☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to |
Ireland | 98-0627530 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A ordinary shares, par value $0.0000225 per share | ACN | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(In thousands of U.S. dollars, except share and per share amounts) | |||||||||||
3 |
November 30, 2019 | August 31, 2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 5,810,537 | $ | 6,126,853 | |||
Short-term investments | 3,303 | 3,313 | |||||
Receivables and contract assets | 8,577,386 | 8,095,071 | |||||
Other current assets | 1,214,878 | 1,225,364 | |||||
Total current assets | 15,606,104 | 15,450,601 | |||||
NON-CURRENT ASSETS: | |||||||
Contract assets | 58,071 | 71,002 | |||||
Investments | 278,765 | 240,313 | |||||
Property and equipment, net | 1,386,440 | 1,391,166 | |||||
Lease assets | 3,154,501 | — | |||||
Goodwill | 6,300,004 | 6,205,550 | |||||
Deferred contract costs | 691,727 | 681,492 | |||||
Deferred tax assets | 4,300,909 | 4,349,464 | |||||
Other non-current assets | 1,394,191 | 1,400,292 | |||||
Total non-current assets | 17,564,608 | 14,339,279 | |||||
TOTAL ASSETS | $ | 33,170,712 | $ | 29,789,880 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt and bank borrowings | $ | 3,698 | $ | 6,411 | |||
Accounts payable | 1,581,112 | 1,646,641 | |||||
Deferred revenues | 2,986,524 | 3,188,835 | |||||
Accrued payroll and related benefits | 4,652,038 | 4,890,542 | |||||
Income taxes payable | 448,010 | 378,017 | |||||
Lease liabilities | 710,787 | — | |||||
Other accrued liabilities | 817,239 | 951,450 | |||||
Total current liabilities | 11,199,408 | 11,061,896 | |||||
NON-CURRENT LIABILITIES: | |||||||
Long-term debt | 15,935 | 16,247 | |||||
Deferred revenues | 585,301 | 565,224 | |||||
Retirement obligation | 1,784,347 | 1,765,914 | |||||
Deferred tax liabilities | 144,659 | 133,232 | |||||
Income taxes payable | 905,952 | 892,688 | |||||
Lease liabilities | 2,651,651 | — | |||||
Other non-current liabilities | 282,251 | 526,988 | |||||
Total non-current liabilities | 6,370,096 | 3,900,293 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS’ EQUITY: | |||||||
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2019 and August 31, 2019 | 57 | 57 | |||||
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 656,946,050 and 654,739,267 shares issued as of November 30, 2019 and August 31, 2019, respectively | 15 | 15 | |||||
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 593,689 and 609,404 shares issued and outstanding as of November 30, 2019 and August 31, 2019, respectively | — | — | |||||
Restricted share units | 1,525,898 | 1,411,903 | |||||
Additional paid-in capital | 6,162,252 | 5,804,448 | |||||
Treasury shares, at cost: Ordinary, 40,000 shares as of November 30, 2019 and August 31, 2019; Class A ordinary, 21,950,289 and 18,964,863 shares as of November 30, 2019 and August 31, 2019, respectively | (1,977,391 | ) | (1,388,376 | ) | |||
Retained earnings | 11,236,275 | 10,421,538 | |||||
Accumulated other comprehensive loss | (1,779,968 | ) | (1,840,577 | ) | |||
Total Accenture plc shareholders’ equity | 15,167,138 | 14,409,008 | |||||
Noncontrolling interests | 434,070 | 418,683 | |||||
Total shareholders’ equity | 15,601,208 | 14,827,691 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 33,170,712 | $ | 29,789,880 |
November 30, 2020 | August 31, 2020 | ||||||||||
ASSETS | (Unaudited) | ||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 8,594,003 | $ | 8,415,330 | |||||||
Short-term investments | 83,148 | 94,309 | |||||||||
Receivables and contract assets | 8,547,711 | 7,846,892 | |||||||||
Other current assets | 1,401,232 | 1,393,225 | |||||||||
Total current assets | 18,626,094 | 17,749,756 | |||||||||
NON-CURRENT ASSETS: | |||||||||||
Contract assets | 44,517 | 43,257 | |||||||||
Investments | 298,906 | 324,514 | |||||||||
Property and equipment, net | 1,506,825 | 1,545,568 | |||||||||
Lease assets | 3,100,120 | 3,183,346 | |||||||||
Goodwill | 8,127,411 | 7,709,820 | |||||||||
Deferred contract costs | 715,897 | 723,168 | |||||||||
Deferred tax assets | 4,178,723 | 4,153,146 | |||||||||
Other non-current assets | 1,669,818 | 1,646,018 | |||||||||
Total non-current assets | 19,642,217 | 19,328,837 | |||||||||
TOTAL ASSETS | $ | 38,268,311 | $ | 37,078,593 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Current portion of long-term debt and bank borrowings | $ | 8,925 | $ | 7,820 | |||||||
Accounts payable | 1,513,442 | 1,349,874 | |||||||||
Deferred revenues | 3,524,781 | 3,636,741 | |||||||||
Accrued payroll and related benefits | 5,179,301 | 5,083,950 | |||||||||
Income taxes payable | 445,824 | 453,542 | |||||||||
Lease liabilities | 732,878 | 756,057 | |||||||||
Accrued consumption taxes | 706,876 | 662,409 | |||||||||
Other accrued liabilities | 707,072 | 712,197 | |||||||||
Total current liabilities | 12,819,099 | 12,662,590 | |||||||||
NON-CURRENT LIABILITIES: | |||||||||||
Long-term debt | 59,881 | 54,052 | |||||||||
Deferred revenues | 668,267 | 690,931 | |||||||||
Retirement obligation | 1,875,976 | 1,859,444 | |||||||||
Deferred tax liabilities | 201,376 | 179,703 | |||||||||
Income taxes payable | 995,478 | 930,695 | |||||||||
Lease liabilities | 2,627,185 | 2,667,584 | |||||||||
Other non-current liabilities | 594,833 | 534,421 | |||||||||
Total non-current liabilities | 7,022,996 | 6,916,830 | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2020 and August 31, 2020 | 57 | 57 | |||||||||
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 660,518,888 and 658,548,895 shares issued as of November 30, 2020 and August 31, 2020, respectively | 15 | 15 | |||||||||
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 526,879 and 527,509 shares issued and outstanding as of November 30, 2020 and August 31, 2020, respectively | 0 | 0 | |||||||||
Restricted share units | 1,721,681 | 1,585,302 | |||||||||
Additional paid-in capital | 7,551,089 | 7,167,227 | |||||||||
Treasury shares, at cost: Ordinary, 40,000 shares as of November 30, 2020 and August 31, 2020; Class A ordinary, 26,898,686 and 24,383,369 shares as of November 30, 2020 and August 31, 2020, respectively | (3,163,841) | (2,565,761) | |||||||||
Retained earnings | 13,276,702 | 12,375,533 | |||||||||
Accumulated other comprehensive loss | (1,479,202) | (1,561,837) | |||||||||
Total Accenture plc shareholders’ equity | 17,906,501 | 17,000,536 | |||||||||
Noncontrolling interests | 519,715 | 498,637 | |||||||||
Total shareholders’ equity | 18,426,216 | 17,499,173 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 38,268,311 | $ | 37,078,593 |
Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 4 |
2019 | 2018 | ||||||
REVENUES: | |||||||
Revenues | $ | 11,358,958 | $ | 10,605,546 | |||
OPERATING EXPENSES: | |||||||
Cost of services | 7,711,199 | 7,308,121 | |||||
Sales and marketing | 1,191,123 | 1,070,016 | |||||
General and administrative costs | 689,373 | 598,397 | |||||
Total operating expenses | 9,591,695 | 8,976,534 | |||||
OPERATING INCOME | 1,767,263 | 1,629,012 | |||||
Interest income | 27,419 | 19,631 | |||||
Interest expense | (5,474 | ) | (4,505 | ) | |||
Other income (expense), net | 11,439 | (33,654 | ) | ||||
INCOME BEFORE INCOME TAXES | 1,800,647 | 1,610,484 | |||||
Income tax expense | 425,479 | 319,160 | |||||
NET INCOME | 1,375,168 | 1,291,324 | |||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | (1,741 | ) | (1,888 | ) | |||
Net income attributable to noncontrolling interests – other | (16,459 | ) | (14,716 | ) | |||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | 1,356,968 | $ | 1,274,720 | |||
Weighted average Class A ordinary shares: | |||||||
Basic | 635,722,309 | 638,877,445 | |||||
Diluted | 649,389,444 | 652,151,450 | |||||
Earnings per Class A ordinary share: | |||||||
Basic | $ | 2.13 | $ | 2.00 | |||
Diluted | $ | 2.09 | $ | 1.96 | |||
Cash dividends per share | $ | 0.80 | $ | 1.46 |
2020 | 2019 | ||||||||||
REVENUES: | |||||||||||
Revenues | $ | 11,762,185 | $ | 11,358,958 | |||||||
OPERATING EXPENSES: | |||||||||||
Cost of services | 7,863,889 | 7,711,199 | |||||||||
Sales and marketing | 1,227,176 | 1,191,123 | |||||||||
General and administrative costs | 780,451 | 689,373 | |||||||||
Total operating expenses | 9,871,516 | 9,591,695 | |||||||||
OPERATING INCOME | 1,890,669 | 1,767,263 | |||||||||
Interest income | 10,685 | 27,419 | |||||||||
Interest expense | (8,854) | (5,474) | |||||||||
Other income (expense), net | 94,367 | 11,439 | |||||||||
INCOME BEFORE INCOME TAXES | 1,986,867 | 1,800,647 | |||||||||
Income tax expense | 464,810 | 425,479 | |||||||||
NET INCOME | 1,522,057 | 1,375,168 | |||||||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | (1,700) | (1,741) | |||||||||
Net income attributable to noncontrolling interests – other | (20,081) | (16,459) | |||||||||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | 1,500,276 | $ | 1,356,968 | |||||||
Weighted average Class A ordinary shares: | |||||||||||
Basic | 634,271,482 | 635,722,309 | |||||||||
Diluted | 646,879,735 | 649,389,444 | |||||||||
Earnings per Class A ordinary share: | |||||||||||
Basic | $ | 2.37 | $ | 2.13 | |||||||
Diluted | $ | 2.32 | $ | 2.09 | |||||||
Cash dividends per share | $ | 0.88 | $ | 0.80 |
Consolidated Financial Statements (In thousands of U.S. dollars) | |||||||||||
ACCENTURE FORM 10-Q | 5 | ||||||||||
2019 | 2018 | ||||||
NET INCOME | $ | 1,375,168 | $ | 1,291,324 | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||||
Foreign currency translation | 37,730 | (8,617 | ) | ||||
Defined benefit plans | 8,752 | 20,413 | |||||
Cash flow hedges | 14,127 | 88,344 | |||||
Investments | — | (515 | ) | ||||
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | 60,609 | 99,625 | |||||
Other comprehensive income (loss) attributable to noncontrolling interests | 1,180 | (2,296 | ) | ||||
COMPREHENSIVE INCOME | $ | 1,436,957 | $ | 1,388,653 | |||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | 1,417,577 | $ | 1,374,345 | |||
Comprehensive income attributable to noncontrolling interests | 19,380 | 14,308 | |||||
COMPREHENSIVE INCOME | $ | 1,436,957 | $ | 1,388,653 |
2020 | 2019 | ||||||||||
NET INCOME | $ | 1,522,057 | $ | 1,375,168 | |||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||||||||
Foreign currency translation | 67,312 | 37,730 | |||||||||
Defined benefit plans | 10,881 | 8,752 | |||||||||
Cash flow hedges | 4,393 | 14,127 | |||||||||
Investments | 49 | 0 | |||||||||
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | 82,635 | 60,609 | |||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 1,461 | 1,180 | |||||||||
COMPREHENSIVE INCOME | $ | 1,606,153 | $ | 1,436,957 | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | 1,582,911 | $ | 1,417,577 | |||||||
Comprehensive income attributable to noncontrolling interests | 23,242 | 19,380 | |||||||||
COMPREHENSIVE INCOME | $ | 1,606,153 | $ | 1,436,957 |
Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 6 | ||||||||||
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2019 | $ | 57 | 40 | $ | 15 | 654,739 | $ | — | 609 | $ | 1,411,903 | $ | 5,804,448 | $ | (1,388,376 | ) | (19,005 | ) | $ | 10,421,538 | $ | (1,840,577 | ) | $ | 14,409,008 | $ | 418,683 | $ | 14,827,691 | ||||||||||||||||||||||||||
Net income | 1,356,968 | 1,356,968 | 18,200 | 1,375,168 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 60,609 | 60,609 | 1,180 | 61,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Class A shares | 811 | (724,618 | ) | (3,821 | ) | (723,807 | ) | (811 | ) | (724,618 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 238,677 | 36,252 | 274,929 | 274,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (15 | ) | (4,593 | ) | (4,593 | ) | (4,593 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Class A shares for employee share programs | 2,207 | (142,925 | ) | 323,660 | 135,603 | 836 | (16,263 | ) | 300,075 | 325 | 300,400 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends | 18,243 | (525,968 | ) | (507,725 | ) | (656 | ) | (508,381 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,674 | 1,674 | (2,851 | ) | (1,177 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of November 30, 2019 | $ | 57 | 40 | $ | 15 | 656,946 | $ | — | 594 | $ | 1,525,898 | $ | 6,162,252 | $ | (1,977,391 | ) | (21,990 | ) | $ | 11,236,275 | $ | (1,779,968 | ) | $ | 15,167,138 | $ | 434,070 | $ | 15,601,208 |
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2020 | $ | 57 | 40 | $ | 15 | 658,549 | $ | 0 | 528 | $ | 1,585,302 | $ | 7,167,227 | $ | (2,565,761) | (24,423) | $ | 12,375,533 | $ | (1,561,837) | $ | 17,000,536 | $ | 498,637 | $ | 17,499,173 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1,500,276 | 1,500,276 | 21,781 | 1,522,057 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 82,635 | 82,635 | 1,461 | 84,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Class A shares | 765 | (768,395) | (3,341) | (767,630) | (765) | (768,395) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 270,226 | 41,095 | 311,321 | 311,321 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (1) | (500) | (500) | (500) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Class A shares for employee share programs | 1,970 | (153,073) | 343,783 | 170,315 | 825 | (22,462) | 338,563 | 328 | 338,891 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | 19,226 | (576,645) | (557,419) | (633) | (558,052) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (1,281) | (1,281) | (1,094) | (2,375) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of November 30, 2020 | $ | 57 | 40 | $ | 15 | 660,519 | $ | 0 | 527 | $ | 1,721,681 | $ | 7,551,089 | $ | (3,163,841) | (26,939) | $ | 13,276,702 | $ | (1,479,202) | $ | 17,906,501 | $ | 519,715 | $ | 18,426,216 |
Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 7 | ||||||||||
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2018 | $ | 57 | 40 | $ | 15 | 663,328 | $ | — | 656 | $ | 1,234,623 | $ | 4,870,764 | $ | (2,116,948 | ) | (24,333 | ) | $ | 7,952,413 | $ | (1,576,171 | ) | $ | 10,364,753 | $ | 359,835 | $ | 10,724,588 | ||||||||||||||||||||||||||
Cumulative effect adjustment | 2,134,818 | 2,134,818 | 3,158 | 2,137,976 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1,274,720 | 1,274,720 | 16,604 | 1,291,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 99,625 | 99,625 | (2,296 | ) | 97,329 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Class A shares | 1,026 | (787,508 | ) | (4,861 | ) | (786,482 | ) | (1,026 | ) | (787,508 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 214,713 | 31,803 | 246,516 | 246,516 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (5 | ) | (819 | ) | (819 | ) | (819 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Class A shares for employee share programs | 2,213 | (133,965 | ) | 277,039 | 156,008 | 988 | (33,244 | ) | 265,838 | 344 | 266,182 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends | 27,594 | (959,054 | ) | (931,460 | ) | (1,378 | ) | (932,838 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (3,064 | ) | 14,411 | $ | 11,347 | $ | 1,471 | $ | 12,818 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of November 30, 2018 | $ | 57 | 40 | $ | 15 | 665,541 | $ | — | 651 | $ | 1,342,965 | $ | 5,176,749 | $ | (2,748,448 | ) | (28,206 | ) | $ | 10,384,064 | $ | (1,476,546 | ) | $ | 12,678,856 | $ | 376,712 | $ | 13,055,568 |
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2019 | $ | 57 | 40 | $ | 15 | 654,739 | $ | 0 | 609 | $ | 1,411,903 | $ | 5,804,448 | $ | (1,388,376) | (19,005) | $ | 10,421,538 | $ | (1,840,577) | $ | 14,409,008 | $ | 418,683 | $ | 14,827,691 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 1,356,968 | 1,356,968 | 18,200 | 1,375,168 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 60,609 | 60,609 | 1,180 | 61,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of Class A shares | 811 | (724,618) | (3,821) | (723,807) | (811) | (724,618) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 238,677 | 36,252 | 274,929 | 274,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (15) | (4,593) | (4,593) | (4,593) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Class A shares for employee share programs | 2,207 | (142,925) | 323,660 | 135,603 | 836 | (16,263) | 300,075 | 325 | 300,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | 18,243 | (525,968) | (507,725) | (656) | (508,381) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,674 | 1,674 | (2,851) | (1,177) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of November 30, 2019 | $ | 57 | 40 | $ | 15 | 656,946 | $ | 0 | 594 | $ | 1,525,898 | $ | 6,162,252 | $ | (1,977,391) | (21,990) | $ | 11,236,275 | $ | (1,779,968) | $ | 15,167,138 | $ | 434,070 | $ | 15,601,208 |
Consolidated Financial Statements (In thousands of U.S. dollars) | |||||||||||
ACCENTURE FORM 10-Q | 8 | ||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 1,375,168 | $ | 1,291,324 | Net income | $ | 1,522,057 | $ | 1,375,168 | |||||||||
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | |||||||||||||||||
Depreciation, amortization and other | 399,458 | 211,685 | Depreciation, amortization and other | 468,200 | 399,458 | |||||||||||||
Share-based compensation expense | 274,929 | 246,516 | Share-based compensation expense | 311,321 | 274,929 | |||||||||||||
Deferred tax expense (benefit) | 36,591 | (2,634 | ) | Deferred tax expense (benefit) | (19,096) | 36,591 | ||||||||||||
Other, net | (120,927 | ) | (42,244 | ) | Other, net | (103,806) | (120,927) | |||||||||||
Change in assets and liabilities, net of acquisitions — | Change in assets and liabilities, net of acquisitions — | |||||||||||||||||
Receivables and contract assets, current and non-current | (436,872 | ) | (536,882 | ) | Receivables and contract assets, current and non-current | (594,475) | (436,872) | |||||||||||
Other current and non-current assets | (101,096 | ) | (155,787 | ) | Other current and non-current assets | (18,129) | (101,096) | |||||||||||
Accounts payable | (61,929 | ) | (14,487 | ) | Accounts payable | 148,495 | (61,929) | |||||||||||
Deferred revenues, current and non-current | (185,313 | ) | 13,280 | Deferred revenues, current and non-current | (151,356) | (185,313) | ||||||||||||
Accrued payroll and related benefits | (261,592 | ) | 81,117 | Accrued payroll and related benefits | 48,385 | (261,592) | ||||||||||||
Income taxes payable, current and non-current | 84,840 | (47,554 | ) | Income taxes payable, current and non-current | 34,755 | 84,840 | ||||||||||||
Other current and non-current liabilities | (216,346 | ) | (16,826 | ) | Other current and non-current liabilities | (43,506) | (216,346) | |||||||||||
Net cash provided by (used in) operating activities | 786,911 | 1,027,508 | Net cash provided by (used in) operating activities | 1,602,845 | 786,911 | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Purchases of property and equipment | (95,063 | ) | (77,691 | ) | Purchases of property and equipment | (93,115) | (95,063) | |||||||||||
Purchases of businesses and investments, net of cash acquired | (109,848 | ) | (200,417 | ) | Purchases of businesses and investments, net of cash acquired | (503,843) | (109,848) | |||||||||||
Proceeds from sales of businesses and investments | 39,200 | 441 | Proceeds from sales of businesses and investments | 149,002 | 39,200 | |||||||||||||
Other investing, net | (182 | ) | 4,799 | Other investing, net | 1,549 | (182) | ||||||||||||
Net cash provided by (used in) investing activities | (165,893 | ) | (272,868 | ) | Net cash provided by (used in) investing activities | (446,407) | (165,893) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Proceeds from issuance of shares | 300,400 | 266,182 | Proceeds from issuance of shares | 338,891 | 300,400 | |||||||||||||
Purchases of shares | (729,211 | ) | (788,327 | ) | Purchases of shares | (768,895) | (729,211) | |||||||||||
Proceeds from (repayments of) long-term debt, net | (570 | ) | (369 | ) | Proceeds from (repayments of) long-term debt, net | (82) | (570) | |||||||||||
Cash dividends paid | (508,381 | ) | (932,838 | ) | Cash dividends paid | (558,052) | (508,381) | |||||||||||
Other, net | (10,462 | ) | (6,816 | ) | Other, net | (11,313) | (10,462) | |||||||||||
Net cash provided by (used in) financing activities | (948,224 | ) | (1,462,168 | ) | Net cash provided by (used in) financing activities | (999,451) | (948,224) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 10,890 | 9,958 | Effect of exchange rate changes on cash and cash equivalents | 21,686 | 10,890 | |||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (316,316 | ) | (697,570 | ) | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 178,673 | (316,316) | |||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 6,126,853 | 5,061,360 | CASH AND CASH EQUIVALENTS, beginning of period | 8,415,330 | 6,126,853 | |||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 5,810,537 | $ | 4,363,790 | CASH AND CASH EQUIVALENTS, end of period | $ | 8,594,003 | $ | 5,810,537 | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||||||||
Income taxes paid, net | $ | 292,787 | $ | 297,166 | Income taxes paid, net | $ | 344,628 | $ | 292,787 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 9 | ||||||||||
November 30, 2020 | August 31, 2020 | ||||||||||
Equity method investments | $ | 211,765 | $ | 240,446 | |||||||
Investments without readily determinable fair values | 87,141 | 84,068 | |||||||||
Total non-current investments | $ | 298,906 | $ | 324,514 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 10 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Depreciation | $ | 133,918 | $ | 97,090 | |||||||
Amortization - Deferred transition | 81,356 | 67,914 | |||||||||
Amortization - Intangible assets | 67,207 | 53,372 | |||||||||
Other - Operating lease cost | 185,719 | 181,082 | |||||||||
Total depreciation, amortization and other | $ | 468,200 | $ | 399,458 |
Balance Sheet | Balance as of August 31, 2019 | Adjustments due to ASU 2016-02 (Topic 842) | Balance as of September 1, 2019 | ||||||||
CURRENT ASSETS | |||||||||||
Other current assets | $ | 1,225,364 | $ | (38,666 | ) | $ | 1,186,698 | ||||
NON-CURRENT ASSETS | |||||||||||
Lease assets | — | 3,169,608 | 3,169,608 | ||||||||
Other non-current assets | 1,400,292 | (10,333 | ) | 1,389,959 | |||||||
CURRENT LIABILITIES | |||||||||||
Lease liabilities | — | 699,399 | 699,399 | ||||||||
Other accrued liabilities | 951,450 | (703 | ) | 950,747 | |||||||
NON-CURRENT LIABILITIES | |||||||||||
Lease liabilities | — | 2,666,344 | 2,666,344 | ||||||||
Other non-current liabilities | 526,988 | (244,431 | ) | 282,557 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 11 | ||||||||||
As of November 30, 2019 | As of August 31, 2019 | ||||||
Receivables, net of allowance | $ | 7,908,781 | $ | 7,467,338 | |||
Contract assets (current) | 668,605 | 627,733 | |||||
Receivables and contract assets (current) | 8,577,386 | 8,095,071 | |||||
Contract assets (non-current) | 58,071 | 71,002 | |||||
Deferred revenues (current) | 2,986,524 | 3,188,835 | |||||
Deferred revenues (non-current) | 585,301 | 565,224 |
As of November 30, 2020 | As of August 31, 2020 | ||||||||||
Receivables | $ | 7,799,770 | $ | 7,192,110 | |||||||
Contract assets (current) | 747,941 | 654,782 | |||||||||
Receivables and contract assets, net of allowance (current) | 8,547,711 | 7,846,892 | |||||||||
Contract assets (non-current) | 44,517 | 43,257 | |||||||||
Deferred revenues (current) | 3,524,781 | 3,636,741 | |||||||||
Deferred revenues (non-current) | 668,267 | 690,931 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 12 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Basic earnings per share | |||||||||||
Net income attributable to Accenture plc | $ | 1,500,276 | $ | 1,356,968 | |||||||
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 | |||||||||
Basic earnings per share | $ | 2.37 | $ | 2.13 | |||||||
Diluted earnings per share | |||||||||||
Net income attributable to Accenture plc | $ | 1,500,276 | $ | 1,356,968 | |||||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) | 1,700 | 1,741 | |||||||||
Net income for diluted earnings per share calculation | $ | 1,501,976 | $ | 1,358,709 | |||||||
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 | |||||||||
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) | 718,767 | 815,515 | |||||||||
Diluted effect of employee compensation related to Class A ordinary shares | 11,633,343 | 12,626,225 | |||||||||
Diluted effect of share purchase plans related to Class A ordinary shares | 256,143 | 225,395 | |||||||||
Diluted weighted average Class A ordinary shares | 646,879,735 | 649,389,444 | |||||||||
Diluted earnings per share | $ | 2.32 | $ | 2.09 |
Three Months Ended | |||||||
November 30, 2019 | November 30, 2018 | ||||||
Basic earnings per share | |||||||
Net income attributable to Accenture plc | $ | 1,356,968 | $ | 1,274,720 | |||
Basic weighted average Class A ordinary shares | 635,722,309 | 638,877,445 | |||||
Basic earnings per share | $ | 2.13 | $ | 2.00 | |||
Diluted earnings per share | |||||||
Net income attributable to Accenture plc | $ | 1,356,968 | $ | 1,274,720 | |||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) | 1,741 | 1,888 | |||||
Net income for diluted earnings per share calculation | $ | 1,358,709 | $ | 1,276,608 | |||
Basic weighted average Class A ordinary shares | 635,722,309 | 638,877,445 | |||||
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) | 815,515 | 945,336 | |||||
Diluted effect of employee compensation related to Class A ordinary shares | 12,626,225 | 12,093,353 | |||||
Diluted effect of share purchase plans related to Class A ordinary shares | 225,395 | 235,316 | |||||
Diluted weighted average Class A ordinary shares | 649,389,444 | 652,151,450 | |||||
Diluted earnings per share | $ | 2.09 | $ | 1.96 |
(In thousands of U.S. dollars, except share and per share | |||||||||||
ACCENTURE FORM 10-Q | 13 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Foreign currency translation | |||||||||||
Beginning balance | $ | (1,010,279) | $ | (1,207,975) | |||||||
Foreign currency translation | 67,443 | 40,145 | |||||||||
Income tax benefit (expense) | 1,313 | (1,264) | |||||||||
Portion attributable to noncontrolling interests | (1,444) | (1,151) | |||||||||
Foreign currency translation, net of tax | 67,312 | 37,730 | |||||||||
Ending balance | (942,967) | (1,170,245) | |||||||||
Defined benefit plans | |||||||||||
Beginning balance | (615,223) | (672,323) | |||||||||
Reclassifications into net periodic pension and post-retirement expense (1) | 13,595 | 12,784 | |||||||||
Income tax benefit (expense) | (2,702) | (4,021) | |||||||||
Portion attributable to noncontrolling interests | (12) | (11) | |||||||||
Defined benefit plans, net of tax | 10,881 | 8,752 | |||||||||
Ending balance | (604,342) | (663,571) | |||||||||
Cash flow hedges | |||||||||||
Beginning balance | 63,714 | 38,993 | |||||||||
Unrealized gain (loss) | 25,364 | 38,408 | |||||||||
Reclassification adjustments into Cost of services | (20,895) | (20,019) | |||||||||
Income tax benefit (expense) | (71) | (4,244) | |||||||||
Portion attributable to noncontrolling interests | (5) | (18) | |||||||||
Cash flow hedges, net of tax | 4,393 | 14,127 | |||||||||
Ending balance (2) | 68,107 | 53,120 | |||||||||
Investments | |||||||||||
Beginning balance | (49) | 728 | |||||||||
Unrealized gain (loss) | 49 | 0 | |||||||||
Income tax benefit (expense) | 0 | 0 | |||||||||
Portion attributable to noncontrolling interests | 0 | 0 | |||||||||
Investments, net of tax | 49 | 0 | |||||||||
Ending balance | 0 | 728 | |||||||||
Accumulated other comprehensive loss | $ | (1,479,202) | $ | (1,779,968) |
Three Months Ended | |||||||
November 30, 2019 | November 30, 2018 | ||||||
Foreign currency translation | |||||||
Beginning balance | $ | (1,207,975 | ) | $ | (1,075,268 | ) | |
Foreign currency translation | 40,145 | (12,396 | ) | ||||
Income tax benefit (expense) | (1,264 | ) | 1,324 | ||||
Portion attributable to noncontrolling interests | (1,151 | ) | 2,455 | ||||
Foreign currency translation, net of tax | 37,730 | (8,617 | ) | ||||
Ending balance | (1,170,245 | ) | (1,083,885 | ) | |||
Defined benefit plans | |||||||
Beginning balance | (672,323 | ) | (419,284 | ) | |||
Reclassifications into net periodic pension and post-retirement expense (1) | 12,784 | 22,894 | |||||
Income tax benefit (expense) | (4,021 | ) | (2,451 | ) | |||
Portion attributable to noncontrolling interests | (11 | ) | (30 | ) | |||
Defined benefit plans, net of tax | 8,752 | 20,413 | |||||
Ending balance | (663,571 | ) | (398,871 | ) | |||
Cash flow hedges | |||||||
Beginning balance | 38,993 | (84,010 | ) | ||||
Unrealized gain (loss) | 38,408 | 115,678 | |||||
Reclassification adjustments into Cost of services | (20,019 | ) | 1,878 | ||||
Income tax benefit (expense) | (4,244 | ) | (29,082 | ) | |||
Portion attributable to noncontrolling interests | (18 | ) | (130 | ) | |||
Cash flow hedges, net of tax | 14,127 | 88,344 | |||||
Ending balance (2) | 53,120 | 4,334 | |||||
Investments | |||||||
Beginning balance | 728 | 2,391 | |||||
Unrealized gain (loss) | — | (516 | ) | ||||
Portion attributable to noncontrolling interests | — | 1 | |||||
Investments, net of tax | — | (515 | ) | ||||
Ending balance | 728 | 1,876 | |||||
Accumulated other comprehensive loss | $ | (1,779,968 | ) | $ | (1,476,546 | ) |
(In thousands of U.S. dollars, except share and |
14 | |||||||||||
August 31, 2019 | Additions/ Adjustments | Foreign Currency Translation | November 30, 2019 | ||||||||||||
Communications, Media & Technology | $ | 992,743 | $ | 19,381 | $ | 4,577 | $ | 1,016,701 | |||||||
Financial Services | 1,393,628 | (1,027 | ) | 8,736 | 1,401,337 | ||||||||||
Health & Public Service | 1,005,428 | 27,076 | 3,014 | 1,035,518 | |||||||||||
Products | 2,328,317 | 19,355 | 10,526 | 2,358,198 | |||||||||||
Resources | 485,434 | 381 | 2,435 | 488,250 | |||||||||||
Total | $ | 6,205,550 | $ | 65,166 | $ | 29,288 | $ | 6,300,004 |
August 31, 2020 | Additions/ Adjustments | Foreign Currency Translation | November 30, 2020 | ||||||||||||||||||||
North America | $ | 4,604,441 | $ | 225,619 | $ | 647 | $ | 4,830,707 | |||||||||||||||
Europe | 2,138,088 | 120,090 | 9,356 | 2,267,534 | |||||||||||||||||||
Growth Markets | 967,291 | 48,909 | 12,970 | 1,029,170 | |||||||||||||||||||
Total | $ | 7,709,820 | $ | 394,618 | $ | 22,973 | $ | 8,127,411 |
August 31, 2019 | November 30, 2019 | |||||||||||||||||||||||
Intangible Asset Class | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Customer-related | $ | 1,013,976 | $ | (358,130 | ) | $ | 655,846 | $ | 1,053,237 | $ | (398,751 | ) | $ | 654,486 | ||||||||||
Technology | 119,686 | (45,851 | ) | 73,835 | 111,510 | (42,838 | ) | 68,672 | ||||||||||||||||
Patents | 127,796 | (66,167 | ) | 61,629 | 127,552 | (65,833 | ) | 61,719 | ||||||||||||||||
Other | 78,344 | (28,875 | ) | 49,469 | 76,985 | (32,555 | ) | 44,430 | ||||||||||||||||
Total | $ | 1,339,802 | $ | (499,023 | ) | $ | 840,779 | $ | 1,369,284 | $ | (539,977 | ) | $ | 829,307 |
August 31, 2020 | November 30, 2020 | |||||||||||||||||||||||||||||||||||||
Intangible Asset Class | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Customer-related | $ | 1,319,332 | $ | (495,367) | $ | 823,965 | $ | 1,386,214 | $ | (527,370) | $ | 858,844 | ||||||||||||||||||||||||||
Technology | 150,765 | (55,543) | 95,222 | 170,600 | (56,977) | 113,623 | ||||||||||||||||||||||||||||||||
Patents | 129,295 | (66,954) | 62,341 | 128,399 | (65,928) | 62,471 | ||||||||||||||||||||||||||||||||
Other | 82,676 | (34,986) | 47,690 | 82,622 | (36,575) | 46,047 | ||||||||||||||||||||||||||||||||
Total | $ | 1,682,068 | $ | (652,850) | $ | 1,029,218 | $ | 1,767,835 | $ | (686,850) | $ | 1,080,985 |
Fiscal Year | Estimated Amortization | |||||||
Remainder of 2021 | $ | 179,796 | ||||||
2022 | 198,541 | |||||||
2023 | 178,958 | |||||||
2024 | 158,361 | |||||||
2025 | 138,373 | |||||||
Thereafter | 226,956 | |||||||
Total | $ | 1,080,985 |
Fiscal Year | Estimated Amortization | |||
Remainder of 2020 | $ | 145,127 | ||
2021 | 158,646 | |||
2022 | 137,918 | |||
2023 | 123,029 | |||
2024 | 98,037 | |||
Thereafter | 166,550 | |||
Total | $ | 829,307 |
Three Months Ended November 30, 2019 | |||
Operating lease cost | $ | 181,082 | |
Variable lease cost | 48,159 | ||
Sublease income | (6,538 | ) | |
Total net lease cost | $ | 222,703 |
Three Months Ended November 30, 2019 | |||
Lease liability payments | $ | 174,857 | |
Lease assets obtained in exchange for liabilities | $ | 111,949 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 15 | ||||||||||
Lease Payments | Sublease Receipts | ||||||
2020 (Remainder) | $ | 545,128 | $ | (15,789 | ) | ||
2021 | 668,309 | (15,975 | ) | ||||
2022 | 567,493 | (7,616 | ) | ||||
2023 | 463,033 | (7,493 | ) | ||||
2024 | 388,902 | (7,459 | ) | ||||
Thereafter | 1,255,478 | (32,479 | ) | ||||
Total lease payments (receipts) | 3,888,343 | $ | (86,811 | ) | |||
Less interest | (525,905 | ) | |||||
Total lease liabilities | $ | 3,362,438 |
Lease Payments | Sublease Receipts | ||||||
2020 | $ | 688,020 | $ | (24,884 | ) | ||
2021 | 597,307 | (17,908 | ) | ||||
2022 | 516,544 | (8,535 | ) | ||||
2023 | 428,481 | (7,541 | ) | ||||
2024 | 363,107 | (7,184 | ) | ||||
Thereafter | 1,246,097 | (30,708 | ) | ||||
$ | 3,839,556 | $ | (96,760 | ) |
Dividend Per Share | Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | Total Cash Outlay | |||||||||||||||||
Dividend Payment Date | Record Date | Cash Outlay | Record Date | Cash Outlay | ||||||||||||||||
November 15, 2019 | $ | 0.80 | October 17, 2019 | $ | 507,725 | October 15, 2019 | $ | 656 | $ | 508,381 |
Dividend Per Share | Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | Total Cash Outlay | |||||||||||||||||||||||||||||||||||
Dividend Payment Date | Record Date | Cash Outlay | Record Date | Cash Outlay | ||||||||||||||||||||||||||||||||||
November 13, 2020 | $ | 0.88 | October 13, 2020 | $ | 557,419 | October 9, 2020 | $ | 633 | $ | 558,052 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 16 | ||||||||||
November 30, 2019 | August 31, 2019 | ||||||
Assets | |||||||
Cash Flow Hedges | |||||||
Other current assets | $ | 59,675 | $ | 53,033 | |||
Other non-current assets | 50,686 | 49,525 | |||||
Other Derivatives | |||||||
Other current assets | 7,126 | 8,059 | |||||
Total assets | $ | 117,487 | $ | 110,617 | |||
Liabilities | |||||||
Cash Flow Hedges | |||||||
Other accrued liabilities | $ | 9,952 | $ | 18,826 | |||
Other non-current liabilities | 6,390 | 8,770 | |||||
Other Derivatives | |||||||
Other accrued liabilities | 14,292 | 32,195 | |||||
Total liabilities | $ | 30,634 | $ | 59,791 | |||
Total fair value | $ | 86,853 | $ | 50,826 | |||
Total notional value | $ | 8,953,147 | $ | 8,709,917 |
November 30, 2020 | August 31, 2020 | ||||||||||
Assets | |||||||||||
Cash Flow Hedges | |||||||||||
Other current assets | $ | 79,405 | $ | 75,871 | |||||||
Other non-current assets | 50,138 | 50,914 | |||||||||
Other Derivatives | |||||||||||
Other current assets | 42,697 | 27,964 | |||||||||
Total assets | $ | 172,240 | $ | 154,749 | |||||||
Liabilities | |||||||||||
Cash Flow Hedges | |||||||||||
Other accrued liabilities | $ | 12,883 | $ | 13,614 | |||||||
Other non-current liabilities | 12,691 | 13,576 | |||||||||
Other Derivatives | |||||||||||
Other accrued liabilities | 5,428 | 11,828 | |||||||||
Total liabilities | $ | 31,002 | $ | 39,018 | |||||||
Total fair value | $ | 141,238 | $ | 115,731 | |||||||
Total notional value | $ | 9,367,230 | $ | 9,600,691 |
November 30, 2020 | August 31, 2020 | ||||||||||
Net derivative assets | $ | 159,030 | $ | 129,520 | |||||||
Net derivative liabilities | 17,792 | 13,789 | |||||||||
Total fair value | $ | 141,238 | $ | 115,731 |
November 30, 2019 | August 31, 2019 | ||||||
Net derivative assets | $ | 98,125 | $ | 88,811 | |||
Net derivative liabilities | 11,272 | 37,985 | |||||
Total fair value | $ | 86,853 | $ | 50,826 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 17 | ||||||||||
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 18 | ||||||||||
Revenues | |||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
GEOGRAPHIC MARKETS | |||||||||||
North America | $ | 5,480,963 | $ | 5,287,812 | |||||||
Europe | 3,967,408 | 3,789,657 | |||||||||
Growth Markets | 2,313,814 | 2,281,489 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 | |||||||
INDUSTRY GROUPS (1) | |||||||||||
Communications, Media & Technology | $ | 2,333,645 | $ | 2,245,470 | |||||||
Financial Services | 2,346,291 | 2,190,107 | |||||||||
Health & Public Service | 2,211,889 | 1,969,214 | |||||||||
Products | 3,206,125 | 3,220,015 | |||||||||
Resources | 1,664,235 | 1,734,152 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 | |||||||
TYPE OF WORK | |||||||||||
Consulting | $ | 6,332,572 | $ | 6,377,251 | |||||||
Outsourcing | 5,429,613 | 4,981,707 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 |
Operating Income | |||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
GEOGRAPHIC MARKETS | |||||||||||
North America | $ | 888,809 | $ | 828,407 | |||||||
Europe | 629,430 | 558,951 | |||||||||
Growth Markets | 372,430 | 379,905 | |||||||||
Total Operating Income | $ | 1,890,669 | $ | 1,767,263 |
Revenues | |||||||
Three Months Ended | |||||||
November 30, 2019 | November 30, 2018 | ||||||
OPERATING GROUPS | |||||||
Communications, Media & Technology | $ | 2,245,448 | $ | 2,134,576 | |||
Financial Services | 2,189,913 | 2,120,162 | |||||
Health & Public Service | 1,968,837 | 1,754,490 | |||||
Products | 3,216,705 | 2,928,510 | |||||
Resources | 1,733,533 | 1,651,539 | |||||
Other | 4,522 | 16,269 | |||||
TOTAL REVENUES | $ | 11,358,958 | $ | 10,605,546 | |||
GEOGRAPHIC REGIONS (1) | |||||||
North America | $ | 5,287,812 | $ | 4,856,302 | |||
Europe | 3,789,657 | 3,713,832 | |||||
Growth Markets | 2,281,489 | 2,035,412 | |||||
TOTAL REVENUES | $ | 11,358,958 | $ | 10,605,546 | |||
TYPE OF WORK | |||||||
Consulting | $ | 6,377,251 | $ | 5,967,372 | |||
Outsourcing | 4,981,707 | 4,638,174 | |||||
TOTAL REVENUES | $ | 11,358,958 | $ | 10,605,546 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of | 19 |
Operating Income | |||||||
Three Months Ended | |||||||
November 30, 2019 | November 30, 2018 | ||||||
OPERATING GROUPS | |||||||
Communications, Media & Technology | $ | 391,157 | $ | 387,021 | |||
Financial Services | 316,232 | 360,848 | |||||
Health & Public Service | 251,992 | 197,435 | |||||
Products | 521,978 | 437,585 | |||||
Resources | 285,904 | 246,123 | |||||
TOTAL OPERATING INCOME | $ | 1,767,263 | $ | 1,629,012 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 |
Three Months Ended | Percent Increase (Decrease) U.S. Dollars | Percent Increase (Decrease) Local Currency | Percent of Revenues for the Three Months Ended | ||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | November 30, 2020 | November 30, 2019 | November 30, 2020 | November 30, 2019 | |||||||||||||||||||||||||||||||
GEOGRAPHIC MARKETS | |||||||||||||||||||||||||||||||||||
North America | $ | 5,481 | $ | 5,288 | 4 | % | 4 | % | 47 | % | 47 | % | |||||||||||||||||||||||
Europe | 3,967 | 3,790 | 5 | (1) | 34 | 33 | |||||||||||||||||||||||||||||
Growth Markets | 2,314 | 2,281 | 1 | 3 | 20 | 20 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % | |||||||||||||||||||||||
INDUSTRY GROUPS (1) | |||||||||||||||||||||||||||||||||||
Communications, Media & Technology | $ | 2,334 | $ | 2,245 | 4 | % | 3 | 20 | % | 20 | % | ||||||||||||||||||||||||
Financial Services | 2,346 | 2,190 | 7 | 5 | 20 | 19 | |||||||||||||||||||||||||||||
Health & Public Service | 2,212 | 1,969 | 12 | 11 | 19 | 17 | |||||||||||||||||||||||||||||
Products | 3,206 | 3,220 | — | (3) | 27 | 28 | |||||||||||||||||||||||||||||
Resources | 1,664 | 1,734 | (4) | (5) | 14 | 15 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % | |||||||||||||||||||||||
TYPE OF WORK | |||||||||||||||||||||||||||||||||||
Consulting | $ | 6,333 | $ | 6,377 | (1) | % | (2) | % | 54 | % | 56 | % | |||||||||||||||||||||||
Outsourcing | 5,430 | 4,982 | 9 | 8 | 46 | 44 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % |
Three Months Ended | Percent Increase U.S. Dollars | Percent Increase Local Currency | Percent of Revenues for the Three Months Ended | ||||||||||||||||
November 30, 2019 | November 30, 2018 | November 30, 2019 | November 30, 2018 | ||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
OPERATING GROUPS | |||||||||||||||||||
Communications, Media & Technology | $ | 2,245 | $ | 2,135 | 5 | % | 7 | % | 20 | % | 20 | % | |||||||
Financial Services | 2,190 | 2,120 | 3 | 6 | 19 | 20 | |||||||||||||
Health & Public Service | 1,969 | 1,754 | 12 | 13 | 18 | 16 | |||||||||||||
Products | 3,217 | 2,929 | 10 | 12 | 28 | 28 | |||||||||||||
Resources | 1,734 | 1,652 | 5 | 7 | 15 | 16 | |||||||||||||
Other | 5 | 16 | n/m | n/m | — | — | |||||||||||||
TOTAL REVENUES | $ | 11,359 | $ | 10,606 | 7 | % | 9 | % | 100 | % | 100 | % | |||||||
GEOGRAPHIC REGIONS (1) | |||||||||||||||||||
North America | $ | 5,288 | $ | 4,856 | 9 | % | 9 | % | 47 | % | 46 | % | |||||||
Europe | 3,790 | 3,714 | 2 | 7 | 33 | 35 | |||||||||||||
Growth Markets | 2,281 | 2,035 | 12 | 13 | 20 | 19 | |||||||||||||
TOTAL REVENUES | $ | 11,359 | $ | 10,606 | 7 | % | 9 | % | 100 | % | 100 | % | |||||||
TYPE OF WORK | |||||||||||||||||||
Consulting | $ | 6,377 | $ | 5,967 | 7 | % | 9 | % | 56 | % | 56 | % | |||||||
Outsourcing | 4,982 | 4,638 | 7 | 9 | 44 | 44 | |||||||||||||
TOTAL REVENUES | $ | 11,359 | $ | 10,606 | 7 | % | 9 | % | 100 | % | 100 | % |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 |
Three Months Ended | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | November 30, 2020 | November 30, 2019 | Increase (Decrease) | ||||||||||||||||||||||||||
Operating Expenses | $ | 9,872 | 83.9 | % | $ | 9,592 | 84.4 | % | $ | 280 | |||||||||||||||||||
Cost of services | 7,864 | 66.9 | 7,711 | 67.9 | 153 | ||||||||||||||||||||||||
Sales and marketing | 1,227 | 10.4 | 1,191 | 10.5 | 36 | ||||||||||||||||||||||||
General and administrative costs | 780 | 6.6 | 689 | 6.1 | 91 |
Three Months Ended | |||||||||||||||||||||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Operating Income | Operating Margin | Operating Income | Operating Margin | Increase (Decrease) | ||||||||||||||||||||||||
North America | $ | 889 | 16 | % | $ | 828 | 16 | % | $ | 60 | |||||||||||||||||||
Europe | 629 | 16 | 559 | 15 | 70 | ||||||||||||||||||||||||
Growth Markets | 372 | 16 | 380 | 17 | (7) | ||||||||||||||||||||||||
Total | $ | 1,891 | 16.1 | % | $ | 1,767 | 15.6 | % | $ | 123 |
Three Months Ended | |||||||||||||||||
November 30, 2019 | November 30, 2018 | ||||||||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | Increase (Decrease) | |||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||
Communications, Media & Technology | $ | 391 | 17 | % | $ | 387 | 18 | % | $ | 4 | |||||||
Financial Services | 316 | 14 | 361 | 17 | (45 | ) | |||||||||||
Health & Public Service | 252 | 13 | 197 | 11 | 55 | ||||||||||||
Products | 522 | 16 | 438 | 15 | 84 | ||||||||||||
Resources | 286 | 16 | 246 | 15 | 40 | ||||||||||||
TOTAL | $ | 1,767 | 15.6 | % | $ | 1,629 | 15.4 | % | $ | 138 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 |
Earnings Per Share | |||||
Q1 FY20 As Reported | $ | 2.09 | |||
Higher revenue and operating results | 0.14 | ||||
Higher gains on an investment, net of tax | 0.07 | ||||
Lower share count | 0.01 | ||||
Lower effective tax rate | 0.01 | ||||
Q1 FY21 As Reported | $ | 2.32 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 |
Three Months Ended | |||||||||||
November 30, 2019 | November 30, 2018 | Change | |||||||||
(in millions of U.S. dollars) | |||||||||||
Net cash provided by (used in): | |||||||||||
Operating activities | $ | 787 | $ | 1,028 | $ | (241 | ) | ||||
Investing activities | (166 | ) | (273 | ) | 107 | ||||||
Financing activities | (948 | ) | (1,462 | ) | 514 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 11 | 10 | 1 | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | (316 | ) | $ | (698 | ) | $ | 381 |
Three Months Ended | |||||||||||||||||
(in millions of U.S. dollars) | November 30, 2020 | November 30, 2019 | Change | ||||||||||||||
Net cash provided by (used in): | |||||||||||||||||
Operating activities | $ | 1,603 | $ | 787 | $ | 816 | |||||||||||
Investing activities | (446) | (166) | (281) | ||||||||||||||
Financing activities | (999) | (948) | (51) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 22 | 11 | 11 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 179 | $ | (316) | $ | 495 |
(in millions of U.S. dollars) | Facility Amount | Borrowings Under Facilities | |||||||||
Syndicated loan facility | $ | 1,000 | $ | — | |||||||
364-day syndicated loan facility | 1,000 | — | |||||||||
Separate, uncommitted, unsecured multicurrency revolving credit facilities | 1,060 | — | |||||||||
Local guaranteed and non-guaranteed lines of credit | 248 | — | |||||||||
Total | $ | 3,308 | $ | — |
Facility Amount | Borrowings Under Facilities | ||||||
(in millions of U.S. dollars) | |||||||
Syndicated loan facility | $ | 1,000 | $ | — | |||
Separate, uncommitted, unsecured multicurrency revolving credit facilities | 803 | — | |||||
Local guaranteed and non-guaranteed lines of credit | 217 | — | |||||
Total | $ | 2,020 | $ | — |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27 |
Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | ||||||||||||||||||||||
(in millions of U.S. dollars, except share amounts) | Shares | Amount | Shares | Amount | |||||||||||||||||||
Open-market share purchases (1) | 2,865,941 | $ | 661 | — | $ | — | |||||||||||||||||
Other share purchase programs | — | — | 2,130 | — | |||||||||||||||||||
Other purchases (2) | 475,289 | 108 | — | — | |||||||||||||||||||
Total | 3,341,230 | $ | 768 | 2,130 | $ | — |
Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | ||||||||||||
Shares | Amount | Shares | Amount | ||||||||||
(in millions of U.S. dollars, except share amounts) | |||||||||||||
Open-market share purchases (1) | 3,293,069 | $ | 626 | — | $ | — | |||||||
Other share purchase programs | — | — | 23,715 | 5 | |||||||||
Other purchases (2) | 528,311 | 99 | — | — | |||||||||
Total | 3,821,380 | $ | 725 | 23,715 | $ | 5 |
ACCENTURE FORM 10-Q | Item 3. Quantitative and Qualitative Disclosures About Market Risk | 28 |
ACCENTURE FORM 10-Q | Part II — Other Information | 29 |
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | ||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
September 1, 2020 — September 30, 2020 | 880,210 | $ | 232.11 | 846,255 | $ | 6,119 | ||||||||||||||||||||
October 1, 2020 — October 31, 2020 | 1,567,525 | 225.71 | 1,247,554 | 5,838 | ||||||||||||||||||||||
November 1, 2020 — November 30, 2020 | 893,495 | 235.36 | 772,132 | 5,654 | ||||||||||||||||||||||
Total (4) | 3,341,230 | $ | 229.97 | 2,865,941 |
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | ||||||||||
(in millions of U.S. dollars) | ||||||||||||||
September 1, 2019 — September 30, 2019 | 913,483 | $ | 194.10 | 874,734 | $ | 3,504 | ||||||||
October 1, 2019 — October 31, 2019 | 1,829,298 | $ | 185.69 | 1,453,201 | $ | 3,230 | ||||||||
November 1, 2019 — November 30, 2019 | 1,078,599 | $ | 192.49 | 965,134 | $ | 3,044 | ||||||||
Total (4) | 3,821,380 | $ | 189.62 | 3,293,069 |
ACCENTURE FORM 10-Q | Part II — Other Information | 30 |
Exhibit Number | Exhibit | |||||||
3.1 | Amended and Restated Memorandum and Articles of Association of Accenture plc (incorporated by reference to Exhibit 3.1 to Accenture plc’s 8-K filed on February 7, 2018) | |||||||
10.2 | ||||||||
Form of Fiscal 2019 Key Executive Performance-Based Award Restricted Share Unit Agreement | ||||||||
Form of Fiscal 2020 Key Executive Performance-Based Award Restricted Share Unit Agreement in France (filed herewith) | ||||||||
10.5 | Form of Fiscal 2020 Accenture Leadership Performance Equity Award Restricted Share Unit Agreement in France (filed herewith) | |||||||
10.6 | Form of Next Generation Leadership Performance-Based Award Restricted Share Unit Agreement in France (filed herewith) | |||||||
31.1 | Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |||||||
31.2 | Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |||||||
32.1 | Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | |||||||
32.2 | Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) | |||||||
101 | The following financial information from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended November 30, | |||||||
104 | The cover page from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended November 30, | |||||||
ACCENTURE FORM 10-Q | Signatures | 31 |
ACCENTURE PLC | ||||||||
By: | ||||||||
/s/ KC McClure | ||||||||
Name: | KC McClure | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Financial Officer and Authorized Signatory) |