UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________ 

FORM 10-Q

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	February 29, 2020

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from             to

Commission File Number: 001-34448

Accenture plc

(Exact name of registrant as specified in its charter)

Ireland	98-0627530
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1 Grand Canal Square,

Grand Canal Harbour,

Dublin 2, Ireland

(Address of principal executive offices)

(353) (1) 646-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A ordinary shares, par value $0.0000225 per share	ACN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of the registrant’s Class A ordinary shares, par value $0.0000225 per share, outstanding as of March 5, 2020 was 661,808,381 (which number includes 24,780,986 issued shares held by the registrant). The number of shares of the registrant’s Class X ordinary shares, par value $0.0000225 per share, outstanding as of March 5, 2020 was 588,089.

ACCENTURE PLC

INDEX

	Page
Part I. Financial Information	3
Item 1. Financial Statements	3
Consolidated Balance Sheets as of February 29, 2020 (Unaudited) and August 31, 2019	3
Consolidated Income Statements (Unaudited) for the three and six months ended February 29, 2020 and February 28, 2019	4
Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended February 29, 2020 and February 28, 2019	5
Consolidated Shareholders’ Equity Statement (Unaudited) for the three and six months ended February 29, 2020 and February 28, 2019	6
Consolidated Cash Flows Statements (Unaudited) for the three and six months ended February 29, 2020 and February 28, 2019	10
Notes to Consolidated Financial Statements (Unaudited)	11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	34
Item 4. Controls and Procedures	35
Part II. Other Information	36
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3. Defaults Upon Senior Securities	38
Item 4. Mine Safety Disclosures	38
Item 5. Other Information	38
Item 6. Exhibits	38
Signatures	39

2

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ACCENTURE PLC

CONSOLIDATED BALANCE SHEETS

February 29, 2020 and August 31, 2019

(In thousands of U.S. dollars, except share and per share amounts)

	February 29, 2020			August 31, 2019
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	5,436,456		$	6,126,853
Short-term investments	3,643			3,313
Receivables and contract assets	8,517,949			8,095,071
Other current assets	1,447,245			1,225,364
Total current assets	15,405,293			15,450,601
NON-CURRENT ASSETS:
Contract assets	56,503			71,002
Investments	284,261			240,313
Property and equipment, net	1,425,432			1,391,166
Lease assets	3,181,659			—
Goodwill	6,698,690			6,205,550
Deferred contract costs	690,483			681,492
Deferred tax assets	4,254,782			4,349,464
Other non-current assets	1,506,327			1,400,292
Total non-current assets	18,098,137			14,339,279
TOTAL ASSETS	$	33,503,430		$	29,789,880
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings	$	6,697		$	6,411
Accounts payable	1,526,135			1,646,641
Deferred revenues	3,594,142			3,188,835
Accrued payroll and related benefits	4,101,115			4,890,542
Income taxes payable	371,462			378,017
Lease liabilities	737,781			—
Other accrued liabilities	840,243			951,450
Total current liabilities	11,177,575			11,061,896
NON-CURRENT LIABILITIES:
Long-term debt	13,183			16,247
Deferred revenues	629,505			565,224
Retirement obligation	1,810,338			1,765,914
Deferred tax liabilities	167,467			133,232
Income taxes payable	866,392			892,688
Lease liabilities	2,652,548			—
Other non-current liabilities	265,616			526,988
Total non-current liabilities	6,405,049			3,900,293
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of February 29, 2020 and August 31, 2019	57			57
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 661,741,555 and 654,739,267 shares issued as of February 29, 2020 and August 31, 2019, respectively	15			15
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 588,089 and 609,404 shares issued and outstanding as of February 29, 2020 and August 31, 2019, respectively	—			—
Restricted share units	1,095,560			1,411,903
Additional paid-in capital	6,884,963			5,804,448
Treasury shares, at cost: Ordinary, 40,000 shares as of February 29, 2020 and August 31, 2019; Class A ordinary, 24,510,940 and 18,964,863 shares as of February 29, 2020 and August 31, 2019, respectively	(2,571,256		)	(1,388,376		)
Retained earnings	11,867,507			10,421,538
Accumulated other comprehensive loss	(1,802,257		)	(1,840,577		)
Total Accenture plc shareholders’ equity	15,474,589			14,409,008
Noncontrolling interests	446,217			418,683
Total shareholders’ equity	15,920,806			14,827,691
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	33,503,430		$	29,789,880

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

3

ACCENTURE PLC

CONSOLIDATED INCOME STATEMENTS

For the Three and Six Months Ended February 29, 2020 and February 28, 2019

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

	Three Months Ended						Six Months Ended
	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
REVENUES:
Revenues	$	11,141,505		$	10,454,129		$	22,500,463		$	21,059,675
OPERATING EXPENSES:
Cost of services	7,782,334			7,399,780			15,493,533			14,707,901
Sales and marketing	1,162,653			1,020,036			2,353,776			2,090,052
General and administrative costs	707,573			647,687			1,396,946			1,246,084
Total operating expenses	9,652,560			9,067,503			19,244,255			18,044,037
OPERATING INCOME	1,488,945			1,386,626			3,256,208			3,015,638
Interest income	21,386			19,081			48,805			38,712
Interest expense	(8,567		)	(5,619		)	(14,041		)	(10,124		)
Other income (expense), net	7,792			(23,834		)	19,231			(57,488		)
INCOME BEFORE INCOME TAXES	1,509,556			1,376,254			3,310,203			2,986,738
Income tax expense	257,474			235,534			682,953			554,694
NET INCOME	1,252,082			1,140,720			2,627,250			2,432,044
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc.	(1,532		)	(1,649		)	(3,273		)	(3,537		)
Net income attributable to noncontrolling interests – other	(15,810		)	(14,622		)	(32,269		)	(29,338		)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,234,740		$	1,124,449		$	2,591,708		$	2,399,169
Weighted average Class A ordinary shares:
Basic	637,485,626			638,639,729			636,594,169			638,750,881
Diluted	648,833,880			649,170,699			649,210,807			650,732,700
Earnings per Class A ordinary share:
Basic	$	1.94		$	1.76		$	4.07		$	3.76
Diluted	$	1.91		$	1.73		$	4.00		$	3.69
Cash dividends per share	$	0.80		$	—		$	1.60		$	1.46

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

4

ACCENTURE PLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Six Months Ended February 29, 2020 and February 28, 2019

(In thousands of U.S. dollars)

(Unaudited)

	Three Months Ended						Six Months Ended
	February 29, 2020			February 28, 2019			February 29, 2020			February 28, 2019
NET INCOME	$	1,252,082		$	1,140,720		$	2,627,250		$	2,432,044
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation	(47,448		)	41,645			(9,718		)	33,028
Defined benefit plans	9,805			6,578			18,557			26,991
Cash flow hedges	15,354			(36,690		)	29,481			51,654
Investments	—			—			—			(515		)
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC	(22,289		)	11,533			38,320			111,158
Other comprehensive income (loss) attributable to noncontrolling interests	(1,157		)	1,625			23			(671		)
COMPREHENSIVE INCOME	$	1,228,636		$	1,153,878		$	2,665,593		$	2,542,531
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC	$	1,212,451		$	1,135,982		$	2,630,028		$	2,510,327
Comprehensive income attributable to noncontrolling interests	16,185			17,896			35,565			32,204
COMPREHENSIVE INCOME	$	1,228,636		$	1,153,878		$	2,665,593		$	2,542,531

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

5

ACCENTURE PLC

CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT

For the Three Months Ended February 29, 2020

(In thousands of U.S. dollars and share amounts)

(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, 2019	$	57	40	$	15	656,946	$	—	594		$	1,525,898		$	6,162,252		$	(1,977,391	)	(21,990	)	$	11,236,275		$	(1,779,968	)	$	15,167,138		$	434,070		$	15,601,208
Net income																						1,234,740						1,234,740			17,342			1,252,082
Other comprehensive income (loss)																									(22,289		)	(22,289		)	(1,157		)	(23,446		)
Purchases of Class A shares														1,055			(968,034		)	(4,683	)							(966,979		)	(1,055		)	(968,034		)
Share-based compensation expense											371,846			459														372,305						372,305
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(6	)				(2,022		)												(2,022		)				(2,022		)
Issuances of Class A shares for employee share programs						4,796					(822,243		)	720,701			374,169			2,122		(72,845		)				199,782			218			200,000
Dividends											20,059											(530,663		)				(510,604		)	(634		)	(511,238		)
Other, net														2,518														2,518			(2,567		)	(49		)
Balance as of February 29, 2020	$	57	40	$	15	661,742	$	—	588		$	1,095,560		$	6,884,963		$	(2,571,256	)	(24,551	)	$	11,867,507		$	(1,802,257	)	$	15,474,589		$	446,217		$	15,920,806

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

6

ACCENTURE PLC

CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT

For the Three Months Ended February 28, 2019

(In thousands of U.S. dollars and share amounts)

(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, 2018	$	57	40	$	15	665,541	$	—	651	$	1,342,965		$	5,176,749		$	(2,748,448	)	(28,206	)	$	10,384,064		$	(1,476,546	)	$	12,678,856		$	376,712		$	13,055,568
Net income																					1,124,449						1,124,449			16,271			1,140,720
Other comprehensive income (loss)																								11,533			11,533			1,625			13,158
Purchases of Class A shares													1,247			(995,056		)	(6,663	)							(993,809		)	(1,247		)	(995,056		)
Share-based compensation expense										346,762																	346,762						346,762
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares													(12,751		)												(12,751		)				(12,751		)
Issuances of Class A shares for employee share programs						4,772				(733,906		)	615,692			385,839			2,430		(87,757		)				179,868			227			180,095
Dividends										(1,208		)									1,208						—						—
Other, net													2,125														2,125			(2,076		)	49
Balance as of February 28, 2019	$	57	40	$	15	670,313	$	—	651	$	954,613		$	5,783,062		$	(3,357,665	)	(32,439	)	$	11,421,964		$	(1,465,013	)	$	13,337,033		$	391,512		$	13,728,545

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

7

ACCENTURE PLC

CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT

For the Six Months Ended February 29, 2020

(In thousands of U.S. dollars and share amounts)

(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, 2019	$	57	40	$	15	654,739	$	—	609		$	1,411,903		$	5,804,448		$	(1,388,376	)	(19,005	)	$	10,421,538		$	(1,840,577	)	$	14,409,008		$	418,683		$	14,827,691
Net income																						2,591,708						2,591,708			35,542			2,627,250
Other comprehensive income (loss)																									38,320			38,320			23			38,343
Purchases of Class A shares														1,866			(1,692,652		)	(8,504	)							(1,690,786		)	(1,866		)	(1,692,652		)
Share-based compensation expense											610,523			36,711														647,234						647,234
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(21	)				(6,615		)												(6,615		)				(6,615		)
Issuances of Class A shares for employee share programs						7,003					(965,168		)	1,044,361			509,772			2,958		(89,108		)				499,857			543			500,400
Dividends											38,302											(1,056,631		)				(1,018,329		)	(1,290		)	(1,019,619		)
Other, net														4,192														4,192			(5,418		)	(1,226		)
Balance as of February 29, 2020	$	57	40	$	15	661,742	$	—	588		$	1,095,560		$	6,884,963		$	(2,571,256	)	(24,551	)	$	11,867,507		$	(1,802,257	)	$	15,474,589		$	446,217		$	15,920,806

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

8

ACCENTURE PLC

CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT

For the Six Months Ended February 28, 2019

(In thousands of U.S. dollars and share amounts)

(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, 2018	$	57	40	$	15	663,328	$	—	656		$	1,234,623		$	4,870,764		$	(2,116,948	)	(24,333	)	$	7,952,413		$	(1,576,171	)	$	10,364,753		$	359,835		$	10,724,588
Cumulative effect adjustment																						2,134,818						2,134,818			3,158			2,137,976
Net income																						2,399,169						2,399,169			32,875			2,432,044
Other comprehensive income (loss)																									111,158			111,158			(671		)	110,487
Purchases of Class A shares														2,273			(1,782,564		)	(11,524	)							(1,780,291		)	(2,273		)	(1,782,564		)
Share-based compensation expense											561,475			31,803														593,278						593,278
Purchases/redemptions of Accenture Canada Holdings Inc. exchangeable shares and Class X shares									(5	)				(13,570		)												(13,570		)				(13,570		)
Issuances of Class A shares for employee share programs						6,985					(867,871		)	892,731			541,847			3,418		(121,001		)				445,706			571			446,277
Dividends											26,386											(957,846		)				(931,460		)	(1,378		)	(932,838		)
Other, net														(939		)						14,411						13,472			(605		)	12,867
Balance as of February 28, 2019	$	57	40	$	15	670,313	$	—	651		$	954,613		$	5,783,062		$	(3,357,665	)	(32,439	)	$	11,421,964		$	(1,465,013	)	$	13,337,033		$	391,512		$	13,728,545

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

9

ACCENTURE PLC

CONSOLIDATED CASH FLOWS STATEMENTS

For the Six Months Ended February 29, 2020 and February 28, 2019

(In thousands of U.S. dollars)

(Unaudited)

	February 29, 2020			February 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,627,250		$	2,432,044
Adjustments to reconcile Net income to Net cash provided by (used in) operating activities —
Depreciation, amortization and other	841,574			431,283
Share-based compensation expense	647,234			593,278
Deferred tax expense (benefit)	86,989			(49,624		)
Other, net	(169,286		)	(79,425		)
Change in assets and liabilities, net of acquisitions —
Receivables and contract assets, current and non-current	(320,707		)	(481,936		)
Other current and non-current assets	(438,456		)	(282,588		)
Accounts payable	(120,997		)	28,730
Deferred revenues, current and non-current	423,056			438,293
Accrued payroll and related benefits	(831,611		)	(555,875		)
Income taxes payable, current and non-current	(37,266		)	(77,969		)
Other current and non-current liabilities	(390,228		)	(9,053		)
Net cash provided by (used in) operating activities	2,317,552			2,387,158
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(260,433		)	(217,488		)
Purchases of businesses and investments, net of cash acquired	(584,304		)	(515,082		)
Proceeds from sales of businesses and investments	79,200			1,809
Other investing, net	2,355			6,218
Net cash provided by (used in) investing activities	(763,182		)	(724,543		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares	500,400			446,277
Purchases of shares	(1,699,267		)	(1,796,134		)
Proceeds from (repayments of) long-term debt, net	(366		)	(872		)
Cash dividends paid	(1,019,619		)	(932,838		)
Other, net	(18,648		)	(10,524		)
Net cash provided by (used in) financing activities	(2,237,500		)	(2,294,091		)
Effect of exchange rate changes on cash and cash equivalents	(7,267		)	35,005
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(690,397		)	(596,471		)
CASH AND CASH EQUIVALENTS, beginning of period	6,126,853			5,061,360
CASH AND CASH EQUIVALENTS, end of period	$	5,436,456		$	4,464,889
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid, net	$	796,248		$	645,379

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

10

ACCENTURE PLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)

(Unaudited)

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, 2019 included in our Annual Report on Form 10-K filed with the SEC on October 29, 2019.

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, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2020.

Allowances for Client Receivables

As of February 29, 2020 and August 31, 2019, total allowances recorded for client receivables were $35,875 and $45,538, respectively.

Depreciation and Amortization

Depreciation expense was $122,592 and $219,682 for the three and six months ended February 29, 2020, respectively, and $110,635 and $213,348 for the three and six months ended February 28, 2019, respectively. As of February 29, 2020 and August 31, 2019, total accumulated depreciation was $2,191,823 and $1,956,029, respectively. Deferred transition amortization expense was $78,754 and $146,668 for the three and six months ended February 29, 2020, respectively, and $68,209 and $137,088 for the three and six months ended February 28, 2019, respectively. See Note 6 (Goodwill and Intangible Assets) to these Consolidated Financial Statements for intangible asset amortization balances.

11

ACCENTURE PLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)

(Unaudited)

Recently Adopted Accounting Pronouncements

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2016-02 and related updates (“Topic 842”)

On September 1, 2019, we adopted FASB ASU No. 2016-02, Leases, and related updates (“Topic 842”) using the effective date method. Prior period amounts were not adjusted. The primary impact of adoption is the requirement for lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by both operating and finance leases. Enhanced quantitative and qualitative disclosures about leasing arrangements are also required. We elected the package of practical expedients which does not require reassessment of prior conclusions related to identifying leases, lease classification or initial direct costs. We also elected the practical expedient to combine lease and nonlease components, accounting for the combined components as a single lease component, for our office real estate and automobile leases. The standard did not have a material impact on our Consolidated Income Statement.

The impact of adopting Topic 842 on our Consolidated Balance Sheets was as follows:

Balance Sheet	Balance as of August 31, 2019		Adjustments due to ASU 2016-02 (Topic 842)			Balance as of September 1, 2019
CURRENT ASSETS
Other current assets	$	1,225,364	$	(38,666	)	$	1,186,698
NON-CURRENT ASSETS
Lease assets	—		3,169,608			3,169,608
Other non-current assets	1,400,292		(10,333		)	1,389,959
CURRENT LIABILITIES
Lease liabilities	—		699,399			699,399
Other accrued liabilities	951,450		(703		)	950,747
NON-CURRENT LIABILITIES
Lease liabilities	—