Accenture Files Q1 2025 10-Q with Financial Updates

TL;DR

Accenture's Q1 2025 10-Q is in, showing their latest financial pulse. #Accenture #10Q

AI Summary

Accenture plc filed its 10-Q for the period ending November 30, 2024. The filing details financial performance and operational updates for the first quarter of fiscal year 2025. Key financial figures and business segment information are presented, reflecting the company's ongoing activities in the business services sector.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Accenture, crucial for understanding the company's current health and future prospects in the global business services market.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures for a publicly traded company.

Key Players & Entities

• Accenture plc (company) — Filer of the 10-Q
• November 30, 2024 (date) — End of the reporting period
• 2025 Q1 (date) — Fiscal quarter reported

FAQ

Key Financial Figures

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

Filing Documents

• acn-20241130.htm (10-Q) — 1163KB
• acn1130202410-qexhibit101.htm (EX-10.1) — 105KB
• acn1130202410-qex311.htm (EX-31.1) — 10KB
• acn1130202410-qex312.htm (EX-31.2) — 10KB
• acn1130202410-qex321.htm (EX-32.1) — 5KB
• acn1130202410-qex322.htm (EX-32.2) — 5KB
• acn-20241130_g1.gif (GRAPHIC) — 13KB
• 0001467373-24-000352.txt ( ) — 6235KB
• acn-20241130.xsd (EX-101.SCH) — 36KB
• acn-20241130_cal.xml (EX-101.CAL) — 101KB
• acn-20241130_def.xml (EX-101.DEF) — 160KB
• acn-20241130_lab.xml (EX-101.LAB) — 540KB
• acn-20241130_pre.xml (EX-101.PRE) — 363KB
• acn-20241130_htm.xml (XML) — 769KB

Financial Information

Part I. Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets as of November 3 0 , 2024 (Unaudited) and August 31, 20 24 3 Consolidated Income Statements (Unaudited) for the three months ended November 3 0 , 2024 and 2023 4 Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended November 3 0 , 2024 and 2023 5 Consolidated Shareholders' Equity Statement (Unaudited) for the three months ended November 3 0 , 2024 and 2023 6 Consolidated Cash Flows Statements (Unaudited) for the three months ended November 3 0 , 2024 and 2023 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 9

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 31

Controls and Procedures

Item 4. Controls and Procedures 31

Other Information

Part II. Other Information 32

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 32

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33

Other Information

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 33

Signatures

Signatures 34 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 November 30, 2024 and August 31, 2024 November 30, 2024 August 31, 2024 ASSETS (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 8,306,055 $ 5,004,469 Short-term investments 5,150 5,396 Receivables and contract assets 14,574,637 13,664,847 Other current assets 2,312,495 2,183,069 Total current assets 25,198,337 20,857,781 NON-CURRENT ASSETS: Contract assets 128,981 120,260 Investments 371,507 334,664 Property and equipment, net 1,507,460 1,521,119 Lease assets 2,669,480 2,757,396 Goodwill 20,868,911 21,120,179 Deferred contract costs 893,898 862,140 Deferred tax assets 4,108,532 4,147,496 Intangibles 2,740,590 2,904,031 Other non-current assets 1,380,374 1,307,297 Total non-current assets 34,669,733 35,074,582 TOTAL ASSETS $ 59,868,070 $ 55,932,363 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt and bank borrowings $ 114,321 $ 946,229 Accounts payable 2,579,165 2,743,807 Deferred revenues 4,711,553 5,174,923 Accrued payroll and related benefits 6,602,324 7,050,833 Income taxes payable 863,673 719,084 Lease liabilities 709,964 726,202 Other accrued liabilities 1,605,968 1,615,049 Total current liabilities 17,186,968 18,976,127 NON-CURRENT LIABILITIES: Long-term debt 5,039,460 78,628 Deferred revenues 623,750 641,091 Retirement obligation 1,845,092 1,815,867 Deferred tax liabilities 453,066 428,845 Income taxes payable 1,366,759 1,514,869 Lease liabilities 2,282,652 2,369,490 Other non-current liabilities 967,900 939,198 Total non-current liabilities 12,578,679 7,787,988 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2024 and August 31, 2024 57 57 Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 674,278,898 and 672,484,852 shares issued as of November 30, 2024 and Au

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 9 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, 2024 included in our Annual Report on Form 10-K filed with the SEC on October 10, 2024. 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 months ended November 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025. Allowance for Credit Losses—Client Receivables and Contract Assets As of November 30, 2024 and August 31, 2024, the

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 10 Depreciation and Amortization As of November 30, 2024 and August 31, 2024, total accumulated depreciation was $ 2,752,886 and $ 2,713,855 , 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 months ended November 30, 2024 and 2023, respectively. Three Months Ended November 30, 2024 November 30, 2023 Depreciation $ 133,099 $ 133,245 Amortization - Deferred transition 85,324 98,491 Amortization - Intangible assets 160,214 111,631 Operating lease cost 186,529 175,014 Other 4,174 3,019 Total depreciation, amortization and other $ 569,340 $ 521,400 New Accounting Pronouncements On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures. On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option. We are in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not our financia

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 2. Revenues Disaggregation of Revenue See Note 12 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues. Remaining Performance Obligations We had remaining performance obligations of approximately $ 29 billion and $ 30 billion as of November 30, 2024 and August 31, 2024, 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 58 % of our remaining performance obligations as of November 30, 2024 as revenue in fiscal 2025, an additional 20 % in fiscal 2026, 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 months ended November 30, 2024 and 2023. Contract Balances Deferred transition revenues were $ 623,750 and $ 641,091 as of November 30, 2024 and August 31, 2024, 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. Deferred transition costs were

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 3. Earnings Per Share Basic and diluted earnings per share are calculated as follows: Three Months Ended November 30, 2024 November 30, 2023 Basic earnings per share Net income attributable to Accenture plc $ 2,278,894 $ 1,973,444 Basic weighted average Class A ordinary shares 625,676,922 627,996,111 Basic earnings per share $ 3.64 $ 3.14 Diluted earnings per share Net income attributable to Accenture plc $ 2,278,894 $ 1,973,444 Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1) 2,170 2,016 Net income for diluted earnings per share calculation $ 2,281,064 $ 1,975,460 Basic weighted average Class A ordinary shares 625,676,922 627,996,111 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 595,837 641,659 Diluted effect of employee compensation related to Class A ordinary shares 8,185,818 8,492,332 Diluted effect of share purchase plans related to Class A ordinary shares 197,833 268,259 Diluted weighted average Class A ordinary shares (2) 634,656,410 637,398,361 Diluted earnings per share $ 3.59 $ 3.10 (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. 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. (2) The weighted average diluted shares outstanding for the calculation of diluted earnings per share excludes an immaterial amount of shares issuable upon the vesting of restricted stock units because their effects were antidilutive. Table of Contents

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 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 November 30, 2024 November 30, 2023 Foreign currency translation Beginning balance $ ( 1,295,743 ) $ ( 1,510,632 ) Foreign currency translation ( 486,087 ) 67,789 Income tax benefit (expense) 1,030 2,240 Portion attributable to noncontrolling interests 10,074 ( 1,837 ) Foreign currency translation, net of tax ( 474,983 ) 68,192 Ending balance ( 1,770,726 ) ( 1,442,440 ) Defined benefit plans Beginning balance ( 254,172 ) ( 226,503 ) Reclassifications into net periodic pension and post-retirement expense ( 17,680 ) 44,294 Income tax benefit (expense) 1,907 ( 7,865 ) Portion attributable to noncontrolling interests 15 ( 37 ) Defined benefit plans, net of tax ( 15,758 ) 36,392 Ending balance ( 269,930 ) ( 190,111 ) Cash flow hedges Beginning balance ( 4,827 ) ( 5,966 ) Unrealized gain (loss) 14,598 23,614 Reclassification adjustments into Cost of services ( 7,477 ) ( 10,600 ) Income tax benefit (expense) ( 11,036 ) ( 1,701 ) Portion attributable to noncontrolling interests 4 ( 11 ) Cash flow hedges, net of tax ( 3,911 ) 11,302 Ending balance (1) ( 8,738 ) 5,336 Accumulated other comprehensive loss $ ( 2,049,394 ) $ ( 1,627,215 ) (1) As of November 30, 2024, $ 25,149 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. Table of Contents

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 14 5. Business Combinations During the three months ended November 30, 2024, we completed individually immaterial acquisitions for total consideration of $ 184,871 , net of cash acquired. The pro forma effects of these acquisitions on our operations were not material. 6. Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: August 31, 2024 Additions/ Adjustments Foreign Currency Translation November 30, 2024 Americas (1) $ 11,960,650 $ 31,993 $ ( 33,777 ) $ 11,958,866 EMEA 7,341,686 109,591 ( 307,796 ) 7,143,481 Asia Pacific (1) 1,817,843 842 ( 52,121 ) 1,766,564 Total $ 21,120,179 $ 142,426 $ ( 393,694 ) $ 20,868,911 (1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America. With this change, North America became the Americas market and Growth Markets became the Asia Pacific market. Prior period amounts have been reclassified to conform with the current period presentation. Goodwill includes immaterial adjustments related to prior period acquisitions. Intangible Assets Our definite-lived intangible assets by major asset class are as follows: August 31, 2024 November 30, 2024 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 3,924,339 $ ( 1,336,679 ) $ 2,587,660 $ 3,861,361 $ ( 1,412,787 ) $ 2,448,574 Technology 335,845 ( 183,182 ) 152,663 338

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View this 10-Q filing on SEC EDGAR