Segment Reporting

12 Months Ended

Aug. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

6. 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, respectively. The accounting policies of the segments are the same as those described in the Note 2, Summary of Significant Accounting Policies.

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 August 31, 2011, 64% was recorded in the U.S. segment, 34% in the European segment and the remaining 2% in the Asia Pacific segment.

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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).

Year Ended August 31, 2011	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	497,564	$	178,693	$	50,253	$	726,510
Segment operating profit		135,327		79,637		23,371		238,335
Total assets		353,205		274,139		30,096		657,440
Depreciation and amortization		27,463		6,092		3,292		36,847
Stock-based compensation		23,091		2,364		318		25,773
Capital expenditures		20,588		2,770		5,985		29,343
Year Ended August 31, 2010	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	435,351	$	161,649	$	44,059	$	641,059
Segment operating profit		124,976		72,239		24,419		221,634
Total assets		401,684		216,171		26,753		644,608
Depreciation and amortization		28,866		6,466		2,011		37,343
Stock-based compensation		12,471		1,424		170		14,065
Capital expenditures		13,890		684		6,194		20,768
Year Ended August 31, 2009	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	423,926	$	156,610	$	41,487	$	622,023
Segment operating profit		126,190		60,132		24,708		211,030
Total assets		410,420		203,551		19,981		633,952
Depreciation and amortization		26,992		6,750		595		34,337
Stock-based compensation		12,067		1,394		162		13,623
Capital expenditures		19,144		2,772		2,124		24,040

GEOGRAPHIC INFORMATION – The following table sets forth information for those countries that are 10% or more of revenues (in thousands).

Years Ended August 31,	2011		2010		2009
Revenues*
United States	$	497,564	$	435,351	$	423,926
United Kingdom		104,698		94,749		91,811
All other European countries		73,995		66,900		64,799
Asia Pacific		50,253		44,059		41,487
Total revenues	$	726,510	$	641,059	$	622,023

* Revenues are attributed to countries based on the location of the client.

The following table sets forth long-lived assets by geographic area (in thousands):

At August 31,	2011		2010		2009
Long-lived Assets**
United States	$	60,092	$	62,275	$	72,558
United Kingdom		6,863		7,457		9,066
All other European countries		4,075		2,283		3,424
India		4,453		3,283		771
Philippines		4,181		2,413		957
All other Asia Pacific countries		1,956		1,784		1,603
Total long-lived assets	$	81,620	$	79,495	$	88,379

** Long-lived assets consist of property, equipment and leasehold improvements, net of accumulated depreciation and amortization and exclude goodwill, intangible assets, deferred taxes and other assets.