☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to |
Ireland | 98-0627530 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A ordinary shares, par value $0.0000225 per share | ACN | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(In thousands of U.S. dollars, except share and per share amounts) | |||||||||||
3 |
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 |
Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 4 |
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 |
Consolidated Financial Statements (In thousands of U.S. dollars) | |||||||||||
ACCENTURE FORM 10-Q | 5 | ||||||||||
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 |
Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 6 | ||||||||||
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of 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 |
Consolidated Financial Statements (In thousands of U.S. dollars and share amounts) | |||||||||||
ACCENTURE FORM 10-Q | 7 | ||||||||||
Ordinary Shares | Class A Ordinary Shares | Class X Ordinary Shares | Restricted Share Units | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of 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 |
Consolidated Financial Statements (In thousands of U.S. dollars) | |||||||||||
ACCENTURE FORM 10-Q | 8 | ||||||||||
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 |
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 |
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 | ||||||||||
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 |
November 30, 2020 | August 31, 2020 | ||||||||||
Equity method investments | $ | 211,765 | $ | 240,446 | |||||||
Investments without readily determinable fair values | 87,141 | 84,068 | |||||||||
Total non-current investments | $ | 298,906 | $ | 324,514 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 10 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Depreciation | $ | 133,918 | $ | 97,090 | |||||||
Amortization - Deferred transition | 81,356 | 67,914 | |||||||||
Amortization - Intangible assets | 67,207 | 53,372 | |||||||||
Other - Operating lease cost | 185,719 | 181,082 | |||||||||
Total depreciation, amortization and other | $ | 468,200 | $ | 399,458 |
Balance Sheet | Balance as of August 31, 2019 | Adjustments due to ASU 2016-02 (Topic 842) | Balance as of September 1, 2019 | ||||||||
CURRENT ASSETS | |||||||||||
Other current assets | $ | 1,225,364 | $ | (38,666 | ) | $ | 1,186,698 | ||||
NON-CURRENT ASSETS | |||||||||||
Lease assets | — | 3,169,608 | 3,169,608 | ||||||||
Other non-current assets | 1,400,292 | (10,333 | ) | 1,389,959 | |||||||
CURRENT LIABILITIES | |||||||||||
Lease liabilities | — | 699,399 | 699,399 | ||||||||
Other accrued liabilities | 951,450 | (703 | ) | 950,747 | |||||||
NON-CURRENT LIABILITIES | |||||||||||
Lease liabilities | — | 2,666,344 | 2,666,344 | ||||||||
Other non-current liabilities | 526,988 | (244,431 | ) | 282,557 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 11 | ||||||||||
As of 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 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 12 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Basic earnings per share | |||||||||||
Net income attributable to Accenture plc | $ | 1,500,276 | $ | 1,356,968 | |||||||
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 | |||||||||
Basic earnings per share | $ | 2.37 | $ | 2.13 | |||||||
Diluted earnings per share | |||||||||||
Net income attributable to Accenture plc | $ | 1,500,276 | $ | 1,356,968 | |||||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) | 1,700 | 1,741 | |||||||||
Net income for diluted earnings per share calculation | $ | 1,501,976 | $ | 1,358,709 | |||||||
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 | |||||||||
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) | 718,767 | 815,515 | |||||||||
Diluted effect of employee compensation related to Class A ordinary shares | 11,633,343 | 12,626,225 | |||||||||
Diluted effect of share purchase plans related to Class A ordinary shares | 256,143 | 225,395 | |||||||||
Diluted weighted average Class A ordinary shares | 646,879,735 | 649,389,444 | |||||||||
Diluted earnings per share | $ | 2.32 | $ | 2.09 |
Three Months Ended | 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 |
(In thousands of U.S. dollars, except share and per share | |||||||||||
ACCENTURE FORM 10-Q | 13 | ||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
Foreign currency translation | |||||||||||
Beginning balance | $ | (1,010,279) | $ | (1,207,975) | |||||||
Foreign currency translation | 67,443 | 40,145 | |||||||||
Income tax benefit (expense) | 1,313 | (1,264) | |||||||||
Portion attributable to noncontrolling interests | (1,444) | (1,151) | |||||||||
Foreign currency translation, net of tax | 67,312 | 37,730 | |||||||||
Ending balance | (942,967) | (1,170,245) | |||||||||
Defined benefit plans | |||||||||||
Beginning balance | (615,223) | (672,323) | |||||||||
Reclassifications into net periodic pension and post-retirement expense (1) | 13,595 | 12,784 | |||||||||
Income tax benefit (expense) | (2,702) | (4,021) | |||||||||
Portion attributable to noncontrolling interests | (12) | (11) | |||||||||
Defined benefit plans, net of tax | 10,881 | 8,752 | |||||||||
Ending balance | (604,342) | (663,571) | |||||||||
Cash flow hedges | |||||||||||
Beginning balance | 63,714 | 38,993 | |||||||||
Unrealized gain (loss) | 25,364 | 38,408 | |||||||||
Reclassification adjustments into Cost of services | (20,895) | (20,019) | |||||||||
Income tax benefit (expense) | (71) | (4,244) | |||||||||
Portion attributable to noncontrolling interests | (5) | (18) | |||||||||
Cash flow hedges, net of tax | 4,393 | 14,127 | |||||||||
Ending balance (2) | 68,107 | 53,120 | |||||||||
Investments | |||||||||||
Beginning balance | (49) | 728 | |||||||||
Unrealized gain (loss) | 49 | 0 | |||||||||
Income tax benefit (expense) | 0 | 0 | |||||||||
Portion attributable to noncontrolling interests | 0 | 0 | |||||||||
Investments, net of tax | 49 | 0 | |||||||||
Ending balance | 0 | 728 | |||||||||
Accumulated other comprehensive loss | $ | (1,479,202) | $ | (1,779,968) |
Three Months Ended | 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 | ) |
(In thousands of U.S. dollars, except share and |
14 | |||||||||||
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 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 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 15 | ||||||||||
Lease Payments | Sublease Receipts | ||||||
2020 (Remainder) | $ | 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 |
Lease Payments | Sublease Receipts | ||||||
2020 | $ | 688,020 | $ | (24,884 | ) | ||
2021 | 597,307 | (17,908 | ) | ||||
2022 | 516,544 | (8,535 | ) | ||||
2023 | 428,481 | (7,541 | ) | ||||
2024 | 363,107 | (7,184 | ) | ||||
Thereafter | 1,246,097 | (30,708 | ) | ||||
$ | 3,839,556 | $ | (96,760 | ) |
Dividend Per Share | Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | Total Cash Outlay | |||||||||||||||||
Dividend Payment Date | Record Date | Cash Outlay | Record Date | Cash Outlay | ||||||||||||||||
November 15, 2019 | $ | 0.80 | October 17, 2019 | $ | 507,725 | October 15, 2019 | $ | 656 | $ | 508,381 | ||||||||||
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 |
Dividend Per Share | Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | Total Cash Outlay | |||||||||||||||||||||||||||||||||||
Dividend Payment Date | Record Date | Cash Outlay | Record Date | Cash Outlay | ||||||||||||||||||||||||||||||||||
November 13, 2020 | $ | 0.88 | October 13, 2020 | $ | 557,419 | October 9, 2020 | $ | 633 | $ | 558,052 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 16 | ||||||||||
May 31, 2020 | August 31, 2019 | ||||||
Assets | |||||||
Cash Flow Hedges | |||||||
Other current assets | $ | 42,750 | $ | 53,033 | |||
Other non-current assets | 26,010 | 49,525 | |||||
Other Derivatives | |||||||
Other current assets | 26,750 | 8,059 | |||||
Total assets | $ | 95,510 | $ | 110,617 | |||
Liabilities | |||||||
Cash Flow Hedges | |||||||
Other accrued liabilities | $ | 38,378 | $ | 18,826 | |||
Other non-current liabilities | 30,568 | 8,770 | |||||
Other Derivatives | |||||||
Other accrued liabilities | 9,093 | 32,195 | |||||
Total liabilities | $ | 78,039 | $ | 59,791 | |||
Total fair value | $ | 17,471 | $ | 50,826 | |||
Total notional value | $ | 8,766,370 | $ | 8,709,917 |
November 30, 2020 | August 31, 2020 | ||||||||||
Assets | |||||||||||
Cash Flow Hedges | |||||||||||
Other current assets | $ | 79,405 | $ | 75,871 | |||||||
Other non-current assets | 50,138 | 50,914 | |||||||||
Other Derivatives | |||||||||||
Other current assets | 42,697 | 27,964 | |||||||||
Total assets | $ | 172,240 | $ | 154,749 | |||||||
Liabilities | |||||||||||
Cash Flow Hedges | |||||||||||
Other accrued liabilities | $ | 12,883 | $ | 13,614 | |||||||
Other non-current liabilities | 12,691 | 13,576 | |||||||||
Other Derivatives | |||||||||||
Other accrued liabilities | 5,428 | 11,828 | |||||||||
Total liabilities | $ | 31,002 | $ | 39,018 | |||||||
Total fair value | $ | 141,238 | $ | 115,731 | |||||||
Total notional value | $ | 9,367,230 | $ | 9,600,691 |
November 30, 2020 | August 31, 2020 | ||||||||||
Net derivative assets | $ | 159,030 | $ | 129,520 | |||||||
Net derivative liabilities | 17,792 | 13,789 | |||||||||
Total fair value | $ | 141,238 | $ | 115,731 |
May 31, 2020 | August 31, 2019 | ||||||
Net derivative assets | $ | 59,781 | $ | 88,811 | |||
Net derivative liabilities | 42,310 | 37,985 | |||||
Total fair value | $ | 17,471 | $ | 50,826 |
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 17 | ||||||||||
Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) | |||||||||||
ACCENTURE FORM 10-Q | 18 | ||||||||||
Three Months Ended May 31, 2020 | North America | Europe | Growth Markets | Total | |||||||||||
Revenues | $ | 5,239,275 | $ | 3,574,995 | $ | 2,177,035 | $ | 10,991,305 | |||||||
Depreciation and amortization (2) | 91,066 | 87,895 | 74,347 | 253,308 | |||||||||||
Operating income | 720,997 | 535,463 | 456,273 | 1,712,733 | |||||||||||
Net assets as of May 31 (3) | 3,141,914 | 1,236,004 | 549,324 | 4,927,242 | |||||||||||
Three Months Ended May 31, 2019 | North America | Europe | Growth Markets | Total | |||||||||||
Revenues (1) | $ | 5,147,948 | $ | 3,773,835 | $ | 2,177,905 | $ | 11,099,688 | |||||||
Depreciation and amortization (2) | 74,759 | 73,994 | 72,556 | 221,309 | |||||||||||
Operating income | 881,557 | 551,665 | 284,721 | 1,717,943 | |||||||||||
Net assets as of May 31 (3) | 2,907,951 | 1,332,909 | 771,078 | 5,011,938 | |||||||||||
Nine Months Ended May 31, 2020 | North America | Europe | Growth Markets | Total | |||||||||||
Revenues | $ | 15,784,518 | $ | 10,993,277 | $ | 6,713,973 | $ | 33,491,768 | |||||||
Depreciation and amortization (2) | 253,018 | 248,448 | 227,364 | 728,830 | |||||||||||
Operating income | 2,281,648 | 1,477,338 | 1,209,955 | 4,968,941 | |||||||||||
Net assets as of May 31 (3) | 3,141,914 | 1,236,004 | 549,324 | 4,927,242 | |||||||||||
Nine Months Ended May 31, 2019 | North America | Europe | Growth Markets | Total | |||||||||||
Revenues (1) | $ | 14,758,046 | $ | 11,125,999 | $ | 6,275,318 | $ | 32,159,363 | |||||||
Depreciation and amortization (2) | 221,896 | 213,789 | 216,907 | 652,592 | |||||||||||
Operating income | 2,266,963 | 1,596,776 | 869,842 | 4,733,581 | |||||||||||
Net assets as of May 31 (3) | 2,907,951 | 1,332,909 | 771,078 | 5,011,938 |
Revenues | |||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
GEOGRAPHIC MARKETS | |||||||||||
North America | $ | 5,480,963 | $ | 5,287,812 | |||||||
Europe | 3,967,408 | 3,789,657 | |||||||||
Growth Markets | 2,313,814 | 2,281,489 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 | |||||||
INDUSTRY GROUPS (1) | |||||||||||
Communications, Media & Technology | $ | 2,333,645 | $ | 2,245,470 | |||||||
Financial Services | 2,346,291 | 2,190,107 | |||||||||
Health & Public Service | 2,211,889 | 1,969,214 | |||||||||
Products | 3,206,125 | 3,220,015 | |||||||||
Resources | 1,664,235 | 1,734,152 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 | |||||||
TYPE OF WORK | |||||||||||
Consulting | $ | 6,332,572 | $ | 6,377,251 | |||||||
Outsourcing | 5,429,613 | 4,981,707 | |||||||||
Total Revenues | $ | 11,762,185 | $ | 11,358,958 |
Operating Income | |||||||||||
Three Months Ended | |||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||
GEOGRAPHIC MARKETS | |||||||||||
North America | $ | 888,809 | $ | 828,407 | |||||||
Europe | 629,430 | 558,951 | |||||||||
Growth Markets | 372,430 | 379,905 | |||||||||
Total Operating Income | $ | 1,890,669 | $ | 1,767,263 |
Revenues | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||||||||||||
INDUSTRY GROUPS | |||||||||||||||
Communications, Media & Technology | $ | 2,197,152 | $ | 2,253,136 | $ | 6,681,968 | $ | 6,533,319 | |||||||
Financial Services | 2,137,850 | 2,196,595 | 6,414,211 | 6,369,477 | |||||||||||
Health & Public Service | 2,015,874 | 1,819,775 | 5,932,693 | 5,283,364 | |||||||||||
Products | 2,998,903 | 3,077,227 | 9,376,984 | 8,912,588 | |||||||||||
Resources | 1,636,606 | 1,747,977 | 5,071,450 | 5,040,143 | |||||||||||
Other | 4,920 | 4,978 | 14,462 | 20,472 | |||||||||||
Total | $ | 10,991,305 | $ | 11,099,688 | $ | 33,491,768 | $ | 32,159,363 | |||||||
TYPE OF WORK | |||||||||||||||
Consulting | $ | 5,997,894 | $ | 6,236,630 | $ | 18,546,448 | $ | 17,990,967 | |||||||
Outsourcing | 4,993,411 | 4,863,058 | 14,945,320 | 14,168,396 | |||||||||||
Total | $ | 10,991,305 | $ | 11,099,688 | $ | 33,491,768 | $ | 32,159,363 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 |
•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. • |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 21 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 23 |
Three Months Ended | Percent Increase (Decrease) U.S. Dollars | Percent Increase (Decrease) Local Currency | Percent of Revenues for the Three Months Ended | ||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | November 30, 2020 | November 30, 2019 | November 30, 2020 | November 30, 2019 | |||||||||||||||||||||||||||||||
GEOGRAPHIC MARKETS | |||||||||||||||||||||||||||||||||||
North America | $ | 5,481 | $ | 5,288 | 4 | % | 4 | % | 47 | % | 47 | % | |||||||||||||||||||||||
Europe | 3,967 | 3,790 | 5 | (1) | 34 | 33 | |||||||||||||||||||||||||||||
Growth Markets | 2,314 | 2,281 | 1 | 3 | 20 | 20 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % | |||||||||||||||||||||||
INDUSTRY GROUPS (1) | |||||||||||||||||||||||||||||||||||
Communications, Media & Technology | $ | 2,334 | $ | 2,245 | 4 | % | 3 | 20 | % | 20 | % | ||||||||||||||||||||||||
Financial Services | 2,346 | 2,190 | 7 | 5 | 20 | 19 | |||||||||||||||||||||||||||||
Health & Public Service | 2,212 | 1,969 | 12 | 11 | 19 | 17 | |||||||||||||||||||||||||||||
Products | 3,206 | 3,220 | — | (3) | 27 | 28 | |||||||||||||||||||||||||||||
Resources | 1,664 | 1,734 | (4) | (5) | 14 | 15 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % | |||||||||||||||||||||||
TYPE OF WORK | |||||||||||||||||||||||||||||||||||
Consulting | $ | 6,333 | $ | 6,377 | (1) | % | (2) | % | 54 | % | 56 | % | |||||||||||||||||||||||
Outsourcing | 5,430 | 4,982 | 9 | 8 | 46 | 44 | |||||||||||||||||||||||||||||
Total | $ | 11,762 | $ | 11,359 | 4 | % | 2 | % | 100 | % | 100 | % |
Three Months Ended | Percent Increase (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 | % |
•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. |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 |
Three Months Ended | |||||||||||||||||||||||||||||
(in millions of U.S. dollars) | November 30, 2020 | November 30, 2019 | Increase (Decrease) | ||||||||||||||||||||||||||
Operating Expenses | $ | 9,872 | 83.9 | % | $ | 9,592 | 84.4 | % | $ | 280 | |||||||||||||||||||
Cost of services | 7,864 | 66.9 | 7,711 | 67.9 | 153 | ||||||||||||||||||||||||
Sales and marketing | 1,227 | 10.4 | 1,191 | 10.5 | 36 | ||||||||||||||||||||||||
General and administrative costs | 780 | 6.6 | 689 | 6.1 | 91 |
Three Months Ended | |||||||||||||||||||||||||||||
November 30, 2020 | November 30, 2019 | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | Operating Income | Operating Margin | Operating Income | Operating Margin | Increase (Decrease) | ||||||||||||||||||||||||
North America | $ | 889 | 16 | % | $ | 828 | 16 | % | $ | 60 | |||||||||||||||||||
Europe | 629 | 16 | 559 | 15 | 70 | ||||||||||||||||||||||||
Growth Markets | 372 | 16 | 380 | 17 | (7) | ||||||||||||||||||||||||
Total | $ | 1,891 | 16.1 | % | $ | 1,767 | 15.6 | % | $ | 123 |
Three Months Ended | |||||||||||||||||
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 | ) |
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 | % |
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 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 |
Earnings Per Share | |||||
Q1 FY20 As Reported | $ | 2.09 | |||
Higher revenue and operating results | 0.14 | ||||
Higher gains on an investment, net of tax | 0.07 | ||||
Lower share count | 0.01 | ||||
Lower effective tax rate | 0.01 | ||||
Q1 FY21 As Reported | $ | 2.32 |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 |
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 |
(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 | $ | — |
ACCENTURE FORM 10-Q | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27 |
Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | ||||||||||||||||||||||
(in millions of U.S. dollars, except share amounts) | Shares | Amount | Shares | Amount | |||||||||||||||||||
Open-market share purchases (1) | 2,865,941 | $ | 661 | — | $ | — | |||||||||||||||||
Other share purchase programs | — | — | 2,130 | — | |||||||||||||||||||
Other purchases (2) | 475,289 | 108 | — | — | |||||||||||||||||||
Total | 3,341,230 | $ | 768 | 2,130 | $ | — |
Accenture plc Class A Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | ||||||||||||
Shares | Amount | Shares | Amount | ||||||||||
(in millions of U.S. dollars, except share amounts) | |||||||||||||
Open-market share purchases (1) | 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 |
ACCENTURE FORM 10-Q | Item 3. Quantitative and Qualitative Disclosures About Market Risk | 28 |
ACCENTURE FORM 10-Q | Part II — Other Information | 29 |
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | ||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||
September 1, 2020 — September 30, 2020 | 880,210 | $ | 232.11 | 846,255 | $ | 6,119 | ||||||||||||||||||||
October 1, 2020 — October 31, 2020 | 1,567,525 | 225.71 | 1,247,554 | 5,838 | ||||||||||||||||||||||
November 1, 2020 — November 30, 2020 | 893,495 | 235.36 | 772,132 | 5,654 | ||||||||||||||||||||||
Total (4) | 3,341,230 | $ | 229.97 | 2,865,941 |
Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | ||||||||||
(in millions of U.S. dollars) | ||||||||||||||
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 |
ACCENTURE FORM 10-Q | Part II — Other Information | 30 |
Exhibit Number | Exhibit | |||||||
3.1 | Amended and Restated Memorandum and Articles of Association of Accenture plc (incorporated by reference to Exhibit 3.1 to Accenture plc’s 8-K filed on February 7, 2018) | |||||||
2012 Employment Contract between Accenture SAS and Jean-Marc Ollagnier, together with 2017 Addendum (filed herewith) | ||||||||
10.2 | ||||||||
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 | |||||||
104 | The cover page from Accenture plc’s Quarterly Report on Form 10-Q for the quarterly period ended | |||||||
ACCENTURE FORM 10-Q | Signatures | 31 |
ACCENTURE PLC | ||||||||
By: | ||||||||
/s/ KC McClure | ||||||||
Name: | KC McClure | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Financial Officer and Authorized Signatory) |