured by total funded debt/EBITDA below a specified level as of the end of each fiscal quarter. The Company was in compliance with all of the covenants of the Credit Agreement as of February 28, 2015. |
Note_17_Commitments_and_Contin
Note 17 - Commitments and Contingencies | 6 Months Ended | ||||
Feb. 28, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 17. 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). | |||||
Lease Commitments | |||||
At February 28, 2015 the Company leases approximately 193,000 square feet of office space at its headquarters in Norwalk, Connecticut. In addition, FactSet leases office space for its U.S. reportable segment in New York, New York; Boston, Massachusetts; Chicago, Illinois; San Francisco, California; Austin, Texas; Jackson, Wyoming; Atlanta, Georgia; Tuscaloosa, Alabama; Newark, Ridgewood and Piscataway, New Jersey; Manchester, New Hampshire; Reston, Virginia, Youngstown, Ohio, and Toronto, Canada. The Company’s European segment operates in leased office space in London, England; Paris and Avon, France; Amsterdam, the Netherlands; Frankfurt, Germany; Dubai, United Arab Emirates; Milan, Italy; Stockholm, Sweden; and Riga, Latvia. Office space in Tokyo, Japan; Hong Kong; Singapore; Mumbai, India; and Sydney, Australia are leased by FactSet for its Asia Pacific operating segment. The data content collection centers located in Hyderabad, India and Manila, the Philippines benefit all of the Companies operating segments. The leases expire on various dates through 2031. Total minimum rental payments associated with the leases are recorded as rent expense (a component of selling, general and administrative expenses) on a straight-line basis over the periods of the respective non-cancelable lease terms. | |||||
Rent expense (including operating costs) for all operating leases amounted to $9.4 million during the three months ended February 28, 2015 and 2014. Rent expense for all operating leases for the six months of fiscal 2015 and 2014 amounted to $19.1 million and $18.3 million, respectively. At February 28, 2015 and August 31, 2014, deferred rent reported within the consolidated balance sheet totaled $16.1 million and $18.3 million, of which $13.5 million and $14.9 million, respectively, was reported as a non-current liability within the line item Deferred Rent and Other Non-Current Liabilities. Approximately $1.7 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 February 28, 2015. These standby letters of credit contain covenants that, among other things, require the Company to maintain minimum levels of consolidated net worth and certain leverage and fixed charge ratios. As of February 28, 2015, FactSet was in compliance with all covenants contained in the standby letters of credit. | |||||
At February 28, 2015, FactSet leases approximately 827,500 square feet of office space, which the Company believes is adequate for its current needs and that additional space is available for lease to meet any future needs. During the three months ended February 28, 2015, FactSet did not enter into any new material lease commitments for office space. However, during the first half of fiscal 2015, FactSet entered into the following new material lease agreements: | |||||
● | Boston, Massachusetts: A new lease amendment was signed to extend and expand the Company’s existing office space in Boston by 4,809 rentable square feet. The renewal results in incremental future minimum rental payments of $6.6 million through June 2022. | ||||
● | Hyderabad, India: A new lease amendment was entered into during November 2014 to renew the Company’s existing office space in Hyderabad. The renewal results in incremental future minimum rental payments of $2.2 million over the non-cancelable lease term through November 2019. | ||||
The Company’s lease commitments for office space provide for the following future minimum rental payments under non-cancelable operating leases with remaining terms in excess of one year as of February 28, 2015 (in thousands): | |||||
Years Ended August 31, | Minimum Lease | ||||
Payments | |||||
2015 (remaining six months) | $ | 11,921 | |||
2016 | 20,626 | ||||
2017 | 23,939 | ||||
2018 | 22,699 | ||||
2019 | 21,202 | ||||
Thereafter | 96,996 | ||||
Total | $ | 197,383 | |||
Purchase Commitments with Suppliers | |||||
Purchase obligations represent payments due in future periods in respect of commitments 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 that 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. At August 31, 2014, the Company had total purchase commitments of $53.3 million. There were no material changes in the Company’s purchase commitments during the first six months of fiscal 2015. | |||||
Contingencies | |||||
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 subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. Based on currently available information at February 28, 2015, FactSet’s management does not believe that the ultimate outcome of these unresolved matters against the Company, individually or in the aggregate, is likely to have a material adverse effect on the Company’s consolidated financial position, its results of operations or its cash flows. | |||||
Income Taxes | |||||
Uncertain income tax positions are accounted for in accordance with applicable accounting guidance (see Note 15). FactSet is currently under audit by tax authorities. The Company 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, and 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. | |||||
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 should mitigate FactSet's exposure and enables FactSet to recover a portion of any future amounts paid. The Company believes the estimated fair value, prior to consideration of any potential insurance recoveries, of these indemnification obligations is not material. | |||||
Concentrations of Credit Risk | |||||
Cash equivalents - Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. | |||||
Accounts Receivable - Accounts receivable are unsecured and are derived from revenues earned from clients located around the globe. FactSet performs ongoing credit evaluations of its clients and does not require collateral from its clients. The Company maintains reserves for potential write-offs and these losses have historically been within expectations. No single client represented 10% or more of FactSet’s total revenues in any period presented. At February 28, 2015, the Company’s largest individual client accounted for 2% of total annual subscriptions and subscriptions from the ten largest clients did not surpass 15% of total annual subscriptions, consistent with August 31, 2014. At February 28, 2015 and August 31, 2014, the receivable reserve was $1.6 million and $1.7 million, respectively. | |||||
Derivative Instruments - As a result of the use of derivative instruments, the Company is exposed to counterparty credit risk. FactSet has incorporated counterparty risk into the fair value of its derivative assets and its own credit risk into the value of the Company’s derivative liabilities. FactSet calculates credit risk from observable data related to credit default swaps 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 FactSet has executed these derivative transactions. Because 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 as determined by FactSet. To mitigate counterparty credit risk, FactSet enters into contracts with large financial institutions and regularly reviews its credit exposure balances as well as the creditworthiness of the counterparties. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards or Updates Recently Adopted |
As of the beginning of fiscal 2015, FactSet implemented all 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 six months of fiscal 2015 that had a material impact on the consolidated financial statements. | |
RecentAccounting Standards or Updates Not Yet Effective | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard update that changes the criteria for reporting discontinued operations. Under the accounting standard update, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on an entity's operations and financial results when either it qualifies as held for sale, disposed of by sale, or disposed of other than by sale. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2016. | |
Revenue Recognition | |
In May 2014, the FASB issued an accounting standard update which provides clarified principles for recognizing revenue arising from contracts with clients and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue model to contracts within its scope, an entity will identify the contract with a client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2018. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. | |
Going Concern | |
In August 2014, the FASB issued an accounting standard update that requires management to evaluate and disclose whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after financial statements are issued. The evaluation and disclosure will be required to be made for both annual and interim reporting periods, if applicable, along with an evaluation as to whether management’s plans alleviate that doubt. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2017. | |
Income Statement Presentation – Extraordinary and Unusual Items | |
In January 2015, the FASB issued an accounting standard update that eliminates from GAAP the concept of extraordinary items. This accounting standard update will be effective for FactSet beginning in the first quarter of fiscal 2017, with early adoption permitted. The standard primarily involves presentation and disclosure and, therefore, is not expected to have a material impact on the Company’s financial condition, results of operations or its cash flows. | |
No other new accounting pronouncements issued or effective as of February 28, 2015 have had or are expected to have an impact on the Company’s consolidated financial statements. |
Note_4_Fair_Value_Measures_Tab
Note 4 - Fair Value Measures (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using | ||||||||||||||||
28-Feb-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Corporate money market funds (1) | $ | 79,641 | $ | 0 | $ | 0 | $ | 79,641 | |||||||||
Certificates of deposit (2) | 0 | 25,335 | 0 | 25,335 | |||||||||||||
Derivative instruments (3) | 0 | 2,151 | 0 | 2,151 | |||||||||||||
Total assets measured at fair value | $ | 79,641 | $ | 27,486 | $ | 0 | $ | 107,127 | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (3) | $ | 0 | $ | 171 | $ | 0 | $ | 171 | |||||||||
Total liabilities measured at fair value | $ | 0 | $ | 171 | $ | 0 | $ | 171 | |||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
31-Aug-14 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | |||||||||||||||||
Corporate money market funds (1) | $ | 75,363 | $ | 0 | $ | 0 | $ | 75,363 | |||||||||
Certificates of deposit (2) | 0 | 20,008 | 0 | 20,008 | |||||||||||||
Derivative instruments (3) | 0 | 1,406 | 0 | 1,406 | |||||||||||||
Total assets measured at fair value | $ | 75,363 | $ | 21,414 | $ | 0 | $ | 96,777 | |||||||||
Liabilities | |||||||||||||||||
Derivative instruments (3) | $ | 0 | $ | 591 | $ | 0 | $ | 591 | |||||||||
Total liabilities measured at fair value | $ | 0 | $ | 591 | $ | 0 | $ | 591 |
Note_5_Derivative_Instruments_
Note 5 - Derivative Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] | Gross Notional Value | Fair Value Asset (Liability) | ||||||||||||||||
Currency Hedged (in U.S. dollars) | 28-Feb-15 | 31-Aug-14 | 28-Feb-15 | 31-Aug-14 | ||||||||||||||
Indian Rupee | $ | 37,005 | $ | 38,479 | $ | 1,335 | $ | 700 | ||||||||||
Philippine Peso | 6,500 | 6,500 | 128 | 115 | ||||||||||||||
Euro | 19,877 | 0 | (171 | ) | 0 | |||||||||||||
British Pound | 30,539 | 0 | 688 | 0 | ||||||||||||||
Total | $ | 93,921 | $ | 44,979 | $ | 1,980 | $ | 815 | ||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Designation of Derivatives | Balance Sheet Location | 28-Feb-15 | 31-Aug-14 | ||||||||||||||
Derivatives designated as hedging instruments | Assets: Foreign Currency Forward Contracts | |||||||||||||||||
Prepaid expenses and other current assets | $ | 1,377 | $ | 114 | ||||||||||||||
Other assets | $ | 774 | $ | 1,292 | ||||||||||||||
Liabilities: Foreign Currency Forward Contracts | ||||||||||||||||||
Accounts payable and accrued expenses | $ | 171 | $ | 591 | ||||||||||||||
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gain Recognized | Location of Gain | (Loss) Gain Reclassified | |||||||||||||||
in AOCL on Derivatives | Reclassified from AOCL into Income | from AOCL into Income | ||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | (Effective Portion) | 2015 | 2014 | |||||||||||||
Foreign currency forward contracts | $ | 1,192 | $ | 761 | SG&A | $ | (152 | ) | $ | 143 | ||||||||
Gain Recognized | Location of (Loss) | (Loss) Reclassified | ||||||||||||||||
in AOCL on Derivatives | Reclassified from AOCL into Income | from AOCL into Income | ||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2015 | 2014 | (Effective Portion) | 2015 | 2014 | |||||||||||||
Foreign currency forward contracts | $ | 974 | $ | 4,988 | SG&A | $ | (191 | ) | $ | (257 | ) | |||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives Offset in Consolidated Balance Sheets | |||||||||||||||||
28-Feb-15 | Gross Derivative | Gross Derivative Amounts Offset in Balance Sheet | Net | |||||||||||||||
Amounts | Amounts | |||||||||||||||||
Fair value of assets | $ | 2,477 | $ | (326 | ) | $ | 2,151 | |||||||||||
Fair value of liabilities | (497 | ) | 326 | (171 | ) | |||||||||||||
Total | $ | 1,980 | $ | 0 | $ | 1,980 | ||||||||||||
Derivatives Offset in Consolidated Balance Sheets | ||||||||||||||||||
31-Aug-14 | Gross Derivative | Gross Derivative Amounts Offset in Balance Sheet | Net | |||||||||||||||
Amounts | Amounts | |||||||||||||||||
Fair value of assets | $ | 1,406 | $ | 0 | $ | 1,406 | ||||||||||||
Fair value of liabilities | (626 | ) | 35 | (591 | ) | |||||||||||||
Total | $ | 780 | $ | 35 | $ | 815 |
Note_6_Other_Comprehensive_Inc1
Note 6 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Three Months Ended | Three Months Ended | |||||||||||||||
28-Feb-15 | 28-Feb-14 | ||||||||||||||||
Pre-tax | Net of tax | Pre-tax | Net of tax | ||||||||||||||
Foreign currency translation adjustments | $ | (8,011 | ) | $ | (8,011 | ) | $ | 3,506 | $ | 3,506 | |||||||
Realized loss (gain) on cash flow hedges reclassified to earnings (1) | 152 | 95 | (143 | ) | (89 | ) | |||||||||||
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 1,192 | 748 | 761 | 476 | |||||||||||||
Other comprehensive income (loss) | $ | (6,667 | ) | $ | (7,168 | ) | $ | 4,124 | $ | 3,893 | |||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
28-Feb-15 | 28-Feb-14 | ||||||||||||||||
Pre-tax | Net of tax | Pre-tax | Net of tax | ||||||||||||||
Foreign currency translation adjustments | $ | (21,566 | ) | $ | (21,566 | ) | $ | 11,654 | $ | 11,654 | |||||||
Realized loss on cash flow hedges reclassified to earnings (1) | 191 | 120 | 257 | 161 | |||||||||||||
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 974 | 611 | 4,988 | 3,123 | |||||||||||||
Other comprehensive (loss) income | $ | (20,401 | ) | $ | (20,835 | ) | $ | 16,899 | $ | 14,938 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | 28-Feb-15 | 31-Aug-14 | |||||||||||||||
Accumulated unrealized gains on cash flow hedges, net of tax | $ | 1,241 | $ | 510 | |||||||||||||
Accumulated foreign currency translation adjustments | (39,997 | ) | (18,431 | ) | |||||||||||||
Total accumulated other comprehensive loss | $ | (38,756 | ) | $ | (17,921 | ) |
Note_7_Segment_Information_Tab
Note 7 - Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the three months ended February 28, 2015 | U.S. | Europe | Asia Pacific | Total | ||||||||||||
Revenues from clients | $ | 166,539 | $ | 62,554 | $ | 18,699 | $ | 247,792 | |||||||||
Segment operating profit | 42,503 | 27,899 | 10,246 | 80,648 | |||||||||||||
Total assets | 410,524 | 236,313 | 62,735 | 709,572 | |||||||||||||
Capital expenditures | 6,506 | 123 | 321 | 6,950 | |||||||||||||
For the three months ended February 28, 2014 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 154,266 | $ | 56,023 | $ | 16,645 | $ | 226,934 | |||||||||
Segment operating profit | 41,935 | 24,178 | 8,941 | 75,054 | |||||||||||||
Total assets | 378,440 | 218,671 | 56,854 | 653,965 | |||||||||||||
Capital expenditures | 2,186 | 106 | 302 | 2,594 | |||||||||||||
For the six months ended February 28, 2015 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 330,201 | $ | 123,164 | $ | 37,103 | $ | 490,468 | |||||||||
Segment operating profit | 86,938 | 54,488 | 19,482 | 160,908 | |||||||||||||
Capital expenditures | 10,831 | 208 | 725 | 11,764 | |||||||||||||
For the six months ended February 28, 2014 | U.S. | Europe | Asia Pacific | Total | |||||||||||||
Revenues from clients | $ | 307,178 | $ | 109,728 | $ | 33,003 | $ | 449,909 | |||||||||
Segment operating profit | 82,725 | 50,423 | 16,647 | 149,795 | |||||||||||||
Capital expenditures | 7,430 | 192 | 410 | 8,032 |
Note_8_Business_Combinations_T
Note 8 - Business Combinations (Tables) | 6 Months Ended | ||||
Feb. 28, 2015 | |||||
Business Combinations [Abstract] | |||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration | $ | 32,000 | ||
Fair value of FactSet stock issued | 2,990 | ||||
Adjustment for changes in working capital | (374 | ) | |||
Total preliminary purchase price | $ | 34,616 | |||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Tangible assets acquired | $ | 2,469 | ||
Amortizable intangible assets | |||||
Software technology | 4,728 | ||||
Client relationships | 3,089 | ||||
Non-compete agreements | 277 | ||||
Trade name | 127 | ||||
Goodwill | 29,624 | ||||
Total assets acquired | 40,314 | ||||
Liabilities assumed | (5,698 | ) | |||
Net assets acquired | $ | 34,616 |
Note_9_Goodwill_Tables
Note 9 - Goodwill (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||
Schedule of Goodwill [Table Text Block] | U.S. | Europe | Asia | Total | |||||||||||||
Pacific | |||||||||||||||||
Balance at August 31, 2014 | $ | 179,434 | $ | 103,032 | $ | 3,142 | $ | 285,608 | |||||||||
Goodwill acquired during the period | 29,624 | 0 | 0 | 29,624 | |||||||||||||
Foreign currency translations | 0 | (8,927 | ) | (412 | ) | (9,339 | ) | ||||||||||
Balance at February 28, 2015 | $ | 209,058 | $ | 94,105 | $ | 2,730 | $ | 305,893 |
Note_10_Intangible_Assets_Tabl
Note 10 - Intangible Assets (Tables) | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | At February 28, 2015 | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Data content | $ | 53,039 | $ | 28,482 | $ | 24,557 | |||||||
Client relationships | 27,861 | 17,383 | 10,478 | ||||||||||
Software technology | 26,877 | 19,912 | 6,965 | ||||||||||
Trade names | 1,809 | 1,072 | 737 | ||||||||||
Non-compete agreements | 2,732 | 2,156 | 576 | ||||||||||
Total | $ | 112,318 | $ | 69,005 | $ | 43,313 | |||||||
At August 31, 2014 | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Data content | $ | 56,974 | $ | 27,644 | $ | 29,330 | |||||||
Client relationships | 25,821 | 17,443 | 8,378 | ||||||||||
Software technology | 22,881 | 20,089 | 2,792 | ||||||||||
Non-compete agreements | 2,465 | 1,881 | 584 | ||||||||||
Trade names | 1,729 | 958 | 771 | ||||||||||
Total | $ | 109,870 | $ | 68,015 | $ | 41,855 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year | Estimated Amortization | |||||||||||
Expense | |||||||||||||
2015 (remaining six months) | $ | 4,023 | |||||||||||
2016 | 6,895 | ||||||||||||
2017 | 6,813 | ||||||||||||
2018 | 5,688 | ||||||||||||
2019 | 4,376 | ||||||||||||
Thereafter | 15,518 | ||||||||||||
Total | $ | 43,313 |
Note_11_Common_Stock_and_Earni1
Note 11 - Common Stock and Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Stock by Class [Table Text Block] | Six Months Ended | ||||||||||||
February 28, | |||||||||||||
2015 | 2014 | ||||||||||||
Balance at September 1 | 41,793 | 43,324 | |||||||||||
Common stock issued for employee stock plans | 604 | 389 | |||||||||||
Stock issued for acquisition of a business | 20 | 0 | |||||||||||
Repurchase of common stock from employees* | (17 | ) | (21 | ) | |||||||||
Repurchase of common stock under the share repurchase program | (770 | ) | (1,330 | ) | |||||||||
Balance at February 28, 2015 and 2014, respectively | 41,630 | 42,362 | |||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | Weighted | ||||||||||||
Average | |||||||||||||
Net Income | Common Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
For the three months ended February 28, 2015 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 61,598 | 41,630 | $ | 1.48 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 676 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 61,598 | 42,306 | $ | 1.46 | ||||||||
For the three months ended February 28, 2014 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 52,426 | 42,547 | $ | 1.23 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 560 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 52,426 | 43,107 | $ | 1.22 | ||||||||
For the six months ended February 28, 2015 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 117,458 | 41,658 | $ | 2.82 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 666 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 117,458 | 42,324 | $ | 2.78 | ||||||||
For the six months ended February 28, 2014 | |||||||||||||
Basic EPS | |||||||||||||
Income available to common stockholders | $ | 104,604 | 42,840 | $ | 2.44 | ||||||||
Diluted EPS | |||||||||||||
Dilutive effect of stock options and restricted stock | 592 | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 104,604 | 43,432 | $ | 2.41 |
Note_12_Stockholders_Equity_Ta
Note 12 - Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Dividends Declared [Table Text Block] | Declaration Date | Dividends Per | Type | Record Date | Total $ Amount | Payment Date | |||||||
Share of | (in thousands) | ||||||||||||
Common Stock | |||||||||||||
11-Feb-15 | $ | 0.39 | Regular (cash) | 27-Feb-15 | $ | 16,236 | 17-Mar-15 | ||||||
12-Nov-14 | $ | 0.39 | Regular (cash) | 28-Nov-14 | $ | 16,216 | 16-Dec-14 | ||||||
14-Aug-14 | $ | 0.39 | Regular (cash) | 29-Aug-14 | $ | 16,299 | 16-Sep-14 | ||||||
5-May-14 | $ | 0.39 | Regular (cash) | 30-May-14 | $ | 16,386 | 17-Jun-14 | ||||||
11-Feb-14 | $ | 0.35 | Regular (cash) | 28-Feb-14 | $ | 14,827 | 18-Mar-14 | ||||||
14-Nov-13 | $ | 0.35 | Regular (cash) | 29-Nov-13 | $ | 15,046 | 17-Dec-13 | ||||||
15-Aug-13 | $ | 0.35 | Regular (cash) | 31-Aug-13 | $ | 15,164 | 17-Sep-13 |
Note_13_Employee_Stock_Option_1
Note 13 - Employee Stock Option and Retirement Plans (Tables) | 6 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | Number | Weighted Average | |||||||
Outstanding | Exercise Price Per Share | ||||||||
Balance at August 31, 2014 | 3,482 | $ | 79.67 | ||||||
Granted – non-performance based | 463 | 131.31 | |||||||
Exercised | (114 | ) | 73.53 | ||||||
Forfeited | (33 | ) | 98.28 | ||||||
Balance at November 30, 2014 | 3,798 | $ | 85.98 | ||||||
Granted – non-performance-based | 25 | 139.02 | |||||||
Granted – performance-based | 138 | 148.52 | |||||||
Granted – non-employee Directors grant | 14 | 138.48 | |||||||
Exercised | (403 | ) | 61.63 | ||||||
Forfeited | (32 | ) | 97.08 | ||||||
Balance at February 28, 2015 | 3,540 | $ | 91.67 | ||||||
Schedule of Share-based Compensation, Vesting Percentage and Related Expenses [Table Text Block] | Vesting | Cumulative | Remaining Expense | ||||||
Percentage | Catch-up Adjustment* | to be Recognized | |||||||
Third 20% | $ | 0 | $ | 774 | |||||
Fourth 20% | $ | 948 | $ | 1,426 | |||||
Fifth 20% | $ | 2,274 | $ | 1,701 | |||||
Vesting | Cumulative | Remaining Expense | |||||||
Percentage | Catch-up Adjustment* | to be Recognized | |||||||
10% | $ | (38 | ) | $ | 0 | ||||
40% (current expectation) | $ | 0 | $ | 2,363 | |||||
70% | $ | 66 | $ | 4,134 | |||||
100% | $ | 94 | $ | 5,906 | |||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number | Weighted Average | |||||||
Outstanding | Grant Date Fair | ||||||||
Value Per Award | |||||||||
Balance at August 31, 2014 | 368 | $ | 89.77 | ||||||
Granted | 10 | $ | 127.58 | ||||||
Vested* | (53 | ) | $ | 62.85 | |||||
Canceled/forfeited | (1 | ) | $ | 93.76 | |||||
Balance at November 30, 2014 | 324 | $ | 95.4 | ||||||
Granted | 38 | $ | 137.83 | ||||||
Canceled/forfeited | (5 | ) | $ | 95.43 | |||||
Balance at February 28, 2015 | 357 | $ | 99.85 | ||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Share-based Awards | Share-based Awards | |||||||
Available for Grant under | Available for Grant under | ||||||||
the Employee Option Plan | the Non-Employee Directors Plan | ||||||||
Balance at August 31, 2014 | 3,222 | 102 | |||||||
Granted – non performance-based options | (463 | ) | 0 | ||||||
Granted – performance-based options | 0 | 0 | |||||||
Restricted stock awards granted* | (26 | ) | 0 | ||||||
Share-based awards canceled/forfeited* | 35 | 0 | |||||||
Balance at November 30, 2014 | 2,768 | 102 | |||||||
Granted – non performance-based options | (25 | ) | (14 | ) | |||||
Granted – performance-based options | (138 | ) | 0 | ||||||
Restricted stock awards granted* | (95 | ) | 0 | ||||||
Share-based awards canceled/forfeited* | 44 | 0 | |||||||
Balance at February 28, 2015 | 2,554 | 88 |
Note_14_Stockbased_Compensatio1
Note 14 - Stock-based Compensation (Tables) | 6 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Note 14 - Stock-based Compensation (Tables) [Line Items] | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended | Six Months Ended | ||||||||
February 28, | February 28, | |||||||||
2015 | 2014 | 2015 | 2014 | |||||||
Term structure of risk-free interest rate | 0.06% - 2.34% | 0.01% - 2.48% | 0.06% - 2.34% | 0.01% - 2.61% | ||||||
Expected life (in years) | 8.3 | 7.6 | 8.2 | 7.6 | ||||||
Term structure of volatility | 21% - 31% | 23% - 32% | 21% - 31% | 23% - 33% | ||||||
Dividend yield | 1.29% | 1.35% | 1.35% | 1.35% | ||||||
Weighted average estimated fair value | $43.05 | $29.14 | $39.07 | $29.64 | ||||||
Weighted average exercise price | $147.05 | $106.03 | $135.40 | $106.69 | ||||||
Fair value as a percentage of exercise price | 29.30% | 27.50% | 28.90% | 27.80% | ||||||
Non-Employee Directors' Stock Option Plan [Member] | ||||||||||
Note 14 - Stock-based Compensation (Tables) [Line Items] | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Risk-free interest rate | 1.45 | % | |||||||
Expected life (in years) | 5.4 | |||||||||
Expected volatility | 23.5 | % | ||||||||
Dividend yield | 1.3 | % | ||||||||
Risk-free interest rate | 1.66 | % | ||||||||
Expected life (in years) | 5.4 | |||||||||
Expected volatility | 28.9 | % | ||||||||
Dividend yield | 1.35 | % | ||||||||
2008 Employee Stock Purchase Plan [Member] | ||||||||||
Note 14 - Stock-based Compensation (Tables) [Line Items] | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended | |||||||||
February 28, | ||||||||||
2015 | 2014 | |||||||||
Risk-free interest rate | 0.03 | % | 0.05 | % | ||||||
Expected life (in months) | 3 | 3 | ||||||||
Expected volatility | 8.1 | % | 10.3 | % | ||||||
Dividend yield | 1.13 | % | 1.23 | % | ||||||
Six Months Ended | ||||||||||
February 28, | ||||||||||
2015 | 2014 | |||||||||
Risk-free interest rate | 0.02 | % | 0.05 | % | ||||||
Expected life (in months) | 3 | 3 | ||||||||
Expected volatility | 8.3 | % | 9.6 | % | ||||||
Dividend yield | 1.17 | % | 1.29 | % |
Note_15_Income_Taxes_Tables
Note 15 - Income Taxes (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Three Months Ended | Six Months Ended | |||||||||||||||
February 28, | February 28, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
U.S. operations | $ | 64,881 | $ | 62,429 | $ | 130,839 | $ | 122,688 | |||||||||
Non-U.S. operations | 16,301 | 12,969 | 31,033 | 27,792 | |||||||||||||
Income before income taxes | $ | 81,182 | $ | 75,398 | $ | 161,872 | $ | 150,480 | |||||||||
U.S. operations | $ | 15,157 | $ | 20,275 | $ | 40,817 | $ | 39,929 | |||||||||
Non-U.S. operations | 4,427 | 2,697 | 3,597 | 5,947 | |||||||||||||
Total provision for income taxes | $ | 19,584 | $ | 22,972 | $ | 44,414 | $ | 45,876 | |||||||||
Effective tax rate | 24.1%* | 30.5 | % | 27.4 | % | 30.5 | % | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Six Months Ended | ||||||||||||||||
February 28, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Current | |||||||||||||||||
U.S. Federal | $ | 34,492 | $ | 38,630 | |||||||||||||
U.S. state and local | 2,601 | 2,573 | |||||||||||||||
Non-U.S. | 5,186 | 6,008 | |||||||||||||||
Total current taxes | $ | 42,279 | $ | 47,211 | |||||||||||||
Deferred | |||||||||||||||||
U.S. Federal | $ | 3,561 | $ | (1,205 | ) | ||||||||||||
U.S. state and local | 163 | (69 | ) | ||||||||||||||
Non-U.S. | (1,589 | ) | (61 | ) | |||||||||||||
Total deferred taxes | $ | 2,135 | $ | (1,335 | ) | ||||||||||||
Total provision for income taxes | $ | 44,414 | $ | 45,876 | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 28-Feb-15 | 31-Aug-14 | |||||||||||||||
Deferred tax assets | |||||||||||||||||
Current | |||||||||||||||||
Receivable reserve | $ | 592 | $ | 597 | |||||||||||||
Deferred rent | 807 | 1,067 | |||||||||||||||
Other | 218 | 177 | |||||||||||||||
Net current deferred tax assets | $ | 1,617 | $ | 1,841 | |||||||||||||
Non-current | |||||||||||||||||
Depreciation on property, equipment and leasehold improvements | $ | 9,657 | $ | 9,831 | |||||||||||||
Deferred rent | 3,459 | 3,572 | |||||||||||||||
Stock-based compensation | 18,319 | 18,160 | |||||||||||||||
Purchased intangible assets, including acquired technology | (16,416 | ) | (10,750 | ) | |||||||||||||
Other | 1,763 | 1,564 | |||||||||||||||
Net non-current deferred tax assets | $ | 16,782 | $ | 22,377 | |||||||||||||
Total deferred tax assets | $ | 18,399 | $ | 24,218 | |||||||||||||
28-Feb-15 | 31-Aug-14 | ||||||||||||||||
Deferred tax liabilities (current) | |||||||||||||||||
Other | $ | 1,047 | $ | 0 | |||||||||||||
Net current deferred tax liabilities | $ | 1,047 | $ | 0 | |||||||||||||
Deferred tax liabilities (non-current) | |||||||||||||||||
Purchased intangible assets, including acquired technology | $ | 1,992 | $ | 3,478 | |||||||||||||
Stock-based compensation | 0 | (860 | ) | ||||||||||||||
Depreciation on property, equipment and leasehold improvements | (182 | ) | 0 | ||||||||||||||
Other | 287 | 303 | |||||||||||||||
Net non-current deferred tax liabilities | $ | 2,097 | $ | 2,921 | |||||||||||||
Total deferred tax liabilities | $ | 3,144 | $ | 2,921 | |||||||||||||
Summary of Income Tax Contingencies [Table Text Block] | Unrecognized income tax benefits at August 31, 2014 | $ | 5,501 | ||||||||||||||
Additions based on tax positions related to the current year | 524 | ||||||||||||||||
Additions for tax positions of prior years | 882 | ||||||||||||||||
Unrecognized income tax benefits at February 28, 2015 | $ | 6,907 | |||||||||||||||
Summary of Income Tax Examinations [Table Text Block] | Major Tax Jurisdictions | Open Tax Years | |||||||||||||||
U.S. | |||||||||||||||||
Federal | 2013 through 2015 | ||||||||||||||||
State (various) | 2011 through 2015 | ||||||||||||||||
Europe | |||||||||||||||||
France | 2012 through 2015 | ||||||||||||||||
United Kingdom | 2013 through 2015 |
Note_17_Commitments_and_Contin1
Note 17 - Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Feb. 28, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years Ended August 31, | Minimum Lease | |||
Payments | |||||
2015 (remaining six months) | $ | 11,921 | |||
2016 | 20,626 | ||||
2017 | 23,939 | ||||
2018 | 22,699 | ||||
2019 | 21,202 | ||||
Thereafter | 96,996 | ||||
Total | $ | 197,383 |
Note_4_Fair_Value_Measures_Det
Note 4 - Fair Value Measures (Details) (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
Note 4 - Fair Value Measures (Details) [Line Items] | ||
Assets, Fair Value Disclosure | $107,127,000 | $96,777,000 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 171,000 | 591,000 |
Long-term Debt | 35,000,000 | 0 |
Long-term Debt, Fair Value | 35,000,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Note 4 - Fair Value Measures (Details) [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $0 | $0 |
Note_4_Fair_Value_Measures_Det1
Note 4 - Fair Value Measures (Details) - Assets and Liabilities Measured at Fair Value (USD $) | Feb. 28, 2015 | Aug. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Note 4 - Fair Value Measures (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ||||
Corporate money market funds | $79,641 | [1] | $75,363 | [1] |
Certificates of deposit | 25,335 | [2] | 20,008 | [2] |
Derivative instruments | 2,151 | [3] | 1,406 | [3] |
Total assets measured at fair value | 107,127 | 96,777 | ||
Derivative instruments | 171 | [3] | 591 | [3] |
Total liabilities measured at fair value | 171 | 591 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Note 4 - Fair Value Measures (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ||||
Corporate money market funds | 79,641 | [1] | 75,363 | [1] |
Certificates of deposit | 0 | [2] | 0 | [2] |
Derivative instruments | 0 | [3] | 0 | [3] |
Total assets measured at fair value | 79,641 | 75,363 | ||
Derivative instruments | 0 | [3] | 0 | [3] |
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Note 4 - Fair Value Measures (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ||||
Corporate money market funds | 0 | [1] | 0 | [1] |
Certificates of deposit | 25,335 | [2] | 20,008 | [2] |
Derivative instruments | 2,151 | [3] | 1,406 | [3] |
Total assets measured at fair value | 27,486 | 21,414 | ||
Derivative instruments | 171 | [3] | 591 | [3] |
Total liabilities measured at fair value | 171 | 591 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Note 4 - Fair Value Measures (Details) - Assets and Liabilities Measured at Fair Value [Line Items] | ||||
Corporate money market funds | 0 | [1] | 0 | [1] |
Certificates of deposit | 0 | [2] | 0 | [2] |
Derivative instruments | 0 | [3] | 0 | [3] |
Total assets measured at fair value | 0 | 0 | ||
Derivative instruments | 0 | [3] | 0 | [3] |
Total liabilities measured at fair value | $0 | $0 | ||
[1] | The Company's corporate money market funds are traded in an active market and the net asset value of each fund on the last day of the quarter is used to determine its fair value. As such, the Company's corporate money market funds are classified as Level 1 and included in cash and cash equivalents on the consolidated balance sheet. | |||
[2] | The Company's certificates of deposit are held to maturity are not debt securities and are classified as Level 2. These certificates of deposit have original maturities greater than three months, but less than one year and, as such, are classified as investments (short-term) on the Company's consolidated balance sheet. | |||
[3] | The Company utilizes the income approach to measure fair value for its derivative instruments (foreign exchange forward contracts). The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads and therefore are classified as Level 2. |
Note_5_Derivative_Instruments_1
Note 5 - Derivative Instruments (Details) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | |
USD ($) | USD ($) | USD ($) | USD ($) | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Through the Fourth Quarter of Fiscal 2016 [Member] | Through the Second Quarter of Fiscal 2017 [Member] | Through the Fourth Quarter of Fiscal 2015 [Member] | Through the Second Quarter of Fiscal 2016 [Member] | Through the Second Quarter of Fiscal 2016 [Member] | |
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | India, Rupees | India, Rupees | Philippines, Pesos | United Kingdom, Pounds | Euro Member Countries, Euro | |||||
India, Rupees | India, Rupees | Philippines, Pesos | Philippines, Pesos | United Kingdom, Pounds | United Kingdom, Pounds | Euro Member Countries, Euro | Euro Member Countries, Euro | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | ||||||||||
Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | USD ($) | EUR (€) | GBP (£) | INR | USD ($) | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||
Note 5 - Derivative Instruments (Details) [Line Items] | ||||||||||||||||||||||
Gain (Loss) on Discontinuation of Foreign Currency Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $0 | $0 | $0 | $0 | ||||||||||||||||||
Percent of Foreign Exchange Contracts Hedged | 75.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||||||
Derivative Asset, Notional Amount | 37,005,000 | 38,479,000 | 6,500,000 | 6,500,000 | 30,539,000 | 0 | 19,877,000 | 0 | 93,921,000 | 17,600,000 | 20,300,000 | 2,500,000,000 | 44,979,000 | |||||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $1,200,000 |
Note_5_Derivative_Instruments_2
Note 5 - Derivative Instruments (Details) - Hedging Positions and Corresponding Fair Values (Foreign Exchange Contract [Member]) | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | USD ($) | USD ($) |
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||
India, Rupees | India, Rupees | Philippines, Pesos | Philippines, Pesos | Euro Member Countries, Euro | Euro Member Countries, Euro | United Kingdom, Pounds | United Kingdom, Pounds | USD ($) | EUR (€) | GBP (£) | INR | USD ($) | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Note 5 - Derivative Instruments (Details) - Hedging Positions and Corresponding Fair Values [Line Items] | |||||||||||||||
Gross Notional Value | $37,005 | $38,479 | $6,500 | $6,500 | $19,877 | $0 | $30,539 | $0 | $93,921 | € 17,600 | £ 20,300 | 2,500,000 | $44,979 | ||
Fair Value Asset (Liability) | $1,335 | $700 | $128 | $115 | ($171) | $0 | $688 | $0 | $1,980 | $815 | $1,980 | $815 |
Note_5_Derivative_Instruments_3
Note 5 - Derivative Instruments (Details) - Fair Value Amounts of Derivative Instruments and Gains (Foreign Exchange Contract [Member], USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives designated as hedging instruments Assets: Foreign Currency Forward Contracts | ||
Derivatives Assets designated as hedging instruments | $2,477 | $1,406 |
Liabilities: Foreign Currency Forward Contracts | ||
Accounts payable and accrued expenses | 497 | 626 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives designated as hedging instruments Assets: Foreign Currency Forward Contracts | ||
Derivatives Assets designated as hedging instruments | 1,377 | 114 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Derivatives designated as hedging instruments Assets: Foreign Currency Forward Contracts | ||
Derivatives Assets designated as hedging instruments | 774 | 1,292 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Liabilities: Foreign Currency Forward Contracts | ||
Accounts payable and accrued expenses | $171 | $591 |
Note_5_Derivative_Instruments_4
Note 5 - Derivative Instruments (Details) - Derivatives in Cash Flow Hedging Relationships (Selling, General and Administrative Expenses [Member], Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], Foreign Exchange Contract [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Selling, General and Administrative Expenses [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Note 5 - Derivative Instruments (Details) - Derivatives in Cash Flow Hedging Relationships [Line Items] | ||||
Foreign currency forward contracts | $1,192 | $761 | $974 | $4,988 |
Foreign currency forward contracts | ($152) | $143 | ($191) | ($257) |
Note_5_Derivative_Instruments_5
Note 5 - Derivative Instruments (Details) - Offsetting of Derivative Instruments (USD $) | Feb. 28, 2015 | Aug. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Net derivative asset amounts | $2,151 | [1] | $1,406 | [1] |
Net derivative liability amounts | -171 | [1] | -591 | [1] |
Foreign Exchange Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Gross derivative asset amounts | 2,477 | 1,406 | ||
Gross derivative asset amounts offset in balance sheet | -326 | 0 | ||
Net derivative asset amounts | 2,151 | 1,406 | ||
Gross derivative liability amounts | -497 | -626 | ||
Gross derivative liability amounts offset in balance sheet | 326 | 35 | ||
Net derivative liability amounts | -171 | -591 | ||
Gross derivative amounts | 1,980 | 780 | ||
Gross derivative amounts offset in balance sheet | 0 | 35 | ||
Net derivative amounts | $1,980 | $815 | ||
[1] | The Company utilizes the income approach to measure fair value for its derivative instruments (foreign exchange forward contracts). The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads and therefore are classified as Level 2. |
Note_6_Other_Comprehensive_Inc2
Note 6 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Details) - Components of Other Comprehensive Income (Loss) and Amounts Reclassified Out of Accumulated Other Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | ||||
Components of Other Comprehensive Income (Loss) and Amounts Reclassified Out of Accumulated Other Comprehensive Loss [Abstract] | ||||||||
Foreign currency translation adjustments | ($8,011) | $3,506 | ($21,566) | $11,654 | ||||
Foreign currency translation adjustments | -8,011 | 3,506 | -21,566 | 11,654 | ||||
Realized loss (gain) on cash flow hedges reclassified to earnings (1) | 152 | [1] | -143 | [1] | 191 | [1] | 257 | [1] |
Realized loss (gain) on cash flow hedges reclassified to earnings (1) | 95 | [1] | -89 | [1] | 120 | [1] | 161 | [1] |
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 1,192 | 761 | 974 | 4,988 | ||||
Unrealized gain on cash flow hedges recognized in accumulated other comprehensive loss | 748 | 476 | 611 | 3,123 | ||||
Other comprehensive income (loss) | -6,667 | 4,124 | -20,401 | 16,899 | ||||
Other comprehensive income (loss) | ($7,168) | $3,893 | ($20,835) | $14,938 | ||||
[1] | Reclassified to Selling, General and Administrative Expenses |
Note_6_Other_Comprehensive_Inc3
Note 6 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Details) - The Components of Accumulated Other Comprehensive Loss (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
The Components of Accumulated Other Comprehensive Loss [Abstract] | ||
Accumulated unrealized gains on cash flow hedges, net of tax | $1,241 | $510 |
Accumulated foreign currency translation adjustments | -39,997 | -18,431 |
Total accumulated other comprehensive loss | ($38,756) | ($17,921) |
Note_7_Segment_Information_Det
Note 7 - Segment Information (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Aug. 31, 2014 |
Note 7 - Segment Information (Details) [Line Items] | ||
Number of Operating Segments | 3 | |
Goodwill (in Dollars) | $305,893 | $285,608 |
UNITED STATES | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Goodwill (in Dollars) | 209,058 | 179,434 |
Goodwill Percentage Per Segment | 68.00% | |
Europe [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Goodwill (in Dollars) | 94,105 | 103,032 |
Goodwill Percentage Per Segment | 31.00% | |
Asia Pacific [Member] | ||
Note 7 - Segment Information (Details) [Line Items] | ||
Goodwill (in Dollars) | $2,730 | $3,142 |
Goodwill Percentage Per Segment | 1.00% |
Note_7_Segment_Information_Det1
Note 7 - Segment Information (Details) - Results of Operations (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 |
Segment Reporting Information [Line Items] | |||||
Revenues from clients | $247,792 | $226,934 | $490,468 | $449,909 | |
Segment operating profit | 80,648 | 75,054 | 160,908 | 149,795 | |
Total assets | 709,572 | 653,965 | 709,572 | 653,965 | 663,212 |
Capital expenditures | 6,950 | 2,594 | 11,764 | 8,032 | |
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from clients | 166,539 | 154,266 | 330,201 | 307,178 | |
Segment operating profit | 42,503 | 41,935 | 86,938 | 82,725 | |
Total assets | 410,524 | 378,440 | 410,524 | 378,440 | |
Capital expenditures | 6,506 | 2,186 | 10,831 | 7,430 | |
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from clients | 62,554 | 56,023 | 123,164 | 109,728 | |
Segment operating profit | 27,899 | 24,178 | 54,488 | 50,423 | |
Total assets | 236,313 | 218,671 | 236,313 | 218,671 | |
Capital expenditures | 123 | 106 | 208 | 192 | |
Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from clients | 18,699 | 16,645 | 37,103 | 33,003 | |
Segment operating profit | 10,246 | 8,941 | 19,482 | 16,647 | |
Total assets | 62,735 | 56,854 | 62,735 | 56,854 | |
Capital expenditures | $321 | $302 | $725 | $410 |
Note_8_Business_Combinations_D
Note 8 - Business Combinations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Feb. 06, 2015 | Feb. 28, 2015 | Feb. 28, 2014 | Sep. 01, 2013 | Aug. 31, 2014 | |
Note 8 - Business Combinations (Details) [Line Items] | |||||
Goodwill | $305,893,000 | $285,608,000 | |||
Computer Software, Intangible Asset [Member] | Code Red, Inc. [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | ||||
Customer Relationships [Member] | Code Red, Inc. [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||||
Noncompete Agreements [Member] | Code Red, Inc. [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Trade Names [Member] | Code Red, Inc. [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Code Red, Inc. [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Business Combination, Consideration Transferred | 34,616,000 | ||||
Number of Employees | 32 | ||||
Subscription and Circulation Revenue | 9,300,000 | ||||
Finite-lived Intangible Assets Acquired | 8,200,000 | 8,200,000 | |||
Goodwill | 29,600,000 | 29,624,000 | |||
Matrix Data Limited [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Business Combination, Consideration Transferred | 31,800,000 | ||||
Subscription and Circulation Revenue | 7,000,000 | ||||
Revere Data, LLC [Member] | |||||
Note 8 - Business Combinations (Details) [Line Items] | |||||
Business Combination, Consideration Transferred | 15,300,000 | ||||
Subscription and Circulation Revenue | $4,900,000 |
Note_8_Business_Combinations_D1
Note 8 - Business Combinations (Details) - Purchase Price of Acquisition (Code Red, Inc. [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Feb. 06, 2015 |
Code Red, Inc. [Member] | |
Business Acquisition [Line Items] | |
Cash consideration | $32,000 |
Fair value of FactSet stock issued | 2,990 |
Adjustment for changes in working capital | -374 |
Total preliminary purchase price | $34,616 |
Note_8_Business_Combinations_D2
Note 8 - Business Combinations (Details) - Assets Acquired (USD $) | Feb. 28, 2015 | Aug. 31, 2014 | Feb. 06, 2015 |
In Thousands, unless otherwise specified | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Goodwill | $305,893 | $285,608 | |
Computer Software, Intangible Asset [Member] | Code Red, Inc. [Member] | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Amortizable Intangible Assets | 4,728 | ||
Customer Relationships [Member] | Code Red, Inc. [Member] | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Amortizable Intangible Assets | 3,089 | ||
Noncompete Agreements [Member] | Code Red, Inc. [Member] | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Amortizable Intangible Assets | 277 | ||
Trade Names [Member] | Code Red, Inc. [Member] | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Amortizable Intangible Assets | 127 | ||
Code Red, Inc. [Member] | |||
Note 8 - Business Combinations (Details) - Assets Acquired [Line Items] | |||
Tangible assets acquired | 2,469 | ||
Goodwill | 29,624 | 29,600 | |
Total assets acquired | 40,314 | ||
Liabilities assumed | -5,698 | ||
Net assets acquired | $34,616 |
Note_9_Goodwill_Details
Note 9 - Goodwill (Details) (USD $) | 0 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Feb. 06, 2015 | Feb. 28, 2015 |
Note 9 - Goodwill (Details) [Line Items] | ||
Number of Reportable Segments | 3 | |
Code Red, Inc. [Member] | ||
Note 9 - Goodwill (Details) [Line Items] | ||
Goodwill, Acquired During Period | $29,600 | $29,624 |
Note_9_Goodwill_Details_Change
Note 9 - Goodwill (Details) - Changes in the Carrying Amount of Goodwill by Segment (USD $) | 0 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Feb. 06, 2015 | Feb. 28, 2015 |
Goodwill [Line Items] | ||
Balance at August 31, 2014 | $285,608 | |
Balance at February 28, 2015 | 305,893 | |
Foreign currency translations | -9,339 | |
Code Red, Inc. [Member] | UNITED STATES | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 29,624 | |
Code Red, Inc. [Member] | Europe [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Code Red, Inc. [Member] | Asia Pacific [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Code Red, Inc. [Member] | ||
Goodwill [Line Items] | ||
Balance at August 31, 2014 | 29,600 | |
Balance at February 28, 2015 | 29,624 | |
Goodwill acquired during the period | 29,600 | 29,624 |
UNITED STATES | ||
Goodwill [Line Items] | ||
Balance at August 31, 2014 | 179,434 | |
Balance at February 28, 2015 | 209,058 | |
Foreign currency translations | 0 | |
Europe [Member] | ||
Goodwill [Line Items] | ||
Balance at August 31, 2014 | 103,032 | |
Balance at February 28, 2015 | 94,105 | |
Foreign currency translations | -8,927 | |
Asia Pacific [Member] | ||
Goodwill [Line Items] | ||
Balance at August 31, 2014 | 3,142 | |
Balance at February 28, 2015 | 2,730 | |
Foreign currency translations | ($412) |
Note_10_Intangible_Assets_Deta
Note 10 - Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | Feb. 06, 2015 |
Note 10 - Intangible Assets (Details) [Line Items] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 6 months | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $0 | $0 | ||||
Acquired Finite-lived Intangible Asset, Residual Value | 0 | 0 | ||||
Amortization of Intangible Assets | 2 | 2.2 | 4.1 | 3.9 | ||
Code Red, Inc. [Member] | ||||||
Note 10 - Intangible Assets (Details) [Line Items] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 109 days | |||||
Finite-lived Intangible Assets Acquired | $8.20 | $8.20 |
Note_10_Intangible_Assets_Deta1
Note 10 - Intangible Assets (Details) - Identifiable Intangible Assets (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $112,318 | $109,870 |
Accumulated amortization | 69,005 | 68,015 |
Net carrying amount | 43,313 | 41,855 |
Data Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 53,039 | 56,974 |
Accumulated amortization | 28,482 | 27,644 |
Net carrying amount | 24,557 | 29,330 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 27,861 | 25,821 |
Accumulated amortization | 17,383 | 17,443 |
Net carrying amount | 10,478 | 8,378 |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 26,877 | 22,881 |
Accumulated amortization | 19,912 | 20,089 |
Net carrying amount | 6,965 | 2,792 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,809 | 1,729 |
Accumulated amortization | 1,072 | 958 |
Net carrying amount | 737 | 771 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,732 | 2,465 |
Accumulated amortization | 2,156 | 1,881 |
Net carrying amount | $576 | $584 |
Note_10_Intangible_Assets_Deta2
Note 10 - Intangible Assets (Details) - Estimated Amortization Expense (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Estimated Amortization Expense [Abstract] | |
2015 (remaining six months) | $4,023 |
2016 | 6,895 |
2017 | 6,813 |
2018 | 5,688 |
2019 | 4,376 |
Thereafter | 15,518 |
Total | $43,313 |
Note_11_Common_Stock_and_Earni2
Note 11 - Common Stock and Earnings Per Share (Details) (USD $) | 0 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | ||
Feb. 11, 2015 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Mar. 17, 2015 | |
Note 11 - Common Stock and Earnings Per Share (Details) [Line Items] | ||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $0.39 | |||||
Shares Paid for Tax Withholding for Share Based Compensation | 17,165 | 21,289 | ||||
Payments Related to Tax Withholding for Share-based Compensation (in Dollars) | $2,200,000 | $2,300,000 | ||||
Equity Option [Member] | ||||||
Note 11 - Common Stock and Earnings Per Share (Details) [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 49,738 | ||
Performance Shares [Member] | ||||||
Note 11 - Common Stock and Earnings Per Share (Details) [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 494,297 | 1,394,821 | 494,297 | 1,394,821 | ||
Subsequent Event [Member] | ||||||
Note 11 - Common Stock and Earnings Per Share (Details) [Line Items] | ||||||
Dividends, Cash (in Dollars) | $16,200,000 | |||||
Per Annum [Member] | ||||||
Note 11 - Common Stock and Earnings Per Share (Details) [Line Items] | ||||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $1.56 |
Note_11_Common_Stock_and_Earni3
Note 11 - Common Stock and Earnings Per Share (Details) - Shares of Common Stock Outstanding | 6 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | |||
Class of Stock [Line Items] | ||||
Balance at September 1 | 41,792,802 | 43,324,000 | ||
Common stock issued for employee stock plans | 604,000 | 389,000 | ||
Stock issued for acquisition of a business | 20,000 | 0 | ||
Repurchase of common stock | -769,854 | |||
Balance at February 28, 2015 and 2014, respectively | 41,630,258 | 42,362,000 | ||
Repurchase of Common Stock from Employees [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase of common stock | -17,000 | [1] | -21,000 | [1] |
Share Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase of common stock | -770,000 | -1,330,000 | ||
[1] | For the six months ended February 28, 2015 and 2014, the Company repurchased 17,165 and 21,289 shares, or $2.2 million and $2.3 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock. |
Note_11_Common_Stock_and_Earni4
Note 11 - Common Stock and Earnings Per Share (Details) - Weighted Average Shares Outstanding (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Basic EPS | ||||
Income available to common stockholders (in Dollars) | $61,598 | $52,426 | $117,458 | $104,604 |
Income available to common stockholders | 41,630 | 42,547 | 41,658 | 42,840 |
Income available to common stockholders (in Dollars per share) | $1.48 | $1.23 | $2.82 | $2.44 |
Diluted EPS | ||||
Dilutive effect of stock options and restricted stock | 676 | 560 | 666 | 592 |
Income available to common stockholders plus assumed conversions (in Dollars) | $61,598 | $52,426 | $117,458 | $104,604 |
Income available to common stockholders plus assumed conversions | 42,306 | 43,107 | 42,324 | 43,432 |
Income available to common stockholders plus assumed conversions (in Dollars per share) | $1.46 | $1.22 | $2.78 | $2.41 |
Note_12_Stockholders_Equity_De
Note 12 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 15, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | Feb. 06, 2015 | Aug. 31, 2014 | Aug. 31, 2013 | |
Note 12 - Stockholders' Equity (Details) [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | ||||||
Preferred Stock, Shares Issued | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | ||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | ||||||
Common Stock, Shares, Issued | 49,714,486 | 49,110,218 | ||||||
Treasury Stock, Shares | 8,084,228 | 7,317,416 | ||||||
Common Stock, Shares, Outstanding | 41,630,258 | 42,362,000 | 41,792,802 | 43,324,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 20,000 | 0 | ||||||
Stock Repurchase Program, Additional Amount Authorized (in Dollars) | $300 | |||||||
Treasury Stock, Shares, Acquired | 769,854 | |||||||
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | 104.1 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount (in Dollars) | 282.9 | |||||||
Shares Paid for Tax Withholding for Share Based Compensation | 17,165 | 21,289 | ||||||
Restricted Stock [Member] | ||||||||
Note 12 - Stockholders' Equity (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 53,495 | 79,774 | 53,000 | [1] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 17,165 | 21,289 | ||||||
Code Red, Inc. [Member] | ||||||||
Note 12 - Stockholders' Equity (Details) [Line Items] | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 20,207 | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned (in Dollars) | $3 | |||||||
[1] | All of the 53,495 restricted stock awards that vested during the first quarter of fiscal 2015 related to awards granted on October 23, 2009. These restricted stock awards cliff vested 100% after five years on October 23, 2014 and were amortized to expense over the vesting period using the straight-line attribution method. |
Note_12_Stockholders_Equity_De1
Note 12 - Stockholders' Equity (Details) - Dividends Declared (USD $) | 0 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 17, 2015 | Dec. 16, 2014 | Sep. 16, 2014 | Jun. 17, 2014 | Mar. 18, 2014 | Dec. 17, 2013 | Sep. 17, 2013 |
Febuary 11, 2015 Declaration Date [Member] | Subsequent Event [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.39 | ||||||
Record Date | 27-Feb-15 | ||||||
Total $ Amount | $16,236 | ||||||
Payment Date | 17-Mar-15 | ||||||
November 12,2014 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.39 | ||||||
Record Date | 28-Nov-14 | ||||||
Total $ Amount | 16,216 | ||||||
Payment Date | 16-Dec-14 | ||||||
August 14, 2014 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.39 | ||||||
Record Date | 29-Aug-14 | ||||||
Total $ Amount | 16,299 | ||||||
Payment Date | 16-Sep-14 | ||||||
May 5, 2014 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.39 | ||||||
Record Date | 30-May-14 | ||||||
Total $ Amount | 16,386 | ||||||
Payment Date | 17-Jun-14 | ||||||
February 11, 2014 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.35 | ||||||
Record Date | 28-Feb-14 | ||||||
Total $ Amount | 14,827 | ||||||
Payment Date | 18-Mar-14 | ||||||
November 14, 2013 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.35 | ||||||
Record Date | 29-Nov-13 | ||||||
Total $ Amount | 15,046 | ||||||
Payment Date | 17-Dec-13 | ||||||
August 15, 2013 Declaration Date [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Dividends Per Share of Common Stock | $0.35 | ||||||
Record Date | 31-Aug-13 | ||||||
Total $ Amount | 15,164 | ||||||
Payment Date | 17-Sep-13 | ||||||
Subsequent Event [Member] | |||||||
Note 12 - Stockholders' Equity (Details) - Dividends Declared [Line Items] | |||||||
Total $ Amount | $16,200 |
Note_13_Employee_Stock_Option_2
Note 13 - Employee Stock Option and Retirement Plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2012 | Nov. 30, 2013 | Sep. 17, 2013 | Oct. 23, 2014 | Dec. 16, 2014 | |
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 463,000 | |||||||||||||
Granted, weighted average exercise price per share (in Dollars per share) | $131.31 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,798,000 | 3,540,000 | 3,540,000 | 3,482,000 | 3,482,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $85.98 | $91.67 | $91.67 | 79.67 | 79.67 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $63.40 | $63.40 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||||||||||||
Share Price (in Dollars per share) | $155.55 | $155.55 | ||||||||||||
Restricted Stock Award, Shares Added to Available Balance | 2.5 | 2.5 | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 500,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | 10.00% | ||||||||||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 60.00% | |||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | |||||||||||||
Defined Contribution Plan, Employer Matching Contribution, Vesting Period | 5 years | |||||||||||||
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | 4 | 3.7 | ||||||||||||
Employee Stock Option [Member] | Minimum [Member] | 2004 Stock Option and Award Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||||||||
Employee Stock Option [Member] | Maximum [Member] | 2004 Stock Option and Award Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||||||
Employee Stock Option [Member] | 2004 Stock Option and Award Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 38.6 | 38.6 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,600,000 | 1,600,000 | 1,900,000 | 1,900,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share) | $73.17 | $73.17 | 68.78 | 68.78 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value (in Dollars) | 133.1 | 133.1 | 111.3 | 111.3 | ||||||||||
Employee Stock Option [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Granted, weighted average exercise price per share (in Dollars per share) | $135.40 | $106.69 | $147.05 | $106.03 | ||||||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | Code Red, Inc. [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 68,761 | |||||||||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 48,314 | |||||||||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche Two [Member] | Code Red, Inc. [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 68,761 | |||||||||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||
Performance Shares [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||
Performance Shares [Member] | Code Red, Inc. [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 137,522 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 2.4 | 2.4 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 328 days | |||||||||||||
Performance Shares [Member] | Matrix Data Limited [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 165,949 | |||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options Measurement Period | 5 years | |||||||||||||
Performance Shares [Member] | Revere Data, LLC [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 36,695 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 0.4 | 0.4 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 18,553 | 18,553 | ||||||||||||
Performance Shares [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 137,522 | 165,949 | 241,546 | 36,695 | ||||||||||
Granted, weighted average exercise price per share (in Dollars per share) | $148.52 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 0.8 | 0.8 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||||
Restricted Stock [Member] | Code Red, Inc. [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 0.1 | 0.1 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 690 | 690 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,724 | |||||||||||||
Performance Based Stock Options Outstanding Expected to be Forfeited | 1,034 | 1,034 | ||||||||||||
Restricted Stock [Member] | Revere Data, LLC [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 0.3 | 0.3 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,872 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,744 | |||||||||||||
Performance Based Stock Options Outstanding Expected to be Forfeited | 3,872 | 3,872 | ||||||||||||
Restricted Stock [Member] | 2004 Stock Option and Award Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years 328 days | 5 years | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 24.8 | 24.8 | ||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 146 days | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 26,000 | [1] | 48,313 | 95,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $135.66 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 357,321 | 357,321 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 53,495 | |||||||||||||
Restricted Stock [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,000 | 48,313 | 204,124 | 38,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $127.58 | $135.66 | $101.95 | $137.83 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 324,000 | 357,000 | 357,000 | 368,000 | 368,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 53,000 | [2] | 53,495 | 79,774 | ||||||||||
2008 Employee Stock Purchase Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Granted, weighted average exercise price per share (in Dollars per share) | $113.12 | $88.22 | $116.95 | $89.50 | ||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 511,673 | 511,673 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 500,000 | |||||||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 33,208 | 36,529 | 17,811 | 20,166 | ||||||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $113.12 | $88.22 | $116.95 | $89.50 | ||||||||||
2004 Stock Option and Award Plan [Member] | ||||||||||||||
Note 13 - Employee Stock Option and Retirement Plans (Details) [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 625,510 | |||||||||||||
Granted, weighted average exercise price per share (in Dollars per share) | $135.40 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,540,039 | 3,540,039 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $91.67 | $91.67 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $38.80 | $16 | $32.80 | $9 | ||||||||||
[1] | Under the Company's option plan, for each restricted stock award canceled/forfeited, an equivalent of 2.5 shares is added back to the available share-based awards balance. | |||||||||||||
[2] | All of the 53,495 restricted stock awards that vested during the first quarter of fiscal 2015 related to awards granted on October 23, 2009. These restricted stock awards cliff vested 100% after five years on October 23, 2014 and were amortized to expense over the vesting period using the straight-line attribution method. |
Note_13_Employee_Stock_Option_3
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Stock Option Activity (USD $) | 3 Months Ended | 1 Months Ended | |||
Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Nov. 30, 2013 | Jul. 31, 2012 | |
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Stock Option Activity [Line Items] | |||||
Number outstanding | 3,798,000 | 3,482,000 | |||
Weighted average exercise price per share | $85.98 | $79.67 | |||
Granted, number outstanding | 463,000 | ||||
Granted, weighted average exercise price per share | $131.31 | ||||
Exercised, number outstanding | -403,000 | -114,000 | |||
Exercised, weighted average exercise price per share | $61.63 | $73.53 | |||
Forfeited, number outstanding | -32,000 | -33,000 | |||
Forfeited, weighted average exercise price per share | $97.08 | $98.28 | |||
Number outstanding | 3,540,000 | 3,798,000 | |||
Weighted average exercise price per share | $91.67 | $85.98 | |||
Non-performance Based [Member] | |||||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Stock Option Activity [Line Items] | |||||
Granted, number outstanding | 25,075 | 462,913 | 138,902 | 35,508 | |
Granted, weighted average exercise price per share | $139.02 | $131.31 | |||
Performance Shares [Member] | |||||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Stock Option Activity [Line Items] | |||||
Granted, number outstanding | 137,522 | 165,949 | 36,695 | 241,546 | |
Granted, weighted average exercise price per share | $148.52 | ||||
Non-employee Stock Option [Member] | |||||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Stock Option Activity [Line Items] | |||||
Granted, number outstanding | 14,000 | ||||
Granted, weighted average exercise price per share | $138.48 |
Note_13_Employee_Stock_Option_4
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense (Performance Shares [Member], USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | |
Share-based Compensation Award, Tranche One [Member] | Code Red, Inc. [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | ($38) | [1] |
Remaining Expense to be Recognized | 0 | |
Share-based Compensation Award, Tranche One [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 0 | [1] |
Remaining Expense to be Recognized | 774 | |
Share-based Compensation Award, Tranche Two [Member] | Code Red, Inc. [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 0 | [1] |
Remaining Expense to be Recognized | 2,363 | |
Share-based Compensation Award, Tranche Two [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 948 | [1] |
Remaining Expense to be Recognized | 1,426 | |
Share-based Compensation Award, Tranche Three [Member] | Code Red, Inc. [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 66 | [1] |
Remaining Expense to be Recognized | 4,134 | |
Share-based Compensation Award, Tranche Three [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 2,274 | [1] |
Remaining Expense to be Recognized | 1,701 | |
Code Red, Inc. [Member] | ||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Changes to the Current Estimate of the Vesting Percentage and Related Expense [Line Items] | ||
Cumulative Catch-up Adjustment | 94 | [1] |
Remaining Expense to be Recognized | $5,906 | |
[1] | Amounts represent the cumulative catch-up adjustment to be recorded if there was a change in the vesting percentage as of February 28, 2015. |
Note_13_Employee_Stock_Option_5
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Restricted Stock Award (Restricted Stock [Member], USD $) | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | ||
Restricted Stock [Member] | |||||
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Restricted Stock Award [Line Items] | |||||
Balance | 324,000 | 368,000 | 368,000 | ||
Balance | $95.40 | $89.77 | $89.77 | ||
Granted (restricted stock and stock units) | 38,000 | 10,000 | 48,313 | 204,124 | |
Granted (restricted stock and stock units) | $137.83 | $127.58 | $135.66 | $101.95 | |
Vested* | -53,000 | [1] | -53,495 | -79,774 | |
Vested* | $62.85 | [1] | |||
Canceled/forfeited | -5,000 | -1,000 | |||
Canceled/forfeited | $95.43 | $93.76 | |||
Balance | 357,000 | 324,000 | 357,000 | ||
Balance | $99.85 | $95.40 | $99.85 | ||
[1] | All of the 53,495 restricted stock awards that vested during the first quarter of fiscal 2015 related to awards granted on October 23, 2009. These restricted stock awards cliff vested 100% after five years on October 23, 2014 and were amortized to expense over the vesting period using the straight-line attribution method. |
Note_13_Employee_Stock_Option_6
Note 13 - Employee Stock Option and Retirement Plans (Details) - Summary of Share-Based Awards Available For Grant | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | ||
Non-performance Based [Member] | 2004 Stock Option and Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | -25,000 | -463,000 | |||
Non-performance Based [Member] | Non-Employee Directors' Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | -14,000 | 0 | |||
Performance Shares [Member] | 2004 Stock Option and Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | -138,000 | 0 | |||
Performance Shares [Member] | Non-Employee Directors' Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 0 | 0 | |||
Restricted Stock [Member] | 2004 Stock Option and Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | -95,000 | -26,000 | [1] | -48,313 | |
Restricted Stock [Member] | Non-Employee Directors' Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 0 | 0 | [1] | ||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | -38,000 | -10,000 | -48,313 | -204,124 | |
2004 Stock Option and Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Balance | 2,768,000 | 3,222,000 | 3,222,000 | ||
Share-based awards canceled/forfeited | 44,000 | 35,000 | [1] | ||
Balance | 2,554,000 | 2,768,000 | 2,554,000 | ||
Non-Employee Directors' Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Balance | 102,000 | 102,000 | 102,000 | ||
Share-based awards canceled/forfeited | 0 | 0 | [1] | ||
Balance | 88,000 | 102,000 | 88,000 | ||
[1] | Under the Company's option plan, for each restricted stock award canceled/forfeited, an equivalent of 2.5 shares is added back to the available share-based awards balance. |
Note_14_Stockbased_Compensatio2
Note 14 - Stock-based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | |||||
Feb. 28, 2015 | Nov. 30, 2014 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | Nov. 30, 2013 | Jul. 31, 2012 | Jan. 15, 2015 | Jan. 15, 2014 | Dec. 16, 2014 | |
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Allocated Share-based Compensation Expense (in Dollars) | $5,800,000 | $5,500,000 | $11,000,000 | $10,600,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 63,400,000 | 63,400,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 6 months | ||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount (in Dollars) | 0 | 0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 463,000 | ||||||||||
Granted, weighted average exercise price per share | $131.31 | ||||||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 500,000 | ||||||||||
Non-performance Based [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 25,075 | 462,913 | 138,902 | 35,508 | |||||||
Granted, weighted average exercise price per share | $139.02 | $131.31 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $37.67 | ||||||||||
Performance Shares [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 800,000 | 800,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 137,522 | 165,949 | 36,695 | 241,546 | |||||||
Granted, weighted average exercise price per share | $148.52 | ||||||||||
Performance and Non-performance [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Granted, weighted average exercise price per share | $147.05 | $106.03 | 109.49 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $43.05 | $29.14 | 31.78 | ||||||||
Restricted Stock [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 38,000 | 10,000 | 48,313 | 204,124 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $137.83 | $127.58 | $135.66 | $101.95 | |||||||
Non-Employee Directors' Stock Option Plan [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 13,842 | 14,424 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $28.18 | $27.04 | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 250,000 | 250,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 88,590 | 88,590 | |||||||||
2008 Employee Stock Purchase Plan [Member] | |||||||||||
Note 14 - Stock-based Compensation (Details) [Line Items] | |||||||||||
Allocated Share-based Compensation Expense (in Dollars) | $400,000 | $300,000 | |||||||||
Granted, weighted average exercise price per share | $116.95 | $89.50 | $113.12 | $88.22 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $22.37 | $19.04 | $21.67 | $17.96 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance (in Shares) | 511,673 | 511,673 | |||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in Shares) | 17,811 | 20,166 | 33,208 | 36,529 |
Note_14_Stockbased_Compensatio3
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options (USD $) | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | |
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options [Line Items] | |||||
Weighted average exercise price (in Dollars per share) | $131.31 | ||||
Employee Stock Option [Member] | Minimum [Member] | |||||
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options [Line Items] | |||||
Term structure of risk-free interest rate | 0.06% | 0.01% | 0.06% | 0.01% | |
Term structure of volatility | 21.00% | 23.00% | 21.00% | 23.00% | |
Employee Stock Option [Member] | Maximum [Member] | |||||
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options [Line Items] | |||||
Term structure of risk-free interest rate | 2.34% | 2.48% | 2.34% | 2.61% | |
Term structure of volatility | 31.00% | 32.00% | 31.00% | 33.00% | |
Employee Stock Option [Member] | |||||
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options [Line Items] | |||||
Expected life (in years) | 8 years 109 days | 7 years 219 days | 8 years 73 days | 7 years 219 days | |
Dividend yield | 1.29% | 1.35% | 1.35% | 1.35% | |
Weighted average estimated fair value (in Dollars per share) | 43.05 | 29.14 | 39.07 | 29.64 | |
Weighted average exercise price (in Dollars per share) | 147.05 | 106.03 | 135.4 | 106.69 | |
Fair value as a percentage of exercise price | 29.30% | 27.50% | 28.90% | 27.80% |
Note_14_Stockbased_Compensatio4
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options (Non-Employee Directors' Stock Option Plan [Member]) | 0 Months Ended | |
Jan. 15, 2015 | Jan. 15, 2014 | |
Non-Employee Directors' Stock Option Plan [Member] | ||
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions of Employee Stock Options [Line Items] | ||
Risk-free interest rate | 1.45% | 1.66% |
Expected life (in years) | 5 years 146 days | 5 years 146 days |
Expected volatility | 23.50% | 28.90% |
Dividend yield | 1.30% | 1.35% |
Note_14_Stockbased_Compensatio5
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions, Employee Stock Purchase Plan (2008 Employee Stock Purchase Plan [Member]) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | |
2008 Employee Stock Purchase Plan [Member] | ||||
Note 14 - Stock-based Compensation (Details) - Summary of Stock Option Weighted Average Assumptions, Employee Stock Purchase Plan [Line Items] | ||||
Risk-free interest rate | 0.03% | 0.05% | 0.02% | 0.05% |
Expected life (in months) | 3 years | 3 years | 3 years | 3 years |
Expected volatility | 8.10% | 10.30% | 8.30% | 9.60% |
Dividend yield | 1.13% | 1.23% | 1.17% | 1.29% |
Note_15_Income_Taxes_Details
Note 15 - Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | |||
Income Tax Disclosure [Abstract] | |||||||
Tax Adjustments, Settlements, and Unusual Provisions | ($5,100,000) | ||||||
Effective Income Tax Rate Reconciliation, Percent | 24.10% | [1] | 30.50% | 27.40% | [1] | 30.50% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | |||||
Unrecognized Tax Benefits | 6,907,000 | 6,907,000 | 5,501,000 | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 1,400,000 | 1,400,000 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $500,000 | $500,000 | |||||
[1] | On December 16, 2014, the U.S. Congress passed the Tax Increase Prevention Act of 2014 (the "ACT"), which President Obama signed into law on December 19, 2014. The ACT reinstated the U.S. Federal R&D tax credit, which had previously expired on December 31, 2013. The reenactment of the credit was retroactive to January 1, 2014 and extended through the end of the 2014 calendar year. Prior to the reenactment of the tax credit, FactSet had not been permitted to factor it into its effective tax rate because it was not currently enacted tax law. The reenactment resulted in a discrete income tax benefit of $5.1 million during the second quarter of fiscal 2015 and reduced the Company's annual effective tax rate to 30.4%. |
Note_15_Income_Taxes_Details_P
Note 15 - Income Taxes (Details) - Provision for Income Taxes by Geographic Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | ||
Provision for Income Taxes by Geographic Operations [Abstract] | ||||||
U.S. operations | $64,881 | $62,429 | $130,839 | $122,688 | ||
Non-U.S. operations | 16,301 | 12,969 | 31,033 | 27,792 | ||
Income before income taxes | 81,182 | 75,398 | 161,872 | 150,480 | ||
U.S. operations | 15,157 | 20,275 | 40,817 | 39,929 | ||
Non-U.S. operations | 4,427 | 2,697 | 3,597 | 5,947 | ||
Total provision for income taxes | $19,584 | $22,972 | $44,414 | $45,876 | ||
Effective tax rate | 24.10% | [1] | 30.50% | 27.40% | [1] | 30.50% |
[1] | On December 16, 2014, the U.S. Congress passed the Tax Increase Prevention Act of 2014 (the "ACT"), which President Obama signed into law on December 19, 2014. The ACT reinstated the U.S. Federal R&D tax credit, which had previously expired on December 31, 2013. The reenactment of the credit was retroactive to January 1, 2014 and extended through the end of the 2014 calendar year. Prior to the reenactment of the tax credit, FactSet had not been permitted to factor it into its effective tax rate because it was not currently enacted tax law. The reenactment resulted in a discrete income tax benefit of $5.1 million during the second quarter of fiscal 2015 and reduced the Company's annual effective tax rate to 30.4%. |
Note_15_Income_Taxes_Details_C
Note 15 - Income Taxes (Details) - Components of the Provision for Income Taxes (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Current | ||||
U.S. Federal | $34,492 | $38,630 | ||
U.S. state and local | 2,601 | 2,573 | ||
Non-U.S. | 5,186 | 6,008 | ||
Total current taxes | 42,279 | 47,211 | ||
Deferred | ||||
U.S. Federal | 3,561 | -1,205 | ||
U.S. state and local | 163 | -69 | ||
Non-U.S. | -1,589 | -61 | ||
Total deferred taxes | 2,135 | -1,335 | ||
Total provision for income taxes | $19,584 | $22,972 | $44,414 | $45,876 |
Note_15_Income_Taxes_Details_S
Note 15 - Income Taxes (Details) - Significant Components of Deferred Tax Assets (USD $) | Feb. 28, 2015 | Aug. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current | ||
Receivable reserve | $592 | $597 |
Deferred rent | 807 | 1,067 |
Other | 218 | 177 |
Net current deferred tax assets | 1,617 | 1,841 |
Non-current | ||
Depreciation on property, equipment and leasehold improvements | 9,657 | 9,831 |
Deferred rent | 3,459 | 3,572 |
Stock-based compensation | 18,319 | 18,160 |
Purchased intangible assets, including acquired technology | -16,416 | -10,750 |
Other | 1,763 | 1,564 |
Net non-current deferred tax assets | 16,782 | 22,377 |
Total deferred tax assets | 18,399 | 24,218 |
Deferred tax liabilities (current) | ||
Other | 1,047 | 0 |
Net current deferred tax liabilities | 1,047 | 0 |
Deferred tax liabilities (non-current) | ||
Purchased intangible assets, including acquired technology | 1,992 | 3,478 |
Stock-based compensation | 0 | -860 |
Depreciation on property, equipment and leasehold improvements | -182 | 0 |
Other | 287 | 303 |
Net non-current deferred tax liabilities | 2,097 | 2,921 |
Total deferred tax liabilities | $3,144 | $2,921 |
Note_15_Income_Taxes_Details_R
Note 15 - Income Taxes (Details) - Reconciliation of Unrecognized Tax Benefits (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2015 |
Reconciliation of Unrecognized Tax Benefits [Abstract] | |
Unrecognized income tax benefits | $5,501 |
Additions based on tax positions related to the current year | 524 |
Additions for tax positions of prior years | 882 |
Unrecognized income tax benefits | $6,907 |
Note_15_Income_Taxes_Details_M
Note 15 - Income Taxes (Details) - Major Tax Jurisdictions in Which the Company and Affiliates Operate and the Earliest Tax Year Subject to Examination | 6 Months Ended |
Feb. 28, 2015 | |
Domestic Tax Authority [Member] | Minimum [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2013 |
Domestic Tax Authority [Member] | Maximum [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2015 |
State and Local Jurisdiction [Member] | Minimum [Member] | State (Various) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2011 |
State and Local Jurisdiction [Member] | Maximum [Member] | State (Various) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2015 |
Foreign Tax Authority [Member] | Minimum [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2012 |
Foreign Tax Authority [Member] | Minimum [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2013 |
Foreign Tax Authority [Member] | Maximum [Member] | Ministry of the Economy, Finance and Industry, France [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2015 |
Foreign Tax Authority [Member] | Maximum [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2015 |
Note_16_Longterm_Debt_Details
Note 16 - Long-term Debt (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Feb. 06, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | |
Note 16 - Long-term Debt (Details) [Line Items] | |||
Long-term Debt | $35,000,000 | $0 | |
Long-term Debt, Fair Value | 35,000,000 | ||
The Loan [Member] | Revolving Credit Facility [Member] | Eurodollar [Member] | |||
Note 16 - Long-term Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
The Loan [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||
Note 16 - Long-term Debt (Details) [Line Items] | |||
Interest Paid | 100,000 | ||
Debt Issuance Cost | 100,000 | ||
Amortization of Financing Costs | 100,000 | ||
The Loan [Member] | Revolving Credit Facility [Member] | |||
Note 16 - Long-term Debt (Details) [Line Items] | |||
Long-term Line of Credit | 35,000,000 | ||
Long-term Debt | 35,000,000 | ||
Long-term Debt, Fair Value | 35,000,000 | ||
Line of Credit Facility, Commitment Fee Amount | 0 | ||
Debt Instrument, Term | 3 years | ||
Revolving Credit Facility [Member] | |||
Note 16 - Long-term Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 35,000,000 | ||
Line of Credit Facility, Maximum Amount of Additional Borrowings | 265,000,000 | ||
Line of Credit Facility, Minimum Borrowing Amount Required for Additional Borrowings | 25,000,000 |
Note_17_Commitments_and_Contin2
Note 17 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Aug. 31, 2014 | |
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Operating Leases, Rent Expense | $9,400,000 | $9,400,000 | $19,100,000 | $18,300,000 | |
Other Liabilities, Noncurrent | 14,787,000 | 14,787,000 | 16,417,000 | ||
Operating Leases, Future Minimum Payments Due | 197,383,000 | 197,383,000 | |||
Long-term Purchase Commitment, Amount | 53,300,000 | ||||
Largest Individual Client Percent of Total Subscriptions | 2.00% | 2.00% | |||
Percentage of Subscription from Ten Largest Clients | 15.00% | 15.00% | |||
Allowance for Doubtful Accounts Receivable | 1,600,000 | 1,600,000 | 1,700,000 | ||
Deferred Rent [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Other Liabilities | 16,100,000 | 16,100,000 | 18,300,000 | ||
Other Liabilities, Noncurrent | 13,500,000 | 13,500,000 | 14,900,000 | ||
Standby Letters of Credit [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Long-term Line of Credit | 1,700,000 | 1,700,000 | |||
Boston, Massachusetts [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Area of Real Estate Property (in Square Feet) | 4,809 | 4,809 | |||
Operating Leases, Future Minimum Payments Due | 6,600,000 | 6,600,000 | |||
Hyderabad, India [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Operating Leases, Future Minimum Payments Due | $2,200,000 | $2,200,000 | |||
Norwalk, Connecticut [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Area of Real Estate Property (in Square Feet) | 193,000 | 193,000 | |||
Office Space [Member] | |||||
Note 17 - Commitments and Contingencies (Details) [Line Items] | |||||
Area of Real Estate Property (in Square Feet) | 827,500 | 827,500 |
Note_17_Commitments_and_Contin3
Note 17 - Commitments and Contingencies (Details) - Future Minimum Lease Commitments (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Future Minimum Lease Commitments [Abstract] | |
2015 (remaining six months) | $11,921 |
2016 | 20,626 |
2017 | 23,939 |
2018 | 22,699 |
2019 | 21,202 |
Thereafter | 96,996 |
Total | $197,383 |