Item 1. Financial Statements

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Item 1. Financial Statements

Consolidated Balance Sheets

February 29, 2024 and August 31, 2023


	February 29, 2024		August 31, 2023
ASSETS	(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	5,121,107	$	9,045,032
Short-term investments	4,540		4,575
Receivables and contract assets	13,080,504		12,227,186
Other current assets	2,122,670		2,105,138
Total current assets	20,328,821		23,381,931
NON-CURRENT ASSETS:
Contract assets	126,355		106,994
Investments	238,934		197,443
Property and equipment, net	1,458,836		1,530,007
Lease assets	2,635,038		2,637,479
Goodwill	17,947,306		15,573,003
Deferred contract costs	815,715		851,972
Deferred tax assets	4,098,881		4,154,878
Other non-current assets	3,657,585		2,811,598
Total non-current assets	30,978,650		27,863,374
TOTAL ASSETS	$	51,307,471	$	51,245,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings	$	111,141	$	104,810
Accounts payable	2,228,446		2,491,173
Deferred revenues	5,363,972		4,907,152
Accrued payroll and related benefits	5,955,341		7,506,030
Income taxes payable	420,452		720,778
Lease liabilities	682,553		690,417
Other accrued liabilities	1,374,109		1,588,678
Total current liabilities	16,136,014		18,009,038
NON-CURRENT LIABILITIES:
Long-term debt	71,635		43,093
Deferred revenues	647,020		653,954
Retirement obligation	1,607,405		1,595,638
Deferred tax liabilities	454,496		395,280
Income taxes payable	1,304,336		1,313,971
Lease liabilities	2,293,252		2,310,714
Other non-current liabilities	836,889		465,024
Total non-current liabilities	7,215,033		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 February 29, 2024 and August 31, 2023	57		57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 670,405,499 and 664,616,285 shares issued as of February 29, 2024 and August 31, 2023, respectively	15		15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 314,754 and 325,438 shares issued and outstanding as of February 29, 2024 and August 31, 2023, respectively	—		—
Restricted share units	1,863,338		2,403,374
Additional paid-in capital	14,555,758		12,778,782
Treasury shares, at cost: Ordinary, 40,000 shares as of February 29, 2024 and August 31, 2023; Class A ordinary, 41,577,466 and 36,351,137 shares as of February 29, 2024 and August 31, 2023, respectively	(8,790,812)		(7,062,512)
Retained earnings	21,151,637		19,316,224
Accumulated other comprehensive loss	(1,657,140)		(1,743,101)
Total Accenture plc shareholders’ equity	27,122,853		25,692,839
Noncontrolling interests	833,571		765,754
Total shareholders’ equity	27,956,424		26,458,593
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	51,307,471	$	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 and Six Months Ended February 29, 2024 and February 28, 2023

(Unaudited)


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
REVENUES:
Revenues	$	15,799,514	$	15,814,158	$	32,023,817	$	31,561,960
OPERATING EXPENSES:
Cost of services	10,921,045		10,979,392		21,697,407		21,541,052
Sales and marketing	1,631,185		1,563,567		3,341,076		3,113,586
General and administrative costs	1,085,448		1,082,228		2,118,947		2,125,251
Business optimization costs	115,409		244,390		255,073		244,390
Total operating expenses	13,753,087		13,869,577		27,412,503		27,024,279
OPERATING INCOME	2,046,427		1,944,581		4,611,314		4,537,681
Interest income	65,269		50,259		167,249		94,964
Interest expense	(10,305)		(11,634)		(24,800)		(18,914)
Other income (expense), net	(5,652)		(36,300)		(41,371)		(65,207)

INCOME BEFORE INCOME TAXES	2,095,739		1,946,906		4,712,392		4,548,524
Income tax expense	386,537		396,223		993,209		1,001,541
NET INCOME	1,709,202		1,550,683		3,719,183		3,546,983
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.	(1,675)		(1,604)		(3,691)		(3,689)
Net income attributable to noncontrolling interests – other	(32,668)		(25,431)		(67,189)		(54,696)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,674,859	$	1,523,648	$	3,648,303	$	3,488,598
Weighted average Class A ordinary shares:
Basic	629,016,555		630,845,147		628,488,831		630,485,134
Diluted	636,797,814		637,735,390		637,069,356		638,350,779
Earnings per Class A ordinary share:
Basic	$	2.66	$	2.42	$	5.80	$	5.53
Diluted	$	2.63	$	2.39	$	5.73	$	5.47
Cash dividends per share	$	1.29	$	1.12	$	2.58	$	2.24

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

(Unaudited)


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
NET INCOME	$	1,709,202	$	1,550,683	$	3,719,183	$	3,546,983
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation	(91,773)		112,625		(23,581)		196,793
Defined benefit plans	5,238		6,539		41,630		98,219
Cash flow hedges	56,610		(7,762)		67,912		(48,940)

OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC	(29,925)		111,402		85,961		246,072
Other comprehensive income (loss) attributable to noncontrolling interests	(2,257)		2,469		(372)		5,338
COMPREHENSIVE INCOME	$	1,677,020	$	1,664,554	$	3,804,772	$	3,798,393

COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,644,934	$	1,635,050	$	3,734,264	$	3,734,670
Comprehensive income attributable to noncontrolling interests	32,086		29,504		70,508		63,723
COMPREHENSIVE INCOME	$	1,677,020	$	1,664,554	$	3,804,772	$	3,798,393

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 February 29, 2024

(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 November 30, 2023	$	57	40	$	15	666,512	$	—	318	$	2,553,022	$	13,353,477	$	(8,032,018)	(39,560)	$	20,429,413	$	(1,627,215)	$	26,676,751	$	808,686	$	27,485,437
Net income																	1,674,859				1,674,859		34,343		1,709,202
Other comprehensive income (loss)																			(29,925)		(29,925)		(2,257)		(32,182)
Purchases of Class A shares												1,153		(1,318,412)		(3,742)					(1,317,259)		(1,153)		(1,318,412)

Share-based compensation expense										641,871											641,871				641,871
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(3)			(3,434)									(3,434)				(3,434)
Issuances of Class A shares for employee share programs						3,893				(1,369,402)		1,197,930		559,618		1,685	(103,022)				285,124		249		285,373
Dividends										37,847							(849,613)				(811,766)		(812)		(812,578)
Other, net												6,632									6,632		(5,485)		1,147
Balance as of February 29, 2024	$	57	40	$	15	670,405	$	—	315	$	1,863,338	$	14,555,758	$	(8,790,812)	(41,617)	$	21,151,637	$	(1,657,140)	$	27,122,853	$	833,571	$	27,956,424

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


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 February 28, 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 November 30, 2022	$	57	40	$	15	658,255	$	—	499	$	2,167,437	$	11,051,309	$	(5,169,967)	(28,850)	$	16,981,432	$	(2,055,672)	$	22,974,611	$	691,339	$	23,665,950
Net income																	1,523,648				1,523,648		27,035		1,550,683
Other comprehensive income (loss)																			111,402		111,402		2,469		113,871
Purchases of Class A shares												1,014		(1,117,535)		(4,085)					(1,116,521)		(1,014)		(1,117,535)

Share-based compensation expense										631,871		(1)									631,870				631,870
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(160)			(676)									(676)				(676)
Issuances of Class A shares for employee share programs						4,151				(1,193,792)		1,108,186		694,492		1,754	(267,284)				341,602		312		341,914
Dividends										30,639							(737,795)				(707,156)		(866)		(708,022)
Other, net												3,839									3,839		(24,616)		(20,777)
Balance as of February 28, 2023	$	57	40	$	15	662,406	$	—	339	$	1,636,155	$	12,163,671	$	(5,593,010)	(31,181)	$	17,500,001	$	(1,944,270)	$	23,762,619	$	694,659	$	24,457,278

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


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

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 29, 2024

(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																	3,648,303				3,648,303		70,880		3,719,183
Other comprehensive income (loss)																			85,961		85,961		(372)		85,589
Purchases of Class A shares												2,203		(2,506,701)		(7,552)					(2,504,498)		(2,203)		(2,506,701)

Share-based compensation expense										1,007,582		57,289									1,064,871				1,064,871
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(10)			(6,273)									(6,273)				(6,273)
Issuances of Class A shares for employee share programs						5,789				(1,614,744)		1,723,265		778,401		2,326	(124,773)				762,149		658		762,807
Dividends										67,126							(1,688,117)				(1,620,991)		(1,643)		(1,622,634)
Other, net												492									492		497		989
Balance as of February 29, 2024	$	57	40	$	15	670,405	$	—	315	$	1,863,338	$	14,555,758	$	(8,790,812)	(41,617)	$	21,151,637	$	(1,657,140)	$	27,122,853	$	833,571	$	27,956,424

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


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

Consolidated Shareholders’ Equity Statement — (continued)

For the Six Months Ended February 28, 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, 2022	$	57	40	$	15	664,561	$	—	501	$	2,091,382	$	10,679,180	$	(6,678,037)	(33,434)	$	18,203,842	$	(2,190,342)	$	22,106,097	$	640,991	$	22,747,088
Net income																	3,488,598				3,488,598		58,385		3,546,983
Other comprehensive income (loss)																			246,072		246,072		5,338		251,410
Purchases of Class A shares												2,318		(2,534,683)		(9,295)					(2,532,365)		(2,318)		(2,534,683)
Cancellation of treasury shares						(8,828)						(175,701)		2,595,281		8,828	(2,419,580)				—				—
Share-based compensation expense										1,001,365		55,974									1,057,339				1,057,339
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(162)			(2,230)									(2,230)				(2,230)
Issuances of Class A shares for employee share programs						6,673				(1,512,994)		1,599,816		1,024,429		2,720	(304,363)				806,888		733		807,621
Dividends										56,402							(1,468,496)				(1,412,094)		(1,495)		(1,413,589)
Other, net												4,314									4,314		(6,975)		(2,661)
Balance as of February 28, 2023	$	57	40	$	15	662,406	$	—	339	$	1,636,155	$	12,163,671	$	(5,593,010)	(31,181)	$	17,500,001	$	(1,944,270)	$	23,762,619	$	694,659	$	24,457,278

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


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

Consolidated Cash Flows Statements

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

(Unaudited)


	February 29, 2024		February 28, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	3,719,183	$	3,546,983
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	1,050,328		1,038,705
Share-based compensation expense	1,064,871		1,057,339


Deferred tax expense (benefit)	(34,140)		(92,295)
Other, net	(167,097)		57,334
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(647,335)		(358,519)
Other current and non-current assets	(627,563)		(535,273)
Accounts payable	(313,941)		(151,738)
Deferred revenues, current and non-current	432,849		419,313
Accrued payroll and related benefits	(1,540,799)		(1,713,468)
Income taxes payable, current and non-current	(309,203)		(110,828)
Other current and non-current liabilities	(27,559)		(332,044)
Net cash provided by (used in) operating activities	2,599,594		2,825,509
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment	(178,756)		(206,378)
Purchases of businesses and investments, net of cash acquired	(2,909,480)		(1,076,987)
Proceeds from the sale of businesses and investments	20,905		17,875

Other investing, net	3,653		5,119
Net cash provided by (used in) investing activities	(3,063,678)		(1,260,371)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	762,807		807,621
Purchases of shares	(2,512,974)		(2,536,913)
Proceeds from (repayments of) debt, net	(12,196)		(408)
Cash dividends paid	(1,622,634)		(1,413,589)
Other financing, net	(32,657)		(48,912)
Net cash provided by (used in) financing activities	(3,417,654)		(3,192,201)
Effect of exchange rate changes on cash and cash equivalents	(42,187)		(23,983)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(3,923,925)		(1,651,046)
CASH AND CASH EQUIVALENTS, beginning of period	9,045,032		7,889,833
CASH AND CASH EQUIVALENTS, end of period	$	5,121,107	$	6,238,787
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	1,487,004	$	1,318,515

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						11

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 and six months ended February 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2024.

Allowance for Credit Losses—Client Receivables and Contract Assets

As of February 29, 2024 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $23,887 and $26,343, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

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:


	February 29, 2024		August 31, 2023
Equity method investments	$	24,511	$	23,985
Investments without readily determinable fair values	214,423		173,458
Total non-current investments	$	238,934	$	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						12

Depreciation and Amortization

As of February 29, 2024 and August 31, 2023, total accumulated depreciation was $2,730,911 and $2,574,685, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and six months ended February 29, 2024 and February 28, 2023, respectively.


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Depreciation	$	134,997	$	137,742	$	268,242	$	281,791
Amortization - Deferred transition	92,865		85,160		191,356		155,600
Amortization - Intangible assets	119,625		120,212		231,256		229,281
Operating lease cost	173,215		184,226		348,229		364,728
Other	8,226		5,136		11,245		7,305
Total depreciation, amortization and other	$	528,928	$	532,476	$	1,050,328	$	1,038,705

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 and six months ended February 29, 2024 and February 28, 2023, respectively, were as follows:


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023

North America	$	4,689	$	176,980	$	50,618	$	176,980
EMEA (1)	85,561		40,960		156,365		40,960
Growth Markets (1)	25,159		26,450		48,090		26,450
Total business optimization costs	$	115,409	$	244,390	$	255,073	$	244,390

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

New Accounting Pronouncements

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures.

On December 14, 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. 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						13

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 $27 billion and $26 billion as of February 29, 2024 and August 31, 2023, respectively. Our remaining performance obligations represent the amount of transaction price for which work has not been performed and revenue has not been recognized. 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 51% of our remaining performance obligations as of February 29, 2024 as revenue in fiscal 2024, an additional 26% in fiscal 2025, and the balance thereafter.

Contract Estimates

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

Contract Balances

Deferred transition revenues were $647,020 and $653,954 as of February 29, 2024 and August 31, 2023, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $815,715 and $851,972 as of February 29, 2024 and August 31, 2023, respectively, and are included in Deferred contract costs. Generally, deferred transition costs are recoverable under the contract in the event of early termination and are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the related contract are not sufficient to recover the carrying amount of contract assets.

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


	As of February 29, 2024		As of August 31, 2023
Receivables	$	11,374,099	$	10,690,713
Contract assets (current)	1,706,405		1,536,473
Receivables and contract assets, net of allowance (current)	13,080,504		12,227,186
Contract assets (non-current)	126,355		106,994
Deferred revenues (current)	5,363,972		4,907,152
Deferred revenues (non-current)	647,020		653,954

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

Revenues recognized during the three and six months ended February 29, 2024 that were included in Deferred revenues as of November 30, 2023 and August 31, 2023 were $2.5 billion and $3.6 billion, respectively. Revenues recognized during the three and six months ended February 28, 2023 that were included in Deferred revenues as of November 30, 2022 and August 31, 2022 were $2.5 billion and $3.3 billion, respectively.


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

3. Earnings Per Share

Basic and diluted earnings per share are calculated as follows:


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Basic earnings per share
Net income attributable to Accenture plc	$	1,674,859	$	1,523,648	$	3,648,303	$	3,488,598
Basic weighted average Class A ordinary shares	629,016,555		630,845,147		628,488,831		630,485,134
Basic earnings per share	$	2.66	$	2.42	$	5.80	$	5.53
Diluted earnings per share
Net income attributable to Accenture plc	$	1,674,859	$	1,523,648	$	3,648,303	$	3,488,598
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)	1,675		1,604		3,691		3,689
Net income for diluted earnings per share calculation	$	1,676,534	$	1,525,252	$	3,651,994	$	3,492,287
Basic weighted average Class A ordinary shares	629,016,555		630,845,147		628,488,831		630,485,134
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)	629,053		664,218		635,356		666,479
Diluted effect of employee compensation related to Class A ordinary shares	6,804,596		5,865,118		7,665,966		6,861,930
Diluted effect of share purchase plans related to Class A ordinary shares	347,610		360,907		279,203		337,236
Diluted weighted average Class A ordinary shares	636,797,814		637,735,390		637,069,356		638,350,779
Diluted earnings per share	$	2.63	$	2.39	$	5.73	$	5.47

(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						15

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				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Foreign currency translation
Beginning balance	$	(1,442,440)	$	(1,768,152)	$	(1,510,632)	$	(1,852,320)
Foreign currency translation	(93,076)		117,726		(25,287)		204,710
Income tax benefit (expense)	(1,014)		(2,631)		1,226		(2,631)
Portion attributable to noncontrolling interests	2,317		(2,470)		480		(5,286)
Foreign currency translation, net of tax	(91,773)		112,625		(23,581)		196,793
Ending balance	(1,534,213)		(1,655,527)		(1,534,213)		(1,655,527)

Defined benefit plans
Beginning balance	(190,111)		(257,091)		(226,503)		(348,771)



Reclassifications into net periodic pension and post-retirement expense	6,514		8,719		50,808		134,890
Income tax benefit (expense)	(1,272)		(2,174)		(9,137)		(36,568)
Portion attributable to noncontrolling interests	(4)		(6)		(41)		(103)
Defined benefit plans, net of tax	5,238		6,539		41,630		98,219
Ending balance	(184,873)		(250,552)		(184,873)		(250,552)

Cash flow hedges
Beginning balance	5,336		(30,429)		(5,966)		10,749
Unrealized gain (loss)	73,761		(32,837)		97,375		(92,716)
Reclassification adjustments into Cost of services	(4,846)		18,000		(15,446)		20,606
Income tax benefit (expense)	(12,249)		7,068		(13,950)		23,119
Portion attributable to noncontrolling interests	(56)		7		(67)		51
Cash flow hedges, net of tax	56,610		(7,762)		67,912		(48,940)
Ending balance (1)	61,946		(38,191)		61,946		(38,191)










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

(1)As of February 29, 2024, $54,434 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.


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						16

5. Business Combinations

During the six months ended February 29, 2024, we completed individually immaterial acquisitions for total consideration of $2,900,194, net of cash acquired. 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		February 29, 2024
North America	$	8,876,050	$	1,650,701	$	1,885	$	10,528,636
EMEA (1)	5,152,149		634,695		(27,923)		5,758,921
Growth Markets (1)	1,544,804		127,179		(12,234)		1,659,749
Total	$	15,573,003	$	2,412,575	$	(38,272)	$	17,947,306

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						February 29, 2024
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	$	3,272,419	$	(1,136,317)	$	2,136,102
Technology	289,989		(141,022)		148,967		327,808		(160,826)		166,982
Patents	123,579		(70,472)		53,107		122,112		(70,797)		51,315
Other	65,138		(36,908)		28,230		131,673		(33,513)		98,160
Total	$	3,320,963	$	(1,248,006)	$	2,072,957	$	3,854,012	$	(1,401,453)	$	2,452,559

Total amortization related to our intangible assets was $119,625 and $231,256 for the three and six months ended February 29, 2024, respectively. Total amortization related to our intangible assets was $120,212 and $229,281 for the three and six months ended February 28, 2023, respectively. Estimated future amortization related to intangible assets held as of February 29, 2024 is as follows:


Fiscal Year	Estimated Amortization
Remainder of 2024	$	252,239
2025	477,355
2026	427,761
2027	357,839
2028	330,181
Thereafter	607,184
Total	$	2,452,559


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						17

7. Shareholders’ Equity

Dividends

Our dividend activity during the six months ended February 29, 2024 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
February 15, 2024	1.29			January 18, 2024		811,766			January 16, 2024		812		812,578

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

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

Subsequent Event

On March 20, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.29 per share on our Class A ordinary shares for shareholders of record at the close of business on April 11, 2024 payable on May 15, 2024.


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

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 and six months ended February 29, 2024 and February 28, 2023, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $26,056 and $46,336 for the three and six months ended February 29, 2024, respectively, and net gains of $7,431 and net losses of $22,260 for the three and six months ended February 28, 2023, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

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


	February 29, 2024		August 31, 2023
Assets
Cash Flow Hedges
Other current assets	$	71,862	$	52,995
Other non-current assets	56,820		44,739
Other Derivatives
Other current assets	9,865		6,686
Total assets	$	138,547	$	104,420
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	17,428	$	50,020
Other non-current liabilities	6,834		26,076
Other Derivatives
Other accrued liabilities	14,510		38,645
Total liabilities	$	38,772	$	114,741
Total fair value	$	99,775	$	(10,321)
Total notional value	$	13,860,671	$	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:


	February 29, 2024		August 31, 2023
Net derivative assets	$	109,330	$	50,528
Net derivative liabilities	9,555		60,849
Total fair value	$	99,775	$	(10,321)


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						19

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 February 29, 2024 and February 28, 2023 were 18.4% and 20.4%, respectively. The lower effective tax rate for the three months ended February 29, 2024 was primarily due to higher tax benefits from share-based payments. Our effective tax rates for the six months ended February 29, 2024 and February 28, 2023 were 21.1% and 22.0%, respectively.

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 February 29, 2024 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $2,008,000 and $1,793,000, respectively, of which all but approximately $60,000 and $51,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of February 29, 2024 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,291,091 and $1,294,653, respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. 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 February 29, 2024, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. 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 are appealing the district court's decision. We continue to believe the lawsuit is without merit and we will vigorously defend it. At present, we do not believe any losses from this matter will have a material effect on our results of operations or financial condition.


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						20

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 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				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Geographic Markets
North America	$	7,376,812	$	7,397,874	$	14,939,714	$	15,020,694
EMEA	5,598,850		5,554,682		11,402,492		10,867,581
Growth Markets	2,823,852		2,861,602		5,681,611		5,673,685
Total Revenues	$	15,799,514	$	15,814,158	$	32,023,817	$	31,561,960
Industry Groups
Communications, Media & Technology	$	2,654,137	$	2,884,802	$	5,323,585	$	5,865,005
Financial Services	2,808,930		3,002,867		5,842,508		5,966,263
Health & Public Service	3,334,039		3,023,595		6,711,505		6,023,614
Products	4,761,838		4,718,572		9,621,825		9,384,360
Resources	2,240,570		2,184,322		4,524,394		4,322,718
Total Revenues	$	15,799,514	$	15,814,158	$	32,023,817	$	31,561,960
Type of Work
Consulting	$	8,021,034	$	8,278,763	$	16,477,540	$	16,723,130
Managed Services	7,778,480		7,535,395		15,546,277		14,838,830
Total Revenues	$	15,799,514	$	15,814,158	$	32,023,817	$	31,561,960


	Operating Income
	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Geographic Markets
North America	$	1,060,376	$	823,858	$	2,317,084	$	2,133,741
EMEA	529,012		615,403		1,352,613		1,342,286
Growth Markets	457,039		505,320		941,617		1,061,654
Total Operating Income	$	2,046,427	$	1,944,581	$	4,611,314	$	4,537,681


Table of Contents
ACCENTURE FORM 10-Q						Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21

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