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Note 16 - Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
May 31, 2017
May 31, 2016
May 31, 2017
May 31, 2016
Income before income taxes $ 85,229 $ 88,857 $ 264,539 $ 261,177
Provision for income taxes $ 19,815 $ 22,076 $ 65,832 $ 66,669
Effective tax rate 23.20% 24.80% [1] 24.90% 25.50% [1]
[1] In December 2015, the Consolidated Appropriations Act, 2016 (the “2016 ACT”) was signed into law. The ACT reinstated and made permanent the U.S. Federal R&D tax credit (the “R&D tax credit”), which had previously expired on December 31, 2014. The reenactment of the R&D tax credit was retroactive to January 1, 2015 and by providing for a permanent R&D tax credit, the 2016 ACT eliminates the yearly uncertainty surrounding the extension of the credit. Prior to the reenactment of the R&D tax credit, FactSet had not been permitted to factor it into its effective tax rate as it was not currently enacted tax law. The reenactment resulted in a discrete income tax benefit of $7.3 million during the second quarter of fiscal 2016 and reduced the Company’s effective tax rate for the nine months ended May 31, 2016 to 25.5%.