What changed in this filing

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Item 1. Financial Statements

2024-03-21 compared with 2023-12-19 · 153 added, 78 removed, 536 unchanged (30% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

November 30, 2023 and August 31, 2023

November 30, 2023 August 31, 2023

February 29, 2024 and August 31, 2023

February 29, 2024 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 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

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of February 29, 2024 and August 31, 2023

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 670,405,499 and 664,616,285 shares issued as of February 29, 2024 and August 31, 2023, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 314,754 and 325,438 shares issued and outstanding as of February 29, 2024 and August 31, 2023, respectively

Restricted share units 1,863,338 2,403,374

1 unchanged sentence

Treasury shares, at cost:

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

Ordinary, 40,000 shares as of February 29, 2024 and August 31, 2023;

Class A ordinary, 41,577,466 and 36,351,137 shares as of February 29, 2024 and August 31, 2023, respectively

( 8,790,812 ) ( 7,062,512 )

11 unchanged sentences

Consolidated Income Statements

For the Three Months Ended November 30, 2023 and 2022

For the Three and Six Months Ended February 29, 2024 and February 28, 2023

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Revenues $ 15,799,514 $ 15,814,158 $ 32,023,817 $ 31,561,960

28 unchanged sentences

Consolidated Statements of Comprehensive Income

For the Three Months Ended November 30, 2023 and 2022

For the Three and Six Months Ended February 29, 2024 and February 28, 2023

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

NET INCOME $ 1,709,202 $ 1,550,683 $ 3,719,183 $ 3,546,983

15 unchanged sentences

Consolidated Shareholders’ Equity Statement

For the Three Months Ended November 30, 2023

For the Three Months Ended February 29, 2024

Shares Class A

10 unchanged sentences

Shareholders’

Balance as of August 31, 2023 $ 57 40 $ 15 664,616 $ — 325 $ 2,403,374 $ 12,778,782 $ ( 7,062,512 ) ( 36,391 ) $ 19,316,224 $ ( 1,743,101 ) $ 25,692,839 $ 765,754 $ 26,458,593

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

Net income 1,674,859 1,674,859 34,343 1,709,202

7 unchanged sentences

Other, net 6,632 6,632 ( 5,485 ) 1,147

Balance as of February 29, 2024 $ 57 40 $ 15 670,405 $ — 315 $ 1,863,338 $ 14,555,758 $ ( 8,790,812 ) ( 41,617 ) $ 21,151,637 $ ( 1,657,140 ) $ 27,122,853 $ 833,571 $ 27,956,424

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 February 28, 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 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

Net income 1,523,648 1,523,648 27,035 1,550,683

Other comprehensive income (loss) 111,402 111,402 2,469 113,871

Purchases of Class A shares 1,014 ( 1,117,535 ) ( 4,085 ) ( 1,116,521 ) ( 1,014 ) ( 1,117,535 )

Share-based compensation expense 631,871 ( 1 ) 631,870 631,870

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 160 ) ( 676 ) ( 676 ) ( 676 )

Issuances of Class A shares for employee share programs 4,151 ( 1,193,792 ) 1,108,186 694,492 1,754 ( 267,284 ) 341,602 312 341,914

Dividends 30,639 ( 737,795 ) ( 707,156 ) ( 866 ) ( 708,022 )

Other, net 3,839 3,839 ( 24,616 ) ( 20,777 )

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

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

4 unchanged sentences

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended November 30, 2022

For the Six Months Ended February 29, 2024

Shares Class A

14 unchanged sentences

Purchases of Class A shares 2,203 ( 2,506,701 ) ( 7,552 ) ( 2,504,498 ) ( 2,203 ) ( 2,506,701 )

Share-based compensation expense 1,007,582 57,289 1,064,871 1,064,871

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 10 ) ( 6,273 ) ( 6,273 ) ( 6,273 )

Issuances of Class A shares for employee share programs 5,789 ( 1,614,744 ) 1,723,265 778,401 2,326 ( 124,773 ) 762,149 658 762,807

Dividends 67,126 ( 1,688,117 ) ( 1,620,991 ) ( 1,643 ) ( 1,622,634 )

Other, net 492 492 497 989

Balance as of February 29, 2024 $ 57 40 $ 15 670,405 $ — 315 $ 1,863,338 $ 14,555,758 $ ( 8,790,812 ) ( 41,617 ) $ 21,151,637 $ ( 1,657,140 ) $ 27,122,853 $ 833,571 $ 27,956,424

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 Six Months Ended February 28, 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 August 31, 2022 $ 57 40 $ 15 664,561 $ — 501 $ 2,091,382 $ 10,679,180 $ ( 6,678,037 ) ( 33,434 ) $ 18,203,842 $ ( 2,190,342 ) $ 22,106,097 $ 640,991 $ 22,747,088

Net income 3,488,598 3,488,598 58,385 3,546,983

Other comprehensive income (loss) 246,072 246,072 5,338 251,410

Purchases of Class A shares 2,318 ( 2,534,683 ) ( 9,295 ) ( 2,532,365 ) ( 2,318 ) ( 2,534,683 )

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

5 unchanged sentences

Other, net 4,314 4,314 ( 6,975 ) ( 2,661 )

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

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

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

3 unchanged sentences

Consolidated Cash Flows Statements

For the Three Months Ended November 30, 2023 and 2022

For the Six Months Ended February 29, 2024 and February 28, 2023

February 29, 2024 February 28, 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

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

The results of operations for the three and six months ended February 29, 2024 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 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.

As of February 29, 2024 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $ 23,887 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:

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Equity method investments $ 24,511 $ 23,985

8 unchanged sentences

Depreciation and Amortization

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

As of February 29, 2024 and August 31, 2023, total accumulated depreciation was $ 2,730,911 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 and six months ended February 29, 2024 and February 28, 2023, respectively.

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Depreciation $ 134,997 $ 137,742 $ 268,242 $ 281,791

8 unchanged sentences

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

Total b usiness optimization costs by reportable operating segment for the three and six months ended February 29, 2024 and February 28, 2023, respectively, were as follows:

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

North America $ 4,689 $ 176,980 $ 50,618 $ 176,980

3 unchanged sentences

(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.

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

New Accounting Pronouncements

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses.

The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption.

We are currently evaluating the impact of this standard on our segment disclosures.

On December 14, 2023, the FASB issued ASU No.

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

9 unchanged sentences

Remaining Performance Obligations

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

We had remaining performance obligations of approximately $ 27 billion and $ 26 billion as of February 29, 2024 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 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.

We expect to recognize approximately 51 % of our remaining performance obligations as of February 29, 2024 as revenue in fiscal 2024, an additional 26 % 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 months ended November 30, 2023 and 2022, respectively.

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and six months ended February 29, 2024 and February 28, 2023, respectively.

Contract Balances

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.

Deferred transition revenues were $ 647,020 and $ 653,954 as of February 29, 2024 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 $ 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.

Deferred transition costs were $ 815,715 and $ 851,972 as of February 29, 2024 and August 31, 2023, respectively, and are included in Deferred contract costs.

Generally, deferred transition costs are recoverable under the contract in the event of early termination and are monitored regularly for impairment.

Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets.

The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and Contract liabilities (Deferred revenues):

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

As of February 29, 2024 As of August 31, 2023

Receivables $ 11,374,099 $ 10,690,713

4 unchanged sentences

Deferred revenues (non-current) 647,020 653,954

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.

Changes in the contract asset and liability balances during the six months ended February 29, 2024 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three and six months ended February 29, 2024 that were included in Deferred revenues as of November 30, 2023 and August 31, 2023 were $ 2.5 billion and $ 3.6 billion, respectively.

Revenues recognized during the three and six months ended February 28, 2023 that were included in Deferred revenues as of November 30, 2022 and August 31, 2022 were $ 2.5 billion and $ 3.3 billion, respectively.

Notes To Consolidated Financial Statements

4 unchanged sentences

Basic and diluted earnings per share are calculated as follows:

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

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

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Foreign currency translation

22 unchanged sentences

Accumulated other comprehensive loss $ ( 1,657,140 ) $ ( 1,944,270 ) $ ( 1,657,140 ) $ ( 1,944,270 )

(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.

(1) As of February 29, 2024, $ 54,434 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 three months ended November 30, 2023, we completed individually immaterial acquisitions for total consideration of $ 781,525 , net of cash acquired.

During the six months ended February 29, 2024, we completed individually immaterial acquisitions for total consideration of $ 2,900,194 , net of cash acquired.

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

3 unchanged sentences

Adjustments Foreign

Translation November 30, 2023

Translation February 29, 2024

North America $ 8,876,050 $ 1,650,701 $ 1,885 $ 10,528,636

7 unchanged sentences

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

August 31, 2023 November 30, 2023

August 31, 2023 February 29, 2024

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 $ 3,854,012 $ ( 1,401,453 ) $ 2,452,559

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:

Total amortization related to our intangible assets was $ 119,625 and $ 231,256 for the three and six months ended February 29, 2024, respectively.

Total amortization related to our intangible assets was $ 120,212 and $ 229,281 for the three and six months ended February 28, 2023, respectively.

Estimated future amortization related to intangible assets held as of February 29, 2024 is as follows:

Fiscal Year Estimated Amortization

7 unchanged sentences

Shareholders’ Equity

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

Our dividend activity during the six months ended February 29, 2024 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, 2024 1.29 January 18, 2024 811,766 January 16, 2024 812 812,578

Total Dividends $ 1,620,991 $ 1,643 $ 1,622,634

The payment of cash dividends includes the net effect of $ 67,126 of additional restricted stock units being issued as a part of our share plans, which resulted in 191,319 restricted share units being issued.

Subsequent Event

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.

On March 20, 2024, 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 April 11, 2024 payable on May 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 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.

For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and six months ended February 29, 2024 and February 28, 2023, 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 $ 20,280 and $ 29,691 for the three months ended November 30, 2023 and 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 $ 26,056 and $ 46,336 for the three and six months ended February 29, 2024, respectively, and net gains of $ 7,431 and net losses of $ 22,260 for the three and six months ended February 28, 2023, 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:

November 30, 2023 August 31, 2023

February 29, 2024 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:

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Net derivative assets $ 109,330 $ 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 November 30, 2023 and 2022 were 23.2 % and 23.3 %, respectively.

Our effective tax rates for the three months ended February 29, 2024 and February 28, 2023 were 18.4 % and 20.4 %, respectively.

The lower effective tax rate for the three months ended February 29, 2024 was primarily due to higher tax benefits from share-based payments.

Our effective tax rates for the six months ended February 29, 2024 and February 28, 2023 were 21.1 % and 22.0 %, 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 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.

As of February 29, 2024 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 2,008,000 and $ 1,793,000 , respectively, of which all but approximately $ 60,000 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 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.

As of February 29, 2024 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,291,091 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 November 30, 2023, we or our present personnel had been named as a defendant in various litigation matters.

As of February 29, 2024, 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.

9 unchanged sentences

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 are appealing the district court's decision.

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

2 unchanged sentences

ACCENTURE FORM 10-Q

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

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 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.

7 unchanged sentences

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

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Geographic Markets

14 unchanged sentences

Operating Income

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Geographic Markets

58 unchanged sentences

There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business.

These conditions have slowed the pace and level of client spending for smaller contracts with a shorter duration, especially for our consulting services.

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

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.

These conditions have slowed the pace and level of client spending, particularly for smaller contracts with a shorter duration and for our consulting services.

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

We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $115 million and $244 million, respectively, in business optimization costs as discussed further in our Results of Operations.

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

• Revenues of $16.2 billion, representing 3% growth in U.S.

dollars and 1% growth in local currency;

• New bookings of $18.4 billion, an increase of 14% in U.S.

dollars and 12% in local currency;

• 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 $3.10, compared to $3.08 in the first quarter of fiscal 2023;

adjusted earnings per share increased 6% to $3.27;

• Revenues of $15.8 billion, flat with the second quarter of fiscal 2023 in both U.S.

dollars and local currency;

• New bookings of $21.6 billion, a decrease of 2% in both U.S.

dollars and local currency;

• Operating margin of 13.0%, compared to 12.3% in the second quarter of fiscal 2023;

adjusted operating margin was 13.7% compared to 13.8% in the second quarter of fiscal 2023;

• Diluted earnings per share of $2.63, a 10% increase over $2.39 in the second quarter of fiscal 2023;

adjusted earnings per share increased 3% to $2.77 compared to $2.69 in the second quarter of fiscal 2023;

• Cash returned to shareholders of $2.1 billion, including share purchases of $1.3 billion and dividends of $813 million.

1 unchanged sentence

Dollars Percent

Currency Percent of Revenues

for the Three Months Ended

(in billions of U.S.

dollars) November 30, 2023 November 30, 2022

dollars) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Geographic Markets (1) North America $ 7.4 $ 7.4 — % — % 47 % 47 %

16 unchanged sentences

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