Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Feb. 28, 2017 | Mar. 09, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Feb. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ACN | |
Entity Registrant Name | Accenture plc | |
Entity Central Index Key | 1,467,373 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A ordinary shares | ||
Entity Common Stock, Shares Outstanding | 662,131,781 | |
Class X Ordinary Shares | ||
Entity Common Stock, Shares Outstanding | 20,999,201 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,238,862 | $ 4,905,609 |
Short-term investments | 2,502 | 2,875 |
Receivables from clients, net | 4,452,252 | 4,072,180 |
Unbilled services, net | 2,111,641 | 2,150,219 |
Other current assets | 958,745 | 845,339 |
Total current assets | 10,764,002 | 11,976,222 |
NON-CURRENT ASSETS: | ||
Unbilled services, net | 52,898 | 68,145 |
Investments | 190,358 | 198,633 |
Property and equipment, net | 968,433 | 956,542 |
Goodwill | 4,224,007 | 3,609,437 |
Deferred contract costs | 737,354 | 733,219 |
Deferred income taxes, net | 2,030,673 | 2,077,312 |
Other non-current assets | 1,111,048 | 989,494 |
Total non-current assets | 9,314,771 | 8,632,782 |
TOTAL ASSETS | 20,078,773 | 20,609,004 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 2,944 | 2,773 |
Accounts payable | 1,212,800 | 1,280,821 |
Deferred revenues | 2,458,524 | 2,364,728 |
Accrued payroll and related benefits | 3,292,768 | 4,040,751 |
Accrued consumption taxes | 334,538 | 358,359 |
Income taxes payable | 665,125 | 362,963 |
Other accrued liabilities | 386,074 | 468,529 |
Total current liabilities | 8,352,773 | 8,878,924 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 24,546 | 24,457 |
Deferred revenues | 740,919 | 754,812 |
Retirement obligation | 1,483,978 | 1,494,789 |
Deferred income taxes, net | 53,452 | 111,020 |
Income taxes payable | 516,839 | 850,709 |
Other non-current liabilities | 291,117 | 304,917 |
Total non-current liabilities | 3,110,851 | 3,540,704 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 875,148 | 1,004,128 |
Additional paid-in capital | 3,475,589 | 2,924,729 |
Treasury shares, at cost: Ordinary, 40,000 shares as of February 28, 2017 and August 31, 2016; Class A ordinary, 41,876,212 and 33,529,739 shares as of February 28, 2017 and August 31, 2016, respectively | (3,600,403) | (2,591,907) |
Retained earnings | 8,953,190 | 7,879,960 |
Accumulated other comprehensive loss | (1,739,351) | (1,661,720) |
Total Accenture plc shareholders’ equity | 7,964,245 | 7,555,262 |
Noncontrolling interests | 650,904 | 634,114 |
Total shareholders’ equity | 8,615,149 | 8,189,376 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 20,078,773 | 20,609,004 |
Ordinary Shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | 57 | 57 |
Class A ordinary shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | 15 | 15 |
Class X Ordinary Shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Feb. 28, 2017$ / sharesshares | Feb. 28, 2017€ / sharesshares | Aug. 31, 2016$ / sharesshares | Aug. 31, 2016€ / sharesshares |
Ordinary Shares | ||||
Ordinary shares, par value | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized | 40,000 | 40,000 | 40,000 | 40,000 |
Ordinary shares, shares issued | 40,000 | 40,000 | 40,000 | 40,000 |
Treasury shares, ordinary shares | 40,000 | 40,000 | 40,000 | 40,000 |
Class A ordinary shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0000225 | $ 0.0000225 | ||
Ordinary shares, shares authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 |
Ordinary shares, shares issued | 661,956,595 | 661,956,595 | 654,202,813 | 654,202,813 |
Treasury shares, ordinary shares | 41,876,212 | 41,876,212 | 33,529,739 | 33,529,739 |
Class X Ordinary Shares | ||||
Ordinary shares, par value | $ / shares | $ 0.0000225 | $ 0.0000225 | ||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 20,999,201 | 20,999,201 | 21,917,155 | 21,917,155 |
Ordinary shares, shares outstanding | 20,999,201 | 20,999,201 | 21,917,155 | 21,917,155 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
REVENUES: | ||||
Revenues before reimbursements (“Net revenues”) | $ 8,317,671 | $ 7,945,565 | $ 16,833,188 | $ 15,958,728 |
Reimbursements | 444,511 | 451,488 | 934,597 | 904,309 |
Revenues | 8,762,182 | 8,397,053 | 17,767,785 | 16,863,037 |
Cost of services: | ||||
Cost of services before reimbursable expenses | 5,813,515 | 5,575,749 | 11,599,000 | 11,026,393 |
Reimbursable expenses | 444,511 | 451,488 | 934,597 | 904,309 |
Cost of services | 6,258,026 | 6,027,237 | 12,533,597 | 11,930,702 |
Sales and marketing | 871,489 | 830,332 | 1,760,316 | 1,706,125 |
General and administrative costs | 494,014 | 451,440 | 1,003,260 | 916,906 |
Total operating expenses | 7,623,529 | 7,309,009 | 15,297,173 | 14,553,733 |
OPERATING INCOME | 1,138,653 | 1,088,044 | 2,470,612 | 2,309,304 |
Interest income | 8,728 | 6,727 | 17,025 | 13,853 |
Interest expense | (3,976) | (4,543) | (7,024) | (8,595) |
Other income (expense), net | (12,546) | (21,213) | (18,633) | (17,184) |
Gain (loss) on sale of businesses | (12,349) | 553,577 | (12,349) | 553,577 |
INCOME BEFORE INCOME TAXES | 1,118,510 | 1,622,592 | 2,449,631 | 2,850,955 |
Provision for income taxes | 231,302 | 222,734 | 502,674 | 582,416 |
NET INCOME | 887,208 | 1,399,858 | 1,946,957 | 2,268,539 |
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. | (37,961) | (63,379) | (84,413) | (102,955) |
Net income attributable to noncontrolling interests – other | (10,495) | (9,959) | (19,316) | (20,165) |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 838,752 | $ 1,326,520 | $ 1,843,228 | $ 2,145,419 |
Weighted average Class A ordinary shares: | ||||
Basic | 621,999,948 | 626,523,793 | 621,787,252 | 626,505,960 |
Diluted | 661,079,375 | 668,125,087 | 662,446,680 | 669,758,590 |
Earnings per Class A ordinary share: | ||||
Basic | $ 1.35 | $ 2.12 | $ 2.96 | $ 3.42 |
Diluted | 1.33 | 2.08 | 2.91 | 3.36 |
Cash dividends per share | $ 0 | $ 0 | $ 1.21 | $ 1.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 887,208 | $ 1,399,858 | $ 1,946,957 | $ 2,268,539 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation | 82,772 | (24,632) | (107,919) | (139,011) |
Defined benefit plans | (6,897) | 3,545 | 4,535 | 7,646 |
Cash flow hedges | 39,992 | (10,975) | 25,489 | 21,802 |
Marketable securities | 0 | (98) | 264 | (98) |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | 115,867 | (32,160) | (77,631) | (109,661) |
Other comprehensive income (loss) attributable to noncontrolling interests | 1,728 | (2,077) | (10,581) | (767) |
COMPREHENSIVE INCOME | 1,004,803 | 1,365,621 | 1,858,745 | 2,158,111 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 954,619 | 1,294,360 | 1,765,597 | 2,035,758 |
Comprehensive income attributable to noncontrolling interests | 50,184 | 71,261 | 93,148 | 122,353 |
COMPREHENSIVE INCOME | $ 1,004,803 | $ 1,365,621 | $ 1,858,745 | $ 2,158,111 |
CONSOLIDATED SHAREHOLDERS' EQUI
CONSOLIDATED SHAREHOLDERS' EQUITY STATEMENT - 6 months ended Feb. 28, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | 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 |
Beginning Balance at Aug. 31, 2016 | $ 8,189,376 | $ 57 | $ 15 | $ 0 | $ 1,004,128 | $ 2,924,729 | $ (2,591,907) | $ 7,879,960 | $ (1,661,720) | $ 7,555,262 | $ 634,114 |
Beginning Balance (in shares) at Aug. 31, 2016 | 40 | 654,203 | 21,917 | ||||||||
Beginning Balance Treasury (in shares) at Aug. 31, 2016 | (33,570) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,946,957 | 1,843,228 | 1,843,228 | 103,729 | |||||||
Other comprehensive income (loss) | (88,212) | (77,631) | (77,631) | (10,581) | |||||||
Purchases of Class A ordinary shares | (1,349,899) | 52,722 | $ (1,349,899) | (1,297,177) | (52,722) | ||||||
Purchases of Class A ordinary shares (in shares) | (11,546) | ||||||||||
Share-based compensation expense | 402,323 | 375,571 | 26,752 | 402,323 | |||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares, Accenture Canada Holdings Inc. exchangeable shares and Class X ordinary shares | (53,684) | (52,062) | (52,062) | (1,622) | |||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares, Accenture Canada Holdings Inc. exchangeable shares and Class X ordinary shares (in shares) | (918) | ||||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 350,901 | (527,848) | 523,780 | $ 341,403 | 337,335 | 13,566 | |||||
Employee share programs (in shares) | 7,262 | 3,200 | |||||||||
Upon redemption of Accenture Holdings plc ordinary shares (shares) | 492 | ||||||||||
Upon redemption of Accenture Holdings plc ordinary shares | 0 | 3,123 | 3,123 | (3,123) | |||||||
Dividends | (785,127) | 23,297 | (773,434) | (750,137) | (34,990) | ||||||
Other, net | 2,514 | (3,455) | 3,436 | (19) | 2,533 | ||||||
Ending Balance (in shares) at Feb. 28, 2017 | 40 | 661,957 | 20,999 | ||||||||
Ending Balance Treasury (in shares) at Feb. 28, 2017 | (41,916) | ||||||||||
Ending Balance at Feb. 28, 2017 | $ 8,615,149 | $ 57 | $ 15 | $ 0 | $ 875,148 | $ 3,475,589 | $ (3,600,403) | $ 8,953,190 | $ (1,739,351) | $ 7,964,245 | $ 650,904 |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,946,957 | $ 2,268,539 |
Adjustments to reconcile Net income to Net cash provided by operating activities — | ||
Depreciation, amortization and asset impairments | 375,240 | 354,627 |
Share-based compensation expense | 402,323 | 357,715 |
Gain (loss) on sale of businesses | 12,349 | (553,577) |
Deferred income taxes, net | (60,273) | (62,810) |
Other, net | (124,788) | (52,964) |
Change in assets and liabilities, net of acquisitions — | ||
Receivables from clients, net | (362,416) | (172,884) |
Unbilled services, current and non-current, net | 58,006 | (155,667) |
Other current and non-current assets | (263,458) | (383,309) |
Accounts payable | (73,976) | (75,286) |
Deferred revenues, current and non-current | 110,105 | 329,608 |
Accrued payroll and related benefits | (716,926) | (641,903) |
Income taxes payable, current and non-current | (2,658) | (184,712) |
Other current and non-current liabilities | (61,900) | (19,925) |
Net cash provided by (used in) operating activities | 1,238,585 | 1,007,452 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (188,962) | (242,845) |
Purchases of businesses and investments, net of cash acquired | (829,198) | (747,637) |
Proceeds from the sale of businesses and investments, net of cash transferred | (22,921) | 618,310 |
Proceeds from sales of property and equipment | 7,293 | 1,539 |
Net cash provided by (used in) investing activities | (1,033,788) | (370,633) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of ordinary shares | 350,901 | 303,167 |
Purchases of shares | (1,403,583) | (1,486,761) |
Proceeds from (repayments of) long-term debt, net | 361 | 378 |
Cash dividends paid | (785,127) | (720,676) |
Other, net | (6,647) | (12,313) |
Net cash provided by (used in) financing activities | (1,844,095) | (1,916,205) |
Effect of exchange rate changes on cash and cash equivalents | (27,449) | (46,721) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,666,747) | (1,326,107) |
CASH AND CASH EQUIVALENTS, beginning of period | 4,905,609 | 4,360,766 |
CASH AND CASH EQUIVALENTS, end of period | $ 3,238,862 | $ 3,034,659 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Feb. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 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,” the “Company” 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, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on October 28, 2016 . 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 the Company 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 six months ended February 28, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2017 . Allowances for Client Receivables and Unbilled Services As of February 28, 2017 and August 31, 2016 , total allowances recorded for client receivables and unbilled services were $75,885 and $79,440 , respectively. Accumulated Depreciation As of February 28, 2017 and August 31, 2016 , total accumulated depreciation was $1,832,022 and $1,730,025 , respectively. Recently Adopted Accounting Pronouncement On September 1, 2016, the Company early adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share-based payment transactions. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. The standard clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on the Company’s cash flows statement and provides an accounting policy election to account for forfeitures as they occur. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The primary impact of the adoption of the ASU on the Company’s Consolidated Financial Statements was the recognition of excess tax benefits in the provision for income taxes rather than Additional paid-in capital, which reduced income tax expense by $57,489 and $88,087 for the three and six months ended February 28, 2017 , respectively. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The Company also elected to retrospectively apply the presentation requirements for cash flows related to excess tax benefits for all periods presented, which resulted in an increase to both net cash provided by operating activities and net cash used in financing activities of $78,801 for the six months ended February 29, 2016. The presentation requirement for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in the Company’s consolidated cash flows statements since these cash flows have historically been presented as a financing activity. New Accounting Pronouncements The following standards, issued by the FASB, will, or are expected to, result in a change in practice and/or have a financial impact to the Company’s Consolidated Financial Statements: Standard Description Accenture Adoption Date Impact on the Financial Statements or Other Significant Matters 2016-16 : Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. Under current guidance in U.S. GAAP, in the case of depreciable or amortizable assets, the income tax consequences are deferred at the time of the intra-entity transfer and recognized as the assets are depreciated or amortized. The guidance requires modified retrospective transition with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. September 1, 2018 The Company is assessing the impact of this ASU on its Consolidated Financial Statements. 2016-02 : Leases The guidance amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. The guidance allows for a modified retrospective method upon adoption. September 1, 2019 While the Company is continuing to assess the potential impact of this ASU, it currently believes the most significant impact relates to its accounting for office space operating leases. The Company anticipates this ASU will have a material impact on its Consolidated Balance Sheets. However, the Company does not believe adoption will have a material impact on its Consolidated Income Statements. 2014-09 : (Accounting Standard Codification 606), Revenue from Contracts with Customers and related updates The guidance replaces most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The guidance allows for both retrospective and modified retrospective methods of adoption. September 1, 2018 The Company will apply the modified retrospective method of adoption. The Company has performed an initial assessment of the impact of the ASU on its policies, processes, systems and controls and is implementing system enhancements to generate the information necessary for the new disclosures. The Company expects revenue recognition across its portfolio of services to remain largely unchanged. However, the Company expects to recognize revenue earlier than it does under current guidance in a few areas, including accounting for variable fees and for certain consulting services, which will be recognized over time rather than at a point in time. While the Company has not finalized its assessment of the impact of the ASU, based on the analysis completed to date, the Company does not currently anticipate that the ASU will have a material impact on its Consolidated Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Basic Earnings per share Net income attributable to Accenture plc $ 838,752 $ 1,326,520 $ 1,843,228 $ 2,145,419 Basic weighted average Class A ordinary shares 621,999,948 626,523,793 621,787,252 626,505,960 Basic earnings per share $ 1.35 $ 2.12 $ 2.96 $ 3.42 Diluted Earnings per share Net income attributable to Accenture plc $ 838,752 $ 1,326,520 $ 1,843,228 $ 2,145,419 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 37,961 63,379 84,413 102,955 Net income for diluted earnings per share calculation $ 876,713 $ 1,389,899 $ 1,927,641 $ 2,248,374 Basic weighted average Class A ordinary shares 621,999,948 626,523,793 621,787,252 626,505,960 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 28,180,804 29,915,340 28,451,331 30,083,184 Diluted effect of employee compensation related to Class A ordinary shares 10,732,934 11,520,457 11,966,080 12,914,682 Diluted effect of share purchase plans related to Class A ordinary shares 165,689 165,497 242,017 254,764 Diluted weighted average Class A ordinary shares 661,079,375 668,125,087 662,446,680 669,758,590 Diluted earnings per share $ 1.33 $ 2.08 $ 2.91 $ 3.36 _______________ (1) Diluted earnings per share assumes the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests and 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 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 Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Foreign currency translation Beginning balance $ (1,110,654 ) $ (967,883 ) $ (919,963 ) $ (853,504 ) Foreign currency translation 84,249 (29,210 ) (119,476 ) (142,673 ) Income tax benefit (expense) (1,247 ) 2,865 (395 ) 1,493 Portion attributable to noncontrolling interests (230 ) 1,713 11,952 2,169 Foreign currency translation, net of tax 82,772 (24,632 ) (107,919 ) (139,011 ) Ending balance (1,027,882 ) (992,515 ) (1,027,882 ) (992,515 ) Defined benefit plans Beginning balance (798,072 ) (519,518 ) (809,504 ) (523,619 ) Reclassifications into net periodic pension and (6,794 ) 6,572 11,030 13,205 Income tax benefit (expense) (427 ) (2,858 ) (6,290 ) (5,194 ) Portion attributable to noncontrolling interests 324 (169 ) (205 ) (365 ) Defined benefit plans, net of tax (6,897 ) 3,545 4,535 7,646 Ending balance (804,969 ) (515,973 ) (804,969 ) (515,973 ) Cash flow hedges Beginning balance 53,508 (511 ) 68,011 (33,288 ) Unrealized gain (loss) 89,886 (23,599 ) 83,780 24,748 Reclassification adjustments into Cost of services (25,319 ) 2,529 (47,468 ) 3,979 Income tax benefit (expense) (22,753 ) 9,567 (9,672 ) (5,883 ) Portion attributable to noncontrolling interests (1,822 ) 528 (1,151 ) (1,042 ) Cash flow hedges, net of tax 39,992 (10,975 ) 25,489 21,802 Ending balance (2) 93,500 (11,486 ) 93,500 (11,486 ) Marketable securities Beginning balance — (1,561 ) (264 ) (1,561 ) Unrealized gain (loss) — (170 ) 462 (170 ) Income tax benefit (expense) — 67 (183 ) 67 Portion attributable to noncontrolling interests — 5 (15 ) 5 Marketable securities, net of tax — (98 ) 264 (98 ) Ending balance — (1,659 ) — (1,659 ) Accumulated other comprehensive loss $ (1,739,351 ) $ (1,521,633 ) $ (1,739,351 ) $ (1,521,633 ) _______________ (1) Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing and General and administrative costs. (2) As of February 28, 2017 , $77,921 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next 12 months. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Feb. 28, 2017 | |
Business Combination, Goodwill [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS During the six months ended February 28, 2017 , the Company completed several individually immaterial acquisitions for total consideration of $806,224 , net of cash acquired. The pro forma effects of these acquisitions on the Company’s operations were not material. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill by reportable operating segment were as follows: August 31, Additions/ Foreign February 28, Communications, Media & Technology $ 546,566 $ 85,908 $ (11,541 ) $ 620,933 Financial Services 854,376 137,643 (4,804 ) 987,215 Health & Public Service 715,849 86,358 (2,525 ) 799,682 Products 1,112,991 307,043 (25,219 ) 1,394,815 Resources 379,655 46,322 (4,615 ) 421,362 Total $ 3,609,437 $ 663,274 $ (48,704 ) $ 4,224,007 Goodwill includes immaterial adjustments related to prior period acquisitions. Intangible Assets The Company’s definite-lived intangible assets by major asset class were as follows: February 28, 2017 August 31, 2016 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 625,102 $ (184,679 ) $ 440,423 $ 532,753 $ (159,774 ) $ 372,979 Technology 99,302 (55,751 ) 43,551 100,363 (48,270 ) 52,093 Patents 120,946 (60,196 ) 60,750 118,906 (57,951 ) 60,955 Other 45,122 (16,783 ) 28,339 43,804 (19,680 ) 24,124 Total $ 890,472 $ (317,409 ) $ 573,063 $ 795,826 $ (285,675 ) $ 510,151 Total amortization related to the Company’s intangible assets was $33,324 and $66,452 for the three and six months ended February 28, 2017 , respectively. Total amortization related to the Company’s intangible assets was $29,640 and $57,364 for the three and six months ended February 29, 2016 , respectively. Estimated future amortization related to intangible assets held as of February 28, 2017 is as follows: Fiscal Year Estimated Amortization Remainder of 2017 $ 73,159 2018 111,841 2019 87,690 2020 77,576 2021 67,851 Thereafter 154,946 Total $ 573,063 |
MATERIAL TRANSACTIONS AFFECTING
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY | 6 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY Dividends The Company’s dividend activity during the six months ended February 28, 2017 was as follows: Dividend Per Accenture plc Class A Accenture Holdings plc Ordinary Total Cash Dividend Payment Date Record Date Cash Outlay Record Date Cash Outlay November 15, 2016 $ 1.21 October 21, 2016 $ 750,137 October 18, 2016 $ 34,990 $ 785,127 The payment of the cash dividends also resulted in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. Subsequent Event On March 20, 2017 , the Board of Directors of Accenture plc declared a semi-annual cash dividend of $1.21 per share on its Class A ordinary shares for shareholders of record at the close of business on April 13, 2017 . On March 20, 2017 , the Board of Directors of Accenture Holdings plc declared a semi-annual cash dividend of $1.21 per share on its ordinary shares for shareholders of record at the close of business on April 10, 2017 . Both dividends are payable on May 15, 2017 . The payment of the cash dividends will result in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Feb. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company’s derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts. Cash Flow Hedges For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and six months ended February 28, 2017 and February 29, 2016 , as well as those expected to be reclassified into Cost of services in the next 12 months, see Note 3 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements. Other Derivatives Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net gain of $19,780 and a net loss of $118,313 for the three and six months ended February 28, 2017 , respectively, and a net gain of $15,578 and a net loss of $57,399 for the three and six months ended February 29, 2016 , respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items. Fair Value of Derivative Instruments The notional and fair values of all derivative instruments were as follows: February 28, August 31, Assets Cash Flow Hedges Other current assets $ 101,134 $ 71,955 Other non-current assets 73,946 45,683 Other Derivatives Other current assets 11,713 11,965 Total assets $ 186,793 $ 129,603 Liabilities Cash Flow Hedges Other accrued liabilities $ 23,213 $ 10,820 Other non-current liabilities 15,642 5,547 Other Derivatives Other accrued liabilities 11,005 17,407 Total liabilities $ 49,860 $ 33,774 Total fair value $ 136,933 $ 95,829 Total notional value $ 7,652,299 $ 7,604,486 The Company utilizes standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, the Company records derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements was as follows: February 28, August 31, Net derivative assets $ 145,904 $ 114,785 Net derivative liabilities 8,971 18,956 Total fair value $ 136,933 $ 95,829 |
RETIREMENT AND PROFIT SHARING P
RETIREMENT AND PROFIT SHARING PLANS | 6 Months Ended |
Feb. 28, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. RETIREMENT AND PROFIT SHARING PLANS On March 18, 2016, Accenture plc’s Board of Directors approved an amendment to terminate the Company’s U.S. pension plan, effective May 30, 2016 , for all active and former employees who are no longer accruing benefits in the pension plan (approximately 16,200 people). The amendment also provides for the creation of a separate defined benefit plan with substantially the same terms for approximately 600 active employees who are currently eligible to accrue benefits. The U.S. pension plan is expected to be settled in the third quarter of fiscal 2017 , subject to receipt of customary regulatory approvals. The Company’s ultimate settlement obligation will depend upon both the nature and timing of participant settlements and prevailing market conditions. Upon settlement, the Company expects to recognize additional expense, consisting of unrecognized actuarial losses included in Accumulated other comprehensive loss that totaled approximately $467,000 as of August 31, 2016 , adjusted for the difference between the ultimate settlement obligation and the Company’s accrued pension obligation. The Company does not expect the settlement of the U.S. pension plan obligations to have a material impact on its cash position. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Feb. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company applies an estimated annual effective tax rate to its year-to-date operating results to determine the interim provision for income tax expense. In addition, the Company recognizes taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs. The Company’s effective tax rates for the three months ended February 28, 2017 and February 29, 2016 were 20.7% and 13.7% , respectively. The Company’s effective tax rates for the six months ended February 28, 2017 and February 29, 2016 were 20.5% and 20.4% , respectively. Absent the gain on the Navitaire divestiture and related tax impact recorded during the three months ended February 29, 2016, the effective tax rates would have been 15.4% and 22.8% for the three and six months ended February 29, 2016 , respectively. The effective tax rate for the six months ended February 28, 2017 benefited from the final determination of prior year U.S. taxes and the recognition of excess tax benefits from share based payments as a result of the early adoption of ASU No. 2016-09. This was partially offset by a net increase to prior year non-U.S. tax liabilities. The effective tax rate for the six months ended February 29, 2016 also benefited from the final determination of prior year U.S. taxes. As previously disclosed, on December 8, 2016, the Swiss Federal Tax Administration notified a subsidiary of Accenture that it has opened an investigation to examine the tax treatment of an August 2010 intercompany transfer of certain intellectual property. The tax treatment used in connection with the transfer was based on tax rulings we obtained from the relevant Swiss tax authorities and upon which we relied. The Swiss tax authorities have asserted that in connection with the transfer of the intellectual property, we underpaid income and withholding taxes. While we strongly disagree with the assertions made and will vigorously defend our position, we have been cooperating with the Swiss tax authorities. If the Swiss tax authorities were to prevail in this matter, taxes could be due, plus interest and possible penalties, which could be material. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Feb. 28, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The Company has the right to purchase or may also be required to purchase substantially all of the remaining outstanding shares of its Avanade Inc. subsidiary (“Avanade”) not owned by the Company at fair value if certain events occur. As of February 28, 2017 and August 31, 2016 , the Company has reflected the fair value of $50,500 and $54,221 , respectively, related to Avanade’s redeemable common stock and the intrinsic value of the options on redeemable common stock in Other accrued liabilities in the Consolidated Balance Sheets. Indemnifications and Guarantees In the normal course of business and in conjunction with certain client engagements, the Company has entered into contractual arrangements through which it may be obligated to indemnify clients with respect to certain matters. As of February 28, 2017 and August 31, 2016 , the Company’s aggregate potential liability to its clients for expressly limited guarantees involving the performance of third parties was approximately $569,000 and $749,000 , respectively, of which all but approximately $95,000 and $113,000 , respectively, may be recovered from the other third parties if the Company is obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, the Company cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement. To date, the Company has not been required to make any significant payment under any of the arrangements described above. The Company has assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations and/or indemnification provisions and believes that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole. Legal Contingencies As of February 28, 2017 , the Company or its present personnel had been named as a defendant in various litigation matters. The Company and/or its personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of its business around the world. Based on the present status of these matters, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on the Company’s results of operations or financial condition. See also Note 9 (Income Taxes) to these Consolidated Financial Statements under Item 1, “Financial Statements.” |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Feb. 28, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s reportable operating segments are the five operating groups, which are Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. Information regarding the Company’s reportable operating segments is as follows: Three Months Ended February 28, 2017 February 29, 2016 Net Operating Net Operating Communications, Media & Technology $ 1,620,728 $ 214,738 $ 1,606,700 $ 242,512 Financial Services 1,769,611 268,164 1,684,729 230,534 Health & Public Service 1,511,564 189,115 1,482,264 209,795 Products 2,264,828 363,762 1,994,530 286,336 Resources 1,144,725 102,874 1,173,997 118,867 Other 6,215 — 3,345 — Total $ 8,317,671 $ 1,138,653 $ 7,945,565 $ 1,088,044 Six Months Ended February 28, 2017 February 29, 2016 Net Operating Net Operating Communications, Media & Technology $ 3,306,924 $ 472,582 $ 3,211,339 $ 490,385 Financial Services 3,579,380 587,653 3,429,945 553,319 Health & Public Service 3,012,338 388,342 2,906,131 382,373 Products 4,584,997 772,461 3,984,653 577,559 Resources 2,339,583 249,574 2,419,081 305,668 Other 9,966 — 7,579 — Total $ 16,833,188 $ 2,470,612 $ 15,958,728 $ 2,309,304 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Feb. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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,” the “Company” 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, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on October 28, 2016 . 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 the Company 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 six months ended February 28, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2017 . |
New Accounting Pronouncements and Changes in Accounting Principles | Recently Adopted Accounting Pronouncement On September 1, 2016, the Company early adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share-based payment transactions. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. The standard clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on the Company’s cash flows statement and provides an accounting policy election to account for forfeitures as they occur. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. The primary impact of the adoption of the ASU on the Company’s Consolidated Financial Statements was the recognition of excess tax benefits in the provision for income taxes rather than Additional paid-in capital, which reduced income tax expense by $57,489 and $88,087 for the three and six months ended February 28, 2017 , respectively. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The Company also elected to retrospectively apply the presentation requirements for cash flows related to excess tax benefits for all periods presented, which resulted in an increase to both net cash provided by operating activities and net cash used in financing activities of $78,801 for the six months ended February 29, 2016. The presentation requirement for cash flows related to employee taxes paid for withheld shares had no impact to any of the periods presented in the Company’s consolidated cash flows statements since these cash flows have historically been presented as a financing activity. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements The following standards, issued by the FASB, will, or are expected to, result in a change in practice and/or have a financial impact to the Company’s Consolidated Financial Statements: Standard Description Accenture Adoption Date Impact on the Financial Statements or Other Significant Matters 2016-16 : Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory The guidance requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. Under current guidance in U.S. GAAP, in the case of depreciable or amortizable assets, the income tax consequences are deferred at the time of the intra-entity transfer and recognized as the assets are depreciated or amortized. The guidance requires modified retrospective transition with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. September 1, 2018 The Company is assessing the impact of this ASU on its Consolidated Financial Statements. 2016-02 : Leases The guidance amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. The guidance allows for a modified retrospective method upon adoption. September 1, 2019 While the Company is continuing to assess the potential impact of this ASU, it currently believes the most significant impact relates to its accounting for office space operating leases. The Company anticipates this ASU will have a material impact on its Consolidated Balance Sheets. However, the Company does not believe adoption will have a material impact on its Consolidated Income Statements. 2014-09 : (Accounting Standard Codification 606), Revenue from Contracts with Customers and related updates The guidance replaces most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The guidance allows for both retrospective and modified retrospective methods of adoption. September 1, 2018 The Company will apply the modified retrospective method of adoption. The Company has performed an initial assessment of the impact of the ASU on its policies, processes, systems and controls and is implementing system enhancements to generate the information necessary for the new disclosures. The Company expects revenue recognition across its portfolio of services to remain largely unchanged. However, the Company expects to recognize revenue earlier than it does under current guidance in a few areas, including accounting for variable fees and for certain consulting services, which will be recognized over time rather than at a point in time. While the Company has not finalized its assessment of the impact of the ASU, based on the analysis completed to date, the Company does not currently anticipate that the ASU will have a material impact on its Consolidated Financial Statements. |
INCOME TAXES (Policies)
INCOME TAXES (Policies) | 6 Months Ended |
Feb. 28, 2017 | |
Accounting Policies [Abstract] | |
Income Taxes | The Company applies an estimated annual effective tax rate to its year-to-date operating results to determine the interim provision for income tax expense. In addition, the Company recognizes taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Policies) | 6 Months Ended |
Feb. 28, 2017 | |
Accounting Policies [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | Indemnifications and Guarantees In the normal course of business and in conjunction with certain client engagements, the Company has entered into contractual arrangements through which it may be obligated to indemnify clients with respect to certain matters. As of February 28, 2017 and August 31, 2016 , the Company’s aggregate potential liability to its clients for expressly limited guarantees involving the performance of third parties was approximately $569,000 and $749,000 , respectively, of which all but approximately $95,000 and $113,000 , respectively, may be recovered from the other third parties if the Company is obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, the Company cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Basic Earnings per share Net income attributable to Accenture plc $ 838,752 $ 1,326,520 $ 1,843,228 $ 2,145,419 Basic weighted average Class A ordinary shares 621,999,948 626,523,793 621,787,252 626,505,960 Basic earnings per share $ 1.35 $ 2.12 $ 2.96 $ 3.42 Diluted Earnings per share Net income attributable to Accenture plc $ 838,752 $ 1,326,520 $ 1,843,228 $ 2,145,419 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 37,961 63,379 84,413 102,955 Net income for diluted earnings per share calculation $ 876,713 $ 1,389,899 $ 1,927,641 $ 2,248,374 Basic weighted average Class A ordinary shares 621,999,948 626,523,793 621,787,252 626,505,960 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 28,180,804 29,915,340 28,451,331 30,083,184 Diluted effect of employee compensation related to Class A ordinary shares 10,732,934 11,520,457 11,966,080 12,914,682 Diluted effect of share purchase plans related to Class A ordinary shares 165,689 165,497 242,017 254,764 Diluted weighted average Class A ordinary shares 661,079,375 668,125,087 662,446,680 669,758,590 Diluted earnings per share $ 1.33 $ 2.08 $ 2.91 $ 3.36 _______________ (1) Diluted earnings per share assumes the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests and 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. |
ACCUMULATED OTHER COMPREHENSI23
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
Schedule of 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 Six Months Ended February 28, 2017 February 29, 2016 February 28, 2017 February 29, 2016 Foreign currency translation Beginning balance $ (1,110,654 ) $ (967,883 ) $ (919,963 ) $ (853,504 ) Foreign currency translation 84,249 (29,210 ) (119,476 ) (142,673 ) Income tax benefit (expense) (1,247 ) 2,865 (395 ) 1,493 Portion attributable to noncontrolling interests (230 ) 1,713 11,952 2,169 Foreign currency translation, net of tax 82,772 (24,632 ) (107,919 ) (139,011 ) Ending balance (1,027,882 ) (992,515 ) (1,027,882 ) (992,515 ) Defined benefit plans Beginning balance (798,072 ) (519,518 ) (809,504 ) (523,619 ) Reclassifications into net periodic pension and (6,794 ) 6,572 11,030 13,205 Income tax benefit (expense) (427 ) (2,858 ) (6,290 ) (5,194 ) Portion attributable to noncontrolling interests 324 (169 ) (205 ) (365 ) Defined benefit plans, net of tax (6,897 ) 3,545 4,535 7,646 Ending balance (804,969 ) (515,973 ) (804,969 ) (515,973 ) Cash flow hedges Beginning balance 53,508 (511 ) 68,011 (33,288 ) Unrealized gain (loss) 89,886 (23,599 ) 83,780 24,748 Reclassification adjustments into Cost of services (25,319 ) 2,529 (47,468 ) 3,979 Income tax benefit (expense) (22,753 ) 9,567 (9,672 ) (5,883 ) Portion attributable to noncontrolling interests (1,822 ) 528 (1,151 ) (1,042 ) Cash flow hedges, net of tax 39,992 (10,975 ) 25,489 21,802 Ending balance (2) 93,500 (11,486 ) 93,500 (11,486 ) Marketable securities Beginning balance — (1,561 ) (264 ) (1,561 ) Unrealized gain (loss) — (170 ) 462 (170 ) Income tax benefit (expense) — 67 (183 ) 67 Portion attributable to noncontrolling interests — 5 (15 ) 5 Marketable securities, net of tax — (98 ) 264 (98 ) Ending balance — (1,659 ) — (1,659 ) Accumulated other comprehensive loss $ (1,739,351 ) $ (1,521,633 ) $ (1,739,351 ) $ (1,521,633 ) _______________ (1) Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing and General and administrative costs. (2) As of February 28, 2017 , $77,921 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next 12 months. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by reportable operating segment were as follows: August 31, Additions/ Foreign February 28, Communications, Media & Technology $ 546,566 $ 85,908 $ (11,541 ) $ 620,933 Financial Services 854,376 137,643 (4,804 ) 987,215 Health & Public Service 715,849 86,358 (2,525 ) 799,682 Products 1,112,991 307,043 (25,219 ) 1,394,815 Resources 379,655 46,322 (4,615 ) 421,362 Total $ 3,609,437 $ 663,274 $ (48,704 ) $ 4,224,007 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company’s definite-lived intangible assets by major asset class were as follows: February 28, 2017 August 31, 2016 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 625,102 $ (184,679 ) $ 440,423 $ 532,753 $ (159,774 ) $ 372,979 Technology 99,302 (55,751 ) 43,551 100,363 (48,270 ) 52,093 Patents 120,946 (60,196 ) 60,750 118,906 (57,951 ) 60,955 Other 45,122 (16,783 ) 28,339 43,804 (19,680 ) 24,124 Total $ 890,472 $ (317,409 ) $ 573,063 $ 795,826 $ (285,675 ) $ 510,151 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Estimated Amortization Remainder of 2017 $ 73,159 2018 111,841 2019 87,690 2020 77,576 2021 67,851 Thereafter 154,946 Total $ 573,063 |
MATERIAL TRANSACTIONS AFFECTI25
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Equity [Abstract] | |
Schedule of Dividend Activity | The Company’s dividend activity during the six months ended February 28, 2017 was as follows: Dividend Per Accenture plc Class A Accenture Holdings plc Ordinary Total Cash Dividend Payment Date Record Date Cash Outlay Record Date Cash Outlay November 15, 2016 $ 1.21 October 21, 2016 $ 750,137 October 18, 2016 $ 34,990 $ 785,127 |
DERIVATIVE FINANCIAL INSTRUME26
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Values of All Derivative Instruments | The notional and fair values of all derivative instruments were as follows: February 28, August 31, Assets Cash Flow Hedges Other current assets $ 101,134 $ 71,955 Other non-current assets 73,946 45,683 Other Derivatives Other current assets 11,713 11,965 Total assets $ 186,793 $ 129,603 Liabilities Cash Flow Hedges Other accrued liabilities $ 23,213 $ 10,820 Other non-current liabilities 15,642 5,547 Other Derivatives Other accrued liabilities 11,005 17,407 Total liabilities $ 49,860 $ 33,774 Total fair value $ 136,933 $ 95,829 Total notional value $ 7,652,299 $ 7,604,486 |
Offsetting Derivative Assets and Liabilities Table | The Company utilizes standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, the Company records derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements was as follows: February 28, August 31, Net derivative assets $ 145,904 $ 114,785 Net derivative liabilities 8,971 18,956 Total fair value $ 136,933 $ 95,829 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | The Company’s reportable operating segments are the five operating groups, which are Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. Information regarding the Company’s reportable operating segments is as follows: Three Months Ended February 28, 2017 February 29, 2016 Net Operating Net Operating Communications, Media & Technology $ 1,620,728 $ 214,738 $ 1,606,700 $ 242,512 Financial Services 1,769,611 268,164 1,684,729 230,534 Health & Public Service 1,511,564 189,115 1,482,264 209,795 Products 2,264,828 363,762 1,994,530 286,336 Resources 1,144,725 102,874 1,173,997 118,867 Other 6,215 — 3,345 — Total $ 8,317,671 $ 1,138,653 $ 7,945,565 $ 1,088,044 Six Months Ended February 28, 2017 February 29, 2016 Net Operating Net Operating Communications, Media & Technology $ 3,306,924 $ 472,582 $ 3,211,339 $ 490,385 Financial Services 3,579,380 587,653 3,429,945 553,319 Health & Public Service 3,012,338 388,342 2,906,131 382,373 Products 4,584,997 772,461 3,984,653 577,559 Resources 2,339,583 249,574 2,419,081 305,668 Other 9,966 — 7,579 — Total $ 16,833,188 $ 2,470,612 $ 15,958,728 $ 2,309,304 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Allowance for doubtful accounts receivable and unbilled services | $ 75,885 | $ 75,885 | $ 79,440 | ||
Accumulated depreciation | 1,832,022 | 1,832,022 | $ 1,730,025 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Income Tax Expense (Benefit) | 231,302 | $ 222,734 | 502,674 | $ 582,416 | |
Net Cash Provided by (Used in) Financing Activities | (1,844,095) | (1,916,205) | |||
Net Cash Provided by (Used in) Operating Activities | 1,238,585 | 1,007,452 | |||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Income Tax Expense (Benefit) | $ 57,489 | $ 88,087 | |||
Net Cash Provided by (Used in) Financing Activities | 78,801 | ||||
Net Cash Provided by (Used in) Operating Activities | $ 78,801 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | ||
Basic Earnings per share | |||||
Net income attributable to Accenture plc | $ 838,752 | $ 1,326,520 | $ 1,843,228 | $ 2,145,419 | |
Basic weighted average Class A ordinary shares | 621,999,948 | 626,523,793 | 621,787,252 | 626,505,960 | |
Basic earnings per share | $ 1.35 | $ 2.12 | $ 2.96 | $ 3.42 | |
Diluted Earnings per share | |||||
Net income attributable to Accenture plc | $ 838,752 | $ 1,326,520 | $ 1,843,228 | $ 2,145,419 | |
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) | [1] | 37,961 | 63,379 | 84,413 | 102,955 |
Net income for diluted earnings per share calculation | $ 876,713 | $ 1,389,899 | $ 1,927,641 | $ 2,248,374 | |
Basic weighted average Class A ordinary shares | 621,999,948 | 626,523,793 | 621,787,252 | 626,505,960 | |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) | [1] | 28,180,804 | 29,915,340 | 28,451,331 | 30,083,184 |
Diluted effect of employee compensation related to Class A ordinary shares | 10,732,934 | 11,520,457 | 11,966,080 | 12,914,682 | |
Diluted effect of share purchase plans related to Class A ordinary shares | 165,689 | 165,497 | 242,017 | 254,764 | |
Diluted weighted average Class A ordinary shares | 661,079,375 | 668,125,087 | 662,446,680 | 669,758,590 | |
Diluted earnings per share | $ 1.33 | $ 2.08 | $ 2.91 | $ 3.36 | |
[1] | Diluted earnings per share assumes the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests and 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. |
ACCUMULATED OTHER COMPREHENSI30
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | ||
Foreign currency translation | ||||||
Beginning balance | $ (1,110,654) | $ (967,883) | $ (919,963) | $ (853,504) | ||
Foreign currency translation | 84,249 | (29,210) | (119,476) | (142,673) | ||
Income tax benefit (expense) | (1,247) | 2,865 | (395) | 1,493 | ||
Portion attributable to noncontrolling interests | (230) | 1,713 | 11,952 | 2,169 | ||
Foreign currency translation, net of tax | 82,772 | (24,632) | (107,919) | (139,011) | ||
Ending balance | (1,027,882) | (992,515) | (1,027,882) | (992,515) | ||
Defined benefit plans | ||||||
Beginning balance | (798,072) | (519,518) | (809,504) | (523,619) | ||
Reclassifications into net periodic pension and post-retirement expense (1) | [1] | (6,794) | 6,572 | 11,030 | 13,205 | |
Income tax benefit (expense) | (427) | (2,858) | (6,290) | (5,194) | ||
Portion attributable to noncontrolling interests | 324 | (169) | (205) | (365) | ||
Defined benefit plans, net of tax | (6,897) | 3,545 | 4,535 | 7,646 | ||
Ending balance | (804,969) | (515,973) | (804,969) | (515,973) | ||
Cash flow hedges | ||||||
Beginning balance | 53,508 | (511) | 68,011 | (33,288) | ||
Unrealized gain (loss) | 89,886 | (23,599) | 83,780 | 24,748 | ||
Reclassification adjustments into Cost of services | (25,319) | 2,529 | (47,468) | 3,979 | ||
Income tax benefit (expense) | (22,753) | 9,567 | (9,672) | (5,883) | ||
Portion attributable to noncontrolling interests | (1,822) | 528 | (1,151) | (1,042) | ||
Cash flow hedges, net of tax | 39,992 | (10,975) | 25,489 | 21,802 | ||
Ending balance (2) | [2] | 93,500 | (11,486) | 93,500 | (11,486) | |
Marketable securities | ||||||
Beginning balance | 0 | (1,561) | (264) | (1,561) | ||
Unrealized gain (loss) | 0 | (170) | 462 | (170) | ||
Income tax benefit (expense) | 0 | 67 | (183) | 67 | ||
Portion attributable to noncontrolling interests | 0 | 5 | (15) | 5 | ||
Marketable securities, net of tax | 0 | (98) | 264 | (98) | ||
Ending balance | 0 | (1,659) | 0 | (1,659) | ||
Accumulated other comprehensive loss | $ (1,739,351) | $ (1,521,633) | $ (1,739,351) | $ (1,521,633) | $ (1,661,720) | |
[1] | Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing and General and administrative costs. | |||||
[2] | As of February 28, 2017, $77,921 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next 12 months. |
ACCUMULATED OTHER COMPREHENSI31
ACCUMULATED OTHER COMPREHENSIVE LOSS Derivatives Designated as Cash Flow Hedges (Details) $ in Thousands | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Cost Of Services [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 77,921 |
BUSINESS COMBINATIONS- Addition
BUSINESS COMBINATIONS- Additional Information (Detail) $ in Thousands | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisitions [Line Items] | |
Cash Consideration | $ 806,224 |
GOODWILL AND INTANGIBLE ASSET33
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 3,609,437 |
Goodwill Acquired During Period And Adjustments | 663,274 |
Goodwill, Translation Adjustments | (48,704) |
Goodwill | 4,224,007 |
Communications, Media & Technology | |
Goodwill [Line Items] | |
Goodwill | 546,566 |
Goodwill Acquired During Period And Adjustments | 85,908 |
Goodwill, Translation Adjustments | (11,541) |
Goodwill | 620,933 |
Financial Services | |
Goodwill [Line Items] | |
Goodwill | 854,376 |
Goodwill Acquired During Period And Adjustments | 137,643 |
Goodwill, Translation Adjustments | (4,804) |
Goodwill | 987,215 |
Health & Public Service | |
Goodwill [Line Items] | |
Goodwill | 715,849 |
Goodwill Acquired During Period And Adjustments | 86,358 |
Goodwill, Translation Adjustments | (2,525) |
Goodwill | 799,682 |
Products | |
Goodwill [Line Items] | |
Goodwill | 1,112,991 |
Goodwill Acquired During Period And Adjustments | 307,043 |
Goodwill, Translation Adjustments | (25,219) |
Goodwill | 1,394,815 |
Resources | |
Goodwill [Line Items] | |
Goodwill | 379,655 |
Goodwill Acquired During Period And Adjustments | 46,322 |
Goodwill, Translation Adjustments | (4,615) |
Goodwill | $ 421,362 |
GOODWILL AND INTANGIBLE ASSET34
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 890,472 | $ 795,826 |
Accumulated Amortization | (317,409) | (285,675) |
Net Carrying Amount | 573,063 | 510,151 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 625,102 | 532,753 |
Accumulated Amortization | (184,679) | (159,774) |
Net Carrying Amount | 440,423 | 372,979 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 99,302 | 100,363 |
Accumulated Amortization | (55,751) | (48,270) |
Net Carrying Amount | 43,551 | 52,093 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 120,946 | 118,906 |
Accumulated Amortization | (60,196) | (57,951) |
Net Carrying Amount | 60,750 | 60,955 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,122 | 43,804 |
Accumulated Amortization | (16,783) | (19,680) |
Net Carrying Amount | $ 28,339 | $ 24,124 |
GOODWILL AND INTANGIBLE ASSET35
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of Intangible Assets | $ 33,324 | $ 29,640 | $ 66,452 | $ 57,364 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 73,159 | 73,159 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 111,841 | 111,841 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 87,690 | 87,690 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 77,576 | 77,576 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 67,851 | 67,851 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 154,946 | 154,946 | |||
Net Carrying Amount | $ 573,063 | $ 573,063 | $ 510,151 |
MATERIAL TRANSACTIONS AFFECTI36
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Dividends [Line Items] | ||||
Dividend Per Share | $ 0 | $ 0 | $ 1.21 | $ 1.10 |
Dividend Payment November 2016 [Member] | ||||
Dividends [Line Items] | ||||
Dividend Payment Date | Nov. 15, 2016 | |||
Dividend Per Share | $ 1.21 | |||
Cash Outlay | $ 785,127 | |||
Dividend Payment November 2016 [Member] | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||||
Dividends [Line Items] | ||||
Record Date | Oct. 18, 2016 | |||
Cash Outlay | $ 34,990 | |||
Dividend Payment November 2016 [Member] | Class A ordinary shares | ||||
Dividends [Line Items] | ||||
Record Date | Oct. 21, 2016 | |||
Cash Outlay | $ 750,137 |
MATERIAL TRANSACTIONS AFFECTI37
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Subsequent Event - Additional Information (Details) - Dividend Declared [Member] | Mar. 20, 2017$ / shares |
Class A Ordinary Shares | |
Dividends Payable [Line Items] | |
Cash dividend declared date | Mar. 20, 2017 |
Cash dividend declared - $/ shares | $ 1.21 |
Cash dividend record date | Apr. 13, 2017 |
Cash dividend payment date | May 15, 2017 |
Accenture Holdings plc ordinary [Member] | |
Dividends Payable [Line Items] | |
Cash dividend declared date | Mar. 20, 2017 |
Cash dividend declared - $/ shares | $ 1.21 |
Cash dividend record date | Apr. 10, 2017 |
Cash dividend payment date | May 15, 2017 |
DERIVATIVE FINANCIAL INSTRUME38
DERIVATIVE FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Detail) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Assets | ||
Fair value of derivative assets | $ 186,793 | $ 129,603 |
Liabilities | ||
Fair value of derivative liabilities | 49,860 | 33,774 |
Total fair value | 136,933 | 95,829 |
Total notional value | 7,652,299 | 7,604,486 |
Cash Flow Hedging [Member] | Other current assets | ||
Assets | ||
Fair value of derivative assets | 101,134 | 71,955 |
Cash Flow Hedging [Member] | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 73,946 | 45,683 |
Cash Flow Hedging [Member] | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 23,213 | 10,820 |
Cash Flow Hedging [Member] | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 15,642 | 5,547 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 11,713 | 11,965 |
Other Derivatives | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | $ 11,005 | $ 17,407 |
DERIVATIVE FINANCIAL INSTRUME39
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized gains or (losses) and changes in the estimated fair value of derivatives not designated as hedges | $ 19,780 | $ 15,578 | $ (118,313) | $ (57,399) |
DERIVATIVE FINANCIAL INSTRUME40
DERIVATIVE FINANCIAL INSTRUMENTS Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Offsetting Derivative Assets and Liabilities [Abstract] | ||
Net derivative assets | $ 145,904 | $ 114,785 |
Net derivative liabilities | 8,971 | 18,956 |
Total fair value | $ 136,933 | $ 95,829 |
RETIREMENT AND PROFIT SHARING41
RETIREMENT AND PROFIT SHARING PLANS (Details) $ in Thousands | Mar. 18, 2016employee | Aug. 31, 2016USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Company’s U.S. pension plan active and terminated employees who are no longer accruing benefits in the pension plan. | 16,200 | |
Active employees in the U.S. pension plan who are currently eligible to accrue benefits under the creation of a separate defined benefit plan | 600 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | $ | $ (467,000) |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 20.70% | 13.70% | 20.50% | 20.40% |
Effective Income Tax Rate Excluding Effect Of Gain On Sale of Business | 15.40% | 22.80% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 28, 2017 | Aug. 31, 2016 |
Commitments [Abstract] | ||
Fair value of Avanade redeemable common stock and options | $ 50,500 | $ 54,221 |
Indemnifications and Guarantees [Abstract] | ||
Expressly limited performance guarantee | 569,000 | 749,000 |
Portion of guarantee not recoverable | $ 95,000 | $ 113,000 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 8,317,671 | $ 7,945,565 | $ 16,833,188 | $ 15,958,728 |
Operating Income | 1,138,653 | 1,088,044 | 2,470,612 | 2,309,304 |
Communications, Media & Technology | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 1,620,728 | 1,606,700 | 3,306,924 | 3,211,339 |
Operating Income | 214,738 | 242,512 | 472,582 | 490,385 |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 1,769,611 | 1,684,729 | 3,579,380 | 3,429,945 |
Operating Income | 268,164 | 230,534 | 587,653 | 553,319 |
Health & Public Service | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 1,511,564 | 1,482,264 | 3,012,338 | 2,906,131 |
Operating Income | 189,115 | 209,795 | 388,342 | 382,373 |
Products | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 2,264,828 | 1,994,530 | 4,584,997 | 3,984,653 |
Operating Income | 363,762 | 286,336 | 772,461 | 577,559 |
Resources | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 1,144,725 | 1,173,997 | 2,339,583 | 2,419,081 |
Operating Income | 102,874 | 118,867 | 249,574 | 305,668 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 6,215 | 3,345 | 9,966 | 7,579 |
Operating Income | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) | 6 Months Ended |
Feb. 28, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |