Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2018 | Jun. 14, 2018 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 674,019,792 | |
Class X Ordinary Shares | ||
Entity Common Stock, Shares Outstanding | 664,761 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,928,845 | $ 4,126,860 |
Short-term investments | 3,261 | 3,011 |
Receivables from clients, net | 4,986,652 | 4,569,214 |
Unbilled services, net | 2,460,047 | 2,316,043 |
Other current assets | 958,067 | 1,082,161 |
Total current assets | 12,336,872 | 12,097,289 |
NON-CURRENT ASSETS: | ||
Unbilled services, net | 42,465 | 40,938 |
Investments | 208,557 | 211,610 |
Property and equipment, net | 1,228,946 | 1,140,598 |
Goodwill | 5,275,293 | 5,002,352 |
Deferred contract costs | 728,582 | 755,871 |
Deferred income taxes, net | 2,269,992 | 2,214,901 |
Other non-current assets | 1,160,086 | 1,226,331 |
Total non-current assets | 10,913,921 | 10,592,601 |
TOTAL ASSETS | 23,250,793 | 22,689,890 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 2,840 | 2,907 |
Accounts payable | 1,388,989 | 1,525,065 |
Deferred revenues | 2,744,402 | 2,669,520 |
Accrued payroll and related benefits | 4,000,562 | 4,060,364 |
Accrued consumption taxes | 424,100 | 383,391 |
Income taxes payable | 483,723 | 708,485 |
Other accrued liabilities | 508,980 | 474,547 |
Total current liabilities | 9,553,596 | 9,824,279 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 25,958 | 22,163 |
Deferred revenues | 635,737 | 663,248 |
Retirement obligation | 1,448,608 | 1,408,759 |
Deferred income taxes, net | 132,324 | 137,098 |
Income taxes payable | 902,337 | 574,780 |
Other non-current liabilities | 399,497 | 349,363 |
Total non-current liabilities | 3,544,461 | 3,155,411 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 1,110,951 | 1,095,026 |
Additional paid-in capital | 4,934,185 | 3,516,399 |
Treasury shares, at cost: Ordinary, 40,000 shares as of May 31, 2018 and August 31, 2017; Class A ordinary, 32,973,325 and 23,408,811 shares as of May 31, 2018 and August 31, 2017, respectively | (3,201,012) | (1,649,090) |
Retained earnings | 8,296,830 | 7,081,855 |
Accumulated other comprehensive loss | (1,343,701) | (1,094,784) |
Total Accenture plc shareholders’ equity | 9,797,325 | 8,949,477 |
Noncontrolling interests | 355,411 | 760,723 |
Total shareholders’ equity | 10,152,736 | 9,710,200 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 23,250,793 | 22,689,890 |
Ordinary Shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | 57 | 57 |
Class A ordinary shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | 15 | 14 |
Class X Ordinary Shares | ||
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares, value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | May 31, 2018$ / sharesshares | May 31, 2018€ / sharesshares | Aug. 31, 2017$ / sharesshares | Aug. 31, 2017€ / 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 | 673,861,860 | 673,861,860 | 638,965,789 | 638,965,789 |
Treasury shares, ordinary shares | 32,973,325 | 32,973,325 | 23,408,811 | 23,408,811 |
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 | 664,761 | 664,761 | 20,531,383 | 20,531,383 |
Ordinary shares, shares outstanding | 664,761 | 664,761 | 20,531,383 | 20,531,383 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
REVENUES: | ||||
Revenues before reimbursements (“Net revenues”) | $ 10,314,999 | $ 8,867,036 | $ 29,423,663 | $ 25,700,224 |
Reimbursements | 523,855 | 489,751 | 1,537,516 | 1,424,348 |
Revenues | 10,838,854 | 9,356,787 | 30,961,179 | 27,124,572 |
Cost of services: | ||||
Cost of services before reimbursable expenses | 6,995,871 | 5,957,405 | 20,203,881 | 17,556,405 |
Reimbursable expenses | 523,855 | 489,751 | 1,537,516 | 1,424,348 |
Cost of services | 7,519,726 | 6,447,156 | 21,741,397 | 18,980,753 |
Sales and marketing | 1,107,138 | 986,228 | 3,108,316 | 2,746,544 |
General and administrative costs | 592,264 | 548,175 | 1,723,096 | 1,551,435 |
Pension settlement charge | 0 | 509,793 | 0 | 509,793 |
Total operating expenses | 9,219,128 | 8,491,352 | 26,572,809 | 23,788,525 |
OPERATING INCOME | 1,619,726 | 865,435 | 4,388,370 | 3,336,047 |
Interest income | 12,687 | 8,549 | 33,582 | 25,574 |
Interest expense | (5,839) | (3,613) | (14,386) | (10,637) |
Other income (expense), net | (14,016) | (4,213) | (56,087) | (22,846) |
Gain (loss) on sale of businesses | 0 | 8,242 | 0 | (4,107) |
INCOME BEFORE INCOME TAXES | 1,612,558 | 874,400 | 4,351,479 | 3,324,031 |
Provision for income taxes | 554,417 | 169,599 | 1,185,256 | 672,273 |
NET INCOME | 1,058,141 | 704,801 | 3,166,223 | 2,651,758 |
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. | (6,997) | (23,024) | (93,531) | (107,437) |
Net income attributable to noncontrolling interests – other | (8,124) | (12,309) | (42,309) | (31,625) |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,043,020 | $ 669,468 | $ 3,030,383 | $ 2,512,696 |
Weighted average Class A ordinary shares: | ||||
Basic | 639,217,344 | 619,436,804 | 624,365,464 | 621,025,256 |
Diluted | 654,600,026 | 658,770,425 | 655,739,568 | 661,130,306 |
Earnings per Class A ordinary share: | ||||
Basic | $ 1.63 | $ 1.08 | $ 4.85 | $ 4.05 |
Diluted | 1.60 | 1.05 | 4.76 | 3.96 |
Cash dividends per share | $ 1.33 | $ 1.21 | $ 2.66 | $ 2.42 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 1,058,141 | $ 704,801 | $ 3,166,223 | $ 2,651,758 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation | (230,997) | 93,168 | (136,706) | (14,751) |
Defined benefit plans | (2,683) | 277,764 | 11,436 | 282,299 |
Cash flow hedges | (43,801) | 32,896 | (124,795) | 58,385 |
Investments | 46 | 0 | 1,148 | 264 |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | (277,435) | 403,828 | (248,917) | 326,197 |
Other comprehensive income (loss) attributable to noncontrolling interests | (5,926) | 22,955 | 340 | 12,374 |
COMPREHENSIVE INCOME | 774,780 | 1,131,584 | 2,917,646 | 2,990,329 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 765,585 | 1,073,296 | 2,781,466 | 2,838,893 |
Comprehensive income attributable to noncontrolling interests | 9,195 | 58,288 | 136,180 | 151,436 |
COMPREHENSIVE INCOME | $ 774,780 | $ 1,131,584 | $ 2,917,646 | $ 2,990,329 |
CONSOLIDATED SHAREHOLDERS' EQUI
CONSOLIDATED SHAREHOLDERS' EQUITY STATEMENT - 9 months ended May 31, 2018 - 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, 2017 | $ 9,710,200 | $ 57 | $ 14 | $ 0 | $ 1,095,026 | $ 3,516,399 | $ (1,649,090) | $ 7,081,855 | $ (1,094,784) | $ 8,949,477 | $ 760,723 |
Beginning Balance (in shares) at Aug. 31, 2017 | 40 | 638,966 | 20,531 | ||||||||
Beginning Balance Treasury (in shares) at Aug. 31, 2017 | (23,449) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 3,166,223 | 3,030,383 | 3,030,383 | 135,840 | |||||||
Other comprehensive income (loss) | (248,577) | (248,917) | (248,917) | 340 | |||||||
Purchases of Class A ordinary shares | (2,004,114) | 49,029 | $ (2,004,114) | (1,955,085) | (49,029) | ||||||
Purchases of Class A ordinary shares (in shares) | (13,337) | ||||||||||
Share-based compensation expense | 751,826 | 688,719 | 63,107 | 751,826 | |||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares, Accenture Canada Holdings Inc. exchangeable shares and Class X ordinary shares | (83,156) | (78,318) | (78,318) | (4,838) | |||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares, Accenture Canada Holdings Inc. exchangeable shares and Class X ordinary shares (in shares) | (812) | ||||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 666,830 | (729,020) | 997,725 | $ 452,192 | (68,656) | 652,241 | 14,589 | ||||
Employee share programs (in shares) | 8,990 | 3,773 | |||||||||
Upon redemption of Accenture Holdings plc ordinary shares (shares) | 25,906 | (19,054) | |||||||||
Upon redemption of Accenture Holdings plc ordinary shares | $ 1 | ||||||||||
Upon redemption of Accenture Holdings plc ordinary shares | 0 | 408,652 | 408,653 | (408,653) | |||||||
Dividends | (1,708,724) | 56,226 | (1,727,298) | (1,671,072) | (37,652) | ||||||
Other, net | (97,772) | (22,409) | (19,454) | (41,863) | (55,909) | ||||||
Ending Balance (in shares) at May. 31, 2018 | 40 | 673,862 | 665 | ||||||||
Ending Balance Treasury (in shares) at May. 31, 2018 | (33,013) | ||||||||||
Ending Balance at May. 31, 2018 | $ 10,152,736 | $ 57 | $ 15 | $ 0 | $ 1,110,951 | $ 4,934,185 | $ (3,201,012) | $ 8,296,830 | $ (1,343,701) | $ 9,797,325 | $ 355,411 |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2018 | May 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,166,223 | $ 2,651,758 |
Adjustments to reconcile Net income to Net cash provided by operating activities — | ||
Depreciation, amortization and asset impairments | 691,686 | 569,720 |
Share-based compensation expense | 751,826 | 611,937 |
Pension settlement charge | 0 | 460,908 |
(Gain) loss on sale of business | 0 | 4,107 |
Deferred income taxes, net | (75,985) | (328,015) |
Other, net | 44,135 | (29,752) |
Change in assets and liabilities, net of acquisitions — | ||
Receivables from clients, net | (463,972) | (240,703) |
Unbilled services, current and non-current, net | (188,343) | 2,489 |
Other current and non-current assets | (241,979) | (374,306) |
Accounts payable | (132,607) | (29,697) |
Deferred revenues, current and non-current | 85,853 | 39,607 |
Accrued payroll and related benefits | 7,469 | (458,456) |
Income taxes payable, current and non-current | 100,939 | 217,034 |
Other current and non-current liabilities | 172,188 | (65,474) |
Net cash provided by (used in) operating activities | 3,917,433 | 3,031,157 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (439,804) | (324,773) |
Purchases of businesses and investments, net of cash acquired | (456,402) | (1,241,500) |
Proceeds from sales of businesses and investments, net of cash transferred | 14,325 | (24,189) |
Proceeds from sales of property and equipment | 7,245 | 8,977 |
Net cash provided by (used in) investing activities | (874,636) | (1,581,485) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of ordinary shares | 666,830 | 600,920 |
Purchases of shares | (2,087,270) | (1,992,205) |
Proceeds from (repayments of) long-term debt, net | (456) | 515 |
Cash dividends paid | (1,708,724) | (1,567,578) |
Other, net | (47,792) | (9,323) |
Net cash provided by (used in) financing activities | (3,177,412) | (2,967,671) |
Effect of exchange rate changes on cash and cash equivalents | (63,400) | (5,402) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (198,015) | (1,523,401) |
CASH AND CASH EQUIVALENTS, beginning of period | 4,126,860 | 4,905,609 |
CASH AND CASH EQUIVALENTS, end of period | 3,928,845 | 3,382,208 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid | $ 1,133,641 | $ 820,103 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
May 31, 2018 | |
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” 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, 2017 included in our Annual Report on Form 10-K filed with the SEC on October 26, 2017 . The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and nine months ended May 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2018 . On March 13, 2018, Accenture Holdings plc merged with and into Accenture plc, with Accenture plc as the surviving entity. As a result, all of the assets and liabilities of Accenture Holdings plc were acquired by Accenture plc, and Accenture Holdings plc ceased to exist. In connection with this internal merger, shareholders of Accenture Holdings plc (other than Accenture entities that held shares of Accenture Holdings plc), who primarily consisted of current and former members of Accenture Leadership and their permitted transferees, received one Class A ordinary share of Accenture plc for each share of Accenture Holdings plc that they owned, and Accenture plc redeemed all Class X ordinary shares of Accenture plc owned by such shareholders. Allowances for Client Receivables and Unbilled Services As of May 31, 2018 and August 31, 2017 , total allowances recorded for client receivables and unbilled services were $56,653 and $74,450 , respectively. Depreciation and Amortization Depreciation expense was $101,814 and $315,410 for the three and nine months ended May 31, 2018 , respectively, and $86,148 and $255,807 for the three and nine months ended May 31, 2017 , respectively. As of May 31, 2018 and August 31, 2017 , total accumulated depreciation was $2,028,174 and $1,912,146 , respectively. Deferred transition amortization expense was $95,696 and $248,838 for the three and nine months ended May 31, 2018 , respectively, and $66,634 and $205,763 for the three and nine months ended May 31, 2017 , respectively. See Note 5 (Goodwill and Intangible Assets) for intangible asset amortization balances. New Accounting Pronouncements The following standards, issued by the Financial Accounting Standards Board (“FASB”), will, or are expected to, result in a change in practice and/or have a financial impact to our 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 adoption of this Accounting Standards Update (“ASU”) will require that we record deferred tax assets on our Consolidated Balance Sheet at the beginning of fiscal 2019. The deferred tax assets, which could be up to $2.1 billion, represent income tax consequences of prior intra-entity transfers of assets, which are currently recognized over the expected life of the assets. Beginning in fiscal 2019, we will recognize incremental income tax expense as these deferred tax assets are utilized. Initially, this could represent approximately a 3.5 percentage point increase in the annual effective tax rate. However, the actual impact of adoption will depend on numerous factors, including activity for fiscal 2018 and management’s expectations regarding recoverability of the related deferred taxes. Adoption will not have any impact on cash flows. 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 leases and to disclose additional quantitative and qualitative information about leasing arrangements. The guidance requires a modified retrospective method upon adoption. September 1, 2019 While we are continuing to assess the potential impact of this ASU, we currently believe the most significant impact relates to our accounting for office space operating leases. We anticipate this ASU will have a material impact on our Consolidated Balance Sheets but will not have a material impact on our other Consolidated Financial Statements or footnotes. 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 ASU also requires amortization of incremental costs to obtain a customer contract over the term of the customer arrangement. The guidance allows for both retrospective and modified retrospective methods of adoption. September 1, 2018 We performed a preliminary assessment of the impact of the ASU and are executing a transition plan, including necessary changes to policies, processes, and internal controls as well as system enhancements to generate the information necessary for the new disclosures. The project is on schedule for adoption on September 1, 2018 and we will apply the modified retrospective method. We expect revenue recognition across our portfolio of services to remain largely unchanged. However, we expect to recognize revenue earlier than we do 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. Additionally, we will capitalize and amortize the direct and incremental costs of obtaining customer contracts over the term of the customer arrangement rather than expense these costs when incurred. While we have not finalized our assessment of the impact of the ASU, based on the analysis completed to date, we do not currently anticipate that the ASU will have a material impact on our |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
May 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Basic Earnings per share Net income attributable to Accenture plc $ 1,043,020 $ 669,468 $ 3,030,383 $ 2,512,696 Basic weighted average Class A ordinary shares 639,217,344 619,436,804 624,365,464 621,025,256 Basic earnings per share $ 1.63 $ 1.08 $ 4.85 $ 4.05 Diluted Earnings per share Net income attributable to Accenture plc $ 1,043,020 $ 669,468 $ 3,030,383 $ 2,512,696 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 6,997 23,024 93,531 107,437 Net income for diluted earnings per share calculation $ 1,050,017 $ 692,492 $ 3,123,914 $ 2,620,133 Basic weighted average Class A ordinary shares 639,217,344 619,436,804 624,365,464 621,025,256 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 4,294,411 27,926,781 19,354,992 28,274,559 Diluted effect of employee compensation related to Class A ordinary shares 11,017,024 11,329,345 11,853,822 11,721,416 Diluted effect of share purchase plans related to Class A ordinary shares 71,247 77,495 165,290 109,075 Diluted weighted average Class A ordinary shares 654,600,026 658,770,425 655,739,568 661,130,306 Diluted earnings per share $ 1.60 $ 1.05 $ 4.76 $ 3.96 _______________ (1) Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis and the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests prior to March 13, 2018, when these were redeemed for Accenture plc Class A ordinary shares. 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 | 9 Months Ended |
May 31, 2018 | |
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 Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Foreign currency translation Beginning balance $ (675,752 ) $ (1,027,882 ) $ (770,043 ) $ (919,963 ) Foreign currency translation (240,840 ) 102,087 (137,279 ) (17,389 ) Income tax benefit (expense) 1,264 102 1,081 (293 ) Portion attributable to noncontrolling interests 8,579 (9,021 ) (508 ) 2,931 Foreign currency translation, net of tax (230,997 ) 93,168 (136,706 ) (14,751 ) Ending balance (906,749 ) (934,714 ) (906,749 ) (934,714 ) Defined benefit plans Beginning balance (426,500 ) (804,969 ) (440,619 ) (809,504 ) Actuarial gains (losses) 12,044 (48,885 ) 12,044 (48,885 ) Pension settlement — 509,793 2,119 509,793 Prior service costs arising during the period (29,796 ) — (29,796 ) — Reclassifications into net periodic pension and 9,675 12,407 28,472 23,437 Income tax benefit (expense) 4,806 (183,086 ) (1,386 ) (189,376 ) Portion attributable to noncontrolling interests 588 (12,465 ) (17 ) (12,670 ) Defined benefit plans, net of tax (2,683 ) 277,764 11,436 282,299 Ending balance (429,183 ) (527,205 ) (429,183 ) (527,205 ) Cash flow hedges Beginning balance 33,641 93,500 114,635 68,011 Unrealized gain (loss) (33,755 ) 96,111 (79,140 ) 179,891 Reclassification adjustments into Cost of services (21,265 ) (38,446 ) (81,986 ) (85,914 ) Income tax benefit (expense) 14,506 (23,300 ) 36,145 (32,972 ) Portion attributable to noncontrolling interests (3,287 ) (1,469 ) 186 (2,620 ) Cash flow hedges, net of tax (43,801 ) 32,896 (124,795 ) 58,385 Ending balance (2) (10,160 ) 126,396 (10,160 ) 126,396 Investments Beginning balance 2,345 — 1,243 (264 ) Unrealized gain (loss) — — 1,454 462 Income tax benefit (expense) — — (305 ) (183 ) Portion attributable to noncontrolling interests 46 — (1 ) (15 ) Investments, net of tax 46 — 1,148 264 Ending balance 2,391 — 2,391 — Accumulated other comprehensive loss $ (1,343,701 ) $ (1,335,523 ) $ (1,343,701 ) $ (1,335,523 ) _______________ (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 May 31, 2018 , $39,677 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 | 9 Months Ended |
May 31, 2018 | |
Business Combination, Goodwill [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS During the nine months ended May 31, 2018 , we completed individually immaterial acquisitions for total consideration of $411,054 , net of cash acquired. The pro forma effects of these acquisitions on our operations were not material. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
May 31, 2018 | |
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 May 31, Communications, Media & Technology $ 775,802 $ 72,291 $ (2,877 ) $ 845,216 Financial Services 1,151,024 19,636 (11,238 ) 1,159,422 Health & Public Service 934,374 17,113 (1,085 ) 950,402 Products 1,698,140 192,356 (12,032 ) 1,878,464 Resources 443,012 3,573 (4,796 ) 441,789 Total $ 5,002,352 $ 304,969 $ (32,028 ) $ 5,275,293 Goodwill includes immaterial adjustments related to prior period acquisitions. Intangible Assets Our definite-lived intangible assets by major asset class were as follows: May 31, 2018 August 31, 2017 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 846,151 $ (284,523 ) $ 561,628 $ 809,683 $ (235,315 ) $ 574,368 Technology 101,030 (59,141 ) 41,889 108,929 (65,453 ) 43,476 Patents 126,564 (64,315 ) 62,249 124,669 (62,543 ) 62,126 Other 48,269 (25,796 ) 22,473 52,342 (21,930 ) 30,412 Total $ 1,122,014 $ (433,775 ) $ 688,239 $ 1,095,623 $ (385,241 ) $ 710,382 Total amortization related to our intangible assets was $40,879 and $127,438 for the three and nine months ended May 31, 2018 , respectively. Total amortization related to our intangible assets was $41,698 and $108,150 for the three and nine months ended May 31, 2017 , respectively. Estimated future amortization related to intangible assets held as of May 31, 2018 is as follows: Fiscal Year Estimated Amortization Remainder of 2018 $ 38,763 2019 132,184 2020 114,413 2021 101,669 2022 86,372 Thereafter 214,838 Total $ 688,239 |
MATERIAL TRANSACTIONS AFFECTING
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY | 9 Months Ended |
May 31, 2018 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY Dividends Our dividend activity during the nine months ended May 31, 2018 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, 2017 $ 1.33 October 19, 2017 $ 817,241 October 17, 2017 $ 36,373 $ 853,614 May 15, 2018 $ 1.33 April 12, 2018 $ 853,831 April 10, 2018 $ 1,279 $ 855,110 Total Dividends $ 1,671,072 $ 37,652 $ 1,708,724 _______________ (1) The dividend for the three months ended May 31, 2018 included payments made to holders of Accenture Canada Holdings Inc. exchangeable shares while the dividend for the three months ended November 30, 2017 included payments made to holders of both Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares. See Note 1 (Basis of Presentation) for additional information on Accenture Holdings plc. 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. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
May 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our 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 nine months ended May 31, 2018 and 2017 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 net losses of $84,480 and $37,698 for the three and nine months ended May 31, 2018 , respectively, and a net gain of $89,035 and a net loss of $29,279 for the three and nine months ended May 31, 2017 , 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: May 31, August 31, Assets Cash Flow Hedges Other current assets $ 67,961 $ 133,935 Other non-current assets 11,028 82,770 Other Derivatives Other current assets 8,052 11,470 Total assets $ 87,041 $ 228,175 Liabilities Cash Flow Hedges Other accrued liabilities $ 28,284 $ 21,632 Other non-current liabilities 34,321 17,244 Other Derivatives Other accrued liabilities 25,200 12,242 Total liabilities $ 87,805 $ 51,118 Total fair value $ (764 ) $ 177,057 Total notional value $ 7,149,152 $ 9,290,345 We utilize 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, we record 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: May 31, August 31, Net derivative assets $ 29,766 $ 189,066 Net derivative liabilities 30,530 12,009 Total fair value $ (764 ) $ 177,057 |
RETIREMENT AND PROFIT SHARING P
RETIREMENT AND PROFIT SHARING PLANS | 9 Months Ended |
May 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | RETIREMENT AND PROFIT SHARING PLANS In May 2017, we settled our U.S. pension plan obligations. Plan participants elected to receive either a lump-sum distribution or to transfer benefits to a third-party annuity provider. As a result of the settlement, we were relieved of any further obligation under our U.S. pension plan. During the three months ended May 31, 2017 , we recorded a pension settlement charge of $509,793 , and related income tax benefits of $198,219 . The charge primarily consisted of unrecognized actuarial losses of $460,908 previously included in Accumulated other comprehensive loss. In connection with the settlement, we made a $118,500 cash contribution ( $48,885 related to additional actuarial losses and $69,615 to fund previously recorded pension liabilities). |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”), which significantly changed U.S. tax law. The Tax Act lowered the U.S. statutory federal income tax rate from 35% to 21% , effective January 1, 2018, resulting in a blended U.S. statutory federal income tax rate of 25.7% for our fiscal year ended August 31, 2018. The Tax Act could modestly impact our ongoing effective tax rate by imposing taxes on our intercompany transactions and limiting our ability to deduct certain expenses. Due to the recent enactment and the complexity involved in applying the provisions of the Tax Act, we have recorded provisional amounts in our financial statements . In the three months ended February 28, 2018, we recognized a provisional tax expense of $136,724 primarily to remeasure our net deferred tax assets at the new, lower rates. In the three months ended May 31, 2018, we recorded an adjustment of $40,927 to our provisional tax expense resulting from our continued analysis of the Tax Act. As we collect and analyze data, including our forecast of when we expect to realize certain deferred tax amounts, we may adjust the provisional amounts. In addition, we have not yet made an accounting policy election to consider the taxes on our intercompany transactions in determining the amount of our valuation allowance. Those adjustments and the election may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. We apply an estimated annual effective tax rate to our year-to-date operating results to determine the interim provision for income tax expense. In addition, we recognize 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. Our effective tax rates for the three months ended May 31, 2018 and 2017 were 34.4% and 19.4% , respectively. Our effective tax rates for the nine months ended May 31, 2018 and 2017 were 27.2% and 20.2% , respectively. Excluding the provisional tax expense associated with the enactment of the Tax Act and $80,847 of expense from a non-U.S. tax law change, the effective tax rates would have been 26.8% and 21.3% for the three and nine months ended May 31, 2018 , respectively. Absent the pension settlement charge (see Note 8 Retirement and Profit Sharing Plans) and related tax impact recorded during the three months ended May 31, 2017 , the effective tax rates would have been 26.6% and 22.7% for the three and nine months ended May 31, 2017 , respectively. The effective tax rate for the nine months ended May 31, 2018 benefited from lower expenses for adjustments to prior year tax liabilities in fiscal 2018, partially offset by lower benefits from final determinations of prior year U.S. taxes in fiscal 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments We have either the right to purchase at fair value or, if certain events occur, may be required to purchase at fair value outstanding shares of our Avanade Inc. and SinnerSchrader AG subsidiaries. As of May 31, 2018 and August 31, 2017 , we have reflected the fair value of $103,122 and $52,996 , respectively, related to redeemable common stock and the intrinsic value of the options on redeemable common stock of these subsidiaries 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, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters. As of May 31, 2018 and August 31, 2017 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $811,000 and $697,000 , respectively, of which all but approximately $145,000 and $149,000 , respectively, may be recovered from the other third parties if we are 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, we 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, we have not been required to make any significant payment under any of the arrangements described above. We have assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations and/or indemnification provisions and believe that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole. Legal Contingencies As of May 31, 2018 , we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our 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 our results of operations or financial condition. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
May 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our reportable operating segments are our five operating groups, which are Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. Information regarding our reportable operating segments is as follows: Three Months Ended May 31, 2018 May 31, 2017 Net Operating Net Operating Communications, Media & Technology $ 2,133,796 $ 383,359 $ 1,754,657 $ 286,931 Financial Services 2,143,196 382,530 1,865,071 321,052 Health & Public Service 1,703,676 216,218 1,554,424 206,570 Products 2,842,624 452,573 2,429,140 402,558 Resources 1,469,293 185,046 1,245,875 158,117 Other 22,414 — 17,869 (509,793 ) Total $ 10,314,999 $ 1,619,726 $ 8,867,036 $ 865,435 Nine Months Ended May 31, 2018 May 31, 2017 Net Operating Net Operating Communications, Media & Technology $ 5,938,389 $ 993,887 $ 5,061,581 $ 759,513 Financial Services 6,227,237 1,059,710 5,444,451 908,705 Health & Public Service 4,980,155 594,827 4,566,762 594,912 Products 8,057,985 1,237,076 7,014,137 1,175,019 Resources 4,139,507 502,870 3,585,458 407,691 Other 80,390 — 27,835 (509,793 ) Total $ 29,423,663 $ 4,388,370 $ 25,700,224 $ 3,336,047 _______________ (1) Other Operating Income represents the pension settlement charge related to the termination of our U.S. pension plan. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
May 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | August 31, 2017 included in our Annual Report on Form 10-K filed with the SEC on October 26, 2017 . The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and nine months ended May 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2018 . |
New Accounting Pronouncements, Policy | New Accounting Pronouncements The following standards, issued by the Financial Accounting Standards Board (“FASB”), will, or are expected to, result in a change in practice and/or have a financial impact to our 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 adoption of this Accounting Standards Update (“ASU”) will require that we record deferred tax assets on our Consolidated Balance Sheet at the beginning of fiscal 2019. The deferred tax assets, which could be up to $2.1 billion, represent income tax consequences of prior intra-entity transfers of assets, which are currently recognized over the expected life of the assets. Beginning in fiscal 2019, we will recognize incremental income tax expense as these deferred tax assets are utilized. Initially, this could represent approximately a 3.5 percentage point increase in the annual effective tax rate. However, the actual impact of adoption will depend on numerous factors, including activity for fiscal 2018 and management’s expectations regarding recoverability of the related deferred taxes. Adoption will not have any impact on cash flows. 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 leases and to disclose additional quantitative and qualitative information about leasing arrangements. The guidance requires a modified retrospective method upon adoption. September 1, 2019 While we are continuing to assess the potential impact of this ASU, we currently believe the most significant impact relates to our accounting for office space operating leases. We anticipate this ASU will have a material impact on our Consolidated Balance Sheets but will not have a material impact on our other Consolidated Financial Statements or footnotes. 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 ASU also requires amortization of incremental costs to obtain a customer contract over the term of the customer arrangement. The guidance allows for both retrospective and modified retrospective methods of adoption. September 1, 2018 We performed a preliminary assessment of the impact of the ASU and are executing a transition plan, including necessary changes to policies, processes, and internal controls as well as system enhancements to generate the information necessary for the new disclosures. The project is on schedule for adoption on September 1, 2018 and we will apply the modified retrospective method. We expect revenue recognition across our portfolio of services to remain largely unchanged. However, we expect to recognize revenue earlier than we do 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. Additionally, we will capitalize and amortize the direct and incremental costs of obtaining customer contracts over the term of the customer arrangement rather than expense these costs when incurred. While we have not finalized our assessment of the impact of the ASU, based on the analysis completed to date, we do not currently anticipate that the ASU will have a material impact on our |
INCOME TAXES (Policies)
INCOME TAXES (Policies) | 9 Months Ended |
May 31, 2018 | |
Accounting Policies [Abstract] | |
Income Taxes | We apply an estimated annual effective tax rate to our year-to-date operating results to determine the interim provision for income tax expense. In addition, we recognize 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) | 9 Months Ended |
May 31, 2018 | |
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, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters. As of May 31, 2018 and August 31, 2017 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $811,000 and $697,000 , respectively, of which all but approximately $145,000 and $149,000 , respectively, may be recovered from the other third parties if we are 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, we 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) | 9 Months Ended |
May 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Basic Earnings per share Net income attributable to Accenture plc $ 1,043,020 $ 669,468 $ 3,030,383 $ 2,512,696 Basic weighted average Class A ordinary shares 639,217,344 619,436,804 624,365,464 621,025,256 Basic earnings per share $ 1.63 $ 1.08 $ 4.85 $ 4.05 Diluted Earnings per share Net income attributable to Accenture plc $ 1,043,020 $ 669,468 $ 3,030,383 $ 2,512,696 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 6,997 23,024 93,531 107,437 Net income for diluted earnings per share calculation $ 1,050,017 $ 692,492 $ 3,123,914 $ 2,620,133 Basic weighted average Class A ordinary shares 639,217,344 619,436,804 624,365,464 621,025,256 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 4,294,411 27,926,781 19,354,992 28,274,559 Diluted effect of employee compensation related to Class A ordinary shares 11,017,024 11,329,345 11,853,822 11,721,416 Diluted effect of share purchase plans related to Class A ordinary shares 71,247 77,495 165,290 109,075 Diluted weighted average Class A ordinary shares 654,600,026 658,770,425 655,739,568 661,130,306 Diluted earnings per share $ 1.60 $ 1.05 $ 4.76 $ 3.96 _______________ (1) Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis and the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests prior to March 13, 2018, when these were redeemed for Accenture plc Class A ordinary shares. 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) | 9 Months Ended |
May 31, 2018 | |
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 Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Foreign currency translation Beginning balance $ (675,752 ) $ (1,027,882 ) $ (770,043 ) $ (919,963 ) Foreign currency translation (240,840 ) 102,087 (137,279 ) (17,389 ) Income tax benefit (expense) 1,264 102 1,081 (293 ) Portion attributable to noncontrolling interests 8,579 (9,021 ) (508 ) 2,931 Foreign currency translation, net of tax (230,997 ) 93,168 (136,706 ) (14,751 ) Ending balance (906,749 ) (934,714 ) (906,749 ) (934,714 ) Defined benefit plans Beginning balance (426,500 ) (804,969 ) (440,619 ) (809,504 ) Actuarial gains (losses) 12,044 (48,885 ) 12,044 (48,885 ) Pension settlement — 509,793 2,119 509,793 Prior service costs arising during the period (29,796 ) — (29,796 ) — Reclassifications into net periodic pension and 9,675 12,407 28,472 23,437 Income tax benefit (expense) 4,806 (183,086 ) (1,386 ) (189,376 ) Portion attributable to noncontrolling interests 588 (12,465 ) (17 ) (12,670 ) Defined benefit plans, net of tax (2,683 ) 277,764 11,436 282,299 Ending balance (429,183 ) (527,205 ) (429,183 ) (527,205 ) Cash flow hedges Beginning balance 33,641 93,500 114,635 68,011 Unrealized gain (loss) (33,755 ) 96,111 (79,140 ) 179,891 Reclassification adjustments into Cost of services (21,265 ) (38,446 ) (81,986 ) (85,914 ) Income tax benefit (expense) 14,506 (23,300 ) 36,145 (32,972 ) Portion attributable to noncontrolling interests (3,287 ) (1,469 ) 186 (2,620 ) Cash flow hedges, net of tax (43,801 ) 32,896 (124,795 ) 58,385 Ending balance (2) (10,160 ) 126,396 (10,160 ) 126,396 Investments Beginning balance 2,345 — 1,243 (264 ) Unrealized gain (loss) — — 1,454 462 Income tax benefit (expense) — — (305 ) (183 ) Portion attributable to noncontrolling interests 46 — (1 ) (15 ) Investments, net of tax 46 — 1,148 264 Ending balance 2,391 — 2,391 — Accumulated other comprehensive loss $ (1,343,701 ) $ (1,335,523 ) $ (1,343,701 ) $ (1,335,523 ) _______________ (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 May 31, 2018 , $39,677 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) | 9 Months Ended |
May 31, 2018 | |
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 May 31, Communications, Media & Technology $ 775,802 $ 72,291 $ (2,877 ) $ 845,216 Financial Services 1,151,024 19,636 (11,238 ) 1,159,422 Health & Public Service 934,374 17,113 (1,085 ) 950,402 Products 1,698,140 192,356 (12,032 ) 1,878,464 Resources 443,012 3,573 (4,796 ) 441,789 Total $ 5,002,352 $ 304,969 $ (32,028 ) $ 5,275,293 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our definite-lived intangible assets by major asset class were as follows: May 31, 2018 August 31, 2017 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 846,151 $ (284,523 ) $ 561,628 $ 809,683 $ (235,315 ) $ 574,368 Technology 101,030 (59,141 ) 41,889 108,929 (65,453 ) 43,476 Patents 126,564 (64,315 ) 62,249 124,669 (62,543 ) 62,126 Other 48,269 (25,796 ) 22,473 52,342 (21,930 ) 30,412 Total $ 1,122,014 $ (433,775 ) $ 688,239 $ 1,095,623 $ (385,241 ) $ 710,382 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Estimated Amortization Remainder of 2018 $ 38,763 2019 132,184 2020 114,413 2021 101,669 2022 86,372 Thereafter 214,838 Total $ 688,239 |
MATERIAL TRANSACTIONS AFFECTI25
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
May 31, 2018 | |
Equity [Abstract] | |
Schedule of Dividend Activity | Our dividend activity during the nine months ended May 31, 2018 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, 2017 $ 1.33 October 19, 2017 $ 817,241 October 17, 2017 $ 36,373 $ 853,614 May 15, 2018 $ 1.33 April 12, 2018 $ 853,831 April 10, 2018 $ 1,279 $ 855,110 Total Dividends $ 1,671,072 $ 37,652 $ 1,708,724 _______________ (1) The dividend for the three months ended May 31, 2018 included payments made to holders of Accenture Canada Holdings Inc. exchangeable shares while the dividend for the three months ended November 30, 2017 included payments made to holders of both Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares. See Note 1 (Basis of Presentation) for additional information on Accenture Holdings plc. |
DERIVATIVE FINANCIAL INSTRUME26
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
May 31, 2018 | |
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: May 31, August 31, Assets Cash Flow Hedges Other current assets $ 67,961 $ 133,935 Other non-current assets 11,028 82,770 Other Derivatives Other current assets 8,052 11,470 Total assets $ 87,041 $ 228,175 Liabilities Cash Flow Hedges Other accrued liabilities $ 28,284 $ 21,632 Other non-current liabilities 34,321 17,244 Other Derivatives Other accrued liabilities 25,200 12,242 Total liabilities $ 87,805 $ 51,118 Total fair value $ (764 ) $ 177,057 Total notional value $ 7,149,152 $ 9,290,345 |
Offsetting Derivative Assets and Liabilities Table | We utilize 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, we record 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: May 31, August 31, Net derivative assets $ 29,766 $ 189,066 Net derivative liabilities 30,530 12,009 Total fair value $ (764 ) $ 177,057 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
May 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Our reportable operating segments are our five operating groups, which are Communications, Media & Technology; Financial Services; Health & Public Service; Products; and Resources. Information regarding our reportable operating segments is as follows: Three Months Ended May 31, 2018 May 31, 2017 Net Operating Net Operating Communications, Media & Technology $ 2,133,796 $ 383,359 $ 1,754,657 $ 286,931 Financial Services 2,143,196 382,530 1,865,071 321,052 Health & Public Service 1,703,676 216,218 1,554,424 206,570 Products 2,842,624 452,573 2,429,140 402,558 Resources 1,469,293 185,046 1,245,875 158,117 Other 22,414 — 17,869 (509,793 ) Total $ 10,314,999 $ 1,619,726 $ 8,867,036 $ 865,435 Nine Months Ended May 31, 2018 May 31, 2017 Net Operating Net Operating Communications, Media & Technology $ 5,938,389 $ 993,887 $ 5,061,581 $ 759,513 Financial Services 6,227,237 1,059,710 5,444,451 908,705 Health & Public Service 4,980,155 594,827 4,566,762 594,912 Products 8,057,985 1,237,076 7,014,137 1,175,019 Resources 4,139,507 502,870 3,585,458 407,691 Other 80,390 — 27,835 (509,793 ) Total $ 29,423,663 $ 4,388,370 $ 25,700,224 $ 3,336,047 _______________ (1) Other Operating Income represents the pension settlement charge related to the termination of our U.S. pension plan. |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | Aug. 31, 2019 | Aug. 31, 2017 | |
Allowance for doubtful accounts receivable and unbilled services | $ 56,653 | $ 56,653 | $ 74,450 | |||
Depreciation | 101,814 | $ 86,148 | 315,410 | $ 255,807 | ||
Accumulated depreciation | 2,028,174 | 2,028,174 | $ 1,912,146 | |||
DeferredTransitionAmortizationExpense | $ 95,696 | $ 66,634 | $ 248,838 | $ 205,763 | ||
Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification, Percent | 3.50% | |||||
Accounting Standards Update 2016-16 [Member] | Deferred Tax Asset [Domain] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2,100,000 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | ||
Basic Earnings per share | |||||
Net income attributable to Accenture plc | $ 1,043,020 | $ 669,468 | $ 3,030,383 | $ 2,512,696 | |
Basic weighted average Class A ordinary shares | 639,217,344 | 619,436,804 | 624,365,464 | 621,025,256 | |
Basic earnings per share | $ 1.63 | $ 1.08 | $ 4.85 | $ 4.05 | |
Diluted Earnings per share | |||||
Net income attributable to Accenture plc | $ 1,043,020 | $ 669,468 | $ 3,030,383 | $ 2,512,696 | |
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) | [1] | 6,997 | 23,024 | 93,531 | 107,437 |
Net income for diluted earnings per share calculation | $ 1,050,017 | $ 692,492 | $ 3,123,914 | $ 2,620,133 | |
Basic weighted average Class A ordinary shares | 639,217,344 | 619,436,804 | 624,365,464 | 621,025,256 | |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) | [1] | 4,294,411 | 27,926,781 | 19,354,992 | 28,274,559 |
Diluted effect of employee compensation related to Class A ordinary shares | 11,017,024 | 11,329,345 | 11,853,822 | 11,721,416 | |
Diluted effect of share purchase plans related to Class A ordinary shares | 71,247 | 77,495 | 165,290 | 109,075 | |
Diluted weighted average Class A ordinary shares | 654,600,026 | 658,770,425 | 655,739,568 | 661,130,306 | |
Diluted earnings per share | $ 1.60 | $ 1.05 | $ 4.76 | $ 3.96 | |
[1] | Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis and the redemption of all Accenture Holdings plc ordinary shares owned by holders of noncontrolling interests prior to March 13, 2018, when these were redeemed for Accenture plc Class A ordinary shares. 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 | 9 Months Ended | ||||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | Aug. 31, 2017 | ||
Foreign currency translation | ||||||
Beginning balance | $ (675,752) | $ (1,027,882) | $ (770,043) | $ (919,963) | ||
Foreign currency translation | (240,840) | 102,087 | (137,279) | (17,389) | ||
Income tax benefit (expense) | 1,264 | 102 | 1,081 | (293) | ||
Portion attributable to noncontrolling interests | 8,579 | (9,021) | (508) | 2,931 | ||
Foreign currency translation, net of tax | (230,997) | 93,168 | (136,706) | (14,751) | ||
Ending balance | (906,749) | (934,714) | (906,749) | (934,714) | ||
Defined benefit plans | ||||||
Beginning balance | (426,500) | (804,969) | (440,619) | (809,504) | ||
Actuarial gains (losses) | 12,044 | (48,885) | 12,044 | (48,885) | ||
Pension settlement | 0 | 509,793 | 2,119 | 509,793 | ||
Prior service costs arising during the period | (29,796) | 0 | (29,796) | 0 | ||
Reclassifications into net periodic pension and post-retirement expense (1) | [1] | 9,675 | 12,407 | 28,472 | 23,437 | |
Income tax benefit (expense) | 4,806 | (183,086) | (1,386) | (189,376) | ||
Portion attributable to noncontrolling interests | 588 | (12,465) | (17) | (12,670) | ||
Defined benefit plans, net of tax | (2,683) | 277,764 | 11,436 | 282,299 | ||
Ending balance | (429,183) | (527,205) | (429,183) | (527,205) | ||
Cash flow hedges | ||||||
Beginning balance | 33,641 | 93,500 | 114,635 | 68,011 | ||
Unrealized gain (loss) | (33,755) | 96,111 | (79,140) | 179,891 | ||
Reclassification adjustments into Cost of services | (21,265) | (38,446) | (81,986) | (85,914) | ||
Income tax benefit (expense) | 14,506 | (23,300) | 36,145 | (32,972) | ||
Portion attributable to noncontrolling interests | (3,287) | (1,469) | 186 | (2,620) | ||
Cash flow hedges, net of tax | (43,801) | 32,896 | (124,795) | 58,385 | ||
Ending balance (2) | [2] | (10,160) | 126,396 | (10,160) | 126,396 | |
Investments | ||||||
Beginning balance | 2,345 | 0 | 1,243 | (264) | ||
Unrealized gain (loss) | 0 | 0 | 1,454 | 462 | ||
Income tax benefit (expense) | 0 | 0 | (305) | (183) | ||
Portion attributable to noncontrolling interests | 46 | 0 | (1) | (15) | ||
Investments, net of tax | 46 | 0 | 1,148 | 264 | ||
Ending balance | 2,391 | 0 | 2,391 | 0 | ||
Accumulated other comprehensive loss | $ (1,343,701) | $ (1,335,523) | $ (1,343,701) | $ (1,335,523) | $ (1,094,784) | |
[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 May 31, 2018, $39,677 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 | 9 Months Ended |
May 31, 2018USD ($) | |
Cost Of Services [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 39,677 |
BUSINESS COMBINATIONS- Addition
BUSINESS COMBINATIONS- Additional Information (Detail) $ in Thousands | 9 Months Ended |
May 31, 2018USD ($) | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisitions [Line Items] | |
Cash Consideration | $ 411,054 |
GOODWILL AND INTANGIBLE ASSET33
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 9 Months Ended |
May 31, 2018USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 5,002,352 |
Goodwill Acquired During Period And Adjustments | 304,969 |
Goodwill, Translation Adjustments | (32,028) |
Goodwill | 5,275,293 |
Communications, Media & Technology | |
Goodwill [Line Items] | |
Goodwill | 775,802 |
Goodwill Acquired During Period And Adjustments | 72,291 |
Goodwill, Translation Adjustments | (2,877) |
Goodwill | 845,216 |
Financial Services | |
Goodwill [Line Items] | |
Goodwill | 1,151,024 |
Goodwill Acquired During Period And Adjustments | 19,636 |
Goodwill, Translation Adjustments | (11,238) |
Goodwill | 1,159,422 |
Health & Public Service | |
Goodwill [Line Items] | |
Goodwill | 934,374 |
Goodwill Acquired During Period And Adjustments | 17,113 |
Goodwill, Translation Adjustments | (1,085) |
Goodwill | 950,402 |
Products | |
Goodwill [Line Items] | |
Goodwill | 1,698,140 |
Goodwill Acquired During Period And Adjustments | 192,356 |
Goodwill, Translation Adjustments | (12,032) |
Goodwill | 1,878,464 |
Resources | |
Goodwill [Line Items] | |
Goodwill | 443,012 |
Goodwill Acquired During Period And Adjustments | 3,573 |
Goodwill, Translation Adjustments | (4,796) |
Goodwill | $ 441,789 |
GOODWILL AND INTANGIBLE ASSET34
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,122,014 | $ 1,095,623 |
Accumulated Amortization | (433,775) | (385,241) |
Net Carrying Amount | 688,239 | 710,382 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 846,151 | 809,683 |
Accumulated Amortization | (284,523) | (235,315) |
Net Carrying Amount | 561,628 | 574,368 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 101,030 | 108,929 |
Accumulated Amortization | (59,141) | (65,453) |
Net Carrying Amount | 41,889 | 43,476 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 126,564 | 124,669 |
Accumulated Amortization | (64,315) | (62,543) |
Net Carrying Amount | 62,249 | 62,126 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 48,269 | 52,342 |
Accumulated Amortization | (25,796) | (21,930) |
Net Carrying Amount | $ 22,473 | $ 30,412 |
GOODWILL AND INTANGIBLE ASSET35
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | Aug. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of Intangible Assets | $ 40,879 | $ 41,698 | $ 127,438 | $ 108,150 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 38,763 | 38,763 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 132,184 | 132,184 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 114,413 | 114,413 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 101,669 | 101,669 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 86,372 | 86,372 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 214,838 | 214,838 | |||
Net Carrying Amount | $ 688,239 | $ 688,239 | $ 710,382 |
MATERIAL TRANSACTIONS AFFECTI36
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | ||
Dividends [Line Items] | |||||
Dividend Per Share | $ 1.33 | $ 1.21 | $ 2.66 | $ 2.42 | |
Cash Outlay | $ 1,708,724 | ||||
Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares [Member] | |||||
Dividends [Line Items] | |||||
Cash Outlay | [1] | 37,652 | |||
Class A ordinary shares | |||||
Dividends [Line Items] | |||||
Cash Outlay | $ 1,671,072 | ||||
Dividend Payment November 2017 [Member] [Domain] | |||||
Dividends [Line Items] | |||||
Dividend Payment Date | Nov. 15, 2017 | ||||
Dividend Per Share | $ 1.33 | ||||
Cash Outlay | $ 853,614 | ||||
Dividend Payment November 2017 [Member] [Domain] | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares [Member] | |||||
Dividends [Line Items] | |||||
Record Date | [1] | Oct. 17, 2017 | |||
Cash Outlay | [1] | $ 36,373 | |||
Dividend Payment November 2017 [Member] [Domain] | Class A ordinary shares | |||||
Dividends [Line Items] | |||||
Record Date | Oct. 19, 2017 | ||||
Cash Outlay | $ 817,241 | ||||
Dividend Payment May 2018 [Member] | |||||
Dividends [Line Items] | |||||
Dividend Payment Date | May 15, 2018 | ||||
Dividend Per Share | $ 1.33 | ||||
Cash Outlay | $ 855,110 | ||||
Dividend Payment May 2018 [Member] | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares [Member] | |||||
Dividends [Line Items] | |||||
Record Date | [1] | Apr. 10, 2018 | |||
Cash Outlay | [1] | $ 1,279 | |||
Dividend Payment May 2018 [Member] | Class A ordinary shares | |||||
Dividends [Line Items] | |||||
Record Date | Apr. 12, 2018 | ||||
Cash Outlay | $ 853,831 | ||||
[1] | The dividend for the three months ended May 31, 2018 included payments made to holders of Accenture Canada Holdings Inc. exchangeable shares while the dividend for the three months ended November 30, 2017 included payments made to holders of both Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares. See Note 1 (Basis of Presentation) for additional information on Accenture Holdings plc. |
DERIVATIVE FINANCIAL INSTRUME37
DERIVATIVE FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Detail) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Assets | ||
Fair value of derivative assets | $ 87,041 | $ 228,175 |
Liabilities | ||
Fair value of derivative liabilities | 87,805 | 51,118 |
Total fair value | (764) | 177,057 |
Total notional value | 7,149,152 | 9,290,345 |
Cash Flow Hedging [Member] | Other current assets | ||
Assets | ||
Fair value of derivative assets | 67,961 | 133,935 |
Cash Flow Hedging [Member] | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 11,028 | 82,770 |
Cash Flow Hedging [Member] | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 28,284 | 21,632 |
Cash Flow Hedging [Member] | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 34,321 | 17,244 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 8,052 | 11,470 |
Other Derivatives | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | $ 25,200 | $ 12,242 |
DERIVATIVE FINANCIAL INSTRUME38
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized gains or (losses) and changes in the estimated fair value of derivatives not designated as hedges | $ (84,480) | $ 89,035 | $ (37,698) | $ (29,279) |
DERIVATIVE FINANCIAL INSTRUME39
DERIVATIVE FINANCIAL INSTRUMENTS Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Offsetting [Abstract] | ||
Net derivative assets | $ 29,766 | $ 189,066 |
Net derivative liabilities | 30,530 | 12,009 |
Total fair value | $ (764) | $ 177,057 |
RETIREMENT AND PROFIT SHARING40
RETIREMENT AND PROFIT SHARING PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension settlement charge | $ 0 | $ 509,793 | $ 0 | $ 509,793 |
Fiscal2017PensionSettlement [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
PensionSettlementChargeIncomeTaxExpenseBenefit | (198,219) | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (460,908) | (460,908) | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 118,500 | |||
Fiscal2017PensionSettlement [Member] | Additional actuarial losses | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 48,885 | |||
Fiscal2017PensionSettlement [Member] | Previously recorded pension liabilities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 69,615 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | May 31, 2018 | May 31, 2017 | Feb. 28, 2018 | May 31, 2018 | May 31, 2017 | Aug. 31, 2018 |
Income Tax Disclosure [Abstract] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||||||
Blended U.S. Statutory Income Tax Rate | 25.70% | |||||||
Provisional Tax Expense Related to Tax Cuts and Jobs Act of 2017 | $ 40,927 | $ 136,724 | ||||||
Effective Income Tax Rate Reconciliation, Percent | 34.40% | 19.40% | 27.20% | 20.20% | ||||
Foreign Income Tax Expense (Benefit) Tax Law Change | $ 80,847 | |||||||
Effective Income Tax Rate Excluding Effect of Tax Law Changes | 26.80% | 21.30% | ||||||
Effective Income Tax Rate Excluding Effect Of Pension Settlement Charge | 26.60% | 22.70% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2018 | Aug. 31, 2017 |
Commitments [Abstract] | ||
Redeemable common stock and options of subsidiary | $ 103,122 | $ 52,996 |
Indemnifications and Guarantees [Abstract] | ||
Expressly limited performance guarantee | 811,000 | 697,000 |
Portion of guarantee not recoverable | $ 145,000 | $ 149,000 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | $ 10,314,999 | $ 8,867,036 | $ 29,423,663 | $ 25,700,224 | ||
Operating Income | 1,619,726 | 865,435 | 4,388,370 | 3,336,047 | ||
Communications, Media & Technology | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 2,133,796 | 1,754,657 | 5,938,389 | 5,061,581 | ||
Operating Income | 383,359 | 286,931 | 993,887 | 759,513 | ||
Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 2,143,196 | 1,865,071 | 6,227,237 | 5,444,451 | ||
Operating Income | 382,530 | 321,052 | 1,059,710 | 908,705 | ||
Health & Public Service | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,703,676 | 1,554,424 | 4,980,155 | 4,566,762 | ||
Operating Income | 216,218 | 206,570 | 594,827 | 594,912 | ||
Products | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 2,842,624 | 2,429,140 | 8,057,985 | 7,014,137 | ||
Operating Income | 452,573 | 402,558 | 1,237,076 | 1,175,019 | ||
Resources | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 1,469,293 | 1,245,875 | 4,139,507 | 3,585,458 | ||
Operating Income | 185,046 | 158,117 | 502,870 | 407,691 | ||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 22,414 | 17,869 | 80,390 | 27,835 | ||
Operating Income | $ 0 | $ (509,793) | [1] | $ 0 | $ (509,793) | [1] |
[1] | Other Operating Income represents the pension settlement charge related to the termination of our U.S. pension plan. |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) | 9 Months Ended |
May 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |