Accenture plc Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>Accenture plc filed its Q2 2024 10-Q report, detailing financial positions as of February 29, 2024.</b>

AI Summary

Accenture plc (ACN) filed a Quarterly Report (10-Q) with the SEC on March 21, 2024. Accenture plc filed a 10-Q report for the period ending February 29, 2024. The filing covers the second quarter of fiscal year 2024. The report includes financial data as of February 29, 2024, and August 31, 2023. Key financial statement components like retained earnings, additional paid-in capital, and treasury stock are detailed. The company's fiscal year ends on August 31.

Why It Matters

For investors and stakeholders tracking Accenture plc, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial snapshot of Accenture's performance and financial health. Understanding these filings is crucial for tracking the company's operational progress and making informed investment decisions.

Risk Assessment

Risk Level: low — Accenture plc shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant deviations from typical reporting.

Analyst Insight

Monitor future 10-Q filings for revenue growth, net income trends, and any changes in debt-to-equity ratios to assess ongoing performance.

Key Numbers

• 2024-02-29 — Period of Report End Date (10-Q Filing)
• 2024-03-21 — Filed As Of Date (10-Q Filing)
• 2023-08-31 — Fiscal Year End (Company Information)

Key Players & Entities

• Accenture plc (company) — Filer
• 2024-02-29 (date) — Period of Report
• 2024-03-21 (date) — Filed as of date
• 2023-08-31 (date) — Fiscal year end
• USD (currency) — Currency
• EUR (currency) — Currency

FAQ

Industry Context

Accenture operates in the IT services and consulting industry, providing a wide range of services to clients globally.

Regulatory Implications

Companies like Accenture are subject to SEC regulations for financial reporting, including the timely filing of 10-Q and 10-K reports.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Compare key financial metrics with previous periods to identify trends.
3. Note any disclosures regarding risks, legal proceedings, or significant accounting policies.

Key Dates

• 2024-02-29: Quarterly Period End — Financial data reported as of this date.
• 2024-03-21: Filing Date — Date the 10-Q was submitted to the SEC.
• 2023-08-31: Fiscal Year End — Defines the annual reporting cycle for the company.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the previous fiscal year's annual report (10-K) and prior quarterly reports.

Key Financial Figures

• $0.0000225 — red Class A ordinary shares, par value $0.0000225 per share ACN New York Stock Exchange

Filing Documents

• acn-20240229.htm (10-Q) — 1551KB
• acn229202410-qex101.htm (EX-10.1) — 57KB
• acn229202410-qex102.htm (EX-10.2) — 185KB
• acn229202410-qex103.htm (EX-10.3) — 153KB
• acn229202410-qex104.htm (EX-10.4) — 150KB
• acn229202410-qex105.htm (EX-10.5) — 144KB
• acn229202410-qex106.htm (EX-10.6) — 198KB
• acn229202410-qex107.htm (EX-10.7) — 172KB
• acn229202410-qex311.htm (EX-31.1) — 10KB
• acn229202410-qex312.htm (EX-31.2) — 10KB
• acn229202410-qex321.htm (EX-32.1) — 5KB
• acn229202410-qex322.htm (EX-32.2) — 5KB
• acn-20240229_g1.gif (GRAPHIC) — 13KB
• 0001467373-24-000108.txt (&nbsp;) — 7692KB
• acn-20240229.xsd (EX-101.SCH) — 31KB
• acn-20240229_cal.xml (EX-101.CAL) — 92KB
• acn-20240229_def.xml (EX-101.DEF) — 146KB
• acn-20240229_lab.xml (EX-101.LAB) — 481KB
• acn-20240229_pre.xml (EX-101.PRE) — 331KB
• acn-20240229_htm.xml (XML) — 921KB

Financial Information

Part I. Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets as of February 29 , 202 4 (Unaudited) and August 31, 2023 3 Consolidated Income Statements (Unaudited) for the three and six months ended February 29 , 202 4 and February 28, 20 23 4 Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended February 29 , 202 4 and February 28, 202 3 5 Consolidated Shareholders' Equity Statement (Unaudited) for the three and six months ended February 29 , 202 4 and February 28 , 202 3 6 Consolidated Cash Flows Statements (Unaudited) for the six months ended February 29 , 202 4 and February 28, 20 23 10

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

Other Information

Part II. Other Information 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 37 Table of Contents Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts) ACCENTURE FORM 10-Q 3

— Financial Information

Part I — Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets February 29, 2024 and August 31, 2023 February 29, 2024 August 31, 2023 ASSETS (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 5,121,107 $ 9,045,032 Short-term investments 4,540 4,575 Receivables and contract assets 13,080,504 12,227,186 Other current assets 2,122,670 2,105,138 Total current assets 20,328,821 23,381,931 NON-CURRENT ASSETS: Contract assets 126,355 106,994 Investments 238,934 197,443 Property and equipment, net 1,458,836 1,530,007 Lease assets 2,635,038 2,637,479 Goodwill 17,947,306 15,573,003 Deferred contract costs 815,715 851,972 Deferred tax assets 4,098,881 4,154,878 Other non-current assets 3,657,585 2,811,598 Total non-current assets 30,978,650 27,863,374 TOTAL ASSETS $ 51,307,471 $ 51,245,305 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt and bank borrowings $ 111,141 $ 104,810 Accounts payable 2,228,446 2,491,173 Deferred revenues 5,363,972 4,907,152 Accrued payroll and related benefits 5,955,341 7,506,030 Income taxes payable 420,452 720,778 Lease liabilities 682,553 690,417 Other accrued liabilities 1,374,109 1,588,678 Total current liabilities 16,136,014 18,009,038 NON-CURRENT LIABILITIES: Long-term debt 71,635 43,093 Deferred revenues 647,020 653,954 Retirement obligation 1,607,405 1,595,638 Deferred tax liabilities 454,496 395,280 Income taxes payable 1,304,336 1,313,971 Lease liabilities 2,293,252 2,310,714 Other non-current liabilities 836,889 465,024 Total non-current liabilities 7,215,033 6,777,674 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of February 29, 2024 and August 31, 2023 57 57 Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 670,405,499 and 664,616,285 shares issued as of February 29, 2024 and August 31, 2023, respectively 15 15 C

Notes To Consolidated Financial Statements

Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) ACCENTURE FORM 10-Q 11 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, 2023 included in our Annual Report on Form 10-K filed with the SEC on October 12, 2023. 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 six months ended February 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2024. Allowance for Credit Losses—Client Receivables and Contract Assets As of February 29, 2024 and August 31,

Notes To Consolidated Financial Statements

Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) ACCENTURE FORM 10-Q 12 Depreciation and Amortization As of February 29, 2024 and August 31, 2023, total accumulated depreciation was $ 2,730,911 and $ 2,574,685 , respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and six months ended February 29, 2024 and February 28, 2023, respectively. Three Months Ended Six Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Depreciation $ 134,997 $ 137,742 $ 268,242 $ 281,791 Amortization - Deferred transition 92,865 85,160 191,356 155,600 Amortization - Intangible assets 119,625 120,212 231,256 229,281 Operating lease cost 173,215 184,226 348,229 364,728 Other 8,226 5,136 11,245 7,305 Total depreciation, amortization and other $ 528,928 $ 532,476 $ 1,050,328 $ 1,038,705 Business Optimization During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs. We recorded $ 1.1 billion in fiscal 2023 related to these actions and expect to record approximately $ 450 million in fiscal 2024 for a total of $ 1.5 billion, primarily related to employee severance. The actual amount and timing of severance and other personnel costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates. Total b usiness optimization costs by reportable operating segment for the three and six months ended February 29, 2024 and February 28, 2023, respectively, were as follows: Three Months Ended Six Months Ended February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 North America $ 4,689 $ 176,980 $ 50,618 $ 176,980 EM

Notes To Consolidated Financial Statements

Notes To Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed) ACCENTURE FORM 10-Q 13 2. Revenues Disaggregation of Revenue See Note 11 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues. Remaining Performance Obligations We had remaining performance obligations of approximately $ 27 billion and $ 26 billion as of February 29, 2024 and August 31, 2023, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately 51 % of our remaining performance obligations as of February 29, 2024 as revenue in fiscal 2024, an additional 26 % in fiscal 2025, and the balance thereafter. Contract Estimates Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and six months ended February 29, 2024 and February 28, 2023, respectively. Contract Balances Deferred transition revenues were $ 647,020 and $ 653,954 as of February 29, 2024 and August 31, 2023, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provid

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