Item 1. Financial Statements

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Item 1. Financial Statements

Consolidated Balance Sheets

May 31, 2024 and August 31, 2023


	May 31, 2024		August 31, 2023
ASSETS	(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	5,537,217	$	9,045,032
Short-term investments	4,878		4,575
Receivables and contract assets	13,199,388		12,227,186
Other current assets	2,333,935		2,105,138
Total current assets	21,075,418		23,381,931
NON-CURRENT ASSETS:
Contract assets	119,281		106,994
Investments	231,281		197,443
Property and equipment, net	1,451,599		1,530,007
Lease assets	2,587,408		2,637,479
Goodwill	19,842,707		15,573,003
Deferred contract costs	834,045		851,972
Deferred tax assets	4,074,545		4,154,878
Intangibles	2,749,965		2,072,957
Other non-current assets	1,175,070		738,641
Total non-current assets	33,065,901		27,863,374
TOTAL ASSETS	$	54,141,319	$	51,245,305
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings	$	1,610,025	$	104,810
Accounts payable	2,251,330		2,491,173
Deferred revenues	5,299,334		4,907,152
Accrued payroll and related benefits	6,416,460		7,506,030
Income taxes payable	557,561		720,778
Lease liabilities	680,484		690,417
Other accrued liabilities	1,392,559		1,588,678
Total current liabilities	18,207,753		18,009,038
NON-CURRENT LIABILITIES:
Long-term debt	68,878		43,093
Deferred revenues	621,251		653,954
Retirement obligation	1,629,907		1,595,638
Deferred tax liabilities	516,745		395,280
Income taxes payable	1,389,233		1,313,971
Lease liabilities	2,242,156		2,310,714
Other non-current liabilities	845,654		465,024
Total non-current liabilities	7,313,824		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 May 31, 2024 and August 31, 2023	57		57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 671,948,015 and 664,616,285 shares issued as of May 31, 2024 and August 31, 2023, respectively	15		15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 308,754 and 325,438 shares issued and outstanding as of May 31, 2024 and August 31, 2023, respectively	—		—
Restricted share units	2,242,122		2,403,374
Additional paid-in capital	15,013,157		12,778,782
Treasury shares, at cost: Ordinary, 40,000 shares as of May 31, 2024 and August 31, 2023; Class A ordinary, 45,326,443 and 36,351,137 shares as of May 31, 2024 and August 31, 2023, respectively	(9,997,842)		(7,062,512)
Retained earnings	22,242,224		19,316,224
Accumulated other comprehensive loss	(1,755,244)		(1,743,101)
Total Accenture plc shareholders’ equity	27,744,489		25,692,839
Noncontrolling interests	875,253		765,754
Total shareholders’ equity	28,619,742		26,458,593
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	54,141,319	$	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 Nine Months Ended May 31, 2024 and 2023

(Unaudited)


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
REVENUES:
Revenues	$	16,466,828	$	16,564,585	$	48,490,645	$	48,126,545
OPERATING EXPENSES:
Cost of services	10,968,377		11,035,515		32,665,784		32,576,567
Sales and marketing	1,750,366		1,738,621		5,091,442		4,852,207
General and administrative costs	1,039,800		1,084,288		3,158,747		3,209,539
Business optimization costs	77,420		346,873		332,493		591,263
Total operating expenses	13,835,963		14,205,297		41,248,466		41,229,576
OPERATING INCOME	2,630,865		2,359,288		7,242,179		6,896,969
Interest income	53,690		81,818		220,939		176,782
Interest expense	(11,334)		(11,208)		(36,134)		(30,122)
Other income (expense), net	(18,851)		201,783		(60,222)		136,576

INCOME BEFORE INCOME TAXES	2,654,370		2,631,681		7,366,762		7,180,205
Income tax expense	673,022		583,346		1,666,231		1,584,887
NET INCOME	1,981,348		2,048,335		5,700,531		5,595,318
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc.	(1,901)		(2,101)		(5,592)		(5,790)
Net income attributable to noncontrolling interests – other	(47,264)		(36,238)		(114,453)		(90,934)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,932,183	$	2,009,996	$	5,580,486	$	5,498,594
Weighted average Class A ordinary shares:
Basic	628,353,267		631,535,162		628,437,255		630,826,230
Diluted	635,607,597		638,743,434		636,611,310		638,404,751
Earnings per Class A ordinary share:
Basic	$	3.07	$	3.18	$	8.88	$	8.72
Diluted	$	3.04	$	3.15	$	8.77	$	8.62
Cash dividends per share	$	1.29	$	1.12	$	3.87	$	3.36

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 Nine Months Ended May 31, 2024 and 2023

(Unaudited)


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
NET INCOME	$	1,981,348	$	2,048,335	$	5,700,531	$	5,595,318
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation	(55,682)		13,252		(79,263)		210,045
Defined benefit plans	4,876		6,722		46,506		104,941
Cash flow hedges	(47,298)		23,373		20,614		(25,567)

OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC	(98,104)		43,347		(12,143)		289,419
Other comprehensive income (loss) attributable to noncontrolling interests	(2,273)		827		(2,645)		6,165
COMPREHENSIVE INCOME	$	1,880,971	$	2,092,509	$	5,685,743	$	5,890,902

COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,834,079	$	2,053,343	$	5,568,343	$	5,788,013
Comprehensive income attributable to noncontrolling interests	46,892		39,166		117,400		102,889
COMPREHENSIVE INCOME	$	1,880,971	$	2,092,509	$	5,685,743	$	5,890,902

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 May 31, 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 February 29, 2024	$	57	40	$	15	670,405	$	—	315	$	1,863,338	$	14,555,758	$	(8,790,812)	(41,617)	$	21,151,637	$	(1,657,140)	$	27,122,853	$	833,571	$	27,956,424
Net income																	1,932,183				1,932,183		49,165		1,981,348
Other comprehensive income (loss)																			(98,104)		(98,104)		(2,273)		(100,377)
Purchases of Class A shares												1,153		(1,374,593)		(4,289)					(1,373,440)		(1,153)		(1,374,593)

Share-based compensation expense										411,120		62,811									473,931				473,931
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(6)			(8,649)									(8,649)				(8,649)
Issuances of Class A shares for employee share programs						1,543				(62,289)		400,310		167,563		540	(1,474)				504,110		406		504,516
Dividends										29,953							(840,122)				(810,169)		(807)		(810,976)
Other, net												1,774									1,774		(3,656)		(1,882)
Balance as of May 31, 2024	$	57	40	$	15	671,948	$	—	309	$	2,242,122	$	15,013,157	$	(9,997,842)	(45,366)	$	22,242,224	$	(1,755,244)	$	27,744,489	$	875,253	$	28,619,742

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


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 May 31, 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 February 28, 2023	$	57	40	$	15	662,406	$	—	339	$	1,636,155	$	12,163,671	$	(5,593,010)	(31,181)	$	17,500,001	$	(1,944,270)	$	23,762,619	$	694,659	$	24,457,278
Net income																	2,009,996				2,009,996		38,339		2,048,335
Other comprehensive income (loss)																			43,347		43,347		827		44,174
Purchases of Class A shares												703		(787,299)		(2,815)					(786,596)		(703)		(787,299)

Share-based compensation expense										406,504		66,191									472,695				472,695
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(4)			(1,638)									(1,638)				(1,638)
Issuances of Class A shares for employee share programs						1,719				(40,094)		406,315		253,188		632	(82,866)				536,543		473		537,016
Dividends										28,011							(735,013)				(707,002)		(740)		(707,742)
Other, net												2,467									2,467		(3,357)		(890)
Balance as of May 31, 2023	$	57	40	$	15	664,125	$	—	335	$	2,030,576	$	12,637,709	$	(6,127,121)	(33,364)	$	18,692,118	$	(1,900,923)	$	25,332,431	$	729,498	$	26,061,929

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


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 Nine Months Ended May 31, 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																	5,580,486				5,580,486		120,045		5,700,531
Other comprehensive income (loss)																			(12,143)		(12,143)		(2,645)		(14,788)
Purchases of Class A shares												3,356		(3,881,294)		(11,841)					(3,877,938)		(3,356)		(3,881,294)

Share-based compensation expense										1,418,702		120,100									1,538,802				1,538,802
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(16)			(14,922)									(14,922)				(14,922)
Issuances of Class A shares for employee share programs						7,332				(1,677,033)		2,123,575		945,964		2,866	(126,247)				1,266,259		1,064		1,267,323
Dividends										97,079							(2,528,239)				(2,431,160)		(2,450)		(2,433,610)
Other, net												2,266									2,266		(3,159)		(893)
Balance as of May 31, 2024	$	57	40	$	15	671,948	$	—	309	$	2,242,122	$	15,013,157	$	(9,997,842)	(45,366)	$	22,242,224	$	(1,755,244)	$	27,744,489	$	875,253	$	28,619,742

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


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 Nine Months Ended May 31, 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																	5,498,594				5,498,594		96,724		5,595,318
Other comprehensive income (loss)																			289,419		289,419		6,165		295,584
Purchases of Class A shares												3,021		(3,321,982)		(12,110)					(3,318,961)		(3,021)		(3,321,982)
Cancellation of treasury shares						(8,828)						(175,701)		2,595,281		8,828	(2,419,580)				—				—
Share-based compensation expense										1,407,869		122,165									1,530,034				1,530,034
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(166)			(3,868)									(3,868)				(3,868)
Issuances of Class A shares for employee share programs						8,392				(1,553,088)		2,006,131		1,277,617		3,352	(387,229)				1,343,431		1,206		1,344,637
Dividends										84,413							(2,203,509)				(2,119,096)		(2,235)		(2,121,331)
Other, net												6,781									6,781		(10,332)		(3,551)
Balance as of May 31, 2023	$	57	40	$	15	664,125	$	—	335	$	2,030,576	$	12,637,709	$	(6,127,121)	(33,364)	$	18,692,118	$	(1,900,923)	$	25,332,431	$	729,498	$	26,061,929

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


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

Consolidated Cash Flows Statements

For the Nine Months Ended May 31, 2024 and 2023

(Unaudited)


	May 31, 2024		May 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,700,531	$	5,595,318
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	1,571,633		1,639,804
Share-based compensation expense	1,538,802		1,530,034


Deferred tax expense (benefit)	77,743		(136,237)
Other, net	(224,203)		(228,922)
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(587,215)		(410,214)
Other current and non-current assets	(893,908)		(588,958)
Accounts payable	(348,143)		(242,633)
Deferred revenues, current and non-current	312,882		381,121
Accrued payroll and related benefits	(1,110,890)		(1,064,577)
Income taxes payable, current and non-current	(91,471)		57,745
Other current and non-current liabilities	(204,165)		(417,601)
Net cash provided by (used in) operating activities	5,741,596		6,114,880
CASH FLOWS FROM INVESTING ACTIVITIES:


Purchases of property and equipment	(302,873)		(347,878)
Purchases of businesses and investments, net of cash acquired	(5,239,180)		(1,334,007)
Proceeds from the sale of businesses and investments	20,905		418,113

Other investing, net	6,504		8,392
Net cash provided by (used in) investing activities	(5,514,644)		(1,255,380)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	1,267,323		1,344,637
Purchases of shares	(3,896,216)		(3,325,850)
Proceeds from debt	1,599,033		—
Repayments of debt	(100,000)		—
Cash dividends paid	(2,433,610)		(2,121,331)
Other financing, net	(71,088)		(62,481)
Net cash provided by (used in) financing activities	(3,634,558)		(4,165,025)
Effect of exchange rate changes on cash and cash equivalents	(100,209)		(48,862)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(3,507,815)		645,613
CASH AND CASH EQUIVALENTS, beginning of period	9,045,032		7,889,833
CASH AND CASH EQUIVALENTS, end of period	$	5,537,217	$	8,535,446
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	1,941,200	$	1,774,337

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

Allowance for Credit Losses—Client Receivables and Contract Assets

As of May 31, 2024 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $25,155 and $26,343, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

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:


	May 31, 2024		August 31, 2023
Equity method investments	$	22,202	$	23,985
Investments without readily determinable fair values	209,079		173,458
Total non-current investments	$	231,281	$	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 May 31, 2024 and August 31, 2023, total accumulated depreciation was $2,797,314 and $2,574,685, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and nine months ended May 31, 2024 and 2023, respectively.


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Depreciation	$	138,132	$	165,053	$	406,374	$	446,844
Amortization - Deferred transition	74,196		91,480		265,552		247,080
Amortization - Intangible assets	133,097		101,814		364,353		331,095
Operating lease cost	172,293		240,601		520,522		605,329
Other	3,587		2,151		14,832		9,456
Total depreciation, amortization and other	$	521,305	$	601,099	$	1,571,633	$	1,639,804

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 nine months ended May 31, 2024 and 2023, respectively, were as follows:


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023

North America	$	(3,677)	$	96,349	$	46,941	$	273,329
EMEA (1)	74,937		167,205		231,302		208,165
Growth Markets (1)	6,160		83,319		54,250		109,769
Total business optimization costs	$	77,420	$	346,873	$	332,493	$	591,263

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

New Accounting Pronouncements

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 12 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.

Remaining Performance Obligations

We had remaining performance obligations of approximately $29 billion and $26 billion as of May 31, 2024 and August 31, 2023, respectively. 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 35% of our remaining performance obligations as of May 31, 2024 as revenue in fiscal 2024, an additional 37% in fiscal 2025, and the balance thereafter.

Contract Estimates

Adjustments in contract estimates related to performance obligations satisfied or partially satisfied in prior periods were immaterial for the three and nine months ended May 31, 2024 and 2023.

Contract Balances

Deferred transition revenues were $621,251 and $653,954 as of May 31, 2024 and August 31, 2023, respectively, and are included in Non-current deferred revenues. Costs related to these activities are also deferred and are expensed as the services are provided. Deferred transition costs were $834,045 and $851,972 as of May 31, 2024 and August 31, 2023, respectively, and are included in Deferred contract costs. 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 May 31, 2024		As of August 31, 2023
Receivables	$	11,336,441	$	10,690,713
Contract assets (current)	1,862,947		1,536,473
Receivables and contract assets, net of allowance (current)	13,199,388		12,227,186
Contract assets (non-current)	119,281		106,994
Deferred revenues (current)	5,299,334		4,907,152
Deferred revenues (non-current)	621,251		653,954

Changes in the contract asset and liability balances during the nine months ended May 31, 2024 were a result of normal business activity and not materially impacted by any other factors.

Revenues recognized during the three and nine months ended May 31, 2024 that were included in Deferred revenues as of February 29, 2024 and August 31, 2023 were $2.6 billion and $3.9 billion, respectively. Revenues recognized during the three and nine months ended May 31, 2023 that were included in Deferred revenues as of February 28, 2023 and August 31, 2022 were $2.7 billion and $3.7 billion, respectively.


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				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Basic earnings per share
Net income attributable to Accenture plc	$	1,932,183	$	2,009,996	$	5,580,486	$	5,498,594
Basic weighted average Class A ordinary shares	628,353,267		631,535,162		628,437,255		630,826,230
Basic earnings per share	$	3.07	$	3.18	$	8.88	$	8.72
Diluted earnings per share
Net income attributable to Accenture plc	$	1,932,183	$	2,009,996	$	5,580,486	$	5,498,594
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. (1)	1,901		2,101		5,592		5,790
Net income for diluted earnings per share calculation	$	1,934,084	$	2,012,097	$	5,586,078	$	5,504,384
Basic weighted average Class A ordinary shares	628,353,267		631,535,162		628,437,255		630,826,230
Class A ordinary shares issuable upon redemption/exchange of noncontrolling interests (1)	618,083		660,083		629,556		664,324
Diluted effect of employee compensation related to Class A ordinary shares	6,539,124		6,505,805		7,293,668		6,830,076
Diluted effect of share purchase plans related to Class A ordinary shares	97,123		42,384		250,831		84,121
Diluted weighted average Class A ordinary shares (2)	635,607,597		638,743,434		636,611,310		638,404,751
Diluted earnings per share	$	3.04	$	3.15	$	8.77	$	8.62

(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.

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


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				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Foreign currency translation
Beginning balance	$	(1,534,213)	$	(1,655,527)	$	(1,510,632)	$	(1,852,320)
Foreign currency translation	(59,999)		12,897		(85,286)		217,607
Income tax benefit (expense)	2,088		1,152		3,314		(1,479)
Portion attributable to noncontrolling interests	2,229		(797)		2,709		(6,083)
Foreign currency translation, net of tax	(55,682)		13,252		(79,263)		210,045
Ending balance	(1,589,895)		(1,642,275)		(1,589,895)		(1,642,275)

Defined benefit plans
Beginning balance	(184,873)		(250,552)		(226,503)		(348,771)



Reclassifications into net periodic pension and post-retirement expense	6,529		8,712		57,337		143,602
Income tax benefit (expense)	(1,650)		(1,984)		(10,787)		(38,552)
Portion attributable to noncontrolling interests	(3)		(6)		(44)		(109)
Defined benefit plans, net of tax	4,876		6,722		46,506		104,941
Ending balance	(179,997)		(243,830)		(179,997)		(243,830)

Cash flow hedges
Beginning balance	61,946		(38,191)		(5,966)		10,749
Unrealized gain (loss)	(47,583)		25,722		49,792		(66,994)
Reclassification adjustments into Cost of services	(10,163)		4,115		(25,609)		24,721
Income tax benefit (expense)	10,401		(6,440)		(3,549)		16,679
Portion attributable to noncontrolling interests	47		(24)		(20)		27
Cash flow hedges, net of tax	(47,298)		23,373		20,614		(25,567)
Ending balance (1)	14,648		(14,818)		14,648		(14,818)










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

(1)As of May 31, 2024, $25,093 of net unrealized gains related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of services in the next twelve months.


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 nine months ended May 31, 2024, we completed individually immaterial acquisitions for total consideration of $5,229,853, net of cash acquired. The pro forma effects of these acquisitions on our operations were not material.

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		May 31, 2024
North America	$	8,876,050	$	2,587,017	$	(1,757)	$	11,461,310
EMEA (1)	5,152,149		1,536,517		(30,099)		6,658,567
Growth Markets (1)	1,544,804		207,147		(29,121)		1,722,830
Total	$	15,573,003	$	4,330,681	$	(60,977)	$	19,842,707

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						May 31, 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	$	3,668,580	$	(1,216,991)	$	2,451,589
Technology	289,989		(141,022)		148,967		328,317		(177,196)		151,121
Patents	123,579		(70,472)		53,107		121,361		(71,860)		49,501
Other	65,138		(36,908)		28,230		132,991		(35,237)		97,754
Total	$	3,320,963	$	(1,248,006)	$	2,072,957	$	4,251,249	$	(1,501,284)	$	2,749,965

Total amortization related to our intangible assets was $133,097 and $364,353 for the three and nine months ended May 31, 2024, respectively. Total amortization related to our intangible assets was $101,814 and $331,095 for the three and nine months ended May 31, 2023, respectively. Estimated future amortization related to intangible assets held as of May 31, 2024 is as follows:


Fiscal Year	Estimated Amortization
Remainder of 2024	$	147,127
2025	563,055
2026	504,392
2027	434,977
2028	407,243
Thereafter	693,171
Total	$	2,749,965


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 nine months ended May 31, 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
May 15, 2024	1.29			April 11, 2024		810,169			April 9, 2024		807		810,976
Total Dividends						$	2,431,160				$	2,450	$	2,433,610

The payment of cash dividends includes the net effect of $97,079 of additional restricted stock units being issued as a part of our share plans, which resulted in 290,133 restricted share units being issued.

Subsequent Event

On June 19, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.29 per share on our Class A ordinary shares for shareholders of record at the close of business on July 11, 2024 payable on August 15, 2024.


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 nine months ended May 31, 2024 and 2023, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Other Derivatives

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $57,232 and $103,568 for the three and nine months ended May 31, 2024, respectively, and net losses of $72,091 and $94,351 for the three and nine months ended May 31, 2023, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

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


	May 31, 2024		August 31, 2023
Assets
Cash Flow Hedges
Other current assets	$	59,171	$	52,995
Other non-current assets	46,783		44,739
Other Derivatives
Other current assets	6,607		6,686
Total assets	$	112,561	$	104,420
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	34,078	$	50,020
Other non-current liabilities	24,997		26,076
Other Derivatives
Other accrued liabilities	36,430		38,645
Total liabilities	$	95,505	$	114,741
Total fair value	$	17,056	$	(10,321)
Total notional value	$	14,140,492	$	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:


	May 31, 2024		August 31, 2023
Net derivative assets	$	74,283	$	50,528
Net derivative liabilities	57,227		60,849
Total fair value	$	17,056	$	(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. Borrowings and Indebtedness

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

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


	Credit Facilities
Syndicated loan facility (1)	$	5,500,000
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2)	1,945,719
Local guaranteed and non-guaranteed lines of credit (3)	275,676
Total	$	7,721,395

(1)On May 14, 2024, we replaced our $3,000,000 syndicated 5-year credit facility with a new $5,500,000 syndicated credit facility maturing on May 14, 2029. This facility provides unsecured, revolving borrowing capacity for general corporate capital purposes, including the issuance of letters of credit and short-term commercial paper. Borrowings under this facility will accrue interest at the applicable risk-free rate plus a spread. We are in compliance with relevant covenant terms. The facility is subject to annual commitment fees. As of May 31, 2024, we had $1,606,900 of commercial paper outstanding (excluding unamortized discounts), and backed by this facility, with a weighted-average effective interest rate of 5.4%. As of August 31, 2023, we had $100,000 of commercial paper outstanding backed by our $3,000,000 syndicated 5-year credit facility, with a weighted-average effective interest rate of 5.4%.

(2)We maintain separate, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local currency financing for the majority of our operations. Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets. As of May 31, 2024 and August 31, 2023, we had no borrowings under these facilities.

(3)We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. As of May 31, 2024 and August 31, 2023, we had no borrowings under these various facilities.

We had an aggregate of $1,172,422 and $1,080,819 of letters of credit outstanding and $1,606,900 (excluding unamortized discounts) and $100,000 of commercial paper outstanding as of May 31, 2024 and August 31, 2023, respectively. The amount of letters of credit and commercial paper outstanding reduces the available borrowing capacity under the facilities described above.

10. 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 May 31, 2024 and 2023 were 25.4% and 22.2%, respectively. The higher effective tax rate for the three months ended May 31, 2024 was primarily due to the tax impact in the prior year from an investment gain and higher expense from adjustments to prior year tax liabilities. Our effective tax rates for the nine months ended May 31, 2024 and 2023 were 22.6% and 22.1%, respectively. The higher effective tax rate for the nine months ended May 31, 2024 was primarily due to the tax impact in the prior year from an investment gain.


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

11. 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 May 31, 2024 and August 31, 2023, our aggregate potential liability to our clients for expressly limited guarantees involving the performance of third parties was approximately $2,192,000 and $1,793,000, respectively, of which all but approximately $59,000 and $51,000, respectively, may be recovered from the other third parties if we are obligated to make payments to the indemnified parties as a consequence of a performance default by the other third parties. For arrangements with unspecified limitations, we cannot reasonably estimate the aggregate maximum potential liability, as it is inherently difficult to predict the maximum potential amount of such payments, due to the conditional nature and unique facts of each particular arrangement.

As of May 31, 2024 and August 31, 2023, we have issued or provided guarantees in the form of letters of credit and surety bonds of $1,654,531 and $1,294,653, respectively, the majority of which support certain contracts that require us to provide them as a guarantee of our performance. These guarantees are typically renewed annually and remain in place until the contractual obligations are satisfied. 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 May 31, 2024, we or our present personnel had been named as a defendant in various litigation matters. We and/or our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of our business around the world. 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.

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.


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						21

12. Segment Reporting

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				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Geographic Markets
North America (1)	$	7,834,206	$	7,720,903	$	22,773,920	$	22,741,597
EMEA (2)	5,776,624		5,872,107		17,179,116		16,739,688
Growth Markets (1) (2)	2,855,998		2,971,575		8,537,609		8,645,260
Total Revenues	$	16,466,828	$	16,564,585	$	48,490,645	$	48,126,545
Industry Groups
Communications, Media & Technology	$	2,763,076	$	2,880,187	$	8,086,661	$	8,745,192
Financial Services	2,894,753		3,138,181		8,737,261		9,104,444
Health & Public Service	3,515,264		3,266,347		10,226,769		9,289,961
Products	4,983,422		4,968,399		14,605,247		14,352,759
Resources	2,310,313		2,311,471		6,834,707		6,634,189
Total Revenues	$	16,466,828	$	16,564,585	$	48,490,645	$	48,126,545
Type of Work
Consulting	$	8,457,169	$	8,693,030	$	24,934,709	$	25,416,160
Managed Services	8,009,659		7,871,555		23,555,936		22,710,385
Total Revenues	$	16,466,828	$	16,564,585	$	48,490,645	$	48,126,545


	Operating Income
	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Geographic Markets
North America (1)	$	1,365,072	$	1,241,245	$	3,682,156	$	3,374,986
EMEA (2)	749,859		670,330		2,102,472		2,012,616
Growth Markets (1) (2)	515,934		447,713		1,457,551		1,509,367
Total Operating Income	$	2,630,865	$	2,359,288	$	7,242,179	$	6,896,969

(1)As announced on June 11, 2024, effective September 1, 2024, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become The Americas market and Growth Markets will become the Asia Pacific market.

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


Table of Contents
ACCENTURE FORM 10-Q						Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			22

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