SEGMENT INFORMATION

Operating segments are defined as (i) components of an enterprise that engage in business activities from which they

may

earn revenue and incur expense, (ii) with operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (iii) for which discrete financial information is available. Executive management, along with the CEO, constitute FactSet’s chief operating decision making group (“CODMG”). Executive management consists of certain executives who directly report to the CEO, consisting of the Chief Financial Officer, Chief Technology and Product Officer, Global Head of Sales and Client Solutions, General Counsel, Chief Human Resources Officer and Head of Analytics & Trading. The CODMG reviews financial information at the operating segment level and 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 CODMG, manages the business and the demographic markets in which FactSet serves. The Company’s internal financial reporting structure is based on

three

segments; the 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. The primary functional groups within the U.S., Europe and Asia Pacific segments include sales, consulting, data collection, product development and software engineering, which provide global financial and economic information to investment managers, investment banks and other financial services professionals.

The U.S. segment services investment professionals including financial institutions throughout the Americas. The European and Asia Pacific segments service investment professionals located throughout Europe and Asia Pacific, respectively. Segment revenues reflect direct sales to clients based in their respective geographic locations. 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, 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 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

$701.8

million of goodwill reported by the Company at

August 31, 2018,

54%

was recorded in the U.S. segment,

45%

in the European segment and the remaining

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, 2018	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	841,908	$	387,589	$	120,648	$	1,350,145
Segment operating profit		148,095		148,977		69,132		366,204
Total assets		724,259		585,497		109,692		1,419,448
Depreciation and amortization		37,453		15,710		4,122		57,285
Stock-based compensation		26,014		4,857		645		31,516
Capital expenditures		20,358		3,140		10,022		33,520

Year Ended August 31, 2017	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	784,146	$	330,332	$	106,701	$	1,221,179
Segment operating profit		137,104		153,676		61,355		352,135
Total assets		703,941		609,368		100,006		1,413,315
Depreciation and amortization		35,244		9,837		3,213		48,294
Stock-based compensation		30,247		3,320		616		34,183
Capital expenditures		29,561		2,385		4,916		36,862

Year Ended August 31, 2016	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	755,492	$	277,682	$	93,918	$	1,127,092
Segment operating profit		165,251		131,410		53,015		349,676
Total assets		654,796		279,864		84,501		1,019,161
Depreciation and amortization		31,529		4,220		2,303		38,052
Stock-based compensation		25,776		3,459		558		29,793
Capital expenditures		38,631		4,092		5,017		47,740

GEOGRAPHIC INFORMATION

- The following table sets forth information for those countries that are

10%

or more of revenues:

	Years ended August 31,
(in thousands)	2018		2017		2016
Revenues (1)
United States	$	841,908	$	784,146	$	755,492
United Kingdom		332,006		163,732		154,902
All other European countries		55,583		166,600		122,780
Asia Pacific		120,648		106,701		93,918
Total revenues	$	1,350,145	$	1,221,179	$	1,127,092

(

)

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

The following table sets forth long-lived assets by geographic area:

	At August 31,
(in thousands)	2018		2017		2016
Long-lived Assets ( 1 )
United States	$	74,792	$	79,299	$	70,646
United Kingdom		5,806		6,012		5,772
All other European countries		5,774		6,306		1,018
Asia Pacific		14,173		8,837		7,186
Total long-lived assets	$	100,545	$	100,454	$	84,622

(

)

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.