Cover Page
Cover Page - shares | 9 Months Ended | |
May 31, 2022 | Jun. 09, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34448 | |
Entity Registrant Name | Accenture plc | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-0627530 | |
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 | |
Title of 12(b) Security | Class A ordinary shares, par value $0.0000225 per share | |
Trading Symbol | ACN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001467373 | |
Current Fiscal Year End Date | --08-31 | |
Class A Ordinary Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 664,188,290 | |
Class X Ordinary Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 503,837 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,703,568 | $ 8,168,174 |
Short-term investments | 4,322 | 4,294 |
Receivables and contract assets | 12,219,074 | 9,728,212 |
Other current assets | 2,080,776 | 1,765,831 |
Total current assets | 21,007,740 | 19,666,511 |
NON-CURRENT ASSETS: | ||
Contract assets | 35,714 | 38,334 |
Investments | 331,503 | 329,526 |
Property and equipment, net | 1,665,478 | 1,639,105 |
Lease assets | 3,178,636 | 3,182,519 |
Goodwill | 12,499,443 | 11,125,861 |
Deferred contract costs | 826,042 | 731,445 |
Deferred tax assets | 4,013,089 | 4,007,130 |
Other non-current assets | 2,537,553 | 2,455,412 |
Total non-current assets | 25,087,458 | 23,509,332 |
TOTAL ASSETS | 46,095,198 | 43,175,843 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt and bank borrowings | 8,768 | 12,080 |
Accounts payable | 2,384,352 | 2,274,057 |
Deferred revenues | 4,561,147 | 4,229,177 |
Accrued payroll and related benefits | 7,047,124 | 6,747,853 |
Income taxes payable | 615,959 | 423,400 |
Lease liabilities | 733,805 | 744,164 |
Accrued consumption taxes | 640,252 | 609,553 |
Other accrued liabilities | 571,185 | 668,583 |
Total current liabilities | 16,562,592 | 15,708,867 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 51,546 | 53,473 |
Deferred revenues | 733,982 | 700,080 |
Retirement obligation | 2,026,018 | 2,016,021 |
Deferred tax liabilities | 364,951 | 243,636 |
Income taxes payable | 1,197,105 | 1,105,896 |
Lease liabilities | 2,694,489 | 2,696,917 |
Other non-current liabilities | 452,792 | 553,839 |
Total non-current liabilities | 7,520,883 | 7,369,862 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Restricted share units | 1,753,930 | 1,750,784 |
Additional paid-in capital | 10,534,282 | 8,617,838 |
Treasury shares, at cost: Ordinary, 40,000 shares as of May 31, 2022 and August 31, 2021; Class A ordinary, 31,527,538 and 24,504,666 shares as of May 31, 2022 and August 31, 2021, respectively | (6,122,402) | (3,408,491) |
Retained earnings | 17,177,358 | 13,988,748 |
Accumulated other comprehensive loss | (1,954,146) | (1,419,497) |
Total Accenture plc shareholders’ equity | 21,389,094 | 19,529,454 |
Noncontrolling interests | 622,629 | 567,660 |
Total shareholders’ equity | 22,011,723 | 20,097,114 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 46,095,198 | 43,175,843 |
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) | May 31, 2022 € / shares shares | May 31, 2022 $ / shares shares | Aug. 31, 2021 € / shares shares | Aug. 31, 2021 $ / shares shares |
Ordinary Shares | ||||
Ordinary shares, par value (USD per share) | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized (in shares) | 40,000 | 40,000 | 40,000 | 40,000 |
Ordinary shares, shares issued (in shares) | 40,000 | 40,000 | 40,000 | 40,000 |
Treasury shares, ordinary shares (in shares) | 40,000 | 40,000 | 40,000 | 40,000 |
Class A Ordinary Shares | ||||
Ordinary shares, par value (USD per share) | $ / shares | $ 0.0000225 | $ 0.0000225 | ||
Ordinary shares, shares authorized (in shares) | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 |
Ordinary shares, shares issued (in shares) | 663,985,273 | 663,985,273 | 656,590,625 | 656,590,625 |
Treasury shares, ordinary shares (in shares) | 31,527,538 | 31,527,538 | 24,504,666 | 24,504,666 |
Class X Ordinary Shares | ||||
Ordinary shares, par value (USD per share) | $ / shares | $ 0.0000225 | $ 0.0000225 | ||
Ordinary shares, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued (in shares) | 503,837 | 503,837 | 512,655 | 512,655 |
Ordinary shares, shares outstanding (in shares) | 503,837 | 503,837 | 512,655 | 512,655 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
REVENUES: | ||||
Revenues | $ 16,158,803 | $ 13,263,795 | $ 46,170,649 | $ 37,114,105 |
OPERATING EXPENSES: | ||||
Cost of services | 10,844,069 | 8,859,411 | 31,415,167 | 25,216,193 |
Sales and marketing | 1,660,919 | 1,406,606 | 4,530,158 | 3,773,268 |
General and administrative costs | 1,050,697 | 879,122 | 3,126,332 | 2,461,804 |
Total operating expenses | 13,555,685 | 11,145,139 | 39,071,657 | 31,451,265 |
OPERATING INCOME | 2,603,118 | 2,118,656 | 7,098,992 | 5,662,840 |
Interest income | 8,727 | 4,551 | 22,046 | 23,643 |
Interest expense | (12,050) | (28,739) | (34,449) | (46,515) |
Other income (expense), net | (8,877) | (467) | (39,089) | 203,343 |
Loss on disposition of Russia business | (96,294) | 0 | (96,294) | 0 |
INCOME BEFORE INCOME TAXES | 2,494,624 | 2,094,001 | 6,951,206 | 5,843,311 |
Income tax expense | 675,308 | 524,429 | 1,654,631 | 1,290,189 |
NET INCOME | 1,819,316 | 1,569,572 | 5,296,575 | 4,553,122 |
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. | (1,902) | (1,699) | (5,578) | (5,001) |
Net income attributable to noncontrolling interests – other | (31,339) | (18,447) | (78,956) | (57,560) |
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ 1,786,075 | $ 1,549,426 | $ 5,212,041 | $ 4,490,561 |
Weighted average Class A ordinary shares: | ||||
Basic (in shares) | 632,749,442 | 635,203,753 | 632,969,487 | 635,151,632 |
Diluted (in shares) | 641,004,741 | 645,454,021 | 643,692,440 | 646,244,001 |
Earnings per Class A ordinary share: | ||||
Basic (in USD per share) | $ 2.82 | $ 2.44 | $ 8.23 | $ 7.07 |
Diluted (in USD per share) | 2.79 | 2.40 | 8.11 | 6.96 |
Cash dividends per share (in USD per share) | $ 0.97 | $ 0.88 | $ 2.91 | $ 2.64 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 1,819,316 | $ 1,569,572 | $ 5,296,575 | $ 4,553,122 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Foreign currency translation | (231,311) | 68,079 | (442,664) | 234,390 |
Defined benefit plans | 10,292 | 11,048 | 6,865 | 32,184 |
Cash flow hedges | (57,642) | 70,554 | (98,850) | 34,457 |
Investments | 0 | 0 | 0 | 49 |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC | (278,661) | 149,681 | (534,649) | 301,080 |
Other comprehensive income (loss) attributable to noncontrolling interests | (4,456) | 3,993 | (10,032) | 5,965 |
COMPREHENSIVE INCOME | 1,536,199 | 1,723,246 | 4,751,894 | 4,860,167 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC | 1,507,414 | 1,699,107 | 4,677,392 | 4,791,641 |
Comprehensive income attributable to noncontrolling interests | 28,785 | 24,139 | 74,502 | 68,526 |
Other comprehensive income (loss) | $ (283,117) | $ 153,674 | $ (544,681) | $ 307,045 |
CONSOLIDATED SHAREHOLDERS' EQUI
CONSOLIDATED SHAREHOLDERS' EQUITY STATEMENT - USD ($) $ in Thousands | Total | Class X Ordinary Shares | Common Stock Ordinary Shares | Common Stock Class A Ordinary Shares | Common Stock Class X Ordinary Shares | Common Stock 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, 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 | 658,549,000 | 528,000 | (24,423,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 4,553,122 | 4,490,561 | 4,490,561 | 62,561 | ||||||||
Other comprehensive income (loss) | 307,045 | 301,080 | 301,080 | 5,965 | ||||||||
Purchases of Class A shares | (2,780,928) | 2,732 | $ (2,780,928) | (2,778,196) | (2,732) | |||||||
Purchases of Class A shares (in shares) | (10,970,000) | |||||||||||
Share-based compensation expense | 1,067,251 | 977,979 | 89,272 | 1,067,251 | ||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (12,000) | |||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (7,548) | (7,548) | (7,548) | |||||||||
Issuances of Class A shares for employee share programs (in shares) | 7,845,000 | 3,394,000 | ||||||||||
Issuances of Class A shares for employee share programs | 939,564 | (1,145,096) | 1,497,827 | $ 707,266 | (121,342) | 938,655 | 909 | |||||
Dividends | (1,678,164) | 64,172 | (1,740,471) | (1,676,299) | (1,865) | |||||||
Other, net | (5,551) | 6,805 | 6,805 | (12,356) | ||||||||
Ending Balance at May. 31, 2021 | 19,893,964 | $ 57 | $ 15 | $ 0 | 1,482,357 | 8,756,315 | $ (4,639,423) | 15,004,281 | (1,260,757) | 19,342,845 | 551,119 | |
Ending Balance (in shares) at May. 31, 2021 | 40,000 | 666,394,000 | 516,000 | (31,999,000) | ||||||||
Beginning Balance at Feb. 28, 2021 | 18,842,427 | $ 57 | $ 15 | $ 0 | 1,207,161 | 8,389,344 | $ (3,913,917) | 14,035,805 | (1,410,438) | 18,308,027 | 534,400 | |
Beginning Balance (in shares) at Feb. 28, 2021 | 40,000 | 665,115,000 | 521,000 | (29,508,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,569,572 | 1,549,426 | 1,549,426 | 20,146 | ||||||||
Other comprehensive income (loss) | 153,674 | 149,681 | 149,681 | 3,993 | ||||||||
Purchases of Class A shares | (832,456) | 811 | $ (832,456) | (831,645) | (811) | |||||||
Purchases of Class A shares (in shares) | (3,006,000) | |||||||||||
Share-based compensation expense | 331,038 | 282,861 | 48,177 | 331,038 | ||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (5,000) | |||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (2,539) | (2,539) | (2,539) | |||||||||
Issuances of Class A shares for employee share programs (in shares) | 1,279,000 | 515,000 | ||||||||||
Issuances of Class A shares for employee share programs | 392,478 | (30,160) | 315,312 | $ 106,950 | 392,102 | 376 | ||||||
Dividends | (559,070) | 22,495 | (580,950) | (558,455) | (615) | |||||||
Other, net | (1,160) | 5,210 | 5,210 | (6,370) | ||||||||
Ending Balance at May. 31, 2021 | 19,893,964 | $ 57 | $ 15 | $ 0 | 1,482,357 | 8,756,315 | $ (4,639,423) | 15,004,281 | (1,260,757) | 19,342,845 | 551,119 | |
Ending Balance (in shares) at May. 31, 2021 | 40,000 | 666,394,000 | 516,000 | (31,999,000) | ||||||||
Beginning Balance at Aug. 31, 2021 | 20,097,114 | $ 57 | $ 15 | $ 0 | 1,750,784 | 8,617,838 | $ (3,408,491) | 13,988,748 | (1,419,497) | 19,529,454 | 567,660 | |
Beginning Balance (in shares) at Aug. 31, 2021 | 512,655 | 40,000 | 656,591,000 | 513,000 | (24,545,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 5,296,575 | 5,212,041 | 5,212,041 | 84,534 | ||||||||
Other comprehensive income (loss) | (544,681) | (534,649) | (534,649) | (10,032) | ||||||||
Purchases of Class A shares | (3,506,617) | 3,388 | $ (3,506,617) | (3,503,229) | (3,388) | |||||||
Purchases of Class A shares (in shares) | (10,119,000) | |||||||||||
Share-based compensation expense | 1,319,555 | 1,210,825 | 108,730 | 1,319,555 | ||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares (in shares) | (9,000) | |||||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | (4,274) | (4,274) | (4,274) | |||||||||
Issuances of Class A shares for employee share programs (in shares) | 7,394,000 | 3,096,000 | ||||||||||
Issuances of Class A shares for employee share programs | 1,199,851 | (1,285,617) | 1,795,507 | $ 792,706 | (103,889) | 1,198,707 | 1,144 | |||||
Dividends | (1,843,576) | 77,938 | (1,919,542) | (1,841,604) | (1,972) | |||||||
Other, net | (2,224) | 13,093 | 13,093 | (15,317) | ||||||||
Ending Balance at May. 31, 2022 | 22,011,723 | $ 57 | $ 15 | $ 0 | 1,753,930 | 10,534,282 | $ (6,122,402) | 17,177,358 | (1,954,146) | 21,389,094 | 622,629 | |
Ending Balance (in shares) at May. 31, 2022 | 503,837 | 40,000 | 663,985,000 | 504,000 | (31,568,000) | |||||||
Beginning Balance at Feb. 28, 2022 | 21,156,979 | $ 57 | $ 15 | $ 0 | 1,438,596 | 10,065,790 | $ (5,297,349) | 16,028,399 | (1,675,485) | 20,560,023 | 596,956 | |
Beginning Balance (in shares) at Feb. 28, 2022 | 40,000 | 662,417,000 | 504,000 | (29,035,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 1,819,316 | 1,786,075 | 1,786,075 | 33,241 | ||||||||
Other comprehensive income (loss) | (283,117) | (278,661) | (278,661) | (4,456) | ||||||||
Purchases of Class A shares | (972,171) | 925 | $ (972,171) | (971,246) | (925) | |||||||
Purchases of Class A shares (in shares) | (3,102,000) | |||||||||||
Share-based compensation expense | 407,257 | 346,666 | 60,591 | 407,257 | ||||||||
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares | 0 | 0 | ||||||||||
Issuances of Class A shares for employee share programs (in shares) | 1,568,000 | 569,000 | ||||||||||
Issuances of Class A shares for employee share programs | 497,974 | (55,313) | 405,704 | $ 147,118 | 497,509 | 465 | ||||||
Dividends | (613,785) | 23,981 | (637,116) | (613,135) | (650) | |||||||
Other, net | (730) | 1,272 | 1,272 | (2,002) | ||||||||
Ending Balance at May. 31, 2022 | $ 22,011,723 | $ 57 | $ 15 | $ 0 | $ 1,753,930 | $ 10,534,282 | $ (6,122,402) | $ 17,177,358 | $ (1,954,146) | $ 21,389,094 | $ 622,629 | |
Ending Balance (in shares) at May. 31, 2022 | 503,837 | 40,000 | 663,985,000 | 504,000 | (31,568,000) |
CONSOLIDATED CASH FLOWS STATEME
CONSOLIDATED CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2022 | May 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,296,575 | $ 4,553,122 |
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities — | ||
Depreciation, amortization and other | 1,553,311 | 1,404,961 |
Share-based compensation expense | 1,319,555 | 1,067,251 |
Deferred tax expense (benefit) | (27,784) | (59,713) |
Other, net | (99,979) | (291,096) |
Change in assets and liabilities, net of acquisitions — | ||
Receivables and contract assets, current and non-current | (2,594,564) | (1,311,984) |
Other current and non-current assets | (713,632) | (369,888) |
Accounts payable | 142,286 | 522,087 |
Deferred revenues, current and non-current | 585,497 | 477,116 |
Accrued payroll and related benefits | 489,743 | 915,407 |
Income taxes payable, current and non-current | 360,262 | 192,362 |
Other current and non-current liabilities | (560,251) | (560,909) |
Net cash provided by (used in) operating activities | 5,751,019 | 6,538,716 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (540,947) | (343,837) |
Purchases of businesses and investments, net of cash acquired | (2,212,388) | (1,544,412) |
Proceeds from the sale of businesses and investments, net of cash transferred | (108,099) | 409,828 |
Other investing, net | 9,397 | 19,971 |
Net cash provided by (used in) investing activities | (2,852,037) | (1,458,450) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of shares | 1,199,851 | 939,564 |
Purchases of shares | (3,510,891) | (2,788,476) |
Proceeds from (repayments of) long-term debt, net | (11,530) | (1,286) |
Cash dividends paid | (1,843,576) | (1,678,164) |
Other financing, net | (43,468) | (30,190) |
Net cash provided by (used in) financing activities | (4,209,614) | (3,558,552) |
Effect of exchange rate changes on cash and cash equivalents | (153,974) | 72,336 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,464,606) | 1,594,050 |
CASH AND CASH EQUIVALENTS, beginning of period | 8,168,174 | 8,415,330 |
CASH AND CASH EQUIVALENTS, end of period | 6,703,568 | 10,009,380 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid, net | $ 1,264,631 | $ 1,090,696 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
May 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 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, 2021 included in our Annual Report on Form 10-K filed with the SEC on October 15, 2021. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and nine months ended May 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2022. Allowance for Credit Losses - Client Receivables and Contract Assets As of May 31, 2022 and August 31, 2021, the total allowance for credit losses recorded for client receivables and contract assets was $25,895 and $32,206, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets. 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: May 31, 2022 August 31, 2021 Equity method investments $ 172,512 $ 184,157 Investments without readily determinable fair values 158,991 145,369 Total non-current investments $ 331,503 $ 329,526 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 May 31, 2022, the carrying amount of our investment was $148,140, and the estimated fair value of our approximately 16% ownership was $340,426. 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 May 31, 2022 and August 31, 2021, total accumulated depreciation was $2,625,468 and $2,412,449, respectively. See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and nine months ended May 31, 2022, respectively. Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 (1) May 31, 2022 May 31, 2021 (1) Depreciation $ 150,272 $ 124,502 $ 438,937 $ 377,910 Amortization - Deferred transition 68,420 65,417 203,957 228,390 Amortization - Intangible assets 109,855 93,980 328,228 234,933 Operating lease cost 193,209 193,763 576,320 559,712 Other 2,430 1,324 5,869 4,016 Total depreciation, amortization and other $ 524,186 $ 478,986 $ 1,553,311 $ 1,404,961 (1) Prior period amounts have been reclassified to conform with the current period presentation. Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2021-08 ("Topic 805") On September 1, 2021, we early adopted FASB ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606) rather than adjust them to fair value at the acquisition date. The adoption did not have a material impact on our Consolidated Financial Statements. |
REVENUES
REVENUES | 9 Months Ended |
May 31, 2022 | |
Revenues [Abstract] | |
Revenues | 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 $24 billion and $23 billion as of May 31, 2022 and August 31, 2021, 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 40% of our remaining performance obligations as of May 31, 2022 as revenue in fiscal 2022, an additional 36% in fiscal 2023, and the balance thereafter. Contract Estimates Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and nine months ended May 31, 2022 and 2021, respectively. Contract Balances Deferred transition revenues were $733,982 and $700,080 as of May 31, 2022 and August 31, 2021, 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 $826,042 and $731,445 as of May 31, 2022 and August 31, 2021, 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 May 31, 2022 As of August 31, 2021 Receivables $ 10,816,679 $ 8,796,992 Contract assets (current) 1,402,395 931,220 Receivables and contract assets, net of allowance (current) 12,219,074 9,728,212 Contract assets (non-current) 35,714 38,334 Deferred revenues (current) 4,561,147 4,229,177 Deferred revenues (non-current) 733,982 700,080 Changes in the contract asset and liability balances during the nine months ended May 31, 2022 were a result of normal business activity and not materially impacted by any other factors. Revenues recognized during the three and nine months ended May 31, 2022 that were included in Deferred revenues as of February 28, 2022 and August 31, 2021 were $2.5 billion and $3.5 billion, respectively. Revenues recognized during the three and nine months ended May 31, 2021 that were included in Deferred revenues as of February 28, 2021 and August 31, 2020 were $2.2 billion and $3.1 billion, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
May 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Earnings Per Share Basic and diluted earnings per share are calculated as follows: Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Basic earnings per share Net income attributable to Accenture plc $ 1,786,075 $ 1,549,426 $ 5,212,041 $ 4,490,561 Basic weighted average Class A ordinary shares 632,749,442 635,203,753 632,969,487 635,151,632 Basic earnings per share $ 2.82 $ 2.44 $ 8.23 $ 7.07 Diluted earnings per share Net income attributable to Accenture plc $ 1,786,075 $ 1,549,426 $ 5,212,041 $ 4,490,561 Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1) 1,902 1,699 5,578 5,001 Net income for diluted earnings per share calculation $ 1,787,977 $ 1,551,125 $ 5,217,619 $ 4,495,562 Basic weighted average Class A ordinary shares 632,749,442 635,203,753 632,969,487 635,151,632 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 673,775 696,473 677,363 707,408 Diluted effect of employee compensation related to Class A ordinary shares 7,513,927 9,485,736 9,834,622 10,245,649 Diluted effect of share purchase plans related to Class A ordinary shares 67,597 68,059 210,968 139,312 Diluted weighted average Class A ordinary shares 641,004,741 645,454,021 643,692,440 646,244,001 Diluted earnings per share $ 2.79 $ 2.40 $ 8.11 $ 6.96 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
May 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc: Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Foreign currency translation Beginning balance $ (1,186,417) $ (843,968) $ (975,064) $ (1,010,279) Foreign currency translation (235,827) 72,565 (455,075) 242,016 Income tax benefit (expense) 110 (583) 2,477 (1,734) Portion attributable to noncontrolling interests 4,406 (3,903) 9,934 (5,892) Foreign currency translation, net of tax (231,311) 68,079 (442,664) 234,390 Ending balance (1,417,728) (775,889) (1,417,728) (775,889) Defined benefit plans Beginning balance (563,385) (594,087) (559,958) (615,223) Reclassifications into net periodic pension and 12,579 13,698 7,881 41,035 Income tax benefit (expense) (2,276) (2,638) (1,009) (8,816) Portion attributable to noncontrolling interests (11) (12) (7) (35) Defined benefit plans, net of tax 10,292 11,048 6,865 32,184 Ending balance (553,093) (583,039) (553,093) (583,039) Cash flow hedges Beginning balance 74,317 27,617 115,525 63,714 Unrealized gain (loss) (37,978) 118,720 (31,924) 109,058 Reclassification adjustments into Cost of services (27,449) (33,043) (78,142) (68,329) Income tax benefit (expense) 7,724 (15,045) 11,111 (6,234) Portion attributable to noncontrolling interests 61 (78) 105 (38) Cash flow hedges, net of tax (57,642) 70,554 (98,850) 34,457 Ending balance (1) 16,675 98,171 16,675 98,171 Investments Beginning balance — — — (49) Unrealized gain (loss) — — — 49 Investments, net of tax — — — 49 Ending balance — — — — Accumulated other comprehensive loss $ (1,954,146) $ (1,260,757) $ (1,954,146) $ (1,260,757) |
BUSINESS COMBINATIONS AND DISPO
BUSINESS COMBINATIONS AND DISPOSITIONS | 9 Months Ended |
May 31, 2022 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS AND DISPOSITIONS | Business Combinations and Dispositions Business Combinations During the nine months ended May 31, 2022, we completed individually immaterial acquisitions for total consideration of $2,181,316, net of cash acquired. The pro forma effects of these acquisitions on our operations were not material. Dispositions During the third quarter of fiscal 2022, we disposed of our business in Russia, which was part of our Europe segment. The transaction resulted in a non-operating loss of $96,294, which was not deductible for tax purposes and did not have a material effect on our operations or financial results. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
May 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill by reportable operating segment are as follows: August 31, Additions/ Foreign May 31, North America $ 6,618,198 $ 396,122 $ (693) $ 7,013,627 Europe 3,329,746 1,240,717 (363,646) 4,206,817 Growth Markets 1,177,917 137,532 (36,450) 1,278,999 Total $ 11,125,861 $ 1,774,371 $ (400,789) $ 12,499,443 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, 2021 May 31, 2022 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 2,068,156 $ (654,460) $ 1,413,696 $ 2,356,899 $ (807,826) $ 1,549,073 Technology 250,481 (54,391) 196,090 264,040 (83,716) 180,324 Patents 126,202 (66,650) 59,552 127,688 (70,893) 56,795 Other 70,407 (28,807) 41,600 72,095 (36,992) 35,103 Total $ 2,515,246 $ (804,308) $ 1,710,938 $ 2,820,722 $ (999,427) $ 1,821,295 Total amortization related to our intangible assets was $109,855 and $328,228 for the three and nine months ended May 31, 2022, respectively. Total amortization related to our intangible assets was $93,980 and $234,933 for the three and nine months ended May 31, 2021, respectively. Estimated future amortization related to intangible assets held as of May 31, 2022 is as follows: Fiscal Year Estimated Amortization Remainder of 2022 $ 98,449 2023 350,336 2024 313,662 2025 290,175 2026 243,997 Thereafter 524,676 Total $ 1,821,295 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
May 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | Shareholders’ Equity Dividends Our dividend activity during the nine months ended May 31, 2022 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 15, 2021 $ 0.97 October 14, 2021 $ 612,543 October 12, 2021 $ 665 $ 613,208 February 15, 2022 0.97 January 13, 2022 615,926 January 11, 2022 657 616,583 May 13, 2022 0.97 April 14, 2022 613,135 April 12, 2022 650 613,785 Total Dividends $ 1,841,604 $ 1,972 $ 1,843,576 The payment of cash dividends includes the net effect of $77,938 of additional restricted stock units being issued as a part of our share plans, which resulted in 233,603 restricted share units being issued. Subsequent Event On June 22, 2022, the Board of Directors of Accenture plc declared a quarterly cash dividend of $0.97 per share on our Class A ordinary shares for shareholders of record at the close of business on July 14, 2022 payable on August 15, 2022. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
May 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | Financial Instruments Derivatives In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts. Cash Flow Hedges For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and nine months ended May 31, 2022 and 2021, 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 $31,285 and $67,812 for the three and nine months ended May 31, 2022, respectively, and net losses of $13,165 and net gains of $11,370 for the three and nine months ended May 31, 2021, 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: May 31, 2022 August 31, 2021 Assets Cash Flow Hedges Other current assets $ 66,800 $ 109,416 Other non-current assets 41,290 70,250 Other Derivatives Other current assets 34,578 32,322 Total assets $ 142,668 $ 211,988 Liabilities Cash Flow Hedges Other accrued liabilities $ 24,727 $ 5,867 Other non-current liabilities 27,774 8,585 Other Derivatives Other accrued liabilities 35,556 3,614 Total liabilities $ 88,057 $ 18,066 Total fair value $ 54,611 $ 193,922 Total notional value $ 10,749,922 $ 10,045,903 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: May 31, 2022 August 31, 2021 Net derivative assets $ 83,716 $ 193,936 Net derivative liabilities 29,105 14 Total fair value $ 54,611 $ 193,922 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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 May 31, 2022 and 2021 were 27.1% and 25.0%, respectively. The effective tax rate for the three months ended May 31, 2022 included higher tax expense from changes in the geographic distribution of earnings. Our effective tax rates for the nine months ended May 31, 2022 and 2021 were 23.8% and 22.1%, respectively. Absent the $271,009 gain on our investment in Duck Creek Technologies and related $41,440 in tax expense, our effective tax rate for the nine months ended May 31, 2021 would have been 22.4%. The effective tax rate for the nine months ended May 31, 2022 included higher tax expense from changes in the geographic distribution of earnings, partially offset by higher tax benefits from share-based payments. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 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 May 31, 2022 and August 31, 2021, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $1,445,000 and $885,000, respectively, of which all but approximately $51,000 and $78,000, 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. As of May 31, 2022 and August 31, 2021, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,108,966 and $928,918, respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. In general, we would only be liable for these guarantees in the event we defaulted in performing our obligations under each contract, the probability of which we believe is remote. 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, indemnification provisions, letters of credit and surety bonds, and believe that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole. Legal Contingencies As of May 31, 2022, 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. 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. On October 27, 2020, the court issued an order largely denying Accenture’s motion to dismiss the claims against us. On May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we are appealing. We continue to believe the lawsuit is without merit and we will vigorously defend it. At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
May 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 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 Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 GEOGRAPHIC MARKETS North America $ 7,613,629 $ 6,199,583 $ 21,597,880 $ 17,312,514 Europe 5,350,360 4,452,360 15,460,313 12,449,811 Growth Markets 3,194,814 2,611,852 9,112,456 7,351,780 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 INDUSTRY GROUPS Communications, Media & Technology $ 3,427,232 $ 2,704,260 $ 9,703,579 $ 7,518,074 Financial Services 3,079,418 2,597,532 8,869,296 7,321,378 Health & Public Service 2,917,028 2,519,591 8,333,915 6,993,381 Products 4,601,473 3,673,963 13,212,255 10,220,982 Resources 2,133,652 1,768,449 6,051,604 5,060,290 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 TYPE OF WORK Consulting $ 9,032,484 $ 7,260,428 $ 25,747,095 $ 20,032,392 Outsourcing 7,126,319 6,003,367 20,423,554 17,081,713 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 Operating Income Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 GEOGRAPHIC MARKETS North America $ 1,379,828 $ 1,128,352 $ 3,715,155 $ 2,789,305 Europe 693,512 607,858 1,969,997 1,740,221 Growth Markets 529,778 382,446 1,413,840 1,133,314 Total Operating Income $ 2,603,118 $ 2,118,656 $ 7,098,992 $ 5,662,840 During the third quarter of fiscal 2022, we identified an immaterial misclassification in Note 16 (Segment Reporting) to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended August 31, 2021. Net assets for North America and Growth Markets as of August 31, 2021 were understated with an offsetting overstatement in Europe. There was no effect on total net assets or on any other items in Accenture’s Consolidated Financial Statements. The disclosure has been adjusted below and will be corrected in Accenture’s Annual Report on Form 10-K for the year ended August 31, 2022. North America Europe Growth Markets Total Net assets as of August 31, 2021, as reported (1) $ 1,859,445 $ 2,860,604 $ 848,684 $ 5,568,733 Adjustments 1,281,873 (1,295,944) 14,071 — Net assets as of August 31, 2021, as adjusted (1) $ 3,141,318 $ 1,564,660 $ 862,755 $ 5,568,733 (1) We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
May 31, 2022 | |
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, 2021 included in our Annual Report on Form 10-K filed with the SEC on October 15, 2021. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and nine months ended May 31, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2022. |
Allowance for Credit Losses - Client Receivables and Contract Assets | Allowance for Credit Losses - Client Receivables and Contract Assets As of May 31, 2022 and August 31, 2021, the total allowance for credit losses recorded for client receivables and contract assets was $25,895 and $32,206, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets. |
Investments | 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: May 31, 2022 August 31, 2021 Equity method investments $ 172,512 $ 184,157 Investments without readily determinable fair values 158,991 145,369 Total non-current investments $ 331,503 $ 329,526 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2021-08 ("Topic 805") On September 1, 2021, we early adopted FASB ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606) rather than adjust them to fair value at the acquisition date. The adoption did not have a material impact on our Consolidated Financial Statements. |
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 May 31, 2022 and August 31, 2021, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $1,445,000 and $885,000, respectively, of which all but approximately $51,000 and $78,000, 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 (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
May 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Non-current investments | Our non-current investments are as follows: May 31, 2022 August 31, 2021 Equity method investments $ 172,512 $ 184,157 Investments without readily determinable fair values 158,991 145,369 Total non-current investments $ 331,503 $ 329,526 |
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 and nine months ended May 31, 2022, respectively. Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 (1) May 31, 2022 May 31, 2021 (1) Depreciation $ 150,272 $ 124,502 $ 438,937 $ 377,910 Amortization - Deferred transition 68,420 65,417 203,957 228,390 Amortization - Intangible assets 109,855 93,980 328,228 234,933 Operating lease cost 193,209 193,763 576,320 559,712 Other 2,430 1,324 5,869 4,016 Total depreciation, amortization and other $ 524,186 $ 478,986 $ 1,553,311 $ 1,404,961 (1) Prior period amounts have been reclassified to conform with the current period presentation. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
May 31, 2022 | |
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 May 31, 2022 As of August 31, 2021 Receivables $ 10,816,679 $ 8,796,992 Contract assets (current) 1,402,395 931,220 Receivables and contract assets, net of allowance (current) 12,219,074 9,728,212 Contract assets (non-current) 35,714 38,334 Deferred revenues (current) 4,561,147 4,229,177 Deferred revenues (non-current) 733,982 700,080 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
May 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows: Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Basic earnings per share Net income attributable to Accenture plc $ 1,786,075 $ 1,549,426 $ 5,212,041 $ 4,490,561 Basic weighted average Class A ordinary shares 632,749,442 635,203,753 632,969,487 635,151,632 Basic earnings per share $ 2.82 $ 2.44 $ 8.23 $ 7.07 Diluted earnings per share Net income attributable to Accenture plc $ 1,786,075 $ 1,549,426 $ 5,212,041 $ 4,490,561 Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1) 1,902 1,699 5,578 5,001 Net income for diluted earnings per share calculation $ 1,787,977 $ 1,551,125 $ 5,217,619 $ 4,495,562 Basic weighted average Class A ordinary shares 632,749,442 635,203,753 632,969,487 635,151,632 Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1) 673,775 696,473 677,363 707,408 Diluted effect of employee compensation related to Class A ordinary shares 7,513,927 9,485,736 9,834,622 10,245,649 Diluted effect of share purchase plans related to Class A ordinary shares 67,597 68,059 210,968 139,312 Diluted weighted average Class A ordinary shares 641,004,741 645,454,021 643,692,440 646,244,001 Diluted earnings per share $ 2.79 $ 2.40 $ 8.11 $ 6.96 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
May 31, 2022 | |
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 Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 Foreign currency translation Beginning balance $ (1,186,417) $ (843,968) $ (975,064) $ (1,010,279) Foreign currency translation (235,827) 72,565 (455,075) 242,016 Income tax benefit (expense) 110 (583) 2,477 (1,734) Portion attributable to noncontrolling interests 4,406 (3,903) 9,934 (5,892) Foreign currency translation, net of tax (231,311) 68,079 (442,664) 234,390 Ending balance (1,417,728) (775,889) (1,417,728) (775,889) Defined benefit plans Beginning balance (563,385) (594,087) (559,958) (615,223) Reclassifications into net periodic pension and 12,579 13,698 7,881 41,035 Income tax benefit (expense) (2,276) (2,638) (1,009) (8,816) Portion attributable to noncontrolling interests (11) (12) (7) (35) Defined benefit plans, net of tax 10,292 11,048 6,865 32,184 Ending balance (553,093) (583,039) (553,093) (583,039) Cash flow hedges Beginning balance 74,317 27,617 115,525 63,714 Unrealized gain (loss) (37,978) 118,720 (31,924) 109,058 Reclassification adjustments into Cost of services (27,449) (33,043) (78,142) (68,329) Income tax benefit (expense) 7,724 (15,045) 11,111 (6,234) Portion attributable to noncontrolling interests 61 (78) 105 (38) Cash flow hedges, net of tax (57,642) 70,554 (98,850) 34,457 Ending balance (1) 16,675 98,171 16,675 98,171 Investments Beginning balance — — — (49) Unrealized gain (loss) — — — 49 Investments, net of tax — — — 49 Ending balance — — — — Accumulated other comprehensive loss $ (1,954,146) $ (1,260,757) $ (1,954,146) $ (1,260,757) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
May 31, 2022 | |
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 May 31, North America $ 6,618,198 $ 396,122 $ (693) $ 7,013,627 Europe 3,329,746 1,240,717 (363,646) 4,206,817 Growth Markets 1,177,917 137,532 (36,450) 1,278,999 Total $ 11,125,861 $ 1,774,371 $ (400,789) $ 12,499,443 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our definite-lived intangible assets by major asset class are as follows: August 31, 2021 May 31, 2022 Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer-related $ 2,068,156 $ (654,460) $ 1,413,696 $ 2,356,899 $ (807,826) $ 1,549,073 Technology 250,481 (54,391) 196,090 264,040 (83,716) 180,324 Patents 126,202 (66,650) 59,552 127,688 (70,893) 56,795 Other 70,407 (28,807) 41,600 72,095 (36,992) 35,103 Total $ 2,515,246 $ (804,308) $ 1,710,938 $ 2,820,722 $ (999,427) $ 1,821,295 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future amortization related to intangible assets held as of May 31, 2022 is as follows: Fiscal Year Estimated Amortization Remainder of 2022 $ 98,449 2023 350,336 2024 313,662 2025 290,175 2026 243,997 Thereafter 524,676 Total $ 1,821,295 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
May 31, 2022 | |
Equity [Abstract] | |
Schedule of Dividend Activity | Our dividend activity during the nine months ended May 31, 2022 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 15, 2021 $ 0.97 October 14, 2021 $ 612,543 October 12, 2021 $ 665 $ 613,208 February 15, 2022 0.97 January 13, 2022 615,926 January 11, 2022 657 616,583 May 13, 2022 0.97 April 14, 2022 613,135 April 12, 2022 650 613,785 Total Dividends $ 1,841,604 $ 1,972 $ 1,843,576 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
May 31, 2022 | |
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: May 31, 2022 August 31, 2021 Assets Cash Flow Hedges Other current assets $ 66,800 $ 109,416 Other non-current assets 41,290 70,250 Other Derivatives Other current assets 34,578 32,322 Total assets $ 142,668 $ 211,988 Liabilities Cash Flow Hedges Other accrued liabilities $ 24,727 $ 5,867 Other non-current liabilities 27,774 8,585 Other Derivatives Other accrued liabilities 35,556 3,614 Total liabilities $ 88,057 $ 18,066 Total fair value $ 54,611 $ 193,922 Total notional value $ 10,749,922 $ 10,045,903 |
Offsetting Derivative Assets and Liabilities Table | The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows: May 31, 2022 August 31, 2021 Net derivative assets $ 83,716 $ 193,936 Net derivative liabilities 29,105 14 Total fair value $ 54,611 $ 193,922 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
May 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Information regarding reportable segments, industry groups and type of work is as follows: Revenues Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 GEOGRAPHIC MARKETS North America $ 7,613,629 $ 6,199,583 $ 21,597,880 $ 17,312,514 Europe 5,350,360 4,452,360 15,460,313 12,449,811 Growth Markets 3,194,814 2,611,852 9,112,456 7,351,780 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 INDUSTRY GROUPS Communications, Media & Technology $ 3,427,232 $ 2,704,260 $ 9,703,579 $ 7,518,074 Financial Services 3,079,418 2,597,532 8,869,296 7,321,378 Health & Public Service 2,917,028 2,519,591 8,333,915 6,993,381 Products 4,601,473 3,673,963 13,212,255 10,220,982 Resources 2,133,652 1,768,449 6,051,604 5,060,290 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 TYPE OF WORK Consulting $ 9,032,484 $ 7,260,428 $ 25,747,095 $ 20,032,392 Outsourcing 7,126,319 6,003,367 20,423,554 17,081,713 Total Revenues $ 16,158,803 $ 13,263,795 $ 46,170,649 $ 37,114,105 Operating Income Three Months Ended Nine Months Ended May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021 GEOGRAPHIC MARKETS North America $ 1,379,828 $ 1,128,352 $ 3,715,155 $ 2,789,305 Europe 693,512 607,858 1,969,997 1,740,221 Growth Markets 529,778 382,446 1,413,840 1,133,314 Total Operating Income $ 2,603,118 $ 2,118,656 $ 7,098,992 $ 5,662,840 |
Schedule of Error Corrections and Prior Period Adjustments | The disclosure has been adjusted below and will be corrected in Accenture’s Annual Report on Form 10-K for the year ended August 31, 2022. North America Europe Growth Markets Total Net assets as of August 31, 2021, as reported (1) $ 1,859,445 $ 2,860,604 $ 848,684 $ 5,568,733 Adjustments 1,281,873 (1,295,944) 14,071 — Net assets as of August 31, 2021, as adjusted (1) $ 3,141,318 $ 1,564,660 $ 862,755 $ 5,568,733 (1) We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues. |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Basis of Presentation [Line Items] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 25,895 | $ 32,206 |
Equity method investments | $ 172,512 | 184,157 |
Equity Method Investment, Ownership Percentage | 16% | |
Equity Method Investments, Fair Value Disclosure | $ 340,426 | |
Accumulated depreciation | 2,625,468 | $ 2,412,449 |
Duck Creek Equity Method Investment | ||
Basis of Presentation [Line Items] | ||
Equity method investments | $ 148,140 |
BASIS OF PRESENTATION- Investme
BASIS OF PRESENTATION- Investments (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Equity method investments | $ 172,512 | $ 184,157 |
Investments without readily determinable fair values | 158,991 | 145,369 |
Investments | $ 331,503 | $ 329,526 |
BASIS OF PRESENTATION - Depreci
BASIS OF PRESENTATION - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Depreciation | $ 150,272 | $ 124,502 | $ 438,937 | $ 377,910 |
Amortization - Deferred transition | 68,420 | 65,417 | 203,957 | 228,390 |
Amortization - Intangible assets | 109,855 | 93,980 | 328,228 | 234,933 |
Operating lease cost | 193,209 | 193,763 | 576,320 | 559,712 |
Other | 2,430 | 1,324 | 5,869 | 4,016 |
Total depreciation, amortization and other | $ 524,186 | $ 478,986 | $ 1,553,311 | $ 1,404,961 |
REVENUES - Additional Informati
REVENUES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | Aug. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 24,000,000 | $ 24,000,000 | $ 23,000,000 | ||
Deferred transition revenues | 733,982 | 733,982 | 700,080 | ||
Capitalized Contract Cost, Net, Noncurrent | 826,042 | 826,042 | $ 731,445 | ||
Contract with Customer, Liability, Revenue Recognized | $ 2,500,000 | $ 2,200,000 | $ 3,500,000 | $ 3,100,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Percentage | 40% | 40% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | 3 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue, Remaining Performance Obligation, Percentage | 36% | 36% | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year |
REVENUES - Schedule of Revenue
REVENUES - Schedule of Revenue (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Revenues [Abstract] | ||
Receivables | $ 10,816,679 | $ 8,796,992 |
Contract assets (current) | 1,402,395 | 931,220 |
Receivables and contract assets, net of allowance (current) | 12,219,074 | 9,728,212 |
Contract assets (non-current) | 35,714 | 38,334 |
Deferred revenues (current) | 4,561,147 | 4,229,177 |
Deferred revenues (non-current) | $ 733,982 | $ 700,080 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Basic earnings per share | ||||
Net income attributable to Accenture plc | $ 1,786,075 | $ 1,549,426 | $ 5,212,041 | $ 4,490,561 |
Basic weighted average Class A ordinary shares (in shares) | 632,749,442 | 635,203,753 | 632,969,487 | 635,151,632 |
Basic earnings per share (in USD per share) | $ 2.82 | $ 2.44 | $ 8.23 | $ 7.07 |
Diluted earnings per share | ||||
Net income attributable to Accenture plc | $ 1,786,075 | $ 1,549,426 | $ 5,212,041 | $ 4,490,561 |
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | 1,902 | 1,699 | 5,578 | 5,001 |
Net income for diluted earnings per share calculation | $ 1,787,977 | $ 1,551,125 | $ 5,217,619 | $ 4,495,562 |
Basic weighted average Class A ordinary shares (in shares) | 632,749,442 | 635,203,753 | 632,969,487 | 635,151,632 |
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (in shares) | 673,775 | 696,473 | 677,363 | 707,408 |
Diluted effect of employee compensation related to Class A ordinary shares (in shares) | 7,513,927 | 9,485,736 | 9,834,622 | 10,245,649 |
Diluted effect of share purchase plans related to Class A ordinary shares (in shares) | 67,597 | 68,059 | 210,968 | 139,312 |
Diluted weighted average Class A ordinary shares (in shares) | 641,004,741 | 645,454,021 | 643,692,440 | 646,244,001 |
Diluted earnings per share (in USD per share) | $ 2.79 | $ 2.40 | $ 8.11 | $ 6.96 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | Aug. 31, 2021 | |
Foreign currency translation | |||||
Beginning balance | $ (1,186,417) | $ (843,968) | $ (975,064) | $ (1,010,279) | |
Foreign currency translation | (235,827) | 72,565 | (455,075) | 242,016 | |
Income tax benefit (expense) | 110 | (583) | 2,477 | (1,734) | |
Portion attributable to noncontrolling interests | 4,406 | (3,903) | 9,934 | (5,892) | |
Foreign currency translation, net of tax | (231,311) | 68,079 | (442,664) | 234,390 | |
Ending balance | (1,417,728) | (775,889) | (1,417,728) | (775,889) | |
Defined benefit plans | |||||
Beginning balance | (563,385) | (594,087) | (559,958) | (615,223) | |
Reclassifications into net periodic pension and post-retirement expense | 12,579 | 13,698 | 7,881 | 41,035 | |
Income tax benefit (expense) | (2,276) | (2,638) | (1,009) | (8,816) | |
Portion attributable to noncontrolling interests | (11) | (12) | (7) | (35) | |
Defined benefit plans, net of tax | 10,292 | 11,048 | 6,865 | 32,184 | |
Ending balance | (553,093) | (583,039) | (553,093) | (583,039) | |
Cash flow hedges | |||||
Beginning balance | 74,317 | 27,617 | 115,525 | 63,714 | |
Unrealized gain (loss) | (37,978) | 118,720 | (31,924) | 109,058 | |
Reclassification adjustments into Cost of services | (27,449) | (33,043) | (78,142) | (68,329) | |
Income tax benefit (expense) | 7,724 | (15,045) | 11,111 | (6,234) | |
Portion attributable to noncontrolling interests | 61 | (78) | 105 | (38) | |
Cash flow hedges, net of tax | (57,642) | 70,554 | (98,850) | 34,457 | |
Ending Balance | 16,675 | 98,171 | 16,675 | 98,171 | |
Investments | |||||
Beginning balance | 0 | 0 | 0 | (49) | |
Unrealized gain (loss) | 0 | 0 | 0 | 49 | |
Investments, net of tax | 0 | 0 | 0 | 49 | |
Ending balance | 0 | 0 | 0 | 0 | |
Accumulated other comprehensive loss | $ (1,954,146) | $ (1,260,757) | (1,954,146) | $ (1,260,757) | $ (1,419,497) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 42,073 |
BUSINESS COMBINATIONS AND DIS_2
BUSINESS COMBINATIONS AND DISPOSITIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Business Acquisitions [Line Items] | ||||
Loss on disposition of Russia business | $ 96,294 | $ 0 | $ 96,294 | $ 0 |
Russia | ||||
Business Acquisitions [Line Items] | ||||
Loss on disposition of Russia business | 96,294 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisitions [Line Items] | ||||
Cash Consideration | $ 2,181,316 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Thousands | 9 Months Ended |
May 31, 2022 USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 11,125,861 |
Additions/ Adjustments | 1,774,371 |
Foreign Currency Translation | (400,789) |
Goodwill, ending balance | 12,499,443 |
North America | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 6,618,198 |
Additions/ Adjustments | 396,122 |
Foreign Currency Translation | (693) |
Goodwill, ending balance | 7,013,627 |
Europe | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 3,329,746 |
Additions/ Adjustments | 1,240,717 |
Foreign Currency Translation | (363,646) |
Goodwill, ending balance | 4,206,817 |
Growth Markets | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,177,917 |
Additions/ Adjustments | 137,532 |
Foreign Currency Translation | (36,450) |
Goodwill, ending balance | $ 1,278,999 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Table by Major Class (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,820,722 | $ 2,515,246 |
Accumulated Amortization | (999,427) | (804,308) |
Net Carrying Amount | 1,821,295 | 1,710,938 |
Customer-related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,356,899 | 2,068,156 |
Accumulated Amortization | (807,826) | (654,460) |
Net Carrying Amount | 1,549,073 | 1,413,696 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 264,040 | 250,481 |
Accumulated Amortization | (83,716) | (54,391) |
Net Carrying Amount | 180,324 | 196,090 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 127,688 | 126,202 |
Accumulated Amortization | (70,893) | (66,650) |
Net Carrying Amount | 56,795 | 59,552 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 72,095 | 70,407 |
Accumulated Amortization | (36,992) | (28,807) |
Net Carrying Amount | $ 35,103 | $ 41,600 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | Aug. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization - Intangible assets | $ 109,855 | $ 93,980 | $ 328,228 | $ 234,933 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||
Remainder of 2022 | 98,449 | 98,449 | |||
2023 | 350,336 | 350,336 | |||
2024 | 313,662 | 313,662 | |||
2025 | 290,175 | 290,175 | |||
2026 | 243,997 | 243,997 | |||
Thereafter | 524,676 | 524,676 | |||
Net Carrying Amount | $ 1,821,295 | $ 1,821,295 | $ 1,710,938 |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Apr. 14, 2022 | Apr. 12, 2022 | Jan. 13, 2022 | Jan. 11, 2022 | Oct. 14, 2021 | Oct. 12, 2021 | May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Dividends [Line Items] | ||||||||||
Dividend Per Share (in USD per share) | $ 0.97 | $ 0.88 | $ 2.91 | $ 2.64 | ||||||
Cash Outlay | $ 1,843,576 | |||||||||
Accenture Canada Holdings Inc Exchangeable Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | 1,972 | |||||||||
Class A Ordinary Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 1,841,604 | |||||||||
Dividend Payment November 2021 | ||||||||||
Dividends [Line Items] | ||||||||||
Dividend Per Share (in USD per share) | $ 0.97 | |||||||||
Cash Outlay | $ 613,208 | |||||||||
Dividend Payment November 2021 | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 665 | |||||||||
Dividend Payment November 2021 | Class A Ordinary Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 612,543 | |||||||||
Dividend Payment February 2022 | ||||||||||
Dividends [Line Items] | ||||||||||
Dividend Per Share (in USD per share) | $ 0.97 | |||||||||
Cash Outlay | $ 616,583 | |||||||||
Dividend Payment February 2022 | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 657 | |||||||||
Dividend Payment February 2022 | Class A Ordinary Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 615,926 | |||||||||
Dividend Payment May 2022 | ||||||||||
Dividends [Line Items] | ||||||||||
Dividend Per Share (in USD per share) | $ 0.97 | |||||||||
Cash Outlay | $ 613,785 | |||||||||
Dividend Payment May 2022 | Accenture Holdings plc ordinary Shares and Accenture Canada Holdings Inc Exchangeable Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 650 | |||||||||
Dividend Payment May 2022 | Class A Ordinary Shares | ||||||||||
Dividends [Line Items] | ||||||||||
Cash Outlay | $ 613,135 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | Jun. 22, 2022 | |
Dividends [Line Items] | |||||
Dividends | $ (613,785) | $ (559,070) | $ (1,843,576) | $ (1,678,164) | |
Subsequent Event [Member] | |||||
Dividends [Line Items] | |||||
Dividends Payable, Amount Per Share (in USD per share) | $ 0.97 | ||||
Restricted Share Units | |||||
Dividends [Line Items] | |||||
Shares issued (in shares) | 233,603 | ||||
Restricted Share Units | Common Stock | |||||
Dividends [Line Items] | |||||
Dividends | $ 23,981 | $ 22,495 | $ 77,938 | $ 64,172 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain (loss) recognized in income on derivatives | $ (31,285) | $ (13,165) | $ (67,812) | $ 11,370 |
FINANCIAL INSTRUMENTS - Notiona
FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Assets | ||
Total assets | $ 142,668 | $ 211,988 |
Liabilities | ||
Total liabilities | 88,057 | 18,066 |
Total fair value | 54,611 | 193,922 |
Total notional value | 10,749,922 | 10,045,903 |
Cash Flow Hedges | Other current assets | ||
Assets | ||
Total assets | 66,800 | 109,416 |
Cash Flow Hedges | Other non-current assets | ||
Assets | ||
Total assets | 41,290 | 70,250 |
Cash Flow Hedges | Other accrued liabilities | ||
Liabilities | ||
Total liabilities | 24,727 | 5,867 |
Cash Flow Hedges | Other non-current liabilities | ||
Liabilities | ||
Total liabilities | 27,774 | 8,585 |
Other Derivatives | Other current assets | ||
Assets | ||
Total assets | 34,578 | 32,322 |
Other Derivatives | Other accrued liabilities | ||
Liabilities | ||
Total liabilities | $ 35,556 | $ 3,614 |
FINANCIAL INSTRUMENTS - Offsett
FINANCIAL INSTRUMENTS - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Offsetting [Abstract] | ||
Net derivative assets | $ 83,716 | $ 193,936 |
Net derivative liabilities | 29,105 | 14 |
Total fair value | $ 54,611 | $ 193,922 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 27.10% | 25% | 23.80% | 22.10% |
Gain on equity method investment | $ 271,009,000 | |||
Gain on equity method investment, tax impact | $ 41,440,000 | |||
Duck Creek Equity Method Investment | ||||
Income Taxes [Line Items] | ||||
Effective tax rate excluding equity method investment gain | 22.40% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | May 31, 2022 | Aug. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Expressly limited performance guarantee | $ 1,445,000 | $ 885,000 |
Portion of guarantee not recoverable | 51,000 | 78,000 |
Letter of Credit and Surety Bonds Outstanding | $ 1,108,966 | $ 928,918 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 9 Months Ended |
May 31, 2022 reportableSegment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SEGMENT REPORTING - Reportable
SEGMENT REPORTING - Reportable Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2022 | May 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 16,158,803 | $ 13,263,795 | $ 46,170,649 | $ 37,114,105 |
Total Operating Income | 2,603,118 | 2,118,656 | 7,098,992 | 5,662,840 |
Consulting | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 9,032,484 | 7,260,428 | 25,747,095 | 20,032,392 |
Outsourcing | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 7,126,319 | 6,003,367 | 20,423,554 | 17,081,713 |
Communications, Media & Technology | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 3,427,232 | 2,704,260 | 9,703,579 | 7,518,074 |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 3,079,418 | 2,597,532 | 8,869,296 | 7,321,378 |
Health & Public Service | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 2,917,028 | 2,519,591 | 8,333,915 | 6,993,381 |
Products | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 4,601,473 | 3,673,963 | 13,212,255 | 10,220,982 |
Resources | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 2,133,652 | 1,768,449 | 6,051,604 | 5,060,290 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 7,613,629 | 6,199,583 | 21,597,880 | 17,312,514 |
Total Operating Income | 1,379,828 | 1,128,352 | 3,715,155 | 2,789,305 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 5,350,360 | 4,452,360 | 15,460,313 | 12,449,811 |
Total Operating Income | 693,512 | 607,858 | 1,969,997 | 1,740,221 |
Growth Markets | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 3,194,814 | 2,611,852 | 9,112,456 | 7,351,780 |
Total Operating Income | $ 529,778 | $ 382,446 | $ 1,413,840 | $ 1,133,314 |
SEGMENT REPORTING - Misclassifi
SEGMENT REPORTING - Misclassification Corrected Adjustments (Details) $ in Thousands | Aug. 31, 2021 USD ($) |
Segment Reporting Information [Line Items] | |
Net assets | $ 5,568,733 |
North America | |
Segment Reporting Information [Line Items] | |
Net assets | 3,141,318 |
Europe | |
Segment Reporting Information [Line Items] | |
Net assets | 1,564,660 |
Growth Markets | |
Segment Reporting Information [Line Items] | |
Net assets | 862,755 |
Previously Reported | |
Segment Reporting Information [Line Items] | |
Net assets | 5,568,733 |
Previously Reported | North America | |
Segment Reporting Information [Line Items] | |
Net assets | 1,859,445 |
Previously Reported | Europe | |
Segment Reporting Information [Line Items] | |
Net assets | 2,860,604 |
Previously Reported | Growth Markets | |
Segment Reporting Information [Line Items] | |
Net assets | 848,684 |
Revision of Prior Period, Adjustment | |
Segment Reporting Information [Line Items] | |
Net assets | 0 |
Revision of Prior Period, Adjustment | North America | |
Segment Reporting Information [Line Items] | |
Net assets | 1,281,873 |
Revision of Prior Period, Adjustment | Europe | |
Segment Reporting Information [Line Items] | |
Net assets | (1,295,944) |
Revision of Prior Period, Adjustment | Growth Markets | |
Segment Reporting Information [Line Items] | |
Net assets | $ 14,071 |