. SEGMENT

INFORMATION

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

may

earn revenue and incur expense, (ii) with operating results that 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 (iii) for which discrete financial information is available. Executive management, along with the CEO, constitute FactSet’s chief operating decision making group (“CODMG”). Executive management consists of certain executives who directly report to the CEO, consisting 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 & 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.

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

three

segments: the U.S., Europe and Asia Pacific. The Company believes this alignment helps to better manage the business and view the markets it 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. These functional groups provide global financial and economic information to investment managers, investment banks and other financial services professionals.

The U.S. segment serves investment professionals including financial institutions throughout the Americas. The Europe and Asia Pacific segments serve investment professionals located throughout Europe and Asia Pacific, respectively. Segment revenue reflects direct sales to clients based on 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, office and other direct expenses.

Expenditures associated with the Company’s 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 content collection centers, located in India, the Philippines, and Latvia, benefit all the Company’s operating segments and thus the expenses incurred at these locations are allocated to each segment based on a percentage of revenue. Of the total

$700.0

million of goodwill reported by the Company at

February 28, 2019,

55%

was recorded in the U.S. segment,

44%

in the Europe 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 structure. These results are used, in part, by management, both in evaluating the performance of, and in allocating resources to, each of the segments.

(in thousands) For the three months ended February 28, 2019	U.S.		Europe		Asia Pacific		Total
Revenue from clients	$	223,315	$	98,933	$	32,647	$	354,895
Segment operating income	$	45,696	$	43,248	$	19,744	$	108,688
Total assets	$	792,573	$	556,526	$	115,895	$	1,464,994
Capital expenditures	$	7,254	$	434	$	4,269	$	11,957

For the three months ended February 28, 2018	U.S.		Europe		Asia Pacific		Total
Revenue from clients	$	208,900	$	96,206	$	30,125	$	335,231
Segment operating income	$	38,527	$	36,993	$	19,965	$	95,485
Total assets	$	733,045	$	634,472	$	104,975	$	1,472,492
Capital expenditures	$	3,729	$	755	$	1,979	$	6,463

(in thousands) For the six months ended February 28, 2019	U.S.		Europe		Asia Pacific		Total
Revenue from clients	$	445,518	$	196,698	$	64,319	$	706,535
Segment operating income	$	89,537	$	82,337	$	37,353	$	209,227
Capital expenditures	$	11,358	$	1,697	$	8,427	$	21,482

For the six months ended February 28, 2018	U.S.		Europe		Asia Pacific		Total
Revenue from clients	$	417,668	$	187,933	$	58,771	$	664,372
Segment operating income	$	79,298	$	69,963	$	35,322	$	184,583
Capital expenditures	$	7,274	$	2,279	$	2,822	$	12,375