Company Quick10K Filing
Price302.05 EPS8
Shares39 P/E36
MCap11,778 P/FCF29
Net Debt250 EBIT417
TEV12,028 TEV/EBIT29
TTM 2019-05-31, in MM, except price, ratios
10-Q 2020-05-31 Filed 2020-07-09
10-Q 2020-02-29 Filed 2020-04-09
10-Q 2019-11-30 Filed 2020-01-09
10-K 2019-08-31 Filed 2019-10-30
10-Q 2019-05-31 Filed 2019-07-10
10-Q 2019-02-28 Filed 2019-04-09
10-Q 2018-11-30 Filed 2019-01-09
10-K 2018-08-31 Filed 2018-10-30
10-Q 2018-05-31 Filed 2018-07-10
10-Q 2018-02-28 Filed 2018-04-09
10-Q 2017-11-30 Filed 2018-01-09
10-K 2017-08-31 Filed 2017-10-30
10-Q 2017-05-31 Filed 2017-07-10
10-Q 2017-02-28 Filed 2017-04-10
10-Q 2016-11-30 Filed 2017-01-09
10-K 2016-08-31 Filed 2016-10-31
10-Q 2016-05-31 Filed 2016-07-11
10-Q 2016-02-29 Filed 2016-04-11
10-Q 2015-11-30 Filed 2016-01-11
10-K 2015-08-31 Filed 2015-11-02
10-Q 2015-05-31 Filed 2015-07-10
10-Q 2015-02-28 Filed 2015-04-09
10-Q 2014-11-30 Filed 2015-01-09
10-K 2014-08-31 Filed 2014-10-30
10-Q 2014-05-31 Filed 2014-07-10
10-Q 2014-02-28 Filed 2014-04-09
10-Q 2013-11-30 Filed 2014-01-09
10-K 2013-08-31 Filed 2013-10-30
10-Q 2013-02-28 Filed 2013-04-09
10-Q 2012-11-30 Filed 2013-01-09
10-K 2012-08-31 Filed 2012-10-30
10-Q 2012-05-31 Filed 2012-07-10
10-Q 2012-02-29 Filed 2012-04-09
10-Q 2011-11-30 Filed 2012-01-09
10-K 2011-08-31 Filed 2011-10-31
10-Q 2011-05-31 Filed 2011-07-11
10-Q 2011-02-28 Filed 2011-04-06
10-Q 2010-11-30 Filed 2011-01-10
10-K 2010-08-31 Filed 2010-10-29
10-Q 2010-05-31 Filed 2010-07-09
10-Q 2010-02-28 Filed 2010-04-09
10-Q 2009-11-30 Filed 2010-01-08
8-K 2020-06-23
8-K 2020-06-07
8-K 2020-03-26
8-K 2020-02-29
8-K 2019-12-19
8-K 2019-12-19
8-K 2019-09-26
8-K 2019-07-11
8-K 2019-06-25
8-K 2019-05-28
8-K 2019-04-16
8-K 2019-03-29
8-K 2019-03-26
8-K 2019-02-08
8-K 2018-12-18
8-K 2018-12-18
8-K 2018-11-30
8-K 2018-09-25
8-K 2018-08-31
8-K 2018-07-27
8-K 2018-07-05
8-K 2018-06-26
8-K 2018-05-08
8-K 2018-04-17
8-K 2018-03-27
8-K 2017-12-31

FDS 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 fds-20200531xexx311.htm
EX-31.2 fds-20200531xexx312.htm
EX-32.1 fds-20200531xexx321.htm
EX-32.2 fds-20200531xexx322.htm

FactSet Earnings 2020-05-31

Balance SheetIncome StatementCash Flow
Assets, Equity
Rev, G Profit, Net Income
Ops, Inv, Fin



Washington, D.C. 20549
Form 10-Q
For the quarterly period ended May 31, 2020
For the transition period from ______to ______

Commission File Number: 1-11869
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
(I.R.S. Employer
Identification No.)

45 Glover Avenue, Norwalk, Connecticut
(Address of principal executive office)(Zip Code)
Registrant’s telephone number, including area code: (203) 810-1000
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
The number of shares outstanding of the registrant’s common stock, $.01 par value, as of June 30, 2020 was 37,993,490.
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

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FactSet Research Systems Inc.
Form 10-Q
For the Quarter Ended May 31, 2020
Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2020 and 2019
Consolidated Balance Sheets at May 31, 2020 and August 31, 2019
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 ( Any information on or linked from the website is not incorporated by reference into this Quarterly Report on Form 10-Q.

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FactSet Research Systems Inc.
Three Months EndedNine Months Ended
(In thousands, except per share data)
May 31, 2020May 31, 2019May 31, 2020May 31, 2019
Revenue$374,083  $364,533  $1,110,521  $1,071,068  
Operating expenses
Cost of services170,703  163,832  511,878  495,716  
Selling, general and administrative81,740  83,461  257,560  248,885  
Total operating expenses252,443  247,293  769,438  744,601  
Operating income121,640  117,240  341,083  326,467  
Other expenses
Interest expense, net(2,211) (4,377) (8,003) (13,046) 
Other (expense) income, net(289) 521  (2,090) 255  
Income before income taxes119,140  113,384  330,990  313,676  
Provision for income taxes17,924  21,119  47,131  52,413  
Net income$101,216  $92,265  $283,859  $261,263  
Basic earnings per common share$2.67  $2.41  $7.49  $6.85  
Diluted earnings per common share$2.63  $2.37  $7.36  $6.73  
Basic weighted average common shares37,885  38,223  37,912  38,128  
Diluted weighted average common shares38,481  38,993  38,548  38,807  
The accompanying notes are an integral part of these consolidated financial statements.


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FactSet Research Systems Inc.
Three Months EndedNine Months Ended
(In thousands)
May 31, 2020May 31, 2019May 31, 2020May 31, 2019
Net income
$101,216  $92,265  $283,859  $261,263  
Other comprehensive (loss), net of tax
Net unrealized (loss) gain on cash flow hedges*(3,948) (160) (2,105) 1,405  
Foreign currency translation adjustments
(4,633) (11,326) 1,589  (15,804) 
Other comprehensive (loss)(8,581) (11,486) (516) (14,399) 
Comprehensive income
$92,635  $80,779  $283,343  $246,864  
* For the three and nine months ended May 31, 2020, the net unrealized loss on cash flow hedges were net of a tax benefit of $1,337 thousand and $696 thousand, respectively. For the three and nine months ended May 31, 2019, the net unrealized loss and gain on cash flow hedges were net of a tax benefit of $65 thousand and a tax expense of $702 thousand, respectively.
The accompanying notes are an integral part of these consolidated financial statements.


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FactSet Research Systems Inc.
(In thousands, except share data)
May 31, 2020August 31, 2019
Cash and cash equivalents
$457,707  $359,799  
22,606  25,813  
Accounts receivable, net of reserves of $7,357 at May 31, 2020 and $10,511 at August 31, 2019
151,398  146,309  
Prepaid taxes
42,250  15,033  
Prepaid expenses and other current assets
34,468  36,858  
Total current assets
708,429  583,812  
Property, equipment and leasehold improvements, net
136,655  119,384  
688,484  685,729  
Intangible assets, net
127,207  133,691  
Deferred taxes
Lease right-of-use assets, net254,391  —  
Other assets
32,539  29,943  
TOTAL ASSETS$1,947,705  $1,560,130  
Accounts payable and accrued expenses
$80,048  $79,620  
Current lease liabilities29,225  —  
Accrued compensation
50,114  64,202  
Deferred fees
58,725  47,656  
Dividends payable
29,188  27,445  
Total current liabilities
247,300  218,923  
Long-term debt
574,309  574,174  
Deferred taxes
15,502  16,391  
Deferred fees
8,885  10,088  
Taxes payable
26,816  26,292  
Lease liabilities276,019  —  
Other non-current liabilities5,916  42,006  
$1,154,747  $887,874  
Commitments and contingencies (see Note 16)

Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued
$  $  
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,556,920 and 40,104,192 shares issued, 37,907,127 and 38,117,840 shares outstanding at May 31, 2020 and August 31, 2019, respectively
406  401  
Additional paid-in capital
900,663  806,973  
Treasury stock, at cost: 2,649,793 and 1,986,352 shares at May 31, 2020 and August 31, 2019, respectively
(606,405) (433,799) 
Retained earnings
573,354  373,225  
Accumulated other comprehensive loss
(75,060) (74,544) 
TOTAL STOCKHOLDERS’ EQUITY$792,958  $672,256  
The accompanying notes are an integral part of these consolidated financial statements.

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FactSet Research Systems Inc.
Nine Months Ended
(in thousands)May 31, 2020May 31, 2019
Net income$283,859  $261,263  
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization41,333  43,943  
Stock-based compensation expense28,372  24,135  
Deferred income taxes7,230  1,294  
Loss on sale of assets166  195  
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of reserves(5,091) 3,112  
Accounts payable and accrued expenses10,400  (4,783) 
Accrued compensation(14,154) (23,672) 
Deferred fees9,856  4,826  
Taxes payable, net of prepaid taxes(27,088) (2,232) 
Other, net11,530  (2,757) 
     Net cash provided by operating activities346,413  305,324  
Purchases of property, equipment, leasehold improvements and intangible assets, net of proceeds from dispositions(62,909) (32,906) 
Purchases of investments(2,736) (8,180) 
Proceeds from maturity or sale of investments4,199  11,543  
     Net cash used in investing activities(61,446) (29,543) 
Repurchases of common stock(171,005) (158,294) 
Dividend payments(81,438) (75,769) 
Proceeds from employee stock plans65,323  78,926  
Repayment of debt  (575,000) 
Proceeds from debt   575,000  
Other financing, net(1,592) (901) 
     Net cash used by financing activities(188,712) (156,038) 
Effect of exchange rate changes on cash and cash equivalents1,653  (4,406) 
Net (decrease) increase in cash and cash equivalents97,908  115,337  
Cash and cash equivalents at beginning of period359,799  208,623  
Cash and cash equivalents at end of period$457,707  $323,960  
The accompanying notes are an integral part of these consolidated financial statements.


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FactSet Research Systems Inc.
For the Three Months Ended May 31, 2020
(in thousands, except share data)Common StockAdditional
Treasury StockRetained
SharesPar ValueSharesAmount
Balance as of February 29, 202040,452,351  $405  $875,488  2,603,104  $(593,980) $501,326  $(66,479) $716,760  
Net income101,216  101,216  
Other comprehensive loss(8,581) (8,581) 
Common stock issued for employee stock plans104,388  1  14,832  32  (9) 14,824  
Vesting of restricted stock181  21  (6) (6) 
Repurchases of common stock46,636  (12,410) (12,410) 
Stock-based compensation expense10,343  10,343  
Dividends declared(29,188) (29,188) 
Balance as of May 31, 202040,556,920  $406  $900,663  2,649,793  $(606,405) $573,354  $(75,060) $792,958  
For the Nine Months Ended May 31, 2020
(in thousands, except share data)Common StockAdditional
Treasury StockRetained
SharesPar ValueSharesAmount
Balance as of August 31, 201940,104,192  $401  $806,973  1,986,352  $(433,799) $373,225  $(74,544) $672,256  
Net income283,859  283,859  
Other comprehensive income(516) (516) 
Common stock issued for employee stock plans436,071  5  65,318  75  (20) 65,303  
Vesting of restricted stock16,657    6,230  (1,581) (1,581) 
Repurchases of common stock657,136  (171,005) (171,005) 
Stock-based compensation expense28,372  28,372  
Dividends declared(83,730) (83,730) 
Balance as of May 31, 202040,556,920  $406  $900,663  2,649,793  $(606,405) $573,354  $(75,060) $792,958  


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For the Three Months Ended May 31, 2019
(in thousands, except share data)Common StockAdditional
Treasury Stock
Shares Amount
SharesPar ValueSharesAmount
Balance as of February 28, 201939,690,225  $397  $732,538  1,590,060  $(324,167) $244,388  $(53,635) $599,521  
Net income92,265  92,265  
Other comprehensive income(11,486) (11,486) 
Common stock issued for employee stock plans292,598  3  41,172  41,175  
Vesting of restricted stock  
Repurchases of common stock175,000  (47,555) (47,555) 
Stock-based compensation expense7,995  7,995  
Dividends declared(27,506) (27,506) 
Balance as of May 31, 201939,982,823  $400  $781,705  1,765,060  $(371,722) $309,147  $(65,121) $654,409  
For the Nine Months Ended May 31, 2019
(in thousands, except share data)Common StockAdditional
Treasury Stock
Shares Amount
SharesPar ValueSharesAmount
Balance as of August 31, 201839,264,849  $393  $667,531  1,072,263  $(213,428) $122,843  $(51,439) $525,900  
Net income261,263  261,263  
Other comprehensive loss(14,399) (14,399) 
Common stock issued for employee stock plans642,444  7  90,039  90,046  
Vesting of restricted stock75,530  27,852  (6,155) (6,155) 
Repurchases of common stock664,945  (152,139) (152,139) 
Stock-based compensation expense24,135  24,135  
Dividends declared(76,263) (76,263) 
Cumulative effect of adoption of accounting standards*1,304  717  2,021  
Balance as of May 31, 201939,982,823  $400  $781,705  1,765,060  $(371,722) $309,147  $(65,121) $654,409  
* Includes the cumulative effect of adoption of accounting standards primarily due to both the adoption of the new revenue recognition standard (ASC 606) resulting in a cumulative increase to retained earnings related to certain fulfillment costs and the accounting standard update related to the U.S. Tax Cuts and Jobs Act ("TCJA") providing for the reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects. See Note 4 for additional revenue recognition information.

The accompanying notes are an integral part of these consolidated financial statements.


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FactSet Research Systems Inc.
May 31, 2020
FactSet Research Systems Inc. (the "Company" or "FactSet") is a global provider of integrated financial information, analytical applications and industry-leading services for the investment and corporate communities. For over 40 years, global financial professionals have utilized the Company's content and multi-asset class solutions across each stage of the investment process. FactSet's goal is to provide a seamless user experience spanning idea generation, research, portfolio construction and analysis, trade execution, performance measurement, risk management, and reporting, in which the Company serves the front, middle, and back offices to drive productivity and improved performance. FactSet's flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in an organization. FactSet is focused on growing the business through three segments: the Americas, EMEA (formerly known as Europe), and Asia Pacific. The Company primarily delivers insight and information through the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions ("CTS") and Wealth.
FactSet currently serves financial professionals, which include portfolio managers, investment research professionals, investment bankers, risk and performance analysts, wealth advisors and corporate clients. FactSet provides both insights on global market trends and intelligence on companies and industries, as well as capabilities to monitor portfolio risk and performance and to execute trades. The Company combines dedicated client service with open and flexible technology offerings, such as a configurable desktop and mobile platform, comprehensive data feeds, an open marketplace and digital portals and application programming interfaces (APIs). The Company’s revenue is primarily derived from subscriptions to products and services such as workstations, portfolio analytics, enterprise data, and research management.
FactSet conducts business globally and is managed on a geographic basis. The accompanying unaudited consolidated financial statements and notes of FactSet and its wholly-owned subsidiaries 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. The accompanying consolidated financial statements include the accounts of the Company and its 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 the Company’s results of operations, financial position, cash flows and equity. Certain notes and other information have been condensed or omitted in this Quarterly Report on Form 10-Q, therefore 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 the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed with the Securities and Exchange Commission ("SEC") on October 30, 2019.
The Company has evaluated subsequent events through the date the financial statements were issued.
The Company reclassified certain prior year comparative figures from Interest expense net, to Other expense, net including non-operational foreign exchange gains and losses in the Consolidated Statement of Income to conform to the current year's presentation.

The Company reclassified certain capitalized software from Property, equipment and leasehold improvements, net to Intangible assets, net in the prior year comparative figures in the Consolidated Balance Sheets to conform to the current year's presentation.


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A novel strain of coronavirus, now known as COVID-19 (“COVID-19”), was first reported in December 2019, and it has since extensively impacted the global health and economic environment, with the World Health Organization characterizing COVID-19 as a pandemic on March 11, 2020. FactSet is closely monitoring pandemic-related developments and has taken, and continues to take, numerous steps to address them. Since the situation surrounding the COVID-19 pandemic remains fluid, FactSet is actively managing its response and has assessed potential impacts to its financial position and operating results for the three and nine months ended May 31, 2020. The extent of the effect on the Company’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, and governmental, regulatory and private sector responses, all of which are uncertain and difficult to predict.
As of May 31, 2020, the Company 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 first nine months of fiscal 2020 that had a material impact on the consolidated financial statements other than the new lease accounting standard discussed below. Refer to Note 15 Leases for additional information.
New Accounting Standards or Updates Recently Adopted 
In February 2016, the FASB issued an accounting standard update related to accounting for leases, ASC 842, Leases. The update requires the recognition of lease right-of use (“ROU”) assets and liabilities on the balance sheet and the disclosure of qualitative and quantitative information about leasing arrangements. The guidance also eliminates the requirement for an entity to use bright-line tests in determining lease classification. FactSet adopted the new accounting standard effective September 1, 2019, using a modified retrospective approach to record the required cumulative effect adjustments to the opening balance sheet in the period of adoption, rather than in the earliest comparative period presented. As such, the Company's historical consolidated financial statements were not restated and follow the Company's previous policy under ASC 840, Leases. Refer to FactSet’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019, filed with the SEC on October 30, 2019, for further details of the Company’s policy prior to adoption of ASC 842.

FactSet elected the package of practical expedients permitted under the transition guidance, which permits the Company not to reassess the prior conclusions about lease identification, lease classification, and initial direct costs. FactSet did not elect the use-of-hindsight practical expedient in determining the lease term and in assessing impairment. FactSet elected the practical expedient not to separate lease components from non-lease components but, rather, to combine them into one single lease component. The Company has also elected to apply the short-term lease exception not to recognize lease liabilities and right-of-use assets for leases with a term of 12 months or less. FactSet will recognize lease payments on a straight-line basis over the lease term.

As of November 30, 2019, the Company recognized ROU assets, net of amortization of $217.0 million and corresponding current and non-current lease liabilities of $266.4 million, related primarily to the Company’s real estate leases. There was no material impact to the Company’s Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows and Consolidated Statement of Changes in Stockholders' Equity. Refer to Note 15 Leases for more information regarding the Company's lease accounting.

Hedge Accounting Simplification
During the first quarter of fiscal 2020, FactSet adopted the accounting standard updated issued by the FASB in August 2017, which focused on reducing the complexity of and simplifying the application of hedge accounting. The guidance refines and expands hedge accounting for both financial and nonfinancial risk components, eliminates the need to separately measure and report hedge ineffectiveness, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The adoption of this standard had no impact on the Company's consolidated financial statements.

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Recent Accounting Standards or Updates Not Yet Effective 
Credit Losses on Financial Instruments
In June 2016, the FASB issued an accounting standard that significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today's "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. The guidance will be effective for the Company beginning in the first quarter of fiscal 2021. The Company is currently evaluating the impact of this accounting standard update, but it is not expected to have a material impact on the Company's consolidated financial statements.
Goodwill Impairment Test
In January 2017, the FASB issued an accounting standard update which removes the requirement for companies to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted for any impairment tests performed after January 1, 2017. The adoption of this accounting standard update is not expected to have a material impact on the Company's consolidated financial statements.

Income Tax Simplification
In December 2019, the FASB issued an accounting standard update 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. The guidance will be effective for the Company in the first quarter of fiscal 2022, with early adoption permitted. Most amendments are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the potential impact of adopting the guidance on its consolidated financial statements.

Facilitation of the Effects of Reference Rate Reform on Financial Reporting
In March 2020, the FASB issued an accounting standard to provide optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by the anticipated transition from the LIBOR rate. As a result of the reference rate reform initiative, certain widely used reference rates such as the LIBOR rate 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 the LIBOR rate or other benchmark interest rates with new rates. The guidance is effective upon issuance and may be applied through December 31, 2022. The Company is currently evaluating the impact of this accounting standard, but it is not expected to have a material impact on the Company’s consolidated financial statements.
No other new accounting pronouncements issued or effective as of May 31, 2020, have had or are expected to have a material impact on the Company’s consolidated financial statements.
The Company derives most of its revenue by providing client access to its hosted proprietary data and analytics platform which can include various combinations of products and services available over the contractual term. The hosted platform is a subscription-based service that consists primarily of providing access to products and services including workstations, portfolio analytics, enterprise data, and research management. The Company determined that the subscription-based service 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 transfer to the client. The Company also determined the nature of the promise to the client is to provide daily access to one overall data and analytics platform. This platform provides integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the services and products offered by FactSet, the Company applies an input time-based measure of progress as the client is simultaneously receiving and consuming the benefits of the platform. The Company records revenue for its contracts using the over-time revenue recognition model as a client is invoiced or performance is satisfied. FactSet does not consider payment terms as a performance obligation for clients with contractual terms that are one year or less and the Company has elected the practical expedient.

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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. In connection with the adoption of the revenue recognition standard, fulfillment costs are recognized as an asset, recorded in the Prepaid expenses and other current assets account for the current portion and Other assets for the non-current portion, based on the term of the license period, and amortized consistent with the associated revenue 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 less, or the amount FactSet is entitled to receive corresponds directly with the value of performance obligations completed to date, and therefore, the Company does not disclose the value of the remaining unsatisfied performance obligations. 
Disaggregated Revenue 
The Company disaggregates revenue from contracts with clients by geographic region, which includes the Americas, EMEA and Asia Pacific. FactSet believes these regions are reflective of how the Company manages the business and the markets in which it serves. These regions best depict the nature, amount, timing and uncertainty of revenue and cash flows related to contracts with clients. Refer to Note 8 Segment Information for further information on revenue by geographic region. 
The following table presents this disaggregation of revenue by geography:

Three Months Ended May 31,Nine Months Ended May 31,
(in thousands)
Americas$230,992  $226,961  $695,053  $672,479  
105,420  102,499  308,355  299,197  
Asia Pacific