Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Nov. 30, 2020 | Dec. 07, 2020 | |
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, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Title of 12(b) Security | Class A ordinary shares, par value $0.0000225 per share | |
Trading Symbol | ACN | |
Security Exchange Name | NYSE | |
Entity Registrant Name | Accenture plc | |
Entity Central Index Key | 0001467373 | |
Entity Address, Address Line One | 1 Grand Canal Square | |
Entity Address, Address Line Two | Grand Canal Harbour | |
Entity Address, City or Town | Dublin | |
Entity Address, Postal Zip Code | 2 | |
Entity Address, Country | IE | |
Country Region | 353 | |
City Area Code | 1 | |
Local Phone Number | 646-2000 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Tax Identification Number | 98-0627530 | |
Class A ordinary shares | ||
Entity Common Stock, Shares Outstanding | 661,135,130 | |
Class X Ordinary Shares | ||
Entity Common Stock, Shares Outstanding | 526,879 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,594,003 | $ 8,415,330 |
Short-term investments | 83,148 | 94,309 |
Receivables and contract assets | 8,547,711 | 7,846,892 |
Other current assets | 1,401,232 | 1,393,225 |
Total current assets | 18,626,094 | 17,749,756 |
NON-CURRENT ASSETS: | ||
Contract assets | 44,517 | 43,257 |
Investments | 298,906 | 324,514 |
Property and equipment, net | 1,506,825 | 1,545,568 |
Lease assets | 3,100,120 | 3,183,346 |
Goodwill | 8,127,411 | 7,709,820 |
Deferred contract costs | 715,897 | 723,168 |
Deferred tax assets | 4,178,723 | 4,153,146 |
Other non-current assets | 1,669,818 | 1,646,018 |
Total non-current assets | 19,642,217 | 19,328,837 |
TOTAL ASSETS | 38,268,311 | 37,078,593 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 8,925 | 7,820 |
Accounts payable | 1,513,442 | 1,349,874 |
Deferred revenues | 3,524,781 | 3,636,741 |
Accrued payroll and related benefits | 5,179,301 | 5,083,950 |
Income taxes payable | 445,824 | 453,542 |
Lease liabilities | 732,878 | 756,057 |
Accrued consumption taxes | 706,876 | 662,409 |
Other accrued liabilities | 707,072 | 712,197 |
Total current liabilities | 12,819,099 | 12,662,590 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 59,881 | 54,052 |
Deferred revenues | 668,267 | 690,931 |
Retirement obligation | 1,875,976 | 1,859,444 |
Deferred tax liabilities | 201,376 | 179,703 |
Income taxes payable | 995,478 | 930,695 |
Lease liabilities | 2,627,185 | 2,667,584 |
Other non-current liabilities | 594,833 | 534,421 |
Total non-current liabilities | 7,022,996 | 6,916,830 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 1,721,681 | 1,585,302 |
Additional paid-in capital | 7,551,089 | 7,167,227 |
Treasury Stock, Value | (3,163,841) | (2,565,761) |
Retained earnings | 13,276,702 | 12,375,533 |
Accumulated other comprehensive loss | (1,479,202) | (1,561,837) |
Total Accenture plc shareholders’ equity | 17,906,501 | 17,000,536 |
Noncontrolling interests | 519,715 | 498,637 |
Total shareholders’ equity | 18,426,216 | 17,499,173 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 38,268,311 | 37,078,593 |
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 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Nov. 30, 2020€ / sharesshares | Nov. 30, 2020$ / sharesshares | Aug. 31, 2020€ / sharesshares | Aug. 31, 2020$ / 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 | 660,518,888 | 660,518,888 | 658,548,895 | 658,548,895 |
Treasury shares, ordinary shares | 26,898,686 | 26,898,686 | 24,383,369 | 24,383,369 |
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 | 526,879 | 526,879 | 527,509 | 527,509 |
Ordinary shares, shares outstanding | 526,879 | 526,879 | 527,509 | 527,509 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
REVENUES: | ||
Revenues | $ 11,762,185 | $ 11,358,958 |
OPERATING EXPENSES: | ||
Cost of services | 7,863,889 | 7,711,199 |
Sales and marketing | 1,227,176 | 1,191,123 |
General and administrative costs | 780,451 | 689,373 |
Total operating expenses | 9,871,516 | 9,591,695 |
OPERATING INCOME | 1,890,669 | 1,767,263 |
Interest income | 10,685 | 27,419 |
Interest expense | (8,854) | (5,474) |
Other income (expense), net | 94,367 | 11,439 |
INCOME BEFORE INCOME TAXES | 1,986,867 | 1,800,647 |
Income tax expense | 464,810 | 425,479 |
NET INCOME | 1,522,057 | 1,375,168 |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | (1,700) | (1,741) |
Net income attributable to noncontrolling interests – other | (20,081) | (16,459) |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,500,276 | $ 1,356,968 |
Weighted average Class A ordinary shares: | ||
Basic | 634,271,482 | 635,722,309 |
Diluted | 646,879,735 | 649,389,444 |
Earnings per Class A ordinary share: | ||
Basic | $ 2.37 | $ 2.13 |
Diluted | 2.32 | 2.09 |
Cash dividends per share | $ 0.88 | $ 0.80 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 1,522,057 | $ 1,375,168 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||
Foreign currency translation | 67,312 | 37,730 |
Defined benefit plans | 10,881 | 8,752 |
Cash flow hedges | 4,393 | 14,127 |
Investments | 49 | 0 |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | 82,635 | 60,609 |
Other comprehensive income (loss) attributable to noncontrolling interests | 1,461 | 1,180 |
COMPREHENSIVE INCOME | 1,606,153 | 1,436,957 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 1,582,911 | 1,417,577 |
Comprehensive income attributable to noncontrolling interests | 23,242 | 19,380 |
COMPREHENSIVE INCOME | $ 1,606,153 | $ 1,436,957 |
CONSOLIDATED SHAREHOLDERS' EQUI
CONSOLIDATED SHAREHOLDERS' EQUITY STATEMENT - USD ($) $ in Thousands | Total | Ordinary Shares | Class A ordinary shares | Class X Ordinary Shares | Common StockOrdinary Shares | Common StockClass A ordinary shares | Common StockClass X Ordinary Shares | Common StockRestricted 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, 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 | 40,000 | 654,739,000 | 609,000 | (19,005,000) | ||||||||||
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) | (3,821,000) | |||||||||||||
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) | 15,000 | |||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (4,593) | (4,593) | (4,593) | |||||||||||
Employee share programs | 300,400 | (142,925) | 323,660 | $ 135,603 | (16,263) | 300,075 | 325 | |||||||
Employee share programs (in shares) | 2,207,000 | 836,000 | ||||||||||||
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 | 40,000 | 656,946,000 | 594,000 | (21,990,000) | ||||||||||
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 | |||
Beginning Balance at Aug. 31, 2020 | 17,499,173 | $ 57 | $ 15 | $ 0 | 1,585,302 | 7,167,227 | $ (2,565,761) | 12,375,533 | (1,561,837) | 17,000,536 | 498,637 | |||
Beginning Balance (in shares) at Aug. 31, 2020 | 40,000 | 658,548,895 | 527,509 | 40,000 | 658,549,000 | 528,000 | (24,423,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,522,057 | 1,500,276 | 1,500,276 | 21,781 | ||||||||||
Other comprehensive income (loss) | 84,096 | 82,635 | 82,635 | 1,461 | ||||||||||
Purchases of Class A ordinary shares | (768,395) | 765 | $ (768,395) | (767,630) | (765) | |||||||||
Purchases of Class A ordinary shares (in shares) | (3,341,000) | |||||||||||||
Share-based compensation expense | 311,321 | 270,226 | 41,095 | 311,321 | ||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (1,000) | |||||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (500) | (500) | (500) | |||||||||||
Employee share programs | 338,891 | (153,073) | 343,783 | $ 170,315 | (22,462) | 338,563 | 328 | |||||||
Employee share programs (in shares) | 1,970,000 | 825,000 | ||||||||||||
Dividends | (558,052) | 19,226 | (576,645) | (557,419) | (633) | |||||||||
Other, net | (2,375) | (1,281) | (1,281) | (1,094) | ||||||||||
Ending Balance (in shares) at Nov. 30, 2020 | 40,000 | 660,518,888 | 526,879 | 40,000 | 660,519,000 | 527,000 | (26,939,000) | |||||||
Ending Balance at Nov. 30, 2020 | $ 18,426,216 | $ 57 | $ 15 | $ 0 | $ 1,721,681 | $ 7,551,089 | $ (3,163,841) | $ 13,276,702 | $ (1,479,202) | $ 17,906,501 | $ 519,715 |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,522,057 | $ 1,375,168 |
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | ||
Depreciation, amortization and other | 468,200 | 399,458 |
Share-based compensation expense | 311,321 | 274,929 |
Deferred tax expense (benefit) | (19,096) | 36,591 |
Other, net | (103,806) | (120,927) |
Change in assets and liabilities, net of acquisitions — | ||
Receivables and contract assets, current and non-current | (594,475) | (436,872) |
Other current and non-current assets | (18,129) | (101,096) |
Accounts payable | 148,495 | (61,929) |
Deferred revenues, current and non-current | (151,356) | (185,313) |
Accrued payroll and related benefits | 48,385 | (261,592) |
Income taxes payable, current and non-current | 34,755 | 84,840 |
Other current and non-current liabilities | (43,506) | (216,346) |
Net cash provided by (used in) operating activities | 1,602,845 | 786,911 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (93,115) | (95,063) |
Purchases of businesses and investments, net of cash acquired | (503,843) | (109,848) |
Proceeds from sales of businesses and investments | 149,002 | 39,200 |
Other investing, net | 1,549 | (182) |
Net cash provided by (used in) investing activities | (446,407) | (165,893) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares | 338,891 | 300,400 |
Purchases of shares | (768,895) | (729,211) |
Proceeds from (repayments of) long-term debt, net | (82) | (570) |
Cash dividends paid | (558,052) | (508,381) |
Other, net | (11,313) | (10,462) |
Net cash provided by (used in) financing activities | (999,451) | (948,224) |
Effect of exchange rate changes on cash and cash equivalents | 21,686 | 10,890 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 178,673 | (316,316) |
CASH AND CASH EQUIVALENTS, beginning of period | 8,415,330 | 6,126,853 |
CASH AND CASH EQUIVALENTS, end of period | 8,594,003 | 5,810,537 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid, net | $ 344,628 | $ 292,787 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Nov. 30, 2020 | |
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, 2020 included in our Annual Report on Form 10-K filed with the SEC on October 22, 2020. 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, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2021. Allowance for Credit Losses - Client Receivables and Contract Assets We record client receivables and contract assets at their face amounts less an allowance for credit losses. The allowance represents our estimate of expected credit losses based on historical experience, current economic conditions and certain forward-looking information. As of November 30, 2020 and August 31, 2020, the total allowance for credit losses recorded for client receivables and contract assets was $38,315 and $40,277, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets. Concentrations of Credit Risk Our financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments and client receivables, are exposed to concentrations of credit risk. We place our cash and cash equivalents and foreign exchange instruments with highly-rated financial institutions, limit the amount of credit exposure with any one financial institution and conduct ongoing evaluations of the credit worthiness of the financial institutions with which we do business. Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are limited. Investments All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values). Our non-current investments are as follows: November 30, 2020 August 31, 2020 Equity method investments $ 211,765 $ 240,446 Investments without readily determinable fair values 87,141 84,068 Total non-current investments $ 298,906 $ 324,514 For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of other income (expense), net. Our equity method investments consist primarily of an investment in Duck Creek Technologies. As of November 30, 2020 and August 31, 2020, the carrying amount of our investment was $201,810 and $230,219, and the estimated fair value of our approximately 19% and 22% ownership was $850,825 and $956,308, respectively. We account for the investment under the equity method because we have the ability to influence operations through the combination of our voting power and through other factors, such as representation on the board and our business relationship. Depreciation and Amortization As of November 30, 2020 and August 31, 2020, total accumulated depreciation was $2,414,951 and $2,313,731, respectively. See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2020 and 2019, respectively. Three Months Ended November 30, 2020 November 30, 2019 Depreciation $ 133,918 $ 97,090 Amortization - Deferred transition 81,356 67,914 Amortization - Intangible assets 67,207 53,372 Other - Operating lease cost 185,719 181,082 Total depreciation, amortization and other $ 468,200 $ 399,458 Recently Adopted Accounting Pronouncements Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-13 (“Topic 326”) |
REVENUES
REVENUES | 3 Months Ended |
Nov. 30, 2020 | |
Revenues [Abstract] | |
Revenues | 2. Revenues Disaggregation of Revenue See Note 11 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues. Remaining Performance Obligations We had remaining performance obligations of approximately $19 billion and $20 billion as of November 30, 2020 and August 31, 2020, 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 62% of our remaining performance obligations as of November 30, 2020 as revenue in fiscal 2021, an additional 19% in fiscal 2022, 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, 2020 and 2019, respectively. Contract Balances Deferred transition revenues were $668,267 and $690,931 as of November 30, 2020 and August 31, 2020, 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 $715,897 and $723,168 as of November 30, 2020 and August 31, 2020, respectively, and are included in Deferred contract costs. 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. The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues): As of November 30, 2020 As of August 31, 2020 Receivables $ 7,799,770 $ 7,192,110 Contract assets (current) 747,941 654,782 Receivables and contract assets, net of allowance (current) 8,547,711 7,846,892 Contract assets (non-current) 44,517 43,257 Deferred revenues (current) 3,524,781 3,636,741 Deferred revenues (non-current) 668,267 690,931 Changes in the contract asset and liability balances during the three months ended November 30, 2020, were a result of normal business activity and not materially impacted by any other factors. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 3. Earnings Per Share Basic and diluted earnings per share are calculated as follows: Three Months Ended November 30, 2020 November 30, 2019 Basic earnings per share Net income attributable to Accenture plc $ 1,500,276 $ 1,356,968 Basic weighted average Class A ordinary shares 634,271,482 635,722,309 Basic earnings per share $ 2.37 $ 2.13 Diluted earnings per share Net income attributable to Accenture plc $ 1,500,276 $ 1,356,968 Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) 1,700 1,741 Net income for diluted earnings per share calculation $ 1,501,976 $ 1,358,709 Basic weighted average Class A ordinary shares 634,271,482 635,722,309 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) 718,767 815,515 Diluted effect of employee compensation related to Class A ordinary shares 11,633,343 12,626,225 Diluted effect of share purchase plans related to Class A ordinary shares 256,143 225,395 Diluted weighted average Class A ordinary shares 646,879,735 649,389,444 Diluted earnings per share $ 2.32 $ 2.09 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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, 2020 November 30, 2019 Foreign currency translation Beginning balance $ (1,010,279) $ (1,207,975) Foreign currency translation 67,443 40,145 Income tax benefit (expense) 1,313 (1,264) Portion attributable to noncontrolling interests (1,444) (1,151) Foreign currency translation, net of tax 67,312 37,730 Ending balance (942,967) (1,170,245) Defined benefit plans Beginning balance (615,223) (672,323) Reclassifications into net periodic pension and 13,595 12,784 Income tax benefit (expense) (2,702) (4,021) Portion attributable to noncontrolling interests (12) (11) Defined benefit plans, net of tax 10,881 8,752 Ending balance (604,342) (663,571) Cash flow hedges Beginning balance 63,714 38,993 Unrealized gain (loss) 25,364 38,408 Reclassification adjustments into Cost of services (20,895) (20,019) Income tax benefit (expense) (71) (4,244) Portion attributable to noncontrolling interests (5) (18) Cash flow hedges, net of tax 4,393 14,127 Ending balance (2) 68,107 53,120 Investments Beginning balance (49) 728 Unrealized gain (loss) 49 — Income tax benefit (expense) — — Portion attributable to noncontrolling interests — — Investments, net of tax 49 — Ending balance — 728 Accumulated other comprehensive loss $ (1,479,202) $ (1,779,968) (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. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Nov. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 5. Business CombinationsDuring the three months ended November 30, 2020, we completed individually immaterial acquisitions for total consideration of $493,354, 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, 2020 | |
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 are as follows: August 31, Additions/ Foreign November 30, North America $ 4,604,441 $ 225,619 $ 647 $ 4,830,707 Europe 2,138,088 120,090 9,356 2,267,534 Growth Markets 967,291 48,909 12,970 1,029,170 Total $ 7,709,820 $ 394,618 $ 22,973 $ 8,127,411 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, 2020 November 30, 2020 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 1,319,332 $ (495,367) $ 823,965 $ 1,386,214 $ (527,370) $ 858,844 Technology 150,765 (55,543) 95,222 170,600 (56,977) 113,623 Patents 129,295 (66,954) 62,341 128,399 (65,928) 62,471 Other 82,676 (34,986) 47,690 82,622 (36,575) 46,047 Total $ 1,682,068 $ (652,850) $ 1,029,218 $ 1,767,835 $ (686,850) $ 1,080,985 Total amortization related to our intangible assets was $67,207 and $53,372 for the three months ended November 30, 2020 and 2019, respectively. Estimated future amortization related to intangible assets held as of November 30, 2020 is as follows: Fiscal Year Estimated Amortization Remainder of 2021 $ 179,796 2022 198,541 2023 178,958 2024 158,361 2025 138,373 Thereafter 226,956 Total $ 1,080,985 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 7. Shareholders’ Equity Dividends Our dividend activity during the three months ended November 30, 2020 is 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 13, 2020 $ 0.88 October 13, 2020 $ 557,419 October 9, 2020 $ 633 $ 558,052 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, 2020, the Board of Directors of Accenture plc declared a quarterly cash dividend of $0.88 per share on its Class A ordinary shares for shareholders of record at the close of business on January 14, 2021 payable on February 12, 2021. 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, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | 8. Financial Instruments Derivatives In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts. Cash Flow Hedges For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2020 and 2019, 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 gains of $28,324 and net losses $56,619 for the three months ended November 30, 2020 and 2019, 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 are as follows: November 30, 2020 August 31, 2020 Assets Cash Flow Hedges Other current assets $ 79,405 $ 75,871 Other non-current assets 50,138 50,914 Other Derivatives Other current assets 42,697 27,964 Total assets $ 172,240 $ 154,749 Liabilities Cash Flow Hedges Other accrued liabilities $ 12,883 $ 13,614 Other non-current liabilities 12,691 13,576 Other Derivatives Other accrued liabilities 5,428 11,828 Total liabilities $ 31,002 $ 39,018 Total fair value $ 141,238 $ 115,731 Total notional value $ 9,367,230 $ 9,600,691 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 is as follows: November 30, 2020 August 31, 2020 Net derivative assets $ 159,030 $ 129,520 Net derivative liabilities 17,792 13,789 Total fair value $ 141,238 $ 115,731 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. 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 | 3 Months Ended |
Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. 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, 2020 and August 31, 2020, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $848,000 and $832,000, respectively, of which all but approximately $81,000 and $87,000, 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, 2020, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. Based on the present status of these matters, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on our results of operations or financial condition. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 11. Segment Reporting Our reportable segments are our three geographic markets, which are North America, Europe and Growth Markets. Information regarding reportable segments, industry groups and type of work is as follows: Revenues Three Months Ended November 30, 2020 November 30, 2019 GEOGRAPHIC MARKETS North America $ 5,480,963 $ 5,287,812 Europe 3,967,408 3,789,657 Growth Markets 2,313,814 2,281,489 Total Revenues $ 11,762,185 $ 11,358,958 INDUSTRY GROUPS (1) Communications, Media & Technology $ 2,333,645 $ 2,245,470 Financial Services 2,346,291 2,190,107 Health & Public Service 2,211,889 1,969,214 Products 3,206,125 3,220,015 Resources 1,664,235 1,734,152 Total Revenues $ 11,762,185 $ 11,358,958 TYPE OF WORK Consulting $ 6,332,572 $ 6,377,251 Outsourcing 5,429,613 4,981,707 Total Revenues $ 11,762,185 $ 11,358,958 (1) Effective September 1, 2020, we revised the reporting of our industry groups to include amounts previously reported in Other. Prior period amounts have been reclassified to conform with the current period presentation. Operating Income Three Months Ended November 30, 2020 November 30, 2019 GEOGRAPHIC MARKETS North America $ 888,809 $ 828,407 Europe 629,430 558,951 Growth Markets 372,430 379,905 Total Operating Income $ 1,890,669 $ 1,767,263 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Nov. 30, 2020 | |
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, 2020 included in our Annual Report on Form 10-K filed with the SEC on October 22, 2020. 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, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2021. |
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 | 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, 2020 and August 31, 2020, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $848,000 and $832,000, respectively, of which all but approximately $81,000 and $87,000, 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, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Non-current investments | Our non-current investments are as follows: November 30, 2020 August 31, 2020 Equity method investments $ 211,765 $ 240,446 Investments without readily determinable fair values 87,141 84,068 Total non-current investments $ 298,906 $ 324,514 |
Depreciation, amortization and other | See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2020 and 2019, respectively. Three Months Ended November 30, 2020 November 30, 2019 Depreciation $ 133,918 $ 97,090 Amortization - Deferred transition 81,356 67,914 Amortization - Intangible assets 67,207 53,372 Other - Operating lease cost 185,719 181,082 Total depreciation, amortization and other $ 468,200 $ 399,458 |
REVENUES Contract Balances (Tab
REVENUES Contract Balances (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Revenues [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues): As of November 30, 2020 As of August 31, 2020 Receivables $ 7,799,770 $ 7,192,110 Contract assets (current) 747,941 654,782 Receivables and contract assets, net of allowance (current) 8,547,711 7,846,892 Contract assets (non-current) 44,517 43,257 Deferred revenues (current) 3,524,781 3,636,741 Deferred revenues (non-current) 668,267 690,931 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows: Three Months Ended November 30, 2020 November 30, 2019 Basic earnings per share Net income attributable to Accenture plc $ 1,500,276 $ 1,356,968 Basic weighted average Class A ordinary shares 634,271,482 635,722,309 Basic earnings per share $ 2.37 $ 2.13 Diluted earnings per share Net income attributable to Accenture plc $ 1,500,276 $ 1,356,968 Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) 1,700 1,741 Net income for diluted earnings per share calculation $ 1,501,976 $ 1,358,709 Basic weighted average Class A ordinary shares 634,271,482 635,722,309 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) 718,767 815,515 Diluted effect of employee compensation related to Class A ordinary shares 11,633,343 12,626,225 Diluted effect of share purchase plans related to Class A ordinary shares 256,143 225,395 Diluted weighted average Class A ordinary shares 646,879,735 649,389,444 Diluted earnings per share $ 2.32 $ 2.09 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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, 2020 November 30, 2019 Foreign currency translation Beginning balance $ (1,010,279) $ (1,207,975) Foreign currency translation 67,443 40,145 Income tax benefit (expense) 1,313 (1,264) Portion attributable to noncontrolling interests (1,444) (1,151) Foreign currency translation, net of tax 67,312 37,730 Ending balance (942,967) (1,170,245) Defined benefit plans Beginning balance (615,223) (672,323) Reclassifications into net periodic pension and 13,595 12,784 Income tax benefit (expense) (2,702) (4,021) Portion attributable to noncontrolling interests (12) (11) Defined benefit plans, net of tax 10,881 8,752 Ending balance (604,342) (663,571) Cash flow hedges Beginning balance 63,714 38,993 Unrealized gain (loss) 25,364 38,408 Reclassification adjustments into Cost of services (20,895) (20,019) Income tax benefit (expense) (71) (4,244) Portion attributable to noncontrolling interests (5) (18) Cash flow hedges, net of tax 4,393 14,127 Ending balance (2) 68,107 53,120 Investments Beginning balance (49) 728 Unrealized gain (loss) 49 — Income tax benefit (expense) — — Portion attributable to noncontrolling interests — — Investments, net of tax 49 — Ending balance — 728 Accumulated other comprehensive loss $ (1,479,202) $ (1,779,968) (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. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by reportable operating segment are as follows: August 31, Additions/ Foreign November 30, North America $ 4,604,441 $ 225,619 $ 647 $ 4,830,707 Europe 2,138,088 120,090 9,356 2,267,534 Growth Markets 967,291 48,909 12,970 1,029,170 Total $ 7,709,820 $ 394,618 $ 22,973 $ 8,127,411 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our definite-lived intangible assets by major asset class are as follows: August 31, 2020 November 30, 2020 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 1,319,332 $ (495,367) $ 823,965 $ 1,386,214 $ (527,370) $ 858,844 Technology 150,765 (55,543) 95,222 170,600 (56,977) 113,623 Patents 129,295 (66,954) 62,341 128,399 (65,928) 62,471 Other 82,676 (34,986) 47,690 82,622 (36,575) 46,047 Total $ 1,682,068 $ (652,850) $ 1,029,218 $ 1,767,835 $ (686,850) $ 1,080,985 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future amortization related to intangible assets held as of November 30, 2020 is as follows: Fiscal Year Estimated Amortization Remainder of 2021 $ 179,796 2022 198,541 2023 178,958 2024 158,361 2025 138,373 Thereafter 226,956 Total $ 1,080,985 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Schedule of Dividend Activity | Our dividend activity during the three months ended November 30, 2020 is 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 13, 2020 $ 0.88 October 13, 2020 $ 557,419 October 9, 2020 $ 633 $ 558,052 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Values of All Derivative Instruments | The notional and fair values of all derivative instruments are as follows: November 30, 2020 August 31, 2020 Assets Cash Flow Hedges Other current assets $ 79,405 $ 75,871 Other non-current assets 50,138 50,914 Other Derivatives Other current assets 42,697 27,964 Total assets $ 172,240 $ 154,749 Liabilities Cash Flow Hedges Other accrued liabilities $ 12,883 $ 13,614 Other non-current liabilities 12,691 13,576 Other Derivatives Other accrued liabilities 5,428 11,828 Total liabilities $ 31,002 $ 39,018 Total fair value $ 141,238 $ 115,731 Total notional value $ 9,367,230 $ 9,600,691 |
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 is as follows: November 30, 2020 August 31, 2020 Net derivative assets $ 159,030 $ 129,520 Net derivative liabilities 17,792 13,789 Total fair value $ 141,238 $ 115,731 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Operating Income Three Months Ended November 30, 2020 November 30, 2019 GEOGRAPHIC MARKETS North America $ 888,809 $ 828,407 Europe 629,430 558,951 Growth Markets 372,430 379,905 Total Operating Income $ 1,890,669 $ 1,767,263 |
Schedule of segment reporting revenues | Our reportable segments are our three geographic markets, which are North America, Europe and Growth Markets. Information regarding reportable segments, industry groups and type of work is as follows: Revenues Three Months Ended November 30, 2020 November 30, 2019 GEOGRAPHIC MARKETS North America $ 5,480,963 $ 5,287,812 Europe 3,967,408 3,789,657 Growth Markets 2,313,814 2,281,489 Total Revenues $ 11,762,185 $ 11,358,958 INDUSTRY GROUPS (1) Communications, Media & Technology $ 2,333,645 $ 2,245,470 Financial Services 2,346,291 2,190,107 Health & Public Service 2,211,889 1,969,214 Products 3,206,125 3,220,015 Resources 1,664,235 1,734,152 Total Revenues $ 11,762,185 $ 11,358,958 TYPE OF WORK Consulting $ 6,332,572 $ 6,377,251 Outsourcing 5,429,613 4,981,707 Total Revenues $ 11,762,185 $ 11,358,958 (1) Effective September 1, 2020, we revised the reporting of our industry groups to include amounts previously reported in Other. Prior period amounts have been reclassified to conform with the current period presentation. |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 38,315 | $ 40,277 | |
Depreciation | 133,918 | $ 97,090 | |
Accumulated depreciation | 2,414,951 | 2,313,731 | |
DeferredTransitionAmortizationExpense | 81,356 | $ 67,914 | |
Retained earnings | 13,276,702 | 12,375,533 | |
Contract assets, (current) | $ 747,941 | $ 654,782 |
BASIS OF PRESENTATION - Depreci
BASIS OF PRESENTATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation | $ 133,918 | $ 97,090 | |
Amortization of Intangible Assets | 67,207 | 53,372 | |
Operating Lease, Cost | 185,719 | 181,082 | |
Depreciation, Amortization and Other | 468,200 | 399,458 | |
Accumulated depreciation | 2,414,951 | $ 2,313,731 | |
DeferredTransitionAmortizationExpense | $ 81,356 | $ 67,914 |
BASIS OF PRESENTATION- Debt and
BASIS OF PRESENTATION- Debt and Equity Securities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Equity Method Investments | $ 211,765 | $ 240,446 |
Equity Securities Without Readily Determinable Fair Values | 87,141 | 84,068 |
Investments | $ 298,906 | $ 324,514 |
Equity Method Investment, Ownership Percentage | 19.00% | 22.00% |
Equity Method Investments, Fair Value Disclosure | $ 850,825 | $ 956,308 |
acn_DuckCreekEquityMethodInvestment [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Equity Method Investments | $ 201,810 | $ 230,219 |
REVENUES Performance Obligation
REVENUES Performance Obligations (Details) - USD ($) $ in Billions | Aug. 31, 2022 | Aug. 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
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% | 62.00% |
REVENUES Contract Balances (Det
REVENUES Contract Balances (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Revenues [Abstract] | |||
Deferred transition revenues | $ 668,267,000 | $ 690,931,000 | |
Deferred Costs, Noncurrent | 715,897,000 | 723,168,000 | |
Receivables, net of allowance | 7,799,770,000 | 7,192,110,000 | |
Contract assets, (current) | 747,941,000 | 654,782,000 | |
Receivables and contract assets | 8,547,711,000 | 7,846,892,000 | |
Contract assets (non-current) | 44,517,000 | 43,257,000 | |
Deferred revenues (current) | 3,524,781,000 | 3,636,741,000 | |
Deferred revenues (non-current) | 668,267,000 | $ 690,931,000 | |
Contract with Customer, Liability, Revenue Recognized | $ 2,000,000,000 | $ 1,800,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Basic earnings per share | ||
Net income attributable to Accenture plc | $ 1,500,276 | $ 1,356,968 |
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 |
Basic earnings per share | $ 2.37 | $ 2.13 |
Diluted earnings per share | ||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,500,276 | $ 1,356,968 |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (1) | 1,700 | 1,741 |
Net income for diluted earnings per share calculation | $ 1,501,976 | $ 1,358,709 |
Basic weighted average Class A ordinary shares | 634,271,482 | 635,722,309 |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interest (1) | 718,767 | 815,515 |
Diluted effect of employee compensation related to Class A ordinary shares | 11,633,343 | 12,626,225 |
Diluted effect of share purchase plans related to Class A ordinary shares | 256,143 | 225,395 |
Diluted weighted average Class A ordinary shares | 646,879,735 | 649,389,444 |
Diluted earnings per share | $ 2.32 | $ 2.09 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | ||
Foreign currency translation | ||||
Beginning balance | $ (1,010,279) | $ (1,207,975) | ||
Foreign currency translation | 67,443 | 40,145 | ||
Income tax benefit (expense) | 1,313 | (1,264) | ||
Portion attributable to noncontrolling interests | (1,444) | (1,151) | ||
Foreign currency translation, net of tax | 67,312 | 37,730 | ||
Ending balance | (942,967) | (1,170,245) | ||
Defined benefit plans | ||||
Beginning balance | (615,223) | (672,323) | ||
Reclassifications into net periodic pension and post-retirement expense (1) | [1] | 13,595 | 12,784 | |
Income tax benefit (expense) | (2,702) | (4,021) | ||
Portion attributable to noncontrolling interests | (12) | (11) | ||
Defined benefit plans, net of tax | 10,881 | 8,752 | ||
Ending balance | (604,342) | (663,571) | ||
Cash flow hedges | ||||
Beginning balance | 63,714 | 38,993 | ||
Unrealized gain (loss) | 25,364 | 38,408 | ||
Reclassification adjustments into Cost of services | (20,895) | (20,019) | ||
Income tax benefit (expense) | (71) | (4,244) | ||
Portion attributable to noncontrolling interests | (5) | (18) | ||
Cash flow hedges, net of tax | 4,393 | 14,127 | ||
Ending balance (2) | [2] | 68,107 | 53,120 | |
Investments | ||||
Beginning balance | (49) | 728 | ||
Unrealized gain (loss) | (49) | 0 | ||
Income tax benefit (expense) | 0 | 0 | ||
Portion attributable to noncontrolling interests | 0 | 0 | ||
Investments, net of tax | (49) | 0 | ||
Ending balance | 0 | 728 | ||
Accumulated other comprehensive loss | $ (1,479,202) | $ (1,779,968) | $ (1,561,837) | |
[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, 2020, $66,522 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, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 66,522 |
BUSINESS COMBINATIONS- Addition
BUSINESS COMBINATIONS- Additional Information (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisitions [Line Items] | |
Cash Consideration | $ 493,354 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 7,709,820 |
Goodwill, Acquired During Period | 394,618 |
Goodwill, Translation Adjustments | 22,973 |
Goodwill | 8,127,411 |
North America [Member] | |
Goodwill [Line Items] | |
Goodwill | 4,604,441 |
Goodwill, Acquired During Period | 225,619 |
Goodwill, Translation Adjustments | 647 |
Goodwill | 4,830,707 |
Europe [Member] | |
Goodwill [Line Items] | |
Goodwill | 2,138,088 |
Goodwill, Acquired During Period | 120,090 |
Goodwill, Translation Adjustments | 9,356 |
Goodwill | 2,267,534 |
Growth Markets [Member] | |
Goodwill [Line Items] | |
Goodwill | 967,291 |
Goodwill, Acquired During Period | 48,909 |
Goodwill, Translation Adjustments | 12,970 |
Goodwill | $ 1,029,170 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,767,835 | $ 1,682,068 |
Accumulated Amortization | (686,850) | (652,850) |
Net Carrying Amount | 1,080,985 | 1,029,218 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,386,214 | 1,319,332 |
Accumulated Amortization | (527,370) | (495,367) |
Net Carrying Amount | 858,844 | 823,965 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170,600 | 150,765 |
Accumulated Amortization | (56,977) | (55,543) |
Net Carrying Amount | 113,623 | 95,222 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 128,399 | 129,295 |
Accumulated Amortization | (65,928) | (66,954) |
Net Carrying Amount | 62,471 | 62,341 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 82,622 | 82,676 |
Accumulated Amortization | (36,575) | (34,986) |
Net Carrying Amount | $ 46,047 | $ 47,690 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 67,207 | $ 53,372 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 179,796 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 198,541 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 178,958 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 158,361 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 138,373 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Four | 226,956 | ||
Net Carrying Amount | $ 1,080,985 | $ 1,029,218 |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Dividends [Line Items] | ||
Dividend Per Share | $ 0.88 | $ 0.80 |
Dividend Payment November 2020 | ||
Dividends [Line Items] | ||
Dividend Payment Date | Nov. 13, 2020 | |
Dividend Per Share | $ 0.88 | |
Cash Outlay | $ 558,052 | |
Dividend Payment November 2020 | Accenture Canada Holdings Inc Exchangeable Shares [Member] | ||
Dividends [Line Items] | ||
Record Date | Oct. 9, 2020 | |
Cash Outlay | $ 633 | |
Dividend Payment November 2020 | Class A ordinary shares | ||
Dividends [Line Items] | ||
Record Date | Oct. 13, 2020 | |
Cash Outlay | $ 557,419 |
SHAREHOLDERS' EQUITY - Subseque
SHAREHOLDERS' EQUITY - Subsequent Event - Additional Information (Details) - $ / shares | Feb. 12, 2021 | Jan. 14, 2021 | Dec. 16, 2020 | Nov. 30, 2020 |
Dividends Payable [Line Items] | ||||
Dividends Payable, Amount Per Share | $ 0.88 | |||
Dividend Declared [Member] | Class A Ordinary Shares | Subsequent Event [Member] | ||||
Dividends Payable [Line Items] | ||||
Cash dividend declared date | Dec. 16, 2020 | |||
Cash dividend record date | Jan. 14, 2021 | |||
Cash dividend payment date | Feb. 12, 2021 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Realized gains or (losses) and changes in the estimated fair value of derivatives not designated as hedges | $ 28,324 | $ (56,619) |
FINANCIAL INSTRUMENTS - Notiona
FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Assets | ||
Fair value of derivative assets | $ 172,240 | $ 154,749 |
Liabilities | ||
Fair value of derivative liabilities | 31,002 | 39,018 |
Total fair value | 141,238 | 115,731 |
Derivative, Notional Amount | 9,367,230 | 9,600,691 |
Cash Flow Hedging [Member] | Other current assets | ||
Assets | ||
Fair value of derivative assets | 79,405 | 75,871 |
Cash Flow Hedging [Member] | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 50,138 | 50,914 |
Cash Flow Hedging [Member] | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | 12,883 | 13,614 |
Cash Flow Hedging [Member] | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 12,691 | 13,576 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 42,697 | 27,964 |
Other Derivatives | Other Current Liabilities [Member] | ||
Liabilities | ||
Fair value of derivative liabilities | $ 5,428 | $ 11,828 |
FINANCIAL INSTRUMENTS Offsettin
FINANCIAL INSTRUMENTS Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Offsetting [Abstract] | ||
Net derivative assets | $ 159,030 | $ 129,520 |
Net derivative liabilities | 17,792 | 13,789 |
Total fair value | $ 141,238 | $ 115,731 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 23.40% | 23.60% |
Gain on equity method investment | $ 119,700 | $ 60,492 |
Gain on equity method investment, tax impact | $ 22,906 | $ 10,183 |
Effective tax rate excluding equity method investment gain | 23.70% | 23.90% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Aug. 31, 2020 |
Indemnifications and Guarantees [Abstract] | ||
Expressly limited performance guarantee | $ 848,000 | $ 832,000 |
Portion of guarantee not recoverable | $ 81,000 | $ 87,000 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 11,762,185 | $ 11,358,958 |
Operating income | 1,890,669 | 1,767,263 |
Consulting Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,332,572 | 6,377,251 |
Outsourcing Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,429,613 | 4,981,707 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,480,963 | 5,287,812 |
Operating income | 888,809 | 828,407 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,967,408 | 3,789,657 |
Operating income | 629,430 | 558,951 |
Growth Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,313,814 | 2,281,489 |
Operating income | 372,430 | 379,905 |
Communications, Media & Technology | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,333,645 | 2,245,470 |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,346,291 | 2,190,107 |
Health & Public Service | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,211,889 | 1,969,214 |
Products | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,206,125 | 3,220,015 |
Resources | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,664,235 | $ 1,734,152 |