UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

~~____________________~~

FORM 10-Q



☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	~~For the quarterly period ended~~	~~May 31, 2020~~

ORFor the quarterly period endedNovember 30, 2020



☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

Commission File Number: 001-34448

Accenture plc

(Exact name of registrant as specified in its charter)



Ireland			98-0627530
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1 Grand Canal Square,,

Grand Canal Harbour,,

Dublin2,, Ireland

(Address of principal executive offices)

(~~353) (~~1) (353) (1) 646-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesþ ☑ No ¨☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yesþ ☑ No ¨☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ☑

The number of shares of the registrant’s Class A ordinary shares, par value $0.0000225 per share, outstanding as of ~~June 11,~~December 7, 2020 was ~~663,704,786~~661,135,130 (which number includes ~~27,508,152~~26,889,663 issued shares held by the registrant). The number of shares of the registrant’s Class X ordinary shares, par value $0.0000225 per share, outstanding as of ~~June 11,~~December 7, 2020 was ~~585,059.~~526,879.

Table of Contents

~~ACCENTURE PLC~~

~~INDEX~~




		Page
Part I.	Financial Information	3
Item 1.	Financial Statements	3
	Consolidated Balance Sheets as of ~~May 31,~~November 30 , 2020 (Unaudited) and August 31, ~~2019~~ 2020	3
	Consolidated Income Statements (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30 , 2020 and 2019	4
	Consolidated Statements of Comprehensive Income (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30 , 2020 and 2019	5
	Consolidated Shareholders’ Equity Statement (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30 , 2020 and 2019	6
	Consolidated Cash Flows Statements (Unaudited) for the ~~nine~~three months ended ~~May 31,~~November 30 , 2020 and 2019	108
	Notes to Consolidated Financial Statements (Unaudited)	119
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2419
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3728
Item 4.	Controls and Procedures	3728
Part II.	Other Information	3829
Item 1.	Legal Proceedings	3829
Item 1A.	Risk Factors	3829
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3929
Item 3.	Defaults Upon Senior Securities	4029
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	30
~~Item 4. Mine Safety Disclosures~~Signatures		4031


~~Item 5. Other Information~~Table of Contents			40Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
~~Item 6. Exhibits~~ACCENTURE FORM 10-Q		40
~~Signatures~~	41 3

~~Table of Contents~~

~~PART~~Part I — ~~FINANCIAL INFORMATION~~Financial Information

~~ITEM 1. FINANCIAL STATEMENTS~~

~~ACCENTURE PLC~~

~~CONSOLIDATED BALANCE SHEETS~~

~~May 31,~~Item 1. FinancialStatements

Consolidated Balance Sheets

November 30, 2020 and August 31, ~~2019~~2020

~~(In thousands of U.S. dollars, except share and per share amounts)~~

May 31,
2020 August 31,
2019
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 6,442,261
$ 6,126,853
Short-term investments 3,676
3,313
Receivables and contract assets 8,345,601
8,095,071
Other current assets 1,354,698
1,225,364
Total current assets 16,146,236
15,450,601
NON-CURRENT ASSETS:
Contract assets 52,701
71,002
Investments 270,984
240,313
Property and equipment, net 1,445,183
1,391,166
Lease assets 3,222,787
—
Goodwill 7,334,594
6,205,550
Deferred contract costs 704,282
681,492
Deferred tax assets 4,242,528
4,349,464
Other non-current assets 1,638,024
1,400,292
Total non-current assets 18,911,083
14,339,279
TOTAL ASSETS $ 35,057,319
$ 29,789,880
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings $ 8,697
$ 6,411
Accounts payable 1,405,977
1,646,641
Deferred revenues 3,536,521
3,188,835
Accrued payroll and related benefits 4,426,829
4,890,542
Income taxes payable 443,881
378,017
Lease liabilities 738,642
—
Accrued consumption taxes 663,697
446,699
Other accrued liabilities 604,037
504,751
Total current liabilities 11,828,281
11,061,896
NON-CURRENT LIABILITIES:
Long-term debt 60,342
16,247
Deferred revenues 638,821
565,224
Retirement obligation 1,820,410
1,765,914
Deferred tax liabilities 208,146
133,232
Income taxes payable 907,590
892,688
Lease liabilities 2,704,540
—
Other non-current liabilities 405,544
526,988
Total non-current liabilities 6,745,393
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 May 31, 2020 and August 31, 2019 57
57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 663,533,025 and 654,739,267 shares issued as of May 31, 2020 and August 31, 2019, respectively 15
15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 585,059 and 609,404 shares issued and outstanding as of May 31, 2020 and August 31, 2019, respectively —
—
Restricted share units 1,337,761
1,411,903
Additional paid-in capital 7,190,179
5,804,448
Treasury shares, at cost: Ordinary, 40,000 shares as of May 31, 2020 and August 31, 2019; Class A ordinary, 27,565,988 and 18,964,863 shares as of May 31, 2020 and August 31, 2019, respectively (3,085,444 ) (1,388,376 )
Retained earnings 12,565,857
10,421,538
Accumulated other comprehensive loss (1,993,819 ) (1,840,577 )
Total Accenture plc shareholders’ equity 16,014,606
14,409,008
Noncontrolling interests 469,039
418,683
Total shareholders’ equity 16,483,645
14,827,691
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 35,057,319
$ 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

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

~~Table of Contents~~


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE FORM 10-Q		4

~~ACCENTURE PLC~~Consolidated Income Statements

~~CONSOLIDATED INCOME STATEMENTS~~

For the Three ~~and Nine~~ Months Ended ~~May 31,~~November 30, 2020 and 2019

~~(In thousands of U.S. dollars, except share and per share amounts)~~

(Unaudited)

Three Months Ended Nine Months Ended
May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019
REVENUES:
Revenues $ 10,991,305
$ 11,099,688
$ 33,491,768
$ 32,159,363
OPERATING EXPENSES:
Cost of services 7,462,617
7,571,390
22,956,150
22,279,291
Sales and marketing 1,118,204
1,184,164
3,471,980
3,274,216
General and administrative costs 697,751
626,191
2,094,697
1,872,275
Total operating expenses 9,278,572
9,381,745
28,522,827
27,425,782
OPERATING INCOME 1,712,733
1,717,943
4,968,941
4,733,581
Interest income 12,671
21,402
61,476
60,114
Interest expense (4,961 ) (5,348 ) (19,002 ) (15,472 )
Other income (expense), net (39,670 ) (29,690 ) (20,439 ) (87,178 )
INCOME BEFORE INCOME TAXES 1,680,773
1,704,307
4,990,976
4,691,045
Income tax expense 428,134
435,658
1,111,087
990,352
NET INCOME 1,252,639
1,268,649
3,879,889
3,700,693
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1,518 ) (1,676 ) (4,791 ) (5,213 )
Net income attributable to noncontrolling interests – other (22,919 ) (17,457 ) (55,188 ) (46,795 )
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC $ 1,228,202
$ 1,249,516
$ 3,819,910
$ 3,648,685
Weighted average Class A ordinary shares:
Basic 636,146,240
637,831,341
636,445,172
638,439,707
Diluted 645,607,914
649,297,717
648,025,669
650,144,931
Earnings per Class A ordinary share:
Basic $ 1.93
$ 1.96
$ 6.00
$ 5.72
Diluted $ 1.90
$ 1.93
$ 5.90
$ 5.62
Cash dividends per share $ 0.80
$ 1.46
$ 2.40
$ 2.92


	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

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

~~Table of Contents~~


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q		5

~~ACCENTURE PLC~~Consolidated Statements Of Comprehensive Income

~~CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

For the Three ~~and Nine~~ Months Ended ~~May 31,~~November 30, 2020 and 2019

~~(In thousands of U.S. dollars)~~

(Unaudited)

Three Months Ended Nine Months Ended
May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019
NET INCOME $ 1,252,639
$ 1,268,649
$ 3,879,889
$ 3,700,693
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation (100,750 ) (102,620 ) (110,468 ) (69,592 )
Defined benefit plans 10,704
5,890
29,261
32,881
Cash flow hedges (101,516 ) 96,382
(72,035 ) 148,036
Investments —
(1,148 ) —
(1,663 )
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC (191,562 ) (1,496 ) (153,242 ) 109,662
Other comprehensive income (loss) attributable to noncontrolling interests (2,285 ) (4,188 ) (2,262 ) (4,859 )
COMPREHENSIVE INCOME $ 1,058,792
$ 1,262,965
$ 3,724,385
$ 3,805,496

COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC $ 1,036,640
$ 1,248,020
$ 3,666,668
$ 3,758,347
Comprehensive income attributable to noncontrolling interests 22,152
14,945
57,717
47,149
COMPREHENSIVE INCOME $ 1,058,792
$ 1,262,965
$ 3,724,385
$ 3,805,496


	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

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

~~Table of Contents~~


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q		6

~~ACCENTURE PLC~~Consolidated Shareholders’ Equity Statement

~~CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT~~

For the Three Months Ended ~~May 31,~~November 30, 2020

~~(In thousands of U.S. dollars and share amounts)~~

(Unaudited)

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 February 29, 2020 $ 57
40
$ 15
661,742
$ —
588
$ 1,095,560
$ 6,884,963
$ (2,571,256 ) (24,551 ) $ 11,867,507
$ (1,802,257 ) $ 15,474,589
$ 446,217
$ 15,920,806
Net income 1,228,202
1,228,202
24,437
1,252,639
Other comprehensive income (loss) (191,562 ) (191,562 ) (2,285 ) (193,847 )
Purchases of Class A shares 661
(626,116 ) (3,672 ) (625,455 ) (661 ) (626,116 )
Share-based compensation expense 248,055
42,811
290,866
290,866
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (3 ) (572 ) (572 ) (572 )
Issuances of Class A shares for employee share programs 1,791
(24,614 ) 264,298
111,928
617
(2,809 ) 348,803
362
349,165
Dividends 18,760
(527,043 ) (508,283 ) (630 ) (508,913 )
Other, net (1,982 ) (1,982 ) 1,599
(383 )
Balance as of May 31, 2020 $ 57
40
$ 15
663,533
$ —
585
$ 1,337,761
$ 7,190,179
$ (3,085,444 ) (27,606 ) $ 12,565,857
$ (1,993,819 ) $ 16,014,606
$ 469,039
$ 16,483,645


	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

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

~~Table of Contents~~


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q		7

~~ACCENTURE PLC~~Consolidated Shareholders’ Equity Statement — (continued)

~~CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT~~

For the Three Months Ended ~~May 31,~~November 30, 2019

~~(In thousands of U.S. dollars and share amounts)~~

(Unaudited)

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 February 28, 2019 $ 57
40
$ 15
670,313
$ —
651
$ 954,613
$ 5,783,062
$ (3,357,665 ) (32,439 ) $ 11,421,964
$ (1,465,013 ) $ 13,337,033
$ 391,512
$ 13,728,545
Net income 1,249,516
1,249,516
19,133
1,268,649
Other comprehensive income (loss) (1,496 ) (1,496 ) (4,188 ) (5,684 )
Purchases of Class A shares 568
(485,625 ) (2,792 ) (485,057 ) (568 ) (485,625 )
Share-based compensation expense 226,158
37,516
263,674
263,674
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (14 ) (2,829 ) (2,829 )

(2,829 )
Issuances of Class A shares for employee share programs 1,523
(16,437 ) 242,228
82,280
551
(249 ) 307,822
355
308,177
Dividends
31,649

(961,914 ) (930,265 ) (1,250 ) (931,515 )
Other, net

(1,074 ) (1,074 ) 640
(434 )
Balance as of May 31, 2019 $ 57
40
$ 15
671,836
$ —
637
$ 1,195,983
$ 6,059,471
$ (3,761,010 ) (34,680 ) $ 11,709,317
$ (1,466,509 ) $ 13,737,324
$ 405,634
$ 14,142,958


	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

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


Table of Contents	Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q		8

Consolidated Cash Flows Statements

~~ACCENTURE PLC~~

~~CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT~~

For the ~~Nine~~Three Months Ended ~~May 31,~~November 30, 2020

~~(In thousands of U.S. dollars~~ and ~~share amounts)~~2019

(Unaudited)

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 3,819,910
3,819,910
59,979
3,879,889
Other comprehensive income (loss) (153,242 ) (153,242 ) (2,262 ) (155,504 )
Purchases of Class A shares 2,527
(2,318,768 ) (12,176 ) (2,316,241 ) (2,527 ) (2,318,768 )
Share-based compensation expense 858,578
79,522
938,100
938,100
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (24 ) (7,187 ) (7,187 ) (7,187 )
Issuances of Class A shares for employee share programs 8,794
(989,782 ) 1,308,659
621,700
3,575
(91,917 ) 848,660
905
849,565
Dividends 57,062
(1,583,674 ) (1,526,612 ) (1,920 ) (1,528,532 )
Other, net 2,210

2,210
(3,819 ) (1,609 )
Balance as of May 31, 2020 $ 57
40
$ 15
663,533
$ —
585
$ 1,337,761
$ 7,190,179
$ (3,085,444 ) (27,606 ) $ 12,565,857
$ (1,993,819 ) $ 16,014,606
$ 469,039
$ 16,483,645


	2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,522,057	$	1,375,168
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	468,200		399,458
Share-based compensation expense	311,321		274,929


Deferred tax expense (benefit)	(19,096)		36,591
Other, net	(103,806)		(120,927)
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(594,475)		(436,872)
Other current and non-current assets	(18,129)		(101,096)
Accounts payable	148,495		(61,929)
Deferred revenues, current and non-current	(151,356)		(185,313)
Accrued payroll and related benefits	48,385		(261,592)
Income taxes payable, current and non-current	34,755		84,840
Other current and non-current liabilities	(43,506)		(216,346)
Net cash provided by (used in) operating activities	1,602,845		786,911
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment	(93,115)		(95,063)
Purchases of businesses and investments, net of cash acquired	(503,843)		(109,848)
Proceeds from sales of businesses and investments	149,002		39,200

Other investing, net	1,549		(182)
Net cash provided by (used in) investing activities	(446,407)		(165,893)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	338,891		300,400
Purchases of shares	(768,895)		(729,211)
Proceeds from (repayments of) long-term debt, net	(82)		(570)
Cash dividends paid	(558,052)		(508,381)
Other, net	(11,313)		(10,462)
Net cash provided by (used in) financing activities	(999,451)		(948,224)
Effect of exchange rate changes on cash and cash equivalents	21,686		10,890
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	178,673		(316,316)
CASH AND CASH EQUIVALENTS, beginning of period	8,415,330		6,126,853
CASH AND CASH EQUIVALENTS, end of period	$	8,594,003	$	5,810,537
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	344,628	$	292,787

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

~~Table of Contents~~

~~ACCENTURE PLC~~

~~CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT~~

~~For the Nine Months Ended May 31, 2019~~

~~(In thousands of U.S. dollars and share amounts)~~

~~(Unaudited)~~

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 3,648,685
3,648,685
52,008
3,700,693
Other comprehensive income (loss) 109,662
109,662
(4,859 ) 104,803
Purchases of Class A shares 2,841
(2,268,189 ) (14,316 ) (2,265,348 ) (2,841 ) (2,268,189 )
Share-based compensation expense 787,633
69,319
856,952
856,952
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (19 ) (16,399 ) (16,399 ) (16,399 )
Issuances of Class A shares for employee share programs 8,508
(884,308 ) 1,134,959
624,127
3,969
(121,250 ) 753,528
926
754,454
Dividends 58,035
(1,919,760 ) (1,861,725 ) (2,628 ) (1,864,353 )
Other, net (2,013 ) 14,411
12,398
35
12,433
Balance as of May 31, 2019 $ 57
40
$ 15
671,836
$ —
637
$ 1,195,983
$ 6,059,471
$ (3,761,010 ) (34,680 ) $ 11,709,317
$ (1,466,509 ) $ 13,737,324
$ 405,634
$ 14,142,958

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

~~Table of Contents~~

~~ACCENTURE PLC~~

~~CONSOLIDATED CASH FLOWS STATEMENTS~~


Table of Contents	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

~~For the Nine Months Ended May 31, 2020 and 2019~~

~~(In thousands of U.S. dollars)~~

~~(Unaudited)~~1. Basis Of Presentation

May 31, 2020 May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,879,889
$ 3,700,693
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other 1,286,234
652,592
Share-based compensation expense 938,100
856,952
Deferred tax expense (benefit) 128,245
(47,130 )
Other, net (142,943 ) (85,725 )
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current (96,365 ) (493,733 )
Other current and non-current assets (483,825 ) (373,142 )
Accounts payable (245,718 ) 94,144
Deferred revenues, current and non-current 263,274
342,633
Accrued payroll and related benefits (475,183 ) (67,970 )
Income taxes payable, current and non-current 74,338
(52,518 )
Other current and non-current liabilities (67,028 ) (16,096 )
Net cash provided by (used in) operating activities 5,059,018
4,510,700
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (410,414 ) (357,749 )
Purchases of businesses and investments, net of cash acquired (1,326,366 ) (1,055,915 )
Proceeds from sales of businesses and investments 84,886
27,915
Other investing, net 3,717
6,041
Net cash provided by (used in) investing activities (1,648,177 ) (1,379,708 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares 849,565
754,453
Purchases of shares (2,325,955 ) (2,284,587 )
Proceeds from (repayments of) long-term debt, net (207 ) (983 )
Cash dividends paid (1,528,532 ) (1,864,353 )
Other, net (30,421 ) (20,683 )
Net cash provided by (used in) financing activities (3,035,550 ) (3,416,153 )
Effect of exchange rate changes on cash and cash equivalents (59,883 ) (7,041 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 315,408
(292,202 )
CASH AND CASH EQUIVALENTS, beginning of period
6,126,853
5,061,360
CASH AND CASH EQUIVALENTS, end of period
$ 6,442,261
$ 4,769,158
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net $ 993,848
$ 1,052,517

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

~~Table of Contents~~

~~ACCENTURE PLC~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)~~

~~(Unaudited)~~

1. ~~BASIS OF PRESENTATION~~

The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, ~~2019~~2020 included in our Annual Report on Form 10-K filed with the SEC on October ~~29, 2019.~~22, 2020.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, ~~2020.~~2021.

Effective March 1, 2020, we began managing our business under a new growth model through our three geographic markets, North America, Europe and Growth Markets, which became our reportable segments in the third quarter of fiscal 2020. Prior to this change, our reportable segments were our five operating groups, Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. See Note 6 (Goodwill and Intangible Assets) and Note 12 (Segment Reporting) to these Consolidated Financial Statements for further details regarding the change in our reportable segments.

Allowance for Credit Losses - Client Receivables and Contract Assets

We record client receivables and contract assets at their face amounts less an allowance for credit losses. The allowance represents our estimate of expected credit losses based on historical experience, current economic conditions and certain forward-looking information. As of ~~May 31,~~November 30, 2020 and August 31, ~~2019,~~2020, the total allowance for credit losses recorded for client receivables and contract assets was ~~$37,468~~$38,315 and ~~$45,538,~~$40,277, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

Concentrations of Credit Risk

Our financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments and client receivables, are exposed to concentrations of credit risk. We place our cash and cash equivalents and foreign exchange instruments with highly-rated financial institutions, limit the amount of credit exposure with any one financial institution and conduct ongoing evaluations of the credit worthiness of the financial institutions with which we do business. Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are limited.

Investments

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).

Our non-current investments are as follows:


	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

For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of other income (expense), net. Our equity method investments consist primarily of an investment in Duck Creek Technologies. As of November 30, 2020 and August 31, 2020, the carrying amount of our investment was $201,810 and $230,219, and the estimated fair value of our approximately 19% and 22% ownership was $850,825 and $956,308, respectively.


Table of Contents	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

We account for the investment under the equity method because we have the ability to influence operations through the combination of our voting power and through other factors, such as representation on the board and our business relationship.

Depreciation and Amortization

~~Depreciation expense was $119,148~~As of November 30, 2020 and ~~$338,830 for the~~ ~~three and nine months ended May~~August 31, 2020,~~, respectively, and $109,398 and $322,746 for the~~ ~~three and nine months ended May 31, 2019, respectively. As of May 31, 2020~~ ~~and~~ ~~August 31, 2019,~~ total accumulated depreciation was ~~$2,238,805~~$2,414,951 and ~~$1,956,029,~~$2,313,731, respectively. ~~Deferred~~See table below for summary of depreciation on fixed assets, deferred transition amortization, ~~expense was $71,278~~intangible assets amortization and ~~$217,946~~operating lease cost for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020~~, respectively,~~ and ~~$67,225 and $204,313 for the~~ ~~three and nine months ended May 31,~~ 2019,, respectively. ~~See Note 6 (Goodwill and Intangible Assets) to these Consolidated Financial Statements for intangible asset amortization balances.~~

~~Table of Contents~~

~~ACCENTURE PLC~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)~~

~~(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)~~

~~(Unaudited)~~


	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

Recently Adopted Accounting Pronouncements

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. ~~2016-02 and related updates~~2016-13 (“Topic ~~842”~~326”)

On September 1, ~~2019,~~2020, we adopted FASB ASU No. ~~2016-02, Leases,~~2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends guidance on recognition and measurement of credit losses and related ~~updates (“Topic 842”) using~~disclosures. The amendments replace the ~~effective date method. Prior period amounts were not adjusted. The primary impact of adoption is the requirement~~existing incurred loss impairment model with a methodology to measure and recognize lifetime expected credit losses for ~~lessees to recognize~~all in-scope financial assets, including accounts receivable and liabilities on the balance sheet for the rights and obligations created by both operating and finance leases. Enhanced quantitative and qualitative disclosures about leasing arrangements are also required. We elected the package of practical expedients which does not require reassessment of prior conclusions related to identifying leases, lease classification or initial direct costs. We also elected the practical expedient to combine lease and nonlease components, accounting for the combined components as a single lease component, for our office real estate and automobile leases. The standard did not have a material impact on our Consolidated Income Statement.

~~The impact of adopting Topic 842 on our Consolidated Balance Sheets was as follows:~~

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

~~See Note 7 (Leases) to these Consolidated Financial Statements for further details.~~

~~FASB ASU No. 2018-15~~ (~~“Subtopic 350-40”)~~

On September 1, 2019, we prospectively adopted FASB ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 clarifies and aligns the accounting and capitalization of implementation costs in cloud computing arrangements that are service arrangements with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC No. 350-40. Implementation costs that are currently capitalized in software licensing arrangements (e.g. costs to configure the software) will be capitalized in cloud computing arrangements, and costs expensed in software license arrangements (e.g. data conversion, training, and business process re-engineering) will be expensed in cloud computing arrangements.contract assets. The adoption did not have ~~a material~~an impact on our Consolidated Financial Statements.

~~Table of Contents~~

~~ACCENTURE PLC~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)~~

~~(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)~~

~~(Unaudited)~~

2. ~~REVENUES~~


Table of Contents	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

2. Revenues

Disaggregation of Revenue

See Note 1211 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $19 billion and $20 billion as of ~~May 31,~~November 30, 2020 and August 31, ~~2019,~~2020, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately ~~36%~~62% of our remaining performance obligations as of ~~May 31,~~November 30, 2020 as revenue in fiscal ~~2020,~~2021, an additional ~~36%~~19% in fiscal ~~2021,~~2022, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 and ~~May 31,~~ 2019, respectively.

Contract Balances

Deferred transition revenues were ~~$638,821~~$668,267 and ~~$563,245~~$690,931 as of ~~May 31,~~November 30, 2020 and August 31, ~~2019,~~2020, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $715,897 and $723,168 as of November 30, 2020 and August 31, 2020, respectively, and are included in Deferred contract costs. Generally, deferred amounts are protected in the event of early termination of the contract and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets. ~~Deferred transition costs were $704,282 and $681,492 as of May 31, 2020 and August 31, 2019, respectively, and are included in Deferred contract costs.~~

The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues):

As of May 31, 2020 As of August 31, 2019
Receivables, net of allowance $ 7,677,366
$ 7,467,338
Contract assets (current) 668,235
627,733
Receivables and contract assets (current) 8,345,601
8,095,071
Contract assets (non-current) 52,701
71,002
Deferred revenues (current) 3,536,521
3,188,835
Deferred revenues (non-current) 638,821
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

Changes in the contract asset and liability balances during the ~~nine~~three months ended ~~May 31,~~November 30, 2020, were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 that were included in Deferred revenues as of ~~February 29, 2020~~ ~~and~~ August 31, ~~2019~~2020 were ~~$1.9 billion and $2.6 billion, respectively.~~$2.0 billion. Revenues recognized during the three ~~and nine~~ months ended ~~May 31,~~November 30, 2019 that were included in Deferred revenues as of ~~February 28,~~August 31, 2019 ~~and September 1, 2018~~ were ~~$1.7 billion and $2.7 billion, respectively.~~

$1.8 billion.

~~Table of Contents~~

~~ACCENTURE PLC~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)~~

~~(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)~~

~~(Unaudited)~~


Table of Contents	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

3. ~~EARNINGS PER SHARE~~Earnings Per Share

Basic and diluted earnings per share ~~were~~are calculated as follows:


	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

(1)Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests - other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares.

Three Months Ended Nine Months Ended
May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019
Basic earnings per share
Net income attributable to Accenture plc $ 1,228,202
$ 1,249,516
$ 3,819,910
$ 3,648,685
Basic weighted average Class A ordinary shares 636,146,240
637,831,341
636,445,172
638,439,707
Basic earnings per share $ 1.93
$ 1.96
$ 6.00
$ 5.72
Diluted earnings per share
Net income attributable to Accenture plc $ 1,228,202
$ 1,249,516
$ 3,819,910
$ 3,648,685
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) 1,518
1,676
4,791
5,213
Net income for diluted earnings per share calculation $ 1,229,720
$ 1,251,192
$ 3,824,701
$ 3,653,898
Basic weighted average Class A ordinary shares 636,146,240
637,831,341
636,445,172
638,439,707
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) 785,993
855,508
797,551
912,175
Diluted effect of employee compensation related to Class A ordinary shares 8,651,386
10,531,355
10,647,446
10,680,792
Diluted effect of share purchase plans related to Class A ordinary shares 24,295
79,513
135,500
112,257
Diluted weighted average Class A ordinary shares 645,607,914
649,297,717
648,025,669
650,144,931
Diluted earnings per share $ 1.90
$ 1.93
$ 5.90
$ 5.62

~~_______________~~


~~(1)~~ Table of Contents	~~Diluted earnings~~Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. The income effect does not take into account “Net income attributable to noncontrolling interests - other,” since those shares are not redeemableamounts or ~~exchangeable for Accenture plc Class A ordinary shares.~~ as otherwise disclosed)
ACCENTURE FORM 10-Q		13

4. Accumulated Other Comprehensive Loss

~~Table of Contents~~

~~ACCENTURE PLC~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)~~

~~(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)~~

~~(Unaudited)~~

4. ~~ACCUMULATED OTHER COMPREHENSIVE LOSS~~

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc:


	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)

(1)Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing, General and administrative costs and non-operating expenses.

(2)As of November 30, 2020, $66,522 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.

Three Months Ended Nine Months Ended
May 31, 2020 May 31, 2019 May 31, 2020 May 31, 2019
Foreign currency translation
    Beginning balance $ (1,217,693 ) $ (1,042,240 ) $ (1,207,975 ) $ (1,075,268 )
             Foreign currency translation (106,621 ) (108,056 ) (115,154 ) (74,444 )
             Income tax benefit (expense) 3,698
1,115
2,477
(246 )
             Portion attributable to noncontrolling interests 2,173
4,321
2,209
5,098
             Foreign currency translation, net of tax (100,750 ) (102,620 ) (110,468 ) (69,592 )
    Ending balance (1,318,443 ) (1,144,860 ) (1,318,443 ) (1,144,860 )

Defined benefit plans
    Beginning balance (653,766 ) (392,293 ) (672,323 ) (419,284 )
             Reclassifications into net periodic pension and
post-retirement expense (1) 13,718
8,389
40,330
39,718
             Income tax benefit (expense) (3,001 ) (2,492 ) (11,033 ) (6,793 )
             Portion attributable to noncontrolling interests (13 ) (7 ) (36 ) (44 )
             Defined benefit plans, net of tax 10,704
5,890
29,261
32,881
    Ending balance (643,062 ) (386,403 ) (643,062 ) (386,403 )

Cash flow hedges
    Beginning balance 68,474
(32,356 ) 38,993
(84,010 )
             Unrealized gain (loss) (109,481 ) 142,416
(32,918 ) 219,441
             Reclassification adjustments into Cost of services (4,547 ) (19,512 ) (43,362 ) (25,772 )
             Income tax benefit (expense) 12,387
(26,395 ) 4,156
(45,436 )
             Portion attributable to noncontrolling interests 125
(127 ) �� 89
(197 )
             Cash flow hedges, net of tax (101,516 ) 96,382
(72,035 ) 148,036
    Ending balance (2) (33,042 ) 64,026
(33,042 ) 64,026

Investments
    Beginning balance 728
1,876
728
2,391
             Unrealized gain (loss) —
(1,454 ) —
(1,970 )
             Income tax benefit (expense) —
305
—
305
             Portion attributable to noncontrolling interests —
1
—
2
             Investments, net of tax —
(1,148 ) —
(1,663 )
    Ending balance 728
728
728
728

Accumulated other comprehensive loss $ (1,993,819 ) $ (1,466,509 ) $ (1,993,819 ) $ (1,466,509 )

~~_______________~~


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

On ~~June 17, 2020~~, we entered into a $1 billion 364-day syndicated loan facility, which expires in June 2021. This facility is in addition to our existing $1 billion syndicated loan facility, which expires in December 2024. No balances were outstanding under either credit facility at any time during ~~fiscal 2020. In the event of a loan drawn against the new facility, the lenders have the option to require us to repay the loan by issuing public debt within 45 days of their request.~~

~~Table of Contents~~

~~ITEM~~Item 2. ~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements and related Notes included elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended August 31, ~~2019~~,2020, and with the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended August 31, ~~2019~~.2020.

We use the terms “Accenture,” “we,” “our” and “us” in this report to refer to Accenture plc and its subsidiaries. All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal ~~2020”~~2021” means the 12-month period that will end on August 31, ~~2020~~.2021. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.

We use the term “in local currency” so that certain financial results may be viewed without the impact of foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of business performance. Financial results “in local currency” are calculated by restating current period activity into U.S. dollars using the comparable prior year period’s foreign currency exchange rates. This approach is used for all results where the functional currency is not the U.S. dollar.

Disclosure Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our operations, results of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to those identified below. For a discussion of risks and actions taken in response to the coronavirus (COVID-19) pandemic, see the “Overview” below and “Our results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.” under ~~Item 1A,~~the heading “Risk ~~Factors.”~~Factors” in our Annual Report on Form 10-K for the year ended August 31, 2020. Many of the following risks, uncertainties and other factors identified below are, and will be, amplified by the COVID-19 pandemic.

•Our results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.

•Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity.

•Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.

•If we are unable to keep our supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected.

•We could face legal, reputational and financial risks if we fail to protect client and/or Accenture data from security incidents or cyberattacks.

•The markets in which we operate are highly competitive, and we might not be able to compete effectively.


•			~~Our results~~Table of ~~operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.~~Contents


•			Our results of operations could be adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity.ACCENTURE FORM 10-Q


•Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations. 20


•	If we are unable to keep our supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected.


•	~~We could face legal, reputational and financial risks if we fail to protect client and/or Accenture data from security breaches or cyberattacks.~~


•	~~The markets in which we operate are highly competitive, and we might not be able to compete effectively.~~


•	Changes in our level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on our effective tax rate, results of operations, cash flows and financial condition.

~~Table of Contents~~

•Our profitability could materially suffer if we are unable to obtain favorable pricing for our services and solutions, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels.


•Changes in our level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on our effective tax rate, results of operations, cash flows and financial condition. •Our ability to attract and retain business and employees may depend on our reputation in the marketplace. •	Our profitability could materially suffer if we are unable to obtain favorable pricing for our services and solutions, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies.


•	~~Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates.~~

As a result of our geographically diverse operations and our growth strategy to continue to expand in our key markets around the world, we are more susceptible to certain risks.


•	~~Our business could be materially adversely affected if we incur legal liability.~~


•	~~Our work with government clients exposes us to additional risks inherent in the government contracting environment.~~


•	~~If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives.~~


•	~~Our ability to attract and retain business and employees may depend on our reputation in the marketplace.~~


•	If we do not successfully manage and develop our relationships with key alliance partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected.


•	~~We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses.~~


•	If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.


•	~~Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.~~


•	~~Changes to accounting standards or in the estimates and assumptions we make in connection with the preparation of our consolidated financial statements could adversely affect our financial results.~~


•	~~Many of our contracts include fees subject to the attainment of targets or specific service levels. This could increase the variability of our revenues and impact our margins.~~


•	~~We might be unable to access additional capital on favorable terms or at all. If we raise equity capital, it may dilute our shareholders’ ownership interest in us.~~


•	We are incorporated in Ireland and a significant portion of our assets is located outside the United States. As a result, it might not be possible for shareholders to enforce civil liability provisions of the federal or state securities laws of the United States. We may also be subject to criticism and negative publicity related to our incorporation in Ireland.


•	~~Irish law differs from the laws in effect in the United States and might afford less protection to shareholders.~~

•Our business could be materially adversely affected if we incur legal liability.

•Our work with government clients exposes us to additional risks inherent in the government contracting environment.

•Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates.

•If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives.

•If we do not successfully manage and develop our relationships with key alliance partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected.

•We might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses.

•If we are unable to protect or enforce our intellectual property rights, or if our services or solutions infringe upon the intellectual property rights of others or we lose our ability to utilize the intellectual property of others, our business could be adversely affected.

•Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.

•Changes to accounting standards or in the estimates and assumptions we make in connection with the preparation of our consolidated financial statements could adversely affect our financial results.

•We might be unable to access additional capital on favorable terms or at all. If we raise equity capital, it may dilute our shareholders’ ownership interest in us.

•We are incorporated in Ireland and Irish law differs from the laws in effect in the United States and might afford less protection to our shareholders. We may also be subject to criticism and negative publicity related to our incorporation in Ireland.

For a more detailed discussion of these factors, see the information ~~under Item 1A, “Risk Factors” in this report and~~ under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, ~~2019.~~2020. Our forward-looking statements speak only as of the date of this report or as of the date they are made, and we undertake no obligation to update any forward-looking statements.

~~Change in Reportable Segments~~

Effective March 1, 2020, we began managing our business under a new growth model through our three geographic markets, North America, Europe and Growth Markets, which became our reportable segments in the third quarter of fiscal 2020. Prior to this change, our reportable segments were our five operating groups, Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. For additional information, see our Form 8-K filed on January 13, 2020.


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Overview

The COVID-19 pandemic has caused a significant loss of life, disrupted businesses and restricted travel worldwide, causing significant economic disruption and uncertainty. This disruption and uncertainty has had and continues to have a significant adverse impact on our business, operations and financial results. For our third quarter ended May 31, 2020, our revenues declined 1% in U.S. dollars and grew 1% in local currency, a significant decrease when compared to the revenue growth experienced in the first half of this fiscal year. The pandemic impacted almost all aspects of our business and forced us to quickly adapt the way we operate. As described below, we took actions to shift the majority of our workforce to a remote working environment to ensure the continuity of our business, including the sales and delivery of services to our clients, and to respond to a rapidly changing demand environment from our clients.

~~During~~As a result of the ~~third quarter,~~COVID-19 pandemic, we enabled approximately 95% of our global workforce to work from home and suspended substantially all business travel. During the quarter, approximately 95% of our people were enabled to work remotely, while a small number of our people providing essential services continued to work from our and our clients’ offices. As governments ease their restrictions, weWe continue to ~~develop~~implement and ~~implement~~evolve our comprehensive plan to return to our ~~offices. As of June 22, 2020, approximately 35% of~~and our clients’ offices ~~were partially open~~where permissible, with our people’s safety and the needs of our clients guiding how we manage our phased transition.

For the first quarter of fiscal 2021, our revenues increased 4% in U.S. dollars and 2% in local currency. While this represented slower growth compared to 9% growth in local currency in the first quarter of fiscal 2020, it was an improvement compared to flat revenue growth for the second half of fiscal 2020. We ~~experienced~~continued to experience reduced demand for our services during the quarter as some clients reprioritized and delayed certain work as a result of the pandemic, particularly in the Travel, ~~Retail,~~ Energy, High Tech, Retail and Industrial industries and primarily for our consulting services. We also experienced increased demand in the Public Service, Software & Platforms, Banking & Capital Markets and Life Sciences industries and from clients across all of our industry groups in connection with their digital transformations, the adoption of cloud technologies and security-related services. In this current market, the level of revenues we achieve is based on our ability to deliver market-leading services while deploying skilled teams of professionals ~~effectively on a remote basis.~~effectively.

For further information on the impact to our results for the ~~third~~first quarter of fiscal ~~2020,~~2021, please see “Summary of Results” below. For a discussion of risks related to the COVID-19 pandemic, see “~~Our~~“Our results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.” under ~~Item 1A,~~the heading “Risk Factors”. in our Annual Report on Form 10-K for the year ended August 31, 2020.

Summary of Results

Revenues for the ~~third~~first quarter of fiscal ~~2020~~ ~~decreased 1%~~2021 increased 4% in U.S. dollars and ~~increased 1%~~2% in local currency compared to the ~~third~~first quarter of fiscal ~~2019~~.2020. This included the impact of a decline in reimbursable travel costs, which reduced revenues approximately 2%. ~~Revenues for the~~ ~~nine months ended May 31, 2020~~ ~~increased 4% in U.S. dollars and 6% in local currency compared to the~~ ~~nine months ended May 31, 2019~~. During the ~~third~~first quarter of fiscal ~~2020~~,2021, revenue growth in local currency was solid in ~~Growth Markets~~North America and modest in ~~North America,~~Growth Markets, partially offset by a slight decline in Europe. We experienced local currency revenue growth that was very strong in Health & Public Service, ~~and flat~~solid in Financial Services and modest in Communications, Media & Technology, partially offset by a ~~modest~~ decline in Resources and ~~slight~~a modest decline in Products. Revenue growth in local currency was ~~solid~~strong in outsourcing, partially offset by a slight decline in consulting during the ~~third~~first quarter of fiscal ~~2020~~.2021. The business environment remained competitive, and the changes in ~~some areas, we experienced~~demand have led to continued pricing ~~pressures.~~pressure, particularly for our consulting services. We use the term “pricing” to mean the contract profitability or margin on the work that we sell.

In our consulting business, revenues for the ~~third~~first quarter of fiscal ~~2020~~2021 decreased 4%1% in U.S. dollars and 2% in local currency compared to the ~~third~~first quarter of fiscal ~~2019~~.2020. This included the impact of a decline in reimbursable travel costs, which reduced consulting revenues approximately 3%. ~~Consulting revenues for the~~ ~~nine months ended May 31, 2020~~ ~~increased 3%~~The decline in ~~U.S. dollars and 5%~~consulting revenue in local currency ~~compared to~~for the ~~nine months ended May 31, 2019. The contraction in our consulting revenue in the~~ ~~third~~first quarter of fiscal ~~2020~~2021 was ~~led~~driven by ~~a decline in Europe and a slight decline~~modest declines in North America and Europe, partially offset by ~~strong~~slight growth in Growth Markets. Our consulting revenue continues to be driven by ~~digital-, cloud-~~helping our clients accelerate their digital transformation, including moving to the cloud, embedding security across the enterprise and ~~security-related services and assisting clients with the adoption of~~adopting new technologies. In addition, clients continue to be focused on initiatives designed to deliver cost savings and operational efficiency, as well as projects to ~~integrate their global operations~~accelerate growth and ~~grow and transform their businesses.~~improve customer experiences.

In our outsourcing business, revenues for the ~~third~~first quarter of fiscal ~~2020~~2021 increased 3%9% in U.S. dollars and 5%8% in local currency compared to the ~~third~~first quarter of fiscal ~~2019~~.2020. Outsourcing ~~revenues for the~~ ~~nine months ended May 31, 2020~~ ~~increased 5% in U.S. dollars and 7%~~revenue in local currency ~~compared to~~for the ~~nine months ended May 31, 2019. Outsourcing revenue growth in local currency in the~~ ~~third~~first quarter of fiscal ~~2020~~2021 was led by very strong growth in North America, ~~solid~~strong growth in ~~Europe~~Growth Markets and modest growth in ~~Growth Markets.~~Europe. We continue to experience growing demand to assist clients with ~~the operation~~application modernization and maintenance, ~~of digital-related services~~cloud enablement and ~~cloud enablement.~~managed security services. In addition, clients continue to be focused on transforming their operations through data and analytics, automation and artificial intelligence to ~~improve effectiveness~~drive productivity and operational cost ~~efficiency.~~savings.

~~Table of Contents~~

As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by currency exchange rate fluctuations. The majority of our revenues are denominated in currencies other than the U.S. dollar, including the Euro, Japanese yen and U.K. pound. There continues to be volatility in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had and could have in the future a material effect on our financial results. If the U.S. dollar weakens against other currencies, resulting in favorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be higher. If the U.S. dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be lower. The U.S. dollar ~~strengthened~~weakened against various currencies during the ~~three and nine months ended May 31, 2020~~first quarter of fiscal 2021 compared to the first quarter of fiscal 2020,


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

~~three and nine months ended May 31, 2019~~
,

resulting in ~~unfavorable~~favorable currency translation and U.S. dollar revenue growth that was approximately 2% ~~lower~~higher than our revenue growth in local currency. Assuming that exchange rates stay within recent ranges for the remainder of fiscal ~~2020~~,2021, we estimate that our full fiscal ~~2020~~2021 revenue growth in U.S. dollars will be approximately ~~1.5% lower in U.S. dollars~~3% higher than our revenue growth in local currency.

The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs. Cost of services is primarily driven by the cost of client-service personnel, which consists mainly of compensation, subcontractor and other personnel costs, and non-payroll costs on outsourcing contracts. Cost of services includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of acquisitions. Sales and marketing costs are driven primarily by: compensation costs for business development activities; marketing- and advertising-related activities; and certain acquisition-related costs. General and administrative costs primarily include costs for non-client-facing personnel, information systems, office space and certain acquisition-related costs.

Utilization for the ~~third~~first quarter of fiscal ~~2020~~2021 was ~~88%~~93%, ~~down~~up from 91% in the ~~third~~first quarter of fiscal ~~2019~~.2020. We hire to meet current and projected future demand. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services and solutions, given that compensation costs are the most significant portion of our operating expenses. Our headcount, the majority of which serve our clients, increased to approximately ~~513,000~~514,000 as of ~~May 31,~~November 30, 2020, compared to approximately ~~482,000~~505,000 as of ~~May 31,~~November 30, 2019. The year-over-year increase in our headcount reflects an overall increase in demand for our services and solutions, as well as headcount added in connection with acquisitions. Attrition, excluding involuntary terminations, for the ~~third~~first quarter of fiscal ~~2020~~2021 was ~~11%~~9%, down from ~~18%~~14% in the ~~third~~first quarter of fiscal ~~2019~~.2020. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as means to keep our supply of skills and resources in balance with changes in client demand. In addition, we adjust compensation in certain skill sets and geographies in order to attract and retain appropriate numbers of qualified employees. For the majority of our personnel, compensation increases become effective December 1st of each fiscal year. We strive to adjust pricing and/or the mix of resources to reduce the impact of compensation increases on our margin. Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to: keep our supply of skills and resources in balance with changes in the types or amounts of services and solutions clients are demanding; recover increases in compensation; deploy our employees globally on a timely basis; manage attrition; and/or effectively assimilate and utilize new employees.

Gross margin (Revenues less Cost of services as a percentage of Revenues) for the ~~third~~first quarter of fiscal ~~2020~~2021 was ~~32.1%~~33.1%, compared with ~~31.8%~~32.1% for the ~~third~~first quarter of fiscal ~~2019. Gross margin for the~~ ~~nine months ended May 31, 2020~~ ~~was 31.5%, compared with 30.7% for the~~ ~~nine months ended May 31, 2019~~.2020. The increase in gross margin for the ~~third~~first quarter ~~and nine months ended May 31, 2020~~of fiscal 2021 was due to lower non-payroll costs, primarily for travel, partially offset by an increase in labor costs as a percentage of revenues compared to the same ~~periods~~period in fiscal ~~2019~~.2020.

Sales and marketing and General and administrative costs as a percentage of revenues were ~~16.5%~~17.1% for the ~~third~~first quarter of fiscal ~~2020~~ ~~and~~2021, compared with 16.6% for the ~~nine months ended May 31, 2020, compared with 16.3% for the~~ ~~third~~first quarter of fiscal ~~2019~~ ~~and 16.0% for the~~ ~~nine months ended May 31, 2019~~.2020. For the ~~third~~first quarter, compared to the same period in fiscal ~~2019~~,2020, Sales and marketing costs as a percentage of revenues decreased 10 basis points and General and administrative costs increased 50 basis points, primarily due to ~~lower selling~~higher labor and ~~other business development costs, primarily for travel. For the nine months ended May 31, 2020 compared to the same period in fiscal 2019, Sales and marketing~~technology costs as a percentage of ~~revenues increased 20 basis points. For the third quarter and~~ ~~nine months ended May 31, 2020, compared to the same periods in~~ ~~fiscal 2019, General and administrative costs as a percentage of revenues increased 70 and 50 basis points, respectively, primarily due to higher technology and facilities costs.~~revenues.

Operating margin (Operating income as a percentage of revenues) for the ~~third~~first quarter of fiscal ~~2020~~2021 was ~~15.6%~~16.1%, compared with ~~15.5%~~15.6% for the ~~third~~first quarter of fiscal ~~2019. Operating margin~~2020.

During the first quarter of fiscal 2021 and 2020, we recorded gains of $120 million and $60 million and related tax expense of $23 million and $10 million, respectively, related to our investment in Duck Creek Technologies. For additional information, see Note 1 (Basis of Presentation) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

The effective tax rate for the ~~nine months ended May 31, 2020~~first quarter of fiscal 2021 was ~~14.8%~~23.4%, compared with ~~14.7%~~23.6% for the ~~nine months ended May 31, 2019~~.first quarter of fiscal 2020. Absent the investment gains and related tax expense, our effective tax rates for the first quarter of fiscal 2021 and 2020 would have been 23.7% and 23.9%, respectively.

Diluted earnings per share were $2.32 for the first quarter of fiscal 2021, compared with $2.09 for the first quarter of fiscal 2020. The $97 million and $50 million gains on an investment, net of taxes, increased diluted earnings per share by $0.15 and $0.08 during the first quarter of fiscal 2021 and 2020, respectively. Excluding the impact of these gains, diluted earnings per share would have been $2.17 and $2.01 for the first quarter of fiscal 2021 and 2020, respectively.

We have presented our effective tax rate and diluted earnings per share excluding the impact of gains related to an investment for the first quarter of fiscal 2021 and 2020, as we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior period.

~~Table of Contents~~

New Bookings

New bookings for the ~~third~~first quarter of fiscal ~~2020~~2021 were ~~$11.0~~$12.9 billion, with consulting bookings of ~~$6.2~~$6.6 billion and outsourcing bookings of ~~$4.8~~$6.3 billion. New bookings for the ~~nine months ended May 31,~~first quarter of fiscal 2020 were ~~$35.6~~$10.3 billion, with consulting bookings of ~~$19.4~~$6.0 billion and outsourcing bookings of ~~$16.2~~$4.3 billion.


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

~~Table of Contents~~

Results of Operations for the Three Months Ended ~~May 31,~~November 30, 2020 Compared to the Three Months Ended ~~May 31,~~November 30, 2019

Revenues by geographic market, industry group and type of work ~~were~~are as follows:


	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
(Decrease)
U.S.
Dollars Percent
Increase
(Decrease)
Local
Currency Percent of Revenues
for the Three Months Ended
May 31, 2020 May 31,
2019 (1) May 31,
2020 May 31,
2019
(in millions of U.S. dollars)
GEOGRAPHIC MARKETS
North America $ 5,239
$ 5,148
2 % 2 % 48 % 46 %
Europe 3,575
3,774
(5 ) (2 ) 32
34
Growth Markets 2,177
2,178
—
5
20
20
TOTAL REVENUES 10,991
11,100
(1 )% 1 % 100 % 100 %
INDUSTRY GROUPS
Communications, Media & Technology $ 2,197
$ 2,253
(2 )% —
20 % 20 %
Financial Services 2,138
2,197
(3 ) —
20
20
Health & Public Service 2,016
1,820
11
12 % 18
16
Products 2,999
3,077
(3 ) (1 ) 27
28
Resources 1,637
1,748
(6 ) (3 ) 15
16
Other 5
5
n/m
n/m
—
—
TOTAL REVENUES $ 10,991
$ 11,100
(1 )% 1 % 100 % 100 %
TYPE OF WORK
Consulting $ 5,998
$ 6,237
(4 )% (2 )% 55 % 56 %
Outsourcing 4,993
4,863
3
5
45
44
TOTAL REVENUES $ 10,991
$ 11,100
(1 )% 1 % 100 % 100 %

~~_______________~~

n/m = not meaningful

Amounts in table may not total due to rounding.

(1)


~~(1)~~	~~Effective September 1, 2019 we revised the reporting of our geographic markets for the movement of one country from Growth Markets to Europe.~~Effective September 1, 2020, we revised the reporting of our industry groups to include amounts previously reported in Other. Prior period amounts have been reclassified to conform with the current period presentation.

~~Revenues~~

Revenues

Revenues were impacted by a reduction of approximately 2% from a decline in revenues from reimbursable travel costs in the first quarter of fiscal 2021 across all ~~markets, which reduced revenues by approximately 2%.~~markets. The following revenues commentary discusses local currency revenue changes for the ~~third~~first quarter of fiscal ~~2020~~2021 compared to the ~~third~~first quarter of fiscal ~~2019~~:2020:

Geographic Markets

•

~~North America revenues increased 2% in local currency, led by growth in Public Service, Life Sciences and Software & Platforms.~~

•North America revenues increased 4% in local currency, led by growth in Public Service, Software & Platforms, Banking & Capital Markets and Life Sciences. These increases were partially offset by declines in Consumer Goods, Retail & Travel Services, Energy, Chemicals & Natural Resources and High Tech. Revenue growth was driven by the United States.


•	Europe revenues decreased 2% in local currency, led by declines in Consumer Goods, Retail & Travel Services and Banking & Capital Markets. These decreases were partially offset by growth in Life Sciences, Chemicals & Natural Resources and Software & Platforms. Revenue decline was led by the United Kingdom, Spain and France, partially offset by growth in Italy and Germany.


•	Growth Markets revenues increased 5% in local currency, led by growth in Public Service, Software & Platforms and Chemicals & Natural Resources. These increases were partially offset by a decline in Consumer Goods, Retail & Travel Services. Revenue growth was driven by Japan.

•Europe revenues decreased 1% in local currency, led by declines in High Tech, Consumer Goods, Retail & Travel Services and Industrial. These decreases were partially offset by growth in Public Service, Software & Platforms and Health. The decline in revenues was driven by Spain and France, partially offset by growth in Italy and Switzerland.

~~Table of Contents~~•

Growth Markets revenues increased 3% in local currency, led by growth in Banking & Capital Markets, Public Service, Utilities, High Tech and Health. These increases were partially offset by a decline in Consumer Goods, Retail & Travel Services. Revenue growth was driven by Japan, as well as Australia.

Operating Expenses

Operating expenses for the ~~third~~first quarter of fiscal ~~2020~~ ~~decreased $103~~2021 increased $280 million,, or 1%3%, over the ~~third~~first quarter of fiscal ~~2019~~,2020, and decreased as a percentage of revenues to ~~84.4%~~83.9% from ~~84.5%~~84.4% during this period.


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Operating expenses by category are as follows:


	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

Amounts in table may not total due to rounding.

Cost of Services

Cost of services for the ~~third~~first quarter of fiscal ~~2020~~ ~~decreased $109~~2021 increased $153 million, or 1%2%, over the ~~third~~first quarter of fiscal ~~2019~~,2020, and ~~decreased~~increased as a percentage of revenues to ~~67.9%~~66.9% from ~~68.2%~~67.9% during this period. Gross margin for the ~~third~~first quarter of fiscal ~~2020~~2021 increased to ~~32.1%~~33.1% from ~~31.8%~~32.1% during the ~~third~~first quarter of fiscal ~~2019~~.2020. The increase in gross margin was due to lower non-payroll costs, primarily for travel, partially offset by an increase in labor costs as a percentage of revenues compared to the same period in fiscal ~~2019.~~2020.

Sales and Marketing

Sales and marketing expense for the ~~third~~first quarter of fiscal ~~2020~~ ~~decreased $66~~2021 increased $36 million,, or 6%3%, over the ~~third~~first quarter of fiscal ~~2019~~,2020, and decreased as a percentage of revenues to ~~10.2%~~10.4% from ~~10.7%~~10.5% during this period. ~~The decrease as a percentage of revenues was primarily due to lower selling and other business development costs, primarily for travel, compared to the same period in fiscal 2019.~~

General and Administrative Costs

General and administrative costs for the ~~third~~first quarter of fiscal ~~2020~~2021 increased ~~$72~~$91 million,, or ~~11%~~13%, over the ~~third~~first quarter of fiscal ~~2019~~,2020, and increased as a percentage of revenues to ~~6.3%~~6.6% from ~~5.6%~~6.1% during this period. The increase ~~as a percentage of revenues~~ was primarily due to higher labor and technology ~~and facilities~~ costs as a percentage of revenues compared to the same period in fiscal ~~2019.~~2020.

Operating Income and Operating Margin

Operating income for the ~~third~~first quarter of fiscal ~~2020~~ ~~decreased $5~~2021 increased $123 million, or 7%, over the ~~third~~first quarter of fiscal ~~2019~~. Effective March 1, 2020, we began managing our business under a new growth model through our three geographic markets, North America, Europe and Growth Markets, which became our reportable segments in the third quarter of fiscal 2020. ~~Prior to this change, our reportable segments were our five operating groups, Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources.~~

Operating income and operating margin for each of the geographic markets ~~were~~are as follows:


	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
May 31, 2020 May 31, 2019
Operating
Income Operating
Margin Operating
Income Operating
Margin Increase
(Decrease)
(in millions of U.S. dollars)
North America $ 721
14 % $ 882
17 % $ (161 )
Europe 535
15
552
15
(16 )
Growth Markets 456
21
285
13
172
TOTAL $ 1,713
15.6 % $ 1,718
15.5 % $ (5 )

~~_______________~~

Amounts in table may not total due to rounding.

We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during the ~~third~~first quarter of fiscal ~~2020~~ ~~was similar to that disclosed for revenue for each geographic market.~~ ~~The reduction in travel costs during the third quarter of fiscal 2020 had a favorable impact on operating income.The commentary below provides insight into other factors affecting geographic market performance and operating income for the third quarter of fiscal 2020~~ ~~compared with the~~ ~~third quarter of fiscal 2019~~:

~~North America operating income decreased as revenue growth was more than offset by higher labor costs as a percentage of revenues.~~

~~Europe operating income decreased primarily due to a decline in revenue.~~

~~Growth Markets operating income increased primarily due to revenue growth and higher contract profitability.~~

~~Income Tax Expense~~

~~The effective tax rate for the third quarter of~~ ~~fiscal 2020~~ ~~was 25.5%, compared with 25.6% for the~~ ~~third quarter of fiscal 2019. The slightly lower effective tax rate for the~~ ~~three months ended May 31, 2020~~ ~~included benefits from tax law changes offset by the phased-in effects of U.S. tax reform.~~

~~Table of Contents~~

~~Earnings Per Share~~

~~Diluted earnings per share were $1.90 for the~~ ~~third quarter of fiscal 2020, compared with $1.93 for the~~ ~~third quarter of fiscal 2019~~. The $0.03 decrease in our diluted earnings per share was due to a decrease of $0.02 from higher non-operating expense, $0.01 from higher net income attributable to non-controlling interests - other and $0.01 from lower revenues and operating results. These decreases were partially offset by an increase of $0.01 from lower weighted average shares outstanding. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

~~Table of Contents~~

~~Results of Operations for the Nine Months Ended May 31, 2020 Compared to the Nine Months Ended May 31, 2019~~

~~Revenues by geographic market, industry group and type of work were as follows:~~

Nine Months Ended
Percent
Increase
(Decrease)
U.S.
Dollars
Percent
Increase Local
Currency Percent of Revenues
for the Nine Months Ended
May 31, 2020 May 31,
2019 (1) May 31,
2020 May 31,
2019
(in millions of U.S. dollars)
GEOGRAPHIC MARKETS
North America $ 15,785
$ 14,758
7 % 7 % 47 % 46 %
Europe 10,993
11,126
(1 ) 2
33
34
Growth Markets 6,714
6,275
7
10
20
20
TOTAL REVENUES $ 33,492
$ 32,159
4 % 6 % 100 % 100 %
INDUSTRY GROUPS
Communications, Media & Technology $ 6,682
$ 6,533
2 % 4 % 20 % 20 %
Financial Services 6,414
6,369
1
3
19
20
Health & Public Service 5,933
5,283
12
13
18
16
Products 9,377
8,913
5
7
28
28
Resources 5,071
5,040
1
3
15
16
Other 14
20
n/m
n/m
—
—
TOTAL REVENUES $ 33,492
$ 32,159
4 % 6 % 100 % 100 %
TYPE OF WORK
Consulting $ 18,546
$ 17,991
3 % 5 % 55 % 56 %
Outsourcing 14,945
14,168
5
7
45
44
TOTAL REVENUES $ 33,492
$ 32,159
4 % 6 % 100 % 100 %

~~_______________~~

~~n/m = not meaningful~~

~~Amounts in table may not total due to rounding.~~


~~(1)~~	Effective September 1, 2019 we revised the reporting of our geographic markets for the movement of one country from Growth Markets to Europe. Prior period amounts have been reclassified to conform with the current period presentation.

~~Revenues~~

~~Revenues were impacted by a decline during the third quarter in reimbursable travel costs across all markets. The following commentary discusses local currency revenue changes for the~~ ~~nine months ended May 31, 2020~~ ~~compared to the~~ ~~nine months ended May 31, 2019~~:

~~Geographic Markets~~


•	North America revenues increased 7% in local currency, led by growth in Public Service, Life Sciences, Consumer Goods, Retail & Travel Services, Health and Software & Platforms. These increases were partially offset by a decline in Chemicals & Natural Resources. Revenue growth was driven by the United States.


•	Europe revenues increased 2% in local currency, led by growth in Chemicals & Natural Resources, Life Sciences, Software & Platforms, Energy, Utilities and Health. These increases were partially offset by a decline in Banking & Capital Markets. Revenue growth was led by Italy and Germany, partially offset by a decline in the United Kingdom.


•	Growth Markets revenues increased 10% in local currency, led by growth in Software & Platforms, Banking & Capital Markets, Public Service, Chemicals & Natural Resources, Industrial, Consumer Goods, Retail & Travel Services and Life Sciences. Revenue growth was driven by Japan, as well as Brazil.

~~Table of Contents~~

~~Operating Expenses~~

~~Operating expenses for the~~ ~~nine months ended May 31, 2020~~ ~~increased $1,097 million, or 4%, over the~~ ~~nine months ended May 31, 2019, and decreased as a percentage of revenues to 85.2% from 85.3% during this period.~~

~~Cost of Services~~

~~Cost of services for the~~ ~~nine months ended May 31, 2020~~ ~~increased $677 million, or 3%, over the~~ ~~nine months ended May 31, 2019, and decreased as a percentage of revenues to 68.5% from 69.3% during this period. Gross margin for the~~ ~~nine months ended May 31, 2020~~ ~~increased to 31.5% from 30.7% during the~~ ~~nine months ended May 31, 2019. The increase in gross margin was due to lower non-payroll costs, primarily for travel, partially offset by an increase in labor costs as a percentage of revenues compared to the same period in~~ ~~fiscal 2019~~.

~~Sales and Marketing~~

~~Sales and marketing expense for the~~ ~~nine months ended May 31, 2020~~ ~~increased $198 million, or 6%, over the~~ ~~nine months ended May 31, 2019, and increased as a percentage of revenues to 10.4% from 10.2% during this period.~~

~~General and Administrative Costs~~

~~General and administrative costs for the~~ ~~nine months ended May 31, 2020~~ ~~increased $222 million, or 12%, over the~~ ~~nine months ended May 31, 2019~~, and increased as a percentage of revenues to 6.3% from 5.8% during this period. The increase as a percentage of revenues was primarily due to higher technology and facilities costs compared to the same period in ~~fiscal 2019~~.

~~Operating Income and Operating Margin~~

~~Operating income for the~~ ~~nine months ended May 31, 2020~~ ~~increased $235 million, or 5%, over the~~ ~~nine months ended May 31, 2019~~. Effective March 1, 2020, we began managing our business under a new growth model through our three geographic markets, North America, Europe and Growth Markets, which became our reportable segments in the third quarter of fiscal 2020. Prior to this change, our reportable segments were our five operating groups, Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources.

~~Operating income and operating margin for each of the geographic markets were as follows:~~

Nine Months Ended
May 31, 2020 May 31, 2019
Operating
Income Operating
Margin Operating
Income Operating
Margin Increase
(Decrease)
(in millions of U.S. dollars)
North America $ 2,282
14 % $ 2,267
15 % $ 15
Europe 1,477
13
1,597
14
(119 )
Growth Markets 1,210
18
870
14
340
TOTAL $ 4,969
14.8 % $ 4,734
14.7 % $ 235

~~_______________~~

~~Amounts in table may not total due to rounding.~~

~~We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during the~~ ~~nine months ended May 31, 2020~~2021 was similar to that disclosed for revenue for each geographic market. The reduction in travel costs during the ~~third~~first quarter of fiscal ~~2020~~2021 had a favorable impact on operating income. The commentary below provides insight into other factors affecting geographic market performance and operating income for the ~~nine months ended May 31, 2020~~first quarter of fiscal 2021 compared with the first quarter of fiscal 2020:

•~~nine months ended May 31, 2019~~North America operating income increased primarily due to outsourcing revenue growth.

•:Europe operating income increased primarily due to higher contract profitability.

•Growth Markets operating income decreased as revenue growth was offset by lower consulting contract profitability.


•	~~North America operating income increased primarily due to revenue growth, partially offset by lower outsourcing contract profitability and higher sales and marketing costs as a percentage of revenues.~~


•	~~Europe operating income decreased as revenue growth was offset by lower consulting contract profitability and higher sales and marketing costs as a percentage of revenues.~~


•	~~Growth Markets operating income increased primarily due to revenue growth and higher contract profitability.~~

Other Income (Expense), net

Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension expense, as well as gains and losses associated with our investments. ~~For~~During the ~~nine months ended May 31, 2020~~,first quarter of fiscal 2021, other income (expense), net increased ~~$67 million~~$82,928 over the ~~nine months ended May 31, 2019~~,first quarter of fiscal 2020, primarily due to higher gains on investments ~~partially offset by~~and lower foreign exchange losses.

For additional information, see Note 1 (Basis of Presentation) to our Consolidated Financial Statements under Item 1, “Financial Statements.”


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Income Tax Expense

The effective tax rate for the ~~nine months ended May 31, 2020~~first quarter of fiscal 2021 was ~~22.3%~~23.4%, compared with ~~21.1%~~23.6% for the ~~nine months ended May 31, 2019. The higher~~first quarter of fiscal 2020. Absent the $120 million and $60 million gains on an investment and related $23 million and $10 million in tax expense, our effective tax ~~rate~~rates for the ~~nine months ended May 31,~~first quarter of fiscal 2021 and 2020 ~~was primarily due to lower benefits from final determinations of prior year taxes~~ would have been 23.7% and ~~the phased-in effects of U.S. tax reform, partially offset by higher tax benefits from share-based payments.~~23.9%, respectively.

Our provision for income taxes is based on many factors and subject to volatility year to year. We expect the fiscal ~~2020~~2021 annual effective tax rate to be in the range of ~~23.5%~~23.0% to ~~24.5%~~25.0%. The effective tax rate for interim periods can vary because of the timing of when certain events occur during the year.

Earnings Per Share

Diluted earnings per share were ~~$5.90~~$2.32 for the ~~nine months ended May 31, 2020~~,first quarter of fiscal 2021, compared with ~~$5.62~~$2.09 for the ~~nine months ended May 31, 2019~~.first quarter of fiscal 2020. The ~~$0.28 increase in our~~$97 million and $50 million gains on an investment, net of taxes, increased diluted earnings per share ~~was due to an increase~~by $0.15 and $0.08 during the first quarter of ~~$0.28 from higher revenues~~fiscal 2021 and ~~operating results, $0.08 from higher non-operating income~~2020, respectively. Excluding the impact of these gains, diluted earnings per share would have been 2.17 and ~~$0.02 from lower weighted average shares outstanding. These increases were partially offset by a decrease~~$2.01 for the first quarter of ~~$0.09 from a higher effective tax rate~~fiscal 2021 and ~~$0.01 from higher net income attributable to non-controlling interests - other.~~2020, respectively. For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

The increase in diluted earnings per share is due to the following factors:


	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


Table of Contents
ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

~~Table of Contents~~

Liquidity and Capital Resources

As of ~~May 31,~~November 30, 2020, Cash and cash equivalents was ~~$6.4~~$8.6 billion, compared with ~~$6.1~~$8.4 billion as of August 31, ~~2019.~~2020.

Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table:

Nine Months Ended
May 31, 2020 May 31, 2019 Change
(in millions of U.S. dollars)
Net cash provided by (used in):
Operating activities $ 5,059
$ 4,511
$ 548
Investing activities (1,648 ) (1,380 ) (268 )
Financing activities (3,036 ) (3,416 ) 381
Effect of exchange rate changes on cash and cash equivalents (60 ) (7 ) (53 )
Net increase (decrease) in cash and cash equivalents $ 315
$ (292 ) $ 608

~~_______________~~


	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

Amounts in table may not total due to rounding.

Operating activities: The ~~$548~~$816 million year-over-year increase in operating cash flow was due to higher net income and ~~the deferral of payments for consumption~~changes in operating assets and ~~payroll taxes in several jurisdictions that adopted COVID-19 related deferral provisions.~~liabilities.

Investing activities: The ~~$268~~$281 million increase in cash used was primarily due to higher spending on business acquisitions, ~~and property and equipment,~~ partially offset by increased proceeds from investments. For additional information, see Note 5 (Business Combinations) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

Financing activities: The ~~$381~~$51 million ~~decrease~~increase in cash used was primarily due to ~~a decrease~~an increase in cash dividends paid ~~due to a change~~as well as an increase in the ~~frequency~~net purchases of ~~payments from semi-annually to quarterly and~~shares, partially offset by an increase in net proceeds from share ~~issuances, partially offset by an increase in net purchase of shares.~~issuances. For additional information, see Note ~~8 (Material Transactions Affecting Shareholders’~~7 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

We believe that our current and longer-term working capital, investments and other general corporate funding requirements will be satisfied for the next twelve months and thereafter through cash flows from operations and, to the extent necessary, from our borrowing facilities and future financial market activities.

Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free flow of funds. Domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.

Borrowing Facilities

As of ~~May 31,~~November 30, 2020,, we had the following borrowing facilities, including the issuance of letters of credit, to support general working capital purposes:


(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 875
—
Local guaranteed and non-guaranteed lines of credit 229
—
Total $ 2,104
$ —

Under the borrowing facilities described above, we had an aggregate of ~~$442~~$515 million of letters of credit outstanding as of November 30, 2020.

~~May 31, 2020.~~


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ACCENTURE FORM 10-Q	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

We ended the quarter with a cash balance of $6.4 billion and our cash flows remain very strong. Given the significant economic uncertainty, we supplemented our total available liquidity in June 2020 by adding a $1 billion 364-day syndicated loan facility, which expires in June 2021. This facility is in addition to our existing $1 billion syndicated loan facility, which expires in December 2024. No balances were outstanding under either credit facility at any time during fiscal 2020. In the event of a loan drawn against the new facility, the lenders have the option to require us to repay the loan by issuing public debt within 45 days of their request.

Share Purchases and Redemptions

The Board of Directors of Accenture plc has authorized funding for our publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares and for purchases and redemptions of Accenture plc Class A ordinary shares and Accenture Canada Holdings Inc. exchangeable shares held by current and former members of Accenture Leadership and their permitted transferees.

Our share purchase activity during the ~~nine~~three months ended ~~May 31,~~November 30, 2020 ~~was~~ is as follows:


	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	$	—

Amounts in table may not total due to rounding.

(1)We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.

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) 9,522,567
$ 1,782
—
$ —
Other share purchase programs —
—
36,345
7
Other purchases (2) 2,653,127
537
—
—
Total 12,175,694
$ 2,319
36,345
$ 7
(2)During the three months ended November 30, 2020, as authorized under our various employee equity share plans, we acquired Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under those plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

~~_______________~~


~~(1)~~	We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.

~~(2)~~

~~During the~~ ~~nine months ended May 31, 2020~~, as authorized under our various employee equity share plans, we acquired Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under those plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

We intend to continue to use a significant portion of cash generated from operations for share repurchases during the remainder of fiscal ~~2020~~.2021. The number of shares ultimately repurchased under our open-market share purchase program may vary depending on numerous factors, including, without limitation, share price and other market conditions, our ongoing capital allocation planning, the levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic and/or business conditions, and board and management discretion. Additionally, as these factors may change over the course of the year, the amount of share repurchase activity during any particular period cannot be predicted and may fluctuate from time to time. Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice.

Off-Balance Sheet Arrangements

In the normal course of business and in conjunction with some client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters.

To date, we have not been required to make any significant payment under any of the arrangements described above. For further discussion of these transactions, see Note 1110 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

Significant Accounting Policies

See Note 1 (Basis of Presentation) ~~and Note 7 (Leases)~~ to our Consolidated Financial Statements under Item 1, “Financial Statements.” ~~Note 7 includes updates to our leases policy as a result of the implementation of FASB ASU No. 2016-02.~~

~~Table of Contents~~


Table of Contents
ACCENTURE FORM 10-Q	Item 3. Quantitative and Qualitative Disclosures About Market Risk	28

~~ITEM~~Item 3. ~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~Quantitative and Qualitative Disclosures About Market Risk

During the ~~nine~~three months ended ~~May 31,~~November 30, 2020,, there were no material changes to the information on market risk exposure disclosed in our Annual Report on Form 10-K for the year ended August 31, ~~2019.~~2020. For a discussion of our market risk associated with foreign currency risk, interest rate risk and equity price risk as of August 31, ~~2019,~~2020, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of our Annual Report on Form 10-K for the year ended August 31, ~~2019.~~2020.

~~ITEM~~Item 4. ~~CONTROLS AND PROCEDURES~~Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and our principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the principal executive officer and the principal financial officer of Accenture plc have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the ~~third~~first quarter of fiscal ~~2020~~2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

~~Table of Contents~~


Table of Contents
ACCENTURE FORM 10-Q	Part II — Other Information	29

~~PART~~Part II — ~~OTHER INFORMATION~~Other Information

~~ITEM~~Item 1. ~~LEGAL PROCEEDINGS~~Legal Proceedings

The information set forth under “Legal Contingencies” in Note 1110 (Commitments and Contingencies) to our Consolidated Financial Statements under Part I, Item 1, “Financial Statements,” is incorporated herein by reference.

~~ITEM~~Item 1A. ~~RISK FACTORS~~Risk Factors

For a discussion of our potential risks and uncertainties, see ~~the risk factor below and~~ the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, ~~2019~~2020 (the “Annual Report”).

~~Our results of operations~~ There have been ~~significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.~~

The COVID-19 pandemic has created significant volatility, uncertainty and economic disruption. The pandemic has resulted in authorities around the world implementing numerous unprecedented measures such as travel restrictions, quarantines, shelter in place orders, social distancing measures and temporary business closures. The pandemic and the actions taken by governments, businesses and individuals in responseno material changes to the pandemic have resulted in, and are expected to continue to result in, a substantial curtailment of business activities, weakened economic conditions, significant economic uncertainty and volatility. The pandemic is significantly adversely impacting and could in the future materially adversely impact our business, operations and financial results.

~~The extent to which the coronavirus pandemic will continue to impact our business, operations and financial results will depend on numerous evolving~~risk factors that are difficult to accurately predict, including: the duration and scope of the pandemic and the potential for additional outbreaks; how quickly and to what extent normal economic activity can resume; the timing of the development and distribution of an effective vaccine or treatments for COVID-19; government, business and individuals’ actions in response to the pandemic; the prolonged effect on our clients and client demand for our services and solutions; the degree to which client demand normalizes in a remote work environment; the reprioritization, delay or termination of existing client engagements; and the ability of our clients to pay for our services and solutions. The closure of our and our clients’ offices, and restrictions inhibiting our people’s ability to access those offices, has disrupted, and will continue to disrupt our ability to sell and provide our services and has resulted in, and may continue to result in, losses of revenue.

In response to governmental directives and recommended safety measures, we have enabled most of our employees to work remotely. As governments ease their restrictions, our employees will likely increase their social interactions, including in certain circumstancesdisclosed in our and our clients’ offices. While governments have largely indicated they will ease these restrictions in consultation with public health officials, this may not be sufficient to mitigate the risk of increased infection and could result in increased illness among our employees and associated business interruption.Annual Report.

Any of these events could cause or contribute to the risks and uncertainties enumerated in the Annual Report and could materially adversely affect our business, financial condition, results of operations and/or stock price.

~~Table of Contents~~

~~ITEM~~Item 2. ~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS~~Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Accenture plc Class A Ordinary Shares

The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the ~~third~~first quarter of fiscal ~~2020~~2021.


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

(1).Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by purchase or redemption for cash and any acquired by means of employee forfeiture.

(2)Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the first quarter of fiscal 2021, we purchased 2,865,941 Accenture plc Class A ordinary shares under this program for an aggregate price of $661 million. The open-market purchase program does not have an expiration date.

(3)As of November 30, 2020, our aggregate available authorization for share purchases and redemptions was $5,654 million, which management has the discretion to use for either our publicly announced open-market share purchase program or the other share purchase programs. Since August 2001 and as of November 30, 2020, the Board of Directors of Accenture plc has authorized an aggregate of $40.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.

(4)During the first quarter of fiscal 2021, Accenture purchased 475,289 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs. These transactions consisted of acquisitions of Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under our various employee equity share plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

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)
March 1, 2020 — March 31, 2020 2,414,033
$ 165.52
2,388,148
$ 2,085
April 1, 2020 — April 30, 2020 520,537
$ 176.41
508,853
$ 1,995
May 1, 2020 — May 31, 2020 737,071
$ 182.78
600,565
$ 1,885
Total (4) 3,671,641
$ 170.53
3,497,566

~~_______________~~


~~(1)~~	Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by purchase or redemption for cash and any acquired by means of employee forfeiture.

~~(2)~~

Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the third quarter of fiscal 2020, we purchased 3,497,566 Accenture plc Class A ordinary shares under this program for an aggregate price of $595 million. The open-market purchase program does not have an expiration date.

~~(3)~~

As of May 31, 2020, our aggregate available authorization for share purchases and redemptions was $1,885 million, which management has the discretion to use for either our publicly announced open-market share purchase program or the other share purchase programs. Since August 2001 and as of May 31, 2020, the Board of Directors of Accenture plc has authorized an aggregate of $35.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.

~~(4)~~

~~During the third quarter of fiscal 2020, Accenture purchased 174,075~~ Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs. These transactions consisted of acquisitions of Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under our various employee equity share plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

~~Table of Contents~~

Item 3. Defaults Upon Senior Securities

None.

~~ITEM 3.~~ ~~DEFAULTS UPON SENIOR SECURITIES~~

~~None.~~


Table of Contents
ACCENTURE FORM 10-Q	Part II — Other Information	30

~~ITEM~~Item 4. ~~MINE SAFETY DISCLOSURES~~Mine Safety Disclosures

Not applicable.

~~ITEM~~Item 5. ~~OTHER INFORMATION~~Other Information

(a) None.

(b) None.

~~ITEM~~Item 6. ~~EXHIBITS~~Exhibits

Exhibit Index:



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)

~~31.1~~10.1						2012 Employment Contract between Accenture SAS and Jean-Marc Ollagnier, together with 2017 Addendum (filed herewith)

10.2						2015 Sub-plan for Restricted Share Units Granted in France (filed herewith)

10.3						Form of Fiscal 2019 Key Executive Performance-Based Award Restricted Share Unit Agreement in France (filed herewith)

10.4						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 ~~May 31,~~November 30, 2020, formatted in Inline XBRL: (i) Consolidated Balance Sheets as of ~~May 31,~~November 30, 2020 (Unaudited) and August 31, ~~2019,~~2020, (ii) Consolidated Income Statements (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 and 2019, (iii) Consolidated Statements of Comprehensive Income (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 and 2019, (iv) Consolidated Shareholders’ Equity Statement (Unaudited) for the three ~~and nine~~ months ended ~~May 31,~~November 30, 2020 and 2019, (v) Consolidated Cash Flows Statements (Unaudited) for the ~~nine~~three months ended ~~May 31,~~November 30, 2020 and 2019 and (vi) the Notes to Consolidated Financial Statements (Unaudited)

104						The cover page from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended ~~May 31,~~November 30, 2020, formatted in Inline XBRL (included as Exhibit 101)

~~Table of Contents~~


Table of Contents
ACCENTURE FORM 10-Q	Signatures	31

~~SIGNATURES~~Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: ~~June 25,~~December 17, 2020


			ACCENTURE PLC

			~~ACCENTURE PLC~~
By:
	~~By:~~	/s/ KC McClure
			Name:	KC McClure
			Title:	Chief Financial Officer
				(Principal Financial Officer and Authorized Signatory)


											August 31, 2020		Additions/ Adjustments		Foreign Currency Translation		November 30, 2020
	August 31, 2019		Additions/ Adjustments		Foreign Currency Translation			May 31, 2020
GEOGRAPHIC MARKETS (1)
North America	3,973,356		529,405		(1,492		)	4,501,269		North America	$	4,604,441	$	225,619	$	647	$	4,830,707
Europe	1,569,223		371,680		2,720			1,943,623		Europe	2,138,088		120,090		9,356		2,267,534
Growth Markets	662,971		250,801		(24,070		)	889,702		Growth Markets	967,291		48,909		12,970		1,029,170
Total	$	6,205,550	$	1,151,886	$	(22,842	)	$	7,334,594	Total	$	7,709,820	$	394,618	$	22,973	$	8,127,411



	August 31, 2019							May 31, 2020
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	$	1,268,841	$	(444,315	)	$	824,526
Technology	119,686		(45,851		)	73,835		146,815		(50,697		)	96,118
Patents	127,796		(66,167		)	61,629		128,070		(66,048		)	62,022
Other	78,344		(28,875		)	49,469		82,736		(33,396		)	49,340
Total	$	1,339,802	$	(499,023	)	$	840,779	$	1,626,462	$	(594,456	)	$	1,032,006


	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	$	62,762
2021	220,067
2022	177,937
2023	159,124
2024	132,463
Thereafter	279,653
Total	$	1,032,006



	Three Months Ended						Nine Months Ended
	May 31, 2020			May 31, 2019			May 31, 2020			May 31, 2019
REVENUES:
Revenues	$	10,991,305		$	11,099,688		$	33,491,768		$	32,159,363
OPERATING EXPENSES:
Cost of services	7,462,617			7,571,390			22,956,150			22,279,291
Sales and marketing	1,118,204			1,184,164			3,471,980			3,274,216
General and administrative costs	697,751			626,191			2,094,697			1,872,275
Total operating expenses	9,278,572			9,381,745			28,522,827			27,425,782
OPERATING INCOME	1,712,733			1,717,943			4,968,941			4,733,581
Interest income	12,671			21,402			61,476			60,114
Interest expense	(4,961		)	(5,348		)	(19,002		)	(15,472		)
Other income (expense), net	(39,670		)	(29,690		)	(20,439		)	(87,178		)
INCOME BEFORE INCOME TAXES	1,680,773			1,704,307			4,990,976			4,691,045
Income tax expense	428,134			435,658			1,111,087			990,352
NET INCOME	1,252,639			1,268,649			3,879,889			3,700,693
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc.	(1,518		)	(1,676		)	(4,791		)	(5,213		)
Net income attributable to noncontrolling interests – other	(22,919		)	(17,457		)	(55,188		)	(46,795		)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,228,202		$	1,249,516		$	3,819,910		$	3,648,685
Weighted average Class A ordinary shares:
Basic	636,146,240			637,831,341			636,445,172			638,439,707
Diluted	645,607,914			649,297,717			648,025,669			650,144,931
Earnings per Class A ordinary share:
Basic	$	1.93		$	1.96		$	6.00		$	5.72
Diluted	$	1.90		$	1.93		$	5.90		$	5.62
Cash dividends per share	$	0.80		$	1.46		$	2.40		$	2.92



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



	As of May 31, 2020		As of August 31, 2019
Receivables, net of allowance	$	7,677,366	$	7,467,338
Contract assets (current)	668,235		627,733
Receivables and contract assets (current)	8,345,601		8,095,071
Contract assets (non-current)	52,701		71,002
Deferred revenues (current)	3,536,521		3,188,835
Deferred revenues (non-current)	638,821		565,224


~~(1)~~ Table of Contents						~~Reclassifications into net periodic pension~~Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and ~~post-retirement expense are recognized in Cost of services, Sales and marketing, General and administrative costs and non-operating expenses.~~per share amounts or as otherwise disclosed)


~~(2)~~	~~As of~~ ACCENTURE~~May 31, 2020~~, ~~$4,372 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.~~ FORM 10-Q	14


~~(1)~~	~~Effective March 1, 2020, we began managing our business under a new growth model through our three geographic markets, which became our reportable segments in the third quarter of fiscal 2020.~~



	Three Months Ended May 31, 2020			Nine Months Ended May 31, 2020
Operating lease cost	$	191,351		$	557,404
Variable lease cost	42,537			137,940
Sublease income	(6,831		)	(19,391		)
	$	227,057		$	675,953



	Nine Months Ended May 31, 2020
Lease liability payments	$	535,549
Lease assets obtained in exchange for liabilities	$	486,739



	Lease Payments			Sublease Receipts
2020 (Remainder)	$	179,590		$	(5,479	)
2021	744,328			(16,026		)
2022	626,354			(8,061		)
2023	523,343			(7,618		)
2024	439,048			(7,181		)
Thereafter	1,474,890			(31,050		)
Total lease payments (receipts)	3,987,553			$	(75,415	)
Less interest	(544,371		)
Total lease liabilities	$	3,443,182



	Dividend Per Share		Accenture plc Class A Ordinary Shares			Accenture Canada Holdings Inc. Exchangeable Shares			Total Cash Outlay
Dividend Payment Date	Dividend Per Share		Record Date	Cash Outlay		Record Date	Cash Outlay		Total Cash Outlay
November 15, 2019	$	0.80	October 17, 2019	$	507,725	October 15, 2019	$	656	$	508,381
February 14, 2020	$	0.80	January 16, 2020	$	510,604	January 14, 2020	$	634	$	511,238
May 15, 2020	$	0.80	April 16, 2020	$	508,283	April 14, 2020	$	630	$	508,913
Total Dividends				$	1,526,612		$	1,920	$	1,528,532


	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


~~(2)~~	~~Amounts include depreciation on property and equipment and amortization of intangible assets controlled by each reportable segment, as well as an allocation for amounts they do not directly control.~~


~~(3)~~	We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues.



	Nine Months Ended				Percent Increase (Decrease) U.S. Dollars		Percent Increase Local Currency		Percent of Revenues for the Nine Months Ended
	May 31, 2020		May 31, 2019 (1)		Percent Increase (Decrease) U.S. Dollars		Percent Increase Local Currency		May 31, 2020		May 31, 2019
	(in millions of U.S. dollars)
GEOGRAPHIC MARKETS
North America	$	15,785	$	14,758	7	%	7	%	47	%	46	%
Europe	10,993		11,126		(1	)	2		33		34
Growth Markets	6,714		6,275		7		10		20		20
TOTAL REVENUES	$	33,492	$	32,159	4	%	6	%	100	%	100	%
INDUSTRY GROUPS
Communications, Media & Technology	$	6,682	$	6,533	2	%	4	%	20	%	20	%
Financial Services	6,414		6,369		1		3		19		20
Health & Public Service	5,933		5,283		12		13		18		16
Products	9,377		8,913		5		7		28		28
Resources	5,071		5,040		1		3		15		16
Other	14		20		n/m		n/m		—		—
TOTAL REVENUES	$	33,492	$	32,159	4	%	6	%	100	%	100	%
TYPE OF WORK
Consulting	$	18,546	$	17,991	3	%	5	%	55	%	56	%
Outsourcing	14,945		14,168		5		7		45		44
TOTAL REVENUES	$	33,492	$	32,159	4	%	6	%	100	%	100	%