Intangible Assets

12 Months Ended

Aug. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

INTANGIBLE ASSETS

FactSet’s identifiable intangible assets consist of acquired content databases, client relationships, acquired software technology, internally developed software, non-compete agreements and trade names resulting from previous acquisitions, which have been fully integrated into the Company’s operations. The Company amortizes intangible assets over their estimated useful lives. Data content intangible assets have estimated useful lives ranging from five to 20 years. Client relationship intangible assets have estimated useful lives ranging from eight to 18 years. Acquired software technology intangible assets have estimated useful lives ranging from three to nine years. The majority of the developed software technology intangible assets has estimated useful lives ranging from three to five years. Non-compete agreement intangible assets have estimated useful lives ranging from two to four years. Trade name intangible assets have estimated useful lives ranging from four to seven years. The weighted average useful life of the Company’s intangible assets at August 31, 2020 was 11.9 years. The Company evaluates the intangible asset useful lives on an annual basis to determine whether events and circumstances warrant a revision to the remaining period of amortization. There have been no material changes to the estimate of the remaining useful lives during fiscal years 2020, 2019 and 2018.

The Company assesses the intangible assets for indicators of impairment on a quarterly basis. If indicators of impairment are present, amortizable intangible assets are tested for impairment by comparing the carrying value to 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:

At August 31, 2020 (in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Data content	$	35,872	$	24,847	$	11,025
Client relationships	100,316		43,026		57,290
Acquired software technology	108,384		72,396		35,988
Internally developed software	30,276		13,689		16,587
Non-compete agreements	1,388		1,355		33
Trade names	4,106		3,934		172
Total	$	280,342	$	159,247	$	121,095

At August 31, 2019 (in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Data content	$	32,200	$	21,512	$	10,688
Client relationships	95,905		35,506		60,399
Acquired software technology	105,426		56,965		48,461
Internally developed software	14,262		10,365		3,897
Non-compete agreements	1,311		1,228		83
Trade names	3,994		3,074		920
Total	$	253,098	$	128,650	$	124,448

Amortization expense recorded for intangible assets during fiscal years 2020, 2019 and 2018 was $25.4 million, $25.1 million and $24.7 million, respectively. As of August 31, 2020, estimated intangible asset amortization expense for each of the next five years and thereafter are as follows:

Fiscal Year (in thousands)	Estimated Amortization Expense
2021	$	26,939
2022	24,133
2023	18,092
2024	10,389
2025	7,712
Thereafter	33,830
Total	$	121,095