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FactSet(FDS) - 2024 Q2 - Quarterly Report

Financial Instruments - As of February 29, 2024, the total gross notional value of foreign currency forward contracts was 187.391million,anincreasefrom187.391 million, an increase from 172.644 million as of August 31, 2023[69]. - The company entered into a new interest rate swap agreement on March 1, 2024, with a notional amount of 200millionandafixedinterestrateof5.145200 million and a fixed interest rate of 5.145%[71]. - The company reported a net pre-tax derivative loss of 0.1 million expected to be reclassified into earnings within the next 12 months[75]. - The company’s interest rate swap agreement recognized a gain of 17,000forthethreemonthsendedFebruary29,2024[75].ThetotalcashflowhedgesasofFebruary29,2024,amountedto17,000 for the three months ended February 29, 2024[75]. - The total cash flow hedges as of February 29, 2024, amounted to 187.391 million, down from 372.644millionasofAugust31,2023[73].Thecompanysforeigncurrencyforwardcontractsrecognizedalossof372.644 million as of August 31, 2023[73]. - The company’s foreign currency forward contracts recognized a loss of 623,000 in accumulated other comprehensive loss (AOCL) for the three months ended February 29, 2024[75]. Goodwill and Intangible Assets - Goodwill as of February 29, 2024, was 1.003883billion,slightlydownfrom1.003883 billion, slightly down from 1.004736 billion as of August 31, 2023, primarily due to foreign currency translations[77]. - Amortization expense for intangible assets for the three months ended February 29, 2024, was 26.688million,comparedto26.688 million, compared to 21.782 million for the same period in 2023[80]. - The weighted average useful life of intangible assets as of February 29, 2024, was 32.1 years, with no material impairment identified during the reporting period[79]. - Estimated amortization expense for intangible assets for the remaining six months of 2024 is projected to be 53.369million[80].TaxationTheprovisionforincometaxesforthethreemonthsendedFebruary29,2024,was53.369 million[80]. Taxation - The provision for income taxes for the three months ended February 29, 2024, was 27,705 thousand, up from 25,169thousandintheprioryear,reflectinga6.125,169 thousand in the prior year, reflecting a 6.1% increase[82]. - The effective tax rate for the three months ended February 29, 2024, was 16.4%, slightly higher than 16.1% for the same period in 2023[82]. - The company utilized foreign tax credits, which partially offset the effective tax rate increase due to higher pretax income and foreign tax rates[84]. - The effective tax rate for the six months ended February 29, 2024, was 15.8%, compared to 14.7% for the same period in the previous year[216]. Debt and Cash Flow - Total long-term debt as of February 29, 2024, was 1,489,488 thousand, down from 1,612,700thousandasofAugust31,2023,indicatingareductionof7.61,612,700 thousand as of August 31, 2023, indicating a reduction of 7.6%[93]. - The company repaid 62.5 million and 125.0millionunderthe2022TermFacilityduringthethreeandsixmonthsendedFebruary29,2024,respectively[99].InterestexpenseonoutstandingdebtforthethreemonthsendedFebruary29,2024,was125.0 million under the 2022 Term Facility during the three and six months ended February 29, 2024, respectively[99]. - Interest expense on outstanding debt for the three months ended February 29, 2024, was 16,589 thousand, compared to 16,728thousandforthesameperiodin2023,reflectingadecreaseof0.816,728 thousand for the same period in 2023, reflecting a decrease of 0.8%[108]. - Net cash provided by operating activities for the six months ended February 29, 2024, was 298.9 million, a 10.2% increase from 271.3millionforthesameperiodin2023[253].Netcashusedininvestingactivitieswas271.3 million for the same period in 2023[253]. - Net cash used in investing activities was 83.3 million for the six months ended February 29, 2024, primarily due to 44.9millionininvestmentsand44.9 million in investments and 38.4 million in capital expenditures[256]. - The company reported a net cash outflow of 102.0milliontosupportworkingcapitalrequirementsforthesixmonthsendedFebruary29,2024[254].FreecashflowforthesixmonthsendedFebruary29,2024,was102.0 million to support working capital requirements for the six months ended February 29, 2024[254]. - Free cash flow for the six months ended February 29, 2024, was 260.6 million, an increase of 24.7millioncomparedtothesameperiodin2023[261].ShareholderReturnsThecompanyrepurchased113,050sharesofcommonstockforatotalcostof24.7 million compared to the same period in 2023[261]. Shareholder Returns - The company repurchased 113,050 shares of common stock for a total cost of 52,255 thousand during the three months ended February 29, 2024[122]. - The total amount of dividends declared for the second quarter of fiscal 2024 was 37,360thousand,withadividendpershareof37,360 thousand, with a dividend per share of 0.98[126]. - The company returned 186.3milliontostockholdersintheformofsharerepurchasesanddividendsduringthesixmonthsendedFebruary29,2024,comparedto186.3 million to stockholders in the form of share repurchases and dividends during the six months ended February 29, 2024, compared to 67.5 million in dividends during the same period in 2023[245]. - The company had 187.8millionauthorizedunderitssharerepurchaseprogramforfuturesharerepurchasesasofFebruary29,2024[124].RevenueandEarningsIncomebeforeincometaxesforthethreemonthsendedFebruary29,2024,was187.8 million authorized under its share repurchase program for future share repurchases as of February 29, 2024[124]. Revenue and Earnings - Income before income taxes for the three months ended February 29, 2024, was 168,645 thousand, compared to 156,762thousandforthesameperiodin2023,representinganincreaseof5.6156,762 thousand for the same period in 2023, representing an increase of 5.6%[82]. - Basic earnings per share (EPS) for the three months ended February 29, 2024, was 3.70, an increase from 3.44inthesameperiodof2023,representingagrowthof7.53.44 in the same period of 2023, representing a growth of 7.5%[130]. - Diluted EPS for the six months ended February 29, 2024, was 7.49, compared to 6.89forthesameperiodin2023,indicatingayearoveryearincreaseof8.76.89 for the same period in 2023, indicating a year-over-year increase of 8.7%[130]. - Total revenues for the six months ended February 29, 2024, reached 1.088 billion, compared to 1.020billionforthesameperiodin2023,markingagrowthof6.71.020 billion for the same period in 2023, marking a growth of 6.7%[150]. - Revenues for Q2 FY2024 were 545.9 million, a 6.0% increase from the prior year, driven by organic revenue growth of 6.0%[180]. - Organic revenues for the six months ended February 29, 2024, increased by 6.6% to 1,087.5millionfrom1,087.5 million from 1,019.9 million in the same period a year ago[226]. Operating Performance - Operating income for the Americas segment for the three months ended February 29, 2024, was 81.711million,upfrom81.711 million, up from 61.181 million in the same period of 2023, indicating a significant increase of 33.5%[150]. - Operating margin improved to 33.3% in Q2 FY2024, up from 32.9% in the prior year, attributed to revenue growth and reduced computer-related expenses[162]. - Operating income increased 7.5% to 181.9millionforthethreemonthsendedFebruary29,2024,comparedto181.9 million for the three months ended February 29, 2024, compared to 169.3 million in the prior year[202]. - Operating margin increased to 33.3% for the three months ended February 29, 2024, compared to 32.9% in the prior year[206]. Employee and Client Metrics - The company had more than 8,000 clients, comprising over 206,000 investment professionals as of February 29, 2024[154]. - Employee headcount grew by 3.2% to 12,279, with significant growth in Asia Pacific, while the Americas and EMEA saw slight decreases[175]. - The company had 3.7 million employee stock-based awards available for grant under the LTIP as of February 29, 2024[138]. Regional Performance - The Americas segment generated revenues of 352.618millionforthethreemonthsendedFebruary29,2024,anincreaseof6.5352.618 million for the three months ended February 29, 2024, an increase of 6.5% from 331.121 million in the same period of 2023[150]. - EMEA revenues increased 5.0% to 139.2millionforthethreemonthsendedFebruary29,2024,drivenbya4.8139.2 million for the three months ended February 29, 2024, driven by a 4.8% increase in organic revenues[185]. - Asia Pacific revenues increased 5.2% to 54.1 million for the three months ended February 29, 2024, reflecting a 6.4% increase in organic revenues[186]. - Americas revenues increased 7.1% to 701.0millionforthesixmonthsendedFebruary29,2024,withorganicrevenuegrowthof7.1701.0 million for the six months ended February 29, 2024, with organic revenue growth of 7.1%[187]. - EMEA revenues increased 5.9% to 278.7 million for the six months ended February 29, 2024, driven by a 5.4% increase in organic revenues[188]. - Asia Pacific revenues increased 6.1% to $108.4 million for the six months ended February 29, 2024, reflecting a 7.0% increase in organic revenues[189].