What changed in this filing

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Item 1. Financial Statements

2023-12-19 compared with 2023-06-22 · 101 added, 169 removed, 513 unchanged (34% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

May 31, 2023 and August 31, 2022

May 31, 2023 August 31, 2022

November 30, 2023 and August 31, 2023

November 30, 2023 August 31, 2023

ASSETS (Unaudited)

37 unchanged sentences

SHAREHOLDERS’ EQUITY:

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of May 31, 2023 and August 31, 2022

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 664,125,473 and 664,561,282 shares issued as of May 31, 2023 and August 31, 2022, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 335,238 and 500,837 shares issued and outstanding as of May 31, 2023 and August 31, 2022, respectively

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2023 and August 31, 2023

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 666,511,551 and 664,616,285 shares issued as of November 30, 2023 and August 31, 2023, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 318,441 and 325,438 shares issued and outstanding as of November 30, 2023 and August 31, 2023, respectively

Restricted share units 2,553,022 2,403,374

1 unchanged sentence

Treasury shares, at cost:

Ordinary, 40,000 shares as of May 31, 2023 and August 31, 2022;

Class A ordinary, 33,323,829 and 33,393,703 shares as of May 31, 2023 and August 31, 2022, respectively

Ordinary, 40,000 shares as of November 30, 2023 and August 31, 2023;

Class A ordinary, 39,519,697 and 36,351,137 shares as of November 30, 2023 and August 31, 2023, respectively

( 8,032,018 ) ( 7,062,512 )

11 unchanged sentences

Consolidated Income Statements

For the Three and Nine Months Ended May 31, 2023 and 2022

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

For the Three Months Ended November 30, 2023 and 2022

Revenues $ 16,224,303 $ 15,747,802

9 unchanged sentences

Other income (expense), net ( 35,719 ) ( 28,907 )

Loss on disposition of Russia business — ( 96,294 ) — ( 96,294 )

INCOME BEFORE INCOME TAXES 2,616,653 2,601,618

17 unchanged sentences

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended May 31, 2023 and 2022

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

For the Three Months Ended November 30, 2023 and 2022

NET INCOME $ 2,009,981 $ 1,996,300

15 unchanged sentences

Consolidated Shareholders’ Equity Statement

For the Three Months Ended May 31, 2023

Shares Class A

Shares Class X

Shares Restricted

Units Additional

Capital Treasury Shares Retained

Earnings Accumulated

Comprehensive

Accenture plc

Shareholders’

Equity Noncontrolling

Interests Total

Shareholders’

Balance as of February 28, 2023 $ 57 40 $ 15 662,406 $ — 339 $ 1,636,155 $ 12,163,671 $ ( 5,593,010 ) ( 31,181 ) $ 17,500,001 $ ( 1,944,270 ) $ 23,762,619 $ 694,659 $ 24,457,278

Net income 2,009,996 2,009,996 38,339 2,048,335

Other comprehensive income (loss) 43,347 43,347 827 44,174

Purchases of Class A shares 703 ( 787,299 ) ( 2,815 ) ( 786,596 ) ( 703 ) ( 787,299 )

Share-based compensation expense 406,504 66,191 472,695 472,695

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 4 ) ( 1,638 ) ( 1,638 ) ( 1,638 )

Issuances of Class A shares for employee share programs 1,719 ( 40,094 ) 406,315 253,188 632 ( 82,866 ) 536,543 473 537,016

Dividends 28,011 ( 735,013 ) ( 707,002 ) ( 740 ) ( 707,742 )

Other, net 2,467 2,467 ( 3,357 ) ( 890 )

Balance as of May 31, 2023 $ 57 40 $ 15 664,125 $ — 335 $ 2,030,576 $ 12,637,709 $ ( 6,127,121 ) ( 33,364 ) $ 18,692,118 $ ( 1,900,923 ) $ 25,332,431 $ 729,498 $ 26,061,929

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Financial Statements

(In thousands of U.S.

dollars and share amounts)

ACCENTURE FORM 10-Q

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended May 31, 2022

Shares Class A

Shares Class X

Shares Restricted

Units Additional

Capital Treasury Shares Retained

Earnings Accumulated

Comprehensive

Accenture plc

Shareholders’

Equity Noncontrolling

Interests Total

Shareholders’

Balance as of February 28, 2022 $ 57 40 $ 15 662,417 $ — 504 $ 1,438,596 $ 10,065,790 $ ( 5,297,349 ) ( 29,035 ) $ 16,028,399 $ ( 1,675,485 ) $ 20,560,023 $ 596,956 $ 21,156,979

Net income 1,786,075 1,786,075 33,241 1,819,316

Other comprehensive income (loss) ( 278,661 ) ( 278,661 ) ( 4,456 ) ( 283,117 )

Purchases of Class A shares 925 ( 972,171 ) ( 3,102 ) ( 971,246 ) ( 925 ) ( 972,171 )

Share-based compensation expense 346,666 60,591 407,257 407,257

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares — —

Issuances of Class A shares for employee share programs 1,568 ( 55,313 ) 405,704 147,118 569 497,509 465 497,974

Dividends 23,981 ( 637,116 ) ( 613,135 ) ( 650 ) ( 613,785 )

Other, net 1,272 1,272 ( 2,002 ) ( 730 )

Balance as of May 31, 2022 $ 57 40 $ 15 663,985 $ — 504 $ 1,753,930 $ 10,534,282 $ ( 6,122,402 ) ( 31,568 ) $ 17,177,358 $ ( 1,954,146 ) $ 21,389,094 $ 622,629 $ 22,011,723

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Consolidated Financial Statements

(In thousands of U.S.

dollars and share amounts)

ACCENTURE FORM 10-Q

Consolidated Shareholders’ Equity Statement — (continued)

For the Nine Months Ended May 31, 2023

For the Three Months Ended November 30, 2023

Shares Class A

14 unchanged sentences

Purchases of Class A shares 1,050 ( 1,188,289 ) ( 3,810 ) ( 1,187,239 ) ( 1,050 ) ( 1,188,289 )

Cancellation of treasury shares ( 8,828 ) ( 175,701 ) 2,595,281 8,828 ( 2,419,580 ) — —

Share-based compensation expense 365,711 57,289 423,000 423,000

4 unchanged sentences

Other, net ( 6,140 ) ( 6,140 ) 5,982 ( 158 )

Balance as of May 31, 2023 $ 57 40 $ 15 664,125 $ — 335 $ 2,030,576 $ 12,637,709 $ ( 6,127,121 ) ( 33,364 ) $ 18,692,118 $ ( 1,900,923 ) $ 25,332,431 $ 729,498 $ 26,061,929

Balance as of November 30, 2023 $ 57 40 $ 15 666,512 $ — 318 $ 2,553,022 $ 13,353,477 $ ( 8,032,018 ) ( 39,560 ) $ 20,429,413 $ ( 1,627,215 ) $ 26,676,751 $ 808,686 $ 27,485,437

The accompanying Notes are an integral part of these Consolidated Financial Statements.

4 unchanged sentences

Consolidated Shareholders’ Equity Statement — (continued)

For the Nine Months Ended May 31, 2022

For the Three Months Ended November 30, 2022

Shares Class A

14 unchanged sentences

Purchases of Class A shares 1,304 ( 1,417,148 ) ( 5,210 ) ( 1,415,844 ) ( 1,304 ) ( 1,417,148 )

Cancellation of treasury shares ( 8,828 ) ( 175,701 ) 2,595,281 8,828 ( 2,419,580 ) — —

Share-based compensation expense 369,494 55,975 425,469 425,469

4 unchanged sentences

Other, net 475 475 17,641 18,116

Balance as of May 31, 2022 $ 57 40 $ 15 663,985 $ — 504 $ 1,753,930 $ 10,534,282 $ ( 6,122,402 ) ( 31,568 ) $ 17,177,358 $ ( 1,954,146 ) $ 21,389,094 $ 622,629 $ 22,011,723

Balance as of November 30, 2022 $ 57 40 $ 15 658,255 $ — 499 $ 2,167,437 $ 11,051,309 $ ( 5,169,967 ) ( 28,850 ) $ 16,981,432 $ ( 2,055,672 ) $ 22,974,611 $ 691,339 $ 23,665,950

The accompanying Notes are an integral part of these Consolidated Financial Statements.

3 unchanged sentences

Consolidated Cash Flows Statements

For the Nine Months Ended May 31, 2023 and 2022

May 31, 2023 May 31, 2022

For the Three Months Ended November 30, 2023 and 2022

CASH FLOWS FROM OPERATING ACTIVITIES:

17 unchanged sentences

Purchases of businesses and investments, net of cash acquired ( 788,025 ) ( 686,460 )

Proceeds from the sale of businesses and investments, net of cash transferred 418,113 ( 108,099 )

Proceeds from the sale of businesses and investments — 596

Other investing, net 1,528 2,620

3 unchanged sentences

Purchases of shares ( 1,191,128 ) ( 1,418,702 )

Proceeds from (repayments of) long-term debt, net ( 364 ) ( 11,530 )

Proceeds from (repayments of) debt, net ( 8,481 ) ( 1,611 )

Cash dividends paid ( 810,056 ) ( 705,567 )

24 unchanged sentences

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, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2023.

The results of operations for the three months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2024.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of May 31, 2023 and August 31, 2022, the total allowance for credit losses recorded for client receivables and contract assets was $ 26,770 and $ 25,786 , respectively.

As of November 30, 2023 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $ 24,210 and $ 26,343 , respectively.

The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

2 unchanged sentences

Our non-current investments are as follows:

May 31, 2023 August 31, 2022

November 30, 2023 August 31, 2023

Equity method investments $ 23,778 $ 23,985

3 unchanged sentences

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.

As of August 31, 2022, our equity method investments consisted primarily of an investment in Duck Creek Technologies.

On March 30, 2023, Duck Creek Technologies was acquired by Vista Equity Partners for $ 19.00 per share.

As part of this transaction, we received proceeds of $ 400,355 and recorded a gain of $ 252,920 in Other income (expense), net during the third quarter of fiscal 2023.

Notes To Consolidated Financial Statements

3 unchanged sentences

Depreciation and Amortization

As of May 31, 2023 and August 31, 2022, total accumulated depreciation was $ 2,766,344 and $ 2,490,187 , respectively.

See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and nine months ended May 31, 2023 and 2022, respectively.

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

As of November 30, 2023 and August 31, 2023, total accumulated depreciation was $ 2,660,216 and $ 2,574,685 , respectively.

See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2023 and 2022, respectively.

Three Months Ended

November 30, 2023 November 30, 2022

Depreciation $ 133,245 $ 144,049

6 unchanged sentences

During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs.

We recorded $ 346,873 and $ 591,263 of business optimization costs during the three and nine months ended May 31, 2023 , respectively, primarily for employee severance.

Total b usiness optimization costs by reportable operating segment are as follows:

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2023

We recorded $ 1.1 billion in fiscal 2023 related to these actions and expect to record approximately $ 450 million in fiscal 2024 for a total of $ 1.5 billion, primarily related to employee severance.

The actual amount and timing of severance and other personnel costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.

Total b usiness optimization costs by reportable operating segment for the three months ended November 30, 2023 were as follows:

Three Months Ended

November 30, 2023

North America $ 45,929

Europe 166,463 206,840

EMEA (1) 70,804

Growth Markets (1) 22,931

Total business optimization costs $ 139,664

We continue to expect to record total business optimization costs of approximately $ 1.5 billion related to these actions, with approximately $ 800 million in fiscal 2023 and $ 700 million in fiscal 2024.

This consists of approximately $ 1.2 billion of employee severance and other personnel costs and $ 300 million of costs related to the consolidation of office space.

(1) Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market is now referred to as our EMEA (Europe, Middle East and Africa) geographic market.

New Accounting Pronouncement

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.

The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option.

We are in the process of assessing the impacts and method of adoption.

This ASU will impact our income tax disclosures, but not our Consolidated Financial Statements.

Notes To Consolidated Financial Statements

5 unchanged sentences

Remaining Performance Obligations

We had remaining performance obligations of approximately $ 26 billion and $ 24 billion as of May 31, 2023 and August 31, 2022, respectively.

We had remaining performance obligations of approximately $ 26 billion as of November 30, 2023 and August 31, 2023, respectively.

Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized.

3 unchanged sentences

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 37 % of our remaining performance obligations as of May 31, 2023 as revenue in fiscal 2023, an additional 35 % in fiscal 2024, and the balance thereafter.

We expect to recognize approximately 60 % of our remaining performance obligations as of November 30, 2023 as revenue in fiscal 2024, an additional 20 % in fiscal 2025, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and nine months ended May 31, 2023 and 2022.

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three months ended November 30, 2023 and 2022, respectively.

Contract Balances

Deferred transition revenues were $ 687,098 and $ 712,715 as of May 31, 2023 and August 31, 2022, respectively, and are included in Non-current deferred revenues.

Deferred transition revenues were $ 634,981 and $ 653,954 as of November 30, 2023 and August 31, 2023, respectively, and are included in Non-current deferred revenues.

Costs related to these activities are also deferred and are expensed as the services are provided.

Deferred transition costs were $ 852,188 and $ 807,940 as of May 31, 2023 and August 31, 2022, respectively, and are included in Deferred contract costs.

Deferred transition costs were $ 827,608 and $ 851,972 as of November 30, 2023 and August 31, 2023, 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.

1 unchanged sentence

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, 2023 As of August 31, 2022

As of November 30, 2023 As of August 31, 2023

Receivables $ 11,467,109 $ 10,690,713

4 unchanged sentences

Deferred revenues (non-current) 634,981 653,954

Changes in the contract asset and liability balances during the nine months ended May 31, 2023 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, 2023 that were included in Deferred revenues as of February 28, 2023 and August 31, 2022 were $ 2.7 billion and $ 3.7 billion, respectively.

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.

Changes in the contract asset and liability balances during the three months ended November 30, 2023 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three months ended November 30, 2023 that were included in Deferred revenues as of August 31, 2023 were $ 2.8 billion.

Revenues recognized during the three months ended November 30, 2022 that were included in Deferred revenues as of August 31, 2022 were $ 2.5 billion.

Notes To Consolidated Financial Statements

4 unchanged sentences

Basic and diluted earnings per share are calculated as follows:

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

Three Months Ended

November 30, 2023 November 30, 2022

Basic earnings per share

22 unchanged sentences

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, 2023 May 31, 2022 May 31, 2023 May 31, 2022

Three Months Ended

November 30, 2023 November 30, 2022

Foreign currency translation

22 unchanged sentences

Accumulated other comprehensive loss $ ( 1,627,215 ) $ ( 2,055,672 )

(1) As of May 31, 2023, $ 1,761 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.

(1) As of November 30, 2023, $ 13,741 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.

Notes To Consolidated Financial Statements

3 unchanged sentences

Business Combinations

During the nine months ended May 31, 2023, we completed individually immaterial acquisitions for total consideration of $ 1,315,925 , net of cash acquired.

During the three months ended November 30, 2023, we completed individually immaterial acquisitions for total consideration of $ 781,525 , net of cash acquired.

The pro forma effects of these acquisitions on our operations were not material.

3 unchanged sentences

Adjustments Foreign

Translation May 31, 2023

Translation November 30, 2023

North America $ 8,876,050 $ 445,211 $ 1,699 $ 9,322,960

Europe 4,134,091 452,915 269,623 4,856,629

EMEA (1) 5,152,149 152,424 22,123 5,326,696

Growth Markets (1) 1,544,804 31,702 10,280 1,586,786

Total $ 15,573,003 $ 629,337 $ 34,102 $ 16,236,442

Prior period amounts have been reclassified to conform with the current period presentation.

Goodwill includes immaterial adjustments related to prior period acquisitions.

1 unchanged sentence

Our definite-lived intangible assets by major asset class are as follows:

August 31, 2022 May 31, 2023

August 31, 2023 November 30, 2023

Intangible Asset Class Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

4 unchanged sentences

Total $ 3,320,963 $ ( 1,248,006 ) $ 2,072,957 $ 3,461,011 $ ( 1,316,707 ) $ 2,144,304

Total amortization related to our intangible assets was $ 101,814 and $ 331,095 for the three and nine months ended May 31, 2023, respectively.

Total amortization related to our intangible assets was $ 109,855 and $ 328,228 for the three and nine months ended May 31, 2022, respectively.

Estimated future amortization related to intangible assets held as of May 31, 2023 is as follows:

Total amortization related to our intangible assets was $ 111,631 and $ 109,069 for the three months ended November 30, 2023 and 2022, respectively.

Estimated future amortization related to intangible assets held as of November 30, 2023 is as follows:

Fiscal Year Estimated Amortization

7 unchanged sentences

Shareholders’ Equity

Cancellation of Treasury Shares

During the nine months ended May 31, 2023, we cancelled 8,828,496 Accenture plc Class A ordinary shares that were held as treasury shares and had an aggregate cost of $ 2,595,281 .

The effect of the cancellation of these treasury shares was recognized in Class A ordinary shares and Additional paid-in capital with the residual recorded in Retained earnings.

There was no effect on total shareholders’ equity as a result of this cancellation.

Our dividend activity during the nine months ended May 31, 2023 is as follows:

Our dividend activity during the three months ended November 30, 2023 is as follows:

Share Accenture plc Class A

3 unchanged sentences

November 15, 2023 $ 1.29 October 12, 2023 $ 809,225 October 10, 2023 $ 831 $ 810,056

February 15, 2023 1.12 January 12, 2023 707,156 January 10, 2023 866 708,022

May 15, 2023 1.12 April 13, 2023 707,002 April 11, 2023 740 707,742

Total Dividends $ 2,119,096 $ 2,235 $ 2,121,331

The payment of cash dividends includes the net effect of $ 29,279 of additional restricted stock units being issued as a part of our share plans, which resulted in 89,674 restricted share units being issued.

Subsequent Event

On June 21, 2023, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ 1.12 per share on our Class A ordinary shares for shareholders of record at the close of business on July 13, 2023 payable on August 15, 2023.

On December 18, 2023, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ 1.29 per share on our Class A ordinary shares for shareholders of record at the close of business on January 18, 2024 payable on February 15, 2024.

Notes To Consolidated Financial Statements

7 unchanged sentences

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, 2023 and 2022, 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.

For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2023 and 2022, as well as those expected to be reclassified into Cost of services in the next twelve 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 $ 72,091 and $ 94,351 for the three and nine months ended May 31, 2023, respectively, and net losses of $ 31,285 and $ 67,812 for the three and nine months ended May 31, 2022, respectively.

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 $ 20,280 and $ 29,691 for the three months ended November 30, 2023 and 2022, 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.

1 unchanged sentence

The notional and fair values of all derivative instruments are as follows:

May 31, 2023 August 31, 2022

November 30, 2023 August 31, 2023

Cash Flow Hedges

15 unchanged sentences

The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:

May 31, 2023 August 31, 2022

November 30, 2023 August 31, 2023

Net derivative assets $ 101,420 $ 50,528

7 unchanged sentences

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, 2023 and 2022 were 22.2 % and 27.1 %, respectively.

The lower effective tax rate for the three months ended May 31, 2023 was primarily due to lower tax expense from changes in the geographic distribution of earnings, the tax impact from an investment gain and higher benefits from adjustments to prior year tax liabilities.

Our effective tax rates for the nine months ended May 31, 2023 and 2022 were 22.1 % and 23.8 %, respectively.

The lower effective tax rate for the nine months ended May 31, 2023 was primarily due to lower tax expense from changes in the geographic distribution of earnings, higher benefits from adjustments to prior year tax liabilities and the tax impact from an investment gain, partially offset by lower tax benefits from share-based payments.

Our effective tax rates for the three months ended November 30, 2023 and 2022 were 23.2 % and 23.3 %, respectively.

Commitments and Contingencies

1 unchanged sentence

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, 2023 and August 31, 2022, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 1,750,000 and $ 1,349,000 , respectively, of which all but approximately $ 51,000 and $ 49,000 , 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.

As of November 30, 2023 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 1,929,000 and $ 1,793,000 , respectively, of which all but approximately $ 52,000 and $ 51,000 , 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, 2023 and August 31, 2022, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,239,648 and $ 1,116,298 , respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance.

As of November 30, 2023 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,348,671 and $ 1,294,653 , 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.

3 unchanged sentences

Legal Contingencies

As of May 31, 2023, we or our present personnel had been named as a defendant in various litigation matters.

As of November 30, 2023, 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.

Based on the present status of these matters, except as otherwise noted below, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on our results of operations or financial condition.

On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc.

4 unchanged sentences

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.

Oral argument on the appeal was held on May 3, 2023.

On May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we appealed.

On August 17, 2023, the appeals court vacated the class certification and remanded the case to the district court for consideration of, among other things, the class action waiver signed by Starwood customer plaintiffs.

On November 29, 2023, the district court reinstated the classes previously certified by the court in May 2022.

We have filed a petition to appeal.

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.

After Accenture Federal Services (“AFS”) made a voluntary disclosure to the U.S.

government, the U.S.

Department of Justice (“DOJ”) initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to

Notes To Consolidated Financial Statements

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ACCENTURE FORM 10-Q

an assessor who was evaluating on behalf of the U.S.

government an AFS service offering and whether the service offering fully implemented required federal security controls.

AFS is responding to an administrative subpoena and cooperating with DOJ’s investigation.

This matter could subject us to adverse consequences as described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended August 31, 2023 – “Our work with government clients exposes us to additional risks inherent in the government contracting environment”.

We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.

Segment Reporting

Our reportable segments are our three geographic markets, which are North America, Europe and Growth Markets.

Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market is now referred to as our EMEA (Europe, Middle East and Africa) geographic market.

Prior period amounts below have been reclassified to conform with the current period presentation.

Our reportable segments are our three geographic markets, which are North America, EMEA and Growth Markets.

Information regarding reportable segments, industry groups and type of work is as follows:

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

Three Months Ended

November 30, 2023 November 30, 2022

Geographic Markets

North America $ 7,562,902 $ 7,622,820

Europe 5,615,466 5,350,360 15,987,685 15,460,313

EMEA 5,803,642 5,312,899

Growth Markets 2,857,759 2,812,083

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Total Revenues $ 16,224,303 $ 15,747,802

(1) Effective June 1, 2022, we revised the reporting of our industry groups for the movement of Aerospace & Defense from Communications, Media & Technology to Products.

Prior period amounts have been reclassified to conform with the current period presentation.

(2) Previously referred to as our outsourcing business.

Operating Income

Three Months Ended Nine Months Ended

May 31, 2023 May 31, 2022 May 31, 2023 May 31, 2022

Three Months Ended

November 30, 2023 November 30, 2022

Geographic Markets

North America $ 1,256,708 $ 1,309,883

Europe 631,547 693,512 1,895,180 1,969,997

EMEA 823,601 726,883

Growth Markets 484,578 556,334

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• Our ability to attract and retain business and employees may depend on our reputation in the marketplace.

• Our environmental, social and governance (ESG) commitments and disclosures may expose us to reputational risks and legal liability.

• If we do not successfully manage and develop our relationships with key ecosystem partners or if we fail to anticipate and establish new alliances in new technologies, our results of operations could be adversely affected.

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For a more detailed discussion of these factors, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended August 31, 2023.

In addition, the timing and amount of costs related to our business optimization actions and the nature and extent of benefits realized from such actions are subject to uncertainties and other factors, including local country consultation processes and regulations, and may differ from our current expectations and estimates.

Our forward-looking statements speak only as of the date of this report or as of the date they are made, and we undertake no obligation to update any forward-looking statements.

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We serve clients in three geographic markets:

North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East).

We combine our strength in technology with industry experience, functional expertise and global delivery capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.

North America, EMEA (Europe, Middle East and Africa) and Growth Markets (Asia Pacific and Latin America).

We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.

Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.

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From an industry perspective, we are also experiencing reduced demand particularly in our Communications, Media & Technology industry group.

Key metrics for the third quarter of fiscal 2023 compared to the third quarter of fiscal 2022 are included below.

We have presented operating margin and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $347 million in business optimization costs and, with respect to diluted earnings per share, the impact of a $253 million investment gain recorded during the third quarter of fiscal 2023.

Key metrics for the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023 are included below.

We have presented operating margin and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $140 million in business optimization costs.

For additional information, see Note 1 (Basis of Presentation) to our Consolidated Financial Statements under Item 1, “Financial Statements.”

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dollars and 12% in local currency;

• Operating margin of 14.2%, compared to 16.1% in the third quarter of fiscal 2022;

• Operating margin of 15.8%, compared to 16.5% in the first quarter of fiscal 2023;

adjusted operating margin expanded 20 basis points to 16.7%;

• Diluted earnings per share of $3.15, compared to $2.79 in the third quarter of fiscal 2022;

• Diluted earnings per share of $3.10, compared to $3.08 in the first quarter of fiscal 2023;

adjusted earnings per share increased 6% to $3.27;

• Cash returned to shareholders of $1.5 billion, including share purchases of $789 million and dividends of $708 million.

• Cash returned to shareholders of $2.0 billion, including share purchases of $1.2 billion and dividends of $810 million.

Three Months Ended Percent

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(in billions of U.S.

Dollars) May 31, 2023 May 31, 2022

dollars) November 30, 2023 November 30, 2022

Geographic Markets (1) North America $ 7.6 $ 7.6 (1) % (1) %

Europe 5.6 5.4 5 7

EMEA 5.8 5.3 9 2

Growth Markets 2.9 2.8 2 5

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Amounts in table may not total due to rounding.

(1) Effective June 1, 2022, we revised the reporting of our industry groups for the movement of Aerospace & Defense from Communications, Media & Technology to Products.

Prior period amounts have been reclassified to conform with the current period presentation.

(2) Previously referred to as our outsourcing business.

ACCENTURE FORM 10-Q

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements