UNITED

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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Form 10-K

 

☒	☒   Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

ForFor the fiscal yearended August 31, 20182019

 

☐	☐   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

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FACTSET RESEARCHRESEARCH SYSTEMS INC.

(Exact name of Registrant as specified in its charter)

 

 

Delaware (State or other jurisdiction of incorporation or organization)

13-3362547 (I.R.S. Employer Identification No.)

 

601 Merritt 7,Norwalk, Norwalk, Connecticut 06851

(Address of principal executive office, including zip code)

Registrant’s telephone number, including area code: (203) 810-1000

Securities registered pursuant to Section 12(b) of the Act:Common Stock, par value $0.01 per share

Name of each exchange on which registered: New York Stock Exchange and The NASDAQ Stock Market LLC

 

Securities registered pursuant to Section 12(g) of the Act: None

Title of each class	Trading Symbols(s)	Name of each exchange on which registered
Common Stock, $0.01 Par Value	FDS	New York Stock Exchange NASDAQ Global Select Market

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒    No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ☐    No ☒

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 ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically, and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 ☒    No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or 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 ☒	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	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.

☐

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).      Yes ☐    No ☒

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant based upon the closing price of a share of the registrant’s common stock on February 28, 2018,2019, the last business day of the registrant’s most recently completed second fiscal quarter, as reported by the New York Stock Exchange on that date, was $7,767,417,390.

$8,808,676,952.

The number of shares outstanding of the registrant’s common stock, as of October 24, 2018,2019, was 38,037,295.

37,944,709.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement dated October 30, 2018,2019, for the 20182019 Annual Meeting of Stockholders to be held on December 18, 2018,17, 2019, are incorporated by reference into Part III of this Report on Form 10-K where indicated.

 

FACTSET RESEARCH SYSTEMS INC.

FORM 10-K

For The Fiscal Year Ended August 31, 20182019

		Page
PART I Page ITEM 1. Business 3 4 ITEM 1A. Risk Factors 11 13 ITEM 1B. Unresolved Staff Comments 16 18 ITEM 2. Properties 16 18 ITEM 3. Legal Proceedings 18 19 ITEM 4. Mine Safety Disclosures 18 19 PART II     ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19 20 ITEM 6. Selected Financial Data 21 22 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23 24 ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk 46 45 ITEM 8. Financial Statements and Supplementary Data 49 47 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97 90 ITEM 9A. Controls and Procedures 97 90 ITEM 9B. Other Information 97 90 PART III     ITEM 10. Directors, Executive Officers and Corporate Governance 98 91 ITEM 11. Executive Compensation 98 91 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 98 91 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 99 92 ITEM 14. Principal Accounting Fees and Services 99 92 PART IV     ITEM 15. Exhibits, Financial Statement Schedules 93100 ITEM 16. Form 10-K Summary 101 Signatures 95102     Part I ITEM 1. BUSINESS   Business Overview   FactSet Research Systems Inc. (the “Company” or “FactSet”) is a global provider of integrated financial information, analytical applications and industry-leading serviceservices for the investment community.and corporate communities. For over 40 years, global financial professionals have utilized our content and multi-asset class solutions across each stage of the investment process. Our missiongoal is to solveprovide a seamless user experience spanning idea generation, research, portfolio construction, trade execution, performance measurement, risk management, reporting, and portfolio analysis, in which we serve the front, middle, and back offices to drive productivity and improved performance. Our flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in the organization. We are focused on growing our clients’ greatest challenges throughbusiness throughout each of our three segments, the power of collaboration.U.S., Europe, and Asia Pacific. We primarily deliver insight and information to investmentthrough the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions and Wealth. We currently serve financial professionals, through our analytics, service, content, and technology. These professionalswhich include portfolio managers, investment research professionals, investment bankers, risk and performance analysts, wealth advisors, and wealth advisors. From streaming real-timecorporate clients. We provide 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. We combine dedicated client service with open and flexible technology offerings, such as a comprehensive data to historical information, including quotes, estimates, news and commentary, we offer proprietary and third-party content through desktop, web,marketplace, a configurable mobile and off-platform solutions.desktop platform, digital portals and application programming interface (“APIs”). Our broad application suite offers tools and resources including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization and research management solutions. Our revenues arerevenue is primarily derived from subscriptions to products and services such as workstations, analytics, enterprise data, research management, and trade execution.   Corporate History   FactSet was founded in 1978 and has been publicly held since 1996. We are dual listed on the New York Stock Exchange (“NYSE”) and the NASDAQ Stock Market (“NASDAQ”) under the symbol “FDS.” Fiscal 20182019 marked our 40th41st year of operationoperations and while much has changed in ourthe market and technologies,in technology, our focus has always been to provide the best in classbest-in-class products and exceptional client service.   The following timeline depicts the Company’s history since our founding in 1978:   Business Strategy   We provide our clients withAs a premier financial solutions provider for the global standard for delivery, integrationfinancial community, we provide workflow solutions and consumption of our financial data byleading analytical applications across the global investment community.lifecycle to create an open and scalable platform. We maintain flexible, open data and software solutions to bring the front, middle and back officeoffices together to drive productivity and performance throughout the portfolio lifecycle. Our strategy is focused on growing our business throughout each of our three segments, which include the U.S., Europe, and Asia Pacific. We believe this geographical strategy alignment helps us better manage our resources and concentrate on markets that demand our products. The U.S. segment services investment professionals, including financial institutions throughout the Americas. The European and Asia Pacific segments service investment professionals located throughout Europe and the Asia Pacific segment, respectively. To execute on our business strategy of broad-based growth across each geographical segment, we continue to look at ways to create value for our clients by offering data, products and analytical applications within our key workflowsworkflow solutions of Research, Analytics and Trading, Wealth, and Content and Technology Solutions.   Research Solutions   Our Research Solutions workflow (“Research”) workflow offers a powerful data solution thatfocuses on company analysis, idea generation, and research management. The tools within Research provide solutions to analyze public and private companies, generate ideas and discover opportunities with our proprietary data. Research also allows users to monitor the global markets, to gain industry and market insights, and to collaborate on and share information across teams. FactSet combines the global coverage, deep history, and transparency with thousands ofover 1,000 FactSet-sourced and third-party databases integrated in one flexible platform. Our Research workflow has a strong focus on growing the number of users and client types including investment banking, sell-side research, buy-side research, private equity, capital markets, investor relations, and media. This workflow offering is comprised of Core Applications, including Universal Screening, Company & Security Analytics, Industry and Markets, Filings, Ownership, Research, News and our Research Management Solutions (“RMS”).   Analytics and Trading Solutions   Our Analytics and Trading Solutions workflow (“Analytics”Analytics and Trading”) workflow addresses processes around portfolio analytics, risk management and performance measurement and reporting. Ourattribution. Analytics workflow provides investment professionals with in-depth insight, powerful analytics, and comprehensive datasets integrated seamlessly into their portfolios.Trading also focuses on client reporting, portfolio construction, trade execution and order management. The applications within Analytics workflow is driven by FactSet Portfolio Analysis (“PA”) and FactSet’s Multi-Asset Class (“MAC”) risk models. PA is a multi-asset class interactive global solution that includes a flexible, multi-tile interface of reportsTrading are modularized and chartsdeployed to enable a user to make smarter decisions. MAC risk models analyze risk factors across different asset typesfulfill both targeted and classes. We have enhanced our Analytics workflow offering by leveraging client-requested functionality such as fixed income optimization and the Duration Times Spread attribution model. Additionally, includedholistic needs in the front and middle offices. Analytics workflow isand Trading integrates our clients’ proprietary data along with FactSet and third-party content to bring actionable insights to the portfolio management process. Analytics and trading solutions which focus on workflows thatTrading tools are specific foraccessible through a variety of mediums, including the front office serving tradersFactSet workstation and portfolio managers. This offering includes a multi-asset execution management system (“EMS”) platform, as well as compliance and order management functionality. These products are aimed at large asset managers, hedge funds and mid-market customers to provide a combination of automated and intelligent trading workflows.application programming interfaces.   Wealth Solutions   Our Wealth Solutions workflow (“Wealth”) workflow creates solutions that areis specific to the wealth management industry and helpscreates offerings that enable wealth professionals across an entire enterprise, including home office, advisory, and client engagement. Wealth empowers wealth managers to demonstrate value to clients and prospects while protecting and growing their assets with investmentFactSet’s combined solution set of portfolio analytics, market monitoring tools, multi-asset class research and customized client facing digital solutions. Our Research Management Solutions products enable our wealth management advisory services, financial planningclients to increase collaboration and other financial services. Our Wealth workflow offerings include providing end-to-end solutions, focusing on non-equity contentcommunication between Home Office and single security analytics, portfolioAdvisory functions within the firm and risk analytics,deliver consistent and digital strategy.scalable messaging to the clients of the advisor.   Content and Technology Solutions   Our Content and Technology Solutions workflow (“CTS”) workflow is focused on delivering value to our clients in the way they want to consume it. Our goal is to reduce the number of customizations by standardizing and bundling our proprietary data into data feeds. Whether a client needs market, company, or alternative data, our data delivery services provide normalized data through APIs and a direct delivery of local copies of standard data feeds. Our symbology links and aggregates a variety of content sources to ensure consistency, transparency, and data integrity across youra client’s business. The CTS workflow also includes direct access to insight and information outside of the workstation through cloud-based application program interfaces and white label solutions. More specifically, our recent launch of Open:FactSet data marketplace provides access to 25 specialty datasets from FactSet and other data providers in flexible delivery formats.   FactSet Clients   Buy-side We focus on the buy-side workflow across all firm and user types. These clients include portfolio managers, analysts, traders, wealth managers, performance teams and risk and compliance teams at a variety of firms, such as traditional asset managers, wealth advisors, corporations, hedge funds, insurance companies, plan sponsors and fund of funds.   As buy-side clients continue to shift towards multi-asset class investment strategies, we are positioned to be a partner in the space, given our ability to provide enterprise-wide solutions across their entire workflow. We provide solutions across asset classes and at nearly every stage of the investment process by utilizing our workstations, powerful analytics, proprietary content, data feeds and portfolio services. Buy-side clients include portfolio managers, analysts, traders, wealth managers, performance teams and risk and compliance teams at a variety of firms, such as traditional asset managers, wealth advisors, corporations, hedge funds, insurance companies, plan sponsors and fund of funds.   The buy-side annual subscription value (“ASV”) growth rate for fiscal 20182019 was 5.4%4.8%. Buy-side clients accounted for 83.9%83.7% of ASV as of August 31, 2018.2019.   Sell-side   We are a market leaderFactSet delivers comprehensive solutions to sell-side clients including workstation, proprietary and third-party content, productivity tools for Microsoft® Office, FactSet Web and Mobile, and FactSet Partners for research authoring and publishing. Our focus remains on expanding the sell-sidedepth of content offered and we are continuing to expand beyondincreasing workflow efficiency for investment banking, into various other parts of banking institutions. Our clients represent banking & advisory, broker-dealers, consulting, independent research, institutional asset management, private equity, corporate and venture capitalresearch firms. We believe that future growth may be derived from the breadth of solutions we provide to the sell-side across our geographic segments and workflow solutions. Though historically we have focused on selling workstations to banks, over the last few years our emphasis has shifted to focus on selling more differentiated product offerings outside the workstation. We are also expanding our banking user base to commercial banking, equity and fixed income research teams, quantitative analysis groups, compliance and regulatory divisions and sales and trading teams.   The sell-side ASV growth rate for fiscal 20182019 was 7.3%6.3%. Sell-side clients accounted for 16.1%16.3% of ASV as of August 31, 2018.2019.   Client Subscription Growth During fiscal 2019, we added 432 net new clients, increasing the number of clients by 8.4% over the prior year. In the first quarter of fiscal 2019, we changed our client count definition to include clients from the April 2017 acquisition of FDSG. The prior year client count was not restated to reflect this change. We added 34,925 net new users during fiscal 2019, leading to a healthy progression in the number of users in both our buy-side and sell-side clients. ASV Growth   ASV at any given point in time represents the forward-looking revenuesrevenue for the next twelve months from all subscription services currently being supplied to clients and excludes professional servicesservice fees, billed in the last twelve months, which are not subscription-based. Organic ASV excludes ASV from acquisitions and dispositions completed within the last 12 months, and the effects of foreign currency, and professional services fees.   As of August 31, 2018,2019, ASV was $1.46 billion, up from $1.39 billion a year ago. As of August 31, 2019, organic ASV was $1.46 billion, up $74.4$70.2 million or 5.7% organically5.0% from a year ago. This increase in organic ASV was driven bydue to growth amongstacross all of our geographic segments with the majority of growth in the U.S., followed by Asia Pacific and achievements across each ofEurope. ASV growth from our workflow solutions which include Research,was primarily driven by Analytics and Trading, CTS and Wealth. During fiscal 2018, we added 398 new clients, increasing the number of clients by 8.4% over the prior year. We added 3,051 new users during fiscal 2018, leading to a healthy progression in the number of users in both our buy-side and sell-side clients.   The following chart provides a snapshot of FactSet’s historic ASV growth:     Financial Information on Geographic Areas   Operating segments are defined as (i) components of an enterprise that engagehave the following characteristics: (i) it engages in business activities from which theyit may earn revenues and incur expenses, (ii) withits operating results that are regularly reviewed by the enterprise’scompany’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and (iii) for whichits discrete financial information is available. Executive management, along with the CEO, constitute our chief operating decision making group (“CODMG”). Executive management consists of certain executives who directly report to the CEO, includingconsisting of the Chief Financial Officer, Chief Technology and Product Officer, Global Head of Sales and Client Solutions, General Counsel, Chief Human Resources Officer and Head of Analytics &and Trading. The CODMG reviews financial information at the operating segment level and is responsible for making decisions about resources allocated amongst the operating segments based on actual results.   Our operating segments are aligned with how the Company, including its CODMG, manages the business and the demographic markets we serve.in which it serves. Our internal financial reporting structure is based on three segments: the U.S., Europe and Asia Pacific. We believe this alignment helps usto better manage the business and focus on markets that demand our products.serve client needs, as each segment requires financial and economic information specific to their respective markets. Our primary functional groups within the U.S., Europe, and Asia Pacific segments include sales, consulting, data collection, product development and software engineering, which provide global financial and economic information to investment managers, investment banks and other financial services professionals.   The U.S. segment servicesserves investment professionals, including financial institutions throughout the Americas. The EuropeanEurope and Asia Pacific segments serviceserve investment professionals located throughout Europe and the Asia Pacific, segment, respectively. Financial information, including revenues, operating income and long-lived assets related to our operations in each geographic area are presented in Note 7,8, Segment Information, and in the Notes to the Company’s Consolidated Financial Statements included in Item 8.   The U.S. segment has offices in fourteen15 locations, within 13 states throughout the U.S., including our corporate headquarters in Norwalk, Connecticut, as well as two additional offices located in Brazil and Canada. The European segment maintains office locations in Bulgaria, Dubai,UAE (Dubai), England, Finland, France, Germany, Italy, Latvia, Luxembourg, the Netherlands, South Africa, Spain, and Switzerland. The Asia Pacific segment has office locations in Australia, Hong Kong, China, India, Japan, the Philippines, and Singapore. Segment revenues reflectrevenue reflects direct sales to clients based in their respective geographic locations. Each segment records compensation expense including(including stock-based compensation,compensation), amortization of intangible assets, depreciation of furniture and fixtures, amortization of leasehold improvements, communication costs, professional fees, rent expense, travel, marketing, office and other direct expenses.   Expenditures associated with our data centers, third-party data costs and corporate headquarters charges are recorded by the U.S. segment and are not allocated to the other segments. The centers of excellence, which focus primarily on content collection and arecenters, located in India, and the Philippines, and Latvia, benefit all our operating segments, and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenues.revenue.   The following charts depict revenuesrevenue related to our reportable segments. Talent   Since our founding, weWe have built a collaborative culture that recognizes and rewards innovation and offers employees a variety of opportunities and experiences. Our employees are critical to our success and are the reason we continue to execute at a high level. We believe our continued focus on making employee engagement a top priority will help us provide high quality insights and information to clients globally.   As of August 31, 2019, our employee headcount was 9,681, an increase of 1.1% in the last twelve months. Of our total employees, 2,351 are in the U.S., 1,282 in Europe and 6,048 in the Asia Pacific segment. In order to optimize productivity, we have invested in expanding our footprint and talent pool in India and the Philippines, where we now have a combined workforce of over 5,500approximately 5,800 people. As of August 31, 2018, our employee headcount was 9,571, an increase of 5.5% in the last twelve months. Of our total employees, 2,471 are in the U.S., 1,246 in Europe and 5,854 in the Asia Pacific segment. In fiscal 2018,2019, approximately 430 FactSet employees within certain French and German subsidiaries were represented by mandatory works councils, an amount consistent with fiscal 2017.2018. No other employees are represented by collective bargaining agreements.   In December 2018, we appointed Daniel Viens as Chief Human Resources Officer. In May 2018,2019, we announced that Maurizio Nicolelli,John W. Wiseman, the Company’s Chief Financial Officer,Global Head of Sales and Client Solutions, would depart FactSet as of Decemberstep down from his position on June 1, 2019, remaining at the company until August 31, 2018.2019 to assist during the transition. In July 2018,the same announcement, effective June 1, 2019, we announced that Helen L. Shan would join FactSetappointed Franck A.R. Gossieaux as the Company's new Chief Financial Officer beginning in September 2018. Additionally, in July 2018, we announced that Edward Baker-Greene, the Company’s Chief Human Resources Officer would depart FactSet asGlobal Head of November 30, 2018.Sales and Client Solutions.   Third-Party Content   We aggregate content from thousands ofover 1,000 third-party data suppliers, news sources, exchanges, brokers and contributors into our own dedicated single online service, which clients accessthe client accesses to perform their analyses.analysis. We carrylicense content from premier providers of major global exchanges and data providers. We seek to maintain contractual relationships with a minimum of two content providers for each major type of financial data, though certain data sets on which we rely have a limited number of suppliers. We make every effort whento assure that, where reasonable, to locate alternative sources to ensure that weare available. We are not dependent on any one third- partythird-party data supplier.supplier in order to meet the needs of our clients. We have entered into third-party content agreements atof varying lengths, which in some cases can be terminated on one year’s notice, at predefined dates, and in other cases on shorter notice. No single vendor or data supplier represented more than 10% or more of ourFactSet's total data expensescosts during fiscal 2019, with the exception for one vendor, which is a supplier of risk models and portfolio optimizer data to FactSet and represented 11% of FactSet’s data costs in any fiscal year presented.2019.   Data Centers   Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently on our networks and systems. Our global technology infrastructure supports our operations and is designed to facilitate the reliable and efficient processing and delivery of data and analytics to our clients. Our data centers contain multiple layers of redundancy to enhance system performance, including maintaining, processing and storing data at multiple data centers. User connections are load balanced between data centers. In the event of a site failure, equipment problem or localized disaster, the remaining centers have the capacity to handle the additional load. We continue to be focused on maintaining a global technological infrastructure that allows us to support our growing business.   Several years ago, we launched Project NextGenWe are embarking on a set of programs that will increasingly move our systems and applications to evolve away from large mainframe computerscloud computing platforms. We continue to a more distributed environment powered by a vast array of smaller, faster and more cost-effective machines. We operate fully redundant data centers in both Virginia and New Jersey in the U.S. that can handle our entire client capacity. In addition, we maintain a vast private wide area network that provides a high-speed direct link between the client’s local network and the data content and powerful applications found on our mainframe machines.select workloads are migrating to diverse cloud computing regions utilizing premier, market-leading Cloud providers.   The Competitive Landscape   We are a part of the financial information services industry, providing accurate financial information and softwareworkflow solutions to the global investment community. This extremely competitive market is comprised of both large, well-capitalized companies and smaller, niche firms including market data suppliers, news and information providers and many of the content providers that supply us with financial information included in the FactSet workstation. Our largest competitors are Bloomberg L.P., Refinitiv (formerly part of Thomson Reuters), and S&P Global Market Intelligence. Other competitors and competitive products include online database suppliers and integrators and their applications, such as MSCI Inc., Morningstar Inc., BlackRock Solutions and RIMES Technologies Corporation. Many of these firms offer products or services which are similar to those we sell. Our development of our own robust sets of proprietary content combined with our news and quotes offering have resulted in more direct competition with the largest financial data providers.   Despite competing products and services, we enjoy high barriers to entry and believe it would be difficult for another vendor to quickly replicate the extensive databases we currently offer. Through our in-depth analytics and client service, we believe we can offer clients a more completecomprehensive solution with one of the broadest sets of functionalities, through a desktop or mobile user interface or through a standardized or bespoke data feed. In addition, our applications, including our client support and service offerings, are entrenched in the workflow of many financial professionals given the downloading functions and portfolio analysis/screening capabilities offered. We are entrusted with significant amounts of our clients' own proprietary data, including portfolio holdings. As a result, our products have become central to our clients’ investment analysis and decision-making.   Intellectual Property   We have registered trademarks and copyrights for many of our products and services and will continue to evaluate the registration of additional trademarks and copyrights as appropriate. We enter into confidentiality agreements with our employees, clients, data suppliers and vendors. We seek to protect our software,workflow solutions, documentation and other written materials under trade secret, copyright and patent laws. While we do not believe we are dependent on any one of our intellectual property rights, we do rely on the combination of intellectual property rights and other measures to protect our proprietary rights. Despite these efforts, existing intellectual property laws may afford only limited protection.   Research and Product Development Costs   A key aspect of our growth strategy is to enhance our existing products and applications by making them faster with more reliable data. We strive to rapidly to adopt new technology that can improve our products and services. At FactSet we do not have a separate research and product development department, but rather our Product Developmentproduct development and Engineeringengineering departments work closely with our strategists, product managers, sales and other client-facing specialists to identify areas of improvement to provide increased value to our clients. Research and product development costs relate to the salary and benefits for our product development, software engineering and technical support staff. These costs are expensed as incurred within our cost of services as employee compensation. We expect to appropriate a similar percentage of our workforce and associated expenses in future yearsintend to continue to developinvest in the development of new products and enhancements that will allow us to respond quickly to market changes and efficiently meet the needs of our clients efficiently. In fiscal 2018, weclients. We incurred $217.1 million of research and product development costs which was comparable to our spend on similar developmentof $214.7 million, $217.1 million and $215.0 million during fiscal years 20172019, 2018 and 2016,2017, respectively.   Government Regulation   FactSet is subject to reporting requirements, disclosure obligations and other recordkeeping requirements of the Securities and Exchange Commission (“SEC”) and the various local authorities that regulate each location in which we operate. The Company’s P.A.N. Securities, LP, is a member of the Financial Industry Regulatory Authority, Inc. and is a registered broker-dealer under Section 15 of the Securities Exchange Act of 1934. P.A.N. Securities, LP, as a registered broker-dealer, is subject to Rule 15c3-1 under the Securities Exchange Act of 1934, which requires that the Company maintain minimum net capital requirements. The Company claims exemption under Rule 15c3-3(k)(2)(i).   Corporate Contact Information   FactSet was founded as a Delaware corporation in 1978, and its principal executive office is in Norwalk, Connecticut.   Mailing address of the Company’s headquarters: 601 Merritt 7, Norwalk, ConnecticutCT 06851 USAprior to January 1, 2020, and 45 Glover Avenue Norwalk, CT 06850, thereafter   Telephone number: +1 (203) 810-1000   Website address: www.factset.com   Available Information   Through the Investor Relations section of FactSet’s website (https://investor.factset.com), we make available the following filings as soon as practicable after they are electronically filed with, or furnished to, the SEC: the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements for the annual stockholder meetings, Reports on Forms 3, 4 and 5, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended. All such filings are available free of charge.   Additionally, we broadcast live our quarterly earnings calls via the investor relations section of our website. We also provide notifications of news or announcements regarding our financial performance, including SEC filings, investor events, press and earnings releases, and blogs as part of our investor relations website. The contents of this website section are not intended to be incorporated by reference into this Report on Form 10-K or in any other report or document the Company files and any reference to this section of our website is intended to be inactive textual references only.   In addition, the FactSet Code of Business Conduct and Ethics is posted in the Investor Relations section of the Company’s website. The same information is available in print to any stockholder who submits a written request to the Company’s Investor Relations department. Any amendments to or waivers of such code that are required to be publicly disclosed by the applicable exchange rules or the SEC will be posted on our website. The Corporate Governance Guidelines and the charters of each of the committees of the Company’s Board of Directors, including the Audit Committee, Compensation and Talent Committee, and Nominating and Corporate Governance Committee are available on the Investor Relations section of our website. The same information is available in print, free of charge, to any stockholder who submits a written request to our Investor Relations department.   Executive Officers of the Registrant   The following table shows FactSet’s current executive officers:   Name of Officer Age Office Held with the Company  Officer Since Age Office Held with the Company Officer Since F. Philip Snow 54 Chief Executive Officer 2014 55 Chief Executive Officer 2014 Helen L. Shan 50 Executive Vice President and Chief Financial Officer 2018 52 Executive Vice President and Chief Financial Officer 2018 Edward Baker-Greene 55 Senior Vice President, Chief Human Resources Officer 2015 Franck A.R. Gossieaux 49 Executive Vice President, Global Head of Sales and Client Solutions 2019 Rachel R. Stern 54 Executive Vice President, General Counsel and Secretary 2009 Gene D. Fernandez 51 Executive Vice President, Chief Technology and Product Officer 2017 52 Executive Vice President, Chief Technology and Product Officer 2017 Robert J. Robie 39 Executive Vice President, Head of Analytics and Trading Analytics Solutions 2018 41 Executive Vice President, Head of Analytics and Trading 2018 Rachel R. Stern 53 Executive Vice President, General Counsel and Secretary 2009 John W. Wiseman 50 Executive Vice President, Global Head of Sales and Client Solutions 2017 Daniel Viens 62  Senior Vice President, Chief Human Resources Officer 2018 F.Philip Snow–Chief Executive Officer. Mr. Snow was named Chief Executive Officer effective July 1, 2015. Prior to that, Mr. Snow held the title of President. He began his career at FactSet in 1996 as a Consultant, before moving to Asia to hold positions in the Tokyo and Sydney offices. After movingFollowing his move back to the U.S. in 2000, Mr. Snow held various sales leadership roles beforeprior to assuming the role of Senior Vice President, Director of U.S. Investment Management Sales in 2013. Mr. Snow received a B.A.Bachelor of Arts in Chemistry from the University of California at Berkeley and a Master of International Management from the Thunderbird School of Global Management. He holdshas earned the right to use the Chartered Financial Analyst designation and is a member of the CFA Institute.designation.   HelenL.Shan –ExecutiveVice PresidentandChief Financial Officer.Ms. Shan joined FactSet in September 2018 from Marsh and McLennan Companies, where she was CFO for Mercer, one of the world’s leadinga professional services firms.firm. During her time at Mercer, Ms. Shan was responsible for global financial reporting and performance, operational finance, investments, and corporate strategy, leading a team of finance professionals supporting clients in over 130 countries. Prior toPreceding her tenure as the CFO for Mercer, Ms. Shan was aalso served as the Vice President and Treasurer for both Marsh and McLennan Companies, andwith additional prior experience in the same position with Pitney Bowes Inc. and was alsoserved as a Managing Director at J.P. Morgan. In September 2018, Ms. Shan joined the Board of Directors of EPAM Systems Inc., a leading global provider of digital platform engineering and software development services. Ms. Shan earned B.S.holds dual degrees with a Bachelor of Science and a Bachelor of Applied Science from the University of Pennsylvania’s Wharton School of Business and School of Engineering and Applied Science and Engineering. Ms. Shan also has a Master of Business Administration from Cornell University’s SC Johnson College of Business.   Frank A.R. Gossieaux–Executive Vice President, Global Head of Sales and Client Solutions. Mr. Gossieaux joined FactSet in September 2004. Mr. Gossieaux held multiple senior leadership roles at FactSet in both Europe and North America including Senior Vice President of Americas Sales, Senior Vice President of EMEA Sales, and Senior Vice President of International Investment Management. Mr. Gossieaux received a Bachelor of Science in Economics from the University Pantheon-Assas (Sorbonne-Assas) in Paris.   Edward Baker-Greene Rachel R. Stern– Senior ExecutiveVice President, Chief HumanStrategic Resources Officerand General Counsel. Mr. Baker-Greene Ms. Stern joined FactSet in June 2015 from Voya Financial, formerly ING, U.S.January 2001 as General Counsel. In addition to her role in the Legal Department, Ms. Stern is also responsible for Compliance, Facilities and Real Estate Planning, and the administration of our offices in Hyderabad, Manila and Riga. Ms. Stern is admitted to practice in New York, Washington D.C., where he was Head of Human Resources for Retirement Solutions, Operations, and Information Technology. Previously, Mr. Baker-Greene worked at Fidelity Investments for 13 years. At Fidelity, he was a part of the Personal and Workplace Investing division, where he held rolesas House Counsel in business and human resources capacities, including Senior Vice President/Managing Director, Relationship Management. Mr. Baker-Greene began his professional career as a lawyer focusing on employment law, recruiting, talent management, and human capital management. Mr. Baker-GreeneConnecticut. Ms. Stern received a B.A.Bachelor of Arts from TuftsYale University, and a J.D.Master of Arts from the University of Virginia SchoolLondon and a Juris Doctor from the University of Law. On July 5, 2018, the Company entered into a separation of employment and general release agreement with Edward Baker-Greene, pursuant to which Mr. Baker-Greene will remain in his current position as Chief Human Resources Officer until his successor is appointed and will remain an employee of FactSet until his separation date of November 30, 2018.Pennsylvania Law School.   Gene D. Fernandez– Executive Vice President, Chief Technology and Product Officer.Mr. Fernandez joined FactSet in November 2017 from J.P. Morgan, where he served as the Chief Technology Officer, New Product Development. In this role, he developed the strategy and built the engineering function responsible for new product innovation. During a decade at J.P. Morgan, Mr. Fernandez held various other roles, including Chief Technology Officer for Client Technology and Research and Banking Information Technology. Prior to J.P. Morgan, he worked at Credit Suisse and Merrill Lynch. Mr. Fernandez received a B.S.Bachelor of Science in Computer Science and Economics from Rutgers University.   RobertJ.Robie – Executive Vice President, Head of Analytics and Trading Analytics Solutions.Mr. Robie joined FactSet in July 2000 as a Product Sales Specialist. During his tenure at FactSet, Mr. Robie has held several positions of increasing responsibility, including Senior Director of Analytics and Director of Global Fixed Income and Analytics, where he led sales and support efforts for FactSet’s fixed income product offering. Between 2004 and 2005,Although Mr. Robie workedjoined FactSet in 2000, he did work at BTN Partners where he workedfrom 2004 through 2005 in their quantitative portfolio management and performance division, as an analyst.before returning to continue his career with FactSet. Mr. Robie holds a B.A.Bachelor of Arts in Economics from Beloit College.   Rachel R. SternDaniel Viens – Executive Senior Vice President, General CounselChief Human Resources Officer. and Secretary. Ms. Stern Mr. Viens joined FactSet in 2001 as General Counsel. In addition to the Legal Department at FactSet, she is responsible for Facilities and Real Estate Planning; Third-Party Content and Strategic Partnerships; and the administration of our offices in Hyderabad and Manila. Ms. Stern is admitted to practice in New York, and Washington D.C., and as House Counsel in Connecticut. Ms. Stern received a B.A. from Yale University, an M.A. from the University of London and a J.D. from the University of Pennsylvania Law School. John W. Wiseman– Executive Vice President, Global Head of Sales and Client Solutions. Mr. Wiseman joined FactSet in 2004September 1998 as a Vice President, in the sales department. During his tenure at FactSet, Mr. WisemanDirector of Human Resources and has held several leadership positions of increased responsibility including Senior Vice President, Global Head of Strategic Partnerships & Alliances.in Human Resources. Prior to his experience withjoining FactSet, Mr. WisemanViens was a Senior Managing Director at Bear Stearnsof Human Resources for First Data Solutions and Donnelly Marketing (a former company of Dun & Co. Inc.Bradstreet), where he developed significant Human Resources acumen. Mr. Wiseman receivedViens graduated from Boston University, and holds both a B.A.Master's Degree from Eastern Illinois University in Political Science and Management Science from Duke UniversityClinical Psychology, and a Master of Business Administration from the University of Edinburgh.Columbia University.   Additional Information   Additional information with respect to FactSet’s business is included in the following pages and is incorporated herein by reference:     Page(s) Five-Year Summary of Selected Financial Data 2221 Management’s Discussion and Analysis of Financial Condition and Results of Operations 24-4423 Quantitative and Qualitative Disclosures about Market Risk 4546 Note 1 to Consolidated Financial Statements entitled Organization and Nature of Business 5659 Note 78 to Consolidated Financial Statements entitled Segment Information 72 67   ITEM 1A. RISK FACTORS   The following risks could materially and adversely affect our business, financial condition, cash flows, results of operations and as a result, the trading price of our common stock could decline. These risk factors do not identify all risks that we face; our operations could also be affected by factors that are not presently known to us or that we currently consider to be immaterial to our operations. Due to risks and uncertainties, known and unknown, our past financial results may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results or trends in future periods. Investors should also refer to the other information set forth in this Report on Form 10-K, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements including the related notes. Investors should carefully consider all risks, including those disclosed, before making an investment decision.   Loss, corruption and misappropriation of data and information relating to clients and others   Many of our products, as well as our internal systems and processes, involve the storage and transmission of our own, as well as supplier and customer proprietary information and sensitive or confidential data. This includes data includingfrom client portfolios and strategies. Breaches of this confidentiality, should they occur, could result in the loss of clients and termination of arrangements with suppliers for the use of their data. We rely on a complex network of internal controls to protect the privacy of data. If we fail to maintain the adequacy of our internal controls, including any failure to implement required new or improved controls, unauthorized access or misappropriation of client or supplier data by an employee or an external third-party could occur. Additionally, the maintenance and enhancement of our systems may not be completely effective in preventing loss, unauthorized access or misappropriation. Data misappropriation, unauthorized access or data loss could instill a lack of confidence in our products and systems and damage our brand, reputation and business. Breaches of security measures could expose us, our clients or the individuals affected to a risk of loss or misuse of this information, potentially resulting in litigation and liability for us, as well as the loss of existing or potential clients. Many jurisdictions in which we operate have laws and regulations relating to data privacy and protection of personal information, including the European Union General Data Protection Regulation (“GDPR”) which became effective May 25, 2018. GDPR requires2018, and California's Consumer Privacy Act, effective January 1, 2020. Both require companies to satisfy new requirements regarding the handling of personal and sensitive data, including our use, protection and certain abilitiesthe ability of persons whose data is stored to correct or delete such data about themselves. Failure to comply with GDPR requirements could result in penalties of up to 4% of worldwide revenues. The law in this area continues to develop and the changing nature of privacy laws in the European Union and elsewhere could impact our processing of personal and sensitive information related to our content, operations, employees, clients, and suppliers, and may expose us to claims of violations.   Successful cyber-attacks and the failure of cyber-security systems and procedures   In providing our software-enableddigital-enabled services to clients, we rely on information technology infrastructure that is primarily managed internally, along with some reliance placed on third-party service providers. We and these third-party service providers are subject to the risks of system failures and security breaches, including cyber-attacks, such as phishing scams, viruses and denials of service attacks, as well as employee errors or malfeasance. Our protective systems and procedures and those of third parties to which we are connected, such as cloud computing providers, may not be effective against these threats. We could suffer significant damage to our brand and reputationreputation: if a cyber-attack or other security incident were to allow unauthorized access to, or modification of, clients’ or suppliers’ data, other external data, internal data or information technology systems; if the services provided to clients were disrupted; or if products or services were perceived as having security vulnerabilities. The costs we would incur to address and resolve these security incidents would increase our expenses. These types of security incidents could also lead to lawsuits, regulatory investigations and claims, loss of business and increased legal liability. We also make acquisitions periodically. While significant effort is placed on addressing information technology security issues with respect to the acquired companies, we may inherit such risks when these acquisitions are integrated into our infrastructure.   A prolonged or recurring outage at our data centers and other business continuity disruptions at facilities could result in reduced service and the loss of clients   Our clients rely on us for the delivery of time-sensitive, up-to-date data and applications. Our business is dependent on our ability to process substantial volumes of data and transactions rapidly and efficiently on our computer-based networks and systems. Our computer operations, as well as our other business centers, and those of our suppliers and clients are vulnerable to interruption by fire, natural disaster, power loss, telecommunications failures, terrorist attacks, acts of war, civil unrest, Internet failures, computer viruses, and security breaches, and other events beyond our reasonable control. We maintain back-up facilities and certain other redundancies for each of our major data centers to minimize the risk that any such event will disrupt those operations. However, a loss of our services involving our significant facilities may materially disrupt our business and may induce our clients to seek alternative data suppliers. Any such losses or damages we incur could have a material adverse effect on our business. Although we seek to minimize these risks through security measures, controls, back-up data centers and emergency planning, there can be no assurance that such efforts will be successful or effective.     Competition in our industry may cause price reductions or loss of market share   We continue to experience intense competition across all markets for our products with competitors ranging in size from smaller, highly specialized, single-product businesses to multi-billion-dollar companies. While we believe the breadth and depth of our suite of products and applications offer benefits to our clients that are a competitive advantage, our competitors may offer price incentives to attract new business. Future competitive pricing pressures may result in decreased sales volumes and price reductions, resulting in lower revenues.revenue. Weak economic conditions may also result in clients seeking to utilize lower-cost information that is available from alternative sources. The impact of cost-cutting pressures across the industries we serve could lower demand for our products. Clients within the financial services industry that strive to reduce their operating costs may seek to reduce their spending on financial market data and related services, such as ours. If our clients consolidate their spending with fewer suppliers, by selecting suppliers with lower-cost offerings or by self-sourcing their needs for financial market data, our business could be negatively affected.   The continued shift from active to passive investing could negatively impact user count growth and revenuesrevenue   The predominant investment strategy today is still active investing, which attempts to outperform the market. The main advantage of active management is the expectation that the investment managers will be able to outperform market indices. They make informed investment decisions based on their experiences, insights, knowledge and ability to identify opportunities that can translate into superior performance. The main advantage of passive investing is that it closely matches the performance of market indices. Passive investing requires little decision-making by investment managers and low operating costs which result in lower fees for the investor. While the majority of assets under management are still actively managed, outflows to passively managed index funds have increased in recent years. A continued shift to passive investing, resulting in an increased outflow to passively managed index funds, could reduce demand for the services of active investment managers and consequently, the demand of our clients for our services.   A decline in equity and/or fixed income returns may impact the buying power of investment management clients   Approximately 83.9%83.7% of our ASV is derived from our investment management clients. The profitability and management fees of these clients are tied to assets under management. An equity market decline not only depresses the value of assets under management but also could cause a significant increase in redemption requests from our clients’ customers, further reducing their assets under management. Reduced client profits and management fees may cause our clients to cut costs. Moreover, extended declines in the equity and fixed income markets may reduce new fund or client creation. Each of these developments may result in lower demand from investment managers for our services and workstations, from investment managers thatwhich could negatively affect our business.   Failure to develop and market new products and enhancements that maintain our technological and competitive position and failure to anticipate and respond to changes in the marketplace for our products   The market for our products is characterized by rapid technological change, including methods and speed of delivery, changes in client demands, development of new investment instruments and evolving industry standards, whichstandards. The direction of these trends can render our existing products less competitive, obsolete or unmarketable. As a result, our future success will continue to depend upon our ability to identify and develop new products and enhancements that address the future needs of our target markets and to respond to their changing standards and practices. We may not be successful in developing, introducing, marketing, licensing and implementing new products and enhancements on a timely and cost-effective basis or without impacting the stability and efficiency of existing products and customer systems. Further, any new products and enhancements may not adequately meet the requirements of the marketplace or achieve market acceptance. Our failure or inability to anticipate and respond to changes in the marketplace, including competitor and supplier developments, may also adversely affect our business, operations and growth.   Uncertainty, consolidation and business failures in the global investment banking industry may cause us to lose clients and users   Our investment banking clients that perform Mergersmergers and Acquisitions (“acquisitions ("M&A”&A") advisory work, capital markets services and equity research, account for approximately 16.1%16.3% of our ASV. A significant portion of these revenues relate to services deployed by the largest banks. Consolidation or contraction in this industry directly impacts the number of prospective clients and users within the sector. Thus, economic uncertainty for our global investment banking clients, consolidation and business failures in this sector could adversely affect our financial results and future growth.   Volatility in the financial markets may delay the spending pattern of clients and reduce future ASV growth   The decision on the part of large institutional clients to purchase our services often requires management-level sponsorship and typically depends upon the size of the client, with larger clients having more complex and time-consuming purchasing processes. The process is also influenced by market volatility. These characteristics often lead us to engage in relatively lengthy sales efforts. Purchases (and incremental ASV) may therefore be delayed as uncertainties in the financial markets may cause clients to remain cautious about capital and data content expenditures, particularly in uncertain economic environments.   Additional cost due to tax assessments resulting from ongoing and future audits by tax authorities as well as changes in tax laws   In the ordinary course of business, we are subject to tax examinations by various governmental tax authorities. The global and diverse nature of our business means that there could be additional examinations by governmental tax authorities and the resolution of ongoing and other probable audits which could impose a future risk to the results of our business. In the third quarter of fiscal 2018, weAugust 2019, FactSet received a letterNotice of Intent to Assess (the “Notice”) additional sales taxes, interest and underpayment penalties from the Commonwealth of Massachusetts Department of Revenue relating to prior tax periods. The Notice follows FactSet’s previously disclosed response to a letter requestedfrom the Commonwealth requesting additional information in order to determine if we should have collected sales and use taxes on our sales to Massachusetts-based clients.information. Based upon a preliminary review of their request, it is possible that the StateNotice, the Company believes the Commonwealth may assess sales tax, interest and use taxes, underpayment penalties and interest, on previously recorded sales transactions. We haveThe Company intends to contest any such assessment, if assessed, and continues to cooperate with the Commonwealth’s inquiry. Due to uncertainty surrounding the assessment process, the Company is unable to reasonably estimate the ultimate outcome of this matter and, as such, has not recorded a liability as of August 31, 2018.2019. While we believeFactSet believes that weit will ultimately prevail if we are required to pay an assessment,the Company is presented with a formal assessment; if FactSet does not prevail, the amount could have a material impact on ourthe Company’s consolidated financial position, cash flows and results of operations.   Changes in tax laws or the terms of tax treaties in a jurisdiction where we are subject to tax could increase our taxes payable. On December 22, 2017, the U.S. Tax Cuts and Jobs Act, (the "Act"("TCJA") was signed into law. The Act enactsTCJA enacted broad changes to the existing U.S. Internal Revenue code, including reducing the federal corporate income tax rate from 35% to 21%, amongst many other complex provisions. The ultimate impact of such tax reform may differ from our current estimate due to changes in interpretations and assumptions made by us as well as the issuance of further regulations or guidance.   Failure to identify, integrate, or realize anticipated benefits of acquisitions and strains on resources as a result of growth   There can be no assurance that we will be able to identify suitable candidates for successful acquisition at acceptable prices. Additionally, there may be integration risks or other risks resulting from acquired businesses. As we continue to pursue selective acquisitions to support our business strategy, we seek to be a disciplined acquirer. Our ability to achieve the expected returns and synergies from past and future acquisitions and alliances depends in part upon our ability to integrate the offerings, technology, sales, administrative functions and personnel of these businesses effectively into our core business. We cannot guarantee that our acquired businesses will perform at the levels anticipated. In addition, past and future acquisitions may subject us to unanticipated risks or liabilities or disrupt operations.   Growth, such as the addition of new clients and acquisitions, puts demands on our resources, including our internal systems and infrastructure. These may require improvements or replacement to meet the additional demands of a larger organization. Further, the addition of new clients and the implementation of such improvements would require additional management time and resources. These needs may result in increased costs that could negatively impact results of operations. Failure to implement needed improvements, such as improved scalability, could result in a deterioration in the performance of our internal systems and negatively impact the performance of our business.   Failure to enter into or renew contracts supplying new and existing data sets or products on competitive terms   We collect and aggregate third-party content from thousands of data suppliers, news sources, exchanges, brokers and contributors into our own dedicated online service, which clients access to perform their analyses. Clients have access to the data and content found within our databases. These databases are important to our operations as they provide clients with key information. We have entered into third-party content agreements withof varying lengths, which in some cases can be terminated on one year’s notice at predefined dates, and in other cases on shorter notice. Some of our content provider agreements are with competitors, who may attempt to make renewals difficult or expensive. We seek to maintain favorable contractual relationships with our data suppliers, including those that are also competitors. We also make efforts, when reasonable, to locate alternative sources to ensure we are not dependent on any one third-party data supplier. We believe we are not dependent on any one significant third-party data supplier. Our failure to be able to maintain these relationships or the failure of our suppliers to deliver accurate data or in a timely manner could adversely affect our business.   Inability to hire and retain key qualified personnel   Our business is based on successfully attracting, motivating and retaining talented employees. Competition for talent, especially engineering personnel, is strong. We need technical resources such as engineers to help develop new products and enhance existing services. We rely upon sales personnel to sell our products and services and maintain healthy business relationships. If we are unsuccessful in our recruiting efforts, or if we are unable to retain key employees, our ability to develop and deliver successful products and services may be adversely affected and could have a material, adverse effect on our business.   Increased accessibility to free or relatively inexpensive information sources may reduce demand for our products   Each year, an increasing amount of free or relatively inexpensive information becomes available, particularly through the Internet, and this trend may continue. The availability of free or relatively inexpensive information may reduce demand for our products. While we believe our service offering is distinguished by such factors as customization, timeliness, accuracy, ease-of-use, completeness and other value-added factors, if users choose to obtain the information they need from public or other sources, then our business and results of operations could be adversely affected.   Third parties may claim we infringe upon their intellectual property rights or may infringe upon our intellectual property rights   We may receive notice from others claiming that we have infringed upon their intellectual property rights. Responding to these claims may require us to enter into royalty and licensing agreements on favorableunfavorable terms, incur litigation costs, enter into settlements, stop selling or redesign affected products, or pay damages and satisfy indemnification commitments with our clients or suppliers under contractual provisions of various license arrangements. Additionally, third parties may copy, infringe or otherwise profit from the unauthorized use of our intellectuallyintellectual property rights requiring us to litigate to protect our rights. Certain countries may not offer adequate protection of proprietary rights. If we are required to defend ourselves or assert our rights or take such actions mentioned, our operating margins may decline as a result. We have incurred, and expect to continue to incur, expenditures to acquire the use of technology and intellectual property rights as part of our strategy to manage this risk.   Operations outside the U.S. involve additional requirements and burdens that we may not be able to control or manage successfully   In fiscal 2018,2019, approximately 38% of our revenuesrevenue related to operations located outside the U.S. In addition, a significant number of our employees, approximately 74%76%, are located in offices outside the U.S. We expect our growth to continue outside the U.S., with non-U.S. revenues accounting for an increased portion of total revenuesrevenue in the future. Our non-U.S. operations involve risks that differ from or are in addition to those faced by our U.S. operations. These risks include:include difficulties in developing products, services and technology tailored to the needs of non-U.S. clients, including in emerging markets; different employment laws and rules; rising labor costs in low-wage countries; difficulties in staffing and managing personnel that are located outside the U.S.; different regulatory, legal and compliance requirements, including in the areas of privacy and data protection, anti-bribery and anti-corruption, trade sanctions and currency controls, marketing and sales and other barriers to conducting business; social and cultural differences, such as languages; diverse or less stable political, operating and economic environments and market fluctuations; civil disturbances or other catastrophic events that reduce business activity; limited recognition of our brand and intellectual property protection; differing accounting principles and standards; restrictions on or adverse tax consequences from entity management efforts; and changes in U.S. or foreign tax laws. If we are not able to adapt efficiently to or manage the business effectively in markets outside the U.S., our business prospects and operating results could be materially and adversely affected.   Exposure to fluctuations in currency exchange rates and the failure of hedging arrangements   Due to the global nature of our operations, we conduct business outside the U.S. in several currencies including the Euro, Indian Rupee, Philippine Peso, British Pound Sterling, Euro, Indian Rupee,and Japanese Yen, and Philippine Peso.Yen. To the extent that our international activities increase in the future, our exposure to fluctuations in currency exchange rates may increase as well. To manage this exposure, we utilize derivative instruments (such as foreign currency forward contracts). By their nature, all derivative instruments involve elements of market and credit risk. The market risk associated with these instruments resulting from currency exchange movements is expected to offset the market risk of the underlying transactions, assets and liabilities being hedged. Credit risk is managed through the continuous monitoring of exposure to the counterparties associated with these instruments. Our primary objective in holding derivatives is to reduce the volatility of earnings with changes in foreign currency. Although we believe that our foreign exchange hedging policies are reasonable and prudent under the circumstances, our attempt to hedge against these risks may not be successful, which could cause an adverse impact on our results of operations.     Legislative and regulatory changes in the environments in which we and our clients operate   Many of our clients operate within a highly regulated environment and must comply with governmental legislation and regulations. The U.S. regulators have increased their focus on the regulation of the financial services industry. Increased regulation of our clients may increase their expenses, causing them to seek to limit or reduce their costs from outside services such as ours. Additionally, if our clients are subjected to investigations or legal proceedings they may be adversely impacted, possibly leading to their liquidation, bankruptcy, receivership, reduction in assets under management, or diminished operations, which would adversely affect our revenues.revenue. In the European Union, the new version of the Markets in Financial Instruments Directive (recast), also known as “MiFID II” became effective in January 2018. We believe that compliance with MiFID II requirements is time-consuming and costly for the investment managers who are subject to it and will cause clients to adapt their pricing models and business practices significantly. These increased costs may impact our clients’ spending and may cause some investment managers to lose business or withdraw from the market, which may adversely affect demand for our services. However, MiFID II may also present us with new business opportunities for new service offerings. In addition to the MiFID II requirements, we further believe the proposed withdrawal of the U.K. from the European Union (also known as Brexit) on terms still being negotiated, has created economic uncertainty among our client base. This uncertainty may have an impact on our clients’ expansion or spending plans, which may in turn negatively impact our revenuesrevenue or growth.   As a business, we are also subject to numerous laws and regulations in the U.S. and in the other countries in which we operate. These laws, rules, and regulations, and their interpretations, may change in the future, and compliance with these changes may increase our costs or cause us to make changes in or otherwise limit our business practices. In addition, the global nature and scope of our business operations make it more difficult to monitor areas that may be subject to regulatory and compliance risk. If we fail to comply with any applicable law, rule, or regulation, we could be subject to claims and fines and suffer reputational damage.   Adverse resolution of litigation or governmental investigations   We are party to lawsuits in the normal course of business. Litigation and governmental investigations can be expensive, lengthy and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict. Unfavorable resolution of lawsuits could have a material adverse effect on our business, operating results or financial condition. For additional information regarding legal matters, see Item 3, Legal Proceedings, contained in Part I of this Report on Form 10-K.   Failure to maintain reputation   We enjoy a positive reputation in the marketplace. Our ability to attract and retain clients and employees is affected by external perceptions of our brand and reputation. Reputational damage from negative perceptions or publicity could affect our ability to attract and retain clients and employees and our ability to maintain our pricing for our products. Although we monitor developments for areas of potential risk to our reputation and brand, negative perceptions or publicity could have a material adverse effect on our business and financial results.   ITEM 1B. UNRESOLVED STAFF COMMENTS   None.   ITEM 2. PROPERTIES   As of August 31, 2018,2019, we leased approximately 202,000 square feet of office space at our headquarters in Norwalk, Connecticut. On February 14, 2018, we entered into a new lease agreement to relocate our corporate headquarters to 45 Glover Avenue in Norwalk, Connecticut. The new location will comprise approximately 173,000 square feet of office space. We expect to taketook possession of the newly leased property on or around January 1, 2019, for fit-out purposes. We will continue to occupy our existing headquarters space until the new headquarters is ready for occupancy, currently estimated to be in the second quarter of fiscal 2020.   We have data content collection offices located in India, the Philippines and Latvia, which benefit all our operating segments. Additionally, we have data centers that support our technological infrastructure located in New Jersey and Virginia. The other locations listed in the table below are leased office space. The leases expire on various dates through 2035. We believe the amount of leased space as of August 31, 2019 is adequate for our current needs and that additional space can be available to meet any future needs. Including new lease agreements executed during fiscal 2018,2019, our Company’s worldwide leased space increased to approximately 1,750,0001,860,000 square feet as of August 31, 2018,2019, up 607,000110,000 square feet, or 53.1%6.3%, from August 31, 20172018 and includes properties at the following locations:   Segment LeasedLocation     United States Atlanta, Georgia   Austin, Texas   Boston, Massachusetts   Chicago, Illinois   Jackson, Wyoming   Los Angeles, California   Manchester, New Hampshire   Minneapolis, Minnesota   New York, New York   Norwalk, Connecticut   Piscataway, New Jersey   Reston, Virginia   San Francisco, California   Sao Paulo, Brazil   Toronto, Canada   Youngstown, Ohio     Europe Avon, France   Amsterdam, the Netherlands   Cologne, Germany   Dubai, United Arab Emirates   Frankfurt, Germany   Gloucester, England   Johannesburg, South Africa   London, England   Luxembourg City, Luxembourg   Madrid, Spain   Milan, Italy   Paris, France   Riga, Latvia   Sofia, Bulgaria   Zurich, Switzerland     Asia Pacific Chennai, India   Hong Kong, China   Hyderabad, India   Manila, the Philippines   Melbourne, Australia   Mumbai, India   Shanghai, China   Singapore Sydney, Australia   Sydney, Australia Tokyo, Japan   We have data content collection offices located in Hyderabad, India and Manila, the Philippines, which benefit all our operating segments. Additionally, we have data centers that support our technological infrastructure located in Manchester, New Hampshire, Piscataway, New Jersey and Reston, Virginia. The other locations listed in the table above are leased office space. The leases expire on various dates through 2031. We believe the amount of leased space as of August 31, 2018 is adequate for our current needs and that additional space is available for lease to meet any future needs.   ITEM 3. LEGAL PROCEEDINGS   From time to time, the Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business, including intellectual property litigation. Based on currently available information, the Company’s management does not believe that the ultimate outcome of these unresolved matters against FactSet, individually or in the aggregate, is likely to have a material adverse effect on the Company's consolidated financial position, its annual results of operations or its annual cash flows. However, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.   ITEM 4. MINE SAFETY DISCLOSURES   Not applicable.     Part II   ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES   (a) Market Information, Holders and Dividends   Market Information – Our common stock is listed on the New York Stock Exchange (“NYSE”) and the NASDAQ Stock Market under the symbol FDS. The following table sets forth, for each fiscal period indicated, the high and low sales prices per share of our common stock as reported on the NYSE:     First   Second   Third   Fourth   2019                                 High   $ 237.29     $ 237.95     $ 284.32     $ 305.38   Low   $ 210.11     $ 188.31     $ 228.43     $ 266.06     First     Second     Third     Fourth         2018                                                                 High   $ 200.31     $ 209.02     $ 217.36     $ 229.98     $ 200.31     $ 209.02     $ 217.36     $ 229.98   Low   $ 155.88     $ 183.89     $ 184.48     $ 195.69     $ 155.88     $ 183.89     $ 184.48     $ 195.69                                   2017                                 High   $ 183.17     $ 183.64     $ 182.56     $ 172.22   Low   $ 150.95     $ 157.56     $ 156.92     $ 155.09   Holdersof Record– As of October 24, 2018,2019, we had approximately 177,777199,571 holders of record of our common stock. However, because many of our shares of common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders. The closing price of our common stock on October 24, 2018,2019, was $215.30$253.22 per share as reported on the NYSE.   Dividends - During fiscal years 20182019 and 2017,2018, our Board of Directors declared the following dividends on our common stock:   Year Ended   Dividends per Share of Common Stock   Record Date   Total $ Amount (in thousands)   Payment Date   Dividends per Share of Common Stock     Record Date   Total $ Amount (in thousands)     Payment Date Fiscal 2019   First Quarter   $ 0.64   November 30, 2018   $ 24,372   December 18, 2018 Second Quarter   $ 0.64   February 28, 2019   $ 24,385   March 19, 2019 Third Quarter   $ 0.72   May 31, 2019   $ 27,506   June 18, 2019 Fourth Quarter   $ 0.72   August 30, 2019   $ 27,445   September 19, 2019   Fiscal 2018                       First Quarter   $ 0.56   November 30, 2017   $ 21,902   December 19, 2017   $ 0.56   November 30, 2017   $ 21,902   December 19, 2017 Second Quarter   $ 0.56   February 28, 2018   $ 21,799   March 20, 2018   $ 0.56   February 28, 2018   $ 21,799   March 20, 2018 Third Quarter   $ 0.64   May 31, 2018   $ 24,566   June 19, 2018   $ 0.64   May 31, 2018   $ 24,566   June 19, 2018 Fourth Quarter   $ 0.64   August 31, 2018   $ 24,443   September 18, 2018   $ 0.64   August 31, 2018   $ 24,443   September 18, 2018                     Fiscal 2017                     First Quarter   $ 0.50   November 30, 2016   $ 19,852   December 20, 2016 Second Quarter   $ 0.50   February 28, 2017   $ 19,709   March 21, 2017 Third Quarter   $ 0.56   May 31, 2017   $ 21,951   June 20, 2017 Fourth Quarter   $ 0.56   August 31, 2017   $ 21,853   September 19, 2017   All the above cash dividends were paid from existing cash resources on a quarterly basis. Future dividend payments will depend on our earnings, capital requirements, financial condition and other factors considered relevant by us, and is subject to final determination by our Board of Directors.   (b) Recent Sales of Unregistered Securities   There were no sales of unregistered equity securities during fiscal 2018.2019. (c) Issuer Purchases of Equity Securities   (c) Issuer Purchases of Equity Securities   The following table provides a month-to-month summary of the share repurchase activity under the current stock repurchase program during the three months ended August 31, 2018 (in2019: (in thousands, except per share data):   Period   Total number of shares purchased     Average price paid per share     Total number of shares purchased as part of publicly announced plans or programs     Maximum number of shares (or approximate dollar value) that may yet be purchased under the plans or programs (1)   June 2018     49,975     $ 199.10       49,975     $ 299,325   July 2018     214,503     $ 204.09       214,503     $ 255,548   August 2018     65,000     $ 212.27       65,000     $ 241,750         329,478               329,478           Period   Total number of shares purchased(1)     Average price paid per share     Total number of shares purchased as part of publicly announced plans or programs     Maximum number of shares (or approximate dollar value) that may yet be purchased under the plans or programs(2)   June 2019     28,421     $ 285.92       25,000     $ 292,465 (3)  July 2019     102,629     $ 283.86       102,500     $ 263,370   August 2019     90,242     $ 275.02       90,000     $ 238,619         221,292               217,500             (1) Includes 217,500 shares purchased under the existing stock repurchase program, as well as 3,792 shares repurchased from employees to cover their cost of taxes upon vesting of restricted stock. (2) Repurchasesmay bebe made from time to time in the open market and privately negotiated transactions, subject to market conditions.No minimumThere is no defined number of shares to be repurchased has been fixed. Thereover a specified timeframe through the life of the share repurchase program. It is no timeframe to completeexpected that share repurchases will be paid using existing and future cash generated by operations. (3) The amount included in the Maximum number of shares that may yet be purchased under the plans or programs column for June 2019, includes a $210.0 million expansion of the existing share repurchase program and it is expected that share repurchases will be paid using existing and future cash generatedas approved by operations.the Board of Directors of FactSet on June 24, 2019.   Securities Authorized for Issuance underunder Equity Compensation Plans– see Part III of this Report on Form 10-K   StockPerformancePGrapherformance Graph The annual changes for the five-year period shown in the graph below are based on the assumption thatassume $100 had been invested in our common stock, the Standard & Poor’s 500 Index, the NYSE Composite Index and the Dow Jones U.S. Financial Services Index on August 31, 2013.2014. The total cumulative dollar returns shown on the graph represent the value that such investments would have had on August 31, 2018.2019. Stockholder returns over the indicated period are based on historical data and should not be considered indicative of future stockholder returns.         2013     2014     2015     2016     2017     2018   FactSet Research Systems Inc.   $ 100     $ 124     $ 154     $ 174     $ 154     $ 224   S&P 500 Index   $ 100     $ 123     $ 121     $ 133     $ 151     $ 178   NYSE Composite Index   $ 100     $ 119     $ 110     $ 116     $ 128     $ 140   Dow Jones U.S. Financial Services Index   $ 100     $ 119     $ 124     $ 125     $ 157     $ 191       2014     2015     2016     2017     2018     2019   FactSet Research Systems Inc.   $ 100     $ 124     $ 140     $ 123     $ 180     $ 214   S&P 500 Index   $ 100     $ 98     $ 108     $ 123     $ 145     $ 146   NYSE Composite Index   $ 100     $ 92     $ 97     $ 108     $ 118     $ 115   Dow Jones U.S. Financial Services Index   $ 100     $ 104     $ 105     $ 132     $ 161     $ 155   The information contained in the above graph shall not be deemed to be soliciting material or filed or incorporated by reference in future filings with the SEC, or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, except to the extent that FactSet specificallyincorporates it by reference into a document filedfiled under the Securities Actof 1933 or the Securities Exchange Act of 1934.   ITEM 6. SELECTED FINANCIAL DATA   The following selected financial data has been derived from our consolidated financial statements. This financial data should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8, Financial Statements and Supplementary Data, of this Report on Form 10-K.   Consolidated Statements of Income Data     For the year ended August 31,     For the year ended August 31,   (in thousands, except per share data)   2018     2017     2016     2015     2014     2019   2018   2017   2016   2015   Revenues   $ 1,350,145     $ 1,221,179     $ 1,127,092     $ 1,006,768     $ 920,335   Revenue   $ 1,435,351     $ 1,350,145     $ 1,221,179     $ 1,127,092     $ 1,006,768   Operating income   $ 366,204  (1)   $ 352,135  (4)   $ 349,676  (7)   $ 331,918  (10)   $ 302,219  (13)   $ 438,035  (1)    $ 366,204  (4)    $ 352,135  (7)    $ 349,676  (10)    $ 331,918  (13)  Provision for income taxes   $ 84,753     $ 86,053     $ 122,178     $ 92,703     $ 91,921     $ 69,175     $ 84,753     $ 86,053     $ 122,178     $ 92,703   Net income   $ 267,085  (2)   $ 258,259  (5)   $ 338,815  (8)   $ 241,051  (11)   $ 211,543  (14)   $ 352,790  (2)    $ 267,085  (5)    $ 258,259  (8)    $ 338,815  (11)    $ 241,051  (14)  Diluted earnings per common share   $ 6.78  (3)   $ 6.51  (6)   $ 8.19  (9)   $ 5.71  (12)   $ 4.92  (15)   $ 9.08  (3)    $ 6.78  (6)    $ 6.51  (9)    $ 8.19  (12)    $ 5.71  (15)  Weighted average common shares (diluted)     39,377       39,642       41,365       42,235       42,970     38,873     39,377     39,642     41,365     42,235   Cash dividends declared per common share   $ 2.40     $ 2.12     $ 1.88     $ 1.66     $ 1.48     $ 2.72     $ 2.40     $ 2.12     $ 1.88     $ 1.66     Consolidated Balance SheetSheets Data     As of August 31,     As of August 31,   (in thousands)   2018     2017     2016     2015     2014     2019   2018   2017   2016   2015   Cash and cash equivalents   $ 208,623     $ 194,731     $ 228,407     $ 158,914     $ 116,378     $ 359,799     $ 208,623     $ 194,731     $ 228,407     $ 158,914   Accounts receivable, net of reserves   $ 156,639     $ 148,331     $ 97,797     $ 95,064     $ 90,354     $ 146,309     $ 156,639     $ 148,331     $ 97,797     $ 95,064   Goodwill and intangible assets, net   $ 850,768     $ 881,103     $ 546,076     $ 348,339     $ 327,463     $ 806,280     $ 850,768     $ 881,103     $ 546,076     $ 348,339   Total assets   $ 1,419,447     $ 1,413,315     $ 1,019,161     $ 736,671     $ 663,212     $ 1,560,130     $ 1,419,447     $ 1,413,315     $ 1,019,161     $ 736,671   Non-current liabilities   $ 672,413     $ 652,485     $ 343,570     $ 65,307     $ 24,839     $ 668,951     $ 672,413     $ 652,485     $ 343,570     $ 65,307   Total stockholders’ equity   $ 525,900     $ 559,691     $ 517,381     $ 531,584     $ 511,082     $ 672,256     $ 525,900     $ 559,691     $ 517,381     $ 531,584     (1) Operating income in fiscal 2019 included pre-tax charges of $8.0 million, primarily related to $4.3 million in severance costs, $8.7 million related to other corporate actions including stock-based compensation acceleration, professional fees related to infrastructure upgrade activities and a one-time adjustment related to data costs and occupancy costs, partially offset by $5.0 million in non-core transaction related revenue. (2) Net income in fiscal 2019 included $6.3 million (after-tax) expenses, primarily related to $3.5 million (after-tax) in severance costs, $6.8 million (after-tax) related to other corporate actions including stock-based compensation acceleration, professional fees related to infrastructure upgrade activities and a one-time adjustment related to data costs and occupancy costs, partially offset by $4.0 million (after-tax) in non-core transaction related revenue. (3) Diluted earnings per share (“EPS”) in fiscal 2019 was reduced by $0.15 per share, primarily related to $0.09 in severance costs, $0.16 related to other corporate actions including stock-based compensation acceleration, professional fees related to infrastructure upgrade activities and a one-time adjustment related to data costs and occupancy costs, partially offset by $0.10 in non-core transaction related revenue. (4) Operating income in fiscal 2018 included pre-tax charges of $17.4 million from restructuring actions, $4.7 million related to other corporate actions including stock-based compensation acceleration and $4.9 million in legal matters. (2)(5) Net income in fiscal 2018 included $13.8 million (after-tax) expense related to restructuring actions, $3.8 million (after-tax) expense related to other corporate actions including stock-based compensation acceleration, $3.4 million (after-tax) expense related to legal matters and $21.3 million of tax charges primarily related to the one-time deemed repatriation tax on foreign earnings. (3)(6) Diluted earnings per share (“EPS”) in fiscal 2018 included a $0.35 decrease in diluted EPS from restructuring actions, a $0.10 detriment due to other corporate actions including stock-based compensation, a $0.09 decrease from legal matters and a $0.53 decrease from tax charges primarily related to the one-time deemed repatriation tax on foreign earnings. (4)(7) Operating income in fiscal 2017 included pre-tax charges of $5.6 million related to modifications of certain share-based compensation grants, $5.0 million related to restructuring actions and $7.4 million in acquisition-related expenses. (5)(8) Net income in fiscal 2017 included $4.2 million (after-tax) related to modifications of certain share-based compensation grants, $3.7 million (after-tax) related to restructuring actions and $5.5 million (after-tax) of acquisition-related expenses. Fiscal 2017 net income also included a loss of $0.9 million (after-tax) from a final working capital adjustment related to the sale of FactSet’s Market Metrics business in the fourth quarter of fiscal 2016. These charges were offset by income tax benefits of $1.9 million related primarily to finalizing prior year tax returns and other discrete items. (6)(9) Diluted EPS in fiscal 2017 included a $0.11 decrease in diluted EPS from the modifications of certain share-based compensation grants, a $0.09 decrease from the restructuring actions, a $0.13 decrease from acquisition-related expenses and $0.02 decrease from the working capital adjustment, partially offset by a $0.05 increase in diluted EPS from the income tax benefits. (7)(10) Operating income in fiscal 2016 included pre-tax charges of $4.6 million related primarily to legal matters, $2.8 million from restructuring actions and $1.8 million related to a change in the vesting of performance-based equity options. (8)(11) Net income in fiscal 2016 included $3.3 million (after-tax) related primarily to legal matters, $2.0 million (after-tax) from restructuring actions, $1.2 million (after-tax) related to a change in the vesting of performance-based equity instruments, partially offset by $10.5 million of income tax benefits primarily from the permanent reenactment of the U.S. Federal R&D tax credit (“R&D Tax Credit”), finalizing the fiscal 2015 tax returns and other discrete items and a gain of $81.7 million (after-tax) related to the sale of FactSet’s Market Metrics business in July 2016. (9)(12) Diluted EPS in fiscal 2016 included the net effect of a $2.01 increase in diluted EPS from the gain on sale and a $0.25 increase in diluted EPS from the gain on saleincome tax benefits, partially offset by a $0.08 decrease related primarily to legal matters, a $0.05 decrease from the restructuring actions and a $0.25 increase in diluted EPS from the income tax benefits, partially offset by a $0.08 decrease related primarily to legal matters, a $0.05$0.03 decrease from the restructuring actions and a $0.03 decrease from a change in the vesting of performance-based equity instruments.   (10)(13) Operating income in fiscal 2015 included pre-tax charges of $3.0 million related to the vesting of performance-based equity instruments and $3.2 million related primarily to changes in the senior leadership responsible for the Company’s sales force. (11)(14) Net income in fiscal 2015 included $2.1 million (after-tax) of incremental expenses related to the vesting of performance-based equity instruments, $2.2 million (after-tax) related to the changes in the senior leadership responsible for the Company’s sales force and income tax benefits of $8.8 million primarily from the reenactment of the R&D Tax Credit in December 2014, and finalizing the fiscal 2014 tax returns and other discrete items. (12)(15) Diluted EPS in fiscal 2015 included the net effect of a $0.21 increase in diluted EPS from the income tax benefits, partially offset by a $0.05 decrease from the vesting of performance-based equity instruments and a $0.05 decrease from the changes in the senior leadership responsible for the Company’s sales force. (13) Operating income in fiscal 2014 included pre-tax charges of $1.6 million related primarily to legal matters and $1.4 million related to a change in the vesting of performance-based equity options.  (14) Net income in fiscal 2014 included $1.1 million (after-tax) primarily related to legal matters, $1.0 million (after-tax) of incremental expenses related to the vesting of performance-based equity instruments and income tax benefits of $0.6 million finalizing the fiscal 2013 tax returns and other discrete items. (15) Diluted EPS in fiscal 2014 included the net effect of a $0.03 decrease in diluted EPS from the income tax benefits and $0.02 decrease from a change in the vesting of performance-based equity.     ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A is presented in the following sections:     ●• Executive Overview     ●• Key Metrics     ●• Results of Operations     ●• Liquidity     ●• Capital Resources     ●• Foreign Currency     ●• Off-Balance Sheet Arrangements     ●• Share Repurchase Program     ●• Contractual Obligations     ●• Dividends     ●• Significant Accounting Policies and Critical Accounting Estimates     ●• New Accounting Pronouncements     ●• Market Trends     ●• Forward-Looking Factors • Business Developments   The MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes included in Item 8, Financial Statements and Supplementary Data, of this Report on Form 10-K.   Executive Overview   We areFactSet Research Systems Inc. (the “Company” or “FactSet”) is a global provider of integrated financial information, analytical applications and industry-leading serviceservices for the investment and corporate communities. For over 40 years, global financial professionals have utilized our content and multi-asset class solutions across each stage of the investment community.process. Our goal is to provide a seamless user experience spanning idea generation, research, portfolio construction, trade execution, performance measurement, risk management, reporting, and portfolio analysis, in which we serve the front, middle, and back offices to drive productivity and improved performance. Our flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in the organization. We are focused on growing our business throughout each of our three segments, the U.S., Europe, and Asia Pacific. We primarily deliver insight and information to investmentthrough the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions and Wealth. We currently serve financial professionals, through our analytics, service, content, and technology. These professionalswhich include portfolio managers, investment research professionals, investment bankers, risk and performance analysts, wealth advisors, and wealth advisors. From streaming real-timecorporate clients. We provide 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. We combine dedicated client service with open and flexible technology offerings, such as a comprehensive data to historical information, including quotes, estimates, news and commentary, we offer proprietary and third-party content through desktop, web,marketplace, a configurable mobile and off-platform solutions.desktop platform, digital portals and application programming interface (“APIs”). Our broad application suite offers tools and resources including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization and research management solutions. With recent acquisitions, we have continued to expand our solutions across the investment lifecycle from idea generation to performance and client reporting. Our revenues arerevenue is primarily derived from subscriptions to products and services such as workstations, analytics, enterprise data, research management, and trade execution.   2018Fiscal 2019 Year in Review   Fiscal 2018 revenue growth can be attributed to achievements inRevenue for the delivery, integration and consumption of our financial data and analytical applications by the global investment community. As of August 31, 2018, annual subscription value (“ASV”) totaled $1.39fiscal year 2019 was $1.44 billion, an increase of 5.8% over6.3% from the prior year and 5.7% organically. Revenues increased 10.6% year over year,comparable period, of which, 5.6%6.2% of the increase can be attributed to organic revenue growth. Revenue growth can be attributed primarily to Analytics and Trading, CTS and Wealth due mainly to increased demand for our portfolio analytics solutions, core and premium data feeds and our wealth workstations. As of August 31, 2019, organic annual subscription value (“organic ASV”) plus professional services totaled $1.48 billion, an increase of 5.1% over the prior year. Operating income grew 19.6% and diluted earnings per share ("EPS") increased 33.9% compared to the prior year period. In addition, clients and users reached new highs of 5,1425,574 and 91,897,126,822, respectively, in fiscal 2018. We2019. Over the last 12 months, we returned $393.4$320.4 million to stockholders in the form of share repurchases and dividends during the fiscal year.dividends.   We continuedwon multiple awards, which included Best Data Provider to diversity our suite of solutions through the integration of our acquisitionsSell-Side, Best Performance Measurement and new product investments. We enhanced our Multi-Asset Class (“MAC”) risk models, leading to several global client winsAttribution System Provider, and strengthening our position inBest Client Reporting System at the analytics market.Waters Technology Awards, Best Alternative Data Initiative and Best Data Analytics Provider at the Inside Market Data Awards. We expanded our Content and Technology Solutions (“CTS”) workflow and launcheddata offering within CTS, on the Open:FactSet Marketplace, which now includes over 100 content and solution sets, including new data feeds from Mastercard and IHS Markit. Additionally, we launched a new platformGlobal Robotics and Automation Index licensed to addressSumitomo Mitsui Trust Asset Management Co., Ltd., marking our entry in the demand for integrating both financial and alternative data. We recently added Data Exploration, a platform for financial professionals to evaluate quickly alternative and financial datasets and build investment applications in a fully hosted environment.Japanese index mutual fund market.   FactSet released its first annual Corporate Social Responsibility Report (“CSR”), highlighting the Company’s commitments to our clients, employees, stockholders,In December 2018, we appointed Daniel Viens as Chief Human Resources Officer and communities. The report covered the fiscal year ending August 31, 2017, highlighting our recent achievementsin June 2019, we appointed Franck Gossieaux as Executive Vice President, Global Head of Sales and setting a trajectory for our future CSR goals.Client Solutions.   Client Service / Consultants   As part of the comprehensive value of FactSet’s solutions, consultants are versatile business people with knowledge of the financial markets and FactSet products. Consultants work closely with clients advising how FactSet solutions can be best leveraged to enhance their efficiency across workflows. A client-centric approach has always beenis a key foundation of our success at FactSet. We supportthe Company. Additionally, our powerful information and analytical applications withare supported by a team of financial data and modeling experts. Client satisfaction is a key metric by whichcritical to how we measure the success of our service. According to our global client satisfaction survey, greater than 95%93% of respondents were satisfied or very satisfied with FactSet’s support. The depthWe believe that these strong relationships help enable high rates of our knowledge, the data behind the modelsretention and the complex mathematics substantiating the answers each create an opportunity for us to forge close working relationships with our user community. Our industry-leading customer care is largely due to the talentexpansion of our employee population. As of August 31, 2018, employee headcount was 9,571, up 5.5% from a year ago. This increase in headcount was primarily in client-focused positions with dedication to client loyalty, supporting our recent global client retention rate of greater than 95% of ASV as of August 31, 2018. Our consulting teams have been trained to listen to our clients’ needs and transfer this knowledge directly to the product development teams, helping us transform suggestions into new or enhanced product offerings. Educating our clients is also an important component of our service. Not only do we teach our users the nuances of our software and content offerings, but also FactSet personnel are often thought-leaders in a particular area of financial modeling in our rapidly evolving industry. As a result, clients look to FactSet as a trusted partner to stay on the forefront of financial modeling and analysis.business.   Key Metrics   The following is a review of our key metrics:     As of and for the Year ended August 31,       As of and for the Year Ended August 31,   (in millions, except per share data, client and user counts)   2018     2017     Change     Revenues   $ 1,350.1     $ 1,221.2       10.6 %   (in millions, except per share data, client and user counts)   2019   2018   Change   Revenue   $ 1,435.4     $ 1,350.1     6.3 % Operating Income   $ 366.2     $ 352.1       4.0 %     $ 438.0     $ 366.2     19.6 % Net Income   $ 267.1     $ 258.3       3.4 %     $ 352.8     $ 267.1     32.1 % Diluted EPS   $ 6.78     $ 6.51       4.1 %     $ 9.08     $ 6.78     33.9 % ASV(1)   $ 1,393.1     $ 1,316.6       5.8 % (2)  Clients(3)     5,142       4,744       8.4 %   Users(4)     91,897       88,846       3.4 %   Clients(1)   5,574     5,142     8.4 % Users   126,822     91,897     38.0 % (1) During the third quarter of fiscal 2017, FactSet excluded professional services fees billed within the last 12 months, which are not subscription based. As such, ASV excludedprofessional service fees of $21.6 million and $17.2 million as of August 31, 2018 and 2017, respectively. (2) ASV grew 5.8% year over year, of which, 5.7%represents organic ASV growth. Organic ASV excludes ASV from acquisitions and dispositions completed within the last 12 months and the effects of foreign currency. (3) In the secondfirst quarter offiscal 2017, 2019, wechanged ourclient count definition to captureinclude clients with ASV greater than $10,000 versusfrom the previous metricApril 2017 acquisition of clients with ASV greater than $24,000. FactSet Digital Solutions Group ("FDSG").The prior year client count was not restated to reflect this change for comparison purposes.change. The table below provides an unaudited reconciliation of ASV to organic ASV:     As of August 31,   (in millions)   2019     2018     Change   As reported ASV(1)   $ 1,458.0     $ 1,393.1           Currency impact to ASV     5.3       —           Organic ASV(2)   $ 1,463.3     $ 1,393.1       5.0 % (4)(1) InASV at any given point in time represents the second quarterforward-looking revenue for the next 12 months from all subscription services currently being supplied to clients and excludes professional service fees, which are not subscription-based. The professional service fees are $22.9 million and $21.6 million as of fiscal 2017, wechanged ouruser count definition to include users from workstations previously not captured due to certain product bundling August 31, 2019 and users of the StreetAccount web product. The prior year user count was restated to reflect this change for comparison purposes. 2018, respectively. (2) Organic ASV excludes ASV from acquisitions and dispositions completed within the last 12 months, the effects of foreign currency, and professional services.   Organic Annual Subscription Value Growth   Organic ASV at any given point in time represents the forward-looking revenuesrevenue for the next twelve12 months from all subscription services currently being supplied to clients, excludes ASV from acquisitions and excludes professional services fees billed indispositions completed within the last twelve12 months, which are not subscription-based.the effects of foreign currency, and professional services. With proper notice to us, our clients can add to, delete portions of, or terminate service at any time, subject to certain contractual limitations. As of August 31, 2018,2019, our organic ASV totaled $1.39$1.46 billion, up 5.7%5.0% organically over the prior year. OrganicAs of August 31, 2019, organic ASV excludes ASV from acquisitions and dispositions completed withinplus professional services was $1.48 billion, an increase of 5.1%, compared to the last 12 months and the effects of foreign currency. prior year period. The increase in year over year organic ASV was due to growth across all of our geographic segments with the majority of growth in the U.S., followed by Asia Pacific and Europe. ASV growth from our workflow solutions was primarily driven by Analytics and Trading, CTS and Wealth. The increase includes sales of products and solutions to new and existing clients, an annual price increase for both the majority of the U.S. and international clients, partially offset by cancellations due primarily to industry-wide cost pressures, firm consolidations and closures. ASV growth in Analytics and Trading was primarily due to increased sales for our portfolio analytics solutions. ASV growth in CTS was primarily driven by increased sales in core and premium data feeds while ASV growth in Wealth was mainly due to increased workstation sales. As of August 31, 2019, ASV from the U.S. segment was $909.7 million, an increase of 4.7% from the prior year comparable period. This increase was primarily from Analytics and Trading, CTS and Wealth, due to the increased demand for our portfolio analytics solutions, core and premium data feeds and wealth workstations. ASV from the international operations was $548.3 million as of August 31, 2019, an increase of 4.6% over August 31, 2018. International ASV represents 37.6% of total ASV as of August 31, 2019, remaining consistent with the prior year period. The ASV increase from our international operations was due to continued growth in Analytics and Trading in both Asia Pacific and Europe as well as CTS growth in Europe. The Analytics and Trading growth was driven by our portfolio analytics solutions, while the CTS growth in our geographic segmentswas due to core and achievements across each of our workflow solutions which include Research, Analytics, CTS, and Wealth. Additionally, we have leveraged relationships with existing clients to increase year over year sales through cross-selling and upselling of our diversified product suite.premium data feeds.   Buy-side and sell-side ASV growth rates for the last 12 months were 5.4%4.8% and 7.3%6.3% respectively. Buy-side clients account for 83.9%83.7% of ASV, while the remainderwhich include traditional asset managers, wealth advisors, corporations, hedge funds, insurance companies, plan sponsors and fund of funds. The remaining portion of ASV is derived from sell-side firms that perform mergers and acquisitionsM&A advisory work, capital markets services and equity research.   As of August 31, 2018, ASV from our U.S. operations was $868.7 million, an increase of 5.3% organically from a year ago. ASV from international operations was $524.4 million, an increase of 6.3% organically from a year ago. The growth in ASV in both the U.S. operations and international operations was driven primarily by higher sales across all workflow solutions and new business additions across the operations, primarily in the U.S segment.   Client and User Additions   Our total client count was 5,1425,574 as of August 31, 2018,2019, representing a net increase of 398432 clients in the last twelve months. In the secondfirst quarter of fiscal 2017,2019, we changed our client count definition to captureinclude clients with ASV greater than $10,000 versusfrom the previous metricApril 2017 acquisition of clients with ASV greater than $24,000.FDSG. The prior year client count was not restated to reflect this change for comparison purposes. Client count has increasedchange. The net increase was primarily driven by 398 or 8.4%an increase in the last twelve months primarily from wealth managers,management and corporate firms and institutional asset managers. These firm types contributed to over 60%clients. As part of the net user additions during the fiscal 2018 year. Weour long-term growth strategy, we continue to focus on expanding and cultivating relationships with our currentexisting client base as it is essential to our long-term growth strategy and assists in our upsellthrough sales of workstations, applications, services and content at our existing clients.content.   As of August 31, 2018,2019, there were 91,897126,822 professionals using FactSet. In the second quarterFactSet, representing a net increase of fiscal 2017, FactSet changed its user count definition to include users from workstations previously not captured due to certain product bundling and users of the StreetAccount web product. The prior year user count was restated to reflect this change for comparison purposes. User count increased by 3,051 users34,925 or 38.0% in the past twelvelast 12 months primarily driven by an increase inWealth and Research workstation sales.   Annual client retention as of August 31, 2018,2019 was greater than 95% of ASV and 91%89%, when expressed as a percentage of clients. Our successful client retention demonstrates that a majority of our clients maintain their subscriptions to FactSet year over year, highlighting the strength of our business strategy. As of August 31, 2018,2019, our largest individual client accounted for approximately 2%3% of total subscriptions, and annual subscriptions from our ten largest clients did not surpass 15% of total client subscriptions.   Returning Value to Stockholders   On August 10, 2018,9, 2019, our Board of Directors approved a regular quarterly dividend of $0.64$0.72 per share. The cash dividend of $24.4$27.3 million was paid on September 18, 201819, 2019 to common stockholders of record at the close of business on August 31, 2018.30, 2019. We repurchased 1.50.9 million shares for $302.4$213.1 million during fiscal 20182019 under our existing share repurchase program. Over the last 12 months, we have generated $427.1 million in cash from operations and have returned $320.4 million to stockholders in the form of share repurchases and cash dividends.   On March 26, 2018, ourJune 24, 2019, the Board of Directors of FactSet approved a $300.0$210.0 million expansion of the existing share repurchase program. IncludingSubsequent to this expansion, $241.7$238.6 million iswas available for future share repurchases as of August 31, 2018.2019.   Capital Expenditures   Capital expenditures were $33.5$59.4 million during fiscal 2018,2019, compared to $36.9$33.5 million a year ago. Capital expenditures of $24.2$28.0 million, or 72% of our capital expenditures during fiscal 201847%, were primarily related to upgrades of existing computer systems in Norwalk,corporate infrastructure investments, additional server equipment for our data centers located in New Jersey and Virginia, as well as laptop computers and peripherals for new and existing employees.office space primarily in India. The remainder of our capital expenditures was primarily for the build outbuild-out of office space, including $2.8with $22.3 million at our Hong Kong location, $2.2related to the new corporate headquarters in Norwalk, Connecticut and $6.6 million at our India locations, and $1.5 million at our Netherlands location.related to new office space in India.   Results of Operations   For an understanding of the significant factors that influenced our performance during the past three fiscal years, the following discussion should be read in conjunction with the Consolidated Financial Statements and the Notes to Consolidated Financial Statements presented in this Report on Form 10-K.     Years ended August 31,     Years ended August 31,   (in thousands, except per share data)   2018     2017     Change     2017     2016     Change     2019   2018   Change   2018   2017   Change   Revenues   $ 1,350,145     $ 1,221,179       10.6 %   $ 1,221,179     $ 1,127,092       8.3 % Revenue   $ 1,435,351     $ 1,350,145     6.3 %   $ 1,350,145     $ 1,221,179     10.6 % Cost of services   $ 659,296     $ 566,580       16.4 %   $ 566,580     $ 487,409       16.2 %   $ 663,446     $ 659,296     0.6 %   $ 659,296     $ 566,580     16.4 % Selling, general and administrative   $ 324,645     $ 302,464       7.3 %   $ 302,464     $ 290,007       4.3 %   $ 333,870     $ 324,645     2.8 %   $ 324,645     $ 302,464     7.3 % Operating income   $ 366,204     $ 352,135       4.0 %   $ 352,135     $ 349,676       0.7 %   $ 438,035     $ 366,204     19.6 %   $ 366,204     $ 352,135     4.0 % Net income   $ 267,085     $ 258,259       3.4 %   $ 258,259     $ 338,815       (23.8 )%   $ 352,790     $ 267,085     32.1 %   $ 267,085     $ 258,259     3.4 % Diluted earnings per common share   $ 6.78     $ 6.51       4.1 %   $ 6.51     $ 8.19       (20.5 )%   $ 9.08     $ 6.78     33.9 %   $ 6.78     $ 6.51     4.1 % Diluted weighted average common shares     39,377       39,642               39,642       41,365             38,873     39,377           39,377     39,642           RevenuesRevenue   Fiscal 20120198compared to Fiscal 20172018   RevenuesRevenue in fiscal 2019 were $1.44 billion, increasing 6.3% compared to fiscal 2018. Our organic revenue growth rate for fiscal 2019 was 6.2% compared to the prior year period. Organic revenue excludes the effects of acquisitions and dispositions completed in the last 12 months, foreign currency in all periods presented and deferred revenue fair value adjustments from purchase accounting. The increase in revenue was due to revenue growth across all geographic segments and workflow solutions, including client additions and product expansion within our existing client base. The growth in the workflow solutions was primarily driven by Analytics and Trading, CTS and Wealth. The increase includes sales of products and solutions to new and existing clients, an annual price increase, partially offset by cancellations. Revenue growth in Analytics and Trading was primarily due to increased demand for our portfolio analytics solutions. The growth in CTS was driven mainly by increased sales of core and premium data feeds. Wealth also experienced revenue growth due to higher sales of our workstation product. Offsetting these growth factors were cancellations, resulting from continued industry-wide cost pressures and firm consolidations and closures. Fiscal 2018compared to Fiscal 2017 Revenue in fiscal 2018 were $1.35 billion, increasing 10.6% compared to fiscal 2017. Our organic revenue growth rate for fiscal 2018 was 5.6% compared to the prior year period,fiscal 2017, with cancellations remaining relatively flat during fiscal 2018. Organic revenues excluderevenue excludes the effects of acquisitions and dispositions completed in the last 12 months and foreign currency in all periods. The increase in revenuesrevenue was throughout our geographical segments and workflow solutions. The U.S. segment revenuerevenues was up 7.4% compared to the prior year period,fiscal 2017, primarily driven by additional clients, expansion from within our existing client base and an annual price increase, while holding client cancellations steady. Our international operations also grew as demonstrated by our 17.3% growth in Europe and a 13.1% increase in Asia Pacific. In addition to revenue growth amongst the geographic segments, achievements were also made across each workflow solution which include Research, Analytics and Trading, CTS, and Wealth. The Research workflow growth was driven by additional users due to banking new hires. The growth in the Analytics and Trading workflow was primarily attributed to increased sales in the portfolio analytics, reporting, and risk platforms, coupled with the enhancement of our multi-asset class risk model offerings, which strengthened our position in the analytics market. The CTS workflow growth was driven by increased demand for our proprietary content data feeds while new business sales drove the Wealth workflow growth.   Fiscal 2017 compared to Fiscal 2016 Revenues in fiscal 2017 were $1.22 billion, up 8.3% compared to fiscal 2016. Our organic revenue growth rate for fiscal 2017 increased 6.9% compared to fiscal 2016. The increase in revenues was primarily driven by organic ASV growth, continued momentum for our multi-asset class analytic solutions, workstations, data feeds products and the additions to our product offerings from our fiscal 2017 acquisitions. Offsetting these positive factors, we experienced cancellations due to firm consolidations and failures. RevenuesRevenue by Geographic Segment       Years ended August 31,   (in thousands)   2018     2017     2016   U.S.   $ 841,908     $ 784,146     $ 755,492   % of revenues     62.4 %     64.2 %     67.0 % Europe   $ 387,589     $ 330,332     $ 277,682   Asia Pacific   $ 120,648     $ 106,701     $ 93,918   International   $ 508,237     $ 437,033     $ 371,600   % of revenues     37.6 %     35.8 %     33.0 % Consolidated   $ 1,350,145     $ 1,221,179     $ 1,127,092       Years ended August 31,   (in thousands)    2019     2018     2017   U.S. Revenue   $ 894,554     $ 841,908     $ 784,146   % of revenue     62.3 %     62.4 %     64.2 % Europe Revenues   $ 408,084     $ 387,589     $ 330,332   Asia Pacific Revenues   $ 132,713     $ 120,648     $ 106,701   International Revenue   $ 540,797     $ 508,237     $ 437,033   % of revenue     37.7 %     37.6 %     35.8 % Consolidated Revenue   $ 1,435,351     $ 1,350,145     $ 1,221,179     Fiscal 20120198compared to Fiscal 20172018   Revenues from our U.S. segment increased 6.3% to $894.6 million in fiscal 2019 compared to $841.9 million in fiscal 2018. This increase was primarily due to increased sales of products and solutions to new and existing clients primarily in Analytics and Trading, CTS and Wealth, an annual price increase for the majority of our U.S. segment clients, partially offset by cancellations. Excluding the effects of acquisitions and dispositions, organic revenues in the U.S. was up 6.2% compared to fiscal 2018. Revenues from our U.S. operations accounted for 62.3% of our consolidated revenue during fiscal 2019, consistent with the prior year period. Revenue from our international operations increased 6.4% in fiscal 2019 compared to fiscal 2018. European revenues increased 5.3% to $408.1 million in fiscal 2019 compared to $387.6 million in fiscal 2018. This increase was primarily driven by increased sales of products and solutions to new and existing clients primarily in Analytics and Trading and CTS, which includes our annual price increase for the majority of our European clients, partially offset by increased cancellations in Research. European organic revenues grew 5.0% in fiscal 2019 compared to fiscal 2018. Foreign currency exchange rate fluctuations decreased our European growth rate by 30 basis points. Asia Pacific revenues increased 10.0% during fiscal 2019, compared with fiscal 2018. This increase was due mainly to increased sales of products and solutions to new and existing clients primarily in Analytics and Trading, which includes our annual price increase for the majority of our Asia Pacific clients, partially offset by cancellations. Asia Pacific organic revenues grew 10.0% during fiscal 2019 compared to fiscal 2018, with foreign currency exchange rate fluctuations having a minimal impact. Fiscal 2018compared to Fiscal 2017 Revenues from our U.S. segment increased 7.4% to $841.9 million in fiscal 2018 compared to $784.1 million in fiscal 2017, due to organic ASV growth across our workflow solutions and strong performance executing new business sales. Cancellations remained relatively flat for fiscal 2018 showing signs of stability. Excluding the effects of acquisitions and dispositions, organic revenuerevenues in the U.S. waswere up 5.1% compared to fiscal 2017. RevenueRevenues from our U.S. operations accounted for 62.4% of our consolidated revenuesrevenue during fiscal 2018, a decrease from 64.2% in fiscal 2017.   Revenue from our international operations increased 16.3% in fiscal 2018 compared to fiscal 2017, due to growth across our workflow solutions, partially offset by higher cancellations compared to the prior year.   European revenuerevenues increased 17.3% to $387.6 million in fiscal 2018 compared to $330.3 in fiscal 2017. Excluding the effects of acquisitions and dispositions completed in the last 12 months and foreign currency, European organic revenuerevenues grew 9.4% in fiscal 2018 compared to fiscal 2017. Foreign currency exchange rate fluctuations increased our European growth rate by 150 basis points.   Asia Pacific revenuerevenues increased 13.1% during fiscal 2018, compared with fiscal 2017. Excluding the effects of acquisitions and dispositions completed in the last 12 months and foreign currency, Asia Pacific organic revenuerevenues grew 12.9% during fiscal 2018 compared to fiscal 2017, with foreign currency exchange rate fluctuations remaining flat compared to prior year. Fiscal 2017 compared to Fiscal 2016 Revenue from our U.S. segment increased 3.8% to $784.1 million in fiscal 2017 compared to $755.5 million in fiscal 2016. Our U.S. revenue growth reflected the performance from both our Analytics and CTS workflows, as well as revenue from acquisitions completed in fiscal 2017. Excluding the effects of acquisitions and dispositions completed in the last 12 months, organic revenue in the U.S. increased 6.2% compared to fiscal 2016. Revenue from our U.S. operations accounted for 64.2% of our consolidated revenues during fiscal 2017,having a decrease from 67.0% in fiscal 2016 due to the acquisitions completed in fiscal 2017 which primarily increased international revenue. European revenue increased 19.0% in fiscal 2017 compared to fiscal 2016 due to solid growth in both our CTS and Analytics workflows as well as, client price increases, and acquisitions completed in 2017, partially offset by the impact of foreign currency translation. Foreign currency exchange rate fluctuations reduced our European growth rate by 40 basis points. Excluding the effects of acquisitions and dispositions completed in the last 12 months and foreign currency, European revenue grew 8.3% compared to fiscal 2016. The Asia Pacific revenue growth rate of 13.6% was primarily due to increased subscriptions to our content, analytic solutions and core workstation product offerings. Additionally, foreign currency exchange rate fluctuations increased our Asia Pacific growth rate by 46 basis points. Excluding the effects of acquisitions and dispositions completed in the last 12 months and foreign currency, Asia Pacific revenue grew 12.7% compared to fiscal 2016.minimal impact.   Operating Expenses     Years ended August 31,     Years ended August 31,   (in thousands)   2018     2017     2016     2019   2018   2017   Cost of services   $ 659,296     $ 566,580     $ 487,409     $ 663,446     $ 659,296     $ 566,580   Selling, general and administrative (“SG&A”)     324,645       302,464       290,007       333,870       324,645       302,464   Total operating expenses   $ 983,941     $ 869,044     $ 777,416     $ 997,316     $ 983,941     $ 869,044                             Operating income   $ 366,204     $ 352,135     $ 349,676     $ 438,035     $ 366,204     $ 352,135   Operating Margin     27.1 %     28.8 %     31.0 %     30.5 %     27.1 %     28.8 % Cost of Services   Fiscal 20120198compared to Fiscal 2012018 Cost of services increased 0.6% to $663.4 million in fiscal 2019 compared to $659.3 in fiscal 2018. This increase was primarily due to an increase in data costs and computer-related expenses, partially offset by a reduction in compensation costs and contractor fees. Cost of services, expressed as a percentage of revenue, was 46.2% during fiscal 2019, a decrease of 260 basis points over the prior year period. This decrease was primarily due to revenue growth outpacing the growth of cost of services on a year over year basis, as well as a decrease in compensation costs, partially offset by an increase in computer-related expenses, when expressed as a percentage of revenue. Employee compensation, when expressed as a percentage of revenue decreased 300 basis points in fiscal 2019, compared to the prior fiscal year. This decrease in employee compensation was primarily driven by a foreign currency benefit from a stronger U.S. dollar, a shift in headcount distribution from our higher to lower cost locations, the timing of new employee hiring, and a restructuring charge impacting the prior year period, partially offset by higher employee benefit costs. Computer-related expenses increased 40 basis points, when expressed as a percentage of revenue for fiscal 2019, compared to the prior year period, primarily driven by increased costs from cloud-based hosting and licensed software arrangements. 7Fiscal 2018compared to Fiscal 2017   Cost of services increased 16.4% to $659.3 million in fiscal 2018 compared to the prior$566.6 million in fiscal year.2017. Cost of services, expressed as a percentage of revenues,revenue, was 48.8% during fiscal 2018, an increase of 240 basis points over the prior year period.fiscal 2017. This increase was primarily due to higher employee compensation costs driven by increased employee headcount and restructuring actions, incremental data costs from recent acquisitions and additional users as well as amortization of intangible assets associated with our recent acquisitions. This increase was partially offset by a reduction in stock-based compensation expenses from accelerated vesting in the prior year.fiscal 2017.   Employee compensation, including stock-based compensation, when expressed as a percentage of revenuesrevenue increased 100 basis points in fiscal 2018, compared to fiscal 2017. The increase is primarily due to the hiring of 497 net new employees over the last 12 months, with the majority of their compensation recorded in cost of services due to their involvement with content collection, engineering and product development. Employee compensation expense further increased due to headcount expansion from prior yearfiscal 2017 acquisitions that were included for a full year in fiscal 2018, while fiscal 2017 only included a partial year amount. In addition, during fiscal 2018 we incurred $17.4 million of restructuring charges primarily related to severance of which $8.5 million was recorded within cost of services. Data costs, when expressed as a percentage of revenues,revenue, increased 60 basis points due primarily from our recent acquisitions and higher variable data costs associated with additional users. Amortization of acquired intangible assets, when expressed as a percentage of revenues,revenue, increased 20 basis points in fiscal 2018 compared to the same period a year ago, primarily due to recent acquisitions, which added $93.2 million of intangible assets to be amortized over a weighted-average life of 11.5 years. These intangible assets were amortized for the full fiscal 2018, while, fiscal 2017 did not include a similar amount of acquisition amortization due to the dates of each acquisition.   Selling, General and Administrative   Fiscal 2017 2019compared to Fiscal 20162018   Cost of servicesSG&A expenses increased 16.2%2.8% to $566.6$333.9 million during fiscal 2019 compared to $324.6 million in fiscal 2017, compared2018. This increase was primarily due to fiscal 2016. Cost of services,an increase in bad debt expense and compensation costs, partially offset by a reduction in travel expenses. SG&A expenses, expressed as a percentage of revenues, was 46.4%revenue, were 23.3% in fiscal 2017,2019, a decrease of 70 basis points over the prior year period. This year over year decrease was primarily due to revenue growth outpacing the growth of SG&A related expenses, lower employee compensation and a reduction in travel costs, partially offset by an increase in bad debt expense, when expressed as a percentage of 320 basis points compared to fiscal 2016. The increase was primarily driven by higher employee compensation, including stock-based compensation, computer related expenses, amortization of intangibles and acquisition-related costs.revenue.   Employee compensation, including stock-based compensation, when expressed as a percentage of revenues, increased 200revenue, decreased 50 basis points in fiscal 20172019, compared to fiscal 2016. In fiscal 2017, 6992018. This decrease is primarily driven by a foreign currency benefit from a stronger U.S dollar, a shift in headcount distribution from our higher to lower cost locations, the timing of new employees were added, which included head count expansion from acquisitions of 498 new employees (primarily in the European segment), as well as base salary changes and incremental hires in our centers of excellence located in India and the Philippines. The increase was also due to new employees hired, of which a significant number were involved with content collection, engineering and product development. As of August 31, 2017, approximately 70% of our employees performed operational roles. Employee compensation also increased due to a charge of $5.9 million related to restructuring actionsemployee hiring, and a change inrestructuring charge impacting the vesting of performance-based stock options. Computer-relatedprior year period, partially offset by higher employee benefit costs. Travel expenses which include depreciation, maintenance, software and other fees increaseddecreased 30 basis points, when expressed as a percentage of revenues in fiscal 2017 compared to fiscal 2016. The increase wasrevenue, due to added computer-related expenses, depreciation associated with the additional laptop computers and peripherals for new and existing employees, upgrades to existing computer systems, and improvements to our telecommunication equipment. Amortization of intangible assetsan internal focus on cost discipline measures. Bad debt expense increased 3060 basis points, when expressed as a percentage of revenues, in fiscal 2017 compared to fiscal 2016 primarily due to our fiscal 2017 acquisitions, which added approximately $93.2 million of intangible assets to be amortized over a weighted-average life of 11.5 years. Additionally, acquisition-related costs increased cost of sales by approximately 40 basis points when expressed as a percentage of revenues year over year. Selling, General and Administrative revenue.   Fiscal 20120188compared to Fiscal 20172017   SG&A expenses increased 7.3% to $324.6 million during fiscal 2018 compared to $302.5 million in fiscal 2017. SG&A expenses, expressed as a percentage of revenues,revenue, were 24.0% in fiscal 2018, a decrease of 70 basis points over the prior year period.fiscal 2017. This decrease was primarily due to revenue growth outpacing the growth of SG&A related expenses on a year over year basis, foreign currency exchange gains on hedging activities of our Indian Rupee and lower overall employee compensation including stock-based compensation expense. This decrease was partially offset primarily by higher legal costs, restructuring actions and new employee additions.   Employee compensation, including stock-based compensation, when expressed as a percentage of revenuesrevenue decreased 50 basis points compared to fiscal 2017. The decrease is primarily related to a higher percentage of our employees working in a cost of services capacity compared to an SG&A role. Compensation for our employees within the content collection, consulting, product development, software and systems engineering groups is recorded within cost of services while employees within our sales and various other support and administrative departments are reflected in SG&A. In fiscal 2018, the majority of our hiring hashad been in departments within cost of services, thus driving a higher percentage of our employee compensation in this area. Partially offsetting these decreases were higher legal expenses primarily from the settlement of a legal matter in the fourth quarter of fiscal 2018, a full year of employee compensation from recent acquisitions and $8.9 million of severance charges. Fiscal 2017 compared to Fiscal 2016 SG&A expenses increased 4.3% to $302.5 million during fiscal 2017 compared to $290.0 million in fiscal 2016. SG&A expenses, expressed as a percentage of revenues, was 24.8% in fiscal 2017, a decrease of 90 basis points compared to fiscal 2016 due to lower employee compensation expense partially offset by higher professional fees and occupancy costs, including rent expense and depreciation of furniture and fixtures. Additionally, fiscal 2016 included a charge of $3.3 million related primarily to legal matters. Employee compensation, including stock-based compensation, when expressed as a percentage of revenues, decreased 160 basis points in fiscal 2017 compared to fiscal 2016 due to a continued shift in our employee base from SG&A to cost of service related roles. This decrease in employee compensation was offset by a charge of $4.4 million related to restructuring actions and a change in the vesting of performance-based stock options. Professional fees, expressed as a percentage of revenues, increased 30 basis points from costs associated with acquisitions in fiscal 2017. Occupancy costs, when expressed as a percentage of revenues, increased 30 basis points due to the increase in the worldwide-leased office space of 71,000 square feet, which included expanded offices in Germany, Switzerland, Bulgaria, India and the Netherlands.   Operating Income and Operating Margin   Fiscal 20120198compared to Fiscal 2012018 Operating income increased 19.6% to $438.0 million in fiscal 2019 compared to $366.2 million in fiscal 2018. Operating income increased due to revenue growth, favorable foreign exchange rates which reduced the overall operating expense impact and mainly resulted in a reduction in compensation expense, as well as, decreased costs from restructuring actions, decreased travel expenses and contractor fees, partially offset by an increase in data costs, computer-related expenses and bad debt expense. Our operating margin increased in fiscal 2019 to 30.5%, compared to 27.1% for fiscal 2018. Operating margin increased due to incremental revenue that outpaced the growth of our operating expenses year over year, favorable foreign exchange rates, which reduced the overall operating expense impact and mainly resulted in a reduction in compensation expense, as well as, lower costs from restructuring actions, a reduction in travel expenses, partially offset by higher bad debt expense and computer-related expenses, when expressed as a percentage of revenue. 7Fiscal 2018compared to Fiscal 2017   Operating income increased 4.0% to $366.2 million in fiscal 2018 compared to $352.1 million in fiscal 2017. Our operating margin decreased in fiscal 2018 to 27.1%, compared to 28.8% for fiscal 2017. Operating income increased due to incremental revenue that outpaced the growth of SG&A expenses year over year partially offset by higher cost of services. The reduction in operating margin year over year was due to an increase in employee compensation costs, including restructuring actions, data costs from acquisitions and additional users, amortization of intangible assets associated with our recent acquisitions, and incremental legal fees partially offset by foreign currency exchange gains on hedging activities and lower stock-based compensation.   Fiscal 2017 compared to Fiscal 2016 Operating income increased 0.7% to $352.1 million in fiscal 2017 compared to fiscal 2016. Our operating margin for fiscal 2017 was 28.8%, down from 31.0% in fiscal 2016. Expenses related to employee compensation, professional fees, computer related costs, amortization of intangibles and acquisition-related costs all increased in fiscal 2017, which resulted in our total operating expenses increasing to 11.8% year over year. We also recognized charges of approximately $18.0 million related to restructuring actions, a change in the vesting of performance-based stock options and other acquisition-related costs, compared to $7.0 million in fiscal 2016. The higher expenses were offset partially by a year over year increase in revenues of 8.3%, driven partially by our recent acquisitions. Operating Income by Segment     Years ended August 31,     Years ended August 31,   (in thousands)   2018     2017     2016     2019   2018   2017   U.S.   $ 148,095     $ 137,105     $ 165,251     $ 179,374     $ 148,095     $ 137,104   Europe     148,977       153,676       131,410     179,258     148,977     153,676   Asia Pacific     69,132       61,354       53,015       79,403       69,132       61,355                             Consolidated   $ 366,204     $ 352,135     $ 349,676     $ 438,035     $ 366,204     $ 352,135     Our operating segments are aligned with how we manage the business, the demographic markets we serve, and how the CODMG assesses performance. Our internal financial reporting structure is based on three reportable segments, the U.S., Europe and Asia Pacific, which we believe helps us better manage the business and view the markets we serve. Sales, consulting, data collection, product development and software engineering are the primary functional groups within each segment. Each segment records compensation expense, including stock-based compensation, amortization of intangible assets, depreciation of furniture and fixtures, amortization of leasehold improvements, communication costs, professional fees, rent expense, travel, office and other direct expenses. Expenditures associated with our data centers, third-party data costs and corporate headquarter charges are recorded by the U.S. segment and are not allocated to the other segments. The centers of excellence, located in India and the Philippines, primarily focus on content collection that benefit all our segments. The expenses incurred at these locations are allocated to each segment based on a percentage of revenues.revenue. Fiscal 2019compared to Fiscal 2018 U.S. operating income increased 21.1% to $179.4 million during fiscal 2019, compared to $148.1 million a year ago. The increase in U.S. operating income was primarily due to revenue growth of 6.3% and a reduction in compensation expense, partially offset by increased computer-related expenses, data costs, bad debt expense and occupancy expense. Compensation expense decreased due to a net reduction in headcount of 4.9% over the past 12 months, the timing of new employee hiring, and a restructuring charge impacting the prior year period, partially offset by higher employee benefit costs. Computer related expenses increased year over year primarily due to increased costs from cloud-based hosting and licensed software arrangements. Data costs increased due to increased acquisition costs of fixed cost content and additional spend on variable cost content to drive revenue growth. Occupancy costs increased primarily related to leasing the new corporate headquarters space in Norwalk, Connecticut. European operating income increased 20.3% to $179.3 million during fiscal 2019, compared to $149.0 million a year ago. The increase in European operating income was primarily due to revenue growth of 5.3% and an overall reduction in operating expenses driven mainly by a decrease in employee compensation expense and occupancy expense, partially offset by an increase in bad debt expense. Employee compensation decreased primarily due to a foreign currency benefit from a stronger U.S. dollar, a restructuring charge impacting the prior year period, partially offset by a net headcount increase of 2.9% over the past 12 months. Occupancy costs decreased due to a one-time adjustment recognized in fiscal 2019. The impact of foreign currency increased European operating income by $6.6 million year over year. Asia Pacific operating income increased 14.9% to $79.4 million during fiscal 2019, compared to $69.1 million a year ago. The increase in Asia Pacific operating income was due to revenue growth of 10.0% and benefits from a stronger U.S. dollar, partially offset by increases in compensation expense and occupancy costs. Employee compensation was higher, year over year, due to a 3.3% increase in our Asia Pacific workforce, partially offset by a foreign currency benefit from a stronger U.S. dollar. Occupancy costs increased due primarily to the expansion of office space in India and the Philippines. The impact of foreign currency increased Asia Pacific operating income by $3.2 million year over year.   Fiscal 20120188compared to Fiscal 20172017   U.S. operating income increased 8.0% to $148.1 million during fiscal 2018 compared to $137.1 million a year ago.in fiscal 2017. The increase in U.S. operating income was primarily due to revenue growth of 7.4%, partially offset by increased expenses related to employee compensation, computer equipment and data costs. Employee compensation increased primarily due to annual base salary increases, restructuring actions, and higher employee benefit costs including medical expenditures. Computer related expenses, which include depreciation, maintenance, software and other fees, increased year over year due to expenses associated with upgrades to existing computer systems in Norwalk, additional server equipment in our data centers located in New Jersey and Virginia, as well as laptop computers and peripherals for new and existing employees. Data costs increased due to higher third-party data costs from our recent acquisitions and additional users.   European operating income decreased 3.1% to $149.0 million during fiscal 2018 compared to $153.7 million a year ago.in fiscal 2017. The impact of foreign currency decreased European operating income by $4.9 million year over year. Additionally, the decrease in European operating income was due to a full year impact of fiscal 2017 acquisitions, contributingthat contributed to higher employee compensation, amortization of intangible assets, and data costs, partially offset by revenue growth of 17.3%.   Asia Pacific operating income increased 12.7% to $69.1 million during fiscal 2018 compared to $61.4 million a year ago.in fiscal 2017. The increase in Asia Pacific operating income was due to revenue growth of 13.1% and benefits from a stronger U.S. dollar, partially offset by increases in employee compensation and occupancy costs. Employee compensation was higher year over year as result of a 9.2% increase in our Asia Pacific workforce. Occupancy costs increased due primarily to an increase in rent expense for additional office space in our Philippines location. The impact of foreign currency increased Asia Pacific operating income by $3.6 million year over year.   Fiscal 2017 compared to Fiscal 2016 U.S. operating income decreased 17.0% to $137.1 million during fiscal 2017 compared to $165.3 million in fiscal 2016. The decrease in U.S. operating income was primarily due to increases in expenses related to employee compensation, and occupancy costs, partially offset by revenue growth of 3.8%. Employee compensation increased primarily due to a 3.6% increase in U.S. employee headcount year over year and a change in the vesting of performance-based stock options. Occupancy costs including rent expense and depreciation of furniture and fixtures increased due primarily to an increase in rent expense at our New York location. European operating income increased 16.9% to $153.7 million during fiscal 2017 compared to $131.4 million in fiscal 2016. The increase in European operating income was due to revenue growth of 19.0% and benefits from a stronger U.S. dollar, offset by higher employee compensation, occupancy costs, and amortization of intangibles. European revenue grew due to acquisitions completed in 2017, which had a significant sales presence in European markets. The impact of foreign currency increased European operating income by $6.2 million year over year. Employee compensation was higher in fiscal 2017 compared to fiscal 2016 due to an increase of 473 net new employees in our European offices. These employees were primarily from acquisitions completed in 2017. Occupancy costs including rent expense and depreciation of furniture and fixtures increased due primarily to an increase in rent expense in Germany associated with the 2017 acquisitions. Amortization of intangibles increased due to the addition of $93.2 million of intangibles, the majority of which resided in our European segment. Asia Pacific operating income increased 15.7% to $61.4 million during fiscal 2017 compared to $53.0 million in fiscal 2016. The increase in Asia Pacific operating income was due to revenue growth of 13.6% and benefits from a stronger U.S. dollar, partially offset by increases in employee compensation and occupancy costs. Employee compensation was higher year over year as a result of a 2.7% increase in our Asia Pacific workforce in fiscal 2017. Occupancy costs increased due to an increase in rent expense at our India locations. The impact of foreign currency increased Asia Pacific operating income by $1.4 million year over year.   Income Taxes, Net Income and Diluted Earnings per Share     Years ended August 31,     Years ended August 31,   (in thousands)   2018     2017     2016     2019   2018   2017   Provision for income taxes   $ 84,753     $ 86,053     $ 122,178     $ 69,175     $ 84,753     $ 86,053   Net income   $ 267,085     $ 258,259     $ 338,815     $ 352,790     $ 267,085     $ 258,259   Diluted earnings per common share   $ 6.78     $ 6.51     $ 8.19     $ 9.08     $ 6.78     $ 6.51     Income Taxes   Fiscal 20120198compared to Fiscal 20120187 The fiscal 2019 provision for income taxes was $69.2 million, a decrease of 18.4% from the same period a year ago. The decrease was primarily attributable to the enactment of the TCJA. The TCJA imposed a one-time transition tax expense, which resulted in a $23.2 million impact to the income tax provision for fiscal 2018, without a comparable impact in fiscal 2019. This transition tax impact was revised during fiscal 2019, resulting in a net benefit of $3.4 million upon finalizing the accounting for the tax effects of the TCJA. The TCJA also lowered the statutory U.S corporate income tax rate from 35% to 21%, effective January 1, 2018, which was fully applicable for fiscal 2019 compared to the lower tax rate being phased in for the prior year comparable period. The reduction in the U.S. corporate income tax rate required a remeasurement of our net U.S. deferred tax position, which resulted in a non-recurring tax charge of $2.2 million during fiscal 2018. The decrease in the income tax provision year over year was partially offset by a $3.3 million income tax expense from finalizing prior years’ tax returns and other discrete items for fiscal 2019. Our effective tax rate was 16.4% for the full fiscal 2019 year compared to 24.1% a year ago was mainly due the reduction in the federal statutory rate from the enactment of the TCJA that was fully applicable for fiscal year 2019 compared to being phased in for the prior year comparable period. The decrease in the effective tax rate for fiscal 2019 was also due to the one-time transition tax from the TCJA that was recorded in the prior year period. These benefits were partially offset by higher foreign income taxed at rates lower than U.S. rates. Fiscal 2018 compared to Fiscal 2017   The fiscal 2018 provision for income taxes was $84.8 million, a decrease of 1.5% from the same period a year ago.fiscal 2017. The decrease was primarily attributable to the impacts associated with the U.S. tax reform under the Tax Cuts and Jobs Act (“TCJA”).TCJA. On December 22, 2017, the U.S. government enacted comprehensive tax legislation through the TCJA. The TCJA, among other things, lowered the statutory U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018. Due to our August 31 fiscal year-end, the lower tax rate was phased in, resulting in a blended U.S. statutory federal rate of 25.7% for fiscal 2018. The TCJA also implemented a modified territorial tax system and imposed a mandatory one-time transition tax on accumulated earnings and profits (“E&P”) of foreign subsidiaries that were previously deferred from U.S. income taxes.   Our effective tax rate was 24.1% for the full fiscal 2018 year compared to 25.0% a year agoin fiscal 2017, due to higher foreign income taxed at rates lower than U.S. rates, incremental income tax benefits from R&D tax credits and increased excess tax benefits from stock option exercises. These benefits were partially offset by the one-time transition tax of $23.2 million and a $2.3 million tax expense associated with the remeasurement of our net U.S. deferred tax position, both of which related to the TCJA. We had approximately $250 million in undistributed foreign E&P generated prior to December 31, 2017, which resulted in the provisional amount for the one-time transition tax expense of $23.2 million, payable over an eight-year period. This amount may change as we finalize the calculation of foreign E&P previously deferred from U.S. federal taxation, as well as the analysis of available foreign tax credits. Due to the changes in taxation of undistributed foreign earnings under the TCJA, we will continue to analyze foreign subsidiary earnings, as well as global working capital requirements, and may repatriate earnings when the amounts are remitted substantially free of additional tax. In addition, the estimates may also be affected by changes in interpretations at the federal and state levels, and any additional regulatory guidance that may be issued.   Fiscal 2017 compared to Fiscal 2016 The fiscal 2017 provision for income taxes was $86.1 million, down 29.6% compared to fiscal 2016. The decrease was primarily due to tax expense of $30.8 million related to the gain on sale of our Market Metrics business that occurred in fiscal 2016. Excluding the tax impact of the gain, the provision for income taxes decreased by 5.9% year over year related primarily to our organizational realignment. As of September 1, 2016, we realigned certain aspects of our global operations from FactSet Research Systems Inc., our U.S. parent company, to FactSet UK Limited, a U.K. operating company, to better serve our growing client base outside the U.S. Due to the realignment we recognized a 200 basis point benefit in our annual tax rate. Additionally, excluding the gain on sale in fiscal 2016, our provision for income taxes decreased due to a decrease in taxable income year over year. This decrease was due primarily to higher interest expense incurred as a result of an increase in our outstanding debt borrowings by approximately $300 million. Net Income and Diluted Earnings per Share   Fiscal 20120198compared to Fiscal 2012018 Net income increased 32.1% to $352.8 million while diluted earnings per share increased 33.9% to $9.08 during fiscal 2019 compared to fiscal 2018. Net income and diluted EPS increased primarily due to higher operating income, a reduction in the income tax provision primarily due to the TCJA reform, partially offset by an increase in interest expense associated with our outstanding debt. Diluted EPS also benefited from a 0.5 million share reduction in our diluted weighted average shares outstanding, compared to the same period a year ago, mainly due to share repurchases, partially offset by the impact from stock options issued. 7Fiscal 2018compared to Fiscal 2017   Net income increased 3.4% to $267.1 million, while diluted earnings per share increased 4.1% to $6.78 during fiscal 2018 compared to fiscal 2017. Net income and diluted EPS grew primarily due tofrom higher revenuesrevenue from strong performances across our segments and workflow solutions, gains earned from our foreign currency hedges, and a decrease in our effective tax rate due to the TCJA. These benefits were partially offset by an increase in employee compensation expenses, data costs, amortization of intangible assets from acquisitions, occupancy costs, and interest expense associated with our outstanding debt. Diluted EPS also benefited from a 0.3 million reduction in our weighted average shares outstanding due to share repurchases partially offset by stock option exercises during fiscal 2018.   Fiscal 2017 compared to Fiscal 2016 Net income decreased 23.8% to $258.3 million and diluted earnings per share decreased 20.5% to $6.51 during fiscal 2017 compared to fiscal 2016. A large component of the decrease year over year was related to the after-tax gain of $81.7 million from the sale of the Market Metrics business in fiscal 2016. This gain increased diluted earnings per share by $2.01. Excluding the fiscal 2016 after-tax gain on sale, net income increased 0.4% year over year, while diluted EPS increased by 5.3%. During fiscal 2017, net income and diluted earnings per share increased due to revenue growth of 8.3% year over year, coupled with a reduction to the income tax provision of 29.6% primarily related to the gain from the sale of our Market Metrics business along with an organizational realignment. Additionally, during fiscal 2017, foreign currency movements increased operating income by $7.1 million compared to a benefit of $11.6 million in the same period of fiscal 2016. These increases were partially offset by incremental employee compensation expense due to the hiring of 699 net new employees (including 498 employees from acquisitions completed in the last 12 months), an increase in professional fees, occupancy costs, computer related expenses, amortization of intangibles and acquisition-related costs. The increase in diluted earnings per share was also driven by a decrease in diluted shares outstanding as a result of continued share repurchases in fiscal 2017. Non-GAAP Financial Measures   To supplement the financial measures prepared in accordance with GAAP, we use non-GAAP financial measures including organic revenue, adjusted operating margin, adjusted net income and adjusted diluted earnings per share. The reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are shown in tables below. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for or superior to, financial measures reported in accordance with GAAP. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of the business as determined in accordance with GAAP. Other companies may calculate similarly titled non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.   Despite the limitations of these non-GAAP financial measures, we believe these adjusted financial measures and the information they provide are useful in viewing our performance using the same tools that management uses to gauge progress in achieving our goals. Adjusted measures may also facilitate comparisons to our historical performance.     The table below provides an unaudited reconciliation of revenuesrevenue to organic revenues.revenue.       Twelve Months Ended August 31,   (In thousands)   2018     2017     Change   Revenues   $ 1,350,145     $ 1,221,179       10.6 % Deferred revenue fair value adjustment(1)     7,691       5,486           Acquisitions and divestitures completed(2)     (58,624 )     (1,222 )         Currency impact (foreign currency movements)(3)     (4,952 )     —           Organic revenues   $ 1,294,260     $ 1,225,443       5.6 %     Twelve Months Ended August 31,   (In thousands)   2019     2018     Change   Revenue   $ 1,435,351     $ 1,350,145       6.3 % Deferred revenue fair value adjustment(1)     5,185       7,691           Currency impact(2)     985       —           Organic revenue   $ 1,441,521     $ 1,357,836       6.2 %     (1) DDeferred revenue fair value adjustments from purchase accounting.eferred revenue fair value adjustments from purchase accounting.

(2)

Acquired revenuesThe impact from acquisitions and divestitures completed withinforeign currency movements over the lastpast 12 months.

(3)

The impact from foreign currency movements over the past 12 months.

The table below provides an unaudited reconciliation of operating income, operating margin, net income and diluted EPS to adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS.EPS, respectively.