Item 1. FINANCIAL STATEMENTS

FactSet Research Systems Inc.

CONSOLIDATED STATEMENTS OF INCOME – Unaudited

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands, except per share data)			2023			2022			2023			2022
Revenues			$	529,811		$	488,751		$	1,549,711		$	1,344,595
Operating expenses
Cost of services			241,689			222,618			709,537			629,162
Selling, general and administrative			115,725			119,881			325,903			309,185
Asset impairments			438			48,998			1,167			62,985
Total operating expenses			357,852			391,497			1,036,607			1,001,332
Operating income			171,959			97,254			513,104			343,263
Other income (expense), net
Interest income			3,083			4,133			8,191			4,900
Interest expense			(16,354)			(16,184)			(49,628)			(20,118)
Other income (expense), net			3,310			77			4,978			(879)
Total other income (expense), net			(9,961)			(11,974)			(36,459)			(16,097)
Income before income taxes			161,998			85,280			476,645			327,166
Provision for income taxes			27,335			10,370			73,591			34,671
Net income			$	134,663		$	74,910		$	403,054		$	292,495
Basic earnings per common share			$	3.52		$	1.97		$	10.54		$	7.76
Diluted earnings per common share			$	3.46		$	1.93		$	10.35		$	7.58
Basic weighted average common shares			38,278			37,934			38,227			37,716
Diluted weighted average common shares			38,912			38,720			38,936			38,607

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – Unaudited

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands)			2023			2022			2023			2022
Net income			$	134,663		$	74,910		$	403,054		$	292,495
Other comprehensive income (loss), net of tax
Net unrealized gain (loss) on cash flow hedges*			(2,044)			810			2,257			5,620
Foreign currency translation adjustment gains (losses)			4,943			(22,096)			16,782			(43,792)
Other comprehensive income (loss)			2,899			(21,286)			19,039			(38,172)
Comprehensive income			$	137,562		$	53,624		$	422,093		$	254,323

*Presented net of a tax benefit of $704 thousand and a tax expense of $1,350 thousand for the three months ended May 31, 2023 and May 31, 2022, respectively. Presented net of a tax expense of $781 thousand and $1,819 thousand for the nine months ended May 31, 2023 and May 31, 2022, respectively.

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

CONSOLIDATED BALANCE SHEETS – Unaudited

(in thousands, except share data)			May 31, 2023			August 31, 2022
ASSETS
Cash and cash equivalents			$	486,627		$	503,273
Investments			32,151			33,219
Accounts receivable, net of reserves of $5,956 at May 31, 2023 and $2,776 at August 31, 2022			237,794			204,102
Prepaid taxes			21,566			38,539
Prepaid expenses and other current assets			66,171			91,214
Total current assets			844,309			870,347
Property, equipment and leasehold improvements, net			81,908			80,843
Goodwill			982,162			965,848
Intangible assets, net			1,859,242			1,895,909
Deferred taxes			12,041			3,153
Lease right-of-use assets, net			156,786			159,458
Other assets			61,462			38,747
TOTAL ASSETS			$	3,997,910		$	4,014,305
LIABILITIES
Accounts payable and accrued expenses			$	110,282		$	108,395
Current lease liabilities			29,600			29,185
Accrued compensation			75,803			114,808
Deferred revenues			147,813			152,039
Dividends payable			37,442			33,860
Total current liabilities			400,940			438,287
Long-term debt			1,674,194			1,982,424
Deferred taxes			6,068			8,800
Deferred revenues, non-current			7,580			7,212
Taxes payable			36,448			34,211
Long-term lease liabilities			200,740			208,622
Other liabilities			3,107			3,341
TOTAL LIABILITIES			$	2,329,077		$	2,682,897
Commitments and contingencies (see Note 12)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued			$	—		$	—
Common stock, $0.01 par value; 150,000,000 shares authorized; 42,009,099 and 41,653,218 shares issued; 38,205,735 and 38,044,756 shares outstanding at May 31, 2023 and August 31, 2022, respectively			420			417
Additional paid-in capital			1,290,596			1,190,350
Treasury stock, at cost: 3,803,364 and 3,608,462 shares at May 31, 2023 and August 31, 2022, respectively			(1,010,081)			(930,715)
Retained earnings			1,477,242			1,179,739
Accumulated other comprehensive loss			(89,344)			(108,383)
TOTAL STOCKHOLDERS’ EQUITY			$	1,668,833		$	1,331,408
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	3,997,910		$	4,014,305

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS – Unaudited

			Nine Months Ended
			May 31,
(in thousands)			2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	403,054		$	292,495
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization			78,681			60,176
Amortization of lease right-of-use assets			29,245			32,936
Stock-based compensation expense			44,365			40,604
Deferred income taxes			(12,716)			(5,488)
Asset impairments			1,167			62,985
Changes in assets and liabilities, net of effects of acquisitions
Accounts receivable, net of reserves			(37,879)			(39,005)
Accounts payable and accrued expenses			5,870			15,292
Accrued compensation			(39,935)			(23,992)
Deferred revenues			(3,861)			4,091
Taxes payable, net of prepaid taxes			19,112			(18,552)
Lease liabilities, net			(34,041)			(35,961)
Other, net			36,841			1,343
Net cash provided by operating activities			489,903			386,924
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, equipment, leasehold improvements and capitalized internal-use software			(61,421)			(35,950)
Acquisition of businesses, net of cash and cash equivalents acquired			—			(1,981,641)
Purchases of investments			(10,889)			(678)
Net cash provided by (used in) investing activities			(72,310)			(2,018,269)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt			—			2,238,355
Repayment of debt			(312,500)			(700,000)
Payments of debt issuance costs			—			(9,736)
Dividend payments			(101,377)			(92,334)
Proceeds from employee stock plans			55,885			74,173
Repurchases of common stock			(67,092)			(18,639)
Other financing activities			(12,273)			(3,263)
Net cash provided by (used in) financing activities			(437,357)			1,488,556
Effect of exchange rate changes on cash and cash equivalents			3,118			(12,110)
Net increase (decrease) in cash and cash equivalents			(16,646)			(154,899)
Cash and cash equivalents at beginning of period			503,273			681,865
Cash and cash equivalents at end of period			$	486,627		$	526,966

The accompanying notes are an integral part of these Consolidated Financial Statements.

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FactSet Research Systems Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY- Unaudited

For the Three Months Ended May 31, 2023

(in thousands, except share data)			Common Stock						Additional Paid-in Capital			Treasury Stock						Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Shares			Par Value			Shares			Amount
Balance as of February 28, 2023			41,949,883			$	420		$	1,261,452		3,636,175			$	(942,496)		$	1,380,021		$	(92,243)		$	1,607,154
Net income																		134,663						134,663
Other comprehensive income (loss)																					2,899			2,899
Common stock issued for employee stock plans			56,055			—			12,279			—			—									12,279
Vesting of restricted stock			3,161			—						1,239			(493)									(493)
Repurchases of common stock												165,950			(67,092)									(67,092)
Stock-based compensation expense									16,865															16,865
Dividends declared																		(37,442)						(37,442)
Balance as of May 31, 2023			42,009,099			$	420		$	1,290,596		3,803,364			$	(1,010,081)		$	1,477,242		$	(89,344)		$	1,668,833
For the Nine Months Ended May 31, 2023
(in thousands, except share data)			Common Stock						Additional Paid-in Capital			Treasury Stock						Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
Shares			Par Value			Shares			Amount
Balance as of August 31, 2022			41,653,218			$	417		$	1,190,350		3,608,462			$	(930,715)		$	1,179,739		$	(108,383)		$	1,331,408
Net income																		403,054						403,054
Other comprehensive income (loss)																					19,039			19,039
Common stock issued for employee stock plans			283,021			2			55,881			410			(166)									55,717
Vesting of restricted stock			72,860			1						28,542			(12,108)									(12,107)
Repurchases of common stock												165,950			(67,092)									(67,092)
Stock-based compensation expense									44,365															44,365
Dividends declared																		(105,551)						(105,551)
Balance as of May 31, 2023			42,009,099			$	420		$	1,290,596		3,803,364			$	(1,010,081)		$	1,477,242		$	(89,344)		$	1,668,833

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For the Three Months Ended May 31, 2022

(in thousands, except share data)			Common Stock						Additional Paid-in Capital			Treasury Stock						Retained Earnings			Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
Shares			Par Value			Shares			Amount
Balance as of February 28, 2022			41,485,261			$	415		$	1,131,166		3,601,395			$	(927,814)		$	1,068,062		$	(55,848)					$	1,215,981
Net income																		74,910									74,910
Other comprehensive income (loss)																					(21,286)						(21,286)
Common stock issued for employee stock plans			87,486			1			17,248			—			—												17,249
Vesting of restricted stock			24			—						10			(4)												(4)
Repurchases of common stock												—			—												—
Stock-based compensation expense									14,667																		14,667
Dividends declared																		(33,795)									(33,795)
Balance as of May 31, 2022			41,572,771			$	416		$	1,163,081		3,601,405			$	(927,818)		$	1,109,177		$	(77,134)					$	1,267,722
For the Nine Months Ended May 31, 2022
(in thousands, except share data)			Common Stock						Additional Paid-in Capital			Treasury Stock						Retained Earnings			Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
Shares			Par Value			Shares			Amount
Balance as of August 31, 2021			41,163,192			$	412		$	1,048,305		3,547,773			$	(905,917)		$	912,515		$	(38,962)					$	1,016,353
Net income																		292,495									292,495
Other comprehensive loss																					(38,172)						(38,172)
Common stock issued for employee stock plans			391,195			4			74,172			260			(128)												74,048
Vesting of restricted stock			18,384			—						7,172			(3,134)												(3,134)
Repurchases of common stock												46,200			(18,639)												(18,639)
Stock-based compensation expense									40,604																		40,604
Dividends declared																		(95,833)									(95,833)
Balance as of May 31, 2022			41,572,771			$	416		$	1,163,081		3,601,405			$	(927,818)		$	1,109,177		$	(77,134)					$	1,267,722

The accompanying notes are an integral part of these Consolidated Financial Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FactSet Research Systems Inc.

May 31, 2023

(Unaudited)

						Page
Note 1			Description of Business			11
Note 2			Summary of Significant Accounting Policies			11
Note 3			Revenue Recognition			13
Note 4			Fair Value Measures			14
Note 5			Derivative Instruments			17
Note 6			Acquisitions			19
Note 7			Goodwill			21
Note 8			Intangible Assets			21
Note 9			Income Taxes			22
Note 10			Leases			23
Note 11			Debt			25
Note 12			Commitments and Contingencies			27
Note 13			Stockholders' Equity			29
Note 14			Earnings Per Share			30
Note 15			Stock-Based Compensation			31
Note 16			Segment Information			33

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1. DESCRIPTION OF BUSINESS

FactSet Research Systems Inc. and its wholly-owned subsidiaries (collectively, "we," "our," "us," the "Company" or "FactSet") is a global financial digital platform and enterprise solutions provider with open and flexible solutions that drive the investment community to see more, think bigger and do its best work. Our strategy is to build the leading open content and analytics platform that delivers a differentiated advantage for our clients’ success.

Fiscal 2023 marks the 45th year our platform has delivered expansive data, sophisticated analytics and flexible technology used by global financial professionals to power their critical investment workflows. As of May 31, 2023, we had 7,770 clients comprised of 187,845 investment professionals, including asset managers, bankers, wealth managers, asset owners, partners, hedge funds, corporate users, and private equity and venture capital professionals. Our on- and off-platform solutions span the investment lifecycle including investment research, portfolio construction and analysis, trade execution, performance measurement, risk management and reporting. Our revenues are primarily derived from subscriptions to our multi-asset class data and solutions powered by our connected content, referred to as our "content refinery." Our products and services include workstations, portfolio analytics and enterprise solutions.

We provide financial data and market intelligence on securities, companies, industries and people to enable our clients to research investment ideas, as well as to analyze, monitor and manage their portfolios. We combine dedicated client service with open and flexible technology offerings, including a configurable desktop and mobile platform, comprehensive data feeds, cloud-based digital solutions and application programming interfaces ("APIs"). Our CUSIP Global Services ("CGS") business supports security master files relied on by the investment industry for critical front, middle and back office functions.

We drive our business based on our detailed understanding of our clients’ workflows, which helps us to solve their most complex challenges. We provide them with an open digital platform, connected and reliable data, next-generation workflow solutions and highly committed service specialists.

We operate our business through three reportable segments ("segments"): the Americas, EMEA and Asia Pacific. Refer to Note 16, Segment Information, for further discussion. For each of our segments, we execute our strategy through three workflow solutions: Research & Advisory; Analytics & Trading; and Content & Technology Solutions ("CTS").

We have a long-term view of our business and are committed to investing for growth and becoming a more efficient organization. As part of this approach, starting September 1, 2023, the beginning of our fiscal 2024 year, we are reorganizing our workflow solutions by firm type to better align our operations with those of our clients:

• Analytics & Trading will become our Institutional Buy-Side organization, focusing on asset managers, asset owners, and hedge fund workflows; and

• Research & Advisory will become:

◦Dealmakers, focusing on banking and sell-side research, corporate, and private equity and venture capital workflows; and

◦Wealth, focusing on wealth management workflows

In addition, during the third quarter of fiscal 2023, we combined our Content and CTS groups to create one Data Solutions organization. This will create end-to-end management of our data, from collection and acquisition, to client delivery. CGS operates as part of our CTS workflow solution which is included within the newly formed Data Solutions organization.

This realignment is not expected to impact our segment reporting for the fiscal 2024 year.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

We conduct business globally and manage our business on a geographic basis. The accompanying unaudited Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for annual financial statements; as such, the information in this Quarterly Report

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on Form 10-Q should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2022. The accompanying unaudited Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries; all intercompany activity and balances have been eliminated.

In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all normal recurring adjustments, transactions or events discretely impacting the interim periods considered necessary to present fairly our results of operations, financial position, cash flows and equity.

Reclassifications

Beginning in the third quarter of fiscal 2023, we separated the components of Interest expense, net to present Interest income and Interest expense separately in the Consolidated Statements of Income for the three and nine months ended May 31, 2023. We conformed the comparative figures for the three and nine months ended May 31, 2022 to the current year’s presentation.

Use of Estimates

The preparation of our Consolidated Financial Statements and related disclosures, in conformity with GAAP, required management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates may have been made in areas that include income taxes, stock-based compensation, goodwill and intangible assets, business combinations, long-lived assets, contingencies and impairment assessments. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.

Concentrations of Credit Risk

Credit risk arises from the potential nonperformance by counterparties to fulfill their financial obligations. Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of our cash and cash equivalents, accounts receivable, investments in mutual funds and derivative instruments. The maximum credit exposure of our cash and cash equivalents, accounts receivable and investments in mutual funds is their carrying values as of the balance sheet dates. The maximum credit exposure related to our derivative instruments is based upon the gross fair values as of the balance sheet dates.

Cash and Cash Equivalents and Investments

We are exposed to credit risk on our cash and cash equivalents and investments in mutual funds in the event of default by the financial institutions with which we transact. We invest our cash and cash equivalents and investments in mutual funds in accordance with our restrictive cash investment practices with the primary objective being the preservation of capital and maintenance of liquidity with a focus on minimizing our exposure to credit risk. We have not experienced any losses in such accounts and we limit our exposure to credit loss by placing our cash and cash equivalents and investments in mutual funds with multiple financial institutions that we believe are high-quality and credit-worthy.

Accounts Receivable

Our accounts receivable credit risk is dependent upon the financial stability of our individual clients. Our receivable reserve was $6.0 million and $2.8 million as of May 31, 2023 and August 31, 2022, respectively. We do not require collateral from our clients, however no single client represented more than 3% of our total subscription revenues in any period presented. Our concentration of credit risk related to our accounts receivable is generally limited due to our large and geographically dispersed client base.

Derivative Instruments

Our use of derivative instruments exposes us to credit risk to the extent counterparties may be unable to meet the terms of their agreements. To mitigate credit risk, we limit counterparties to financial institutions we believe are credit-worthy and use several institutions to reduce concentration risk. We do not expect any losses as a result of default by our counterparties.

Concentrations of Data Providers

We integrate data from various third-party sources into our hosted proprietary data and analytics platform. As certain data sources have a limited number of suppliers, we make every effort to assure that, where reasonable, alternative sources are available. We are not dependent on any individual third-party data supplier in order to meet the needs of our clients, with only two data suppliers each representing more than 10% of our total data costs for the nine months ended May 31, 2023.

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Recently Adopted Accounting Pronouncements

We did not adopt any new standards or updates issued by the Financial Accounting Standards Board ("FASB") during the three and nine months ended May 31, 2023 that had a material impact on our Consolidated Financial Statements.

Accounting Pronouncements Not Yet Adopted

There were no new accounting pronouncements issued or effective as of May 31, 2023 that had, or are expected to have, a material impact on our Consolidated Financial Statements.

3. REVENUE RECOGNITION

We derive most of our revenues by providing client access to our multi-asset class solutions, powered by our content refinery, over the associated contractual term (referred to as the "Hosted Platform"). The Hosted Platform is a subscription-based service that provides client access to various combinations of products and services including workstations, portfolio analytics and enterprise solutions. In addition, through our CGS platform, we provide subscription access to a database of universally recognized identifiers, enabling differentiating characteristics for issuers and their financial instruments (referred to as the "Identifier Platform").

We determined that the majority of each of our Hosted Platform and Identifier Platform services represents a single performance obligation covering a series of distinct products and services that are substantially the same and that have the same pattern of transfer to the client. We also determined the primary nature of the promise to the client is to provide daily access to each of these data and analytics platforms. These platforms provide integrated financial information, analytical applications and industry-leading service for the investment community. Based on the nature of the services and products offered by these platforms, we apply an output time-based measure of progress as the client is simultaneously receiving and consuming the benefits of the platform. We recognize revenue for the majority of these platforms in accordance with the 'as invoiced' practical expedient as the amount of consideration that we have the right to invoice corresponds directly with the value of our performance to date.

Due to our election of the practical expedient, we do not consider payment terms as a financing component within a client contract when, at contract inception, the period between the transfer of the promised services to the client and the payment timing for those services will be one year or less.

Contracts with clients can include certain fulfillment costs, comprised of up-front costs to allow for the delivery of products and services, which are recoverable. Fulfillment costs are recognized as an asset, with the current portion recorded in Prepaid expenses and other current assets and the non-current portion recorded in Other assets in the Consolidated Balance Sheets, based on the term of the license period. The fulfillment costs are amortized consistent with the associated revenues for providing the services.

The majority of client contracts have a duration of one year or the amount we are entitled to receive corresponds directly with the value of performance obligations completed to date, and therefore, we do not disclose the value of the remaining unsatisfied performance obligations. There are no significant judgments that would impact the timing of revenue recognition.

Disaggregated Revenues

We disaggregate revenues from contracts with clients by our segments which consist of the Americas, EMEA and Asia Pacific. We believe these segments are reflective of how we manage our business and the markets in which we serve and best depict the nature, amount, timing and uncertainty of revenues and cash flows related to contracts with clients. Segment revenues reflect sales to our clients based on their respective geographic locations. Refer to Note 16, Segment Information, for further information.

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The following table presents revenues disaggregated by segment:

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands)			2023			2022			2023			2022
Americas			$	337,691		$	309,740		$	992,179		$	850,312
EMEA			137,973			128,326			401,219			357,920
Asia Pacific			54,147			50,685			156,313			136,363
Total Revenues			$	529,811		$	488,751		$	1,549,711		$	1,344,595

4. FAIR VALUE MEASURES

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches, are permissible. We consider the principal or most advantageous market in which we would transact, as well as assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value based on the reliability of inputs. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels. We have categorized our cash equivalents, investments and derivatives within the fair value hierarchy as follows:

Level 1 – applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 – applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 – applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

(a) Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis as of May 31, 2023 and August 31, 2022. We did not have any transfers between levels of fair value

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measurements during the periods presented below. We held no Level 3 assets or liabilities measured at fair value on a recurring basis as of May 31, 2023 and August 31, 2022.

			Fair Value Measurements at May 31, 2023
(in thousands)			Level 1			Level 2			Total
Assets
Corporate money market funds(1)			$	119,929		$	—		$	119,929
Mutual funds(2)			—			32,151			32,151
Derivative instruments(3)			—			8,288			8,288
Total assets measured at fair value			$	119,929		$	40,439		$	160,368
Liabilities
Derivative instruments*(3)*			$	—		$	1,145		$	1,145
Total liabilities measured at fair value			$	—		$	1,145		$	1,145

			Fair Value Measurements at August 31, 2022
(in thousands)			Level 1			Level 2			Total
Assets
Corporate money market funds*(1)*			$	179,330		$	—		$	179,330
Mutual funds*(2)*			—			33,219			33,219
Derivative instruments*(3)*			—			12,412			12,412
Total assets measured at fair value			$	179,330		$	45,631		$	224,961
Liabilities
Derivative instruments*(3)*			$	—		$	8,307		$	8,307
Total liabilities measured at fair value			$	—		$	8,307		$	8,307

(1) Our corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. Our corporate money market funds are included in Cash and cash equivalents within the Consolidated Balance Sheets.

(2) Our mutual funds' fair value is based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of the underlying investments is based on observable inputs. Our mutual funds are included in Investments within the Consolidated Balance Sheets.

(3) Our derivative instruments include our foreign exchange forward contracts and interest rate swap agreements. We utilize the income approach to measure fair value for our foreign exchange forward contracts. The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads. To estimate fair value for our interest rate swap agreements, we utilize a present value of future cash flows, leveraging a model-derived valuation that uses observable inputs such as interest rate yield curves. Refer to Note 5, Derivative Instruments, for more information on our derivative instruments and their classification within the Consolidated Balance Sheets.

(b) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Assets and liabilities that are measured at fair value on a non-recurring basis primarily relate to our tangible fixed assets, lease right-of-use ("ROU") assets, goodwill and intangible assets. The fair values of these non-financial assets and liabilities are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparable information and discounted cash flow projections. These non-financial assets are required to be assessed for impairment whenever events or circumstances indicate their carrying value may not be fully recoverable, and at least annually for goodwill.

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Asset impairments incurred during the three and nine months ended May 31, 2023 were $0.4 million and $1.2 million, respectively, and were $49.0 million and $63.0 million for the three and nine months ended May 31, 2022, respectively. The asset impairments recognized during the three and nine months ended May 31, 2022 included a respective $48.8 million and $62.2 million charge related to our lease ROU assets and property, equipment and leasehold improvements ("PPE") associated with vacating certain leased office space. For those locations we anticipated subleasing, we estimated the fair value of the lease ROU assets as of the cease use date, using a market approach, based on expected future cash flows from sublease income. To complete this assessment we relied on certain assumptions, which included estimates of the rental rate, period of vacancy, incentives and annual rent increases. We fully impaired the lease ROU assets for locations we will not sublease and substantially all the PPE associated with the related vacated leased office space as there were no expected cash flows related to these items. Due to the subjective nature of the unobservable inputs used, the fair value measurement for the asset impairments are classified within Level 3 of the fair value hierarchy.

(c) Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only

We elected not to carry our Long-term debt at fair value. The carrying value of our Long-term debt is net of the related unamortized discount and debt issuance costs.

The fair value of our Senior Notes is estimated based on quoted prices in active markets as of the reporting date, given that the Senior Notes are publicly traded, which are considered Level 1 inputs. The fair value of our 2022 Credit Facilities is estimated based on quoted market prices for similar instruments, adjusted for unobservable inputs to ensure comparability to our investment rating, maturity terms and principal outstanding, which are considered Level 3 inputs. Refer to Note 11, Debt for definitions of these terms and more information on the Senior Notes and 2022 Credit Facilities.

The following table summarizes information on our outstanding debt as of May 31, 2023 and August 31, 2022:

						May 31, 2023						August 31, 2022
(in thousands)			Fair Value Hierarchy			Principal Amount			Estimated Fair Value			Principal Amount			Estimated Fair Value
2027 Notes			Level 1			$	500,000		$	462,345		$	500,000		$	470,525
2032 Notes			Level 1			500,000			428,725			500,000			438,205
2022 Term Facility			Level 3			437,500			439,141			750,000			750,975
2022 Revolving Facility			Level 3			250,000			244,687			250,000			249,075
Total principal amount						$	1,687,500		$	1,574,898		$	2,000,000		$	1,908,780
Total unamortized discounts and debt issuance costs						(13,306)						(17,576)
Total net carrying value of debt						$	1,674,194					$	1,982,424

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5. DERIVATIVE INSTRUMENTS

Cash Flow Hedges

In designing our hedging approach, we consider several factors, including offsetting exposures, the significance of exposures, the forecasting of risk and the potential effectiveness of the hedge to reduce the volatility of our earnings and cash flows. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, the degree to which the underlying exposure is committed to, and the availability, effectiveness and cost of derivative instruments. Derivative instruments are only utilized for risk management purposes and are not used for speculative or trading purposes. We limit counterparties to financial institutions we believe are credit-worthy. Refer to Note 2, Summary of Significant Accounting Policies - Concentrations of Credit Risk, for further discussion on counterparty credit risk.

We leverage foreign currency forward contracts and interest rate swaps to mitigate certain operational exposures from the impact of changes in foreign currency exchange rates and to manage our interest rate exposure. We have designated and accounted for these derivatives as cash flow hedges with the unrealized gains or losses recorded in Accumulated Other Comprehensive Loss ("AOCL"), net of tax, in the Consolidated Balance Sheets. Realized gains or losses resulting from settlement of our forward contracts and swap agreements are subsequently reclassified into Selling, general and administrative ("SG&A") and Interest expense, respectively, in the Consolidated Statements of Income when the hedges are settled.

Foreign Currency Forward Contracts

As we conduct business outside the U.S. in several currencies, we are exposed to movements in foreign currency exchange rates. As of May 31, 2023, we maintained a series of foreign currency forward contracts to hedge a portion of our exposures related to our primary currencies of the British Pound Sterling, Indian Rupee, Euro and Philippine Peso. To mitigate our currency exposure, we entered into these contracts to hedge between 25% to 75% of our projected operating expenses, denominated in our primary foreign currencies, over their respective hedge periods, ranging from the fourth quarter of fiscal 2023 through the third quarter of fiscal 2024.

The following table summarizes the gross notional value of foreign currency forward contracts to purchase British Pound Sterling, Euros, Indian Rupees and Philippine Pesos with U.S. dollars as of May 31, 2023 and August 31, 2022:

			May 31, 2023						August 31, 2022
(in thousands)			Local Currency			USD			Local Currency			USD
British Pound Sterling			£	45,600		$	55,367		£	44,200		$	55,567
Euro			€	38,700		41,612			€	37,500		40,679
Indian Rupee			Rs	3,219,297		38,700			Rs	2,667,928		33,600
Philippine Peso			₱	1,857,009		33,000			₱	1,462,060		27,000
Total						$	168,679					$	156,846

There was no discontinuance of our foreign currency cash flow hedges during the nine months ended May 31, 2023 or May 31, 2022, and as such, no corresponding gains or losses related to changes in the value of our contracts were reclassified into earnings prior to settlement. Refer to Foreign Currency Transaction Risk in Item 3. Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q for further discussion of our exposure to foreign exchange rate fluctuations.

Interest Rate Swap Agreements

2022 Swap Agreement

On March 1, 2022, we entered into an interest rate swap agreement ("2022 Swap Agreement") with a notional amount of $800.0 million to hedge a portion of our outstanding floating Secured Overnight Financing Rate ("SOFR") rate debt with a fixed interest rate of 1.162%. The notional amount of the 2022 Swap Agreement declines by $100.0 million on a quarterly basis beginning May 31, 2022 and is maturing on February 28, 2024. Effective December 30, 2022, we partially novated our 2022 Swap Agreement to equally apportion the then outstanding notional amount of the interest rate swap between two counterparties. No other terms of the 2022 Swap Agreement were amended, terminated, or otherwise modified. As of May 31, 2023, the notional amount of the 2022 Swap Agreement was $300.0 million.

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Refer to Note 11, Debt, for further discussion of our outstanding floating SOFR rate debt. Refer to Interest Rate Risk in Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk of this Quarterly Report on Form 10-Q for further discussion of our exposure to interest rate risk on our long-term debt outstanding.

2020 Swap Agreement

On March 5, 2020, we entered into an interest rate swap agreement ("2020 Swap Agreement") with a notional amount of $287.5 million. The 2020 Swap Agreement hedged a portion of our then outstanding floating LIBOR rate debt with a fixed interest rate of 0.7995% to mitigate our interest rate exposure. On March 1, 2022, we terminated the 2020 Swap Agreement, which resulted in a one-time benefit of $3.5 million recognized in Interest expense in the Consolidated Statements of Income during the third quarter of fiscal 2022, based on its fair market value.

Gross Notional Value and Fair Value of Derivative Instruments

The following is a summary of the gross notional values of the derivative instruments:

(in thousands)			Gross Notional Value
May 31, 2023			August 31, 2022
Foreign currency forward contracts			$	168,679		$	156,846
Interest rate swap agreement			300,000			600,000
Total cash flow hedges			$	468,679		$	756,846

The following is a summary of the fair values of our derivative instruments:

			Fair Value of Derivative Instruments
(in thousands)			Derivative Assets									Derivative Liabilities
Derivatives designated as hedging instruments			Balance Sheet Classification			May 31, 2023			August 31, 2022			Balance Sheet Classification			May 31, 2023			August 31, 2022
Foreign currency forward contracts			Prepaid expenses and other current assets			$	2,340		$	—		Accounts payable and accrued expenses			$	1,145		$	8,307
Interest rate swap agreement			Prepaid expenses and other current assets			5,948			10,621			Accounts payable and accrued expenses			—			—
Other assets			—			1,791			Other liabilities			—			—
Total cash flow hedges						$	8,288		$	12,412					$	1,145		$	8,307

All derivatives were designated as hedging instruments as of May 31, 2023 and August 31, 2022.

Derivative Recognition

The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the three months ended May 31, 2023 and May 31, 2022:

			Gain (Loss) Recognized in AOCL on Derivatives						Location of Gain (Loss) Reclassified from AOCL into Income			Gain (Loss) Reclassified from AOCL into Income
(in thousands)			May 31,						May 31,
Derivatives in Cash Flow Hedging Relationships			2023			2022			2023			2022
Foreign currency forward contracts			$	919		$	(4,114)		SG&A			$	(230)		$	(2,635)
Interest rate swap agreement			(172)			5,629			Interest expense			3,725			1,990
Total cash flow hedges			$	747		$	1,515					$	3,495		$	(645)

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The following table provides the pre-tax effect of derivative instruments in cash flow hedging relationships for the nine months ended May 31, 2023 and May 31, 2022:
			Gain (Loss) Reclassified in AOCL on Derivatives						Location of Gain (Loss) Reclassified from AOCL into Income			Gain (Loss) Reclassified from AOCL into Income
(in thousands)			May 31,						May 31,
Derivatives in Cash Flow Hedging Relationships			2023			2022			2023			2022
Foreign currency forward contracts			$	4,027		$	(7,690)		SG&A			$	(5,474)		$	(4,098)
Interest rate swap agreement			4,104			12,007			Interest expense			10,567			976
Total cash flow hedges			$	8,131		$	4,317					$	5,093		$	(3,122)

As of May 31, 2023, we estimate that net pre-tax derivative gains of $7.1 million included in AOCL will be reclassified into earnings within the next 12 months. As of May 31, 2023, our cash flow hedges were highly effective with no amount of ineffectiveness recorded in the Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Offsetting of Derivative Instruments

We enter into master netting arrangements designed to permit net settlement of derivative transactions among the respective counterparties, settled on the same date and in the same currency. As of May 31, 2023 and August 31, 2022, there were no material amounts recorded net on the Consolidated Balance Sheets.

6. ACQUISITIONS

During fiscal 2022, we completed acquisitions of CUSIP Global Services ("CGS") and Cobalt Software, Inc. ("Cobalt").

CUSIP Global Services

On March 1, 2022, we completed the acquisition of CGS for a cash purchase price of $1.932 billion, inclusive of working capital adjustments. CGS manages a database of 60 different data elements uniquely identifying more than 50 million global financial instruments. It is the foundation for security master files relied on by critical front, middle and back-office functions. CGS, operating on behalf of the American Bankers Association ("ABA"), is the provider of Committee on Uniform Security Identification Procedures ("CUSIP") and CUSIP International Number System ("CINS") identifiers globally and also acts as the official numbering agency for International Securities Identification Number ("ISIN") identifiers in the United States and as a substitute number agency for more than 35 other countries. We believe that the CGS acquisition will significantly expand our critical role in the global capital markets. The CGS purchase price was in excess of the fair value of net assets acquired, resulting in the recognition of goodwill. We finalized the purchase accounting for the CGS acquisition during the fourth quarter of fiscal 2022 and did not record any material changes to the preliminary purchase price allocation.

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The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:

			Acquisition Date Fair Value			Acquisition Date Useful Life			Amortization Method
			(in thousands)			(in years)
Current assets*(1)*			$	29,728
Amortizable intangible assets
ABA business process			1,583,000			36 years			Straight-line
Client relationships			164,000			26 years			Straight-line
Acquired databases			46,000			15 years			Straight-line
Goodwill			214,970
Current liabilities*(2)*			(104,691)
Deferred revenues, long-term			(1,481)
Total purchase price			$	1,931,526

(1) Includes an accounts receivable balance of $29.5 million.

(2) Includes a deferred revenues balance of $99.4 million. The CGS acquisition was accounted for in accordance with our adoption of ASU No. 2021-08; as such, the deferred revenues did not include a fair value adjustment. Refer to Note 2, Significant Accounting Policies in the Notes included in Item 8. of our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 for more information on ASU No. 2021-08.

Goodwill totaling $215.0 million represents the excess of the CGS purchase price over the fair value of net assets acquired and considers future economic benefits that we expect to achieve as a result of the acquisition. The goodwill is included in the Americas segment and is deductible for income tax purposes. The majority of the net assets acquired relate to an ABA business process intangible which is a renewable license agreement with the ABA to manage the issuance, maintenance and access to the CUSIP numbering system and related database of CUSIP identifiers. This intangible asset's valuation and associated useful life considers the nature of the business relationship, multi-year term of the current agreement and the likelihood of long-term renewals. The useful life assigned to the Client relationships intangible asset considers the strong historical client retention and client renewals as a basis for expected future retention. The useful life assigned to Acquired databases considers the historical period of data collection and the limited changes to the data on an annual basis.

The results of CGS's operations have been included in our Consolidated Financial Statements, within the Americas, EMEA and Asia Pacific segments, beginning with the closing of the acquisition on March 1, 2022. CGS operates as part of our CTS workflow solution which is included within the newly formed Data Solutions organization. Pro forma information has not been presented because the effect of the CGS acquisition was not material to our Consolidated Financial Statements.

Cobalt Software, Inc.

On October 12, 2021, we acquired all of the outstanding shares of Cobalt for a purchase price of $50.0 million, net of cash acquired, and inclusive of working capital adjustments. Cobalt was a leading portfolio monitoring solutions provider for the private capital industry. This acquisition aligned with our strategy to scale our data and workflow solutions through targeted investments as part of our multi-year investment plan and expands our private markets offering. The Cobalt purchase price was in excess of the fair value of net assets acquired, resulting in the recognition of goodwill. We finalized the purchase accounting for the Cobalt acquisition during the fourth quarter of fiscal 2022 and did not record any material changes to the preliminary purchase price allocation.

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The acquisition date fair values of major classes of assets acquired and liabilities assumed are as follows:

			Acquisition Date Fair Value			Acquisition Date Useful Life			Amortization Method
			(in thousands)			(in years)
Current assets			$	540
Amortizable intangible assets
Software technology			7,750			5 years			Straight-line
Client relationships			4,800			11 years			Straight-line
Goodwill			41,338
Other assets			34
Current liabilities			(4,437)
Other liabilities			(7)
Total purchase price			$	50,018

Goodwill totaling $41.3 million represents the excess of the Cobalt purchase price over the fair value of net assets acquired and is included in the Americas and EMEA segments. Goodwill generated from the Cobalt acquisition is not deductible for income tax purposes. The useful life assigned to the Client relationships intangible asset considers the historical client retention as a basis for expected future retention. The useful life assigned to Software technology considers our historical experience and anticipated technological changes.

The results of Cobalt's operations have been included in our Consolidated Financial Statements, within the Americas and EMEA segments, beginning with its acquisition on October 12, 2021. Pro forma information has not been presented because the effect of the Cobalt acquisition was not material to our Consolidated Financial Statements.

7. GOODWILL

Changes in the carrying amount of goodwill by segment for the nine months ended May 31, 2023 are as follows:

(in thousands)			Americas			EMEA			Asia Pacific			Total
Balance at August 31, 2022			$	686,412		$	277,087		$	2,349		$	965,848
Foreign currency translations			—			16,321			(7)			16,314
Balance at May 31, 2023			$	686,412		$	293,408		$	2,342		$	982,162

Goodwill is not amortized as it is estimated to have an indefinite life. At least annually, we test goodwill for impairment at the reporting unit level, which is consistent with our segments, and if impaired, it is written down to fair value. We performed our annual goodwill impairment test during the fourth quarter of fiscal 2022 utilizing a qualitative analysis, consistent with the timing and methodology of previous years. We concluded it was more likely than not that the fair value of each of our segments was not less than its respective carrying value and no impairment charge was required.

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8. INTANGIBLE ASSETS

We amortize intangible assets on a straight line basis over their estimated useful lives. The estimated useful life, gross carrying amounts and accumulated amortization totals related to our identifiable intangible assets are as follows:

						May 31, 2023									August 31, 2022
(in thousands, except useful lives)			Estimated Useful Life (years)			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
ABA business process			36			$	1,583,000		$	54,965		$	1,528,035		$	1,583,000		$	21,986		$	1,561,014
Client relationships			11 to 26			264,540			65,392			199,148			263,163			55,405			207,758
Software technology			2 to 9			124,626			105,220			19,406			122,363			96,567			25,796
Developed technology			3 to 5			107,215			45,804			61,411			80,956			33,676			47,280
Acquired databases			15			46,000			3,833			42,167			46,000			1,533			44,467
Data content			7 to 20			34,421			27,664			6,757			32,305			24,973			7,332
Trade names			15			6,785			4,467			2,318			6,693			4,431			2,262
Total						$	2,166,587		$	307,345		$	1,859,242		$	2,134,480		$	238,571		$	1,895,909

The weighted average useful life of our intangible assets at May 31, 2023 was 32.7 years. As described in Note 6, Acquisitions, we acquired several intangible assets as part of the CGS acquisition. The weighted average useful life of our intangible assets at May 31, 2023, excluding those acquired from CGS, was 9.0 years. We assess intangible assets for indicators of impairment on a quarterly basis, including an evaluation of our useful lives to determine if events and circumstances warrant a revision to the remaining period of amortization. If indicators of impairment are present, amortizable intangible assets are tested for impairment by comparing the carrying value to undiscounted cash flows and, if impaired, written down to fair value based on discounted cash flows. We have not identified a material impairment nor a material change to the estimated remaining useful lives of our intangible assets for the nine months ended May 31, 2023 and May 31, 2022. The intangible assets have no assigned residual values.

Amortization expense recorded for intangible assets for the three months ended May 31, 2023 and May 31, 2022 was $22.0 million and $21.5 million, respectively. Amortization expense for intangible assets for the nine months ended May 31, 2023 and May 31, 2022 was $65.4 million and $40.6 million, respectively.

As of May 31, 2023, estimated intangible asset amortization expense for each of the next five years and thereafter are as follows:

(in thousands)			Estimated Amortization Expense
Fiscal Years Ended August 31,
2023 (remaining three months)			$	22,197
2024			88,459
2025			81,937
2026			75,528
2027			63,930
Thereafter			1,527,191
Total			$	1,859,242

9. INCOME TAXES

Income tax expense is based on taxable income determined in accordance with current enacted laws and tax rates. Deferred income taxes are recorded for the temporary differences between the financial statement and the tax bases of assets and liabilities using currently enacted tax rates.

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Income Tax Provision and Effective Tax Rate

The provision for income taxes and effective tax rate are as follows:

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands)			2023			2022			2023			2022
Income before income taxes			$	161,998		$	85,280		$	476,645		$	327,166
Provision for income taxes			$	27,335		$	10,370		$	73,591		$	34,671
Effective tax rate			16.9		%	12.2		%	15.4		%	10.6		%

We are subject to taxation in the United States and various foreign jurisdictions in which we conduct our business. Our provision for income taxes for interim periods is calculated by applying an estimate of our annual effective tax rate to our quarter and year-to-date results, adjusted for discrete items recorded in the period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pretax income (or loss) for the year, projections of the proportion of income (or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences and the likelihood of recovering deferred tax assets, then adjusted for any discrete items. On a quarterly basis, we update the estimate of our annual effective tax rate as new events occur, assumptions change, or additional information is obtained.

Our effective tax rate for all periods presented above was lower than the applicable U.S. corporate income tax rate mainly due to research and development ("R&D") tax credits, a foreign derived intangible income ("FDII") deduction and a net tax benefit from discrete items, partially offset by our net state taxes.

Our effective tax rate during the three and nine months ended May 31, 2023 was higher than the rate during the respective prior year periods due mainly to a decrease in the impact of tax attributes on the effective tax rate as a result of an increase in income, a lower net tax benefit from discrete items driven mainly by a reduction in the exercise of stock options, as well as an increase in the U.K.'s enacted tax rates.

Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act ("IRA") was signed into law. The IRA contains several revisions to the Internal Revenue Code effective for taxable years beginning after December 31, 2022, including a 15% minimum income tax on certain large corporations. We do not expect this revision to have a material impact on our Consolidated Financial Statements.

The IRA also includes a 1% excise tax on corporate stock repurchases made by publicly traded U.S. corporations after December 31, 2022. For the three and nine months ended May 31, 2023, the excise tax on our stock repurchases was not material.

10. LEASES

Our lease portfolio is primarily related to our office space, under various operating lease agreements. We review new arrangements at inception to evaluate whether we obtain substantially all the economic benefits of and have the right to control the use of an asset. Our lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement (which includes fixed lease payments and certain qualifying index-based variable payments) over the reasonably certain lease term, leveraging an estimated IBR. Certain adjustments to calculate our lease ROU assets may be required due to prepayments, lease incentives received and initial direct costs incurred. We account for lease and non-lease components as a single lease component, which we recognize over the expected term on a straight-line expense basis in occupancy costs (a component of SG&A expense) in our Consolidated Statements of Income.

As of May 31, 2023, we recognized $156.8 million of Lease ROU assets, net and $230.3 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets. Such leases have a remaining lease term ranging from less than one year to just under 13 years and did not include any renewal or termination options that were not yet reasonably certain to be exercised.

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The following table reconciles our future undiscounted cash flows related to our operating leases and the reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of May 31, 2023:

(in thousands)			Minimum Lease Payments
Fiscal Years Ended August 31,
2023 (remaining three months)			$	9,991
2024			38,343
2025			36,303
2026			35,489
2027			34,233
Thereafter			119,137
Total			$	273,496
Less: Imputed interest			43,156
Present value			$	230,340

The following table includes the components of our occupancy costs in our Consolidated Statements of Income:

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands)			2023			2022			2023			2022
Operating lease cost*(1)*			$	8,170		$	9,767		$	24,403		$	30,466
Variable lease cost*(2)*			$	4,645		$	3,185		$	12,699		$	8,933

(1) Operating lease costs include costs associated with fixed lease payments and index-based variable payments that qualified for lease accounting under ASC 842, Leases and complied with the practical expedients and exceptions elected by us.

(2) Variable lease costs include costs that were not fixed at the lease commencement date and are not dependent on an index or rate. These costs were not included in the measurement of lease liabilities and primarily include variable non-lease costs, such as utilities, real estate taxes, insurance and maintenance, as well as lease costs for those leases that qualified for the short-term lease exception.

The following table summarizes our lease term and discount rate assumptions related to the operating leases recorded on the Consolidated Balance Sheets:

			As of May 31, 2023			As of August 31, 2022
Weighted average remaining lease term (in years)			8.0			8.6
Weighted average discount rate (IBR)			4.5		%	4.4		%

The following table summarizes supplemental cash flow information related to our operating leases:

			Nine Months Ended
			May 31,
(in thousands)			2023			2022
Cash paid for amounts included in the measurement of lease liabilities			$	29,245		$	32,936
Lease ROU assets obtained in exchange for lease liabilities*(1)*			$	13,872		$	9,348
Reductions to ROU assets resulting from reductions to lease liabilities*(2)*			$	—		$	(11,661)

*(1)*Primarily includes new lease arrangements entered into during the period and contract modifications that extend our lease terms and/or provide additional rights.

*(2)*Primarily relates to lease term reassessments based on contractual options to early terminate, resulting in a reduction to the lease liability and the corresponding lease ROU asset.

During the three and nine months ended May 31, 2022, we incurred an impairment charge of $24.2 million and $31.5 million, respectively, related to our lease ROU assets associated with vacating certain leased office space. Refer to Note 4, Fair Value Measures for more information on the lease ROU assets impairment methodology. The were no similar lease ROU asset impairments recorded during the three and nine months ended May 31, 2023.

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11. DEBT

We elected not to carry our Long-term debt at fair value. The carrying value of our debt is net of related unamortized discounts and debt issuance costs. Our total debt obligations as of May 31, 2023 and August 31, 2022 consisted of the following:

(in thousands)			Issuance Date			Contractual Maturity Date			May 31, 2023			August 31, 2022
2022 Credit Agreement
2022 Term Facility			3/1/2022			3/1/2025			437,500			750,000
2022 Revolving Facility			3/1/2022			3/1/2027			250,000			250,000
Senior Notes
2027 Notes			3/1/2022			3/1/2027			500,000			500,000
2032 Notes			3/1/2022			3/1/2032			500,000			500,000
Total unamortized discounts and debt issuance costs									(13,306)			(17,576)
Total Long-term debt									$	1,674,194		$	1,982,424

As of May 31, 2023, annual maturities on our total debt obligations, based on contract maturity, were as follows:

(in thousands)			Maturities
Fiscal Years Ended August 31,
2023 (remaining three months)			$	—
2024			—
2025			437,500
2026			—
2027			750,000
Thereafter			500,000
Total			$	1,687,500

2022 Credit Agreement

On March 1, 2022, we entered into a credit agreement (the "2022 Credit Agreement") and borrowed an aggregate principal amount of $1.0 billion under its senior unsecured term loan credit facility (the "2022 Term Facility") and $250.0 million of the available $500.0 million under its senior unsecured revolving credit facility (the "2022 Revolving Facility" and, together with the 2022 Term Facility, the “2022 Credit Facilities”). The 2022 Term Facility matures on March 1, 2025, and the 2022 Revolving Facility matures on March 1, 2027. The 2022 Revolving Facility allows for the availability of up to $100.0 million in the form of letters of credit and up to $50.0 million in the form of swingline loans. We may seek additional commitments under the 2022 Revolving Facility from lenders or other financial institutions up to an aggregate principal amount of $750.0 million.

We pay a commitment fee on the daily unused amount of the 2022 Revolving Facility using a pricing grid based on our senior unsecured non-credit enhanced long-term debt rating and our total leverage ratio. The commitment fee remained consistent at 0.125% from the borrowing date through May 31, 2023.

We used these borrowings, along with the net proceeds from the issuance of the Senior Notes (as defined below) and cash on hand, to finance the consideration for the CGS acquisition, to repay borrowings under the 2019 Credit Agreement (as defined below) and to pay related transaction fees, costs and expenses.

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During fiscal 2022, we incurred approximately $9.5 million in debt issuance costs related to the 2022 Credit Facilities. Debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the debt liability. Debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income on a straight-line basis over the contractual term of the debt, which approximates the effective interest method.

We may voluntarily prepay loans under the 2022 Credit Facilities at any time without premium or penalty. During the three and nine months ended May 31, 2023, we repaid $62.5 million and $312.5 million, respectively, under the 2022 Term Facility, inclusive of voluntary prepayments of $50.0 million and $275.0 million, respectively. Since loan inception on March 1, 2022, we have repaid $562.5 million under the 2022 Term Facility, inclusive of voluntary prepayments of $512.5 million.

As of May 31, 2023, the outstanding borrowings under the 2022 Credit Facilities bore interest at a rate equal to the applicable one-month Term SOFR rate plus a 1.1% spread (comprised of a 1.0% interest rate margin based on a debt leverage pricing grid plus a 0.1% credit spread adjustment). The spread remained consistent from the borrowing date through May 31, 2023. Interest on the 2022 Credit Facilities is currently payable on the last business day of each month, in arrears.

The 2022 Credit Agreement contains usual and customary event of default provisions for facilities of this type, which are subject to usual and customary grace periods and materiality thresholds. If an event of default occurs under the 2022 Credit Agreement, the lenders may, among other things, terminate their commitments and declare all outstanding borrowings immediately due and payable.

The 2022 Credit Agreement contains usual and customary affirmative and negative covenants for facilities of this type, including a financial covenant requiring maintenance of a total leverage ratio of no greater than 4.00 to 1.00 as of May 31, 2023. We were in compliance with all covenants and requirements of the 2022 Credit Agreement as of May 31, 2023.

Swap Agreements

On March 5, 2020, we entered into the 2020 Swap Agreement to hedge a portion of our then outstanding floating LIBOR rate debt with a fixed interest rate of 0.7995%. On March 1, 2022, we terminated the 2020 Swap Agreement and concurrently entered into the 2022 Swap Agreement to hedge a portion of our outstanding floating SOFR rate debt with a fixed interest rate of 1.162%. Effective December 30, 2022, we apportioned the then outstanding notional amount of the 2022 Swap Agreement between two counterparties. Refer to Note 5, Derivative Instruments for further discussion of the 2020 Swap Agreement and 2022 Swap Agreement.

Senior Notes

On March 1, 2022 we completed a public offering of $500.0 million aggregate principal amount of 2.900% Senior Notes due March 1, 2027 (the “2027 Notes”) and $500.0 million aggregate principal amount of 3.450% Senior Notes due March 1, 2032 (the “2032 Notes” and, together with the 2027 Notes, the “Senior Notes”). The Senior Notes were issued pursuant to an indenture, dated as of March 1, 2022, by and between us and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"), as supplemented by the supplemental indenture, dated as of March 1, 2022, between us and the Trustee (the "Supplemental Indenture").

The Senior Notes were issued at an aggregate discount of $2.8 million during fiscal 2022 and we incurred approximately $9.1 million in debt issuance costs. Debt discounts and debt issuance costs are presented in the Consolidated Balance Sheets as a net direct deduction from the carrying amount of the debt liability. The debt discounts and debt issuance costs are amortized to Interest expense in the Consolidated Statements of Income over the contractual term of the debt, leveraging the effective interest method.

Interest on the Senior Notes is payable semiannually in arrears on March 1 and September 1 of each year, with the first payment made on September 1, 2022.

We may redeem the Senior Notes, in whole or in part, at any time at specified redemption prices, plus any accrued and unpaid interest. Upon the occurrence of a change of control triggering event (as defined in the Supplemental Indenture), we must offer to repurchase the Senior Notes at 101% of their principal amount, plus any accrued and unpaid interest.

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2019 Credit Agreement

On March 29, 2019, we entered into a credit agreement with PNC Bank, National Association (the "2019 Credit Agreement") and borrowed $575.0 million of the available $750.0 million provided by the revolving credit facility thereunder (the "2019 Revolving Credit Facility"). Borrowings under the 2019 Revolving Credit Facility bore interest on the outstanding principal amount at a rate equal to the daily LIBOR plus a spread using a debt leverage pricing grid. Interest on the amounts outstanding under the 2019 Revolving Credit Facility was payable quarterly, in arrears, and on the maturity date. We incurred approximately $0.9 million in debt issuance costs related to the 2019 Credit Agreement.

On March 1, 2022, we terminated the 2019 Credit Agreement and amortized the remaining related $0.4 million of capitalized debt issuance costs into Interest expense in the Consolidated Statements of Income.

Interest Expense

On March 1, 2022, the 2019 Revolving Credit Facility and 2020 Swap Agreement were both terminated and concurrently replaced with the 2022 Credit Facilities, Senior Notes and 2022 Swap Agreement.

The following table presents the interest expense on our outstanding debt which is included in Interest expense in our Consolidated Statements of Income:

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands)			2023			2022			2023			2022
Interest expense on outstanding debt*(1)*			$	16,345		$	15,755		$	49,601		$	19,581

(1) Interest expense on our outstanding debt includes the related amortization of debt issuance costs and debt discounts, net of the effects of the related interest rate swap agreements.

Including the related amortization of debt issuance costs and debt discounts, net of the effects of the related interest rate swap agreement, the year-to-date weighted average interest rate on amounts outstanding under our outstanding debt was 3.3% and 2.0% as of May 31, 2023 and August 31, 2022, respectively. Refer to Note 5, Derivative Instruments for further discussion of the 2020 Swap Agreement and 2022 Swap Agreement.

12. COMMITMENTS AND CONTINGENCIES

Commitments represent obligations, such as those for future purchases of goods or services, that are not yet recorded on the balance sheet as liabilities. We record liabilities for commitments when incurred (i.e., when the goods or services are received).

We accrue non-income-tax liabilities for contingencies when we believe that a loss is probable, and the amount can be reasonably estimated. Judgment is required to determine both the probability and the estimated amount of loss. If the reasonable estimate of a probable loss is a range, we record the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. We review accruals on a quarterly basis and adjust, as necessary, to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other current information. Contingent gains are recognized only when realized.

Uncertain income tax positions are accounted for in accordance with applicable accounting guidance, refer to Note 9, Income Taxes in the Notes included in Item 8 of our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 for further details.

Purchase Commitments with Suppliers and Vendors

Purchase obligations represent our legally-binding agreements to purchase fixed or minimum quantities at determinable prices. Our total purchase obligations as of August 31, 2022 primarily related to hosting services and acquisition of data, and, to a lesser extent, third-party software providers. Hosting services support our technology investments related to our hybrid cloud strategy, the majority of which rely on third-party hosting providers. Data is an integral component of the value we provide to our clients and our commitments to third-party software providers mainly include internal-use software licenses.

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As of August 31, 2022, we had total purchase obligations with suppliers of $373.9 million. During the second quarter of fiscal 2023, we amended a contract with a data supplier that resulted in an incremental commitment to purchase data of approximately $26.0 million.

We also have contractual obligations related to our lease liabilities and outstanding debt. Refer to Note 10, Leases and Note 11, Debt for information regarding lease commitments and outstanding debt obligations, respectively.

Capital Commitments

As of May 31, 2023 and August 31, 2022, we had outstanding capital commitments related to an investment of $0.8 million and $1.1 million, respectively.

Letters of Credit

From time to time, we are required to obtain letters of credit in the ordinary course of business. As of both May 31, 2023 and August 31, 2022, we had $0.5 million of standby letters of credit outstanding. No liabilities related to these arrangements are reflected in the Company's Consolidated Balance Sheets.

Contingencies

Legal Matters

We are engaged in various legal proceedings, claims and litigation that have arisen in the ordinary course of business. The outcome of all the matters against us are subject to future resolution, including the uncertainties of litigation. Based on information available at May 31, 2023, our management believes that the ultimate outcome of these unresolved matters against us, individually or in the aggregate, will not have a material adverse effect on our consolidated financial position, our results of operations or our cash flows.

Income Taxes

As a multinational company operating in many states and countries, we are routinely audited by various taxing authorities and have reserved for potential adjustments to our provision for income taxes that may result from examinations by, or any negotiated settlements with, these tax authorities. We believe that the final outcome of these examinations or settlements will not have a material effect on our results of operations nor our cash flows. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state and foreign income tax liabilities are less than the ultimate assessment, additional expense would result.

Sales Tax Matters

On August 8, 2019, we received a Notice of Intent to Assess (the "First Notice") additional sales taxes, interest and underpayment penalties (the “Sales Taxes”) from the Commonwealth of Massachusetts Department of Revenue (the "Commonwealth") relating to the tax periods from January 1, 2006 through December 31, 2013. On July 20, 2021, we received a Notice of Intent to Assess (the "Second Notice") additional Sales Taxes from the Commonwealth relating to the tax periods from January 1, 2014 through December 31, 2018. On December 29, 2022, we received a Notice of Intent to Assess (the “Third Notice"; cumulatively with the First and Second Notices, the “Notices”) additional Sales Taxes from the Commonwealth relating to the tax periods from January 1, 2019 through June 30, 2021. We filed an appeal with respect to the Notices to contest all Sales Taxes that may be assessed. On May 24, 2023, we received a Letter of Determination from the Commonwealth upholding the Notices, followed by a Notice of Assessment for all the periods covered by the Notices. We continue to contest these assessments and believe that we will ultimately prevail; however, if we do not prevail, the amount of these assessments could have a material impact on our consolidated financial position, results of operations and cash flows.

We have concluded that a payment to the Commonwealth is probable. We have recorded an accrual which is not material to our consolidated financial statements. While we believe that the assumptions and estimates used to determine the accrual are reasonable, future developments could result in adjustments being made to this accrual.

Indemnifications

As permitted or required under Delaware law and to the maximum extent allowable under that law, we have certain obligations to indemnify each of our current and former officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. These indemnification obligations are valid as long as the director or officer

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acted in good faith and in a manner the person reasonably believed to be in, or not opposed to, the best interests of FactSet, and with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. It is not possible to determine the maximum potential amount for claims made under the indemnification obligations due to the unique set of facts and circumstances likely to be involved in each particular claim and indemnification provision; however, we have purchased a director and officer insurance policy that mitigates our exposure and may enable us to recover a portion of any future amounts paid. We do not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under such indemnification obligations.

13. STOCKHOLDERS' EQUITY

Share Repurchases

			Three Months Ended						Nine months ended
			May 31,						May 31,
(in thousands, except share data)			2023			2022			2023			2022
Repurchases of common stock under the share repurchase program*(1)*			165,950			—			165,950			46,200
Total cost of shares repurchased*(1)*			$	67,092		$	—		$	67,092		$	18,639

(1) Amounts do not include 1,239 shares and 10 shares surrendered by grantees to satisfy withholding tax obligations due upon the vesting or exercise of stock-based awards valued at $0.5 million and $4.0 thousand during the three months ended May 31, 2023 and May 31, 2022, respectively. Amounts do not include 28,952 shares and 7,432 shares surrendered by grantees to satisfy withholding tax obligations due upon the vesting or exercise of stock-based awards valued at $12.3 million and $3.3 million during the nine months ended May 31, 2023 and May 31, 2022, respectively.

We may repurchase shares of our common stock under our share repurchase program from time-to-time in the open market or via privately negotiated transactions, subject to market conditions. We had suspended our share repurchase program beginning in the second quarter of fiscal 2022, with the exception of potential minor repurchases to offset dilution from grants of equity awards or repurchases to satisfy withholding tax obligations due upon the vesting of stock-based awards, to prioritize the repayment of debt under the 2022 Credit Facilities. We resumed our share repurchase program in the third quarter of fiscal 2023.

There is no defined number of shares to be repurchased over a specified timeframe through the life of our share repurchase program. As of May 31, 2023, a total of $114.2 million remained authorized for future share repurchases through August 31, 2023. On June 20, 2023, our Board of Directors authorized up to $300 million for share repurchases on or after September 1, 2023.

Equity-based Awards

Refer to Note 15, Stock-Based Compensation for more information on equity awards issued during the three and nine months ended May 31, 2023 and May 31, 2022.

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Dividends

Our Board of Directors declared dividends during the nine months ended May 31, 2023 and May 31, 2022 as follows:

Year Ended			Dividends per Share of Common Stock			Record Date			Total $ Amount (in thousands)			Payment Date
Fiscal 2023
First Quarter			$	0.89		November 30, 2022			$	34,010		December 15, 2022
Second Quarter			$	0.89		February 28, 2023			$	34,099		March 16, 2023
Third Quarter			$	0.98		May 31, 2023			$	37,442		June 15, 2023
Fiscal 2022
First Quarter			$	0.82		November 30, 2021			$	30,973		December 16, 2021
Second Quarter			$	0.82		February 28, 2022			$	31,065		March 17, 2022
Third Quarter			$	0.89		May 31, 2022			$	33,795		June 16, 2022

In the third quarter of fiscal 2023, our Board of Directors approved a 10% increase in the regular quarterly dividend from $0.89 to $0.98 per share. Future cash dividend payments will depend on our earnings, capital requirements, financial condition and other factors considered relevant by us and are subject to final determination by our Board of Directors.

Accumulated Other Comprehensive Loss

The components of AOCL are as follows:

(in thousands)			May 31, 2023			August 31, 2022
Accumulated unrealized gains (losses) on cash flow hedges, net of tax			$	5,406		$	3,149
Accumulated foreign currency translation adjustments			(94,750)			(111,532)
Total AOCL			$	(89,344)		$	(108,383)

14. EARNINGS PER SHARE

Basic earnings per share ("Basic EPS") is computed by dividing net income by the number of weighted average common shares outstanding during the period. Diluted earnings per share ("Diluted EPS") is computed using the treasury stock method, by dividing net income by the cumulative weighted average common shares that are outstanding or are issuable upon the exercise of outstanding stock-based compensation awards during the period. Stock-based compensation awards that are out-of-the-money and performance share units ("PSUs") in which the performance criteria have not been met as of the end of the respective reporting period are omitted from the calculation of Diluted EPS.

A reconciliation of the weighted average shares outstanding used in the Basic EPS and Diluted EPS computation is as follows:

			Three Months Ended						Nine Months Ended
			May 31,						May 31,
(in thousands, except per share data)			2023			2022			2023			2022
Numerator
Net income used for calculating Basic EPS and Diluted EPS			$	134,663		$	74,910		$	403,054		$	292,495
Denominator
Weighted average common shares used in the calculation of Basic EPS			38,278			37,934			38,227			37,716
Common stock equivalents associated with stock-based compensation plan*(1)*			634			786			709			891
Shares used in the calculation of Diluted EPS			38,912			38,720			38,936			38,607
Basic EPS			$	3.52		$	1.97		$	10.54		$	7.76
Diluted EPS			$	3.46		$	1.93		$	10.35		$	7.58

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*(1)*Dilutive potential common shares consist of stock options and unvested PSUs. As of May 31, 2023 and May 31, 2022, we excluded 583,377 and 291,716 common stock equivalents related to stock options from our calculation of Diluted EPS, respectively. As of May 31, 2023 and May 31, 2022, we excluded a respective 93,230 and 95,359 common stock equivalents related to PSUs from our calculation of Diluted EPS.

15. STOCK-BASED COMPENSATION

We measure compensation expense based on the grant date fair value for all stock-based awards made to our employees and to our non-employee directors ("non-employees") using the Black-Scholes model or the lattice-binomial option-pricing model ("binomial model").

We utilize the Black-Scholes model for grants of non-employee stock options and non-employee restricted stock units ("RSUs"), and common stock acquired under the FactSet Research Systems Inc. Employee Stock Purchase Plan, as Amended and Restated ("ESPP"). We use the binomial model for grants of employee stock options and employee RSUs and PSUs. We refer to RSUs and PSUs, collectively, as "Restricted Stock Awards."

Both models involve certain estimates and assumptions such as:

• Risk-free interest rate** - based on the U.S. Treasury yield curve in effect at the time of grant with maturities equal to the expected terms of the stock-based awards granted.

• Expected life** - the weighted average period the stock-based awards are expected to remain outstanding.

• Expected volatility** - based on a blend of historical volatility of the stock-based award's useful life and the weighted average implied volatility for call option contracts traded in the 90 days preceding the stock-based award's valuation date.

• Dividend yield** - the expectation of dividend payouts based on our history.

Additionally, the binomial model incorporates market conditions, vesting restrictions and exercise patterns.

For Restricted Stock Awards, the grant date fair value is measured by reducing the grant date price of our common stock by the present value of the dividends expected to be paid on the underlying stock during the requisite service period, discounted at the appropriate risk-free interest rate.

For stock-based awards, we use the straight-line method to recognize compensation expense over the requisite service period. The amount of compensation expense that is recognized on any date is at least equal to the vested portion of the award on that date. Compensation expense for PSUs is recognized if the achievement of the performance condition is determined to be probable. We review the PSU performance conditions quarterly to ensure the compensation expense appropriately reflects the Company's expected achievement, as these awards are subject to upward or downward adjustment depending on whether the actual financial performance is above or below target levels, with the PSU payout ranging from 0% to 150% of the number of target shares. Compensation expense for stock-based awards is recorded net of estimated forfeitures, which are based on historical forfeiture rates and are revised if actual forfeitures differ from those estimates.

We recognized total stock-based compensation expense of $16.9 million and $14.7 million during the three months ended May 31, 2023 and May 31, 2022, respectively. During the nine months ended May 31, 2023 and May 31, 2022, we recognized total stock-based compensation expense of $44.4 million and $40.6 million, respectively.

As of May 31, 2023, $123.5 million of total unrecognized compensation expense related to non-vested awards is expected to be recognized over a weighted average period of 3.1 years. There was no stock-based compensation capitalized as of May 31, 2023 and May 31, 2022.

As of May 31, 2023, we had 4.3 million employee stock-based awards available for grant under the FactSet Research Systems Inc. Stock Option and Award Plan, as Amended and Restated (the "LTIP"). As of May 31, 2023, we had 0.2 million non-employee stock-based awards available for grant under the FactSet Research Systems Inc. Non-Employee Directors’ Stock Option and Award Plan as Amended and Restated (the “Director Plan”).

Employee Stock Option Awards

Under the LTIP, we granted the following stock options for the nine months ended May 31, 2023 and May 31, 2022, which are valued using the lattice-binomial option-pricing model. The majority of the stock options granted relate to the November 1, 2022 and November 1, 2021 annual employee grants.

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			Nine Months Ended
			May 31,
			2023			2022
Stock options granted*(1)*			268,185			302,952
Weighted average exercise price			$	426.22		$	434.64
Weighted average grant date fair value			$	125.57		$	102.46

(1) Includes the annual employee grant on November 1, 2022 and November 1, 2021 of 266,051 and 292,377 stock options, respectively. These annual employee grants both vest 20% annually on the anniversary date of the grant and are fully vested after five years, expiring ten years from the date of grant.

As part of the November 1, 2022 annual employee grant, the estimated grant date fair value leveraged the following assumptions:

November 1, 2022 Annual Employee Grant Details
Risk-free interest rate			3.99% - 4.51%
Expected life (years)			6.62
Expected volatility			24.7%
Dividend yield			0.83%
Estimated fair value			$125.62
Exercise price			$426.25

Non-Employee Director Stock Option Grant

On January 17, 2023, we granted 5,462 stock options under the Director Plan to our non-employee directors, which vest 100% on the first anniversary of the grant date and expire seven years from the date the options were granted. The estimated grant date fair value was determined using the Black-Scholes option-pricing model and leveraged the following assumptions:

January 17, 2023 Non-Employee Director Grant Details
Risk-free interest rate			3.49		%
Expected life (years)			5.7
Expected volatility			27.3		%
Dividend yield			0.84		%
Estimated fair value			$128.84
Exercise price			$428.70

Employee Restricted Stock Awards

Restricted Stock Awards granted to employees, under the LTIP, entitle the holders to shares of common stock as the Restricted Stock Awards vest over time, but not to dividends declared on the underlying shares, while the stock subject to the Restricted Stock Awards is unvested. The Restricted Stock Awards are subject to continued employment over a specified period. Vesting of the shares underlying the PSUs are also subject to achieving certain specified performance levels during the measurement period subsequent to the date of grant.

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Under the LTIP, we granted the following Restricted Stock Awards with the associated weighted average grant date fair value, assuming a target payout for PSUs, for the nine months ended May 31, 2023 and May 31, 2022:

			Nine months ended
			May 31,
			2023			2022
RSUs Granted(1)			47,474			71,933
PSUs Granted(2)			34,482			30,704
Total Restricted Stock Awards			81,956			102,637
Restricted Stock Awards weighted average grant date fair value			$	415.31		$	418.16

(1) The majority of the RSUs granted relate to the November 1, 2022 and November 1, 2021 annual employee grants that both vest 20% annually on the anniversary date of the grant and are fully vested after five years.

(2) The majority of the PSUs granted relate to the November 1, 2022 and November 1, 2021 annual employee grants that both cliff vest on the third anniversary of the grant date, subject to the achievement of certain performance metrics. The ultimate number of common shares that may be earned pursuant to these PSU awards range from 0% to 150% of the number of target shares, depending on the level of the Company's achievement of stated financial performance objectives.

Non-Employee Director Restricted Stock Units

The Director Plan provides for the grant of stock-based awards, including RSUs, to non-employee directors of FactSet. On January 17, 2023, we granted 1,653 RSUs to our directors that vest 100% on the first anniversary of the grant date. The RSUs granted to our directors on January 17, 2023 had a grant date fair value of $425.06.

Employee Stock Purchase Plan

Shares of FactSet common stock may be purchased by eligible employees under our ESPP in three-month intervals. The purchase price is equal to 85% of the lesser of the fair market value of our common stock on the first day or the last day of each three-month offering period. Employee purchases may not exceed 10% of their gross compensation, and there is a $25,000 contribution limit per employee for each calendar year. Shares purchased through our ESPP cannot be sold or otherwise transferred for 18 months after purchase. Dividends paid on shares held in our ESPP are used to purchase additional ESPP shares at the market price on the dividend payment date.

Stock-based compensation expense related to our ESPP was $0.7 million for the three months ended May 31, 2023 and $0.6 million for the three months ended May 31, 2022. Stock-based compensation expense related to our ESPP was $2.0 million for the nine months ended May 31, 2023 and $1.7 million for the nine months ended May 31, 2022. As of May 31, 2023, our ESPP had 73,348 shares reserved for future issuance.

16. SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that have the following characteristics: (i) they engage in business activities from which they may earn revenue and incur expense, (ii) their operating results are regularly reviewed by the chief operating decision maker ("CODM") for resource allocation decisions and performance assessment, and (iii) their discrete financial information is available. Our Chief Executive Officer functions as our CODM.

Our operating segments are consistent with our reportable segments and how we, including our CODM, manage our business and the geographic markets in which we serve. Our internal financial reporting structure is based on three segments: the Americas; EMEA; and Asia Pacific.

The Americas segment serves our clients throughout North, Central, and South America. The EMEA segment serves our clients in Europe, the Middle East, and Africa. The Asia Pacific segment serves our clients in Asia and Australia. Segment revenues reflect sales to our clients based on their respective geographic locations.

Each segment records expenses related to its individual operations with the exception of expenditures associated with our data centers, third-party data costs and corporate headquarters charges, which are recorded by the Americas segment and are not allocated to the other segments. The content collection centers, located in India, the Philippines and Latvia, benefit all our segments, and the expenses incurred at these locations are allocated to each segment based on a percentage of revenues.

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The following tables reflect the results of operations of our segments:

(in thousands)			Americas			EMEA			Asia Pacific			Total
For the three months ended May 31, 2023
Revenues			$	337,691		$	137,973		$	54,147		$	529,811
Operating income			$	79,005		$	58,607		$	34,347		$	171,959
Capital expenditures*(1)*			$	24,956		$	339		$	710		$	26,005
(in thousands)			Americas			EMEA			Asia Pacific			Total
For the three months ended May 31, 2022
Revenues			$	309,740		$	128,326		$	50,685		$	488,751
Operating income*(2)*			$	11,212		$	53,228		$	32,814		$	97,254
Capital expenditures*(1)*			$	12,362		$	466		$	2,576		$	15,404
(in thousands)
For the nine months ended May 31, 2023			Americas			EMEA			Asia Pacific			Total
Revenues			$	992,179		$	401,219		$	156,313		$	1,549,711
Operating income			$	207,717		$	194,870		$	110,517		$	513,104
Capital expenditures*(1)*			$	56,299		$	1,651		$	3,471		$	61,421
(in thousands)
For the nine months ended May 31, 2022			Americas			EMEA			Asia Pacific			Total
Revenues			$	850,312		$	357,920		$	136,363		$	1,344,595
Operating income*(2)*			$	115,613		$	139,826		$	87,824		$	343,263
Capital expenditures*(1)*			$	29,911		$	828		$	5,211		$	35,950

*(1)*Capital expenditures includes purchases of PPE and capitalized internal-use software.

*(2)*Asset impairments incurred during the three and nine months ended May 31, 2022 were $49.0 million ($44.6 million in the Americas, $4.1 in EMEA and $0.3 in Asia Pacific) and $63.0 million ($58.5 million in the Americas, $4.2 in EMEA and $0.3 in Asia Pacific), respectively. This impairment primarily related to vacating certain leased office space resulting in an impairment to our lease ROU assets and associated PPE. Refer to Note 4, Fair Value Measures and Note 10, Leases for more information on the impairment.

Segment Total Assets

The following table reflects the total assets for our segments:

(in thousands)			May 31, 2023			August 31, 2022
Segment Assets
Americas			$	3,112,136		$	3,191,313
EMEA			628,617			580,450
Asia Pacific			257,157			242,542
Total assets			$	3,997,910		$	4,014,305

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