Note 6 - Segment Information

12 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

6. 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 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 accounting policies of the segments are the same as those described in the Note 3, Summary of Significant Accounting Policies.

The European segment is headquartered in London, England and maintains office locations in France, Germany, the Netherlands, Latvia, Dubai and Italy. The Asia Pacific segment is headquartered in Tokyo, Japan with office locations in Hong Kong, Australia and Mumbai. 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, 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 $245 million of goodwill reported by the Company at August 31, 2013, 69% was recorded in the U.S. segment, 30% 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, 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, 2013	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	586,865	$	208,827	$	62,420	$	858,112
Segment operating profit		138,706		100,187		30,526		269,419
Total assets		444,406		193,202		52,589		690,197
Depreciation and amortization		27,757		4,027		3,995		35,779
Stock-based compensation		37,307		2,264		380		39,951
Capital expenditures		13,649		1,276		3,592		18,517

Year Ended August 31, 2012	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	550,474	$	197,404	$	57,915	$	805,793
Segment operating profit		149,968		95,417		27,605		272,990
Total assets		377,320		266,967		49,856		694,143
Depreciation and amortization		25,061		4,922		3,796		33,779
Stock-based compensation		20,180		1,680		122		21,982
Capital expenditures		20,408		488		1,624		22,520

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

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

Years Ended August 31,	2013		2012		2011
Revenues*
United States	$	586,865	$	550,474	$	497,564
United Kingdom		121,072		114,435		104,698
All other European countries		87,755		82,969		73,995
Asia Pacific		62,420		57,915		50,253
Total revenues	$	858,112	$	805,793	$	726,510

* 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,	2013		2012		2011
Long-lived Assets**
United States	$	51,184	$	60,288	$	60,092
United Kingdom		4,806		5,466		6,863
Philippines		3,228		3,420		4,181
India		1,753		2,921		4,453
France		1,701		2,079		2,859
All other European countries		1,350		872		1,216
All other Asia Pacific countries		1,349		1,484		1,956
Total long-lived assets	$	65,731	$	76,530	$	81,620

** 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.