Segment Reporting

9 Months Ended

May 31, 2011

Segment Reporting

Segment Reporting

7. SEGMENT REPORTING

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 reportable 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 reportable 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 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 North America, while the European and Asia Pacific segments service investment professionals located throughout Europe and Asia.

The European segment is headquartered in London, England and maintains office locations in France, Germany, the Netherlands, Dubai and Italy. The Asia Pacific segment is headquartered in Tokyo, Japan with office locations in Hong Kong, Australia, India and the Philippines. 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, including stock-based compensation, data collection costs, 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 and corporate headquarters charges are recorded by the U.S. segment and are not allocated to the other segments. Of the total $229 million of goodwill reported by the Company at May 31, 2011, 64% was recorded in the U.S. segment, 34% in the European segment and the remaining 2% 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, in part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments (in thousands).

For the three months ended May 31, 2011	U.S.		Europe		Asia Pacific		Total
Revenues from clients		125,963		44,944		12,740		183,647
Segment operating profit		35,218		20,659		5,946		61,823
Total assets		385,885		270,070		28,676		684,631
Capital expenditures		4,296		1,073		2,004		7,373

For the three months ended May 31, 2010	U.S.		Europe		Asia Pacific		Total
Revenues from clients		108,593		40,694		11,014		160,301
Segment operating profit		29,926		19,716		6,042		55,684
Total assets		398,931		180,661		25,123		604,715
Capital expenditures		3,528		198		899		4,625

For the nine months ended May 31, 2011	U.S.		Europe		Asia Pacific		Total
Revenues from clients		365,737		132,000		36,834		534,571
Segment operating profit		102,832		59,377		17,136		179,345
Capital expenditures		16,425		1,418		4,963		22,806

For the nine months ended May 31, 2010	U.S.		Europe		Asia Pacific		Total
Revenues from clients		320,681		119,561		32,583		472,825
Segment operating profit		92,640		53,433		18,131		164,204
Capital expenditures		8,400		544		4,732		13,676