Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | ||
May 31, 2019 | Jun. 13, 2019 | Aug. 31, 2018 | |
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q3 | ||
Trading Symbol | ACN | ||
Entity Registrant Name | Accenture plc | ||
Entity Central Index Key | 0001467373 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Class A ordinary shares | |||
Entity Common Stock, Shares Outstanding | 671,999,633 | ||
Treasury Stock, Shares | 34,640,120 | 24,293,199 | |
Class X Ordinary Shares | |||
Entity Common Stock, Shares Outstanding | 637,146 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Thousands | May 31, 2019USD ($) | Aug. 31, 2018USD ($) |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,769,158 | $ 5,061,360 |
Short-term investments | 3,338 | 3,192 |
Receivables and contract assets | 8,134,147 | 7,496,368 |
Other current assets | 1,235,017 | 1,024,639 |
Total current assets | 14,141,660 | 13,585,559 |
NON-CURRENT ASSETS: | ||
Contract assets | 19,739 | 23,036 |
Investments | 235,286 | 215,532 |
Property and equipment, net | 1,341,548 | 1,264,020 |
Goodwill | 6,078,816 | 5,383,012 |
Deferred contract costs | 685,605 | 705,124 |
Deferred income taxes, net | 4,222,011 | 2,086,807 |
Other non-current assets | 1,431,695 | 1,185,993 |
Total non-current assets | 14,014,700 | 10,863,524 |
TOTAL ASSETS | 28,156,360 | 24,449,083 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 4,137 | 5,337 |
Accounts payable | 1,562,995 | 1,348,802 |
Deferred revenues | 3,255,784 | 2,837,682 |
Accrued payroll and related benefits | 4,461,985 | 4,569,172 |
Income taxes payable | 512,820 | 497,885 |
Other accrued liabilities | 754,266 | 892,873 |
Total current liabilities | 10,551,987 | 10,151,751 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 19,855 | 19,676 |
Deferred revenues | 571,769 | 618,124 |
Retirement obligation | 1,419,191 | 1,410,656 |
Deferred income taxes, net | 149,196 | 125,729 |
Income taxes payable | 875,850 | 956,836 |
Other non-current liabilities | 425,554 | 441,723 |
Total non-current liabilities | 3,461,415 | 3,572,744 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 1,195,983 | 1,234,623 |
Additional paid-in capital | 6,059,471 | 4,870,764 |
Treasury shares, at cost: Ordinary, 40,000 shares as of May 31, 2019 and August 31, 2018; Class A ordinary, 34,640,120 and 24,293,199 shares as of May 31, 2019 and August 31, 2018, respectively | (3,761,010) | (2,116,948) |
Retained earnings | 11,709,317 | 7,952,413 |
Accumulated other comprehensive loss | (1,466,509) | (1,576,171) |
Total Accenture plc shareholders’ equity | 13,737,324 | 10,364,753 |
Noncontrolling interests | 405,634 | 359,835 |
Total shareholders’ equity | 14,142,958 | 10,724,588 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 28,156,360 | 24,449,083 |
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 |
Retained Earnings [Member] | ||
SHAREHOLDERS’ EQUITY: | ||
Retained earnings | 7,952,413 | |
Total shareholders’ equity | $ 11,709,317 | $ 7,952,413 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | May 31, 2019€ / sharesshares | May 31, 2019$ / sharesshares | Aug. 31, 2018€ / sharesshares | Aug. 31, 2018$ / 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 | 671,836,371 | 671,836,371 | 663,327,677 | 663,327,677 |
Treasury shares, ordinary shares | 34,640,120 | 34,640,120 | 24,293,199 | 24,293,199 |
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 | 637,146 | 637,146 | 655,521 | 655,521 |
Ordinary shares, shares outstanding | 637,146 | 637,146 | 655,521 | 655,521 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |||
REVENUES: | ||||||
Revenues | $ 11,099,688 | $ 10,694,996 | [1] | $ 32,159,363 | $ 30,488,547 | [1] |
OPERATING EXPENSES: | ||||||
Cost of services | 7,571,390 | 7,362,981 | 22,279,291 | 21,232,839 | ||
Sales and marketing | 1,184,164 | 1,106,543 | 3,274,216 | 3,106,562 | ||
General and administrative costs | 626,191 | 590,597 | 1,872,275 | 1,720,051 | ||
Total operating expenses | 9,381,745 | 9,060,121 | 27,425,782 | 26,059,452 | ||
OPERATING INCOME | 1,717,943 | 1,634,875 | [1] | 4,733,581 | 4,429,095 | [1] |
Interest income | 21,402 | 12,687 | 60,114 | 33,582 | ||
Interest expense | (5,348) | (5,839) | (15,472) | (14,386) | ||
Other income (expense), net | (29,690) | (29,165) | (87,178) | (96,812) | ||
INCOME BEFORE INCOME TAXES | 1,704,307 | 1,612,558 | 4,691,045 | 4,351,479 | ||
Provision for income taxes | 435,658 | 554,417 | 990,352 | 1,185,256 | ||
NET INCOME | 1,268,649 | 1,058,141 | 3,700,693 | 3,166,223 | ||
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. | (1,676) | (6,997) | (5,213) | (93,531) | ||
Net income attributable to noncontrolling interests – other | (17,457) | (8,124) | (46,795) | (42,309) | ||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,249,516 | $ 1,043,020 | $ 3,648,685 | $ 3,030,383 | ||
Weighted average Class A ordinary shares: | ||||||
Basic | 637,831,341 | 639,217,344 | 638,439,707 | 624,365,464 | ||
Diluted | 649,297,717 | 654,600,026 | 650,144,931 | 655,739,568 | ||
Earnings per Class A ordinary share: | ||||||
Basic | $ 1.96 | $ 1.63 | $ 5.72 | $ 4.85 | ||
Diluted | 1.93 | 1.60 | 5.62 | 4.76 | ||
Cash dividends per share | $ 1.46 | $ 1.33 | $ 2.92 | $ 2.66 | ||
[1] | Effective September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 1,268,649 | $ 1,058,141 | $ 3,700,693 | $ 3,166,223 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation | (102,620) | (230,997) | (69,592) | (136,706) |
Defined benefit plans | 5,890 | (2,683) | 32,881 | 11,436 |
Cash flow hedges | 96,382 | (43,801) | 148,036 | (124,795) |
Investments | (1,148) | 46 | (1,663) | 1,148 |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | (1,496) | (277,435) | 109,662 | (248,917) |
Other comprehensive income (loss) attributable to noncontrolling interests | (4,188) | (5,926) | (4,859) | 340 |
COMPREHENSIVE INCOME | 1,262,965 | 774,780 | 3,805,496 | 2,917,646 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 1,248,020 | 765,585 | 3,758,347 | 2,781,466 |
Comprehensive income attributable to noncontrolling interests | 14,945 | 9,195 | 47,149 | 136,180 |
COMPREHENSIVE INCOME | $ 1,262,965 | $ 774,780 | $ 3,805,496 | $ 2,917,646 |
CONSOLIDATED SHAREHOLDERS' EQUI
CONSOLIDATED SHAREHOLDERS' EQUITY STATEMENT - 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 Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (812) | ||||||||||
Purchases Redemptions Of Noncontrolling Interests And Shares During Period, Value | (83,156) | (78,318) | (78,318) | (4,838) | |||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 666,830 | (729,020) | 997,725 | $ 452,192 | (68,656) | 652,241 | 14,589 | ||||
Upon redemption of Accenture Holdings plc ordinary shares | $ 1 | ||||||||||
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 | 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 |
Beginning Balance at Feb. 28, 2018 | 10,438,426 | $ 57 | $ 14 | $ 0 | 884,982 | 4,266,838 | $ (2,552,028) | 8,149,090 | (1,066,266) | 9,682,687 | 755,739 |
Beginning Balance (in shares) at Feb. 28, 2018 | 40 | 646,634 | 19,719 | ||||||||
Beginning Balance Treasury (in shares) at Feb. 28, 2018 | (28,913) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,058,141 | 1,043,020 | 1,043,020 | 15,121 | |||||||
Other comprehensive income (loss) | (283,361) | (277,435) | (277,435) | (5,926) | |||||||
Purchases of Class A ordinary shares | (719,873) | 965 | $ (719,873) | (718,908) | (965) | ||||||
Purchases of Class A ordinary shares (in shares) | (4,687) | ||||||||||
Share-based compensation expense | 245,900 | 211,739 | 34,161 | 245,900 | |||||||
Purchases Redemptions Of Noncontrolling Interests And Shares During Period, Value | (312) | (312) | (312) | ||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 283,605 | (15,157) | 227,497 | $ 70,889 | 283,229 | 376 | |||||
Upon redemption of Accenture Holdings plc ordinary shares | $ 1 | ||||||||||
Employee share programs (in shares) | 1,674 | 587 | |||||||||
Upon redemption of Accenture Holdings plc ordinary shares (shares) | 25,554 | (19,054) | |||||||||
Upon redemption of Accenture Holdings plc ordinary shares | 404,911 | 404,912 | (404,912) | ||||||||
Dividends | (855,110) | 29,387 | (883,218) | (853,831) | (1,279) | ||||||
Other, net | (14,680) | 125 | (12,062) | (11,937) | (2,743) | ||||||
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 |
Beginning Balance at Aug. 31, 2018 | 10,724,588 | $ 57 | $ 15 | $ 0 | 1,234,623 | 4,870,764 | $ (2,116,948) | 7,952,413 | (1,576,171) | 10,364,753 | 359,835 |
Beginning Balance (in shares) at Aug. 31, 2018 | 40 | 663,328 | 656 | ||||||||
Beginning Balance Treasury (in shares) at Aug. 31, 2018 | (24,333) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 3,700,693 | 3,648,685 | 3,648,685 | 52,008 | |||||||
Other comprehensive income (loss) | 104,803 | 109,662 | 109,662 | (4,859) | |||||||
Purchases of Class A ordinary shares | (2,268,189) | 2,841 | $ (2,268,189) | (2,265,348) | (2,841) | ||||||
Purchases of Class A ordinary shares (in shares) | (14,316) | ||||||||||
Share-based compensation expense | 856,952 | 787,633 | 69,319 | 856,952 | |||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (19) | ||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (16,399) | (16,399) | (16,399) | ||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 754,454 | (884,308) | 1,134,959 | $ 624,127 | (121,250) | 753,528 | 926 | ||||
Employee share programs (in shares) | 8,508 | 3,969 | |||||||||
Dividends | (1,864,353) | 58,035 | (1,919,760) | (1,861,725) | (2,628) | ||||||
Other, net | 12,433 | (2,013) | 14,411 | 12,398 | 35 | ||||||
Ending Balance (in shares) at May. 31, 2019 | 40 | 671,836 | 637 | ||||||||
Ending Balance Treasury (in shares) at May. 31, 2019 | (34,680) | ||||||||||
Ending Balance at May. 31, 2019 | 14,142,958 | $ 57 | $ 15 | $ 0 | 1,195,983 | 6,059,471 | $ (3,761,010) | 11,709,317 | (1,466,509) | 13,737,324 | 405,634 |
Beginning Balance at Feb. 28, 2019 | 13,728,545 | $ 57 | $ 15 | $ 0 | 954,613 | 5,783,062 | $ (3,357,665) | 11,421,964 | (1,465,013) | 13,337,033 | 391,512 |
Beginning Balance (in shares) at Feb. 28, 2019 | 40 | 670,313 | 651 | ||||||||
Beginning Balance Treasury (in shares) at Feb. 28, 2019 | (32,439) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,268,649 | 1,249,516 | 1,249,516 | 19,133 | |||||||
Other comprehensive income (loss) | (5,684) | (1,496) | (1,496) | (4,188) | |||||||
Purchases of Class A ordinary shares | (485,625) | 568 | $ (485,625) | (485,057) | (568) | ||||||
Purchases of Class A ordinary shares (in shares) | (2,792) | ||||||||||
Share-based compensation expense | 263,674 | 226,158 | 37,516 | 263,674 | |||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (14) | ||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (2,829) | (2,829) | (2,829) | ||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 308,177 | (16,437) | 242,228 | $ 82,280 | (249) | 307,822 | 355 | ||||
Employee share programs (in shares) | 1,523 | 551 | |||||||||
Dividends | (931,515) | 31,649 | (961,914) | (930,265) | (1,250) | ||||||
Other, net | (434) | (1,074) | (1,074) | 640 | |||||||
Ending Balance (in shares) at May. 31, 2019 | 40 | 671,836 | 637 | ||||||||
Ending Balance Treasury (in shares) at May. 31, 2019 | (34,680) | ||||||||||
Ending Balance at May. 31, 2019 | 14,142,958 | $ 57 | $ 15 | $ 0 | $ 1,195,983 | $ 6,059,471 | $ (3,761,010) | 11,709,317 | $ (1,466,509) | 13,737,324 | 405,634 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative Effect Adjustment | $ 2,137,976 | $ 2,134,818 | $ 2,134,818 | $ 3,158 |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2019 | May 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,700,693 | $ 3,166,223 |
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | ||
Depreciation, amortization and asset impairments | 652,592 | 691,686 |
Share-based compensation expense | 856,952 | 751,826 |
Deferred income taxes, net | (47,130) | (75,985) |
Other, net | (85,725) | 44,135 |
Change in assets and liabilities, net of acquisitions — | ||
Receivables and contract assets, current and non-current | (493,733) | (652,315) |
Other current and non-current assets | (373,142) | (241,979) |
Accounts payable | 94,144 | (132,607) |
Deferred revenues, current and non-current | 342,633 | 85,853 |
Accrued payroll and related benefits | (67,970) | 7,469 |
Income taxes payable, current and non-current | (52,518) | 100,939 |
Other current and non-current liabilities | (16,096) | 172,188 |
Net cash provided by (used in) operating activities | 4,510,700 | 3,917,433 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (357,749) | (439,804) |
Purchases of businesses and investments, net of cash acquired | (1,055,915) | (456,402) |
Proceeds from sales of businesses and investments, net of cash transferred | 27,915 | 14,325 |
Other investing, net | 6,041 | 7,245 |
Net cash provided by (used in) investing activities | (1,379,708) | (874,636) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of ordinary shares | 754,453 | 666,830 |
Purchases of shares | (2,284,587) | (2,087,270) |
Proceeds from (repayments of) long-term debt, net | (983) | (456) |
Cash dividends paid | (1,864,353) | (1,708,724) |
Other, net | (20,683) | (47,792) |
Net cash provided by (used in) financing activities | (3,416,153) | (3,177,412) |
Effect of exchange rate changes on cash and cash equivalents | (7,041) | (63,400) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (292,202) | (198,015) |
CASH AND CASH EQUIVALENTS, beginning of period | 5,061,360 | 4,126,860 |
CASH AND CASH EQUIVALENTS, end of period | 4,769,158 | 3,928,845 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 1,052,517 | $ 1,133,641 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2018 included in our Annual Report on Form 10-K filed with the SEC on October 24, 2018 . 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, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2019 . 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 As of May 31, 2019 and August 31, 2018 , total allowances recorded for client receivables were $49,216 and $49,913 , respectively. Depreciation and Amortization Depreciation expense was $109,398 and $322,746 for the three and nine months ended May 31, 2019 , respectively, and $101,814 and $315,410 for the three and nine months ended May 31, 2018 , respectively. As of May 31, 2019 and August 31, 2018 , total accumulated depreciation was $2,074,736 and $1,862,098 , respectively. Deferred transition amortization expense was $67,225 and $204,313 for the three and nine months ended May 31, 2019 , respectively, and $95,696 and $248,838 for the three and nine months ended May 31, 2018 , respectively. See Note 6 (Goodwill and Intangible Assets) to these Consolidated Financial Statements for intangible asset amortization balances. Recently Adopted Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09 ( “Topic 606”) On September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaced most existing revenue recognition guidance. The core principle of Topic 606 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. Topic 606 has been applied to contracts that were not completed as of September 1, 2018 . Results for reporting periods beginning after September 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. See Note 2 (Revenues) to these Consolidated Financial Statements for further details. In connection with the adoption of Topic 606, we are now presenting total revenues and no longer reporting revenues before reimbursements. Prior period results have been revised to reflect this change in presentation. As a result of this change, for the three and nine months ended May 31, 2018 , both total revenues and cost of services decreased by $143,858 and $472,632 , respectively, for hardware/software resale previously included in reimbursements. This change had no impact on operating income. The impact of adopting the new standard was not material to our Consolidated Financial Statements. The primary impacts included additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from client contracts, including judgments and changes in estimates. Upon adoption, we recorded a decrease to retained earnings of $6,451 , net of a tax impact of $3,071 , as of September 1, 2018 . The impact of adopting the new standard for the three and nine months ended May 31, 2019 was an increase to revenues of approximately $35.8 million and $54.5 million , respectively. The impact on our balance sheet as of May 31, 2019 was not material with the exception of the classification of $2.4 billion of receivables and $589.6 million of contract assets, which were previously classified as Unbilled services, net. FASB ASU No. 2016-16 On September 1, 2018 , we adopted FASB ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of intra-entity transfers, other than inventory, when the transfer occurs. Upon adoption, we recorded deferred tax assets and an increase in retained earnings of $2,144,427 , and we will recognize incremental income tax expense as these deferred tax assets are utilized. Our fiscal 2019 annual effective tax rate is expected to be approximately 3.3% higher due to the adoption. The adoption had no impact on cash flows. The impact of adoption as of September 1, 2018 of FASB ASU No. 2014-09 (Topic 606) and No. 2016-16 (Topic 740) on our Consolidated Balance Sheets was as follows: Balance as of Adjustments Due to ASU 2014-09 (Topic 606) Adjustments Due to ASU 2016-16 (Topic 740) Balance as of September 1, 2018 Balance Sheet CURRENT ASSETS Receivables from clients, net $ 4,996,454 $ 2,100,402 $ — $ 7,096,856 Unbilled services, net 2,499,914 (2,499,914 ) — — Contract assets — 547,809 — 547,809 Receivables and contract assets $ 7,496,368 $ 148,297 $ — $ 7,644,665 NON-CURRENT ASSETS Unbilled services, net $ 23,036 $ (23,036 ) $ — $ — Contract assets — 23,036 — 23,036 Deferred contract costs 705,124 (2,867 ) — 702,257 Deferred income taxes, net 2,086,807 3,071 2,144,427 4,234,305 CURRENT LIABILITIES Deferred revenues 2,837,682 154,952 — 2,992,634 SHAREHOLDERS' EQUITY Retained earnings 7,952,413 (6,451 ) 2,144,427 10,090,389 FASB ASU No. 2017-07 On September 1, 2018 , we adopted FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance amends certain presentation and disclosure requirements for employers with defined benefit pension and post-retirement medical plans. The standard requires the service cost component of the net benefit cost to be in the same line item as other compensation in operating income and the other components of net benefit cost to be presented outside of operating income on a retrospective basis. Upon adoption, we reclassified $15 million and $41 million for the three and nine months ended May 31, 2018 , respectively and $58 million for fiscal 2018 of operating expenses to non-operating expense to conform with the fiscal 2019 treatment of these expenses. FASB ASU No. 2016-01 On September 1, 2018 , we adopted FASB ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The standard requires investments previously accounted for under the cost method of accounting to be measured at fair value with changes in fair value recognized in net income. Investments in equity securities that do not have readily determinable fair values will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions. We adopted this standard using the prospective method. The adoption did not have a material impact on our Consolidated Financial Statements. New Accounting Pronouncement The following standard, issued by the FASB, will result in a change in practice and will have a financial impact on our Consolidated Financial Statements: Standard Description Accenture Adoption Date Impact on the Financial Statements or Other Significant Matters 2016-02 : Leases and related updates (Topic 842) The ASU 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 allows either a modified retrospective or an effective date transition method. 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. We will adopt the standard using the effective date method. |
REVENUES
REVENUES | 9 Months Ended |
May 31, 2019 | |
Revenues [Abstract] | |
Revenues | 2. REVENUES We account for revenue in accordance with Topic 606, which we adopted on September 1, 2018 using the modified retrospective method. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of accounting in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on the relative standalone selling price. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service based on margins for similar services sold on a standalone basis. While determining relative standalone selling price and identifying separate performance obligations require judgment, generally relative standalone selling prices and the separate performance obligations are readily identifiable as we sell those performance obligations unaccompanied by other performance obligations. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications, requirements or duration. If a contract modification results in the addition of performance obligations priced at a standalone selling price or if the post-modification services are distinct from the services provided prior to the modification, the modification is accounted for separately. If the modified services are not distinct, they are accounted for as part of the existing contract. Our revenues are derived from contracts for outsourcing services, technology integration consulting services and non-technology consulting services. These contracts have different terms based on the scope, performance obligations and complexity of the engagement, which frequently require us to make judgments and estimates in recognizing revenues. We have many types of contracts, including time-and-materials contracts, fixed-price contracts, fee-per-transaction contracts and contracts with multiple fee types. The nature of our contracts gives rise to several types of variable consideration, including incentive fees. Many contracts include incentives or penalties related to costs incurred, benefits produced or adherence to schedules that may increase the variability in revenues and margins earned on such contracts. These variable amounts generally are awarded or refunded upon achievement of or failure to achieve certain performance metrics, milestones or cost targets and can be based upon client discretion. We include these variable fees in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee and it is not probable a significant reversal of revenue will occur. These estimates reflect the expected value of the variable fee and are based on an assessment of our anticipated performance, historical experience and other information available at the time. Our performance obligations are satisfied over time as work progresses or at a point in time. The majority of our revenues are recognized over time based on the extent of progress towards satisfying our performance obligations. The selection of the method to measure progress towards completion requires judgment and is based on the contract and the nature of the services to be provided. Outsourcing Contracts Our outsourcing contracts typically span several years. Revenues are generally recognized on outsourcing contracts over time because our clients benefit from the services as they are performed. Outsourcing contracts require us to provide a series of distinct services each period over the contract term. Revenues from unit-priced contracts are recognized as transactions are processed. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g., time-and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms. Technology Integration Consulting Services Revenues from contracts for technology integration consulting services where we design/redesign, build and implement new or enhanced systems and related processes for our clients are recognized over time as control of the system is transferred continuously to the client. Contracts for technology integration consulting services generally span six months to two years. Generally, revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Revenues, including estimated fees, are recorded proportionally as costs are incurred. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. Non-Technology Integration Consulting Services Our contracts for non-technology integration consulting services are typically less than a year in duration. Revenues are generally recognized over time as our clients benefit from the services as they are performed, or the contract includes termination provisions enabling payment for performance completed to date. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g. time-and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms. Revenues from fixed-price contracts are generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. For non-technology integration consulting contracts which do not qualify to recognize revenue over time, we recognize revenues at a point in time when we satisfy our performance obligations and the client obtains control of the promised good or service. Remaining Performance Obligations On May 31, 2019 , we had approximately $18 billion of remaining performance obligations. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately 39% of our remaining performance obligations as revenue in fiscal 2019 , an additional 37% in fiscal 2020 , and the balance thereafter. See Note 11 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues. Contract Estimates Estimates of total contract revenues and costs are continuously monitored over the life of our contracts, and recorded revenues and cost estimates are subject to revision as the contract progresses. If at any time the estimate of contract profitability indicates an anticipated loss on a technology integration consulting contract, we recognize the loss in the quarter it first becomes probable and reasonably estimable. Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods increased our revenues by approximately $16 million and decreased our revenues by approximately $13 million for the three and nine months ended May 31, 2019 , respectively . No adjustment on any one contract was material to our Consolidated Financial Statements for the three and nine months ended May 31, 2019 . Contract Balances The timing of revenue recognition, billings and cash collections results in Receivables, Contract assets, and Deferred revenues (Contract liabilities) on our Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. Our receivables are rights to consideration that are conditional only upon the passage of time as compared to our contract assets, which are rights to consideration conditional upon additional factors. When we bill or receive payments from our clients before revenue is recognized, we record Contract liabilities. Contract assets and liabilities are reported on our Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period. For some outsourcing contracts, we receive payments for transition or set-up activities, which are deferred and recognized as revenue as the services are provided. These advance payments are typically not a significant financing component because they are used to meet working capital demands in the early stages of a contract and to protect us from the other party failing to complete its obligations under the contract. Deferred transition revenues were $570,310 and $581,395 as of May 31, 2019 and August 31, 2018 , respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Generally, deferred amounts are protected in the event of early termination of the contract and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets. Deferred transition costs were $685,605 and $690,868 as of May 31, 2019 and August 31, 2018 , respectively, and are included in Deferred contract costs. The following table provides information about the balances of our Receivables, Contract assets and Contract liabilities (Deferred revenues): May 31, 2019 As of September 1, 2018 (as adjusted) Receivables, net of allowance $ 7,544,573 $ 7,096,856 Contract assets (current) 589,574 547,809 Receivables and contract assets (current) 8,134,147 7,644,665 Contract assets (non-current) 19,739 23,036 Deferred revenues (current) 3,255,784 2,992,634 Deferred revenues (non-current) 571,769 618,124 Changes in the contract asset and liability balances during the nine months ended May 31, 2019 , were a result of normal business activity and not materially impacted by any other factors. Revenues recognized during the three and nine months ended May 31, 2019 that were included in Deferred revenues as of February 28, 2019 and September 1, 2018 were $1.7 billion and $2.7 billion , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 3. EARNINGS PER SHARE Basic and diluted earnings per share were calculated as follows: Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Basic earnings per share Net income attributable to Accenture plc $ 1,249,516 $ 1,043,020 $ 3,648,685 $ 3,030,383 Basic weighted average Class A ordinary shares 637,831,341 639,217,344 638,439,707 624,365,464 Basic earnings per share $ 1.96 $ 1.63 $ 5.72 $ 4.85 Diluted earnings per share Net income attributable to Accenture plc $ 1,249,516 $ 1,043,020 $ 3,648,685 $ 3,030,383 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 1,676 6,997 5,213 93,531 Net income for diluted earnings per share calculation $ 1,251,192 $ 1,050,017 $ 3,653,898 $ 3,123,914 Basic weighted average Class A ordinary shares 637,831,341 639,217,344 638,439,707 624,365,464 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 855,508 4,294,411 912,175 19,354,992 Diluted effect of employee compensation related to Class A ordinary shares 10,531,355 11,017,024 10,680,792 11,853,822 Diluted effect of share purchase plans related to Class A ordinary shares 79,513 71,247 112,257 165,290 Diluted weighted average Class A ordinary shares 649,297,717 654,600,026 650,144,931 655,739,568 Diluted earnings per share $ 1.93 $ 1.60 $ 5.62 $ 4.76 _______________ (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, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 4. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc: Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign currency translation Beginning balance $ (1,042,240 ) $ (675,752 ) $ (1,075,268 ) $ (770,043 ) Foreign currency translation (108,056 ) (240,840 ) (74,444 ) (137,279 ) Income tax benefit (expense) 1,115 1,264 (246 ) 1,081 Portion attributable to noncontrolling interests 4,321 8,579 5,098 (508 ) Foreign currency translation, net of tax (102,620 ) (230,997 ) (69,592 ) (136,706 ) Ending balance (1,144,860 ) (906,749 ) (1,144,860 ) (906,749 ) Defined benefit plans Beginning balance (392,293 ) (426,500 ) (419,284 ) (440,619 ) Actuarial gains (losses) — 12,044 — 12,044 Pension settlement — — — 2,119 Prior service costs arising during the period — (29,796 ) — (29,796 ) Reclassifications into net periodic pension and 8,389 9,675 39,718 28,472 Income tax benefit (expense) (2,492 ) 4,806 (6,793 ) (1,386 ) Portion attributable to noncontrolling interests (7 ) 588 (44 ) (17 ) Defined benefit plans, net of tax 5,890 (2,683 ) 32,881 11,436 Ending balance (386,403 ) (429,183 ) (386,403 ) (429,183 ) Cash flow hedges Beginning balance (32,356 ) 33,641 (84,010 ) 114,635 Unrealized gain (loss) 142,416 (33,755 ) 219,441 (79,140 ) Reclassification adjustments into Cost of services (19,512 ) (21,265 ) (25,772 ) (81,986 ) Income tax benefit (expense) (26,395 ) 14,506 (45,436 ) 36,145 Portion attributable to noncontrolling interests (127 ) (3,287 ) (197 ) 186 Cash flow hedges, net of tax 96,382 (43,801 ) 148,036 (124,795 ) Ending balance (2) 64,026 (10,160 ) 64,026 (10,160 ) Investments Beginning balance 1,876 2,345 2,391 1,243 Unrealized gain (loss) (1,454 ) — (1,970 ) 1,454 Income tax benefit (expense) 305 — 305 (305 ) Portion attributable to noncontrolling interests 1 46 2 (1 ) Investments, net of tax (1,148 ) 46 (1,663 ) 1,148 Ending balance 728 2,391 728 2,391 Accumulated other comprehensive loss $ (1,466,509 ) $ (1,343,701 ) $ (1,466,509 ) $ (1,343,701 ) _______________ (1) Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing, General and administrative costs and non-operating expenses. (2) As of May 31, 2019 , $55,844 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
May 31, 2019 | |
Business Combination, Goodwill [Abstract] | |
BUSINESS COMBINATIONS | 5. BUSINESS COMBINATIONS During the nine months ended May 31, 2019 , we completed individually immaterial acquisitions for total consideration of $1,034,730 , 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, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | 6. 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 $ 865,509 $ 109,966 $ (13,736 ) $ 961,739 Financial Services 1,162,066 193,802 (12,487 ) 1,343,381 Health & Public Service 959,048 40,585 (4,823 ) 994,810 Products 1,948,401 373,042 (28,009 ) 2,293,434 Resources 447,988 43,518 (6,054 ) 485,452 Total $ 5,383,012 $ 760,913 $ (65,109 ) $ 6,078,816 Goodwill includes immaterial adjustments related to prior period acquisitions. Intangible Assets Our definite-lived intangible assets by major asset class were as follows: August 31, 2018 May 31, 2019 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 862,418 $ (299,702 ) $ 562,716 $ 1,008,968 $ (326,828 ) $ 682,140 Technology 94,844 (55,690 ) 39,154 83,655 (50,701 ) 32,954 Patents 128,179 (66,659 ) 61,520 129,042 (67,075 ) 61,967 Other 50,490 (26,770 ) 23,720 90,888 (24,106 ) 66,782 Total $ 1,135,931 $ (448,821 ) $ 687,110 $ 1,312,553 $ (468,710 ) $ 843,843 Total amortization related to our intangible assets was $44,686 and $125,533 for the three and nine months ended May 31, 2019 , respectively. Total amortization related to our intangible assets was $40,879 and $127,438 for the three and nine months ended May 31, 2018 , respectively. Estimated future amortization related to intangible assets held as of May 31, 2019 is as follows: Fiscal Year Estimated Amortization Remainder of 2019 $ 67,692 2020 166,331 2021 146,590 2022 127,480 2023 111,037 Thereafter 224,713 Total $ 843,843 |
MATERIAL TRANSACTIONS AFFECTING
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY | 9 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 7. MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY Dividends Our dividend activity during the nine months ended May 31, 2019 was as follows: Dividend Per Accenture plc Class A Accenture Canada Holdings Total Cash Dividend Payment Date Record Date Cash Outlay Record Date Cash Outlay November 15, 2018 $ 1.46 October 18, 2018 $ 931,460 October 16, 2018 $ 1,378 $ 932,838 May 15, 2019 $ 1.46 April 11, 2019 $ 930,265 April 9, 2019 $ 1,250 $ 931,515 Total Dividends $ 1,861,725 $ 2,628 $ 1,864,353 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. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
May 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 8. FINANCIAL INSTRUMENTS Derivatives 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, 2019 and 2018 , as well as those expected to be reclassified into Cost of services in the next 12 months, see Note 4 (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 $10,319 and $88,247 for the three and nine months ended May 31, 2019 , respectively, and net losses of $84,480 and $37,698 for the three and nine months ended May 31, 2018 , 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 $ 65,691 $ 29,380 Other non-current assets 57,006 1,065 Other Derivatives Other current assets 23,206 28,700 Total assets $ 145,903 $ 59,145 Liabilities Cash Flow Hedges Other accrued liabilities $ 9,847 $ 50,870 Other non-current liabilities 4,969 64,365 Other Derivatives Other accrued liabilities 8,185 25,455 Total liabilities $ 23,001 $ 140,690 Total fair value $ 122,902 $ (81,545 ) Total notional value $ 8,923,252 $ 8,783,014 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 $ 131,648 $ 23,599 Net derivative liabilities 8,746 105,144 Total fair value $ 122,902 $ (81,545 ) Equity Securities Without Readily Determinable Fair Values We hold investments in equity securities that do not have readily determinable fair values. We record these investments at cost and remeasure them to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $125,724 as of May 31, 2019 . Prior to the adoption of FASB ASU No. 2016-01, these investments were accounted for under the cost method. For additional information, see Note 1 (Basis of Presentation) to these Consolidated Financial Statements. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES On December 22, 2017, the United States 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. In the three months ended February 28, 2018, we recognized 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 additional tax expense of $40,927 resulting from our continued analysis of the Tax Act. Our analysis and accounting for the Tax Act is complete. 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, 2019 and 2018 were 25.6% and 34.4% , respectively. Our effective tax rates for the nine months ended May 31, 2019 and 2018 were 21.1% and 27.2% , respectively. Excluding 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. The effective tax rate for the three months ended May 31, 2019 was lower primarily due to changes in prior year tax liabilities and the geographic distribution of earnings, partially offset by higher expense from the adoption of FASB ASU No. 2016-16. The effective tax rate for the nine months ended May 31, 2019 was lower primarily due to higher benefits from final determinations of prior year taxes, changes in the geographic distribution of earnings and adjustments to prior year tax liabilities. These decreases were partially offset by higher expense from the adoption of FASB ASU No. 2016-16 and lower tax benefits from share-based payments. For additional information, see Note 1 (Basis of Presentation) to these Consolidated Financial Statements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. 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 SinnerSchrader AG subsidiary. As of May 31, 2019 and August 31, 2018 , we have reflected the fair value of approximately $41,000 and $47,000 , respectively, related to redeemable common stock of the subsidiary 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, 2019 and August 31, 2018 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $702,000 and $782,000 , respectively, of which all but approximately $130,000 and $130,000 , 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, 2019 , 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, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 11. 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, geographic regions and type of work is as follows: Revenues Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 (1) May 31, 2019 May 31, 2018 (1) OPERATING GROUPS Communications, Media & Technology $ 2,253,136 $ 2,188,353 $ 6,533,319 $ 6,086,335 Financial Services 2,196,595 2,230,969 6,369,477 6,476,035 Health & Public Service 1,819,775 1,753,407 5,283,364 5,122,021 Products 3,077,227 2,971,195 8,912,588 8,417,382 Resources 1,747,977 1,546,138 5,040,143 4,352,006 Other 4,978 4,934 20,472 34,768 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 GEOGRAPHIC REGIONS North America $ 5,147,948 $ 4,743,465 $ 14,758,046 $ 13,601,132 Europe 3,770,458 3,875,429 11,112,038 11,056,792 Growth Markets 2,181,282 2,076,102 6,289,279 5,830,623 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 TYPE OF WORK Consulting $ 6,236,630 $ 6,062,696 $ 17,990,967 $ 17,083,929 Outsourcing 4,863,058 4,632,300 14,168,396 13,404,618 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 Operating Income Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 (1) May 31, 2019 May 31, 2018 (1) OPERATING GROUPS Communications, Media & Technology $ 425,059 $ 386,558 $ 1,180,418 $ 1,001,096 Financial Services 346,697 386,154 976,759 1,069,329 Health & Public Service 196,203 218,817 539,288 602,047 Products 459,276 456,026 1,272,039 1,247,468 Resources 290,708 187,320 765,077 509,155 TOTAL OPERATING INCOME $ 1,717,943 $ 1,634,875 $ 4,733,581 $ 4,429,095 _______________ (1) Effective September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
May 31, 2019 | |
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” 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, 2018 included in our Annual Report on Form 10-K filed with the SEC on October 24, 2018 . 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, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2019 . |
New Accounting Pronouncements, Policy | New Accounting Pronouncement The following standard, issued by the FASB, will result in a change in practice and will have a financial impact on our Consolidated Financial Statements: Standard Description Accenture Adoption Date Impact on the Financial Statements or Other Significant Matters 2016-02 : Leases and related updates (Topic 842) The ASU 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 allows either a modified retrospective or an effective date transition method. 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. We will adopt the standard using the effective date method. |
INCOME TAXES (Policies)
INCOME TAXES (Policies) | 9 Months Ended |
May 31, 2019 | |
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, 2019 | |
Accounting Policies [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | 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, 2019 and August 31, 2018 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $702,000 and $782,000 , respectively, of which all but approximately $130,000 and $130,000 , 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. |
BASIS OF PRESENTATION Impact of
BASIS OF PRESENTATION Impact of New Accounting Pronouncements Adopted (Tables) | 9 Months Ended |
May 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impact of New Accounting Pronouncements Adopted [Text Block] | The impact of adoption as of September 1, 2018 of FASB ASU No. 2014-09 (Topic 606) and No. 2016-16 (Topic 740) on our Consolidated Balance Sheets was as follows: Balance as of Adjustments Due to ASU 2014-09 (Topic 606) Adjustments Due to ASU 2016-16 (Topic 740) Balance as of September 1, 2018 Balance Sheet CURRENT ASSETS Receivables from clients, net $ 4,996,454 $ 2,100,402 $ — $ 7,096,856 Unbilled services, net 2,499,914 (2,499,914 ) — — Contract assets — 547,809 — 547,809 Receivables and contract assets $ 7,496,368 $ 148,297 $ — $ 7,644,665 NON-CURRENT ASSETS Unbilled services, net $ 23,036 $ (23,036 ) $ — $ — Contract assets — 23,036 — 23,036 Deferred contract costs 705,124 (2,867 ) — 702,257 Deferred income taxes, net 2,086,807 3,071 2,144,427 4,234,305 CURRENT LIABILITIES Deferred revenues 2,837,682 154,952 — 2,992,634 SHAREHOLDERS' EQUITY Retained earnings 7,952,413 (6,451 ) 2,144,427 10,090,389 |
REVENUES Contract Balances (Tab
REVENUES Contract Balances (Tables) | 9 Months Ended |
May 31, 2019 | |
Contract Balances [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | May 31, 2019 As of September 1, 2018 (as adjusted) Receivables, net of allowance $ 7,544,573 $ 7,096,856 Contract assets (current) 589,574 547,809 Receivables and contract assets (current) 8,134,147 7,644,665 Contract assets (non-current) 19,739 23,036 Deferred revenues (current) 3,255,784 2,992,634 Deferred revenues (non-current) 571,769 618,124 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
May 31, 2019 | |
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, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Basic earnings per share Net income attributable to Accenture plc $ 1,249,516 $ 1,043,020 $ 3,648,685 $ 3,030,383 Basic weighted average Class A ordinary shares 637,831,341 639,217,344 638,439,707 624,365,464 Basic earnings per share $ 1.96 $ 1.63 $ 5.72 $ 4.85 Diluted earnings per share Net income attributable to Accenture plc $ 1,249,516 $ 1,043,020 $ 3,648,685 $ 3,030,383 Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) 1,676 6,997 5,213 93,531 Net income for diluted earnings per share calculation $ 1,251,192 $ 1,050,017 $ 3,653,898 $ 3,123,914 Basic weighted average Class A ordinary shares 637,831,341 639,217,344 638,439,707 624,365,464 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 855,508 4,294,411 912,175 19,354,992 Diluted effect of employee compensation related to Class A ordinary shares 10,531,355 11,017,024 10,680,792 11,853,822 Diluted effect of share purchase plans related to Class A ordinary shares 79,513 71,247 112,257 165,290 Diluted weighted average Class A ordinary shares 649,297,717 654,600,026 650,144,931 655,739,568 Diluted earnings per share $ 1.93 $ 1.60 $ 5.62 $ 4.76 _______________ (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 COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
May 31, 2019 | |
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, 2019 May 31, 2018 May 31, 2019 May 31, 2018 Foreign currency translation Beginning balance $ (1,042,240 ) $ (675,752 ) $ (1,075,268 ) $ (770,043 ) Foreign currency translation (108,056 ) (240,840 ) (74,444 ) (137,279 ) Income tax benefit (expense) 1,115 1,264 (246 ) 1,081 Portion attributable to noncontrolling interests 4,321 8,579 5,098 (508 ) Foreign currency translation, net of tax (102,620 ) (230,997 ) (69,592 ) (136,706 ) Ending balance (1,144,860 ) (906,749 ) (1,144,860 ) (906,749 ) Defined benefit plans Beginning balance (392,293 ) (426,500 ) (419,284 ) (440,619 ) Actuarial gains (losses) — 12,044 — 12,044 Pension settlement — — — 2,119 Prior service costs arising during the period — (29,796 ) — (29,796 ) Reclassifications into net periodic pension and 8,389 9,675 39,718 28,472 Income tax benefit (expense) (2,492 ) 4,806 (6,793 ) (1,386 ) Portion attributable to noncontrolling interests (7 ) 588 (44 ) (17 ) Defined benefit plans, net of tax 5,890 (2,683 ) 32,881 11,436 Ending balance (386,403 ) (429,183 ) (386,403 ) (429,183 ) Cash flow hedges Beginning balance (32,356 ) 33,641 (84,010 ) 114,635 Unrealized gain (loss) 142,416 (33,755 ) 219,441 (79,140 ) Reclassification adjustments into Cost of services (19,512 ) (21,265 ) (25,772 ) (81,986 ) Income tax benefit (expense) (26,395 ) 14,506 (45,436 ) 36,145 Portion attributable to noncontrolling interests (127 ) (3,287 ) (197 ) 186 Cash flow hedges, net of tax 96,382 (43,801 ) 148,036 (124,795 ) Ending balance (2) 64,026 (10,160 ) 64,026 (10,160 ) Investments Beginning balance 1,876 2,345 2,391 1,243 Unrealized gain (loss) (1,454 ) — (1,970 ) 1,454 Income tax benefit (expense) 305 — 305 (305 ) Portion attributable to noncontrolling interests 1 46 2 (1 ) Investments, net of tax (1,148 ) 46 (1,663 ) 1,148 Ending balance 728 2,391 728 2,391 Accumulated other comprehensive loss $ (1,466,509 ) $ (1,343,701 ) $ (1,466,509 ) $ (1,343,701 ) _______________ (1) Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing, General and administrative costs and non-operating expenses. (2) As of May 31, 2019 , $55,844 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2019 | |
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 $ 865,509 $ 109,966 $ (13,736 ) $ 961,739 Financial Services 1,162,066 193,802 (12,487 ) 1,343,381 Health & Public Service 959,048 40,585 (4,823 ) 994,810 Products 1,948,401 373,042 (28,009 ) 2,293,434 Resources 447,988 43,518 (6,054 ) 485,452 Total $ 5,383,012 $ 760,913 $ (65,109 ) $ 6,078,816 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our definite-lived intangible assets by major asset class were as follows: August 31, 2018 May 31, 2019 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 862,418 $ (299,702 ) $ 562,716 $ 1,008,968 $ (326,828 ) $ 682,140 Technology 94,844 (55,690 ) 39,154 83,655 (50,701 ) 32,954 Patents 128,179 (66,659 ) 61,520 129,042 (67,075 ) 61,967 Other 50,490 (26,770 ) 23,720 90,888 (24,106 ) 66,782 Total $ 1,135,931 $ (448,821 ) $ 687,110 $ 1,312,553 $ (468,710 ) $ 843,843 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Estimated Amortization Remainder of 2019 $ 67,692 2020 166,331 2021 146,590 2022 127,480 2023 111,037 Thereafter 224,713 Total $ 843,843 |
MATERIAL TRANSACTIONS AFFECTI_2
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividend Activity | Our dividend activity during the nine months ended May 31, 2019 was as follows: Dividend Per Accenture plc Class A Accenture Canada Holdings Total Cash Dividend Payment Date Record Date Cash Outlay Record Date Cash Outlay November 15, 2018 $ 1.46 October 18, 2018 $ 931,460 October 16, 2018 $ 1,378 $ 932,838 May 15, 2019 $ 1.46 April 11, 2019 $ 930,265 April 9, 2019 $ 1,250 $ 931,515 Total Dividends $ 1,861,725 $ 2,628 $ 1,864,353 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
May 31, 2019 | |
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 $ 65,691 $ 29,380 Other non-current assets 57,006 1,065 Other Derivatives Other current assets 23,206 28,700 Total assets $ 145,903 $ 59,145 Liabilities Cash Flow Hedges Other accrued liabilities $ 9,847 $ 50,870 Other non-current liabilities 4,969 64,365 Other Derivatives Other accrued liabilities 8,185 25,455 Total liabilities $ 23,001 $ 140,690 Total fair value $ 122,902 $ (81,545 ) Total notional value $ 8,923,252 $ 8,783,014 |
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 $ 131,648 $ 23,599 Net derivative liabilities 8,746 105,144 Total fair value $ 122,902 $ (81,545 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
May 31, 2019 | |
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, geographic regions and type of work is as follows: Revenues Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 (1) May 31, 2019 May 31, 2018 (1) OPERATING GROUPS Communications, Media & Technology $ 2,253,136 $ 2,188,353 $ 6,533,319 $ 6,086,335 Financial Services 2,196,595 2,230,969 6,369,477 6,476,035 Health & Public Service 1,819,775 1,753,407 5,283,364 5,122,021 Products 3,077,227 2,971,195 8,912,588 8,417,382 Resources 1,747,977 1,546,138 5,040,143 4,352,006 Other 4,978 4,934 20,472 34,768 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 GEOGRAPHIC REGIONS North America $ 5,147,948 $ 4,743,465 $ 14,758,046 $ 13,601,132 Europe 3,770,458 3,875,429 11,112,038 11,056,792 Growth Markets 2,181,282 2,076,102 6,289,279 5,830,623 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 TYPE OF WORK Consulting $ 6,236,630 $ 6,062,696 $ 17,990,967 $ 17,083,929 Outsourcing 4,863,058 4,632,300 14,168,396 13,404,618 TOTAL REVENUES $ 11,099,688 $ 10,694,996 $ 32,159,363 $ 30,488,547 Operating Income Three Months Ended Nine Months Ended May 31, 2019 May 31, 2018 (1) May 31, 2019 May 31, 2018 (1) OPERATING GROUPS Communications, Media & Technology $ 425,059 $ 386,558 $ 1,180,418 $ 1,001,096 Financial Services 346,697 386,154 976,759 1,069,329 Health & Public Service 196,203 218,817 539,288 602,047 Products 459,276 456,026 1,272,039 1,247,468 Resources 290,708 187,320 765,077 509,155 TOTAL OPERATING INCOME $ 1,717,943 $ 1,634,875 $ 4,733,581 $ 4,429,095 _______________ (1) Effective September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Sep. 01, 2018 | |||
Allowance for Doubtful Accounts Receivable, Current | $ 49,216,000 | $ 49,216,000 | $ 49,913,000 | ||||||
Depreciation | 109,398,000 | $ 101,814,000 | 322,746,000 | $ 315,410,000 | |||||
Accumulated depreciation | 2,074,736,000 | 2,074,736,000 | 1,862,098,000 | ||||||
DeferredTransitionAmortizationExpense | 67,225,000 | 95,696,000 | 204,313,000 | 248,838,000 | |||||
Retained earnings | 11,709,317,000 | 11,709,317,000 | 7,952,413,000 | $ 10,090,389,000 | |||||
Revenues | 11,099,688,000 | 10,694,996,000 | [1] | 32,159,363,000 | 30,488,547,000 | [1] | |||
Contract assets, (current) | 589,574,000 | 589,574,000 | 0 | 547,809,000 | |||||
Accounting Standards Update 2014-09 [Member] | |||||||||
Hardware/software resale previously included in reimbursements | 143,858,000 | 472,632,000 | |||||||
Retained earnings | (6,451,000) | ||||||||
Cumulative Effect on Retained Earnings, Tax | 3,071,000 | ||||||||
Receivables previously classified as unbilled services, net | 2,400,000,000 | 2,400,000,000 | |||||||
Contract assets, (current) | 589,600,000 | 589,600,000 | 547,809,000 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||
Revenues | $ 35,800,000 | $ 54,500,000 | |||||||
Accounting Standards Update 2016-16 [Member] | |||||||||
Retained earnings | 2,144,427,000 | ||||||||
Contract assets, (current) | $ 0 | ||||||||
Accounting Standards Update 2017-07 [Member] | |||||||||
Net Periodic Defined Benefits Expense Reclass From Operating to Non-Operating Expense | $ 15,000,000 | $ 41,000,000 | $ 58,000,000 | ||||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-16 [Member] | |||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification, Percent | 3.30% | ||||||||
[1] | Effective September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. |
BASIS OF PRESENTATION ASU Adopt
BASIS OF PRESENTATION ASU Adoption - Balance Sheet Impacts (Details) - USD ($) | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | $ 7,544,573,000 | $ 7,096,856,000 | $ 4,996,454,000 |
Unbilled Services Net Current | 0 | 2,499,914,000 | |
Contract assets, (current) | 589,574,000 | 547,809,000 | 0 |
Receivables and contract assets | 8,134,147,000 | 7,644,665,000 | 7,496,368,000 |
Unbilled Services Net Noncurrent | 0 | 23,036,000 | |
Contract assets (non-current) | 19,739,000 | 23,036,000 | 23,036,000 |
Deferred contract costs | 685,605,000 | 702,257,000 | 705,124,000 |
Deferred Tax Assets, Net, Noncurrent | 4,234,305,000 | 2,086,807,000 | |
Deferred revenues | 3,255,784,000 | 2,992,634,000 | 2,837,682,000 |
Retained earnings | 11,709,317,000 | 10,090,389,000 | 7,952,413,000 |
Accounting Standards Update 2016-16 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | 0 | ||
Unbilled Services Net Current | 0 | ||
Contract assets, (current) | 0 | ||
Receivables and contract assets | 0 | ||
Unbilled Services Net Noncurrent | 0 | ||
Contract assets (non-current) | 0 | ||
Deferred contract costs | 0 | ||
Deferred Tax Assets, Net, Noncurrent | 2,144,427,000 | ||
Deferred revenues | 0 | ||
Retained earnings | 2,144,427,000 | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Receivables from clients, net | 2,100,402,000 | ||
Unbilled Services Net Current | (2,499,914,000) | ||
Contract assets, (current) | $ 589,600,000 | 547,809,000 | |
Receivables and contract assets | 148,297,000 | ||
Unbilled Services Net Noncurrent | (23,036,000) | ||
Contract assets (non-current) | 23,036,000 | 0 | |
Deferred contract costs | (2,867,000) | ||
Deferred Tax Assets, Net, Noncurrent | 3,071,000 | ||
Deferred revenues | 154,952,000 | ||
Retained earnings | $ (6,451,000) | ||
Retained Earnings [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 7,952,413,000 |
REVENUES Performance Obligation
REVENUES Performance Obligations (Details) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 18,000,000,000 | ||
Scenario, Forecast [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Percentage | 37.00% | 39.00% |
REVENUES Contract Estimates (De
REVENUES Contract Estimates (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
May 31, 2019 | May 31, 2019 | |
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price | $ 16,000,000 | $ 13,000,000 |
REVENUES Contract Balances (Det
REVENUES Contract Balances (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2019 | Sep. 01, 2018 | Aug. 31, 2018 | |
Contract Balances [Abstract] | ||||
Deferred Transition Revenues | $ 570,310,000 | $ 570,310,000 | $ 581,395,000 | |
Deferred Transition Costs | 685,605,000 | 685,605,000 | 690,868,000 | |
Receivables, net of allowance | 7,544,573,000 | 7,544,573,000 | $ 7,096,856,000 | 4,996,454,000 |
Contract assets, (current) | 589,574,000 | 589,574,000 | 547,809,000 | 0 |
Receivables and contract assets | 8,134,147,000 | 8,134,147,000 | 7,644,665,000 | 7,496,368,000 |
Contract assets (non-current) | 19,739,000 | 19,739,000 | 23,036,000 | 23,036,000 |
Deferred revenues (current) | 3,255,784,000 | 3,255,784,000 | 2,992,634,000 | 2,837,682,000 |
Deferred revenues (non-current) | 571,769,000 | 571,769,000 | $ 618,124,000 | $ 618,124,000 |
Contract with Customer, Liability, Revenue Recognized | $ 1,700,000,000 | $ 2,700,000,000 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Basic earnings per share | ||||
Net income attributable to Accenture plc | $ 1,249,516 | $ 1,043,020 | $ 3,648,685 | $ 3,030,383 |
Basic weighted average Class A ordinary shares | 637,831,341 | 639,217,344 | 638,439,707 | 624,365,464 |
Basic earnings per share | $ 1.96 | $ 1.63 | $ 5.72 | $ 4.85 |
Diluted earnings per share | ||||
Net income attributable to Accenture plc | $ 1,249,516 | $ 1,043,020 | $ 3,648,685 | $ 3,030,383 |
Net income attributable to noncontrolling interests in Accenture Holdings plc and Accenture Canada Holdings Inc. (1) | 1,676 | 6,997 | 5,213 | 93,531 |
Net income for diluted earnings per share calculation | $ 1,251,192 | $ 1,050,017 | $ 3,653,898 | $ 3,123,914 |
Basic weighted average Class A ordinary shares | 637,831,341 | 639,217,344 | 638,439,707 | 624,365,464 |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) | 855,508 | 4,294,411 | 912,175 | 19,354,992 |
Diluted effect of employee compensation related to Class A ordinary shares | 10,531,355 | 11,017,024 | 10,680,792 | 11,853,822 |
Diluted effect of share purchase plans related to Class A ordinary shares | 79,513 | 71,247 | 112,257 | 165,290 |
Diluted weighted average Class A ordinary shares | 649,297,717 | 654,600,026 | 650,144,931 | 655,739,568 |
Diluted earnings per share | $ 1.93 | $ 1.60 | $ 5.62 | $ 4.76 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | ||
Foreign currency translation | ||||||
Beginning balance | $ (1,042,240) | $ (675,752) | $ (1,075,268) | $ (770,043) | ||
Foreign currency translation | (108,056) | (240,840) | (74,444) | (137,279) | ||
Income tax benefit (expense) | 1,115 | 1,264 | (246) | 1,081 | ||
Portion attributable to noncontrolling interests | 4,321 | 8,579 | 5,098 | (508) | ||
Foreign currency translation, net of tax | (102,620) | (230,997) | (69,592) | (136,706) | ||
Ending balance | (1,144,860) | (906,749) | (1,144,860) | (906,749) | ||
Defined benefit plans | ||||||
Beginning balance | (392,293) | (426,500) | (419,284) | (440,619) | ||
Pension settlement | 0 | 12,044 | 0 | 12,044 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 0 | 0 | 0 | 2,119 | ||
Prior service costs arising during the period | 0 | (29,796) | 0 | (29,796) | ||
Reclassifications into net periodic pension and post-retirement expense (1) | [1] | 8,389 | 9,675 | 39,718 | 28,472 | |
Income tax benefit (expense) | (2,492) | 4,806 | (6,793) | (1,386) | ||
Portion attributable to noncontrolling interests | (7) | 588 | (44) | (17) | ||
Defined benefit plans, net of tax | 5,890 | (2,683) | 32,881 | 11,436 | ||
Ending balance | (386,403) | (429,183) | (386,403) | (429,183) | ||
Cash flow hedges | ||||||
Beginning balance | (32,356) | 33,641 | (84,010) | 114,635 | ||
Unrealized gain (loss) | 142,416 | (33,755) | 219,441 | (79,140) | ||
Reclassification adjustments into Cost of services | (19,512) | (21,265) | (25,772) | (81,986) | ||
Income tax benefit (expense) | (26,395) | 14,506 | (45,436) | 36,145 | ||
Portion attributable to noncontrolling interests | (127) | (3,287) | (197) | 186 | ||
Cash flow hedges, net of tax | 96,382 | (43,801) | 148,036 | (124,795) | ||
Ending balance (2) | [2] | 64,026 | (10,160) | 64,026 | (10,160) | |
Investments | ||||||
Beginning balance | 1,876 | 2,345 | 2,391 | 1,243 | ||
Unrealized gain (loss) | (1,454) | 0 | (1,970) | 1,454 | ||
Income tax benefit (expense) | 305 | 0 | 305 | (305) | ||
Portion attributable to noncontrolling interests | 1 | 46 | 2 | (1) | ||
Investments, net of tax | (1,148) | 46 | (1,663) | 1,148 | ||
Ending balance | 728 | 2,391 | 728 | 2,391 | ||
Accumulated other comprehensive loss | $ (1,466,509) | $ (1,343,701) | $ (1,466,509) | $ (1,343,701) | $ (1,576,171) | |
[1] | Reclassifications into net periodic pension and post-retirement expense are recognized in Cost of services, Sales and marketing, General and administrative costs and non-operating expenses. | |||||
[2] | As of May 31, 2019 , $55,844 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS Derivatives Designated as Cash Flow Hedges (Details) $ in Thousands | 9 Months Ended |
May 31, 2019USD ($) | |
Cost Of Services [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 55,844 |
BUSINESS COMBINATIONS- Addition
BUSINESS COMBINATIONS- Additional Information (Detail) $ in Thousands | 9 Months Ended |
May 31, 2019USD ($) | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisitions [Line Items] | |
Cash Consideration | $ 1,034,730 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 9 Months Ended |
May 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 5,383,012 |
Goodwill, Acquired During Period | 760,913 |
Goodwill, Translation Adjustments | (65,109) |
Goodwill | 6,078,816 |
Communications, Media & Technology | |
Goodwill [Line Items] | |
Goodwill | 865,509 |
Goodwill, Acquired During Period | 109,966 |
Goodwill, Translation Adjustments | (13,736) |
Goodwill | 961,739 |
Financial Services | |
Goodwill [Line Items] | |
Goodwill | 1,162,066 |
Goodwill, Acquired During Period | 193,802 |
Goodwill, Translation Adjustments | (12,487) |
Goodwill | 1,343,381 |
Health & Public Service | |
Goodwill [Line Items] | |
Goodwill | 959,048 |
Goodwill, Acquired During Period | 40,585 |
Goodwill, Translation Adjustments | (4,823) |
Goodwill | 994,810 |
Products | |
Goodwill [Line Items] | |
Goodwill | 1,948,401 |
Goodwill, Acquired During Period | 373,042 |
Goodwill, Translation Adjustments | (28,009) |
Goodwill | 2,293,434 |
Resources | |
Goodwill [Line Items] | |
Goodwill | 447,988 |
Goodwill, Acquired During Period | 43,518 |
Goodwill, Translation Adjustments | (6,054) |
Goodwill | $ 485,452 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,312,553 | $ 1,135,931 |
Accumulated Amortization | (468,710) | (448,821) |
Net Carrying Amount | 843,843 | 687,110 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,008,968 | 862,418 |
Accumulated Amortization | (326,828) | (299,702) |
Net Carrying Amount | 682,140 | 562,716 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 83,655 | 94,844 |
Accumulated Amortization | (50,701) | (55,690) |
Net Carrying Amount | 32,954 | 39,154 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 129,042 | 128,179 |
Accumulated Amortization | (67,075) | (66,659) |
Net Carrying Amount | 61,967 | 61,520 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 90,888 | 50,490 |
Accumulated Amortization | (24,106) | (26,770) |
Net Carrying Amount | $ 66,782 | $ 23,720 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization of Intangible Assets | $ 44,686 | $ 40,879 | $ 125,533 | $ 127,438 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 67,692 | 67,692 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 166,331 | 166,331 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 146,590 | 146,590 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 127,480 | 127,480 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 111,037 | 111,037 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 224,713 | 224,713 | |||
Net Carrying Amount | $ 843,843 | $ 843,843 | $ 687,110 |
MATERIAL TRANSACTIONS AFFECTI_3
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Dividends [Line Items] | ||||
Dividend Per Share | $ 1.46 | $ 1.33 | $ 2.92 | $ 2.66 |
Cash Outlay | $ 1,864,353 | |||
Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||||
Dividends [Line Items] | ||||
Cash Outlay | 2,628 | |||
Class A ordinary shares | ||||
Dividends [Line Items] | ||||
Cash Outlay | $ 1,861,725 | |||
Dividend Payment November 2018 [Member] [Domain] | ||||
Dividends [Line Items] | ||||
Dividend Payment Date | Nov. 15, 2018 | |||
Dividend Per Share | $ 1.46 | |||
Cash Outlay | $ 932,838 | |||
Dividend Payment November 2018 [Member] [Domain] | Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||||
Dividends [Line Items] | ||||
Record Date | Oct. 16, 2018 | |||
Cash Outlay | $ 1,378 | |||
Dividend Payment November 2018 [Member] [Domain] | Class A ordinary shares | ||||
Dividends [Line Items] | ||||
Record Date | Oct. 18, 2018 | |||
Cash Outlay | $ 931,460 | |||
Dividend Payment May 2019 [Member] [Domain] | ||||
Dividends [Line Items] | ||||
Dividend Payment Date | May 15, 2019 | |||
Dividend Per Share | $ 1.46 | |||
Cash Outlay | $ 931,515 | |||
Dividend Payment May 2019 [Member] [Domain] | Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||||
Dividends [Line Items] | ||||
Record Date | Apr. 9, 2019 | |||
Cash Outlay | $ 1,250 | |||
Dividend Payment May 2019 [Member] [Domain] | Class A ordinary shares | ||||
Dividends [Line Items] | ||||
Record Date | Apr. 11, 2019 | |||
Cash Outlay | $ 930,265 |
FINANCIAL INSTRUMENTS - Notiona
FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Detail) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Assets | ||
Fair value of derivative assets | $ 145,903 | $ 59,145 |
Liabilities | ||
Fair value of derivative liabilities | 23,001 | 140,690 |
Total fair value | 122,902 | (81,545) |
Total notional value | 8,923,252 | 8,783,014 |
Cash Flow Hedging [Member] | Other current assets | ||
Assets | ||
Fair value of derivative assets | 65,691 | 29,380 |
Cash Flow Hedging [Member] | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | 9,847 | 50,870 |
Cash Flow Hedging [Member] | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 57,006 | 1,065 |
Cash Flow Hedging [Member] | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 4,969 | 64,365 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 23,206 | 28,700 |
Other Derivatives | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | $ 8,185 | $ 25,455 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized gains or (losses) and changes in the estimated fair value of derivatives not designated as hedges | $ (10,319) | $ (84,480) | $ (88,247) | $ (37,698) |
FINANCIAL INSTRUMENTS Offsettin
FINANCIAL INSTRUMENTS Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Offsetting [Abstract] | ||
Net derivative assets | $ 131,648 | $ 23,599 |
Net derivative liabilities | 8,746 | 105,144 |
Total fair value | $ 122,902 | $ (81,545) |
FINANCIAL INSTRUMENTS Equity Se
FINANCIAL INSTRUMENTS Equity Securities Without Readily Determinable Fair Values (Details) | May 31, 2019USD ($) |
Accounting Standards Update 2016-01 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Equity Securities Without Readily Determinable Fair Values | $ 125,724 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | May 31, 2019 | May 31, 2018 | Feb. 28, 2018 | May 31, 2019 | May 31, 2018 | 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 | 25.60% | 34.40% | 21.10% | 27.20% | ||||
Foreign Income Tax Expense (Benefit) Tax Law Change | $ 80,847 | |||||||
Effective Income Tax Rate Excluding Effect of Tax Cuts and Jobs Acts of 2017 | 26.80% | 21.30% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2019 | Aug. 31, 2018 |
Commitments [Abstract] | ||
Redeemable common stock of subsidiary | $ 41,000 | $ 47,000 |
Indemnifications and Guarantees [Abstract] | ||
Expressly limited performance guarantee | 702,000 | 782,000 |
Portion of guarantee not recoverable | $ 130,000 | $ 130,000 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | May 31, 2018 | [1] | May 31, 2019 | May 31, 2018 | [1] | |
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | $ 1,717,943 | $ 1,634,875 | $ 4,733,581 | $ 4,429,095 | ||
Revenues | 11,099,688 | 10,694,996 | 32,159,363 | 30,488,547 | ||
Communications, Media & Technology | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | 425,059 | 386,558 | 1,180,418 | 1,001,096 | ||
Revenues | 2,253,136 | 2,188,353 | 6,533,319 | 6,086,335 | ||
Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | 346,697 | 386,154 | 976,759 | 1,069,329 | ||
Revenues | 2,196,595 | 2,230,969 | 6,369,477 | 6,476,035 | ||
Health & Public Service | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | 196,203 | 218,817 | 539,288 | 602,047 | ||
Revenues | 1,819,775 | 1,753,407 | 5,283,364 | 5,122,021 | ||
Products | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | 459,276 | 456,026 | 1,272,039 | 1,247,468 | ||
Revenues | 3,077,227 | 2,971,195 | 8,912,588 | 8,417,382 | ||
Resources | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Income (Loss) | 290,708 | 187,320 | 765,077 | 509,155 | ||
Revenues | 1,747,977 | 1,546,138 | 5,040,143 | 4,352,006 | ||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,978 | 4,934 | 20,472 | 34,768 | ||
North America [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 5,147,948 | 4,743,465 | 14,758,046 | 13,601,132 | ||
Europe [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 3,770,458 | 3,875,429 | 11,112,038 | 11,056,792 | ||
Growth Markets [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 2,181,282 | 2,076,102 | 6,289,279 | 5,830,623 | ||
Consulting Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 6,236,630 | 6,062,696 | 17,990,967 | 17,083,929 | ||
Outsourcing Revenue [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 4,863,058 | $ 4,632,300 | $ 14,168,396 | $ 13,404,618 | ||
[1] | Effective September 1, 2018 , we adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and FASB ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Prior period amounts have been revised to conform with the current period presentation. In addition, we updated operating group results for fiscal 2018 to include an acquisition previously categorized within Other. |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) | 9 Months Ended |
May 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |