. SEGMENT

INFORMATION

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

may

earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Financial information at the operating segment level is reviewed jointly by the Chief Executive Officer (“CEO”) and senior management. Senior management consists of executives who directly report to the CEO, consisting of the Chief Financial Officer, Chief Operating Officer, Global Head of Sales and Client Solutions, General Counsel and Chief Human Resources Officer. Senior management, along with the CEO, constitute FactSet’s chief operating decision making group (“CODMG”) and is responsible for making decisions about resources allocated amongst the operating segments based on actual results.

FactSet’s operating segments are aligned with how the Company, including its CODMG, manages the business and the demographic markets in which FactSet serves. The Company’s internal financial reporting structure is based on

three

segments; the U.S., Europe and Asia Pacific. FactSet believes this alignment helps it better manage the business and view the markets the Company serves, which are centered on providing integrated global financial and economic information. Sales, consulting, data collection, product development and software engineering are the primary functional groups within the U.S., Europe and Asia Pacific segments that provide global financial and economic information to investment managers, investment banks and other financial services professionals. Effective

September 1, 2016,

FactSet realigned certain aspects of its global operations from its U.S. parent company to FactSet UK Limited, a U.K. operating company, to better position FactSet to serve its growing client base outside the U.S. While this realignment allows the Company to further implement strategic corporate objectives and helps achieve operational and financial efficiencies, it does

not

impact how the CODMG analyzes business performance within the segments.

The U.S. segment services finance professionals including financial institutions throughout the Americas, while the European and Asia Pacific segments service professionals and institutions located throughout Europe and the Asia Pacific region, respectively. The European segment is headquartered in London, England and maintains office locations in France, Germany, Ireland, Italy, Latvia, Luxembourg, the Netherlands, Spain, South Africa, Sweden, Switzerland and Dubai. The Asia Pacific segment is headquartered in Tokyo, Japan with office locations in Australia, Hong Kong, Singapore and India. Segment revenues reflect direct sales to clients based in their respective geographic locations. Each segment records compensation expense, including stock-based compensation, amortization of intangible assets, depreciation of furniture and fixtures, amortization of leasehold improvements, communication costs, professional fees, rent expense, travel, marketing, office and other direct expenses. Expenditures associated with the Company’s data centers,

third

party data costs and corporate charges are recorded by the U.S. segment and are

not

allocated to the other segments. The content collection centers located in India and the Philippines benefit all of the Company’s operating segments and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenues. Of the total

$695.7

million of goodwill reported by the Company at

May 31, 2017,

55%

was recorded in the U.S. segment,

44%

in the European segment and the remaining

in the Asia Pacific segment.

The following reflects the results of operations of the segments consistent with the Company’s management system. These results are used by management, both in evaluating the performance of, and in allocating resources to, each of the segments.

(in thousands) For the three months ended May 31, 2017	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	197,834	$	87,327	$	26,959	$	312,120
Segment operating profit		34,382		37,766		15,494		87,642
Total assets		708,440		555,366		94,208		1,358,014
Capital expenditures		6,211		515		1,210		7,936

For the three months ended May 31, 2016	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	193,166	$	70,243	$	24,092	$	287,501
Segment operating profit		42,020		33,304		13,966		89,290
Total assets		696,832		264,910		77,233		1,038,975
Capital expenditures		6,060		913		1,260		8,233

For the nine months ended May 31, 2017	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	580,090	$	235,464	$	78,983	$	894,537
Segment operating profit		110,574		114,282		44,851		269,707
Capital expenditures		21,311		1,176		3,494		25,981

For the nine months ended May 31, 2016	U.S.		Europe		Asia Pacific		Total
Revenues from clients	$	565,063	$	206,198	$	68,540	$	839,801
Segment operating profit		127,479		95,536		38,927		261,942
Capital expenditures		29,133		2,181		3,357		34,671