Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | ||
Nov. 30, 2019 | Dec. 02, 2019 | Aug. 31, 2019 | |
Entity Incorporation, State or Country Code | L2 | ||
Document Transition Report | false | ||
Document Quarterly Report | true | ||
Document Type | 10-Q | ||
Entity File Number | 001-34448 | ||
Amendment Flag | false | ||
Document Period End Date | Nov. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q1 | ||
Title of 12(b) Security | Class A ordinary shares, par value $0.0000225 per share | ||
Trading Symbol | ACN | ||
Security Exchange Name | NYSE | ||
Entity Registrant Name | Accenture plc | ||
Entity Address, Address Line One | 1 Grand Canal Square | ||
Entity Address, Address Line Two | Grand Canal Harbour | ||
Entity Address, City or Town | Dublin | ||
Entity Address, Postal Zip Code | 2 | ||
Entity Address, Country | IE | ||
Country Region | 353 | ||
City Area Code | 1 | ||
Local Phone Number | 646-2000 | ||
Entity Central Index Key | 0001467373 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Tax Identification Number | 98-0627530 | ||
Class A ordinary shares | |||
Entity Common Stock, Shares Outstanding | 656,946,050 | ||
Treasury Stock, Shares | 21,950,289 | 18,964,863 | |
Class X Ordinary Shares | |||
Entity Common Stock, Shares Outstanding | 593,689 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,810,537 | $ 6,126,853 |
Short-term investments | 3,303 | 3,313 |
Receivables and contract assets | 8,577,386 | 8,095,071 |
Other current assets | 1,214,878 | 1,225,364 |
Total current assets | 15,606,104 | 15,450,601 |
NON-CURRENT ASSETS: | ||
Contract assets | 58,071 | 71,002 |
Investments | 278,765 | 240,313 |
Property and equipment, net | 1,386,440 | 1,391,166 |
Lease assets | 3,154,501 | 0 |
Goodwill | 6,300,004 | 6,205,550 |
Deferred contract costs | 691,727 | 681,492 |
Deferred tax assets | 4,300,909 | 4,349,464 |
Other non-current assets | 1,394,191 | 1,400,292 |
Total non-current assets | 17,564,608 | 14,339,279 |
TOTAL ASSETS | 33,170,712 | 29,789,880 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 3,698 | 6,411 |
Accounts payable | 1,581,112 | 1,646,641 |
Deferred revenues | 2,986,524 | 3,188,835 |
Accrued payroll and related benefits | 4,652,038 | 4,890,542 |
Income taxes payable | 448,010 | 378,017 |
Lease liabilities | 710,787 | 0 |
Other accrued liabilities | 817,239 | 951,450 |
Total current liabilities | 11,199,408 | 11,061,896 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 15,935 | 16,247 |
Deferred revenues | 585,301 | 565,224 |
Retirement obligation | 1,784,347 | 1,765,914 |
Deferred tax liabilities | 144,659 | 133,232 |
Income taxes payable | 905,952 | 892,688 |
Lease liabilities | 2,651,651 | 0 |
Other non-current liabilities | 282,251 | 526,988 |
Total non-current liabilities | 6,370,096 | 3,900,293 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 1,525,898 | 1,411,903 |
Additional paid-in capital | 6,162,252 | 5,804,448 |
Treasury shares, at cost: Ordinary, 40,000 shares as of November 30, 2019 and August 31, 2019; Class A ordinary, 21,950,289 and 18,964,863 shares as of November 30, 2019 and August 31, 2019, respectively | (1,977,391) | (1,388,376) |
Retained earnings | 11,236,275 | 10,421,538 |
Accumulated other comprehensive loss | (1,779,968) | (1,840,577) |
Total Accenture plc shareholders’ equity | 15,167,138 | 14,409,008 |
Noncontrolling interests | 434,070 | 418,683 |
Total shareholders’ equity | 15,601,208 | 14,827,691 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 33,170,712 | 29,789,880 |
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: | ||
Total shareholders’ equity | $ 11,236,275 | $ 10,421,538 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Nov. 30, 2019$ / sharesshares | Nov. 30, 2019€ / sharesshares | Aug. 31, 2019$ / sharesshares | Aug. 31, 2019€ / 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 | 656,946,050 | 656,946,050 | 654,739,267 | 654,739,267 |
Treasury shares, ordinary shares | 21,950,289 | 21,950,289 | 18,964,863 | 18,964,863 |
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 | 593,689 | 593,689 | 609,404 | 609,404 |
Ordinary shares, shares outstanding | 593,689 | 593,689 | 609,404 | 609,404 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
REVENUES: | ||
Revenues | $ 11,358,958 | $ 10,605,546 |
OPERATING EXPENSES: | ||
Cost of services | 7,711,199 | 7,308,121 |
Sales and marketing | 1,191,123 | 1,070,016 |
General and administrative costs | 689,373 | 598,397 |
Total operating expenses | 9,591,695 | 8,976,534 |
OPERATING INCOME | 1,767,263 | 1,629,012 |
Interest income | 27,419 | 19,631 |
Interest expense | (5,474) | (4,505) |
Other income (expense), net | 11,439 | (33,654) |
INCOME BEFORE INCOME TAXES | 1,800,647 | 1,610,484 |
Income tax expense | 425,479 | 319,160 |
NET INCOME | 1,375,168 | 1,291,324 |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | (1,741) | (1,888) |
Net income attributable to noncontrolling interests – other | (16,459) | (14,716) |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,356,968 | $ 1,274,720 |
Weighted average Class A ordinary shares: | ||
Basic | 635,722,309 | 638,877,445 |
Diluted | 649,389,444 | 652,151,450 |
Earnings per Class A ordinary share: | ||
Basic | $ 2.13 | $ 2 |
Diluted | 2.09 | 1.96 |
Cash dividends per share | $ 0.80 | $ 1.46 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 1,375,168 | $ 1,291,324 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||
Foreign currency translation | 37,730 | (8,617) |
Defined benefit plans | 8,752 | 20,413 |
Cash flow hedges | 14,127 | 88,344 |
Investments | 0 | (515) |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | 60,609 | 99,625 |
Other comprehensive income (loss) attributable to noncontrolling interests | 1,180 | (2,296) |
COMPREHENSIVE INCOME | 1,436,957 | 1,388,653 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 1,417,577 | 1,374,345 |
Comprehensive income attributable to noncontrolling interests | 19,380 | 14,308 |
COMPREHENSIVE INCOME | $ 1,436,957 | $ 1,388,653 |
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, 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 | 1,291,324 | 1,274,720 | 1,274,720 | 16,604 | |||||||
Other comprehensive income (loss) | 97,329 | 99,625 | 99,625 | (2,296) | |||||||
Purchases of Class A ordinary shares | (787,508) | 1,026 | $ (787,508) | (786,482) | (1,026) | ||||||
Purchases of Class A ordinary shares (in shares) | (4,861) | ||||||||||
Share-based compensation expense | 246,516 | 214,713 | 31,803 | 246,516 | |||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (5) | ||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (819) | (819) | (819) | ||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 266,182 | (133,965) | 277,039 | $ 156,008 | (33,244) | 265,838 | 344 | ||||
Employee share programs (in shares) | 2,213 | 988 | |||||||||
Dividends | (932,838) | 27,594 | (959,054) | (931,460) | (1,378) | ||||||
Other, net | 12,818 | (3,064) | (14,411) | 11,347 | 1,471 | ||||||
Ending Balance (in shares) at Nov. 30, 2018 | 40 | 665,541 | 651 | ||||||||
Ending Balance Treasury (in shares) at Nov. 30, 2018 | (28,206) | ||||||||||
Ending Balance at Nov. 30, 2018 | 13,055,568 | $ 57 | $ 15 | $ 0 | 1,342,965 | 5,176,749 | $ (2,748,448) | 10,384,064 | (1,476,546) | 12,678,856 | 376,712 |
Beginning Balance at Aug. 31, 2019 | 14,827,691 | $ 57 | $ 15 | $ 0 | 1,411,903 | 5,804,448 | $ (1,388,376) | 10,421,538 | (1,840,577) | 14,409,008 | 418,683 |
Beginning Balance (in shares) at Aug. 31, 2019 | 40 | 654,739 | 609 | ||||||||
Beginning Balance Treasury (in shares) at Aug. 31, 2019 | (19,005) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 1,375,168 | 1,356,968 | 1,356,968 | 18,200 | |||||||
Other comprehensive income (loss) | 61,789 | 60,609 | 60,609 | 1,180 | |||||||
Purchases of Class A ordinary shares | (724,618) | 811 | $ (724,618) | (723,807) | (811) | ||||||
Purchases of Class A ordinary shares (in shares) | (3,821) | ||||||||||
Share-based compensation expense | 274,929 | 238,677 | 36,252 | 274,929 | |||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (15) | ||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (4,593) | (4,593) | (4,593) | ||||||||
Issuances of Class A ordinary shares | |||||||||||
Employee share programs | 300,400 | (142,925) | 323,660 | $ 135,603 | (16,263) | 300,075 | 325 | ||||
Employee share programs (in shares) | 2,207 | 836 | |||||||||
Dividends | (508,381) | 18,243 | (525,968) | (507,725) | (656) | ||||||
Other, net | (1,177) | 1,674 | 1,674 | (2,851) | |||||||
Ending Balance (in shares) at Nov. 30, 2019 | 40 | 656,946 | 594 | ||||||||
Ending Balance Treasury (in shares) at Nov. 30, 2019 | (21,990) | ||||||||||
Ending Balance at Nov. 30, 2019 | $ 15,601,208 | $ 57 | $ 15 | $ 0 | $ 1,525,898 | $ 6,162,252 | $ (1,977,391) | $ 11,236,275 | $ (1,779,968) | $ 15,167,138 | $ 434,070 |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,375,168 | $ 1,291,324 |
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | ||
Depreciation, amortization and other | 399,458 | 211,685 |
Share-based compensation expense | 274,929 | 246,516 |
Deferred tax expense (benefit) | 36,591 | (2,634) |
Other, net | (120,927) | (42,244) |
Change in assets and liabilities, net of acquisitions — | ||
Receivables and contract assets, current and non-current | (436,872) | (536,882) |
Other current and non-current assets | (101,096) | (155,787) |
Accounts payable | (61,929) | (14,487) |
Deferred revenues, current and non-current | (185,313) | 13,280 |
Accrued payroll and related benefits | (261,592) | 81,117 |
Income taxes payable, current and non-current | 84,840 | (47,554) |
Other current and non-current liabilities | (216,346) | (16,826) |
Net cash provided by (used in) operating activities | 786,911 | 1,027,508 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (95,063) | (77,691) |
Purchases of businesses and investments, net of cash acquired | (109,848) | (200,417) |
Proceeds from sales of businesses and investments | 39,200 | 441 |
Other investing, net | (182) | 4,799 |
Net cash provided by (used in) investing activities | (165,893) | (272,868) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares | 300,400 | 266,182 |
Purchases of shares | (729,211) | (788,327) |
Proceeds from (repayments of) long-term debt, net | (570) | (369) |
Cash dividends paid | (508,381) | (932,838) |
Other, net | (10,462) | (6,816) |
Net cash provided by (used in) financing activities | (948,224) | (1,462,168) |
Effect of exchange rate changes on cash and cash equivalents | 10,890 | 9,958 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (316,316) | (697,570) |
CASH AND CASH EQUIVALENTS, beginning of period | 6,126,853 | 5,061,360 |
CASH AND CASH EQUIVALENTS, end of period | 5,810,537 | 4,363,790 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 292,787 | $ 297,166 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 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, 2019 included in our Annual Report on Form 10-K filed with the SEC on October 29, 2019 . 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, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2020 . Allowances for Client Receivables As of November 30, 2019 and August 31, 2019 , total allowances recorded for client receivables were $45,016 and $45,538 , respectively. Depreciation and Amortization Depreciation expense was $97,090 and $102,713 for the three months ended November 30, 2019 and 2018 , respectively. As of November 30, 2019 and August 31, 2019 , total accumulated depreciation was $2,096,462 and $1,956,029 , respectively. Deferred transition amortization expense was $67,914 and $68,879 for the three months ended November 30, 2019 and 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. 2016-02 and related updates (“Topic 842”) On September 1, 2019 , we adopted FASB ASU No. 2016-02, Leases, and related updates (“Topic 842”) using the effective date method. Prior period amounts were not adjusted. The primary impact of adoption is the requirement for lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by both operating and finance leases. Enhanced quantitative and qualitative disclosures about leasing arrangements are also required. We elected the package of practical expedients which does not require reassessment of prior conclusions related to identifying leases, lease classification or initial direct costs. We also elected the practical expedient to combine lease and nonlease components, accounting for the combined components as a single lease component, for our office real estate and automobile leases. The standard did not have a material impact on our Consolidated Income Statement. The impact of adopting Topic 842 on our Consolidated Balance Sheets was as follows: Balance Sheet Balance as of August 31, 2019 Adjustments due to ASU 2016-02 (Topic 842) Balance as of September 1, 2019 CURRENT ASSETS Other current assets $ 1,225,364 $ (38,666 ) $ 1,186,698 NON-CURRENT ASSETS Lease assets — 3,169,608 3,169,608 Other non-current assets 1,400,292 (10,333 ) 1,389,959 CURRENT LIABILITIES Lease liabilities — 699,399 699,399 Other accrued liabilities 951,450 (703 ) 950,747 NON-CURRENT LIABILITIES Lease liabilities — 2,666,344 2,666,344 Other non-current liabilities 526,988 (244,431 ) 282,557 See Note 7 (Leases) to these Consolidated Financial Statements for further details. FASB ASU No. 2018-09 ( “Subtopic 350-40”) On September 1, 2019 , we prospectively adopted FASB ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 clarifies and aligns the accounting and capitalization of implementation costs in cloud computing arrangements that are service arrangements with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC No. 350-40. Implementation costs that are currently capitalized in software licensing arrangements (e.g. costs to configure the software) will be capitalized in cloud computing arrangements, and costs expensed in software license arrangements (e.g. data conversion, training, and business process re-engineering) will be expensed in cloud computing arrangements. The adoption did not have a material impact on our Consolidated Financial Statements. |
REVENUES
REVENUES | 3 Months Ended |
Nov. 30, 2019 | |
Revenues [Abstract] | |
Revenues | 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 $19 billion and $20 billion as of November 30, 2019 and August 31, 2019 , 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 61% of our remaining performance obligations as of November 30, 2019 as revenue in fiscal 2020 , an additional 19% in fiscal 2021 , 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, 2019 and 2018 , respectively. Contract Balances Deferred transition revenues were $583,531 and $563,245 as of November 30, 2019 and August 31, 2019 , 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 $691,727 and $681,492 as of November 30, 2019 and August 31, 2019 , 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): As of November 30, 2019 As of August 31, 2019 Receivables, net of allowance $ 7,908,781 $ 7,467,338 Contract assets (current) 668,605 627,733 Receivables and contract assets (current) 8,577,386 8,095,071 Contract assets (non-current) 58,071 71,002 Deferred revenues (current) 2,986,524 3,188,835 Deferred revenues (non-current) 585,301 565,224 Changes in the contract asset and liability balances during the three months ended November 30, 2019 , were a result of normal business activity and not materially impacted by any other factors. Revenues recognized during the three months ended November 30, 2019 that were included in Deferred revenues as of August 31, 2019 were $1.8 billion . Revenues recognized during the three months ended November 30, 2018 that were included in Deferred revenues as of September 1, 2018 were $1.8 billion . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Nov. 30, 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 November 30, 2019 November 30, 2018 Basic earnings per share Net income attributable to Accenture plc $ 1,356,968 $ 1,274,720 Basic weighted average Class A ordinary shares 635,722,309 638,877,445 Basic earnings per share $ 2.13 $ 2.00 Diluted earnings per share Net income attributable to Accenture plc $ 1,356,968 $ 1,274,720 Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) 1,741 1,888 Net income for diluted earnings per share calculation $ 1,358,709 $ 1,276,608 Basic weighted average Class A ordinary shares 635,722,309 638,877,445 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) 815,515 945,336 Diluted effect of employee compensation related to Class A ordinary shares 12,626,225 12,093,353 Diluted effect of share purchase plans related to Class A ordinary shares 225,395 235,316 Diluted weighted average Class A ordinary shares 649,389,444 652,151,450 Diluted earnings per share $ 2.09 $ 1.96 _______________ (1) Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. 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 | 3 Months Ended |
Nov. 30, 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 November 30, 2019 November 30, 2018 Foreign currency translation Beginning balance $ (1,207,975 ) $ (1,075,268 ) Foreign currency translation 40,145 (12,396 ) Income tax benefit (expense) (1,264 ) 1,324 Portion attributable to noncontrolling interests (1,151 ) 2,455 Foreign currency translation, net of tax 37,730 (8,617 ) Ending balance (1,170,245 ) (1,083,885 ) Defined benefit plans Beginning balance (672,323 ) (419,284 ) Reclassifications into net periodic pension and 12,784 22,894 Income tax benefit (expense) (4,021 ) (2,451 ) Portion attributable to noncontrolling interests (11 ) (30 ) Defined benefit plans, net of tax 8,752 20,413 Ending balance (663,571 ) (398,871 ) Cash flow hedges Beginning balance 38,993 (84,010 ) Unrealized gain (loss) 38,408 115,678 Reclassification adjustments into Cost of services (20,019 ) 1,878 Income tax benefit (expense) (4,244 ) (29,082 ) Portion attributable to noncontrolling interests (18 ) (130 ) Cash flow hedges, net of tax 14,127 88,344 Ending balance (2) 53,120 4,334 Investments Beginning balance 728 2,391 Unrealized gain (loss) — (516 ) Portion attributable to noncontrolling interests — 1 Investments, net of tax — (515 ) Ending balance 728 1,876 Accumulated other comprehensive loss $ (1,779,968 ) $ (1,476,546 ) _______________ (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 November 30, 2019 , $49,723 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 | 3 Months Ended |
Nov. 30, 2019 | |
Business Combination, Goodwill [Abstract] | |
BUSINESS COMBINATIONS | 5. BUSINESS COMBINATIONS During the three months ended November 30, 2019 , we completed individually immaterial acquisitions for total consideration of $97,028 , 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 | 3 Months Ended |
Nov. 30, 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 November 30, Communications, Media & Technology $ 992,743 $ 19,381 $ 4,577 $ 1,016,701 Financial Services 1,393,628 (1,027 ) 8,736 1,401,337 Health & Public Service 1,005,428 27,076 3,014 1,035,518 Products 2,328,317 19,355 10,526 2,358,198 Resources 485,434 381 2,435 488,250 Total $ 6,205,550 $ 65,166 $ 29,288 $ 6,300,004 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, 2019 November 30, 2019 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 1,013,976 $ (358,130 ) $ 655,846 $ 1,053,237 $ (398,751 ) $ 654,486 Technology 119,686 (45,851 ) 73,835 111,510 (42,838 ) 68,672 Patents 127,796 (66,167 ) 61,629 127,552 (65,833 ) 61,719 Other 78,344 (28,875 ) 49,469 76,985 (32,555 ) 44,430 Total $ 1,339,802 $ (499,023 ) $ 840,779 $ 1,369,284 $ (539,977 ) $ 829,307 Total amortization related to our intangible assets was $53,372 and $40,093 for the three months ended November 30, 2019 and 2018 , respectively. Estimated future amortization related to intangible assets held as of November 30, 2019 is as follows: Fiscal Year Estimated Amortization Remainder of 2020 $ 145,127 2021 158,646 2022 137,918 2023 123,029 2024 98,037 Thereafter 166,550 Total $ 829,307 |
LEASES
LEASES | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 7. LEASES We account for leases in accordance with Topic 842. See Note 1 (Basis of Presentation) to these Consolidated Financial Statements for further information on our adoption. As a lessee, substantially all of our lease obligation is for office real estate. Our significant judgments used in determining our lease obligation include whether a contract is or contains a lease and the determination of the discount rate used to calculate the lease liability. Our leases may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancelable only by the payment of penalties. Our lease assets and liabilities include these options in the lease term when it is reasonably certain that they will be exercised. In certain cases, we sublease excess office real estate to third-party tenants. Lease assets and liabilities recognized at the lease commencement date are determined predominantly as the present value of the payments due over the lease term. Unless the implicit rate can be determined, we use our incremental borrowing rate on that date to calculate the present value. Our incremental borrowing rate approximates the rate at which we could borrow, on a secured basis for a similar term, an amount equal to our lease payments in a similar economic environment. Effective September 1, 2019 , when we are the lessee, all leases are recognized as lease liabilities and associated lease assets on the Consolidated Balance Sheet. Lease liabilities represent our obligation to make payments arising from the lease. Lease assets represent our right to use an underlying asset for the lease term and may also include advance payments, initial direct costs or lease incentives. Fixed and variable payments that depend upon an index or rate, such as the Consumer Price Index (CPI), are included in the recognition of lease assets and liabilities at the commencement-date rate. Other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost, are recognized in the Consolidated Income Statement in the period incurred. As of November 30, 2019 , we had no material finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. Lease costs were as follows: Three Months Ended November 30, 2019 Operating lease cost $ 181,082 Variable lease cost 48,159 Sublease income (6,538 ) Total net lease cost $ 222,703 Supplemental information related to operating lease transactions was as follows: Three Months Ended November 30, 2019 Lease liability payments $ 174,857 Lease assets obtained in exchange for liabilities $ 111,949 As of November 30, 2019 , our operating leases had a weighted average remaining lease term of 7.4 years and a weighted average discount rate of 4.2% . The following maturity analysis presents future undiscounted cash outflows for operating leases as of November 30, 2019 : Lease Payments Sublease Receipts 2020 (Remainder) $ 545,128 $ (15,789 ) 2021 668,309 (15,975 ) 2022 567,493 (7,616 ) 2023 463,033 (7,493 ) 2024 388,902 (7,459 ) Thereafter 1,255,478 (32,479 ) Total lease payments (receipts) 3,888,343 $ (86,811 ) Less interest (525,905 ) Total lease liabilities $ 3,362,438 As of November 30, 2019 , we have entered into operating leases that have not yet commenced with future lease payments of $430 million that are not reflected in the table above. These leases are primarily related to office real estate and will commence in or before fiscal year 2022 with lease terms of up to 17 years. Future minimum rental commitments under non-cancelable operating leases as of August 31, 2019 , which were accounted for in accordance with Topic 840, were as follows: Lease Payments Sublease Receipts 2020 $ 688,020 $ (24,884 ) 2021 597,307 (17,908 ) 2022 516,544 (8,535 ) 2023 428,481 (7,541 ) 2024 363,107 (7,184 ) Thereafter 1,246,097 (30,708 ) $ 3,839,556 $ (96,760 ) |
MATERIAL TRANSACTIONS AFFECTING
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 8. MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY Dividends Our dividend activity during the three months ended November 30, 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, 2019 $ 0.80 October 17, 2019 $ 507,725 October 15, 2019 $ 656 $ 508,381 The payment of the cash dividends also resulted in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. Subsequent Event On December 16, 2019 , the Board of Directors of Accenture plc declared a quarterly cash dividend of $0.80 per share on its Class A ordinary shares for shareholders of record at the close of business on January 16, 2020 payable on February 14, 2020 . The payment of the cash dividend will result in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Nov. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 9. 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 months ended November 30, 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 $56,619 and $48,983 for the three months ended November 30, 2019 and 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: November 30, August 31, Assets Cash Flow Hedges Other current assets $ 59,675 $ 53,033 Other non-current assets 50,686 49,525 Other Derivatives Other current assets 7,126 8,059 Total assets $ 117,487 $ 110,617 Liabilities Cash Flow Hedges Other accrued liabilities $ 9,952 $ 18,826 Other non-current liabilities 6,390 8,770 Other Derivatives Other accrued liabilities 14,292 32,195 Total liabilities $ 30,634 $ 59,791 Total fair value $ 86,853 $ 50,826 Total notional value $ 8,953,147 $ 8,709,917 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: November 30, August 31, Net derivative assets $ 98,125 $ 88,811 Net derivative liabilities 11,272 37,985 Total fair value $ 86,853 $ 50,826 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 $149,525 and $131,675 as of November 30, 2019 and August 31, 2019 , respectively . |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. 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. Our effective tax rates for the three months ended November 30, 2019 and 2018 were 23.6% and 19.8% , respectively. The effective tax rate for the three months ended November 30, 2019 was higher primarily due to lower benefits from final determinations of prior year taxes and the phased-in effects of US tax reform. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES 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 November 30, 2019 and August 31, 2019 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $730,000 and $794,000 , respectively, of which all but approximately $144,000 and $128,000 , 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 November 30, 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, including the putative class action lawsuit discussed below, 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. On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc. (“Marriott”) in the U.S. District Court for the District of Maryland. The complaint alleges negligence by us, and seeks monetary damages, costs and attorneys’ fees and other related relief, relating to a data security incident involving unauthorized access to the reservations database of Starwood Worldwide Resorts, Inc. (“Starwood”), which was acquired by Marriott on September 23, 2016. Since 2009, we have provided certain IT infrastructure outsourcing services to Starwood. We believe the lawsuit is without merit and we will vigorously defend it. We cannot reasonably estimate a range of loss, if any, at this time. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 12. 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 November 30, 2019 November 30, 2018 OPERATING GROUPS Communications, Media & Technology $ 2,245,448 $ 2,134,576 Financial Services 2,189,913 2,120,162 Health & Public Service 1,968,837 1,754,490 Products 3,216,705 2,928,510 Resources 1,733,533 1,651,539 Other 4,522 16,269 TOTAL REVENUES $ 11,358,958 $ 10,605,546 GEOGRAPHIC REGIONS (1) North America $ 5,287,812 $ 4,856,302 Europe 3,789,657 3,713,832 Growth Markets 2,281,489 2,035,412 TOTAL REVENUES $ 11,358,958 $ 10,605,546 TYPE OF WORK Consulting $ 6,377,251 $ 5,967,372 Outsourcing 4,981,707 4,638,174 TOTAL REVENUES $ 11,358,958 $ 10,605,546 _______________ (1) Effective September 1, 2019 we revised the reporting of our geographic regions for the movement of one country from Growth Markets to Europe. Prior period amounts have been reclassified to conform with the current period presentation. Operating Income Three Months Ended November 30, 2019 November 30, 2018 OPERATING GROUPS Communications, Media & Technology $ 391,157 $ 387,021 Financial Services 316,232 360,848 Health & Public Service 251,992 197,435 Products 521,978 437,585 Resources 285,904 246,123 TOTAL OPERATING INCOME $ 1,767,263 $ 1,629,012 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Nov. 30, 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, 2019 included in our Annual Report on Form 10-K filed with the SEC on October 29, 2019 . 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, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2020 . |
INCOME TAXES (Policies)
INCOME TAXES (Policies) | 3 Months Ended |
Nov. 30, 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) | 3 Months Ended |
Nov. 30, 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 November 30, 2019 and August 31, 2019 , our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $730,000 and $794,000 , respectively, of which all but approximately $144,000 and $128,000 , 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) | 3 Months Ended |
Nov. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impact of New Accounting Pronouncements Adopted [Text Block] | The impact of adopting Topic 842 on our Consolidated Balance Sheets was as follows: Balance Sheet Balance as of August 31, 2019 Adjustments due to ASU 2016-02 (Topic 842) Balance as of September 1, 2019 CURRENT ASSETS Other current assets $ 1,225,364 $ (38,666 ) $ 1,186,698 NON-CURRENT ASSETS Lease assets — 3,169,608 3,169,608 Other non-current assets 1,400,292 (10,333 ) 1,389,959 CURRENT LIABILITIES Lease liabilities — 699,399 699,399 Other accrued liabilities 951,450 (703 ) 950,747 NON-CURRENT LIABILITIES Lease liabilities — 2,666,344 2,666,344 Other non-current liabilities 526,988 (244,431 ) 282,557 |
REVENUES Contract Balances (Tab
REVENUES Contract Balances (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Contract Balances [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about the balances of our Receivables, Contract assets and Contract liabilities (Deferred revenues): As of November 30, 2019 As of August 31, 2019 Receivables, net of allowance $ 7,908,781 $ 7,467,338 Contract assets (current) 668,605 627,733 Receivables and contract assets (current) 8,577,386 8,095,071 Contract assets (non-current) 58,071 71,002 Deferred revenues (current) 2,986,524 3,188,835 Deferred revenues (non-current) 585,301 565,224 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended November 30, 2019 November 30, 2018 Basic earnings per share Net income attributable to Accenture plc $ 1,356,968 $ 1,274,720 Basic weighted average Class A ordinary shares 635,722,309 638,877,445 Basic earnings per share $ 2.13 $ 2.00 Diluted earnings per share Net income attributable to Accenture plc $ 1,356,968 $ 1,274,720 Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) 1,741 1,888 Net income for diluted earnings per share calculation $ 1,358,709 $ 1,276,608 Basic weighted average Class A ordinary shares 635,722,309 638,877,445 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) 815,515 945,336 Diluted effect of employee compensation related to Class A ordinary shares 12,626,225 12,093,353 Diluted effect of share purchase plans related to Class A ordinary shares 225,395 235,316 Diluted weighted average Class A ordinary shares 649,389,444 652,151,450 Diluted earnings per share $ 2.09 $ 1.96 _______________ (1) Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. 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) | 3 Months Ended |
Nov. 30, 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 November 30, 2019 November 30, 2018 Foreign currency translation Beginning balance $ (1,207,975 ) $ (1,075,268 ) Foreign currency translation 40,145 (12,396 ) Income tax benefit (expense) (1,264 ) 1,324 Portion attributable to noncontrolling interests (1,151 ) 2,455 Foreign currency translation, net of tax 37,730 (8,617 ) Ending balance (1,170,245 ) (1,083,885 ) Defined benefit plans Beginning balance (672,323 ) (419,284 ) Reclassifications into net periodic pension and 12,784 22,894 Income tax benefit (expense) (4,021 ) (2,451 ) Portion attributable to noncontrolling interests (11 ) (30 ) Defined benefit plans, net of tax 8,752 20,413 Ending balance (663,571 ) (398,871 ) Cash flow hedges Beginning balance 38,993 (84,010 ) Unrealized gain (loss) 38,408 115,678 Reclassification adjustments into Cost of services (20,019 ) 1,878 Income tax benefit (expense) (4,244 ) (29,082 ) Portion attributable to noncontrolling interests (18 ) (130 ) Cash flow hedges, net of tax 14,127 88,344 Ending balance (2) 53,120 4,334 Investments Beginning balance 728 2,391 Unrealized gain (loss) — (516 ) Portion attributable to noncontrolling interests — 1 Investments, net of tax — (515 ) Ending balance 728 1,876 Accumulated other comprehensive loss $ (1,779,968 ) $ (1,476,546 ) _______________ (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 November 30, 2019 , $49,723 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) | 3 Months Ended |
Nov. 30, 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 November 30, Communications, Media & Technology $ 992,743 $ 19,381 $ 4,577 $ 1,016,701 Financial Services 1,393,628 (1,027 ) 8,736 1,401,337 Health & Public Service 1,005,428 27,076 3,014 1,035,518 Products 2,328,317 19,355 10,526 2,358,198 Resources 485,434 381 2,435 488,250 Total $ 6,205,550 $ 65,166 $ 29,288 $ 6,300,004 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our definite-lived intangible assets by major asset class were as follows: August 31, 2019 November 30, 2019 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 1,013,976 $ (358,130 ) $ 655,846 $ 1,053,237 $ (398,751 ) $ 654,486 Technology 119,686 (45,851 ) 73,835 111,510 (42,838 ) 68,672 Patents 127,796 (66,167 ) 61,629 127,552 (65,833 ) 61,719 Other 78,344 (28,875 ) 49,469 76,985 (32,555 ) 44,430 Total $ 1,339,802 $ (499,023 ) $ 840,779 $ 1,369,284 $ (539,977 ) $ 829,307 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year Estimated Amortization Remainder of 2020 $ 145,127 2021 158,646 2022 137,918 2023 123,029 2024 98,037 Thereafter 166,550 Total $ 829,307 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | As of November 30, 2019 , we had no material finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. Lease costs were as follows: Three Months Ended November 30, 2019 Operating lease cost $ 181,082 Variable lease cost 48,159 Sublease income (6,538 ) Total net lease cost $ 222,703 |
Supplemental information related to operating lease transactions [Table Text Block] | Supplemental information related to operating lease transactions was as follows: Three Months Ended November 30, 2019 Lease liability payments $ 174,857 Lease assets obtained in exchange for liabilities $ 111,949 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following maturity analysis presents future undiscounted cash outflows for operating leases as of November 30, 2019 : Lease Payments Sublease Receipts 2020 (Remainder) $ 545,128 $ (15,789 ) 2021 668,309 (15,975 ) 2022 567,493 (7,616 ) 2023 463,033 (7,493 ) 2024 388,902 (7,459 ) Thereafter 1,255,478 (32,479 ) Total lease payments (receipts) 3,888,343 $ (86,811 ) Less interest (525,905 ) Total lease liabilities $ 3,362,438 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum rental commitments under non-cancelable operating leases as of August 31, 2019 , which were accounted for in accordance with Topic 840, were as follows: Lease Payments Sublease Receipts 2020 $ 688,020 $ (24,884 ) 2021 597,307 (17,908 ) 2022 516,544 (8,535 ) 2023 428,481 (7,541 ) 2024 363,107 (7,184 ) Thereafter 1,246,097 (30,708 ) $ 3,839,556 $ (96,760 ) |
MATERIAL TRANSACTIONS AFFECTI_2
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Equity [Abstract] | |
Schedule of Dividend Activity | Our dividend activity during the three months ended November 30, 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, 2019 $ 0.80 October 17, 2019 $ 507,725 October 15, 2019 $ 656 $ 508,381 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Nov. 30, 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: November 30, August 31, Assets Cash Flow Hedges Other current assets $ 59,675 $ 53,033 Other non-current assets 50,686 49,525 Other Derivatives Other current assets 7,126 8,059 Total assets $ 117,487 $ 110,617 Liabilities Cash Flow Hedges Other accrued liabilities $ 9,952 $ 18,826 Other non-current liabilities 6,390 8,770 Other Derivatives Other accrued liabilities 14,292 32,195 Total liabilities $ 30,634 $ 59,791 Total fair value $ 86,853 $ 50,826 Total notional value $ 8,953,147 $ 8,709,917 |
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: November 30, August 31, Net derivative assets $ 98,125 $ 88,811 Net derivative liabilities 11,272 37,985 Total fair value $ 86,853 $ 50,826 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | 12. 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 November 30, 2019 November 30, 2018 OPERATING GROUPS Communications, Media & Technology $ 2,245,448 $ 2,134,576 Financial Services 2,189,913 2,120,162 Health & Public Service 1,968,837 1,754,490 Products 3,216,705 2,928,510 Resources 1,733,533 1,651,539 Other 4,522 16,269 TOTAL REVENUES $ 11,358,958 $ 10,605,546 GEOGRAPHIC REGIONS (1) North America $ 5,287,812 $ 4,856,302 Europe 3,789,657 3,713,832 Growth Markets 2,281,489 2,035,412 TOTAL REVENUES $ 11,358,958 $ 10,605,546 TYPE OF WORK Consulting $ 6,377,251 $ 5,967,372 Outsourcing 4,981,707 4,638,174 TOTAL REVENUES $ 11,358,958 $ 10,605,546 _______________ (1) Effective September 1, 2019 we revised the reporting of our geographic regions for the movement of one country from Growth Markets to Europe. Prior period amounts have been reclassified to conform with the current period presentation. Operating Income Three Months Ended November 30, 2019 November 30, 2018 OPERATING GROUPS Communications, Media & Technology $ 391,157 $ 387,021 Financial Services 316,232 360,848 Health & Public Service 251,992 197,435 Products 521,978 437,585 Resources 285,904 246,123 TOTAL OPERATING INCOME $ 1,767,263 $ 1,629,012 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 45,016 | $ 45,538 | |
Depreciation | 97,090 | $ 102,713 | |
Accumulated depreciation | 2,096,462 | 1,956,029 | |
DeferredTransitionAmortizationExpense | 67,914 | 68,879 | |
Retained earnings | 11,236,275 | 10,421,538 | |
Revenues | 11,358,958 | $ 10,605,546 | |
Contract assets, (current) | $ 668,605 | $ 627,733 |
BASIS OF PRESENTATION ASU Adopt
BASIS OF PRESENTATION ASU Adoption - Balance Sheet Impacts (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Sep. 01, 2019 | Aug. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current assets | $ 1,214,878 | $ 1,186,698 | $ 1,225,364 |
Contract assets (non-current) | 58,071 | 71,002 | |
Deferred contract costs | 691,727 | 681,492 | |
Deferred revenues | 2,986,524 | 3,188,835 | |
Retained earnings | 11,236,275 | 10,421,538 | |
Lease assets | 3,154,501 | 3,169,608 | 0 |
Other non-current assets | 1,394,191 | 1,389,959 | 1,400,292 |
Lease liabilities | 710,787 | 699,399 | 0 |
Other accrued liabilities | 817,239 | 950,747 | 951,450 |
Lease liabilities | 2,651,651 | 2,666,344 | 0 |
Other non-current liabilities | $ 282,251 | 282,557 | $ 526,988 |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current assets | (38,666) | ||
Lease assets | 3,169,608 | ||
Other non-current assets | (10,333) | ||
Lease liabilities | 699,399 | ||
Other accrued liabilities | (703) | ||
Lease liabilities | 2,666,344 | ||
Other non-current liabilities | $ (244,431) |
REVENUES Performance Obligation
REVENUES Performance Obligations (Details) - USD ($) $ in Billions | 3 Months Ended | |||
Nov. 30, 2019 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Document Period End Date | Nov. 30, 2019 | |||
Revenue, Remaining Performance Obligation, Amount | $ 19 | $ 20 | ||
Forecast [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Percentage | 19.00% | 61.00% |
REVENUES Contract Balances (Det
REVENUES Contract Balances (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Contract Balances [Abstract] | |||
Deferred transition revenues | $ (583,531,000) | $ 563,245,000 | |
Deferred Transition Costs | 691,727,000 | 681,492,000 | |
Receivables, net of allowance | 7,908,781,000 | 7,467,338,000 | |
Contract assets, (current) | 668,605,000 | 627,733,000 | |
Receivables and contract assets | 8,577,386,000 | 8,095,071,000 | |
Contract assets (non-current) | 58,071,000 | 71,002,000 | |
Deferred revenues (current) | 2,986,524,000 | 3,188,835,000 | |
Deferred revenues (non-current) | 585,301,000 | $ 565,224,000 | |
Contract with Customer, Liability, Revenue Recognized | $ 1,800,000,000 | $ 1,800,000,000 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Basic earnings per share | ||
Net income attributable to Accenture plc | $ 1,356,968 | $ 1,274,720 |
Basic weighted average Class A ordinary shares | 635,722,309 | 638,877,445 |
Basic earnings per share | $ 2.13 | $ 2 |
Diluted earnings per share | ||
Net income attributable to Accenture plc | $ 1,356,968 | $ 1,274,720 |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) | 1,741 | 1,888 |
Net income for diluted earnings per share calculation | $ 1,358,709 | $ 1,276,608 |
Basic weighted average Class A ordinary shares | 635,722,309 | 638,877,445 |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) | 815,515 | 945,336 |
Diluted effect of employee compensation related to Class A ordinary shares | 12,626,225 | 12,093,353 |
Diluted effect of share purchase plans related to Class A ordinary shares | 225,395 | 235,316 |
Diluted weighted average Class A ordinary shares | 649,389,444 | 652,151,450 |
Diluted earnings per share | $ 2.09 | $ 1.96 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | ||
Foreign currency translation | ||||
Beginning balance | $ (1,207,975) | $ (1,075,268) | ||
Foreign currency translation | 40,145 | (12,396) | ||
Income tax benefit (expense) | (1,264) | 1,324 | ||
Portion attributable to noncontrolling interests | (1,151) | 2,455 | ||
Foreign currency translation, net of tax | 37,730 | (8,617) | ||
Ending balance | (1,170,245) | (1,083,885) | ||
Defined benefit plans | ||||
Beginning balance | (672,323) | (419,284) | ||
Reclassifications into net periodic pension and post-retirement expense (1) | [1] | 12,784 | 22,894 | |
Income tax benefit (expense) | (4,021) | (2,451) | ||
Portion attributable to noncontrolling interests | (11) | (30) | ||
Defined benefit plans, net of tax | 8,752 | 20,413 | ||
Ending balance | (663,571) | (398,871) | ||
Cash flow hedges | ||||
Beginning balance | 38,993 | (84,010) | ||
Unrealized gain (loss) | 38,408 | 115,678 | ||
Reclassification adjustments into Cost of services | (20,019) | 1,878 | ||
Income tax benefit (expense) | (4,244) | (29,082) | ||
Portion attributable to noncontrolling interests | (18) | (130) | ||
Cash flow hedges, net of tax | 14,127 | 88,344 | ||
Ending balance (2) | [2] | 53,120 | 4,334 | |
Investments | ||||
Beginning balance | 728 | 2,391 | ||
Unrealized gain (loss) | 0 | (516) | ||
Portion attributable to noncontrolling interests | 0 | 1 | ||
Investments, net of tax | 0 | (515) | ||
Ending balance | 728 | 1,876 | ||
Accumulated other comprehensive loss | $ (1,779,968) | $ (1,476,546) | $ (1,840,577) | |
[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 November 30, 2019 , $49,723 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 | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 49,723 |
BUSINESS COMBINATIONS- Addition
BUSINESS COMBINATIONS- Additional Information (Detail) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisitions [Line Items] | |
Cash Consideration | $ 97,028 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 6,205,550 |
Goodwill, Acquired During Period | 65,166 |
Goodwill, Translation Adjustments | 29,288 |
Goodwill | 6,300,004 |
Communications, Media & Technology | |
Goodwill [Line Items] | |
Goodwill | 992,743 |
Goodwill, Acquired During Period | 19,381 |
Goodwill, Translation Adjustments | 4,577 |
Goodwill | 1,016,701 |
Financial Services | |
Goodwill [Line Items] | |
Goodwill | 1,393,628 |
Goodwill, Acquired During Period | (1,027) |
Goodwill, Translation Adjustments | 8,736 |
Goodwill | 1,401,337 |
Health & Public Service | |
Goodwill [Line Items] | |
Goodwill | 1,005,428 |
Goodwill, Acquired During Period | 27,076 |
Goodwill, Translation Adjustments | 3,014 |
Goodwill | 1,035,518 |
Products | |
Goodwill [Line Items] | |
Goodwill | 2,328,317 |
Goodwill, Acquired During Period | 19,355 |
Goodwill, Translation Adjustments | 10,526 |
Goodwill | 2,358,198 |
Resources | |
Goodwill [Line Items] | |
Goodwill | 485,434 |
Goodwill, Acquired During Period | 381 |
Goodwill, Translation Adjustments | 2,435 |
Goodwill | $ 488,250 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,369,284 | $ 1,339,802 |
Accumulated Amortization | (539,977) | (499,023) |
Net Carrying Amount | 829,307 | 840,779 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,053,237 | 1,013,976 |
Accumulated Amortization | (398,751) | (358,130) |
Net Carrying Amount | 654,486 | 655,846 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 111,510 | 119,686 |
Accumulated Amortization | (42,838) | (45,851) |
Net Carrying Amount | 68,672 | 73,835 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 127,552 | 127,796 |
Accumulated Amortization | (65,833) | (66,167) |
Net Carrying Amount | 61,719 | 61,629 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 76,985 | 78,344 |
Accumulated Amortization | (32,555) | (28,875) |
Net Carrying Amount | $ 44,430 | $ 49,469 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | Aug. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 53,372 | $ 40,093 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 145,127 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 158,646 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 137,918 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 123,029 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 98,037 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 166,550 | ||
Net Carrying Amount | $ 829,307 | $ 840,779 |
LEASES (Detail)
LEASES (Detail) $ in Millions | Nov. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.20% |
Lessee, Operating Lease, Lease Not yet Commenced, Amount | $ 430 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 17 years |
LEASES Lease Cost (Details)
LEASES Lease Cost (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Lease, Cost [Abstract] | |
Operating Lease, Cost | $ 181,082 |
Variable Lease, Cost | 48,159 |
Sublease Income | (6,538) |
Lease, Cost | $ 222,703 |
LEASES Supplemental information
LEASES Supplemental information related to operating lease transactions (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2019USD ($) | |
Supplementary information related to operating lease transactions [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due | $ 174,857 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 111,949 |
LEASES Lessee, Operating Lease,
LEASES Lessee, Operating Lease, Liability, Maturity (Details) $ in Thousands | Nov. 30, 2019USD ($) |
Supplementary information related to operating lease transactions [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 545,128 |
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year | (15,789) |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 668,309 |
Lessor, Operating Lease, Payments to be Received, Two Years | (15,975) |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 567,493 |
Lessor, Operating Lease, Payments to be Received, Three Years | (7,616) |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 463,033 |
Lessor, Operating Lease, Payments to be Received, Four Years | (7,493) |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 388,902 |
Lessor, Operating Lease, Payments to be Received, Five Years | (7,459) |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,255,478 |
Lessor, Operating Lease, Payments to be Received, Thereafter | (32,479) |
Lessee, Operating Lease, Liability, Payments, Due | 3,888,343 |
Lessor, Operating Lease, Payments to be Received | (86,811) |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (525,905) |
Operating Lease, Liability | $ 3,362,438 |
LEASES Future Minimum Lease Pay
LEASES Future Minimum Lease Payments (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Supplementary information related to operating lease transactions [Abstract] | |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 688,020 |
Operating Leases, Future Minimum Payments Receivable, Current | (24,884) |
Operating Leases, Future Minimum Payments, Due in Two Years | 597,307 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | (17,908) |
Operating Leases, Future Minimum Payments, Due in Three Years | 516,544 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | (8,535) |
Operating Leases, Future Minimum Payments, Due in Four Years | 428,481 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | (7,541) |
Operating Leases, Future Minimum Payments, Due in Five Years | 363,107 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | (7,184) |
Operating Leases, Future Minimum Payments, Due Thereafter | 1,246,097 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | (30,708) |
Operating Leases, Future Minimum Payments Due | 3,839,556 |
Operating Leases, Future Minimum Payments Receivable | $ (96,760) |
MATERIAL TRANSACTIONS AFFECTI_3
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Dividends [Line Items] | ||
Dividend Per Share | $ 0.80 | $ 1.46 |
Dividend Payment November 2019 [Domain] | ||
Dividends [Line Items] | ||
Dividend Payment Date | Nov. 15, 2019 | |
Dividend Per Share | $ 0.80 | |
Cash Outlay | $ 508,381 | |
Dividend Payment November 2019 [Domain] | Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||
Dividends [Line Items] | ||
Record Date | Oct. 15, 2019 | |
Cash Outlay | $ 656 | |
Dividend Payment November 2019 [Domain] | Class A ordinary shares | ||
Dividends [Line Items] | ||
Record Date | Oct. 17, 2019 | |
Cash Outlay | $ 507,725 |
MATERIAL TRANSACTIONS AFFECTI_4
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Subsequent Event - Additional Information (Details) - $ / shares | Feb. 14, 2020 | Jan. 16, 2020 | Dec. 16, 2019 | Nov. 30, 2019 |
Dividends Payable [Line Items] | ||||
Dividends Payable, Amount Per Share | $ 0.80 | |||
Dividend Declared [Member] | Class A Ordinary Shares | Subsequent Event [Member] | ||||
Dividends Payable [Line Items] | ||||
Cash dividend declared date | Dec. 16, 2019 | |||
Cash dividend record date | Jan. 16, 2020 | |||
Cash dividend payment date | Feb. 14, 2020 |
FINANCIAL INSTRUMENTS - Notiona
FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Detail) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Assets | ||
Fair value of derivative assets | $ 117,487 | $ 110,617 |
Liabilities | ||
Fair value of derivative liabilities | 30,634 | 59,791 |
Total fair value | 86,853 | 50,826 |
Derivative, Notional Amount | 8,953,147 | 8,709,917 |
Cash Flow Hedging [Member] | Other current assets | ||
Assets | ||
Fair value of derivative assets | 59,675 | 53,033 |
Cash Flow Hedging [Member] | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | 9,952 | 18,826 |
Cash Flow Hedging [Member] | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 50,686 | 49,525 |
Cash Flow Hedging [Member] | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 6,390 | 8,770 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 7,126 | 8,059 |
Other Derivatives | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | $ 14,292 | $ 32,195 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 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 | $ (56,619) | $ (48,983) |
FINANCIAL INSTRUMENTS Offsettin
FINANCIAL INSTRUMENTS Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Offsetting [Abstract] | ||
Net derivative assets | $ 98,125 | $ 88,811 |
Net derivative liabilities | 11,272 | 37,985 |
Total fair value | $ 86,853 | $ 50,826 |
FINANCIAL INSTRUMENTS Equity Se
FINANCIAL INSTRUMENTS Equity Securities Without Readily Determinable Fair Values (Details) - USD ($) | Nov. 30, 2019 | Aug. 31, 2019 |
Accounting Standards Update 2016-01 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Equity Securities Without Readily Determinable Fair Values | $ 149,525 | $ 131,675 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 23.60% | 19.80% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 30, 2019 | Aug. 31, 2019 |
Indemnifications and Guarantees [Abstract] | ||
Expressly limited performance guarantee | $ 730,000 | $ 794,000 |
Portion of guarantee not recoverable | $ 144,000 | $ 128,000 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2019 | Nov. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | $ 1,767,263 | $ 1,629,012 | |
Revenues | 11,358,958 | 10,605,546 | |
Consulting Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,377,251 | 5,967,372 | |
Outsourcing Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,981,707 | 4,638,174 | |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,287,812 | 4,856,302 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,789,657 | 3,713,832 | [1] |
Growth Markets [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,281,489 | 2,035,412 | [1] |
Communications, Media & Technology | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 391,157 | 387,021 | |
Revenues | 2,245,448 | 2,134,576 | |
Financial Services | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 316,232 | 360,848 | |
Revenues | 2,189,913 | 2,120,162 | |
Health & Public Service | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 251,992 | 197,435 | |
Revenues | 1,968,837 | 1,754,490 | |
Products | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 521,978 | 437,585 | |
Revenues | 3,216,705 | 2,928,510 | |
Resources | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | 285,904 | 246,123 | |
Revenues | 1,733,533 | 1,651,539 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,522 | $ 16,269 | |
[1] | Effective September 1, 2019 we revised the reporting of our geographic regions for the movement of one country from Growth Markets to Europe. Prior period amounts have been reclassified to conform with the current period presentation. |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019USD ($)segment | Nov. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Revenues | $ | $ 11,358,958 | $ 10,605,546 |
Number of operating segments | segment | 5 |
Uncategorized Items - acn113020
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,137,976,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,158,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,134,818,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,134,818,000 |