What changed in this filing

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Item 1. Financial Statements

2024-06-20 compared with 2024-03-21 · 127 added, 91 removed, 598 unchanged (27% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

February 29, 2024 and August 31, 2023

February 29, 2024 August 31, 2023

May 31, 2024 and August 31, 2023

May 31, 2024 August 31, 2023

ASSETS (Unaudited)

13 unchanged sentences

Deferred tax assets 4,074,545 4,154,878

Intangibles 2,749,965 2,072,957

Other non-current assets 1,175,070 738,641

22 unchanged sentences

SHAREHOLDERS’ EQUITY:

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

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

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 671,948,015 and 664,616,285 shares issued as of May 31, 2024 and August 31, 2023, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 308,754 and 325,438 shares issued and outstanding as of May 31, 2024 and August 31, 2023, respectively

Restricted share units 2,242,122 2,403,374

1 unchanged sentence

Treasury shares, at cost:

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

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

Class A ordinary, 45,326,443 and 36,351,137 shares as of May 31, 2024 and August 31, 2023, respectively

( 9,997,842 ) ( 7,062,512 )

11 unchanged sentences

Consolidated Income Statements

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

For the Three and Nine Months Ended May 31, 2024 and 2023

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Revenues $ 16,466,828 $ 16,564,585 $ 48,490,645 $ 48,126,545

28 unchanged sentences

Consolidated Statements of Comprehensive Income

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

For the Three and Nine Months Ended May 31, 2024 and 2023

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

NET INCOME $ 1,981,348 $ 2,048,335 $ 5,700,531 $ 5,595,318

15 unchanged sentences

Consolidated Shareholders’ Equity Statement

For the Three Months Ended February 29, 2024

For the Three Months Ended May 31, 2024

Shares Class A

10 unchanged sentences

Shareholders’

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

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

Net income 1,932,183 1,932,183 49,165 1,981,348

7 unchanged sentences

Other, net 1,774 1,774 ( 3,656 ) ( 1,882 )

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

Balance as of May 31, 2024 $ 57 40 $ 15 671,948 $ — 309 $ 2,242,122 $ 15,013,157 $ ( 9,997,842 ) ( 45,366 ) $ 22,242,224 $ ( 1,755,244 ) $ 27,744,489 $ 875,253 $ 28,619,742

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 February 28, 2023

For the Three Months Ended May 31, 2023

Shares Class A

10 unchanged sentences

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

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

7 unchanged sentences

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

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

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.

4 unchanged sentences

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 29, 2024

For the Nine Months Ended May 31, 2024

Shares Class A

20 unchanged sentences

Other, net 2,266 2,266 ( 3,159 ) ( 893 )

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

Balance as of May 31, 2024 $ 57 40 $ 15 671,948 $ — 309 $ 2,242,122 $ 15,013,157 $ ( 9,997,842 ) ( 45,366 ) $ 22,242,224 $ ( 1,755,244 ) $ 27,744,489 $ 875,253 $ 28,619,742

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

4 unchanged sentences

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 28, 2023

For the Nine Months Ended May 31, 2023

Shares Class A

21 unchanged sentences

Other, net 6,781 6,781 ( 10,332 ) ( 3,551 )

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

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.

3 unchanged sentences

Consolidated Cash Flows Statements

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

February 29, 2024 February 28, 2023

For the Nine Months Ended May 31, 2024 and 2023

May 31, 2024 May 31, 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

23 unchanged sentences

Purchases of shares ( 3,896,216 ) ( 3,325,850 )

Proceeds from (repayments of) debt, net ( 12,196 ) ( 408 )

Proceeds from debt 1,599,033 —

Repayments of debt ( 100,000 ) —

Cash dividends paid ( 2,433,610 ) ( 2,121,331 )

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 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.

The results of operations for the three and nine months ended May 31, 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 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.

As of May 31, 2024 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $ 25,155 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:

February 29, 2024 August 31, 2023

May 31, 2024 August 31, 2023

Equity method investments $ 22,202 $ 23,985

8 unchanged sentences

Depreciation and Amortization

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

As of May 31, 2024 and August 31, 2023, total accumulated depreciation was $ 2,797,314 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 nine months ended May 31, 2024 and 2023, respectively.

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Depreciation $ 138,132 $ 165,053 $ 406,374 $ 446,844

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 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

Total b usiness optimization costs by reportable operating segment for the three and nine months ended May 31, 2024 and 2023, respectively, were as follows:

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

North America $ ( 3,677 ) $ 96,349 $ 46,941 $ 273,329

21 unchanged sentences

Remaining Performance Obligations

We had remaining performance obligations of approximately $ 27 billion and $ 26 billion as of February 29, 2024 and August 31, 2023, respectively.

We had remaining performance obligations of approximately $ 29 billion and $ 26 billion as of May 31, 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 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.

We expect to recognize approximately 35 % of our remaining performance obligations as of May 31, 2024 as revenue in fiscal 2024, an additional 37 % 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 six months ended February 29, 2024 and February 28, 2023, respectively.

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, 2024 and 2023.

Contract Balances

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.

Deferred transition revenues were $ 621,251 and $ 653,954 as of May 31, 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 $ 815,715 and $ 851,972 as of February 29, 2024 and August 31, 2023, respectively, and are included in Deferred contract costs.

Deferred transition costs were $ 834,045 and $ 851,972 as of May 31, 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.

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 February 29, 2024 As of August 31, 2023

As of May 31, 2024 As of August 31, 2023

Receivables $ 11,336,441 $ 10,690,713

4 unchanged sentences

Deferred revenues (non-current) 621,251 653,954

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.

Changes in the contract asset and liability balances during the nine months ended May 31, 2024 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, 2024 that were included in Deferred revenues as of February 29, 2024 and August 31, 2023 were $ 2.6 billion and $ 3.9 billion, respectively.

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.

Notes To Consolidated Financial Statements

4 unchanged sentences

Basic and diluted earnings per share are calculated as follows:

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Basic earnings per share

16 unchanged sentences

The income effect does not take into account “Net income attributable to noncontrolling interests - other,” since those shares are not redeemable or exchangeable for Accenture plc Class A ordinary shares.

(2) The weighted average diluted shares outstanding for the calculation of diluted earnings per share excludes an immaterial amount of shares issuable upon the vesting of restricted stock units because their effects were antidilutive.

Notes To Consolidated Financial Statements

4 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 Six Months Ended

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

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Foreign currency translation

22 unchanged sentences

Accumulated other comprehensive loss $ ( 1,755,244 ) $ ( 1,900,923 ) $ ( 1,755,244 ) $ ( 1,900,923 )

(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.

(1) As of May 31, 2024, $ 25,093 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 six months ended February 29, 2024, we completed individually immaterial acquisitions for total consideration of $ 2,900,194 , net of cash acquired.

During the nine months ended May 31, 2024, we completed individually immaterial acquisitions for total consideration of $ 5,229,853 , net of cash acquired.

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

3 unchanged sentences

Adjustments Foreign

Translation February 29, 2024

Translation May 31, 2024

North America $ 8,876,050 $ 2,587,017 $ ( 1,757 ) $ 11,461,310

7 unchanged sentences

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

August 31, 2023 February 29, 2024

August 31, 2023 May 31, 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 $ 4,251,249 $ ( 1,501,284 ) $ 2,749,965

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:

Total amortization related to our intangible assets was $ 133,097 and $ 364,353 for the three and nine months ended May 31, 2024, respectively.

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

Estimated future amortization related to intangible assets held as of May 31, 2024 is as follows:

Fiscal Year Estimated Amortization

7 unchanged sentences

Shareholders’ Equity

Our dividend activity during the six months ended February 29, 2024 is as follows:

Our dividend activity during the nine months ended May 31, 2024 is as follows:

Share Accenture plc Class A

4 unchanged sentences

February 15, 2024 1.29 January 18, 2024 811,766 January 16, 2024 812 812,578

May 15, 2024 1.29 April 11, 2024 810,169 April 9, 2024 807 810,976

Total Dividends $ 2,431,160 $ 2,450 $ 2,433,610

1 unchanged sentence

Subsequent Event

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.

On June 19, 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 July 11, 2024 payable on August 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 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.

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, 2024 and 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 $ 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.

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 $ 57,232 and $ 103,568 for the three and nine months ended May 31, 2024, respectively, and net losses of $ 72,091 and $ 94,351 for the three and nine months ended May 31, 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:

February 29, 2024 August 31, 2023

May 31, 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:

February 29, 2024 August 31, 2023

May 31, 2024 August 31, 2023

Net derivative assets $ 74,283 $ 50,528

5 unchanged sentences

ACCENTURE FORM 10-Q

Borrowings and Indebtedness

As of May 31, 2024 and August 31, 2023 , we had total outstanding debt of $ 1,678,903 an d $ 147,903 , respectively.

As of May 31, 2024, we had the following borrowing facilities:

Credit Facilities

Syndicated loan facility (1) $ 5,500,000

Separate, uncommitted, unsecured multicurrency revolving credit facilities (2) 1,945,719

Local guaranteed and non-guaranteed lines of credit (3) 275,676

Total $ 7,721,395

(1) On May 14, 2024, we replaced our $ 3,000,000 syndicated 5-year credit facility with a new $ 5,500,000 syndicated credit facility maturing on May 14, 2029.

This facility provides unsecured, revolving borrowing capacity for general corporate capital purposes, including the issuance of letters of credit and short-term commercial paper.

Borrowings under this facility will accrue interest at the applicable risk-free rate plus a spread.

We are in compliance with relevant covenant terms.

The facility is subject to annual commitment fees.

As of May 31, 2024, we had $ 1,606,900 of commercial paper outstanding (excluding unamortized discounts), and backed by this facility, with a weighted-average effective interest rate of 5.4 %.

As of August 31, 2023, we had $ 100,000 of commercial paper outstanding backed by our $ 3,000,000 syndicated 5-year credit facility, with a weighted-average effective interest rate of 5.4 %.

(2) We maintain separate, uncommitted and unsecured multicurrency revolving credit facilities.

These facilities provide local currency financing for the majority of our operations.

Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets.

As of May 31, 2024 and August 31, 2023, we had no borrowings under these facilities.

(3) We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities.

As of May 31, 2024 and August 31, 2023, we had no borrowings under these various facilities.

We had an aggregate of $ 1,172,422 and $ 1,080,819 of letters of credit outstanding and $ 1,606,900 (excluding unamortized discounts) and $ 100,000 of commercial paper outstanding as of May 31, 2024 and August 31, 2023, respectively.

The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.

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 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.

Our effective tax rates for the three months ended May 31, 2024 and 2023 were 25.4 % and 22.2 %, respectively.

The higher effective tax rate for the three months ended May 31, 2024 was primarily due to the tax impact in the prior year from an investment gain and higher expense from adjustments to prior year tax liabilities.

Our effective tax rates for the nine months ended May 31, 2024 and 2023 were 22.6 % and 22.1 %, respectively.

The higher effective tax rate for the nine months ended May 31, 2024 was primarily due to the tax impact in the prior year from an investment gain.

Notes To Consolidated Financial Statements

(In thousands of U.S.

dollars, except share and per share amounts or as otherwise disclosed)

ACCENTURE FORM 10-Q

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 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.

As of May 31, 2024 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 2,192,000 and $ 1,793,000 , respectively, of which all but approximately $ 59,000 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 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.

As of May 31, 2024 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,654,531 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 February 29, 2024, we or our present personnel had been named as a defendant in various litigation matters.

As of May 31, 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.

12 unchanged sentences

At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition.

Notes To Consolidated Financial Statements

(In thousands of U.S.

dollars, except share and per share amounts or as otherwise disclosed)

ACCENTURE FORM 10-Q

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

5 unchanged sentences

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.

Notes To Consolidated Financial Statements

(In thousands of U.S.

dollars, except share and per share amounts or as otherwise disclosed)

ACCENTURE FORM 10-Q

Segment Reporting

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 Six Months Ended

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

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Geographic Markets

14 unchanged sentences

Operating Income

Three Months Ended Six Months Ended

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

Three Months Ended Nine Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Geographic Markets

3 unchanged sentences

Total Operating Income $ 2,630,865 $ 2,359,288 $ 7,242,179 $ 6,896,969

(1) As announced on June 11, 2024, effective September 1, 2024, our Latin America market unit will move from Growth Markets to North America.

With this change, North America will become The Americas market and Growth Markets will become the Asia Pacific market.

(2) 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 have been reclassified to conform with the current period presentation.

ACCENTURE FORM 10-Q

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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.

As announced on June 11, 2024, effective September 1, 2024, our Latin America market unit will move from Growth Markets to North America.

With this change, North America will become The Americas market and Growth Markets will become the Asia Pacific market.

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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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 $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;

Clients continue to prioritize large-scale transformations, which convert to revenue over a longer period.

Key metrics for the third quarter of fiscal 2024 compared to the third 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 $77 million and $347 million, respectively, in business optimization costs recorded during the third quarter of fiscal 2024 and 2023 and, with respect to effective tax rate and diluted earnings per share, the impact of a $253 million investment gain related to our investment in Duck Creek Technologies recorded during the third quarter of fiscal 2023 as discussed further in our Results of Operations.

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

• Revenues of $16.5 billion, a decrease of 1% in U.S.

dollars and an increase of 1% in local currency;

• New bookings of $21.1 billion, an increase of 22% in U.S.

dollars and 26% in local currency;

• Operating margin of 16.0%, compared to 14.2% in the third quarter of fiscal 2023;

adjusted operating margin was 16.4% compared to 16.3% in the third quarter of fiscal 2023;

• Diluted earnings per share of $3.04, a 3% decrease from $3.15 in the third quarter of fiscal 2023;

adjusted earnings per share decreased 2% to $3.13 compared to $3.19 in the third quarter of fiscal 2023;

• Cash returned to shareholders of $2.2 billion, including share purchases of $1.4 billion and dividends of $811 million.

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(in billions of U.S.

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

dollars) May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Geographic Markets North America $ 7.8 $ 7.7 1 % 1 % 48 % 47 %

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Total Revenues $ 16.5 $ 16.6 (1) % 1 % 100 % 100 %

Amounts in table may not total due to rounding.

(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.

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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