10-Q 1 fds-20220531.htm 10-Q fds-20220531
00010132378/312022Q3false300010132372021-09-012022-05-310001013237exch:XNYS2021-09-012022-05-310001013237exch:XNAS2021-09-012022-05-3100010132372022-06-24xbrli:shares00010132372022-03-012022-05-31iso4217:USD00010132372021-03-012021-05-3100010132372020-09-012021-05-31iso4217:USDxbrli:shares00010132372022-05-3100010132372021-08-3100010132372020-08-3100010132372021-05-310001013237us-gaap:CommonStockMember2022-02-280001013237us-gaap:AdditionalPaidInCapitalMember2022-02-280001013237us-gaap:TreasuryStockMember2022-02-280001013237us-gaap:RetainedEarningsMember2022-02-280001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-2800010132372022-02-280001013237us-gaap:RetainedEarningsMember2022-03-012022-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-012022-05-310001013237us-gaap:CommonStockMember2022-03-012022-05-310001013237us-gaap:AdditionalPaidInCapitalMember2022-03-012022-05-310001013237us-gaap:TreasuryStockMember2022-03-012022-05-310001013237us-gaap:CommonStockMember2022-05-310001013237us-gaap:AdditionalPaidInCapitalMember2022-05-310001013237us-gaap:TreasuryStockMember2022-05-310001013237us-gaap:RetainedEarningsMember2022-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-310001013237us-gaap:CommonStockMember2021-08-310001013237us-gaap:AdditionalPaidInCapitalMember2021-08-310001013237us-gaap:TreasuryStockMember2021-08-310001013237us-gaap:RetainedEarningsMember2021-08-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-08-310001013237us-gaap:RetainedEarningsMember2021-09-012022-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-012022-05-310001013237us-gaap:CommonStockMember2021-09-012022-05-310001013237us-gaap:AdditionalPaidInCapitalMember2021-09-012022-05-310001013237us-gaap:TreasuryStockMember2021-09-012022-05-310001013237us-gaap:CommonStockMember2021-02-280001013237us-gaap:AdditionalPaidInCapitalMember2021-02-280001013237us-gaap:TreasuryStockMember2021-02-280001013237us-gaap:RetainedEarningsMember2021-02-280001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-2800010132372021-02-280001013237us-gaap:RetainedEarningsMember2021-03-012021-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-012021-05-310001013237us-gaap:CommonStockMember2021-03-012021-05-310001013237us-gaap:AdditionalPaidInCapitalMember2021-03-012021-05-310001013237us-gaap:TreasuryStockMember2021-03-012021-05-310001013237us-gaap:CommonStockMember2021-05-310001013237us-gaap:AdditionalPaidInCapitalMember2021-05-310001013237us-gaap:TreasuryStockMember2021-05-310001013237us-gaap:RetainedEarningsMember2021-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-05-310001013237us-gaap:CommonStockMember2020-08-310001013237us-gaap:AdditionalPaidInCapitalMember2020-08-310001013237us-gaap:TreasuryStockMember2020-08-310001013237us-gaap:RetainedEarningsMember2020-08-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-310001013237us-gaap:RetainedEarningsMember2020-09-012021-05-310001013237us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-012021-05-310001013237us-gaap:CommonStockMember2020-09-012021-05-310001013237us-gaap:AdditionalPaidInCapitalMember2020-09-012021-05-310001013237us-gaap:TreasuryStockMember2020-09-012021-05-31fds:segmentfds:workflow0001013237fds:AmericasSegmentMember2022-03-012022-05-310001013237fds:AmericasSegmentMember2021-03-012021-05-310001013237fds:AmericasSegmentMember2021-09-012022-05-310001013237fds:AmericasSegmentMember2020-09-012021-05-310001013237fds:EMEASegmentMember2022-03-012022-05-310001013237fds:EMEASegmentMember2021-03-012021-05-310001013237fds:EMEASegmentMember2021-09-012022-05-310001013237fds:EMEASegmentMember2020-09-012021-05-310001013237fds:AsiaPacificSegmentMember2022-03-012022-05-310001013237fds:AsiaPacificSegmentMember2021-03-012021-05-310001013237fds:AsiaPacificSegmentMember2021-09-012022-05-310001013237fds:AsiaPacificSegmentMember2020-09-012021-05-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:FairValueMeasurementsRecurringMember2022-05-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:MutualFundMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:MutualFundMemberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:FairValueMeasurementsRecurringMember2021-08-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberfds:Notes2027Memberus-gaap:SeniorNotesMember2022-05-310001013237us-gaap:FairValueInputsLevel1Memberfds:Notes2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2022-05-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberfds:Notes2027Memberus-gaap:SeniorNotesMember2021-08-310001013237us-gaap:FairValueInputsLevel1Memberfds:Notes2027Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2021-08-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMemberfds:Notes2032Member2022-05-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMemberfds:Notes2032Member2022-05-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueInputsLevel1Memberus-gaap:SeniorNotesMemberfds:Notes2032Member2021-08-310001013237us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMemberfds:Notes2032Member2021-08-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberfds:TermFacility2022Member2022-05-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberfds:TermFacility2022Member2022-05-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMemberfds:TermFacility2022Member2021-08-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:SecuredDebtMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberfds:TermFacility2022Member2021-08-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberfds:RevolvingFacility2022Member2022-05-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberfds:RevolvingFacility2022Member2022-05-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:LineOfCreditMemberfds:RevolvingFacility2022Member2021-08-310001013237us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberfds:RevolvingFacility2022Member2021-08-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberfds:RevolvingCreditFacility2019Memberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2022-05-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2022-05-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMemberfds:RevolvingCreditFacility2019Memberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-08-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-08-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-05-310001013237us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-05-310001013237us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-08-310001013237us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-08-310001013237srt:MinimumMember2021-09-012022-05-31xbrli:pure0001013237srt:MaximumMember2021-09-012022-05-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-05-31iso4217:PHPiso4217:INRiso4217:EURiso4217:GBP0001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2020-03-050001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMembersrt:ScenarioForecastMemberus-gaap:CashFlowHedgingMember2022-06-012022-08-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-03-010001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-09-012022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMember2022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:OtherNoncurrentAssetsMember2021-08-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-08-310001013237us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-03-012022-05-310001013237us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-03-012021-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2022-03-012022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2021-03-012021-05-310001013237us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-09-012022-05-310001013237us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-09-012021-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2021-09-012022-05-310001013237us-gaap:InterestRateSwapMemberus-gaap:InterestExpenseMember2020-09-012021-05-3100010132372022-05-312022-05-310001013237fds:CUSIPGlobalServicesMember2022-03-012022-03-010001013237fds:CUSIPGlobalServicesMember2022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:CustomerContractsMember2022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:CustomerContractsMember2022-03-012022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:CustomerRelationshipsMember2022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:CustomerRelationshipsMember2022-03-012022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:DatabasesMember2022-03-010001013237fds:CUSIPGlobalServicesMemberus-gaap:DatabasesMember2022-03-012022-03-010001013237fds:CobaltSoftwareIncMember2021-10-122021-10-120001013237fds:CobaltSoftwareIncMember2021-10-120001013237us-gaap:TechnologyBasedIntangibleAssetsMemberfds:CobaltSoftwareIncMember2021-10-120001013237us-gaap:TechnologyBasedIntangibleAssetsMemberfds:CobaltSoftwareIncMember2021-10-122021-10-120001013237us-gaap:CustomerRelationshipsMemberfds:CobaltSoftwareIncMember2021-10-120001013237us-gaap:CustomerRelationshipsMemberfds:CobaltSoftwareIncMember2021-10-122021-10-120001013237fds:TruvalueLabsIncMember2020-11-022020-11-020001013237fds:TruvalueLabsIncMember2020-11-020001013237fds:TruvalueLabsIncMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-11-020001013237fds:TruvalueLabsIncMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-11-022020-11-020001013237us-gaap:TradeNamesMemberfds:TruvalueLabsIncMember2020-11-020001013237us-gaap:TradeNamesMemberfds:TruvalueLabsIncMember2020-11-022020-11-020001013237us-gaap:CustomerRelationshipsMemberfds:TruvalueLabsIncMember2020-11-020001013237us-gaap:CustomerRelationshipsMemberfds:TruvalueLabsIncMember2020-11-022020-11-020001013237fds:AmericasSegmentMember2021-08-310001013237fds:EMEASegmentMember2021-08-310001013237fds:AsiaPacificSegmentMember2021-08-310001013237fds:AmericasSegmentMember2022-05-310001013237fds:EMEASegmentMember2022-05-310001013237fds:AsiaPacificSegmentMember2022-05-310001013237us-gaap:CustomerContractsMember2021-09-012022-05-310001013237us-gaap:CustomerContractsMember2022-05-310001013237us-gaap:CustomerContractsMember2021-08-310001013237srt:MinimumMemberus-gaap:CustomerRelationshipsMember2021-09-012022-05-310001013237us-gaap:CustomerRelationshipsMembersrt:MaximumMember2021-09-012022-05-310001013237us-gaap:CustomerRelationshipsMember2022-05-310001013237us-gaap:CustomerRelationshipsMember2021-08-310001013237srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2021-09-012022-05-310001013237us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MaximumMember2021-09-012022-05-310001013237us-gaap:TechnologyBasedIntangibleAssetsMember2022-05-310001013237us-gaap:TechnologyBasedIntangibleAssetsMember2021-08-310001013237srt:MinimumMemberus-gaap:DevelopedTechnologyRightsMember2021-09-012022-05-310001013237us-gaap:DevelopedTechnologyRightsMembersrt:MaximumMember2021-09-012022-05-310001013237us-gaap:DevelopedTechnologyRightsMember2022-05-310001013237us-gaap:DevelopedTechnologyRightsMember2021-08-310001013237us-gaap:DatabasesMember2021-09-012022-05-310001013237us-gaap:DatabasesMember2022-05-310001013237us-gaap:DatabasesMember2021-08-310001013237srt:MinimumMemberfds:DataContentMember2021-09-012022-05-310001013237fds:DataContentMembersrt:MaximumMember2021-09-012022-05-310001013237fds:DataContentMember2022-05-310001013237fds:DataContentMember2021-08-310001013237us-gaap:TradeNamesMember2021-09-012022-05-310001013237us-gaap:TradeNamesMember2022-05-310001013237us-gaap:TradeNamesMember2021-08-310001013237fds:AcquisitionsExcludingCGSMember2021-09-012022-05-310001013237srt:MinimumMember2022-05-310001013237srt:MaximumMember2022-05-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-05-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-08-310001013237fds:CreditAgreement2022Memberus-gaap:SecuredDebtMember2022-05-310001013237fds:CreditAgreement2022Memberus-gaap:SecuredDebtMember2021-08-310001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-05-310001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-08-310001013237fds:Notes2027Memberus-gaap:SeniorNotesMember2022-05-310001013237fds:Notes2027Memberus-gaap:SeniorNotesMember2021-08-310001013237us-gaap:SeniorNotesMemberfds:Notes2032Member2022-05-310001013237us-gaap:SeniorNotesMemberfds:Notes2032Member2021-08-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:RevolvingCreditFacilityMember2019-03-290001013237fds:RevolvingCreditFacility2019Memberus-gaap:RevolvingCreditFacilityMember2019-08-310001013237fds:RevolvingCreditFacility2019Memberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberus-gaap:SecuredDebtMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:LetterOfCreditMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:BridgeLoanMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-05-312022-05-310001013237srt:MinimumMemberfds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-05-310001013237fds:CreditAgreement2022Memberus-gaap:SecuredDebtMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberus-gaap:SecuredDebtMember2022-03-012022-05-310001013237fds:CreditAgreement2022Memberfds:SecuredOvernightFinancingRateSOFRMemberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberfds:DailySimpleSecuredOvernightFinancingRateSOFRMemberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberfds:DailySimpleSterlingOvernightIndexAverageSONIAMemberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberfds:EuroInterbankOfferedRateEURIBORMemberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2021-09-012022-05-310001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMemberfds:DebtCovenantPeriodOneMember2022-03-010001013237fds:CreditAgreement2022Memberfds:DebtCovenantPeriodTwoMemberus-gaap:RevolvingCreditFacilityMember2022-03-010001013237fds:DebtCovenantPeriodThreeMemberfds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-03-012022-03-010001013237srt:MinimumMemberfds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMember2022-03-010001013237fds:CreditAgreement2022Memberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2022-03-010001013237fds:Notes2027Memberus-gaap:SeniorNotesMember2022-03-010001013237us-gaap:SeniorNotesMemberfds:Notes2032Member2022-03-010001013237us-gaap:SeniorNotesMember2022-03-010001013237us-gaap:SeniorNotesMember2022-03-012022-03-010001013237us-gaap:RevolvingCreditFacilityMember2022-03-012022-05-310001013237us-gaap:RevolvingCreditFacilityMember2021-03-012021-05-310001013237us-gaap:RevolvingCreditFacilityMember2021-09-012022-05-310001013237us-gaap:RevolvingCreditFacilityMember2020-09-012021-05-310001013237us-gaap:RevolvingCreditFacilityMember2022-05-310001013237us-gaap:RevolvingCreditFacilityMember2021-08-310001013237fds:SoftwareSubscriptionAgreementMember2021-12-012022-02-280001013237fds:HostingContractMember2022-03-012022-05-310001013237fds:HostingContractMember2021-12-012022-02-280001013237fds:HostingContractMember2021-08-310001013237fds:SupplierTwoMemberus-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsTotalMember2021-09-012022-05-310001013237fds:SupplierOneMemberus-gaap:SupplierConcentrationRiskMemberus-gaap:CostOfGoodsTotalMember2021-09-012022-05-310001013237us-gaap:RestrictedStockMember2021-09-012022-05-310001013237us-gaap:RestrictedStockMember2020-09-012021-05-3100010132372021-11-3000010132372021-09-012021-11-3000010132372021-12-012022-02-2800010132372020-11-3000010132372020-09-012020-11-3000010132372020-12-012021-02-280001013237us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-05-310001013237us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-08-310001013237us-gaap:AccumulatedTranslationAdjustmentMember2022-05-310001013237us-gaap:AccumulatedTranslationAdjustmentMember2021-08-310001013237us-gaap:EmployeeStockOptionMember2022-03-012022-05-310001013237us-gaap:EmployeeStockOptionMember2021-09-012022-05-310001013237us-gaap:EmployeeStockOptionMember2021-03-012021-05-310001013237us-gaap:EmployeeStockOptionMember2020-09-012021-05-310001013237us-gaap:PerformanceSharesMember2021-09-012022-05-310001013237us-gaap:PerformanceSharesMember2022-03-012022-05-310001013237us-gaap:PerformanceSharesMember2020-09-012021-05-310001013237us-gaap:PerformanceSharesMember2021-03-012021-05-310001013237us-gaap:EmployeeStockOptionMember2021-11-012021-11-010001013237us-gaap:ShareBasedPaymentArrangementNonemployeeMemberus-gaap:EmployeeStockOptionMember2021-09-012022-05-310001013237us-gaap:ShareBasedPaymentArrangementNonemployeeMemberus-gaap:EmployeeStockOptionMember2022-05-310001013237us-gaap:ShareBasedPaymentArrangementNonemployeeMember2022-01-182022-01-180001013237us-gaap:ShareBasedPaymentArrangementNonemployeeMemberus-gaap:EmployeeStockOptionMember2022-01-182022-01-180001013237us-gaap:RestrictedStockUnitsRSUMember2021-09-012022-05-310001013237us-gaap:PerformanceSharesMember2021-09-012022-05-310001013237fds:RestrictedStockUnitsAndPerformanceSharesMember2021-09-012022-05-310001013237us-gaap:RestrictedStockUnitsRSUMember2021-11-012021-11-010001013237us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMember2022-01-182022-01-180001013237us-gaap:EmployeeStockMember2021-09-012022-05-310001013237us-gaap:EmployeeStockMember2022-05-310001013237us-gaap:EmployeeStockMember2022-03-012022-05-310001013237us-gaap:EmployeeStockMember2021-03-012021-05-310001013237us-gaap:EmployeeStockMember2020-09-012021-05-31
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________
Form 10-Q
_________________________________________________
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______to ______

Commission File Number: 1-11869
_________________________________________________
FACTSET RESEARCH SYSTEMS INC.
(Exact name of registrant as specified in its charter)
fds-20220531_g1.jpg
_________________________________________________
Delaware13-3362547
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
45 Glover Avenue, Norwalk, Connecticut
06850
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (203) 810-1000

Former name, former address and former fiscal year, if changed since last report: None
_________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbols(s)Name of each exchange on which registered
Common Stock, $0.01 Par ValueFDSNew York Stock Exchange LLC
The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer x   Accelerated filer ☐   Non-accelerated filer ☐   Smaller reporting company    Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
The number of shares outstanding of the registrant’s common stock, $.01 par value, as of June 24, 2022 was 37,979,642.


FactSet Research Systems Inc.
Form 10-Q
For the Quarter Ended May 31, 2022
Index
Page
Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2022 and 2021
Consolidated Balance Sheets at May 31, 2022 and August 31, 2021
For additional information about FactSet Research Systems Inc. and access to its Annual Reports to Stockholders and Securities and Exchange Commission filings, free of charge, please visit FactSet’s website (https://investor.factset.com). Any information on or linked from the website is not incorporated by reference into this Quarterly Report on Form 10-Q.










2

Special Note Regarding Forward-Looking Statements
FactSet Research Systems Inc. has made statements under the captions Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Part II, Item 1A. Risk Factors, and in other sections of this Quarterly Report on Form 10-Q for the three and nine months ended May 31, 2022, that are forward-looking statements. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "intends," "projects," "indicates," "predicts," "potential," or "continue," and similar expressions.
These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance and anticipated trends in our business. These statements are only predictions based on our current expectations, estimates, forecasts and projections about future events. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. There are many important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the numerous factors discussed under Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended August 31, 2021, that should be specifically considered.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Forward-looking statements speak only as of the date they are made, and actual results could differ materially from those anticipated in forward-looking statements. We do not intend, and are under no duty, to update any of these forward-looking statements after the date of this Quarterly Report on Form 10-Q to reflect actual results, future events or circumstances, or revised expectations.
We intend that all forward-looking statements we make will be subject to safe harbor protection of the federal securities laws as found in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

3

PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FactSet Research Systems Inc.
CONSOLIDATED STATEMENTS OF INCOME – Unaudited
Three Months EndedNine Months Ended
May 31,May 31,
(In thousands, except per share data)
2022202120222021
Revenues$488,751 $399,558 $1,344,595 $1,179,551 
Operating expenses
Cost of services222,618 205,257 629,162 588,868 
Selling, general and administrative119,881 76,599 309,185 235,818 
Long-lived asset impairments48,998  62,985  
Total operating expenses391,497 281,856 1,001,332 824,686 
Operating income97,254 117,702 343,263 354,865 
Other income (expense), net
Interest expense, net(12,051)(1,839)(15,218)(4,682)
Other income (expense), net77 (1,587)(879)(1,009)
Income before income taxes85,280 114,276 327,166 349,174 
Provision for income taxes10,370 13,597 34,671 50,646 
Net income$74,910 $100,679 $292,495 $298,528 
Basic earnings per common share$1.97 $2.66 $7.76 $7.87 
Diluted earnings per common share$1.93 $2.62 $7.58 $7.73 
Basic weighted average common shares37,934 37,806 37,716 37,910 
Diluted weighted average common shares38,720 38,488 38,607 38,602 
The accompanying notes are an integral part of these Consolidated Financial Statements.










4

FactSet Research Systems Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – Unaudited
Three Months EndedNine Months Ended
May 31,May 31,
(In thousands)
2022202120222021
Net income$74,910 $100,679 $292,495 $298,528 
Other comprehensive income (loss), net of tax
Net unrealized gain (loss) on cash flow hedges*810 1,017 5,620 2,204 
Foreign currency translation adjustment (22,096)8,221 (43,792)17,831 
Other comprehensive income (loss)(21,286)9,238 (38,172)20,035 
Comprehensive income$53,624 $109,917 $254,323 $318,563 
*For the three and nine months ended May 31, 2022, the net unrealized gain on cash flow hedges were net of a tax expense of $1,350 thousand and a tax expense of $1,819 thousand, respectively. For the three and nine months ended May 31, 2021, the net unrealized gain on cash flow hedges were net of a tax expense of $344 thousand and a tax expense of $746 thousand, respectively.
The accompanying notes are an integral part of these Consolidated Financial Statements.

5

FactSet Research Systems Inc.
CONSOLIDATED BALANCE SHEETS – Unaudited
(In thousands, except share data)
May 31, 2022August 31, 2021
ASSETS
Cash and cash equivalents$526,966 $681,865 
Investments33,580 35,984 
Accounts receivable, net of reserves of $3,387 at May 31, 2022 and $6,431 at August 31, 2021
226,488 151,187 
Prepaid taxes31,366 13,917 
Prepaid expenses and other current assets55,070 50,625 
Total current assets873,470 933,578 
Property, equipment and leasehold improvements, net85,625 131,377 
Goodwill978,860 754,205 
Intangible assets, net1,912,738 134,986 
Deferred taxes3,262 2,250 
Lease right-of-use assets, net176,884 239,064 
Other assets37,725 29,480 
TOTAL ASSETS$4,068,564 $2,224,940 
LIABILITIES
Accounts payable and accrued expenses$100,319 $85,777 
Current lease liabilities30,757 31,576 
Accrued compensation78,483 104,403 
Deferred revenues169,361 63,104 
Dividends payable33,795 30,845 
Total current liabilities412,715 315,705 
Long-term debt2,105,142 574,535 
Deferred taxes14,973 14,752 
Deferred revenues, non-current8,172 8,394 
Taxes payable29,095 30,279 
Long-term lease liabilities227,047 259,980 
Other liabilities3,698 4,942 
TOTAL LIABILITIES$2,800,842 $1,208,587 
Commitments and contingencies (see Note 13)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued
$ $ 
Common stock, $0.01 par value, 150,000,000 shares authorized, 41,572,771 and 41,163,192 shares issued, 37,971,366 and 37,615,419 shares outstanding at May 31, 2022 and August 31, 2021, respectively
416 412 
Additional paid-in capital1,163,081 1,048,305 
Treasury stock, at cost: 3,601,405 and 3,547,773 shares at May 31, 2022 and August 31, 2021, respectively
(927,818)(905,917)
Retained earnings1,109,177 912,515 
Accumulated other comprehensive loss(77,134)(38,962)
TOTAL STOCKHOLDERS’ EQUITY$1,267,722 $1,016,353 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$4,068,564 $2,224,940 
The accompanying notes are an integral part of these Consolidated Financial Statements.
6

FactSet Research Systems Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
Nine Months Ended
May 31,
(in thousands)20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income$292,495 $298,528 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization60,176 48,185 
Amortization of lease right-of-use assets32,936 32,241 
Stock-based compensation expense40,604 33,356 
Deferred income taxes(5,488)(2,271)
Impairment charge62,985  
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of reserves(39,005)(6,795)
Accounts payable and accrued expenses15,292 (1,712)
Accrued compensation(23,992)(11,066)
Deferred fees4,091 8,898 
Taxes payable, net of prepaid taxes(18,552)8,766 
Lease liabilities, net(35,961)(31,156)
Other, net1,343 (6,725)
Net cash provided by operating activities386,924 370,249 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, equipment, leasehold improvements and internal-use software(35,950)(47,414)
Acquisition of businesses, net of cash and cash equivalents acquired(1,981,641)(41,916)
Purchases of investments(678)(1,250)
Proceeds from maturity or sale of investments 2,176 
Net cash used in investing activities(2,018,269)(88,404)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt2,238,355  
Repayments of debt(700,000) 
Payments of debt issuance costs(9,736) 
Dividend payments(92,334)(87,144)
Proceeds from employee stock plans74,173 46,962 
Repurchases of common stock(18,639)(172,210)
Other financing activities(3,263)(2,366)
Net cash provided by / (used in) financing activities1,488,556 (214,758)
Effect of exchange rate changes on cash and cash equivalents(12,110)5,648 
Net (decrease) increase in cash and cash equivalents(154,899)72,735 
Cash and cash equivalents at beginning of period681,865 585,605 
Cash and cash equivalents at end of period$526,966 $658,340 
The accompanying notes are an integral part of these Consolidated Financial Statements.

7

FactSet Research Systems Inc.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY- Unaudited
For the Three Months Ended May 31, 2022
(in thousands, except share data)Common StockAdditional
Paid-in
Capital
Treasury StockRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesAmount
Balance as of February 28, 202241,485,261 $415 $1,131,166 3,601,395 $(927,814)$1,068,062 $(55,848)$1,215,981 
Net income74,910 74,910 
Other comprehensive income (loss)(21,286)(21,286)
Common stock issued for employee stock plans87,486 1 17,248 — — 17,249 
Vesting of restricted stock24 — 10 (4)(4)
Repurchases of common stock 
Stock-based compensation expense14,667 14,667 
Dividends declared(33,795)(33,795)
Balance as of May 31, 202241,572,771 $416 $1,163,081 3,601,405 $(927,818)$1,109,177 $(77,134)$1,267,722 
For the Nine Months Ended May 31, 2022
(in thousands, except share data)Common StockAdditional
Paid-in
Capital
Treasury StockRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesAmount
Balance as of August 31, 202141,163,192 $412 $1,048,305 3,547,773 $(905,917)$912,515 $(38,962)$1,016,353 
Net income292,495 292,495 
Other comprehensive income (loss)(38,172)(38,172)
Common stock issued for employee stock plans391,195 4 74,172 260 (128)74,048 
Vesting of restricted stock18,384 — 7,172 (3,134)(3,134)
Repurchases of common stock46,200 (18,639)(18,639)
Stock-based compensation expense40,604 40,604 
Dividends declared(95,833)(95,833)
Balance as of May 31, 202241,572,771 $416 $1,163,081 3,601,405 $(927,818)$1,109,177 $(77,134)$1,267,722 



8

For the Three Months Ended May 31, 2021
(in thousands, except share data)Common StockAdditional
Paid-in
Capital
Treasury StockRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesAmount
Balance as of February 28, 202140,943,660 $409 $989,918 3,098,662 $(753,954)$772,591 $(28,496)$980,468 
Net income100,679 100,679 
Other comprehensive income9,238 9,238 
Common stock issued for employee stock plans103,912 1 18,434 18,435 
Vesting of restricted stock52 — 22 (7)(7)
Repurchases of common stock178,100 (57,571)(57,571)
Stock-based compensation expense11,029 11,029 
Dividends declared(30,972)(30,972)
Balance as of May 31, 202141,047,624 $410 $1,019,381 3,276,784 $(811,532)$842,298 $(19,258)$1,031,299 
For the Nine Months Ended May 31, 2021
(in thousands, except share data)Common StockAdditional
Paid-in
Capital
Treasury StockRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar ValueSharesAmount
Balance as of August 31, 202040,767,708 $408 $939,067 2,737,456 $(636,956)$633,149 $(39,293)$896,375 
Net income298,528 298,528 
Other comprehensive loss20,035 20,035 
Common stock issued for employee stock plans260,921 2 46,959 318 (104)46,857 
Vesting of restricted stock18,995 — 7,151 (2,262)(2,262)
Repurchases of common stock531,859 (172,210)(172,210)
Stock-based compensation expense33,355 33,355 
Dividends declared(89,379)(89,379)
Balance as of May 31, 202141,047,624 $410 $1,019,381 3,276,784 $(811,532)$842,298 $(19,258)$1,031,299 
The accompanying notes are an integral part of these Consolidated Financial Statements.

9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FactSet Research Systems Inc.
May 31, 2022
(Unaudited)
10


1. DESCRIPTION OF BUSINESS
FactSet Research Systems Inc. and its wholly-owned subsidiaries (collectively, "we," "our," "us," the "Company" or "FactSet") is a global financial data and analytics company with an open and flexible digital platform which focuses on driving the investment community to see more, think bigger, and do its best work. Our strategy is to build the leading open content and analytics platform that delivers a differentiated advantage for our clients’ success.
For over 40 years, the FactSet platform has delivered expansive data, sophisticated analytics, and flexible technology that global financial professionals need to power their critical investment workflows. Approximately 174,000 investment professionals including asset managers, asset owners, bankers, wealth managers, corporate users, private equity and venture capital professionals, and others use our personalized solutions to identify opportunities, explore ideas, and gain a competitive advantage. Our solutions span investment research, portfolio construction and analysis, trade execution, performance measurement, risk management, and reporting across the investment lifecycle.
We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas, as well as offering them the capabilities to analyze, monitor and manage their portfolios. We combine dedicated client service with open and flexible technology offerings, such as a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions, and application programming interfaces ("APIs"). We are a central figure within the global securities marketplace and a foundation for security master files relied on by critical front, middle and back-office functions around the world through CUSIP Global Services ("CGS"). Our revenues are primarily derived from subscriptions to our products and services such as workstations, portfolio analytics, and market data.
We advance our industry by comprehensively understanding our clients’ workflows, solving their most complex challenges, and helping them achieve their goals. By providing them with the leading open content and analytics platform, an expansive universe of connected data they can trust, next-generation workflow support designed to help them grow and see their next best action, and the industry’s most committed service specialists, we put our clients in a position to outperform.
We are focused on growing our business through three reportable segments ("segments"): the Americas, EMEA and Asia Pacific. Refer to Note 17, Segment Information, for further information. Within each of our segments, we deliver insight and information through our three workflows: Research & Advisory Solutions; Analytics & Trading Solutions; and Content & Technology Solutions ("CTS").
2. BASIS OF PRESENTATION
We conduct business globally and manage our business on a geographic basis. The accompanying unaudited Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements; as such, the information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2021. The accompanying Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated.
In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all normal recurring adjustments, transactions or events discretely impacting the interim periods considered necessary to present fairly our results of operations, financial position, cash flows and equity.
Use of Estimates
The preparation of our Consolidated Financial Statements and related disclosures, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Significant estimates may have been made in areas that include income taxes, stock-based compensation, the valuation of goodwill and allocation of purchase price to acquired assets and liabilities, useful lives and impairments of long-lived tangible and intangible assets and reserves for litigation and other contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.
11

3. RECENT ACCOUNTING PRONOUNCEMENTS
As of May 31, 2022, we implemented all applicable new accounting standards and updates issued by the Financial Accounting Standards Board ("FASB") that were in effect. There were no new standards or updates adopted during the three and nine months ended May 31, 2022 that had a material impact on our Consolidated Financial Statements.
New Accounting Standards or Updates Recently Adopted 
Income Tax Simplification
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740); Simplifying the Accounting for Income Taxes, to simplify various aspects related to accounting for income taxes, eliminating certain exceptions to the general principles in accounting for income taxes related to intraperiod tax allocation, simplifying when companies recognize deferred taxes in an interim period, and clarifying certain aspects of the current guidance to promote consistent application. We have adopted this standard effective September 1, 2021. The adoption of this standard did not have an impact on our Consolidated Financial Statements.
Business Combinations
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (“Topic 606”) rather than adjust them to fair value at the acquisition date. We elected to early adopt this accounting standard in the second quarter of fiscal 2022, with retrospective application to business combinations that occurred in the current fiscal year. Results of operations for quarterly periods prior to September 1, 2021 remain unchanged as a result of the adoption of ASU No. 2021-08. The acquisitions of CGS and Cobalt Software, Inc (“Cobalt”), and all future acquisitions, will be accounted for in accordance with ASU 2021-08. Refer to Note 7, Acquisitions for further information. The adoption of this standard did not have a material impact on our Consolidated Financial Statements.
Recent Accounting Standards or Updates Not Yet Effective
Facilitation of the Effects of Reference Rate Reform on Financial Reporting
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to provide optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by the anticipated transition from the London Interbank Offered Rate ("LIBOR"). As a result of the reference rate reform initiative, certain widely used reference rates such as LIBOR are expected to be discontinued. The guidance is designed to simplify how entities account for contracts, such as receivables, debt, leases, derivative instruments and hedging, that are modified to replace LIBOR or other benchmark interest rates with new rates. The guidance is effective upon issuance and may be applied through December 31, 2022.
On March 1, 2022, we repaid in full and terminated the 2019 Credit Agreement, which bore interest based on the LIBOR rate. Concurrently, on March 1, 2022, we entered into the 2022 Credit Agreement, which bears interest based on rates other than LIBOR. As such, the adoption of this standard will not have an impact on our Consolidated Financial Statements.
Refer to Note 12, Debt for definitions of these terms and more information on the 2019 Credit Agreement and 2022 Credit Agreement.
No other new accounting pronouncements issued or effective as of May 31, 2022 have had, or are expected to have, a material impact on our Consolidated Financial Statements.
4. REVENUE RECOGNITION
We derive most of our revenues by providing client access to our hosted proprietary data and analytics platform which can include various combinations of products, content and services available over the contractual term (referred to as the "hosted platform"). The hosted platform is a subscription-based service that consists primarily of providing client access to products, content and services including workstations, portfolio analytics and market data. We also provide subscription access to a database of universally recognized identifiers reflecting differentiating characteristics for issuers and their financial instruments (referred to as the "identifier platform").
We determined that the majority of each of our hosted platform and identifier platform services represents a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of
12

transfer to the client. We also determined the primary nature of the promise to the client is to provide daily access to each of these data and analytics platforms. These platforms provide integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the services and products offered by us, we apply an output time-based measure of progress as the client is simultaneously receiving and consuming the benefits of the platform. We record revenues for these contracts using the over-time revenue recognition model as a client is invoiced or performance is satisfied.
We do not consider payment terms as a performance obligation for clients with contractual terms that are one year or less and we have elected the practical expedient.
Contracts with clients can include certain fulfillment costs, comprised of up-front costs to allow for the delivery of services and products, which are recoverable. Fulfillment costs are recognized as an asset, with the current portion recorded in the Prepaid expenses and other current assets and the non-current portion recorded in Other assets, based on the term of the license period. The fulfillment costs are amortized consistent with the associated revenues for providing the services. There are no significant judgments that would impact the timing of revenue recognition. The majority of client contracts have a duration of one year or the amount we are entitled to receive corresponds directly with the value of performance obligations completed to date, and therefore, we do not disclose the value of the remaining unsatisfied performance obligations. 
Disaggregated Revenues 
We disaggregate revenues from contracts with clients by our segments which consist of the Americas, EMEA and Asia Pacific. We believe these segments are reflective of how we manage our business and the markets in which we serve and best depict the nature, amount, timing and uncertainty of revenues and cash flows related to contracts with clients. Refer to Note 17, Segment Information, for further information. 
The following table presents this disaggregation by segment:
 
Three Months EndedNine Months Ended
May 31,May 31,
(in thousands)
2022202120222021
Americas$309,740 $253,786 $850,312 $746,112 
EMEA
128,326 106,833 357,920 318,103 
Asia Pacific50,685 38,939 136,363 115,336 
Total Revenues$488,751 $399,558 $1,344,595 $1,179,551 
5. FAIR VALUE MEASURES
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. We consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. 
Fair Value Hierarchy 
The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels. We have categorized our cash equivalents, investments and derivatives within the fair value hierarchy as follows: 
Level 1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. These Level 1 assets and liabilities include our corporate money market funds that are classified as cash equivalents. 
Level 2 – applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in
13

markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Our mutual funds and derivative instruments are classified as Level 2. 
Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
(a) Assets and Liabilities Measured at Fair Value on a Recurring Basis 
The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis as of May 31, 2022 and August 31, 2021. We did not have any transfers between levels of fair value measurements during the periods presented. We held no Level 3 assets or liabilities measured at fair value on a recurring basis as of May 31, 2022 or August 31, 2021.
 
Fair Value Measurements as of May 31, 2022
(in thousands)Level 1Level 2Total
Assets
 
 
 
Corporate money market funds (1)
$237,803 $ $237,803 
Mutual funds (2)
 33,580 33,580 
Derivative instruments (3)
 8,605 8,605 
Total assets measured at fair value$237,803 $42,185 $279,988 
Liabilities
Derivative instruments (3)
$ $3,963 $3,963 
Total liabilities measured at fair value$ $3,963 $3,963 
 
Fair Value Measurements as of August 31, 2021
(in thousands)Level 1Level 2Total
Assets
 
 
 
Corporate money market funds (1)
$232,519 $ $232,519 
Mutual funds (2)
 35,984 35,984 
Derivative instruments (3)
 1,384 1,384 
Total assets measured at fair value$232,519 $37,368 $269,887 
Liabilities
Derivative instruments (3)
$ $4,181 $4,181 
Total liabilities measured at fair value$ $4,181 $4,181 

1.Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents within the Consolidated Balance Sheets.
2.Our mutual funds have a fair value based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of the underlying investments is based on observable inputs. Our mutual funds are classified as Level 2 and are included in Investments (short-term) within the Consolidated Balance Sheets.
3.Our derivative instruments include our foreign exchange forward contracts and interest rate swap agreements. We utilize the income approach to measure fair value for our foreign exchange forward contracts. The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads, and are classified as Level 2 assets. To estimate fair value for our interest rate swap agreements, we utilize a present value of future cash flows, leveraging a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. Refer to Note 6, Derivative Instruments, for more information on our derivative instruments designed as cash flow hedges and their classification within the Consolidated Balance Sheets.
14

(b) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
Assets and liabilities that are measured at fair value on a non-recurring basis relate primarily to our tangible fixed assets, lease right-of-use ("ROU") assets, goodwill and intangible assets. The fair values of these non-financial assets and liabilities are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparable information, and discounted cash flow projections. These non-financial assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill.
During the three and nine months ended May 31, 2022, we incurred an impairment charge of $48.8 million and $62.2 million, respectively, related to our lease ROU assets and Property, equipment and leasehold improvements associated with vacating certain leased office space. For those locations we anticipate subleasing, we estimated the fair value of the lease ROU assets as of the cease use date, using a market approach, based on expected future cash flows from sublease income. To complete this assessment we relied on certain assumptions, which included estimates of the rental rate, period of vacancy, incentives and annual rent increases. We fully impaired the lease ROU assets for locations we will not sublease and substantially all the Property, equipment and leasehold improvements associated with the related vacated leased office space as there are no expected cash flows related to these items. Due to the subjective nature of the unobservable inputs used, the fair value measurement for the asset impairments are classified within Level 3 of the fair value hierarchy.
(c) Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only 
We elected not to carry our Long-term debt at fair value. The carrying value of our Long-term debt is net of related unamortized discount and debt issuance costs.
The fair value of our Senior Notes is estimated based on quoted prices in active markets as of the reporting date, given that the Senior Notes are publicly traded, which are considered Level 1 inputs. The fair value of our 2022 Credit Facilities is estimated based on quoted market prices for similar instruments, adjusted for unobservable inputs to ensure comparability to our investment rating, maturity terms and principal outstanding, which are considered Level 3 inputs.
The fair value of our 2019 Revolving Credit Facility approximated its carrying value as it bore interest at a floating interest rate, which is considered a Level 2 input. On March 1, 2022, we repaid in full and terminated the 2019 Credit Agreement.
Refer to Note 12, Debt for definitions of these terms and more information on the Senior Notes, 2022 Credit Facilities, 2019 Revolving Credit Facility and 2019 Credit Agreement.
The following table summarizes the outstanding principal amount, estimated fair value and related hierarchy level, unamortized discounts and debt issuance costs and net carrying value of our debt as of May 31, 2022:
May 31, 2022August 31, 2021
(in thousands)Fair Value HierarchyPrincipal AmountEstimated Fair ValuePrincipal AmountEstimated Fair Value
2027 NotesLevel 1$500,000 $475,275 $ $ 
2032 NotesLevel 1500,000 451,730   
2022 Term FacilityLevel 3875,000 872,813   
2022 Revolving FacilityLevel 3250,000 248,125   
2019 Revolving Credit FacilityLevel 2  575,000 575,000 
Total principal amount$2,125,000 $2,047,943 $575,000 $575,000 
Total unamortized discounts and debt issuance costs(19,858)(465)
Total net carrying value of debt$2,105,142 $574,535 

15

6. DERIVATIVE INSTRUMENTS
Cash Flow Hedges 
Foreign Currency Forward Contracts
We conduct business outside the U.S. in several currencies including the British Pound Sterling, Indian Rupee, Euro, and Philippine Peso. As such, we are exposed to movements in foreign currency exchange rates. We utilize derivative instruments (foreign currency forward contracts) to manage the exposures related to the effects of foreign exchange rate fluctuations and reduce the volatility of earnings and cash flows associated with changes in foreign currency. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure is committed to, and the availability, effectiveness, and cost of derivative instruments. Derivative instruments are only utilized for risk management purposes and are not used for speculative or trading purposes. We limit counterparties to credit-worthy financial institutions. Refer to Note 13, Commitments and Contingencies – Concentrations of Credit Risk, for further discussion on counterparty credit risk. 
In designing a specific hedging approach, we considered several factors, including offsetting exposures, the significance of exposures, the forecasting of risk and the potential effectiveness of the hedge. The gains and losses on foreign currency forward contracts offset the variability in operating expenses associated with currency movements. The changes in fair value for these foreign currency forward contracts are initially reported as a component of Accumulated Other Comprehensive Loss ("AOCL") and subsequently reclassified into Operating expenses when the hedge is settled. There was no discontinuance of cash flow hedges during the three and nine months ended May 31, 2022 or May 31, 2021, and as such, no corresponding gains or losses related to changes in the value of our contracts were reclassified into earnings prior to settlement. 
As of May 31, 2022, we maintained foreign currency forward contracts to hedge a portion of our exposures primarily related to the British Pound Sterling, Indian Rupee, Euro and Philippine Peso. We entered into a series of forward contracts to mitigate our currency exposure ranging from 25% to 75%, as of May 31, 2022, over their respective hedged periods. The current foreign currency forward contracts are set to mature at various points between the fourth quarter of fiscal 2022 through the third quarter of fiscal 2023.
As of May 31, 2022, the gross notional value of foreign currency forward contracts to purchase Philippine Pesos and Indian Rupees with U.S. dollars was ₱1.4 billion and Rs2.6 billion, respectively. The gross notional value of foreign currency forward contracts to purchase Euros and British Pound Sterling with U.S. dollars was €37.4 million and £41.2 million, respectively.
Swap Agreement
2020 Swap Agreement
On March 5, 2020, we entered into an interest rate swap agreement ("2020 Swap Agreement") with a notional amount of $287.5 million. The 2020 Swap Agreement hedged a portion of our then outstanding floating LIBOR rate debt with a fixed interest rate of 0.7995% to mitigate our interest rate exposure. On March 1, 2022, we terminated the 2020 Swap Agreement, which resulted in a one-time benefit of $3.5 million recognized in Interest expense, net in the Consolidated Statements of Income during the third quarter of fiscal 2022, based on its fair market value.
2022 Swap Agreement
On March 1, 2022, we entered into an interest rate swap agreement ("2022 Swap Agreement") with a notional amount of $800.0 million. The 2022 Swap Agreement hedges a portion of our outstanding floating Secured Overnight Financing Rate ("SOFR") rate debt with a fixed interest rate of 1.162% to maintain an intended fixed to floating interest rate ratio. The notional amount of the 2022 Swap Agreement will decline by $100.0 million on a quarterly basis, to align with our expected debt balances, beginning May 31, 2022 and maturing on February 28, 2024. As of May 31, 2022, the notional amount of the 2022 Swap Agreement was $700.0 million.
We have designated and accounted for this instrument as a cash flow hedge with the unrealized gains or losses on the 2022 Swap Agreement recorded in AOCL in the Consolidated Balance Sheets. Realized gains or losses are subsequently reclassified into Interest expense, net in the Consolidated Statements of Income when settled. Since its inception on March 1, 2022 and through May 31, 2022, the interest rate swap was considered highly effective. Refer to Note 12, Debt, for further discussion of the 2022 Credit Facilities.
16

Refer to Interest Rate Risk in Part I, Item 3 of this Quarterly Report on Form 10-Q for further discussion of our exposure to interest rate risk on our long-term debt outstanding.
The following is a summary of the gross notional values of the derivative instruments:

(in thousands)
Gross Notional Value
May 31, 2022August 31, 2021
Foreign currency forward contracts$156,097 $154,728 
Interest rate swap agreement700,000 287,500 
Total cash flow hedges$856,097 $442,228 

Fair Value of Derivative Instruments
The following is a summary of the fair values of the derivative instruments:
Fair Value of Derivative Instruments
(in thousands)Derivative AssetsDerivative Liabilities
Derivatives designated as hedging instrumentsBalance Sheet ClassificationMay 31, 2022August 31, 2021Balance Sheet ClassificationMay 31, 2022August 31, 2021
Foreign currency forward contractsPrepaid expenses and other current assets$554 $1,384 Accounts payable and accrued expenses$3,963 $1,201 
Interest rate swap agreementPrepaid expenses and other current assets5,447  Accounts payable and accrued expenses 1,934 
Other assets2,604  Other liabilities 1,045 
Total cash flow hedges$8,605 $1,384 $3,963 $4,181 

All derivatives were designated as hedging instruments as of May 31, 2022 and August 31, 2021.
Derivatives in Cash Flow Hedging Relationships
The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended May 31, 2022 and May 31, 2021, respectively:

Gain (Loss) Reclassified in AOCL on DerivativesLocation of Gain (Loss) Reclassified from AOCL into IncomeGain (Loss) Reclassified from AOCL into Income
(in thousands)May 31,May 31,
Derivatives in Cash Flow Hedging Relationships2022202120222021
Foreign currency forward contracts$(4,114)$3,214 SG&A$(2,635)$1,672 
Interest rate swap agreement5,629 (683)Interest expense, net1,990 (502)
Total cash flow hedges$1,515 $2,531 $(645)$1,170 

17

The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the nine months ended May 31, 2022 and May 31, 2021, respectively:
Gain (Loss) Reclassified in AOCL on DerivativesLocation of Gain (Loss) Reclassified from AOCL into IncomeGain (Loss) Reclassified from AOCL into Income
(in thousands)May 31,May 31,
Derivatives in Cash Flow Hedging Relationships2022202120222021
Foreign currency forward contracts$(7,690)$5,341 SG&A$(4,098)$4,558 
Interest rate swap agreement12,007 723 Interest expense, net976 (1,444)
Total cash flow hedges$4,317 $6,064 $(3,122)$3,114 
As of May 31, 2022, our cash flow hedges were effective, with no amount of ineffectiveness recorded in the Consolidated Statements of Income for these designated cash flow hedges, and all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

As of May 31, 2022, we estimate that net pre-tax derivative gains of $2.0 million related to the cash flow hedges included in AOCL will be reclassified into earnings within the next 12 months.
Offsetting of Derivative Instruments
We enter into master netting arrangements designed to permit net settlement of derivative transactions among the respective counterparties, settled on the same date and in the same currency. As of May 31, 2022 and August 31, 2021, there were no material amounts recorded net on the Consolidated Balance Sheets.
7. ACQUISITIONS
During fiscal 2022 and 2021, we completed acquisitions of several businesses, with the most significant cash flows related to the acquisitions of CUSIP Global Services ("CGS"), Cobalt Software, Inc. ("Cobalt") and Truvalue Labs, Inc. ("TVL").
CUSIP Global Services
On March 1, 2022, we completed the acquisition of CGS, previously operated by S&P Global Inc. on behalf of the American Bankers Association ("ABA"), for a cash purchase price of $1.932 billion, inclusive of preliminary working capital adjustments. CGS manages a database of 60 different data elements uniquely identifying more than 50 million global financial instruments. It is the foundation for security master files relied on by critical front, middle and back-office functions. CGS is the exclusive provider of Committee on Uniform Security Identification Procedures ("CUSIP") and CUSIP International Number System ("CINS") identifiers globally and also acts as the official numbering agency for International Securities Identification Number ("ISIN") identifiers in the United States and as a substitute number agency for more than 35 other countries. We anticipate that the CGS acquisition will significantly expand our critical role in the global capital markets. The CGS purchase price was in excess of the fair value of net assets acquired, resulting in the recognition of goodwill. We expect to finalize the allocation of the purchase price for CGS as soon as possible, but in any event, no later than one year from the acquisition date. The preliminary purchase price allocation is subject to change pending a final valuation of the assets and liabilities acquired and the finalization of working capital adjustments.
18

The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:
Acquisition Date Fair ValueAcquisition Date Useful LifeAmortization Method
(in thousands)(in years)
Current assets1
$38,111 
Amortizable intangible assets
Revenues-generating contract1,583,000 36 yearsStraight-line
Client relationships164,000 26 yearsStraight-line
Acquired databases46,000