(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
• | Free cash flow (defined as operating cash flow net of property and equipment additions). Accenture’s management believes that this information provides meaningful additional information regarding the company’s liquidity. |
• | Percentage changes in revenues and bookings on a local currency basis. Financial results in local currency are calculated by restating current period activity into U.S. dollars using the comparable prior year period’s foreign currency exchange rates. This approach is used for all results where the functional currency is not the U.S. dollar. Accenture’s management believes that information regarding changes in its revenues and bookings that excludes the effect of fluctuations in foreign currency exchange rates facilitates meaningful comparison of its revenues. |
Exhibit No. | Description |
99 | |
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
Date: June 25, 2020 | ACCENTURE PLC | ||
By: | /s/ Joel Unruch | ||
Name: | Joel Unruch | ||
Title: | General Counsel & Corporate Secretary |
▪ | Consulting revenues for the quarter were $6.0 billion, a decrease of 4% in U.S. dollars and 2% in local currency compared with the third quarter of fiscal 2019, including a reduction of approximately 3 percentage points from a decline in revenues from reimbursable travel costs. |
▪ | Outsourcing revenues were $5.0 billion, an increase of 3% in U.S. dollars and 5% in local currency compared with the third quarter of fiscal 2019. |
▪ | a $0.01 increase from a lower share count; |
▪ | a $0.01 decrease from lower revenue and operating results; |
▪ | a $0.02 decrease from higher non-operating expense; and |
▪ | a $0.01 decrease from higher income attributable to noncontrolling interests. |
▪ | Consulting new bookings were $6.2 billion, or 56% of total new bookings. |
▪ | Outsourcing new bookings were $4.8 billion, or 44% of total new bookings. |
▪ | North America: $5.24 billion, compared with $5.15 billion for the third quarter of fiscal 2019, an increase of 2% in both U.S. dollars and local currency. |
▪ | Europe: $3.57 billion, compared with $3.77 billion for the third quarter of fiscal 2019, a decrease of 5% in U.S. dollars and 2% in local currency. |
▪ | Growth Markets: $2.18 billion, compared with $2.18 billion for the third quarter of fiscal 2019, flat in U.S. dollars and an increase of 5% in local currency. |
▪ | Communications, Media & Technology: $2.20 billion, compared with $2.25 billion for the third quarter of fiscal 2019, a decrease of 2% in U.S. dollars and flat in local currency. |
▪ | Financial Services: $2.14 billion, compared with $2.20 billion for the third quarter of fiscal 2019, a decrease of 3% in U.S. dollars and flat in local currency. |
▪ | Health & Public Service: $2.02 billion, compared with $1.82 billion for the third quarter of fiscal 2019, an increase of 11% in U.S. dollars and 12% in local currency. |
▪ | Products: $3.00 billion, compared with $3.08 billion for the third quarter of fiscal 2019, a decrease of 3% in U.S. dollars and 1% in local currency. |
▪ | Resources: $1.64 billion, compared with $1.75 billion for the third quarter of fiscal 2019, a decrease of 6% in U.S. dollars and 3% in local currency. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
May 31, 2020 | % of Revenues | May 31, 2019 | % of Revenues | May 31, 2020 | % of Revenues | May 31, 2019 | % of Revenues | |||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Revenues | $ | 10,991,305 | 100.0 | % | $ | 11,099,688 | 100.0 | % | $ | 33,491,768 | 100.0 | % | $ | 32,159,363 | 100.0 | % | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||||
Cost of services | 7,462,617 | 67.9 | % | 7,571,390 | 68.2 | % | 22,956,150 | 68.5 | % | 22,279,291 | 69.3 | % | ||||||||||||||||
Sales and marketing | 1,118,204 | 10.2 | % | 1,184,164 | 10.7 | % | 3,471,980 | 10.4 | % | 3,274,216 | 10.2 | % | ||||||||||||||||
General and administrative costs | 697,751 | 6.3 | % | 626,191 | 5.6 | % | 2,094,697 | 6.3 | % | 1,872,275 | 5.8 | % | ||||||||||||||||
Total operating expenses | 9,278,572 | 9,381,745 | 28,522,827 | 27,425,782 | ||||||||||||||||||||||||
OPERATING INCOME | 1,712,733 | 15.6 | % | 1,717,943 | 15.5 | % | 4,968,941 | 14.8 | % | 4,733,581 | 14.7 | % | ||||||||||||||||
Interest income | 12,671 | 21,402 | 61,476 | 60,114 | ||||||||||||||||||||||||
Interest expense | (4,961 | ) | (5,348 | ) | (19,002 | ) | (15,472 | ) | ||||||||||||||||||||
Other income (expense), net | (39,670 | ) | (29,690 | ) | (20,439 | ) | (87,178 | ) | ||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 1,680,773 | 15.3 | % | 1,704,307 | 15.4 | % | 4,990,976 | 14.9 | % | 4,691,045 | 14.6 | % | ||||||||||||||||
Income tax expense | 428,134 | 435,658 | 1,111,087 | 990,352 | ||||||||||||||||||||||||
NET INCOME | 1,252,639 | 11.4 | % | 1,268,649 | 11.4 | % | 3,879,889 | 11.6 | % | 3,700,693 | 11.5 | % | ||||||||||||||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. | (1,518 | ) | (1,676 | ) | (4,791 | ) | (5,213 | ) | ||||||||||||||||||||
Net income attributable to noncontrolling interests – other (1) | (22,919 | ) | (17,457 | ) | (55,188 | ) | (46,795 | ) | ||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC | $ | 1,228,202 | 11.2 | % | $ | 1,249,516 | 11.3 | % | $ | 3,819,910 | 11.4 | % | $ | 3,648,685 | 11.3 | % | ||||||||||||
CALCULATION OF EARNINGS PER SHARE: | ||||||||||||||||||||||||||||
Net income attributable to Accenture plc | $ | 1,228,202 | $ | 1,249,516 | $ | 3,819,910 | $ | 3,648,685 | ||||||||||||||||||||
Net income attributable to noncontrolling interest in Accenture Canada Holdings Inc. (2) | 1,518 | 1,676 | 4,791 | 5,213 | ||||||||||||||||||||||||
Net income for diluted earnings per share calculation | $ | 1,229,720 | $ | 1,251,192 | $ | 3,824,701 | $ | 3,653,898 | ||||||||||||||||||||
EARNINGS PER SHARE: | ||||||||||||||||||||||||||||
-Basic | $ | 1.93 | $ | 1.96 | $ | 6.00 | $ | 5.72 | ||||||||||||||||||||
-Diluted | $ | 1.90 | $ | 1.93 | $ | 5.90 | $ | 5.62 | ||||||||||||||||||||
WEIGHTED AVERAGE SHARES: | ||||||||||||||||||||||||||||
-Basic | 636,146,240 | 637,831,341 | 636,445,172 | 638,439,707 | ||||||||||||||||||||||||
-Diluted | 645,607,914 | 649,297,717 | 648,025,669 | 650,144,931 | ||||||||||||||||||||||||
Cash dividends per share | $ | 0.80 | $ | 1.46 | $ | 2.40 | $ | 2.92 |
(1) | Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc. |
(2) | 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. |
Percent Increase (Decrease) U.S. Dollars | Percent Increase (Decrease) Local Currency | |||||||||||
Three Months Ended | ||||||||||||
May 31, 2020 | May 31, 2019 (2) | |||||||||||
GEOGRAPHIC MARKETS (1) | ||||||||||||
North America | $ | 5,239,275 | $ | 5,147,948 | 2% | 2% | ||||||
Europe | 3,574,995 | 3,773,835 | (5) | (2) | ||||||||
Growth Markets | 2,177,035 | 2,177,905 | — | 5 | ||||||||
Total | $ | 10,991,305 | $ | 11,099,688 | (1)% | 1% | ||||||
INDUSTRY GROUPS (1) | ||||||||||||
Communications, Media & Technology | $ | 2,197,152 | $ | 2,253,136 | (2)% | — | ||||||
Financial Services | 2,137,850 | 2,196,595 | (3) | — | ||||||||
Health & Public Service | 2,015,874 | 1,819,775 | 11 | 12% | ||||||||
Products | 2,998,903 | 3,077,227 | (3) | (1) | ||||||||
Resources | 1,636,606 | 1,747,977 | (6) | (3) | ||||||||
Other | 4,920 | 4,978 | n/m | n/m | ||||||||
Total | $ | 10,991,305 | $ | 11,099,688 | (1)% | 1% | ||||||
TYPE OF WORK | ||||||||||||
Consulting | $ | 5,997,894 | $ | 6,236,630 | (4)% | (2)% | ||||||
Outsourcing | 4,993,411 | 4,863,058 | 3 | 5 | ||||||||
Total | $ | 10,991,305 | $ | 11,099,688 | (1)% | 1% |
Percent Increase (Decrease) U.S. Dollars | Percent Increase (Decrease) Local Currency | ||||||||||||
Nine Months Ended | |||||||||||||
May 31, 2020 | May 31, 2019 (2) | ||||||||||||
GEOGRAPHIC MARKETS (1) | |||||||||||||
North America | $ | 15,784,518 | $ | 14,758,046 | 7% | 7% | |||||||
Europe | 10,993,277 | 11,125,999 | (1) | 2 | |||||||||
Growth Markets | 6,713,973 | 6,275,318 | 7 | 10 | |||||||||
Total | $ | 33,491,768 | $ | 32,159,363 | 4% | 6% | |||||||
INDUSTRY GROUPS (1) | |||||||||||||
Communications, Media & Technology | $ | 6,681,968 | $ | 6,533,319 | 2% | 4% | |||||||
Financial Services | 6,414,211 | 6,369,477 | 1 | 3 | |||||||||
Health & Public Service | 5,932,693 | 5,283,364 | 12 | 13 | |||||||||
Products | 9,376,984 | 8,912,588 | 5 | 7 | |||||||||
Resources | 5,071,450 | 5,040,143 | 1 | 3 | |||||||||
Other | 14,462 | 20,472 | n/m | n/m | |||||||||
Total | $ | 33,491,768 | $ | 32,159,363 | 4% | 6% | |||||||
TYPE OF WORK | |||||||||||||
Consulting | $ | 18,546,448 | $ | 17,990,967 | 3% | 5% | |||||||
Outsourcing | 14,945,320 | 14,168,396 | 5 | 7 | |||||||||
Total | $ | 33,491,768 | $ | 32,159,363 | 4% | 6% |
(1) | Effective March 1, 2020 we began managing our business under a new growth model through our three geographic markets, which became our reportable segments in the third quarter of fiscal 2020. |
(2) | Effective September 1, 2019 we revised the reporting of our geographic markets for the movement of one country from Growth Markets to Europe. Prior period amounts have been reclassified to conform with the current period presentation. |
Three Months Ended | |||||||||||||||
May 31, 2020 | May 31, 2019 | ||||||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | Increase (Decrease) | |||||||||||
GEOGRAPHIC MARKETS (1) | |||||||||||||||
North America | $ | 720,997 | 14% | $ | 881,557 | 17% | $ | (160,560 | ) | ||||||
Europe | 535,463 | 15 | 551,665 | 15 | (16,202 | ) | |||||||||
Growth Markets | 456,273 | 21 | 284,721 | 13 | 171,552 | ||||||||||
Total | $ | 1,712,733 | 15.6% | $ | 1,717,943 | 15.5% | $ | (5,210 | ) |
Nine Months Ended | |||||||||||||||
May 31, 2020 | May 31, 2019 | ||||||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | Increase (Decrease) | |||||||||||
GEOGRAPHIC MARKETS (1) | |||||||||||||||
North America | $ | 2,281,648 | 14% | $ | 2,266,963 | 15% | $ | 14,685 | |||||||
Europe | 1,477,338 | 13 | 1,596,776 | 14 | (119,438 | ) | |||||||||
Growth Markets | 1,209,955 | 18 | 869,842 | 14 | 340,113 | ||||||||||
Total | $ | 4,968,941 | 14.8% | $ | 4,733,581 | 14.7% | $ | 235,360 |
(1) | Effective March 1, 2020 we began managing our business under a new growth model through our three geographic markets, which became our reportable segments in the third quarter of fiscal 2020. As a result of these changes, Accenture began reporting Operating income by geographic market, rather than industry group, in the third quarter of fiscal 2020. |
May 31, 2020 | August 31, 2019 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 6,442,261 | $ | 6,126,853 | ||||
Short-term investments | 3,676 | 3,313 | ||||||
Receivables and contract assets | 8,345,601 | 8,095,071 | ||||||
Other current assets | 1,354,698 | 1,225,364 | ||||||
Total current assets | 16,146,236 | 15,450,601 | ||||||
NON-CURRENT ASSETS: | ||||||||
Contract assets | 52,701 | 71,002 | ||||||
Investments | 270,984 | 240,313 | ||||||
Property and equipment, net | 1,445,183 | 1,391,166 | ||||||
Lease assets | 3,222,787 | — | ||||||
Goodwill | 7,334,594 | 6,205,550 | ||||||
Other non-current assets | 6,584,834 | 6,431,248 | ||||||
Total non-current assets | 18,911,083 | 14,339,279 | ||||||
TOTAL ASSETS | $ | 35,057,319 | $ | 29,789,880 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt and bank borrowings | $ | 8,697 | $ | 6,411 | ||||
Accounts payable | 1,405,977 | 1,646,641 | ||||||
Deferred revenues | 3,536,521 | 3,188,835 | ||||||
Accrued payroll and related benefits | 4,426,829 | 4,890,542 | ||||||
Lease liabilities | 738,642 | — | ||||||
Other accrued liabilities | 1,711,615 | 1,329,467 | ||||||
Total current liabilities | 11,828,281 | 11,061,896 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Long-term debt | 60,342 | 16,247 | ||||||
Lease liabilities | 2,704,540 | — | ||||||
Other non-current liabilities | 3,980,511 | 3,884,046 | ||||||
Total non-current liabilities | 6,745,393 | 3,900,293 | ||||||
TOTAL ACCENTURE PLC SHAREHOLDERS’ EQUITY | 16,014,606 | 14,409,008 | ||||||
NONCONTROLLING INTERESTS | 469,039 | 418,683 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 16,483,645 | 14,827,691 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 35,057,319 | $ | 29,789,880 |
Three Months Ended | Nine Months Ended | |||||||||||||||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net income | $ | 1,252,639 | $ | 1,268,649 | $ | 3,879,889 | $ | 3,700,693 | ||||||||
Depreciation, amortization and other | 444,660 | 221,309 | 1,286,234 | 652,592 | ||||||||||||
Share-based compensation expense | 290,866 | 263,674 | 938,100 | 856,952 | ||||||||||||
Change in assets and liabilities/other, net | 753,301 | 369,910 | (1,045,205 | ) | (699,537 | ) | ||||||||||
Net cash provided by (used in) operating activities | 2,741,466 | 2,123,542 | 5,059,018 | 4,510,700 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Purchases of property and equipment | (149,981 | ) | (140,261 | ) | (410,414 | ) | (357,749 | ) | ||||||||
Purchases of businesses and investments, net of cash acquired | (742,062 | ) | (540,833 | ) | (1,326,366 | ) | (1,055,915 | ) | ||||||||
Proceeds from the sale of businesses and investments | 5,686 | 26,106 | 84,886 | 27,915 | ||||||||||||
Other investing, net | 1,362 | (177 | ) | 3,717 | 6,041 | |||||||||||
Net cash provided by (used in) investing activities | (884,995 | ) | (655,165 | ) | (1,648,177 | ) | (1,379,708 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Proceeds from issuance of ordinary shares | 349,165 | 308,176 | 849,565 | 754,453 | ||||||||||||
Purchases of shares | (626,688 | ) | (488,453 | ) | (2,325,955 | ) | (2,284,587 | ) | ||||||||
Cash dividends paid | (508,913 | ) | (931,515 | ) | (1,528,532 | ) | (1,864,353 | ) | ||||||||
Other financing, net | (11,614 | ) | (10,270 | ) | (30,628 | ) | (21,666 | ) | ||||||||
Net cash provided by (used in) financing activities | (798,050 | ) | (1,122,062 | ) | (3,035,550 | ) | (3,416,153 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (52,616 | ) | (42,046 | ) | (59,883 | ) | (7,041 | ) | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,005,805 | 304,269 | 315,408 | (292,202 | ) | |||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 5,436,456 | 4,464,889 | 6,126,853 | 5,061,360 | ||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 6,442,261 | $ | 4,769,158 | $ | 6,442,261 | $ | 4,769,158 |
Cover Page |
Jun. 25, 2020 |
---|---|
Cover [Abstract] | |
Entity Central Index Key | 0001467373 |
Amendment Flag | false |
Document Type | 8-K |
Document Period End Date | Jun. 25, 2020 |
Entity Registrant Name | Accenture plc |
Entity Incorporation, State or Country Code | L2 |
Entity File Number | 001-34448 |
Entity Tax Identification Number | 98-0627530 |
Entity Address, Address Line One | 1 Grand Canal Square |
Entity Address, Address Line Two | Grand Canal Harbour |
Entity Address, City or Town | Dublin |
Entity Address, Postal Zip Code | 2 |
Entity Address, Country | IE |
Country Region | 353 |
City Area Code | 1 |
Local Phone Number | 646-2000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A ordinary shares, par value $0.0000225 per share |
Trading Symbol | ACN |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
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