Item 16. Form 10-K Summary

Not applicable.

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ACCENTURE 2023 FORM 10-K						Signatures			54

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf on October 12, 2023 by the undersigned, thereunto duly authorized.

ACCENTURE PLC
By:			/s/ JULIE SWEET
			Name: Julie Sweet Title: Chief Executive Officer

Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Julie Sweet, KC McClure and Joel Unruch, and each of them, as his or her true and lawful attorneys-in-fact and agents, with power to act with or without the others and with full power of substitution and resubstitution, to do any and all acts and things and to execute any and all instruments which said attorneys and agents and each of them may deem necessary or desirable to enable the registrant to comply with the U.S. Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the U.S. Securities and Exchange Commission thereunder in connection with the registrant’s Annual Report on Form 10-K for the fiscal year ended August 31, 2023 (the “Annual Report”), including specifically, but without limiting the generality of the foregoing, power and authority to sign the name of the registrant and the name of the undersigned, individually and in his or her capacity as a director or officer of the registrant, to the Annual Report as filed with the U.S. Securities and Exchange Commission, to any and all amendments thereto, and to any and all instruments or documents filed as part thereof or in connection therewith; and each of the undersigned hereby ratifies and confirms all that said attorneys and agents and each of them shall do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on October 12, 2023 by the following persons on behalf of the registrant and in the capacities indicated.

Signature						Title
/s/ JULIE SWEET						Chief Executive Officer, Chair of the Board and Director
Julie Sweet						(principal executive officer)
/s/ KC MCCLURE						Chief Financial Officer
KC McClure						(principal financial officer)
/s/ MELISSA A. BURGUM						Chief Accounting Officer
Melissa A. Burgum						(principal accounting officer)
/s/ GILLES C. PÉLISSON						Lead Director
Gilles C. Pélisson
/s/ JAIME ARDILA						Director
Jaime Ardila

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ACCENTURE 2023 FORM 10-K						Signatures			55

/s/ ALAN JOPE						Director
Alan Jope
/s/ NANCY MCKINSTRY						Director
Nancy McKinstry
/s/ BETH E. MOONEY						Director
Beth E. Mooney
/s/ PAULA A. PRICE						Director
Paula A. Price
/s/ VENKATA S.M. RENDUCHINTALA						Director
Venkata S.M. Renduchintala
/s/ ARUN SARIN						Director
Arun Sarin
/s/ TRACEY T. TRAVIS						Director
Tracey T. Travis

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ACCENTURE 2023 FORM 10-K						Index to Consolidated Financial Statements			F-1

Accenture plc

Index to Consolidated Financial Statements

						Page
Report of Independent Registered Public Accounting Firm (Auditor Firm ID: 185)						F-2
Consolidated Financial Statements as of August 31, 2023 and 2022 and for the years ended August 31, 2023, 2022 and 2021:
Consolidated Balance Sheets						F-5
Consolidated Income Statements						F-6
Consolidated Statements of Comprehensive Income						F-7
Consolidated Shareholders’ Equity Statements						F-8
Consolidated Cash Flows Statements						F-11
Notes to Consolidated Financial Statements						F-12

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ACCENTURE 2023 FORM 10-K						Report of Independent Registered Public Accounting Firm			F-2

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Accenture plc:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying consolidated balance sheets of Accenture plc and subsidiaries (the Company) as of August 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the years in the three-year period ended August 31, 2023, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of August 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of August 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended August 31, 2023, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of August 31, 2023 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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ACCENTURE 2023 FORM 10-K						Report of Independent Registered Public Accounting Firm			F-3

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Estimated costs to complete certain technology integration consulting services contracts

As discussed in Notes 1 and 2 to the consolidated financial statements, revenues from contracts for technology integration consulting services where the Company designs, builds, and implements new or enhanced system applications and related processes for its clients are recognized over time since control of the system is transferred continuously to the client. Generally, revenue is recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations, which typically occurs over time periods ranging from six months to two years.

We identified the evaluation of estimated costs to complete certain technology integration consulting services contracts as a critical audit matter. Subjective auditor judgment was required to evaluate the estimate of costs to complete the contracts.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s process for estimating costs to complete technology integration consulting services contracts, including controls over the estimate of costs to complete the contracts. We tested the estimated costs to complete for certain technology integration consulting services contracts by evaluating:

• the scope of the work and timing of delivery for consistency with the underlying contractual terms;

• the estimated costs to complete in relation to progress toward satisfying the Company’s performance obligations, based on internal and customer-facing information;

• changes to estimated costs, if any, including the amount and timing of the change based on internal information or contractual changes; and

• actual costs incurred subsequent to the balance sheet date to assess if they were consistent with the estimate for that time period.

We evaluated the Company’s ability to estimate costs by comparing estimates developed at contract inception to actual costs ultimately incurred to satisfy the performance obligation.

Unrecognized tax benefits

As discussed in Note 11 to the consolidated financial statements, the Company has $1,744 million of unrecognized tax benefits as of August 31, 2023. As discussed in Note 1 to the consolidated financial statements, the Company recognizes tax positions when it believes such positions are more likely than not of being sustained if challenged. Recognized tax positions are measured at the largest amount of benefit greater than 50 percent likely of being realized. The Company uses estimates and assumptions in determining the amount of unrecognized tax benefits.

We identified the evaluation of the Company’s unrecognized tax benefits related to transfer pricing and certain other intercompany transactions as a critical audit matter. Complex auditor judgment was required in evaluating the Company’s interpretation of tax law and its analysis of the recognition and measurement of its tax positions.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s unrecognized tax benefits process, including controls over transfer pricing and certain other intercompany transactions. We involved tax and transfer pricing professionals with specialized skills and knowledge, who assisted in:

• evaluating the Company’s interpretation of tax laws and income tax consequences of intercompany transactions, including internal restructurings and intra-entity transfers of assets;

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ACCENTURE 2023 FORM 10-K						Report of Independent Registered Public Accounting Firm			F-4

• assessing transfer pricing studies for compliance with applicable laws and regulations;

• analyzing the Company’s tax positions, including the methodology over the measurement of unrecognized tax benefits related to transfer pricing;

• evaluating the Company’s determination of unrecognized tax benefits, including the associated effect in other jurisdictions; and

• inspecting settlements with applicable taxing authorities.

In addition, we evaluated the Company’s ability to estimate its unrecognized tax benefits by comparing historical unrecognized tax benefits to actual results upon the conclusion of examinations by applicable taxing authorities.

/s/ KPMG LLP

We have served as the Company’s auditor since 2002.

Chicago, Illinois

October 12, 2023

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE 2023 FORM 10-K						F-5

Consolidated Balance Sheets

August 31, 2023 and 2022

			August 31, 2023						August 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	9,045,032					$	7,889,833
Short-term investments			4,575						3,973
Receivables and contract assets			12,227,186						11,776,775
Other current assets			2,105,138						1,940,290
Total current assets			23,381,931						21,610,871
NON-CURRENT ASSETS:
Contract assets			106,994						46,844
Investments			197,443						317,972
Property and equipment, net			1,530,007						1,659,140
Lease assets			2,637,479						3,018,535
Goodwill			15,573,003						13,133,293
Deferred contract costs			851,972						807,940
Deferred tax assets			4,154,878						4,001,200
Other non-current assets			2,811,598						2,667,595
Total non-current assets			27,863,374						25,652,519
TOTAL ASSETS			$	51,245,305					$	47,263,390
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings			$	104,810					$	9,175
Accounts payable			2,491,173						2,559,485
Deferred revenues			4,907,152						4,478,048
Accrued payroll and related benefits			7,506,030						7,611,794
Income taxes payable			720,778						646,471
Lease liabilities			690,417						707,598
Other accrued liabilities			1,588,678						1,510,925
Total current liabilities			18,009,038						17,523,496
NON-CURRENT LIABILITIES:
Long-term debt			43,093						45,893
Deferred revenues			653,954						712,715
Retirement obligation			1,595,638						1,692,152
Deferred tax liabilities			395,280						318,584
Income taxes payable			1,313,971						1,198,139
Lease liabilities			2,310,714						2,563,090
Other non-current liabilities			465,024						462,233
Total non-current liabilities			6,777,674						6,992,806
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of August 31, 2023 and August 31, 2022			57						57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 664,616,285 and 664,561,282 shares issued as of August 31, 2023 and August 31, 2022, respectively			15						15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 325,438 and 500,837 shares issued and outstanding as of August 31, 2023 and August 31, 2022, respectively			—						—
Restricted share units			2,403,374						2,091,382
Additional paid-in capital			12,778,782						10,679,180
Treasury shares, at cost: Ordinary, 40,000 shares as of August 31, 2023 and August 31, 2022; Class A ordinary, 36,351,137 and 33,393,703 shares as of August 31, 2023 and August 31, 2022, respectively			(7,062,512)						(6,678,037)
Retained earnings			19,316,224						18,203,842
Accumulated other comprehensive loss			(1,743,101)						(2,190,342)
Total Accenture plc shareholders’ equity			25,692,839						22,106,097
Noncontrolling interests			765,754						640,991
Total shareholders’ equity			26,458,593						22,747,088
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	51,245,305					$	47,263,390

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts)
ACCENTURE 2023 FORM 10-K						F-6

Consolidated Income Statements

For the Years Ended August 31, 2023, 2022 and 2021

			2023						2022						2021
REVENUES:
Revenues			$	64,111,745					$	61,594,305					$	50,533,389
OPERATING EXPENSES:
Cost of services			43,380,138						41,892,766						34,169,261
Sales and marketing			6,582,629						6,108,401						5,288,237
General and administrative costs			4,275,943						4,225,957						3,454,362
Business optimization costs			1,063,146						—						—
Total operating expenses			55,301,856						52,227,124						42,911,860
OPERATING INCOME			8,809,889						9,367,181						7,621,529
Interest income			280,409						45,133						33,365
Interest expense			(47,525)						(47,320)						(59,492)
Other income (expense), net			96,559						(72,533)						165,714
Loss on disposition of Russia business			—						(96,294)						—
INCOME BEFORE INCOME TAXES			9,139,332						9,196,167						7,761,116
Income tax expense			2,135,802						2,207,207						1,770,571
NET INCOME			7,003,530						6,988,960						5,990,545
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.			(7,204)						(7,348)						(6,539)
Net income attributable to noncontrolling interests – other			(124,769)						(104,443)						(77,197)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC			$	6,871,557					$	6,877,169					$	5,906,809
Weighted average Class A ordinary shares:
Basic			630,608,186						632,762,710						634,745,073
Diluted			638,591,616						642,839,181						645,909,042
Earnings per Class A ordinary share:
Basic			$	10.90					$	10.87					$	9.31
Diluted			$	10.77					$	10.71					$	9.16
Cash dividends per share			$	4.48					$	3.88					$	3.52

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE 2023 FORM 10-K						F-7

Consolidated Statements of Comprehensive Income

For the Years Ended August 31, 2023, 2022 and 2021

			2023						2022						2021
NET INCOME			$	7,003,530					$	6,988,960					$	5,990,545
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation			341,688						(877,256)						35,215
Defined benefit plans			122,268						211,187						55,265
Cash flow hedges			(16,715)						(104,776)						51,811
Investments			—						—						49
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC			447,241						(770,845)						142,340
Other comprehensive income (loss) attributable to noncontrolling interests			8,489						(20,186)						1,117
COMPREHENSIVE INCOME			$	7,459,260					$	6,197,929					$	6,134,002
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC			$	7,318,798					$	6,106,324					$	6,049,149
Comprehensive income attributable to noncontrolling interests			140,462						91,605						84,853
COMPREHENSIVE INCOME			$	7,459,260					$	6,197,929					$	6,134,002

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE 2023 FORM 10-K						F-8

Consolidated Shareholders’ Equity Statements

For the Years Ended August 31, 2023, 2022 and 2021

			Ordinary Shares												Class A Ordinary Shares												Class X Ordinary Shares												Restricted Share Units						Additional Paid-in Capital						Treasury Shares																		Accumulated Other Comprehensive Loss						Total Accenture plc Shareholders’ Equity						Noncontrolling Interests						Total Shareholders’ Equity
			$						No. Shares						$						No. Shares						$						No. Shares												$						No. Shares						Retained Earnings
Balance as of August 31, 2020			$	57					40						$	15					658,549						$	—					528						$	1,585,302					$	7,167,227					$	(2,565,761)					(24,423)						$	12,375,533					$	(1,561,837)					$	17,000,536					$	498,637					$	17,499,173
Net income																																																															5,906,809												5,906,809						83,736						5,990,545
Other comprehensive income (loss)																																																																					142,340						142,340						1,117						143,457
Purchases of Class A shares																																													3,622						(3,693,747)						(13,957)																		(3,690,125)						(3,622)						(3,693,747)
Cancellation of treasury shares																					(10,263)																								(255,809)						2,105,666						10,263						(1,849,857)												—												—
Share-based compensation expense																																							1,253,679						89,272																														1,342,951												1,342,951
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares																																	(15)												(9,377)																														(9,377)												(9,377)
Issuances of Class A ordinary shares for employee share programs																					8,305																		(1,176,967)						1,617,702						745,351						3,572						(121,343)												1,064,743						1,032						1,065,775
Dividends																																							88,770																								(2,322,394)												(2,233,624)						(2,470)						(2,236,094)
Other, net																																													5,201																														5,201						(10,770)						(5,569)
Balance as of August 31, 2021			$	57					40						$	15					656,591						$	—					513						$	1,750,784					$	8,617,838					$	(3,408,491)					(24,545)						$	13,988,748					$	(1,419,497)					$	19,529,454					$	567,660					$	20,097,114

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE 2023 FORM 10-K						F-9

Consolidated Shareholders’ Equity Statements — (continued)

For the Years Ended August 31, 2023, 2022 and 2021

			Ordinary Shares												Class A Ordinary Shares												Class X Ordinary Shares												Restricted Share Units						Additional Paid-in Capital						Treasury Shares																		Accumulated Other Comprehensive Loss						Total Accenture plc Shareholders’ Equity						Noncontrolling Interests						Total Shareholders’ Equity
			$						No. Shares						$						No. Shares						$						No. Shares												$						No. Shares						Retained Earnings
Net income																																																															6,877,169												6,877,169						111,791						6,988,960
Other comprehensive income (loss)																																																																					(770,845)						(770,845)						(20,186)						(791,031)
Purchases of Class A shares																																													3,954						(4,111,266)						(12,181)																		(4,107,312)						(3,954)						(4,111,266)
Share-based compensation expense																																							1,571,059						108,730																														1,679,789												1,679,789
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares																																	(12)												(5,112)																														(5,112)												(5,112)
Issuances of Class A shares for employee share programs																					7,970																		(1,333,963)						1,943,912						841,720						3,292						(103,889)												1,347,780						1,284						1,349,064
Dividends																																							103,502																								(2,558,186)												(2,454,684)						(2,622)						(2,457,306)
Other, net																																													9,858																														9,858						(12,982)						(3,124)
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

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE 2023 FORM 10-K						F-10

Consolidated Shareholders’ Equity Statements — (continued)

For the Years Ended August 31, 2023, 2022 and 2021

			Ordinary Shares												Class A Ordinary Shares												Class X Ordinary Shares												Restricted Share Units						Additional Paid-in Capital						Treasury Shares																		Accumulated Other Comprehensive Loss						Total Accenture plc Shareholders’ Equity						Noncontrolling Interests						Total Shareholders’ Equity
			$						No. Shares						$						No. Shares						$						No. Shares												$						No. Shares						Retained Earnings
Net income																																																															6,871,557												6,871,557						131,973						7,003,530
Other comprehensive income (loss)																																																																					447,241						447,241						8,489						455,730
Purchases of Class A shares																																													3,915						(4,322,529)						(15,314)																		(4,318,614)						(3,915)						(4,322,529)
Cancellation of treasury shares																					(8,828)																								(175,701)						2,595,281						8,828						(2,419,580)												—												—
Share-based compensation expense																																							1,790,886						122,165																														1,913,051												1,913,051
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares																																	(176)												(7,874)																														(7,874)												(7,874)
Issuances of Class A shares for employee share programs																					8,883																		(1,592,561)						2,151,005						1,342,773						3,529						(401,493)												1,499,724						1,345						1,501,069
Dividends																																							113,667																								(2,938,102)												(2,824,435)						(2,959)						(2,827,394)
Other, net																																													6,092																														6,092						(10,170)						(4,078)
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

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE 2023 FORM 10-K						F-11

Consolidated Cash Flows Statements

For the Years Ended August 31, 2023, 2022 and 2021

			2023						2022						2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	7,003,530					$	6,988,960					$	5,990,545
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities—
Depreciation, amortization and other			2,281,085						2,088,216						1,891,242
Share-based compensation expense			1,913,051						1,679,789						1,342,951
Deferred tax expense (benefit)			(268,953)						(213,294)						60,930
Other, net			(219,082)						(195,975)						(342,849)
Change in assets and liabilities, net of acquisitions—
Receivables and contract assets, current and non-current			87,669						(2,411,735)						(1,471,613)
Other current and non-current assets			(526,228)						(716,910)						(591,836)
Accounts payable			(171,217)						374,349						825,472
Deferred revenues, current and non-current			159,819						648,506						554,830
Accrued payroll and related benefits			(261,913)						1,271,999						1,445,010
Income taxes payable, current and non-current			113,251						473,313						111,795
Other current and non-current liabilities			(586,744)						(446,089)						(841,329)
Net cash provided by (used in) operating activities			9,524,268						9,541,129						8,975,148
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(528,172)						(717,998)						(580,132)
Purchases of businesses and investments, net of cash acquired			(2,530,863)						(3,447,552)						(4,171,123)
Proceeds from the sale of businesses and investments, net of cash transferred			424,387						(107,659)						413,553
Other investing, net			12,178						12,580						27,936
Net cash provided by (used in) investing activities			(2,622,470)						(4,260,629)						(4,309,766)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares			1,501,069						1,349,064						1,065,775
Purchases of shares			(4,330,403)						(4,116,378)						(3,703,124)
Proceeds from (repayments of) debt, net			93,258						(16,453)						(7,798)
Cash dividends paid			(2,827,394)						(2,457,306)						(2,236,094)
Other financing, net			(81,856)						(69,953)						(45,096)
Net cash provided by (used in) financing activities			(5,645,326)						(5,311,026)						(4,926,337)
Effect of exchange rate changes on cash and cash equivalents			(101,273)						(247,815)						13,799
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			1,155,199						(278,341)						(247,156)
CASH AND CASH EQUIVALENTS, beginning of period			7,889,833						8,168,174						8,415,330
CASH AND CASH EQUIVALENTS, end of period			$	9,045,032					$	7,889,833					$	8,168,174
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid			$	46,505					$	45,970					$	36,132
Income taxes paid, net			$	2,315,920					$	1,778,922					$	1,566,753

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

Table of Contents						Notes to Consolidated Financial Statements (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-12

1. Summary of Significant Accounting Policies

Description of Business

Accenture is a leading global professional services company, providing a broad range of services and solutions across Strategy & Consulting, Technology, Operations, Industry X and Song. We serve clients in three geographic markets: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East). We combine our strength in technology 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.

Basis of Presentation

The Consolidated Financial Statements include the accounts of Accenture plc, an Irish company, and our controlled subsidiary companies. Accenture plc is an Irish public limited company, which operates its business through its subsidiaries.

The shares of Accenture Canada Holdings Inc. held by persons other than us are treated as noncontrolling interests in the Consolidated Financial Statements. The noncontrolling interests were less than 1% as of August 31, 2023 and 2022, respectively.

All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2023” means the 12-month period that ended on August 31, 2023. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.

The preparation of the Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may be different from those estimates.

Revenue Recognition

We account for revenue in accordance with FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606).

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of accounting in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation based on the relative standalone selling price. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service based on margins for similar services sold on a standalone basis. While determining relative standalone selling price and identifying separate performance obligations require judgment, generally relative standalone selling prices and the separate performance obligations are readily identifiable as we sell those performance obligations unaccompanied by other performance obligations. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications, requirements or duration. If a contract modification results in the addition of performance obligations priced at a standalone selling price or if the post-modification services are distinct from the services provided prior to the modification, the modification is accounted for separately. If the modified services are not distinct, they are accounted for as part of the existing contract.

Our revenues are derived from contracts for managed services, technology integration consulting services and non-technology integration consulting services. These contracts have different terms based on the scope, performance obligations and complexity of the engagement, which frequently require us to make judgments and estimates in recognizing revenues. We have many types of contracts, including time-and-materials contracts, fixed-price contracts, fee-per-transaction contracts and contracts with multiple fee types.

The nature of our contracts gives rise to several types of variable consideration, including incentive fees. Many contracts include incentives or penalties related to costs incurred, benefits produced or adherence to schedules that may increase the

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-13

variability in revenues and margins earned on such contracts. These variable amounts generally are awarded or refunded upon achievement of or failure to achieve certain performance metrics, milestones or cost targets and can be based upon client discretion. We include these variable fees in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee and it is not probable a significant reversal of revenue will occur. These estimates reflect the expected value of the variable fee and are based on an assessment of our anticipated performance, historical experience and other information available at the time.

Our performance obligations are satisfied over time as work progresses or at a point in time. The majority of our revenues are recognized over time based on the extent of progress towards satisfying our performance obligations. The selection of the method to measure progress towards completion requires judgment and is based on the contract and the nature of the services to be provided.

Managed Services Contracts

Our managed services contracts typically span several years. Revenues are generally recognized on managed services contracts over time because our clients benefit from the services as they are performed. Managed services contracts require us to provide a series of distinct services each period over the contract term. Revenues from unit-priced contracts are recognized as transactions are processed. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g., time-and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms.

Technology Integration Consulting Services

Revenues from contracts for technology integration consulting services where we design/redesign, build and implement new or enhanced systems and related processes for our clients are recognized over time as control of the system is transferred continuously to the client. Contracts for technology integration consulting services generally span six months to two years. Generally, revenue, including estimated fees, is recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client.

Non-Technology Integration Consulting Services

Our contracts for non-technology integration consulting services are typically less than one year in duration. Revenues are generally recognized over time as our clients benefit from the services as they are performed, or the contract, for which the related services lack an alternative use, includes termination provisions enabling payment for performance completed to date. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g., time-and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms. Revenues from fixed-price contracts are generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. For non-technology integration consulting contracts which do not qualify to recognize revenue over time, we recognize revenues at a point in time when the client obtains control of the promised good or service.

Contract Estimates

Estimates of total contract revenues and costs are continuously monitored over the lives of our contracts, and recorded revenues and cost estimates are subject to revision as the contract progresses. If at any time the estimate of contract profitability indicates an anticipated loss on a technology integration consulting contract, we recognize the loss in the quarter it first becomes probable and reasonably estimable.

Contract Balances

The timing of revenue recognition, billings and cash collections results in Receivables, Contract assets, and Deferred revenues (Contract liabilities) on our Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual milestones. In limited circumstances, we agree to extend financing to certain clients. The terms vary by contract, but generally payment for services is contractually linked to the achievement of specified performance milestones. Our receivables are rights to consideration that are conditional only upon the passage of time as compared to our contract assets, which are rights to consideration conditional upon additional factors. When we bill or receive payments from our clients before revenue is recognized, we record Contract liabilities. Contract assets and liabilities are reported on our Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period.

For some managed services contracts, we receive payments for transition or set-up activities, which are deferred and recognized as revenue as the services are provided. These advance payments are typically not a significant financing component because they are used to meet working capital demands in the early stages of a contract and to protect us from

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-14

the other party failing to complete its obligations under the contract. We elected the practical expedient to report revenues net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions.

Employee Share-Based Compensation Arrangements

Share-based compensation expense is recognized over the requisite service period for awards of equity instruments to employees based on the grant date fair value of those awards expected to ultimately vest. Forfeitures are estimated on the date of grant and revised if actual or expected forfeiture activity differs from previous estimates.

Income Taxes

We calculate and provide for income taxes in each of the tax jurisdictions in which we operate. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement bases of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. We establish liabilities or reduce assets when we believe tax positions are not more likely than not of being sustained if challenged. Recognized tax positions are measured at the largest amount of benefit greater than 50 percent likely of being realized. Each fiscal quarter, we evaluate tax positions and adjust the related tax assets and liabilities in light of changing facts and circumstances. We release stranded tax effects from Accumulated other comprehensive loss using the specific identification approach for our defined benefit plans and the portfolio approach for other items.

Translation of Non-U.S. Currency Amounts

Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at fiscal year-end exchange rates. Revenue and expense items are translated at average foreign currency exchange rates prevailing during the fiscal year. Translation adjustments are included in Accumulated other comprehensive loss. Gains and losses arising from intercompany foreign currency transactions that are of a long-term investment nature are reported in the same manner as translation adjustments.

Cash and Cash Equivalents

Cash and cash equivalents consist of all cash balances and liquid investments with original maturities of three months or less, including certificates of deposit and time deposits. As a result of certain subsidiaries’ cash management systems, checks issued but not presented to the banks for payment may create negative book cash balances. Such negative balances are classified as Current portion of long term debt and bank borrowings.

Allowance for Credit Losses—Client Receivables and Contract Assets

We record client receivables and contract assets at their face amounts less an allowance for credit losses. The allowance represents our estimate of expected credit losses based on historical experience, current economic conditions and certain forward-looking information. As of August 31, 2023 and 2022, the total allowances recorded for credit losses recorded for client receivables and contract assets was $26,343 and $25,786, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

Concentrations of Credit Risk

Our financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments and client receivables, are exposed to concentrations of credit risk. We place our cash and cash equivalents and foreign exchange instruments with highly-rated financial institutions, limit the amount of credit exposure with any one financial institution and conduct ongoing evaluations of the credit worthiness of the financial institutions with which we do business. Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are limited.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-15

Investments

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values). Investments are periodically assessed for other-than-temporary impairment. If an investment is deemed to have experienced an other-than-temporary decline below its basis, we reduce the carrying amount of the investment to its estimated fair value.

Our non-current investments are as follows:

			August 31, 2023						August 31, 2022
Equity method investments			$	23,985					$	164,164
Investments without readily determinable fair values			173,458						153,808
Total non-current investments			$	197,443					$	317,972

For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of Other income (expense), net.

As of August 31, 2022, our equity method investments consisted primarily of an investment in Duck Creek Technologies. On March 30, 2023, Duck Creek Technologies was acquired by Vista Equity Partners for $19.00 per share. As part of this transaction, we received proceeds of $400,355 and recorded a gain of $252,920 in Other income (expense), net during fiscal 2023.

For equity securities without a readily determinable fair value, we use the fair value measurement alternative and measure the securities at cost less impairment, if any, plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer.

Depreciation and Amortization

See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for fiscal 2023 and 2022, respectively.

			Fiscal
			2023						2022
Depreciation			$	620,659					$	591,748
Amortization—Deferred transition			339,139						280,093
Amortization—Intangible assets			440,957						438,897
Operating lease cost			868,082						769,806
Other			12,248						7,672
Total depreciation, amortization and other			$	2,281,085					$	2,088,216

Property and Equipment

Property and equipment is stated at cost, net of accumulated depreciation. Depreciation of property and equipment is computed on a straight-line basis over the following estimated useful lives:

Computers, related equipment and software			2 to 7 years
Furniture and fixtures			5 to 10 years
Leasehold improvements			Lesser of lease term or 15 years

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-16

Goodwill

Goodwill represents the excess of the purchase price of an acquired entity over the fair value of net assets acquired. We review the recoverability of goodwill by operating segment annually, or more frequently when indicators of impairment exist. Based on the results of our annual impairment analysis, we determined that no impairment existed as of August 31, 2023 or 2022, as each reportable segment’s estimated fair value substantially exceeded its carrying value.

Long-Lived Assets

Long-lived assets, including deferred contract costs and identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable. Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount to the estimated future net cash flows. If estimated future undiscounted net cash flows are less than the carrying amount, the asset is considered impaired and a loss is recorded equal to the amount required to reduce the carrying amount to fair value.

Intangible assets with finite lives are generally amortized using the straight-line method over their estimated economic useful lives, ranging from one to fifteen years.

Operating Expenses

Selected components of operating expenses are as follows:

			Fiscal
			2023						2022						2021
Research and development costs			$	1,298,657					$	1,123,296					$	1,118,320
Advertising costs (1)			100,652						119,202						171,883
Provision for (release of) doubtful accounts (2)			3,856						(2,284)						6,199

(1)Advertising costs are expensed as incurred.

(2)For additional information, see “Allowance for Credit Losses—Client Receivables and Contract Assets.”

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 $1,063,146 of business optimization costs during fiscal 2023, including $769,909 for employee severance and other personnel costs and $293,237 related to the consolidation of office space. Total business optimization costs by reportable operating segment are as follows:

			Fiscal
			2023
North America			$	464,879
Europe			432,853
Growth Markets			165,414
Total business optimization costs			$	1,063,146

We continue to expect to record total business optimization costs of approximately $1.5 billion related to these actions, with approximately $450 million in fiscal 2024 related primarily 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.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-17

2. Revenues

Disaggregation of Revenue

See Note 16 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $26 billion and $24 billion as of August 31, 2023 and 2022, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice. Under Topic 606, only the non-cancelable portion of these contracts is included in our performance obligations. Additionally, our performance obligations only include variable consideration if we assess it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty is resolved. Based on the terms of our contracts, a significant portion of what we consider contract bookings is not included in our remaining performance obligations. We expect to recognize approximately 67% of our remaining performance obligations as of August 31, 2023 as revenue in fiscal 2024, an additional 13% 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 both fiscal 2023 and 2022.

Contract Balances

Deferred transition revenues were $653,954 and $712,715 as of August 31, 2023 and 2022, 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. Generally, deferred amounts are protected in the event of early termination of the contract and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets. Deferred transition costs were $851,972 and $807,940 as of August 31, 2023 and 2022, respectively, and are included in Deferred contract costs. Deferred transition amortization expense for fiscal 2023, 2022 and 2021 was $339,139, $280,093 and $297,216, respectively.

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

			As of August 31, 2023						As of August 31, 2022
Receivables			$	10,690,713					$	10,484,211
Contract assets (current)			1,536,473						1,292,564
Receivables and contract assets, net of allowance (current)			12,227,186						11,776,775
Contract assets (non-current)			106,994						46,844
Deferred revenues (current)			4,907,152						4,478,048
Deferred revenues (non-current)			653,954						712,715

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

Revenues recognized during fiscal 2023 that were included in Deferred revenues as of August 31, 2022 were $3.9 billion. Revenues recognized during fiscal 2022 that were included in Deferred revenues as of August 31, 2021 were $3.7 billion.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-18

3. Earnings Per Share

Basic and diluted earnings per share are calculated as follows:

			Fiscal
			2023						2022						2021
Basic Earnings per share
Net income attributable to Accenture plc			$	6,871,557					$	6,877,169					$	5,906,809
Basic weighted average Class A ordinary shares			630,608,186						632,762,710						634,745,073
Basic earnings per share			$	10.90					$	10.87					$	9.31
Diluted Earnings per share
Net income attributable to Accenture plc			$	6,871,557					$	6,877,169					$	5,906,809
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)			7,204						7,348						6,539
Net income for diluted earnings per share calculation			$	6,878,761					$	6,884,517					$	5,913,348
Basic weighted average Class A ordinary shares			630,608,186						632,762,710						634,745,073
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)			660,420						675,949						702,567
Diluted effect of employee compensation related to Class A ordinary shares			7,207,770						9,045,668						10,344,620
Diluted effect of share purchase plans related to Class A ordinary shares			115,240						354,854						116,782
Diluted weighted average Class A ordinary shares			638,591,616						642,839,181						645,909,042
Diluted earnings per share			$	10.77					$	10.71					$	9.16

(1)Diluted earnings per share assumes the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis. 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.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-19

4. Accumulated Other Comprehensive Loss

The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss attributable to Accenture plc:

			Fiscal
			2023						2022						2021
Foreign currency translation
Beginning balance			$	(1,852,320)					$	(975,064)					$	(1,010,279)
Foreign currency translation			349,151						(904,530)						36,562
Income tax benefit (expense)			918						6,975						(346)
Portion attributable to noncontrolling interests			(8,381)						20,299						(1,001)
Foreign currency translation, net of tax			341,688						(877,256)						35,215
Ending balance			(1,510,632)						(1,852,320)						(975,064)
Defined benefit plans
Beginning balance			(348,771)						(559,958)						(615,223)
Actuarial gains (losses)			147,499						238,865						(50,166)
Pension settlement			(9,481)						—						39,016
Prior service costs arising during the period			11,888						1,052						27,570
Reclassifications into net periodic pension and post-retirement expense			34,634						51,061						49,864
Income tax benefit (expense)			(62,147)						(79,567)						(10,959)
Portion attributable to noncontrolling interests			(125)						(224)						(60)
Defined benefit plans, net of tax			122,268						211,187						55,265
Ending balance			(226,503)						(348,771)						(559,958)
Cash flow hedges
Beginning balance			10,749						115,525						63,714
Unrealized gain (loss)			(64,331)						(14,310)						168,244
Reclassification adjustments into Cost of services			27,865						(92,275)						(102,676)
Income tax benefit (expense)			19,734						1,698						(13,701)
Portion attributable to noncontrolling interests			17						111						(56)
Cash flow hedges, net of tax			(16,715)						(104,776)						51,811
Ending balance (1)			(5,966)						10,749						115,525
Investments
Beginning balance			—						—						(49)
Unrealized gain (loss)			—						—						49
Income tax benefit (expense)			—						—						—
Portion attributable to noncontrolling interests			—						—						—
Investments, net of tax			—						—						49
Ending balance			—						—						—
Accumulated other comprehensive loss			$	(1,743,101)					$	(2,190,342)					$	(1,419,497)

(1)As of August 31, 2023, $2,975 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.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-20

5. Property and Equipment

The components of Property and equipment, net are as follows:

			August 31, 2023						August 31, 2022
Buildings and land			$	—					$	5,609
Computers, related equipment and software			2,112,846						2,154,989
Furniture and fixtures			433,473						442,499
Leasehold improvements			1,558,373						1,546,230
Property and equipment, gross			4,104,692						4,149,327
Total accumulated depreciation			(2,574,685)						(2,490,187)
Property and equipment, net			$	1,530,007					$	1,659,140

Depreciation expense for fiscal 2023, 2022 and 2021 was $620,659, $591,748 and $512,051, respectively.

6. Business Combinations and Dispositions

Business Combinations

We completed a number of individually immaterial acquisitions during fiscal 2023, 2022 and 2021. These acquisitions were completed primarily to expand our services and solutions offerings. The table below gives additional details related to these acquisitions:

			Fiscal
			2023						2022						2021
Total consideration			$	2,482,109					$	3,416,981					$	4,109,145
Goodwill			2,094,972						2,758,893						3,388,948
Intangible assets			544,661						737,040						983,910

The intangible assets primarily consist of customer-related intangibles, which are being amortized over one to fifteen years. The goodwill was allocated among our reportable operating segments and is partially deductible for U.S. federal income tax purposes.

Dispositions

During fiscal 2022, we disposed of our business in Russia, which was part of our Europe segment. The transaction resulted in a non-operating loss of $96,294, which was not deductible for tax purposes and did not have a material effect on our operations or financial results.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-21

7. Goodwill and Intangible Assets

Goodwill

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

			August 31, 2021						Additions/ Adjustments						Foreign Currency Translation						August 31, 2022						Additions/ Adjustments						Foreign Currency Translation						August 31, 2023
Geographic Markets
North America			$	6,618,198					$	1,133,033					$	(6,649)					$	7,744,582					$	1,145,007					$	(13,539)					$	8,876,050
Europe			3,329,746						1,447,463						(643,118)						4,134,091						596,352						378,718						5,109,161
Growth Markets			1,177,917						162,483						(85,780)						1,254,620						389,307						(56,135)						1,587,792
Total			$	11,125,861					$	2,742,979					$	(735,547)					$	13,133,293					$	2,130,666					$	309,044					$	15,573,003

Goodwill includes immaterial adjustments related to prior period acquisitions.

Intangible Assets

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

						August 31, 2022																		August 31, 2023
Intangible Asset Class						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Customer-related						$	2,498,001					$	(842,056)					$	1,655,945					$	2,842,257					$	(999,604)					$	1,842,653
Technology						283,251						(96,782)						186,469						289,989						(141,022)						148,967
Patents						126,950						(70,745)						56,205						123,579						(70,472)						53,107
Other						62,875						(30,686)						32,189						65,138						(36,908)						28,230
Total						$	2,971,077					$	(1,040,269)					$	1,930,808					$	3,320,963					$	(1,248,006)					$	2,072,957

Total amortization related to our intangible assets was $440,957, $438,897 and $312,706 for fiscal 2023, 2022 and 2021, respectively. Estimated future amortization related to intangible assets held as of August 31, 2023 is as follows:

Fiscal Year						Estimated Amortization
2024						$	427,055
2025						392,674
2026						343,203
2027						278,129
2028						246,667
Thereafter						385,229
Total						$	2,072,957

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-22

8. Leases

As a lessee, substantially all of our lease obligation is for office real estate. Our significant judgments used in determining our lease obligation include whether a contract is or contains a lease and the determination of the discount rate used to calculate the lease liability. We elected the practical expedient not to separate lease and associated non-lease components, accounting for them as a single combined lease component, for our office real estate and automobile leases.

Our leases may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancelable only by the payment of penalties. Our lease assets and liabilities include these options in the lease term when it is reasonably certain that they will be exercised. In certain cases, we sublease excess office real estate to third-party tenants.

Lease assets and liabilities recognized at the lease commencement date are determined predominantly as the present value of the payments due over the lease term. Since we cannot determine the implicit rate in our leases, we use our incremental borrowing rate on that date to calculate the present value. Our incremental borrowing rate approximates the rate at which we could borrow, on a secured basis for a similar term, an amount equal to our lease payments in a similar economic environment.

When we are the lessee, all leases are recognized as lease liabilities and associated lease assets on the Consolidated Balance Sheet. Lease liabilities represent our obligation to make payments arising from the lease. Lease assets represent our right to use an underlying asset for the lease term and may also include advance payments, initial direct costs, or lease incentives. Payments that depend upon an index or rate, such as the Consumer Price Index (CPI), are included in the recognition of lease assets and liabilities at the commencement-date rate. Other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost, are recognized in the Consolidated Income Statement in the period incurred.

As of August 31, 2023 and 2022, we had no material finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. Lease costs are as follows:

			Fiscal
			2023			2022
Operating lease cost			$	868,082		$	769,806
Variable lease cost			213,078			187,087
Sublease income			(17,061)			(16,804)
Total			$	1,064,099		$	940,089

Supplemental information related to operating lease transactions is as follows:

			Fiscal
			2023			2022
Lease liability payments			$	768,797		$	730,815
Lease assets obtained in exchange for liabilities			434,179			690,767

As of August 31, 2023 and 2022, our operating leases had a weighted average remaining lease term of 6.9 years and 7.3 years, respectively, and a weighted average discount rate of 3.8% and 3.7%, respectively.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-23

The following maturity analysis presents future undiscounted cash outflows (inflows) for operating leases as of August 31, 2023:

			Lease Payments						Sublease Receipts
2024			$	705,584					$	(12,793)
2025			608,099						(9,827)
2026			475,299						(6,960)
2027			375,738						(6,397)
2028			292,983						(6,301)
Thereafter			939,243						(6,268)
Total lease payments (receipts)			$	3,396,946					$	(48,546)
Less interest			(395,815)
Total lease liabilities			$	3,001,131

As of August 31, 2023, we have entered into leases that have not yet commenced with future lease payments of $141,662 that are not reflected in the table above. These leases are primarily related to office real estate and will commence in or before fiscal 2025 with lease terms of up to 10 years.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-24

9. Financial Instruments

Derivatives

In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Derivative transactions are governed by a uniform set of policies and procedures covering areas such as authorization, counterparty exposure and hedging practices. Positions are monitored using techniques such as market value and sensitivity analyses. We do not enter into derivative transactions for trading purposes. We classify cash flows from our derivative programs as cash flows from operating activities in the Consolidated Cash Flows Statements.

Certain derivatives give rise to credit risks from the possible non-performance by counterparties. Credit risk is generally limited to the fair value of those contracts that are favorable to us, and the maximum amount of loss due to credit risk, based on the gross fair value of our derivative financial instruments that are in an asset position, was $104,420 as of August 31, 2023.

We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. These provisions may reduce our potential overall loss resulting from the insolvency of a counterparty and reduce a counterparty’s potential overall loss resulting from our insolvency. Additionally, these agreements contain early termination provisions triggered by adverse changes in a counterparty’s credit rating, thereby enabling us to accelerate settlement of a transaction prior to its contractual maturity and potentially decrease our realized loss on an open transaction. Similarly, a decrement in our credit rating could trigger a counterparty’s early termination rights, thereby enabling a counterparty to accelerate settlement of a transaction prior to its contractual maturity and potentially increase our realized loss on an open transaction. The aggregate fair value of our derivative instruments with credit-risk-related contingent features that were in a liability position as of August 31, 2023 was $114,741.

Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts. Fair values for derivative financial instruments are based on prices computed using third-party valuation models and are classified as Level 2 in accordance with the three-level hierarchy of fair value measurements. All of the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates and yield curves. For additional information related to the three-level hierarchy of fair value measurements, see Note 12 (Retirement and Profit Sharing Plans) to these Consolidated Financial Statements.

Cash Flow Hedges

Certain of our subsidiaries are exposed to currency risk through their use of our global delivery resources. To mitigate this risk, we use foreign currency forward contracts to hedge the foreign exchange risk of the forecasted intercompany expenses denominated in foreign currencies for up to three years in the future. We have designated these derivatives as cash flow hedges. As of August 31, 2023 and 2022, we held no derivatives that were designated as fair value or net investment hedges.

In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow or net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation includes a description of the hedging instrument, the hedged item, the risk being hedged, our risk management objective and strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge and the method for measuring hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in either the fair value or cash flows of the hedged item at both inception of the hedge and on an ongoing basis.

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. The amounts related to derivatives designated as cash flow hedges that were reclassified into Cost of services were net losses of $27,865, and net gains of $92,275 and $102,676 during fiscal 2023, 2022 and 2021, respectively. The ineffective portion of the change in fair value of a cash flow hedge is recognized immediately in Other income (expense), net in the Consolidated Income Statements and for fiscal 2023, 2022 and 2021, was not material. In addition, we did not discontinue any cash flow hedges during fiscal 2023, 2022 or 2021.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-25

Other Derivatives

We also use foreign currency forward contracts, which have not been designated as hedges, to hedge balance sheet exposures, such as intercompany loans. These instruments are generally short-term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates. Realized gains or losses and changes in the estimated fair value of these derivatives were net losses of $135,586, $168,625 and $15,370 for fiscal 2023, 2022 and 2021, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

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

			August 31, 2023						August 31, 2022
Assets
Cash Flow Hedges
Other current assets			$	52,995					$	89,867
Other non-current assets			44,739						69,209
Other Derivatives
Other current assets			6,686						8,657
Total assets			$	104,420					$	167,733
Liabilities
Cash Flow Hedges
Other accrued liabilities			$	50,020					$	61,156
Other non-current liabilities			26,076						42,537
Other Derivatives
Other accrued liabilities			38,645						83,792
Total liabilities			$	114,741					$	187,485
Total fair value			$	(10,321)					$	(19,752)
Total notional value			$	13,390,031					$	11,095,604

We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, we record derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:

			August 31, 2023						August 31, 2022
Net derivative assets			$	50,528					$	140,073
Net derivative liabilities			60,849						159,825
Total fair value			$	(10,321)					$	(19,752)

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-26

10. Borrowings and Indebtedness

As of August 31, 2023 and 2022, we had total outstanding debt of $147,903 and $55,068, respectively.

As of August 31, 2023, we had the following borrowing facilities:

			Credit Facilities
Syndicated loan facility (1)			$	3,000,000
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2)			1,777,938
Local guaranteed and non-guaranteed lines of credit (3)			246,818
Total			$	5,024,756

(1)This facility, which matures on April 24, 2026, 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 continue to be in compliance with relevant covenant terms. The facility is subject to annual commitment fees. As of August 31, 2023, we had $100,000 of commercial paper outstanding and backed by this facility, with a weighted-average effective interest rate of 5.4%. We did not have any commercial paper outstanding as of August 31, 2022.

(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 August 31, 2023 and 2022, 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 August 31, 2023 and 2022, we had no borrowings under these various facilities.

Under the borrowing facilities described above, we had an aggregate of $1,080,819 and $892,340 of letters of credit outstanding as of August 31, 2023 and 2022, respectively. We also had $100,000 of commercial paper outstanding as of August 31, 2023. We did not have any commercial paper outstanding as of August 31, 2022. The amount of commercial paper and letters of credit outstanding reduces the available borrowing capacity under these facilities.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-27

11. Income Taxes

			Fiscal
			2023						2022						2021
Current taxes
U.S. federal			$	422,435					$	298,685					$	218,064
U.S. state and local			220,043						152,862						95,662
Non-U.S.			1,762,277						1,968,954						1,395,915
Total current tax expense			2,404,755						2,420,501						1,709,641
Deferred taxes
U.S. federal			(334,942)						(202,318)						7,767
U.S. state and local			(63,098)						(48,597)						(5,400)
Non-U.S.			129,087						37,621						58,563
Total deferred tax (benefit) expense			(268,953)						(213,294)						60,930
Total			$	2,135,802					$	2,207,207					$	1,770,571

The components of Income before income taxes are as follows:

			Fiscal
			2023						2022						2021
U.S. sources			$	1,562,011					$	1,644,380					$	1,597,820
Non-U.S. sources			7,577,321						7,551,787						6,163,296
Total			$	9,139,332					$	9,196,167					$	7,761,116

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:

			Fiscal
			2023						2022 (2)						2021 (2)
U.S. federal statutory income tax rate			21.0		%				21.0		%				21.0		%
U.S. state and local taxes, net			1.3						1.1						1.2
Non-U.S. operations taxed at other rates			1.4						0.8						1.1
Final determinations (1)			(1.0)						(0.9)						(1.7)
Other net activity in unrecognized tax benefits			3.2						3.0						2.8
Excess tax benefits from share based payments			(1.3)						(3.0)						(2.1)
Foreign-derived intangible income deduction			(2.3)						(1.1)						(0.9)
Other, net			1.1						3.1						1.4
Effective income tax rate			23.4		%				24.0		%				22.8		%

(1)Final determinations include final agreements with tax authorities and expirations of statutes of limitations.

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

As of August 31, 2023, we had not recognized a deferred tax liability on approximately $3,000,000 of undistributed earnings for certain foreign subsidiaries, because these earnings are intended to be indefinitely reinvested. If such earnings were distributed, some countries may impose additional taxes. The unrecognized deferred tax liability (the amount payable if distributed) is approximately $170,000.

Portions of our operations are subject to reduced tax rates or are free of tax under various tax holidays which expire in fiscal 2031. The income tax benefits attributable to the tax status of these subsidiaries were estimated to be approximately $40,000, $29,000 and $37,000 in fiscal 2023, 2022 and 2021, respectively.

The revaluation of deferred tax assets and liabilities due to enacted changes in tax laws and tax rates did not have a material impact on our effective tax rate in fiscal 2023, 2022, or 2021.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-28

The components of our deferred tax assets and liabilities included the following:

			August 31, 2023						August 31, 2022 (1)
Deferred tax assets
Pensions			$	518,782					$	501,475
Compensation and benefits			909,894						930,284
Share-based compensation			518,126						436,740
Tax credit carryforwards			1,380,841						940,640
Net operating loss carryforwards			172,690						180,610
Deferred amortization deductions			842,471						852,513
Indirect effects of unrecognized tax benefits			315,145						356,841
Licenses and other intangibles			1,089,720						1,322,464
Leases			715,393						759,399
Capitalized research costs			363,135						—
Other			657,346						477,143
Total deferred tax assets			7,483,543						6,758,109
Valuation allowance			(1,480,678)						(1,056,022)
Deferred tax assets, net of valuation allowance			6,002,865						5,702,087
Deferred tax liabilities
Pensions			(205,411)						(146,553)
Revenue recognition			(77,864)						(106,580)
Investments in subsidiaries			(176,539)						(162,873)
Intangibles			(647,477)						(581,105)
Leases			(625,190)						(687,428)
Other			(510,786)						(334,932)
Total deferred tax liabilities			(2,243,267)						(2,019,471)
Net deferred tax assets			$	3,759,598					$	3,682,616

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

We recorded valuation allowances of $1,480,678 and $1,056,022 as of August 31, 2023 and 2022, respectively, against deferred tax assets principally associated with certain tax credit and tax net operating loss carryforwards, as we believe it is more likely than not that these assets will not be realized. For all other deferred tax assets, we believe it is more likely than not that the results of future operations will generate sufficient taxable income to realize these deferred tax assets. During fiscal 2023 and 2022, we recorded net increases of $424,656 and $54,777 in the valuation allowance, respectively, primarily related to valuation allowances on certain tax credit carryforwards, as we believe it is more likely than not that these assets will not be realized.

We had tax credit carryforwards as of August 31, 2023 of $1,380,841, of which $31,995 will expire between 2024 and 2033, $336 will expire between 2034 and 2043, and $1,348,510 has an indefinite carryforward period. We had net operating loss carryforwards as of August 31, 2023 of $809,894. Of this amount, $200,928 expires between 2024 and 2033, $13,640 expires between 2034 and 2043, and $595,326 has an indefinite carryforward period.

As of August 31, 2023, we had $1,744,481 of unrecognized tax benefits, of which $1,289,173, if recognized, would favorably affect our effective tax rate. As of August 31, 2022, we had $1,469,336 of unrecognized tax benefits, of which $1,083,065, if recognized, would favorably affect our effective tax rate. The remaining unrecognized tax benefits as of August 31, 2023 and 2022 of $455,308 and $386,271, respectively, represent items recorded as offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, state income taxes and timing adjustments.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-29

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

			Fiscal
			2023						2022
Balance, beginning of year			$	1,469,336					$	1,344,460
Additions for tax positions related to the current year			446,929						356,089
Additions for tax positions related to prior years			99,926						29,060
Reductions for tax positions related to prior years			(152,799)						(69,023)
Statute of limitations expirations			(72,039)						(62,393)
Settlements with tax authorities			(60,292)						(2,109)
Cumulative translation adjustment			13,420						(126,748)
Balance, end of year			$	1,744,481					$	1,469,336

We recognize interest and penalties related to unrecognized tax benefits in our Income tax expense. During fiscal 2023, 2022 and 2021, we recognized expense of $21,137, $25,369 and $35,285 in interest and penalties, respectively. Accrued interest and penalties related to unrecognized tax benefits of $172,163 ($161,753, net of tax benefits) and $177,610 ($159,814, net of tax benefits) were reflected on our Consolidated Balance Sheets as of August 31, 2023 and 2022, respectively.

As a global company, we file tax returns in multiple tax jurisdictions including the U.S. and Ireland. We have participated in the U.S. Internal Revenue Service (“IRS”) Compliance Assurance Process (“CAP”) program since fiscal 2016. CAP tax years are examined by the IRS on a contemporaneous basis so that most issues are resolved prior to filing the tax return. The years from fiscal 2021 forward remain open for examination by the IRS. The years from fiscal 2019 forward remain open for examination by the Irish tax authorities. We are currently under audit in U.S. state and other non-U.S. tax jurisdictions. However, with limited exceptions, we are no longer subject to examination by those taxing authorities for years before 2015. Although the outcome of tax audits is always uncertain and could result in significant cash tax payments, we do not believe the outcome of these audits will have a material adverse effect on our consolidated financial position or results of operations. We believe that it is reasonably possible that our unrecognized tax benefits could decrease by approximately $358,000 or increase by approximately $572,000 in the next 12 months as a result of settlements, lapses of statutes of limitations, tax audit activity and other adjustments. The majority of these amounts relate to transfer pricing matters in both U.S. and non-U.S. tax jurisdictions.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-30

12. Retirement and Profit Sharing Plans

Defined Benefit Pension and Postretirement Plans

In the United States and certain other countries, we maintain and administer defined benefit retirement plans and postretirement medical plans for certain current, retired and resigned employees. In addition, our U.S. defined benefit pension plans include a frozen plan for former pre-incorporation partners, which is unfunded. Benefits under the employee retirement plans are primarily based on years of service and compensation during the years immediately preceding retirement or termination of participation in the plan. The defined benefit pension disclosures include our U.S. and material non-U.S. defined benefit pension plans.

Assumptions

The weighted-average assumptions used to determine the defined benefit pension obligations as of August 31 and the net periodic pension expense are as follows:

			Pension Plans																																				Postretirement Plans
			August 31, 2023												August 31, 2022												August 31, 2021												August 31, 2023						August 31, 2022						August 31, 2021
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. and Non-U.S. Plans						U.S. and Non-U.S. Plans						U.S. and Non-U.S. Plans
Discount rate for determining projected benefit obligation			5.00		%				4.68		%				4.25		%				3.99		%				2.50		%				2.41		%				5.00		%				4.28		%				2.53		%
Discount rate for determining net periodic pension expense			4.25		%				3.99		%				2.50		%				2.41		%				2.50		%				2.27		%				4.28		%				2.53		%				2.51		%
Long term rate of return on plan assets			3.50		%				3.19		%				3.50		%				2.23		%				3.50		%				2.63		%				2.88		%				2.89		%				3.06		%
Rate of increase in future compensation for determining projected benefit obligation			2.07		%				5.13		%				2.07		%				5.30		%				2.09		%				4.48		%				N/A						N/A						N/A
Rate of increase in future compensation for determining net periodic pension expense			2.07		%				5.30		%				2.09		%				4.48		%				2.21		%				4.04		%				N/A						N/A						N/A
Interest crediting rate for determining projected benefit obligation			N/A						1.59		%				N/A						1.37		%				N/A						0.77		%				N/A						N/A						N/A
Interest crediting rate for determining net periodic pension expense			N/A						1.37		%				N/A						0.77		%				N/A						0.68		%				N/A						N/A						N/A

We utilize a full yield curve approach to estimate the service and interest cost components by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This approach provides a correlation between projected benefit cash flows and the corresponding yield curve spot rates and provides a precise measurement of service and interest costs. The discount rate assumptions are based on the expected duration of the benefit payments for each of our defined benefit pension and postretirement plans as of the annual measurement date and are subject to change each year.

The expected long-term rate of return on plan assets should, over time, approximate the actual long-term returns on defined benefit pension and postretirement plan assets and is based on historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the asset portfolio.

Assumed U.S. Health Care Cost Trend

Our U.S. postretirement plan assumed annual rate of increase in the per capita cost of health care benefits is 6.7% for the plan year ending August 31, 2024. The rate is assumed to decrease on a straight-line basis to 4.0% for the plan year ending August 31, 2048 and remain at that level thereafter.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-31

Pension and Postretirement Expense

Pension expense for fiscal 2023, 2022 and 2021 was $206,346, $188,001 and $169,471, respectively. Postretirement expense for fiscal 2023, 2022 and 2021 was not material to our Consolidated Financial Statements. The service cost component of pension and postretirement expense is included in operating expenses while the other components of net benefit cost are included in Other income (expense), net.

Benefit Obligation, Plan Assets and Funded Status

The changes in the benefit obligations, plan assets and funded status of our pension and postretirement benefit plans for fiscal 2023 and 2022 are as follows:

			Pension Plans																								Postretirement Plans
			August 31, 2023												August 31, 2022												August 31, 2023						August 31, 2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. and Non-U.S. Plans						U.S. and Non-U.S. Plans
Reconciliation of benefit obligation
Benefit obligation, beginning of year			$	328,907					$	2,011,658					$	406,328					$	2,337,120					$	589,744					$	734,271
Service cost			1,622						137,002						2,087						128,723						30,079						36,066
Interest cost			12,440						75,765						7,762						49,136						23,807						17,127
Participant contributions			—						21,868						—						20,274						—						—
Acquisitions/divestitures/transfers			—						21,941						—						36,262						28						—
Amendments			—						(11,888)						—						(1,052)						—						—
Special termination benefits			—						—						—						—						200						—
Plan combinations			—						319						—						—						—						—
Actuarial (gain) loss			(13,635)						(176,748)						(70,541)						(218,036)						(122,473)						(181,512)
Benefits paid			(17,463)						(119,697)						(16,729)						(104,257)						(19,698)						(15,515)
Exchange rate impact			—						72,513						—						(236,512)						(709)						(693)
Benefit obligation, end of year			$	311,871					$	2,032,733					$	328,907					$	2,011,658					$	500,978					$	589,744
Reconciliation of fair value of plan assets
Fair value of plan assets, beginning of year			$	233,260					$	1,126,871					$	291,652					$	1,326,259					$	25,793					$	32,550
Actual return on plan assets			(10,141)						(104,173)						(52,564)						(119,123)						(653)						(4,985)
Acquisitions/divestitures/transfers			—						19,358						—						8,097						—						—
Employer contributions			10,940						126,996						10,901						120,322						22,949						13,743
Participant contributions			—						21,868						—						20,274						—						—
Pension settlement			—						—						—						378						—						—
Benefits paid			(17,463)						(119,697)						(16,729)						(104,257)						(19,698)						(15,515)
Exchange rate impact			—						55,164						—						(125,079)						—						—
Fair value of plan assets, end of year			$	216,596					$	1,126,387					$	233,260					$	1,126,871					$	28,391					$	25,793
Funded status, end of year			$	(95,275)					$	(906,346)					$	(95,647)					$	(884,787)					$	(472,587)					$	(563,951)
Amounts recognized in the Consolidated Balance Sheets
Non-current assets			$	6,556					$	124,600					$	7,901					$	148,836					$	—					$	—
Current liabilities			(11,495)						(64,913)						(10,529)						(60,642)						(1,210)						(1,267)
Non-current liabilities			(90,336)						(966,033)						(93,019)						(972,981)						(471,377)						(562,684)
Funded status, end of year			$	(95,275)					$	(906,346)					$	(95,647)					$	(884,787)					$	(472,587)					$	(563,951)

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-32

Accumulated Other Comprehensive (Gain) Loss

The pre-tax accumulated net (gain) loss and prior service (credit) cost recognized in Accumulated other comprehensive (gain) loss as of August 31, 2023 and 2022 is as follows:

			Pension Plans																								Postretirement Plans
			August 31, 2023												August 31, 2022												August 31, 2023						August 31, 2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. and Non-U.S. Plans						U.S. and Non-U.S. Plans
Net (gain) loss			$	90,199					$	324,500					$	93,663					$	370,478					$	(96,281)					$	23,526
Prior service (credit) cost			—						(19,138)						—						(4,478)						5,122						6,101
Accumulated other comprehensive (gain) loss, pre-tax			$	90,199					$	305,362					$	93,663					$	366,000					$	(91,159)					$	29,627

Funded Status for Defined Benefit Plans

The accumulated benefit obligation for defined benefit pension plans as of August 31, 2023 and 2022 is as follows:

			August 31, 2023												August 31, 2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
Accumulated benefit obligation			$	309,898					$	1,771,880					$	325,991					$	1,730,451

The following information is provided for defined benefit pension plans and postretirement plans with projected benefit obligations in excess of plan assets and for defined benefit pension plans with accumulated benefit obligations in excess of plan assets as of August 31, 2023 and 2022:

			Pension Plans																								Postretirement Plans
			August 31, 2023												August 31, 2022												August 31, 2023						August 31, 2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. and Non-U.S. Plans						U.S. and Non-U.S. Plans
Projected benefit obligation in excess of plan assets
Projected benefit obligation			$	101,830					$	1,328,422					$	103,548					$	1,364,096					$	500,978					$	589,744
Fair value of plan assets			—						297,495						—						330,473						28,391						25,793

			August 31, 2023												August 31, 2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
Accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation			$	101,830					$	1,036,344					$	103,548					$	1,073,411
Fair value of plan assets			—						233,905						—						279,864

Investment Strategies

U.S. Pension Plans

The overall investment objective of the defined benefit pension plans is to match the duration of the plans’ assets to the plans’ liabilities while managing risk in order to meet current defined benefit pension obligations. The plans’ future prospects, their current financial conditions, our current funding levels and other relevant factors suggest that the plans can tolerate some interim fluctuations in market value and rates of return in order to achieve long-term objectives without undue risk to the plans’ ability to meet their current benefit obligations. We recognize that asset allocation of the defined benefit pension plans’ assets is an important factor in determining long-term performance. Actual asset allocations at any point in time may

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-33

vary from the target asset allocations and will be dictated by current and anticipated market conditions, required cash flows and investment decisions of the investment committee and the pension plans’ investment funds and managers. Ranges are established to provide flexibility for the asset allocation to vary around the targets without the need for immediate rebalancing.

Non-U.S. Pension Plans

Plan assets in non-U.S. defined benefit pension plans conform to the investment policies and procedures of each plan and to relevant legislation. The pension committee or trustee of each plan regularly, but at least annually, reviews the investment policy and the performance of the investment managers. In certain countries, the trustee is also required to consult with us. Asset allocation decisions are made to provide risk adjusted returns that align with the overall investment strategy for each plan. Generally, the investment return objective of each plan is to achieve a total annualized rate of return that exceeds inflation over the long term by an amount based on the target asset allocation mix of that plan. In certain countries, plan assets are invested in funds that are required to hold a majority of assets in bonds, with a smaller proportion in equities. Also, certain plan assets are entirely invested in contracts held with the plan insurer, which determines the strategy. Defined benefit pension plans in certain countries are unfunded.

Risk Management

Plan investments are exposed to risks including market, interest rate and operating risk. In order to mitigate significant concentrations of these risks, the assets are invested in a diversified portfolio primarily consisting of fixed income instruments and equities. To minimize asset volatility relative to the liabilities, plan assets allocated to debt securities appropriately match the duration of individual plan liabilities. Equities are diversified between U.S. and non-U.S. index funds and are intended to achieve long term capital appreciation. Plan asset allocation and investment managers’ guidelines are reviewed on a regular basis.

Plan Assets

Our target allocation for fiscal 2024 and weighted-average plan assets allocations as of August 31, 2023 and 2022 by asset category for defined benefit pension plans are as follows:

			2024 Target Allocation												2023												2022
			U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans						U.S. Plans						Non-U.S. Plans
Asset Category
Equity securities			—		%				27		%				—		%				19		%				—		%				21		%
Debt securities			100						35						95						43						97						50
Cash and short-term investments			—						6						5						6						3						4
Insurance contracts			—						22						—						22						—						15
Other			—						10						—						10						—						10
Total			100		%				100		%				100		%				100		%				100		%				100		%

Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

The three-level hierarchy of fair value measurements is based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:

• Level 1—Quoted prices for identical instruments in active markets;

• Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and

• Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-34

The fair values of defined benefit pension and postretirement plan assets as of August 31, 2023 are as follows:

Non-U.S. Plans
			Level 1						Level 2						Level 3						Total
Equity
Mutual fund equity securities			$	7,430					$	188,796					$	—					$	196,226
Non-U.S. corporate equity securities			—						18,163						—						18,163
Fixed Income
Non-U.S. government debt securities			192,484						88,274						—						280,758
Non-U.S. corporate debt securities			17,568						—						—						17,568
Mutual fund debt securities			—						189,337						—						189,337
Cash and short-term investments			65,401						—						—						65,401
Insurance contracts			—						68,569						180,353						248,922
Other			—						82,455						27,557						110,012
Total			$	282,883					$	635,594					$	207,910					$	1,126,387

The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is set to an actuarially calculated present value of the underlying liabilities.

The U.S. Plans have $244,987 in Level 2 assets, primarily made up of U.S. corporate debt securities of $162,799 and U.S. government, state and local debt securities of $38,656.

The following table provides a reconciliation of the beginning and ending balances of Level 3 assets for fiscal 2023:

Level 3 Assets			Fiscal 2023
Beginning balance			$	97,881
Changes in fair value			110,029
Ending Balance			$	207,910

The fair values of defined benefit pension and postretirement plan assets as of August 31, 2022 are as follows:

Non-U.S. Plans
			Level 1						Level 2						Level 3						Total
Equity
Mutual fund equity securities			$	4,954					$	234,339					$	—					$	239,293
Fixed Income
Non-U.S. government debt securities			168,705						—						—						168,705
Non-U.S. corporate debt securities			16,238						—						—						16,238
Mutual fund debt securities			—						379,989						—						379,989
Cash and short-term investments			48,089						—						—						48,089
Insurance contracts			—						69,902						97,881						167,783
Other			—						106,774						—						106,774
Total			$	237,986					$	791,004					$	97,881					$	1,126,871

The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is set to an actuarially calculated present value of the underlying liabilities.

The U.S. Plans have $259,053 in Level 2 assets, primarily made up of U.S. corporate debt securities of $161,031 and U.S. government, state and local debt securities of $55,217.

The following table provides a reconciliation of the beginning and ending balances of Level 3 assets for fiscal 2022:

Level 3 Assets			Fiscal 2022
Beginning balance			$	130,934
Changes in fair value			(33,053)
Ending Balance			$	97,881

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-35

Expected Contributions

Generally, annual contributions are made at such times and in amounts as required by law and may, from time to time, exceed minimum funding requirements. We estimate we will pay approximately $169,664 in fiscal 2024 related to contributions to our U.S. and non-U.S. defined benefit pension plans and benefit payments related to the unfunded frozen plan for former pre-incorporation partners. We have not determined whether we will make additional voluntary contributions for our defined benefit pension plans. Our postretirement plan contributions in fiscal 2024 are not expected to be material to our Consolidated Financial Statements.

Estimated Future Benefit Payments

Benefit payments for defined benefit pension plans and postretirement plans, which reflect expected future service, as appropriate, are expected to be paid as follows:

			Pension Plans												Postretirement Plans
			U.S. Plans						Non-U.S. Plans						U.S. and Non-U.S. Plans
2024			$	18,726					$	136,479					$	13,473
2025			19,693						138,786						14,939
2026			20,485						144,204						16,542
2027			21,186						167,185						18,440
2028			21,824						184,746						20,189
2029-2033			114,568						981,670						130,673

Defined Contribution Plans

In the United States and certain other countries, we maintain and administer defined contribution plans for certain current, retired and resigned employees. Total expenses recorded for defined contribution plans were $976,230, $823,720 and $646,519 in fiscal 2023, 2022 and 2021, respectively.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-36

13. Share-Based Compensation

Share Incentive Plans

The Amended and Restated Accenture plc 2010 Share Incentive Plan, as amended and approved by our shareholders in 2022 (the “Amended 2010 SIP”), is administered by the Compensation, Culture & People Committee of the Board of Directors of Accenture and provides for the grant of nonqualified share options, incentive stock options, restricted share units and other share-based awards. A maximum of 127,000,000 Accenture plc Class A ordinary shares are currently authorized for awards under the Amended 2010 SIP. As of August 31, 2023, there were 19,452,323 shares available for future grants. Accenture plc Class A ordinary shares covered by awards that terminate, lapse or are cancelled may again be used to satisfy awards under the Amended 2010 SIP. We issue new Accenture plc Class A ordinary shares and shares from treasury for shares delivered under the Amended 2010 SIP.

A summary of information with respect to share-based compensation is as follows:

			Fiscal
			2023						2022						2021
Total share-based compensation expense included in Net income			$	1,913,051					$	1,679,789					$	1,342,951
Income tax benefit related to share-based compensation included in Net income			585,767						680,335						486,980

Restricted Share Units

Under the Amended 2010 SIP, participants may be, and previously under the predecessor 2001 Share Incentive Plan were, granted restricted share units, each of which represent an unfunded, unsecured right to receive an Accenture plc Class A ordinary share on the date specified in the participant’s award agreement. The fair value of the awards is based on our stock price on the date of grant. The restricted share units granted under these plans are subject to cliff or graded vesting, generally ranging from two to five years. For awards with graded vesting, compensation expense is recognized over the vesting term of each separately vesting portion. Compensation expense is recognized on a straight-line basis for awards with cliff vesting. Restricted share unit activity during fiscal 2023 is as follows:

			Number of Restricted Share Units						Weighted Average Grant-Date Fair Value
Nonvested balance as of August 31, 2022			14,586,892						$	283.16
Granted (1)			8,911,674						267.37
Vested (2)			(6,919,616)						248.06
Forfeited			(1,018,192)						291.38
Nonvested balance as of August 31, 2023			15,560,758						$	289.19

(1)The weighted average grant-date fair value for restricted share units granted for fiscal 2023, 2022 and 2021 was $267.37, $387.73 and $263.83, respectively.

(2)The total grant-date fair value of restricted share units vested for fiscal 2023, 2022 and 2021 was $1,716,464, $1,343,403 and $1,156,501, respectively.

As of August 31, 2023, there was $1,654,658 of total unrecognized restricted share unit compensation expense related to nonvested awards, which is expected to be recognized over a weighted average period of 1.2 years. As of August 31, 2023, there were 509,901 restricted share units vested but not yet delivered as Accenture plc Class A ordinary shares.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-37

Employee Share Purchase Plan

2010 ESPP

The Amended and Restated Accenture plc 2010 Employee Share Purchase Plan (the “2010 ESPP”) is a nonqualified plan that provides eligible employees of Accenture plc and its designated affiliates with an opportunity to purchase Accenture plc Class A ordinary shares through payroll deductions. Under the 2010 ESPP, eligible employees may purchase Accenture plc Class A ordinary shares through the Employee Share Purchase Plan (the “ESPP”) or the Voluntary Equity Investment Program (the “VEIP”). Under the ESPP, eligible employees may elect to contribute 1% to 10% of their eligible compensation during each semi-annual offering period (up to $7.5 per offering period) to purchase Accenture plc Class A ordinary shares at a discount. Under the VEIP, eligible members of Accenture Leadership may elect to contribute up to 30% of their eligible compensation towards the monthly purchase of Accenture plc Class A ordinary shares at fair market value. At the end of the VEIP program year, Accenture Leadership participants who did not withdraw from the program will be granted restricted share units under the Amended 2010 SIP equal to 50% of the number of shares purchased during that year and held by the participant as of the grant date.

A maximum of 90,000,000 Accenture plc Class A ordinary shares may be issued under the 2010 ESPP. As of August 31, 2023, we had issued 79,519,314 Accenture plc Class A ordinary shares under the 2010 ESPP. We issued 5,710,542, 4,366,262 and 4,486,288 shares to employees in fiscal 2023, 2022 and 2021, respectively, under the 2010 ESPP.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-38

14. Shareholders’ Equity

Accenture plc

Ordinary Shares

We have 40,000 authorized ordinary shares, par value €1 per share. Each ordinary share of Accenture plc entitles its holder to receive payments upon a liquidation of Accenture plc; however a holder of an ordinary share is not entitled to vote on matters submitted to a vote of shareholders of Accenture plc or to receive dividends.

Class A Ordinary Shares

An Accenture plc Class A ordinary share entitles its holder to one vote per share, and holders of those shares do not have cumulative voting rights. Each Class A ordinary share entitles its holder to a pro rata part of any dividend at the times and in the amounts, if any, which Accenture plc’s Board of Directors from time to time determines to declare, subject to any preferred dividend rights attaching to any preferred shares. Each Class A ordinary share is entitled on a winding-up of Accenture plc to be paid a pro rata part of the value of the assets of Accenture plc remaining after payment of its liabilities, subject to any preferred rights on liquidation attaching to any preferred shares.

Class X Ordinary Shares

Most of our pre-incorporation partners who received Accenture Canada Holdings Inc. exchangeable shares in connection with our transition to a corporate structure received a corresponding number of Accenture plc Class X ordinary shares. An Accenture plc Class X ordinary share entitles its holder to one vote per share, and holders of those shares do not have cumulative voting rights. A Class X ordinary share does not entitle its holder to receive dividends, and holders of those shares are not entitled to be paid any amount upon a winding-up of Accenture plc. Accenture plc may redeem, at its option, any Class X ordinary share for a redemption price equal to the par value of the Class X ordinary share. Accenture plc has separately agreed with the original holders of Accenture Canada Holdings Inc. exchangeable shares not to redeem any Class X ordinary share of such holder if the redemption would reduce the number of Class X ordinary shares held by that holder to a number that is less than the number of Accenture Canada Holdings Inc. exchangeable shares owned by that holder, as the case may be. Accenture plc will redeem Class X ordinary shares upon the redemption or exchange of Accenture Canada Holdings Inc. exchangeable shares so that the aggregate number of Class X ordinary shares outstanding at any time does not exceed the aggregate number of Accenture Canada Holdings Inc. exchangeable shares outstanding. Class X ordinary shares are not transferable without the consent of Accenture plc.

Equity of Subsidiaries Redeemable or Exchangeable for Accenture plc Class A Ordinary Shares

Accenture Canada Holdings Inc. Exchangeable Shares

Pre-incorporation partners resident in Canada and New Zealand received Accenture Canada Holdings Inc. exchangeable shares in connection with our transition to a corporate structure. Holders of Accenture Canada Holdings Inc. exchangeable shares may exchange their shares for Accenture plc Class A ordinary shares at any time on a one-for-one basis. We may, at our option, satisfy this exchange with cash at a price per share generally equal to the market price of an Accenture plc Class A ordinary share at the time of the exchange. Each exchangeable share of Accenture Canada Holdings Inc. entitles its holder to receive distributions equal to any distributions to which an Accenture plc Class A ordinary share entitles its holder.

Share Purchases and Redemptions

The Board of Directors of Accenture plc has authorized funding for our publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares and for purchases and redemptions of Accenture plc Class A ordinary shares and Accenture Canada Holdings Inc. exchangeable shares held by current and former members of Accenture Leadership and their permitted transferees. As of August 31, 2023, our aggregate available authorization was $2,490,054 for our publicly announced open-market share purchase and these other share purchase programs.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-39

Our share purchase activity during fiscal 2023 is as follows:

			Accenture plc Class A Ordinary Shares												Accenture Canada Holdings Inc. Exchangeable Shares
			Shares						Amount						Shares						Amount
Open-market share purchases (1)			12,773,304						$	3,631,369					—						$	—
Other share purchase programs			—						—						26,735						7,874
Other purchases (2)			2,540,236						691,160						—						—
Total			15,313,540						$	4,322,529					26,735						$	7,874

(1)We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.

(2)During fiscal 2023, as authorized under our various employee equity share plans, we acquired Accenture plc Class A ordinary shares primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A ordinary shares under those plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase programs.

Cancellation of Treasury Shares

During fiscal 2023, we cancelled 8,828,496 Accenture plc Class A ordinary shares that were held as treasury shares and had an aggregate cost of $2,595,281. The effect of the cancellation of these treasury shares was recognized in Class A ordinary shares and Additional paid-in capital with the residual recorded in Retained earnings. There was no effect on total shareholders’ equity as a result of this cancellation.

Dividends

Our dividend activity during fiscal 2023 is as follows:

						Dividend Per Share						Accenture plc Class A Ordinary Shares												Accenture Canada Holdings Inc. Exchangeable Shares												Total Cash Outlay
Dividend Payment Date						Record Date						Cash Outlay						Record Date						Cash Outlay
November 15, 2022						$	1.12					October 13, 2022						$	704,938					October 11, 2022						$	629					$	705,567
February 15, 2023						1.12						January 12, 2023						707,156						January 10, 2023						866						708,022
May 15, 2023						1.12						April 13, 2023						707,002						April 11, 2023						740						707,742
August 15, 2023						1.12						July 13, 2023						705,339						July 11, 2023						724						706,063
Total Dividends																		$	2,824,435											$	2,959					$	2,827,394

The payment of cash dividends includes the net effect of $113,667 of additional restricted stock units being issued as a part of our share plans, which resulted in 391,233 restricted share units being issued.

Subsequent Events

On September 27, 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 October 12, 2023, payable on November 15, 2023.

On September 27, 2023, the Board of Directors of Accenture plc approved $4,000,000 in additional share repurchase authority, bringing Accenture’s total outstanding authority to $6,490,054.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-40

15. Commitments and Contingencies

Indemnifications and Guarantees

In the normal course of business and in conjunction with certain client engagements, we have entered into contractual arrangements through which we may be obligated to indemnify clients with respect to certain matters. These arrangements with clients can include provisions whereby we have joint and several liability in relation to the performance of certain contractual obligations along with third parties also providing services and products for a specific project. In addition, our consulting arrangements may include warranty provisions that our solutions will substantially operate in accordance with the applicable system requirements. Indemnification provisions are also included in arrangements under which we agree to hold the indemnified party harmless with respect to third-party claims related to such matters as title to assets sold or licensed or certain intellectual property rights.

Typically, we have contractual recourse against third parties for certain payments we made in connection with arrangements where third-party nonperformance has given rise to the client’s claim. Payments we made under any of the arrangements described above are generally conditioned on the client making a claim, which may be disputed by us typically under dispute resolution procedures specified in the particular arrangement. The limitations of liability under these arrangements may be expressly limited or may not be expressly specified in terms of time and/or amount.

As of August 31, 2023 and 2022, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $1,793,000 and $1,349,000, respectively, of which all but approximately $51,000 and $49,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. 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 August 31, 2023 and 2022, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,294,653 and $1,116,298, respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. In general, we would only be liable for these guarantees in the event we defaulted in performing our obligations under each contract, the probability of which we believe is remote.

To date, we have not been required to make any significant payment under any of the arrangements described above. We have assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations, indemnification provisions, letters of credit and surety bonds, and believe that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole.

Legal Contingencies

As of August 31, 2023, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. Based on the present status of these matters, except as otherwise noted below, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on our results of operations or financial condition.

On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc. (“Marriott”) in the U.S. District Court for the District of Maryland. The complaint alleges negligence by us, and seeks monetary damages, costs and attorneys’ fees and other related relief, relating to a data security incident involving unauthorized access to the reservations database of Starwood Worldwide Resorts, Inc. (“Starwood”), which was acquired by Marriott on September 23, 2016. Since 2009, we have provided certain IT infrastructure outsourcing services to Starwood. On October 27, 2020, the court issued an order largely denying Accenture’s motion to dismiss the claims against us. On May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we appealed. On August 17, 2023, the appeals court vacated the class certification and remanded the case to the district court for consideration of, among other things, the class action waiver signed by Starwood customer plaintiffs. 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.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-41

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. AFS is responding to an administrative subpoena and cooperating with DOJ’s investigation. This matter could subject us to adverse consequences as described in Part I, Item 1A, Risk Factors – “Our work with government clients exposes us to additional risks inherent in the government contracting environment”. We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-42

16. Segment Reporting

Operating segments are components of an enterprise where separate financial information is available and is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.

Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer. Our operating segments are managed separately because each operating segment represents a strategic business unit providing consulting and managed services to clients across different industries.

Our three reportable segments are our geographic markets, which are North America, Europe and Growth Markets. Amounts are attributed to geographic markets based on where clients are located. In the first quarter of fiscal 2024, our Middle East and Africa market units will move from Growth Markets to Europe, and the Europe market will be referred to as our Europe, Middle East and Africa (EMEA) geographic market.

Information regarding our geographic markets is as follows:

Fiscal 2023			North America						Europe						Growth Markets						Total
Revenues			$	30,295,587					$	21,285,122					$	12,531,036					$	64,111,745
Depreciation and amortization (1)			553,840						489,547						368,686						1,412,073
Operating income			4,473,701						2,332,678						2,003,510						8,809,889
Net assets as of August 31 (2)			4,091,045						2,527,587						1,006,414						7,625,046
Property & equipment, net			541,484						451,802						536,721						1,530,007
Fiscal 2022
Revenues			$	29,121,385					$	20,263,550					$	12,209,370					$	61,594,305
Depreciation and amortization (1)			484,894						452,825						381,467						1,319,186
Operating income			4,976,890						2,437,313						1,952,978						9,367,181
Net assets as of August 31 (2)			3,981,668						2,331,300						1,127,828						7,440,796
Property & equipment, net			598,116						430,179						630,845						1,659,140
Fiscal 2021
Revenues			$	23,701,341					$	16,749,484					$	10,082,564					$	50,533,389
Depreciation and amortization (1)			379,105						403,802						344,656						1,127,563
Operating income			3,907,883						2,236,462						1,477,184						7,621,529
Net assets as of August 31 (2)			3,141,318						1,564,660						862,755						5,568,733
Property & equipment, net			537,392						455,862						645,851						1,639,105

(1)Amounts include depreciation on property and equipment and amortization of intangible assets and deferred contract costs controlled by each reportable segment, as well as an allocation for amounts they do not directly control.

(2)We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs and current and non-current deferred revenues.

The accounting policies of the reportable segments are the same as those described in Note 1 (Summary of Significant Accounting Policies) to these Consolidated Financial Statements.

Our business in the United States represented 45% of our consolidated revenues during fiscal 2023, 2022 and 2021, respectively. No other country individually comprised 10% or more of our consolidated revenues during these periods. Business in Ireland, our country of domicile, represented approximately 1% of our consolidated revenues during fiscal 2023 and 2022 and 2% during fiscal 2021.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-43

We conduct business in Ireland and in the following countries that hold 10% or more of our total consolidated Property and equipment, net:

			August 31, 2023						August 31, 2022						August 31, 2021
United States			33		%				33		%				27		%
India			15						17						17
Ireland			2						6						7

Revenues by industry group and type of work are as follows:

			Fiscal
			2023						2022						2021
Industry Groups (1)
Communications, Media & Technology			$	11,452,914					$	12,199,797					$	9,801,349
Financial Services			12,131,531						11,810,582						9,932,523
Health & Public Service			12,560,458						11,226,464						9,498,234
Products			19,103,892						18,275,419						14,438,537
Resources			8,862,950						8,082,043						6,862,746
Total			$	64,111,745					$	61,594,305					$	50,533,389
Type of Work
Consulting			$	33,613,008					$	34,075,856					$	27,337,699
Managed Services (2)			30,498,737						27,518,449						23,195,690
Total			$	64,111,745					$	61,594,305					$	50,533,389

(1)Effective June 1, 2022, we revised the reporting of our industry groups for the movement of Aerospace & Defense from Communications, Media & Technology to Products. Prior period amounts have been reclassified to conform with the current period presentation.

(2)Previously referred to as our outsourcing business.

Table of Contents						Notes to Consolidated Financial Statements — (continued) (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE 2023 FORM 10-K						F-44

17. Quarterly Data (unaudited)

Fiscal 2023			First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Annual
Revenues			$	15,747,802					$	15,814,158					$	16,564,585					$	15,985,200					$	64,111,745
Cost of services			10,561,660						10,979,392						11,035,515						10,803,571						43,380,138
Operating income			2,593,100						1,944,581						2,359,288						1,912,920						8,809,889
Net income			1,996,300						1,550,683						2,048,335						1,408,212						7,003,530
Net income attributable to Accenture plc			1,964,950						1,523,648						2,009,996						1,372,963						6,871,557
Weighted average Class A ordinary shares:
—Basic			630,137,262						630,845,147						631,535,162						629,922,331						630,608,186
—Diluted			638,766,821						637,735,390						638,743,434						639,249,070						638,591,616
Earnings per Class A ordinary share:
—Basic			$	3.12					$	2.42					$	3.18					$	2.18					$	10.90
—Diluted			$	3.08					$	2.39					$	3.15					$	2.15					$	10.77

Fiscal 2022			First Quarter						Second Quarter						Third Quarter						Fourth Quarter						Annual
Revenues			$	14,965,153					$	15,046,693					$	16,158,803					$	15,423,656					$	61,594,305
Cost of services			10,048,364						10,522,734						10,844,069						10,477,599						41,892,766
Operating income			2,434,294						2,061,580						2,603,118						2,268,189						9,367,181
Net income			1,819,730						1,657,529						1,819,316						1,692,385						6,988,960
Net income attributable to Accenture plc			1,791,024						1,634,942						1,786,075						1,665,128						6,877,169
Weighted average Class A ordinary shares:
—Basic			632,280,932						633,956,712						632,749,442						632,095,422						632,762,710
—Diluted			644,922,661						644,127,093						641,004,741						640,914,760						642,839,181
Earnings per Class A ordinary share:
—Basic			$	2.83					$	2.58					$	2.82					$	2.63					$	10.87
—Diluted			$	2.78					$	2.54					$	2.79					$	2.60					$	10.71