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Item 1. Financial Statements

2024-12-19 compared with 2024-06-20 · 140 added, 188 removed, 537 unchanged (38% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

May 31, 2024 and August 31, 2023

May 31, 2024 August 31, 2023

November 30, 2024 and August 31, 2024

November 30, 2024 August 31, 2024

ASSETS (Unaudited)

38 unchanged sentences

SHAREHOLDERS’ EQUITY:

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

Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2024 and August 31, 2024

Class A ordinary shares, par value $ 0.0000225 per share, 20,000,000,000 shares authorized, 674,278,898 and 672,484,852 shares issued as of November 30, 2024 and August 31, 2024, respectively

Class X ordinary shares, par value $ 0.0000225 per share, 1,000,000,000 shares authorized, 307,754 shares issued and outstanding as of November 30, 2024 and August 31, 2024

Restricted share units 2,777,423 2,614,608

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Treasury shares, at cost:

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

Ordinary, 40,000 shares as of November 30, 2024 and August 31, 2024;

Class A ordinary, 49,248,770 and 47,204,565 shares as of November 30, 2024 and August 31, 2024, respectively

( 11,304,512 ) ( 10,564,572 )

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Consolidated Income Statements

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

For the Three Months Ended November 30, 2024 and 2023

Revenues $ 17,689,545 $ 16,224,303

28 unchanged sentences

Consolidated Statements of Comprehensive Income

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

For the Three Months Ended November 30, 2024 and 2023

NET INCOME $ 2,316,190 $ 2,009,981

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Consolidated Shareholders’ Equity Statement

For the Three Months Ended May 31, 2024

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 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

Other comprehensive income (loss) ( 98,104 ) ( 98,104 ) ( 2,273 ) ( 100,377 )

Purchases of Class A shares 1,153 ( 1,374,593 ) ( 4,289 ) ( 1,373,440 ) ( 1,153 ) ( 1,374,593 )

Share-based compensation expense 411,120 62,811 473,931 473,931

Purchases/redemptions of Accenture Canada Holdings Inc.

exchangeable shares and Class X shares ( 6 ) ( 8,649 ) ( 8,649 ) ( 8,649 )

Issuances of Class A shares for employee share programs 1,543 ( 62,289 ) 400,310 167,563 540 ( 1,474 ) 504,110 406 504,516

Dividends 29,953 ( 840,122 ) ( 810,169 ) ( 807 ) ( 810,976 )

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

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.

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, 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 Nine Months Ended May 31, 2024

For the Three Months Ended November 30, 2024

Shares Class A

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Other, net ( 8,373 ) ( 8,373 ) 7,133 ( 1,240 )

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

Balance as of November 30, 2024 $ 57 40 $ 15 674,279 $ — 308 $ 2,777,423 $ 15,364,338 $ ( 11,304,512 ) ( 49,289 ) $ 24,402,568 $ ( 2,049,394 ) $ 29,190,495 $ 911,928 $ 30,102,423

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, 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.

3 unchanged sentences

Consolidated Cash Flows Statements

For the Nine Months Ended May 31, 2024 and 2023

May 31, 2024 May 31, 2023

For the Three Months Ended November 30, 2024 and 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

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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, 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 months ended November 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2025.

Allowance for Credit Losses—Client Receivables and Contract Assets

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.

As of November 30, 2024 and August 31, 2024, the total allowance for credit losses recorded for client receivables and contract assets was $ 27,354 and $ 27,561 , respectively.

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

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments.

Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).

Non-current investments consist of equity securities in privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).

Our non-current investments are as follows:

May 31, 2024 August 31, 2023

November 30, 2024 August 31, 2024

Equity method investments $ 127,776 $ 128,634

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Depreciation and Amortization

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

As of November 30, 2024 and August 31, 2024, total accumulated depreciation was $ 2,752,886 and $ 2,713,855 , 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, 2024 and 2023, respectively.

Three Months Ended

November 30, 2024 November 30, 2023

Depreciation $ 133,099 $ 133,245

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Total depreciation, amortization and other $ 569,340 $ 521,400

Business Optimization

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 $ 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 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

EMEA (1) 74,937 167,205 231,302 208,165

Growth Markets (1) 6,160 83,319 54,250 109,769

Total business optimization costs $ 77,420 $ 346,873 $ 332,493 $ 591,263

(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.

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

New Accounting Pronouncements

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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.

This ASU will impact our income tax disclosures, but not our financial position or results of operations.

On November 4, 2024, the FASB issued ASU No.

2024-03, Disaggregation of Income Statement Expenses, which requires entities to disclose specified information about certain expenses in the notes to the financial statements, including employee compensation.

The ASU will be effective beginning with our annual fiscal 2028 financial statements.

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

Notes To Consolidated Financial Statements

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Remaining Performance Obligations

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

We had remaining performance obligations of approximately $ 29 billion and $ 30 billion as of November 30, 2024 and August 31, 2024, respectively.

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

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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 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.

We expect to recognize approximately 58 % of our remaining performance obligations as of November 30, 2024 as revenue in fiscal 2025, an additional 20 % in fiscal 2026, 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, 2024 and 2023.

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three months ended November 30, 2024 and 2023.

Contract Balances

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.

Deferred transition revenues were $ 623,750 and $ 641,091 as of November 30, 2024 and August 31, 2024, 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 $ 834,045 and $ 851,972 as of May 31, 2024 and August 31, 2023, respectively, and are included in Deferred contract costs.

Deferred transition costs were $ 893,898 and $ 862,140 as of November 30, 2024 and August 31, 2024, 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 May 31, 2024 As of August 31, 2023

November 30, 2024 August 31, 2024

Receivables $ 12,590,544 $ 11,873,442

4 unchanged sentences

Deferred revenues (non-current) 623,750 641,091

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.

Changes in the contract asset and liability balances during the three months ended November 30, 2024 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three months ended November 30, 2024 that were included in Deferred revenues as of August 31, 2024 were $ 2.8 billion.

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.

Notes To Consolidated Financial Statements

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Basic and diluted earnings per share are calculated as follows:

Three Months Ended Nine Months Ended

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

Three Months Ended

November 30, 2024 November 30, 2023

Basic earnings per share

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

Three Months Ended

November 30, 2024 November 30, 2023

Foreign currency translation

7 unchanged sentences

Beginning balance ( 254,172 ) ( 226,503 )

Reclassifications into net periodic pension and

post-retirement expense 6,529 8,712 57,337 143,602

Reclassifications into net periodic pension and post-retirement expense ( 17,680 ) 44,294

Income tax benefit (expense) 1,907 ( 7,865 )

11 unchanged sentences

Accumulated other comprehensive loss $ ( 2,049,394 ) $ ( 1,627,215 )

(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.

(1) As of November 30, 2024, $ 25,149 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, 2024, we completed individually immaterial acquisitions for total consideration of $ 5,229,853 , net of cash acquired.

During the three months ended November 30, 2024, we completed individually immaterial acquisitions for total consideration of $ 184,871 , net of cash acquired.

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

Goodwill and Intangible Assets

The changes in the carrying amount of goodwill by reportable operating segment are as follows:

The changes in the carrying amount of goodwill by reportable segment are as follows:

2024 Additions/

Adjustments Foreign

Translation May 31, 2024

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

Translation November 30, 2024

Americas (1) $ 11,960,650 $ 31,993 $ ( 33,777 ) $ 11,958,866

EMEA 7,341,686 109,591 ( 307,796 ) 7,143,481

Growth Markets (1) 1,544,804 207,147 ( 29,121 ) 1,722,830

Asia Pacific (1) 1,817,843 842 ( 52,121 ) 1,766,564

Total $ 21,120,179 $ 142,426 $ ( 393,694 ) $ 20,868,911

(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America.

With this change, North America became the Americas market and Growth Markets became the Asia Pacific market.

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

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

August 31, 2023 May 31, 2024

August 31, 2024 November 30, 2024

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

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Total $ 4,530,739 $ ( 1,626,708 ) $ 2,904,031 $ 4,462,992 $ ( 1,722,402 ) $ 2,740,590

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:

Total amortization related to our intangible assets was $ 160,214 and $ 111,631 for the three months ended November 30, 2024 and 2023, respectively.

Estimated future amortization related to intangible assets held as of November 30, 2024 is as follows:

Fiscal Year Estimated Amortization

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Shareholders’ Equity

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

Our dividend activity during the three months ended November 30, 2024 is as follows:

Share Accenture plc Class A

3 unchanged sentences

November 15, 2024 $ 1.48 October 10, 2024 $ 924,675 October 9, 2024 $ 883 $ 925,558

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

The payment of cash dividends includes the net effect of $ 33,583 of additional restricted stock units being issued as a part of our share plans, which resulted in 93,129 restricted share units being issued.

Subsequent Event

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.

On December 18, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $ 1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on January 16, 2025 payable on February 14, 2025.

Notes To Consolidated Financial Statements

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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, 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.

For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 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 $ 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.

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 $ 4,256 and $ 20,280 for the three months ended November 30, 2024 and 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:

May 31, 2024 August 31, 2023

November 30, 2024 August 31, 2024

Cash Flow Hedges

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

May 31, 2024 August 31, 2023

November 30, 2024 August 31, 2024

Net derivative assets $ 83,615 $ 91,127

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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:

On October 4, 2024, Accenture Capital Inc.

(“Accenture Capital”), a wholly owned finance subsidiary of Accenture plc, issued $ 5 billion aggregate principal amount of senior unsecured notes.

Net proceeds from the offering are being used for general corporate purposes, including repayment of outstanding commercial paper borrowings.

Interest on the senior unsecured notes is payable semi-annually in arrears.

Accenture Capital may redeem the senior unsecured notes at any time in whole, or from time to time, in part at specified redemption prices.

Accenture plc and Accenture Capital are not subject to any financial covenants under the senior unsecured notes.

The following is a summary of total outstanding debt as of November 30, 2024 and August 31, 2024 , respectively:

November 30, 2024 August 31, 2024

Current portion of long-term debt and bank borrowings

Commercial paper (1) $ 99,446 $ 931,507

Other (2) 14,875 14,722

Total current portion of long-term debt and bank borrowings $ 114,321 $ 946,229

Long-term debt

Senior notes – 3.90 % due 2027

$ 1,100,000 $ —

Senior notes – 4.05 % due 2029

Senior notes – 4.25 % due 2031

Senior notes – 4.50 % due 2034

Total principal amount (3) $ 5,000,000 $ —

unamortized debt discount and issuance costs ( 37,998 ) —

Total carrying amount $ 4,962,002 $ —

Other (2) 77,458 78,628

Total long-term debt $ 5,039,460 $ 78,628

(1) The carrying amounts of the commercial paper as of November 30, 2024 and August 31, 2024 include the remaining principal outstanding of $ 100,000 and $ 935,000 , respectively, net of total unamortized discounts of $ 554 and $ 3,493 , respectively.

The weighted-average effective interest rate for the commercial paper was 4.6 % and 5.4 % as of November 30, 2024 and August 31, 2024, respectively.

(2) Amounts primarily include finance lease liabilities.

(3) The total estimated fair value of our senior notes was $ 4.9 billion as of November 30, 2024.

The fair value was determined based on quoted prices as of the last trading day of the first quarter of fiscal 2025 and is classified as Level 1 within the fair value hierarchy.

As of November 30, 2024, future principal payments for total outstanding debt, excluding finance leases, are summarized as follows:

Fiscal Year Amount

Remainder of 2025 $ 100,000

2028 1,100,000

Thereafter 3,900,000

Total $ 5,100,000

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

As of November 30, 2024, we had the following borrowing facilities:

Credit Facilities

3 unchanged sentences

Total $ 7,699,276

(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.

(1) This facility, which matures on May 14, 2029, provides unsecured, revolving borrowing capacity for general corporate 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.

We continue to be 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.

1 unchanged sentence

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.

As of November 30, 2024 and August 31, 2024 , 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.

As of November 30, 2024 and August 31, 2024 , we had no borrowings under these various facilities.

We had an aggregate of $ 1,242,317 and $ 1,269,178 of letters of credit outstanding and $ 100,000 and $ 935,000 (excluding unamortized discounts) of commercial paper outstanding as of November 30, 2024 and August 31, 2024, respectively.

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

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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, 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.

Our effective tax rates for the three months ended November 30, 2024 and 2023 were 21.6 % and 23.2 %, respectively.

The lower effective tax rate for the three months ended November 30, 2024 was primarily due to higher benefits from adjustments to prior year tax liabilities.

Notes To Consolidated Financial Statements

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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, 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.

As of November 30, 2024 and August 31, 2024, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $ 2,181,000 and $ 2,370,000 , respectively, of which all but approximately $ 59,000 and $ 61,000 , 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, 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.

As of November 30, 2024 and August 31, 2024, we have issued or provided guarantees in the form of letters of credit and surety bonds of $ 1,692,529 ($ 1,514,492 net of recourse provisions) and $ 1,758,783 ($ 1,609,046 net of recourse provisions) 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.

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Legal Contingencies

As of May 31, 2024, we or our present personnel had been named as a defendant in various litigation matters.

As of November 30, 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.

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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”.

This matter could subject us to adverse consequences, including civil and criminal penalties, including under the civil U.S.

False Claims Act and/or other statutes, and administrative sanctions, such as termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with agencies of the U.S.

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.

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Segment Reporting

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

Our reportable segments are our three geographic markets, which are the Americas, EMEA and Asia Pacific.

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

Three Months Ended Nine Months Ended

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

Three Months Ended

November 30, 2024 November 30, 2023

Geographic Markets

North America (1) $ 7,834,206 $ 7,720,903 $ 22,773,920 $ 22,741,597

Americas (1) $ 8,733,095 $ 8,026,972

EMEA 6,411,952 5,803,642

Growth Markets (1) (2) 2,855,998 2,971,575 8,537,609 8,645,260

Asia Pacific (1) 2,544,498 2,393,689

Total Revenues $ 17,689,545 $ 16,224,303

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Operating Income

Three Months Ended Nine Months Ended

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

Three Months Ended

November 30, 2024 November 30, 2023

Geographic Markets

North America (1) $ 1,365,072 $ 1,241,245 $ 3,682,156 $ 3,374,986

Americas (1) $ 1,377,234 $ 1,292,981

EMEA 1,035,977 823,601

Growth Markets (1) (2) 515,934 447,713 1,457,551 1,509,367

Asia Pacific (1) 535,266 448,305

Total Operating Income $ 2,948,477 $ 2,564,887

(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.

(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America.

With this change, North America became the Americas market and Growth Markets became the Asia Pacific market.

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

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Business Risks

• Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity.

• Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and geopolitical conditions and the effects of these conditions on our clients’ businesses and levels of business activity.

• Our business depends on generating and maintaining client demand for our services and solutions, including through the adaptation and expansion of our services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.

• Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation or give rise to legal or regulatory action.

• If we are unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected.

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Financial Risks

• Our profitability could materially suffer if we are unable to obtain favorable pricing for our services and solutions, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels.

• Our profitability could materially suffer due to pricing pressure, if we are unable to remain competitive, if our cost-management strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels.

• Changes in our level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on our effective tax rate, results of operations, cash flows and financial condition.

• Our results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates.

• Our debt obligations could adversely affect our business and financial condition.

• Changes to accounting standards or in the estimates and assumptions we make in connection with the preparation of our consolidated financial statements could adversely affect our financial results.

Operational Risks

• As a result of our geographically diverse operations and strategy to continue to grow in key markets around the world, we are more susceptible to certain risks.

• As a result of our geographically diverse operations and our strategy to continue to grow in our key markets around the world, we are more susceptible to certain risks.

• If we are unable to manage the organizational challenges associated with our size, we might be unable to achieve our business objectives.

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We serve clients in three geographic markets:

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

the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.

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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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.

Key metrics for the first quarter of fiscal 2025 compared to the first quarter of fiscal 2024 are included below.

We have presented operating income, operating margin, effective tax rate and diluted earnings per share for the first quarter of fiscal 2024 on a non-GAAP or “adjusted” basis to exclude the impact of $140 million in business optimization costs recorded during the quarter, as discussed further in our Results of Operations.

• Revenues of $17.7 billion, an increase of 9% in U.S.

dollars and 8% 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.

• New bookings of $18.7 billion, an increase of 1% in both U.S.

dollars and local currency;

• Operating margin of 16.7%, compared to operating margin of 15.8% and adjusted operating margin of 16.7% in the first quarter of fiscal 2024;

• Diluted earnings per share of $3.59, a 16% increase over diluted earnings per share of $3.10 and a 10% increase over adjusted earnings per share of $3.27 in the first quarter of fiscal 2024;

• Cash returned to shareholders of $1.8 billion, including dividends of $926 million and share purchases of $898 million.

Three Months Ended Percent

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(in billions of U.S.

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 %

dollars) November 30, 2024 November 30, 2023 November 30, 2024 November 30, 2023

Geographic Markets Americas (1) $ 8.7 $ 8.0 9 % 11 % 49 % 49 %

EMEA 6.4 5.8 10 6 36 36

Growth Markets (1) 2.9 3.0 (4) 8 17 18

Asia Pacific (1) 2.5 2.4 6 4 14 15

Total Revenues $ 17.7 $ 16.2 9 % 8 % 100 % 100 %

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Total Revenues $ 17.7 $ 16.2 9 % 8 % 100 % 100 %

Amounts in table may not total due to rounding.

(1) During the first quarter of fiscal 2025, our Latin America market unit moved from Growth Markets to North America.

With this change, North America became the Americas market and Growth Markets became the Asia Pacific market.

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

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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