Item 1. Financial Statements

Consolidated Balance Sheets

November 30, 2023 and August 31, 2023

			November 30, 2023						August 31, 2023
ASSETS			(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents			$	7,140,841					$	9,045,032
Short-term investments			4,597						4,575
Receivables and contract assets			13,241,359						12,227,186
Other current assets			2,668,779						2,105,138
Total current assets			23,055,576						23,381,931
NON-CURRENT ASSETS:
Contract assets			121,563						106,994
Investments			198,074						197,443
Property and equipment, net			1,467,896						1,530,007
Lease assets			2,576,198						2,637,479
Goodwill			16,236,442						15,573,003
Deferred contract costs			827,608						851,972
Deferred tax assets			4,165,605						4,154,878
Other non-current assets			2,882,392						2,811,598
Total non-current assets			28,475,778						27,863,374
TOTAL ASSETS			$	51,531,354					$	51,245,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings			$	104,819					$	104,810
Accounts payable			2,574,700						2,491,173
Deferred revenues			4,459,593						4,907,152
Accrued payroll and related benefits			7,260,479						7,506,030
Income taxes payable			755,929						720,778
Lease liabilities			683,628						690,417
Other accrued liabilities			1,441,090						1,588,678
Total current liabilities			17,280,238						18,009,038
NON-CURRENT LIABILITIES:
Long-term debt			42,309						43,093
Deferred revenues			634,981						653,954
Retirement obligation			1,586,945						1,595,638
Deferred tax liabilities			415,386						395,280
Income taxes payable			1,374,062						1,313,971
Lease liabilities			2,249,466						2,310,714
Other non-current liabilities			462,530						465,024
Total non-current liabilities			6,765,679						6,777,674
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of November 30, 2023 and August 31, 2023			57						57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 666,511,551 and 664,616,285 shares issued as of November 30, 2023 and August 31, 2023, respectively			15						15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 318,441 and 325,438 shares issued and outstanding as of November 30, 2023 and August 31, 2023, respectively			—						—
Restricted share units			2,553,022						2,403,374
Additional paid-in capital			13,353,477						12,778,782
Treasury shares, at cost: Ordinary, 40,000 shares as of November 30, 2023 and August 31, 2023; Class A ordinary, 39,519,697 and 36,351,137 shares as of November 30, 2023 and August 31, 2023, respectively			(8,032,018)						(7,062,512)
Retained earnings			20,429,413						19,316,224
Accumulated other comprehensive loss			(1,627,215)						(1,743,101)
Total Accenture plc shareholders’ equity			26,676,751						25,692,839
Noncontrolling interests			808,686						765,754
Total shareholders’ equity			27,485,437						26,458,593
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	51,531,354					$	51,245,305

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 FORM 10-Q						4

Consolidated Income Statements

For the Three Months Ended November 30, 2023 and 2022

(Unaudited)

			2023						2022
REVENUES:
Revenues			$	16,224,303					$	15,747,802
OPERATING EXPENSES:
Cost of services			10,776,362						10,561,660
Sales and marketing			1,709,891						1,550,019
General and administrative costs			1,033,499						1,043,023
Business optimization costs			139,664						—
Total operating expenses			13,659,416						13,154,702
OPERATING INCOME			2,564,887						2,593,100
Interest income			101,980						44,705
Interest expense			(14,495)						(7,280)
Other income (expense), net			(35,719)						(28,907)
INCOME BEFORE INCOME TAXES			2,616,653						2,601,618
Income tax expense			606,672						605,318
NET INCOME			2,009,981						1,996,300
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.			(2,016)						(2,085)
Net income attributable to noncontrolling interests – other			(34,521)						(29,265)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC			$	1,973,444					$	1,964,950
Weighted average Class A ordinary shares:
Basic			627,996,111						630,137,262
Diluted			637,398,361						638,766,821
Earnings per Class A ordinary share:
Basic			$	3.14					$	3.12
Diluted			$	3.10					$	3.08
Cash dividends per share			$	1.29					$	1.12

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 FORM 10-Q						5

Consolidated Statements of Comprehensive Income

For the Three Months Ended November 30, 2023 and 2022

(Unaudited)

			2023						2022
NET INCOME			$	2,009,981					$	1,996,300
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation			68,192						84,168
Defined benefit plans			36,392						91,680
Cash flow hedges			11,302						(41,178)
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC			115,886						134,670
Other comprehensive income (loss) attributable to noncontrolling interests			1,885						2,869
COMPREHENSIVE INCOME			$	2,127,752					$	2,133,839
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC			$	2,089,330					$	2,099,620
Comprehensive income attributable to noncontrolling interests			38,422						34,219
COMPREHENSIVE INCOME			$	2,127,752					$	2,133,839

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 FORM 10-Q						6

Consolidated Shareholders’ Equity Statement

For the Three Months Ended November 30, 2023

(Unaudited)

			Ordinary Shares												Class A Ordinary Shares												Class X Ordinary Shares												Restricted Share Units						Additional Paid-in Capital						Treasury Shares												Retained Earnings						Accumulated Other Comprehensive Loss						Total Accenture plc Shareholders’ Equity						Noncontrolling Interests						Total Shareholders’ Equity
			$						No. Shares						$						No. Shares						$						No. Shares												$						No. Shares
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
Net income																																																															1,973,444												1,973,444						36,537						2,009,981
Other comprehensive income (loss)																																																																					115,886						115,886						1,885						117,771
Purchases of Class A shares																																													1,050						(1,188,289)						(3,810)																		(1,187,239)						(1,050)						(1,188,289)
Share-based compensation expense																																							365,711						57,289																														423,000												423,000
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares																																	(7)												(2,839)																														(2,839)												(2,839)
Issuances of Class A shares for employee share programs																					1,896																		(245,342)						525,335						218,783						641						(21,751)												477,025						409						477,434
Dividends																																							29,279																								(838,504)												(809,225)						(831)						(810,056)
Other, net																																													(6,140)																														(6,140)						5,982						(158)
Balance as of November 30, 2023			$	57					40						$	15					666,512						$	—					318						$	2,553,022					$	13,353,477					$	(8,032,018)					(39,560)						$	20,429,413					$	(1,627,215)					$	26,676,751					$	808,686					$	27,485,437

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars and share amounts)
ACCENTURE FORM 10-Q						7

Consolidated Shareholders’ Equity Statement — (continued)

For the Three Months Ended November 30, 2022

(Unaudited)

			Ordinary Shares												Class A Ordinary Shares												Class X Ordinary Shares												Restricted Share Units						Additional Paid-in Capital						Treasury Shares												Retained Earnings						Accumulated Other Comprehensive Loss						Total Accenture plc Shareholders’ Equity						Noncontrolling Interests						Total Shareholders’ Equity
			$						No. Shares						$						No. Shares						$						No. Shares												$						No. Shares
Balance as of August 31, 2022			$	57					40						$	15					664,561						$	—					501						$	2,091,382					$	10,679,180					$	(6,678,037)					(33,434)						$	18,203,842					$	(2,190,342)					$	22,106,097					$	640,991					$	22,747,088
Net income																																																															1,964,950												1,964,950						31,350						1,996,300
Other comprehensive income (loss)																																																																					134,670						134,670						2,869						137,539
Purchases of Class A shares																																													1,304						(1,417,148)						(5,210)																		(1,415,844)						(1,304)						(1,417,148)
Cancellation of treasury shares																					(8,828)																								(175,701)						2,595,281						8,828						(2,419,580)												—												—
Share-based compensation expense																																							369,494						55,975																														425,469												425,469
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares																																	(2)												(1,554)																														(1,554)												(1,554)
Issuances of Class A shares for employee share programs																					2,522																		(319,202)						491,630						329,937						966						(37,079)												465,286						421						465,707
Dividends																																							25,763																								(730,701)												(704,938)						(629)						(705,567)
Other, net																																													475																														475						17,641						18,116
Balance as of November 30, 2022			$	57					40						$	15					658,255						$	—					499						$	2,167,437					$	11,051,309					$	(5,169,967)					(28,850)						$	16,981,432					$	(2,055,672)					$	22,974,611					$	691,339					$	23,665,950

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

Table of Contents						Consolidated Financial Statements (In thousands of U.S. dollars)
ACCENTURE FORM 10-Q						8

Consolidated Cash Flows Statements

For the Three Months Ended November 30, 2023 and 2022

(Unaudited)

			2023						2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	2,009,981					$	1,996,300
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other			521,400						506,229
Share-based compensation expense			423,000						425,469
Deferred tax expense (benefit)			(24,371)						(54,537)
Other, net			6,795						(45,940)
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current			(836,231)						(609,433)
Other current and non-current assets			(658,647)						(307,960)
Accounts payable			48,728						(202,182)
Deferred revenues, current and non-current			(510,391)						(270,988)
Accrued payroll and related benefits			(273,763)						(771,743)
Income taxes payable, current and non-current			85,142						115,187
Other current and non-current liabilities			(293,092)						(285,004)
Net cash provided by (used in) operating activities			498,551						495,398
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(68,933)						(98,830)
Purchases of businesses and investments, net of cash acquired			(788,025)						(686,460)
Proceeds from the sale of businesses and investments			—						596
Other investing, net			1,528						2,620
Net cash provided by (used in) investing activities			(855,430)						(782,074)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares			477,434						465,707
Purchases of shares			(1,191,128)						(1,418,702)
Proceeds from (repayments of) debt, net			(8,481)						(1,611)
Cash dividends paid			(810,056)						(705,567)
Other financing, net			(19,682)						(16,687)
Net cash provided by (used in) financing activities			(1,551,913)						(1,676,860)
Effect of exchange rate changes on cash and cash equivalents			4,601						(26,594)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(1,904,191)						(1,990,130)
CASH AND CASH EQUIVALENTS, beginning of period			9,045,032						7,889,833
CASH AND CASH EQUIVALENTS, end of period			$	7,140,841					$	5,899,703
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net			$	563,359					$	563,526

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 FORM 10-Q						9

1. Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on October 12, 2023.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which 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 differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2024.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of November 30, 2023 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $24,210 and $26,343, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

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).

Our non-current investments are as follows:

			November 30, 2023						August 31, 2023
Equity method investments			$	23,778					$	23,985
Investments without readily determinable fair values			174,296						173,458
Total non-current investments			$	198,074					$	197,443

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.

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 FORM 10-Q						10

Depreciation and Amortization

As of November 30, 2023 and August 31, 2023, total accumulated depreciation was $2,660,216 and $2,574,685, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three months ended November 30, 2023 and 2022, respectively.

			Three Months Ended
			November 30, 2023						November 30, 2022
Depreciation			$	133,245					$	144,049
Amortization - Deferred transition			98,491						70,440
Amortization - Intangible assets			111,631						109,069
Operating lease cost			175,014						180,502
Other			3,019						2,169
Total depreciation, amortization and other			$	521,400					$	506,229

Business Optimization

During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs. We recorded $1.1 billion in fiscal 2023 related to these actions and expect to record approximately $450 million in fiscal 2024 for a total of $1.5 billion, primarily related to employee severance. The actual amount and timing of severance and other personnel costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.

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

			Three Months Ended
			November 30, 2023
North America			$	45,929
EMEA (1)			70,804
Growth Markets (1)			22,931
Total business optimization costs			$	139,664

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

New Accounting Pronouncement

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU will be effective beginning with our annual fiscal 2026 financial statements and allows for adoption on a prospective basis, with a retrospective option. We are in the process of assessing the impacts and method of adoption. This ASU will impact our income tax disclosures, but not our Consolidated Financial Statements.

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 FORM 10-Q						11

2. Revenues

Disaggregation of Revenue

See Note 11 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $26 billion as of November 30, 2023 and August 31, 2023, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. 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 60% of our remaining performance obligations as of November 30, 2023 as revenue in fiscal 2024, an additional 20% in fiscal 2025, and the balance thereafter.

Contract Estimates

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

Contract Balances

Deferred transition revenues were $634,981 and $653,954 as of November 30, 2023 and August 31, 2023, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $827,608 and $851,972 as of November 30, 2023 and August 31, 2023, respectively, and are included in Deferred contract costs. Generally, deferred amounts are protected in the event of early termination of the contract and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets.

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

			As of November 30, 2023						As of August 31, 2023
Receivables			$	11,467,109					$	10,690,713
Contract assets (current)			1,774,250						1,536,473
Receivables and contract assets, net of allowance (current)			13,241,359						12,227,186
Contract assets (non-current)			121,563						106,994
Deferred revenues (current)			4,459,593						4,907,152
Deferred revenues (non-current)			634,981						653,954

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

Revenues recognized during the three months ended November 30, 2023 that were included in Deferred revenues as of August 31, 2023 were $2.8 billion. Revenues recognized during the three months ended November 30, 2022 that were included in Deferred revenues as of August 31, 2022 were $2.5 billion.

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 FORM 10-Q						12

3. Earnings Per Share

Basic and diluted earnings per share are calculated as follows:

			Three Months Ended
			November 30, 2023						November 30, 2022
Basic earnings per share
Net income attributable to Accenture plc			$	1,973,444					$	1,964,950
Basic weighted average Class A ordinary shares			627,996,111						630,137,262
Basic earnings per share			$	3.14					$	3.12
Diluted earnings per share
Net income attributable to Accenture plc			$	1,973,444					$	1,964,950
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)			2,016						2,085
Net income for diluted earnings per share calculation			$	1,975,460					$	1,967,035
Basic weighted average Class A ordinary shares			627,996,111						630,137,262
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)			641,659						668,715
Diluted effect of employee compensation related to Class A ordinary shares			8,492,332						7,847,787
Diluted effect of share purchase plans related to Class A ordinary shares			268,259						113,057
Diluted weighted average Class A ordinary shares			637,398,361						638,766,821
Diluted earnings per share			$	3.10					$	3.08

(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 (In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
ACCENTURE FORM 10-Q						13

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:

			Three Months Ended
			November 30, 2023						November 30, 2022
Foreign currency translation
Beginning balance			$	(1,510,632)					$	(1,852,320)
Foreign currency translation			67,789						86,984
Income tax benefit (expense)			2,240						—
Portion attributable to noncontrolling interests			(1,837)						(2,816)
Foreign currency translation, net of tax			68,192						84,168
Ending balance			(1,442,440)						(1,768,152)
Defined benefit plans
Beginning balance			(226,503)						(348,771)
Reclassifications into net periodic pension and post-retirement expense			44,294						126,171
Income tax benefit (expense)			(7,865)						(34,394)
Portion attributable to noncontrolling interests			(37)						(97)
Defined benefit plans, net of tax			36,392						91,680
Ending balance			(190,111)						(257,091)
Cash flow hedges
Beginning balance			(5,966)						10,749
Unrealized gain (loss)			23,614						(59,879)
Reclassification adjustments into Cost of services			(10,600)						2,606
Income tax benefit (expense)			(1,701)						16,051
Portion attributable to noncontrolling interests			(11)						44
Cash flow hedges, net of tax			11,302						(41,178)
Ending balance (1)			5,336						(30,429)
Accumulated other comprehensive loss			$	(1,627,215)					$	(2,055,672)

(1)As of November 30, 2023, $13,741 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.

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 FORM 10-Q						14

5. Business Combinations

During the three months ended November 30, 2023, we completed individually immaterial acquisitions for total consideration of $781,525, net of cash acquired. The pro forma effects of these acquisitions on our operations were not material.

6. Goodwill and Intangible Assets

Goodwill

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

			August 31, 2023						Additions/ Adjustments						Foreign Currency Translation						November 30, 2023
North America			$	8,876,050					$	445,211					$	1,699					$	9,322,960
EMEA (1)			5,152,149						152,424						22,123						5,326,696
Growth Markets (1)			1,544,804						31,702						10,280						1,586,786
Total			$	15,573,003					$	629,337					$	34,102					$	16,236,442

(1)Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market is now referred to as our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.

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, 2023																		November 30, 2023
Intangible Asset Class						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Customer-related						$	2,842,257					$	(999,604)					$	1,842,653					$	2,979,421					$	(1,062,036)					$	1,917,385
Technology						289,989						(141,022)						148,967						283,008						(147,420)						135,588
Patents						123,579						(70,472)						53,107						123,058						(70,256)						52,802
Other						65,138						(36,908)						28,230						75,524						(36,995)						38,529
Total						$	3,320,963					$	(1,248,006)					$	2,072,957					$	3,461,011					$	(1,316,707)					$	2,144,304

Total amortization related to our intangible assets was $111,631 and $109,069 for the three months ended November 30, 2023 and 2022, respectively. Estimated future amortization related to intangible assets held as of November 30, 2023 is as follows:

Fiscal Year						Estimated Amortization
Remainder of 2024						$	340,888
2025						422,296
2026						372,627
2027						302,269
2028						270,412
Thereafter						435,812
Total						$	2,144,304

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ACCENTURE FORM 10-Q						15

7. Shareholders’ Equity

Dividends

Our dividend activity during the three months ended November 30, 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, 2023						$	1.29					October 12, 2023						$	809,225					October 10, 2023						$	831					$	810,056

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

Subsequent Event

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

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8. Financial Instruments

Derivatives

In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.

Cash Flow Hedges

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2023 and 2022, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $20,280 and $29,691 for the three months ended November 30, 2023 and 2022, respectively. 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:

			November 30, 2023						August 31, 2023
Assets
Cash Flow Hedges
Other current assets			$	51,060					$	52,995
Other non-current assets			40,640						44,739
Other Derivatives
Other current assets			57,358						6,686
Total assets			$	149,058					$	104,420
Liabilities
Cash Flow Hedges
Other accrued liabilities			$	37,319					$	50,020
Other non-current liabilities			18,952						26,076
Other Derivatives
Other accrued liabilities			12,252						38,645
Total liabilities			$	68,523					$	114,741
Total fair value			$	80,535					$	(10,321)
Total notional value			$	12,439,169					$	13,390,031

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:

			November 30, 2023						August 31, 2023
Net derivative assets			$	101,420					$	50,528
Net derivative liabilities			20,885						60,849
Total fair value			$	80,535					$	(10,321)

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9. Income Taxes

We apply an estimated annual effective tax rate to our year-to-date operating results to determine the interim provision for income tax expense. In addition, we recognize taxes related to unusual or infrequent items or resulting from a change in judgment regarding a position taken in a prior year as discrete items in the interim period in which the event occurs.

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

10. 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.

As of November 30, 2023 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $1,929,000 and $1,793,000, respectively, of which all but approximately $52,000 and $51,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of November 30, 2023 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,348,671 and $1,294,653, respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. 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 November 30, 2023, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. Based on the present status of these matters, 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 May 3, 2022, the court issued an order granting in part the plaintiffs’ motion for class certification, which we appealed. On August 17, 2023, the appeals court vacated the class certification and remanded the case to the district court for consideration of, among other things, the class action waiver signed by Starwood customer plaintiffs. On November 29, 2023, the district court reinstated the classes previously certified by the court in May 2022. We have filed a petition to appeal. We continue to believe the lawsuit is without merit and we will vigorously defend it. At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition.

After Accenture Federal Services (“AFS”) made a voluntary disclosure to the U.S. government, the U.S. Department of Justice (“DOJ”) initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to

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 FORM 10-Q						18

an assessor who was evaluating on behalf of the U.S. government an AFS service offering and whether the service offering fully implemented required federal security controls. AFS is responding to an administrative subpoena and cooperating with DOJ’s investigation. This matter could subject us to adverse consequences as described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended August 31, 2023 – “Our work with government clients exposes us to additional risks inherent in the government contracting environment”. We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.

11. Segment Reporting

Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market is now referred to as our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts below have been reclassified to conform with the current period presentation.

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

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

			Revenues
			Three Months Ended
			November 30, 2023						November 30, 2022
Geographic Markets
North America			$	7,562,902					$	7,622,820
EMEA			5,803,642						5,312,899
Growth Markets			2,857,759						2,812,083
Total Revenues			$	16,224,303					$	15,747,802
Industry Groups
Communications, Media & Technology			$	2,669,448					$	2,980,203
Financial Services			3,033,578						2,963,396
Health & Public Service			3,377,466						3,000,019
Products			4,859,987						4,665,788
Resources			2,283,824						2,138,396
Total Revenues			$	16,224,303					$	15,747,802
Type of Work
Consulting			$	8,456,506					$	8,444,367
Managed Services			7,767,797						7,303,435
Total Revenues			$	16,224,303					$	15,747,802

			Operating Income
			Three Months Ended
			November 30, 2023						November 30, 2022
Geographic Markets
North America			$	1,256,708					$	1,309,883
EMEA			823,601						726,883
Growth Markets			484,578						556,334
Total Operating Income			$	2,564,887					$	2,593,100

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ACCENTURE FORM 10-Q						Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19