FACTSET RESEARCH SYSTEMS INCFDS

FACTSET RESEARCH SYSTEMS INC Leases Disclosure

10-KFiled Oct 22, 20253 min read
LEASES
Our operating lease arrangements relate to our office space and data centers. 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 or modification date (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 lease term on a straight-line expense basis in occupancy costs (a component of SG&A expense) in our Consolidated Statements of Income.
As of August 31, 2025, we recognized $121.8 million of Lease ROU assets, net and $190.2 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets. Our leases have a remaining lease term ranging from less than one year to just over 10 years. Our lease agreements may include options to extend or terminate the lease, which would be included in the measurement of our lease term if it is reasonably certain that we will exercise the option.
The following table presents our future minimum lease payments and a reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of August 31, 2025:
(in thousands) Minimum Lease
Payments
Fiscal Years Ended August 31,
2026$41,550 
202740,968 
202836,685 
202931,068 
203025,891 
Thereafter41,039 
Total minimum lease payments$217,201 
Less: Imputed interest26,952 
Total lease liabilities$190,249 
The following table includes components of our occupancy costs:
Years ended August 31,
(in thousands)
202520242023
Operating lease costs(1)
$30,982 $30,407 $32,330 
Variable lease costs(2)
$18,110 $17,280 $17,940 
(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 we elected.
(2) Variable lease costs include costs that are not fixed 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 weighted average remaining lease term and weighted average discount rate related to our operating leases recorded on the Consolidated Balance Sheets:
As of August 31,
20252024
Weighted average remaining lease term (in years)
6.16.9
Weighted average discount rate (IBR)
4.7 %4.6 %
The following table summarizes supplemental cash flow information related to our operating leases:
Years ended August 31,
(in thousands)
202520242023
Cash paid for amounts included in the measurement of lease liabilities$40,613 $39,386 $39,392 
Lease ROU assets obtained in exchange for lease liabilities(1)
$7,439 $10,268 $16,934 
Reductions to ROU assets resulting from reductions to lease liabilities(2)
$(5,529)$(281)$(1,376)
(1) Primarily includes new lease arrangements entered into during the respective 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.

Historical Timeline

Fiscal YearFiled
2025Oct 22, 2025Showing above
2024Oct 29, 2024
2023Oct 27, 2023
2022Oct 21, 2022
2021Oct 22, 2021
2020Oct 29, 2020
2019Oct 30, 2019
2018Oct 30, 2018
2017Oct 30, 2017
2016Oct 31, 2016
2015Nov 2, 2015

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance