Driving reinvention,
delivering 360° value
Annual Report
Fiscal 2023
We achieved another strong year of financial performance in fiscal
2023, with record new bookings, continued adjusted operating
margin expansion and adjusted EPS growth, and very strong cash
flow, driving shareholder value creation. These results continue to
enable us to deliver 360° value for all our stakeholders.
Revenues
$64.1B
An increase of 8% in
local currency and
4% in U.S. dollars
New bookings
$72.2B
A 5% increase in local currency
and 1% in U.S. dollars, with a
book-to-bill of 1.1
Diluted earnings per share (Adjusted)
Operating margin (Adjusted)
$11.67
15.4%
A 9% increase, after adjusting fiscal
2023 GAAP EPS of $10.77 to exclude the
impact of business optimization costs of
$1.28 per share and an investment gain
of $0.38 per share. On a GAAP basis,
full-year FY23 EPS increased 1%
An expansion of 20 basis points, after
adjusting fiscal 2023 GAAP operating
margin of 13.7% to exclude business
optimization costs of 170 basis points.
On a GAAP basis, full-year FY23
operating margin decreased 150 bps
Free cash flow
$9.0B
Defined as operating cash
flow of $9.5 billion net of
property and equipment
additions of $528 million
For 12 months ended August 31, 2023
Cash returned to shareholders
$7.2B
Defined as cash dividends
of $2.8 billion plus share
repurchases of $4.3 billion
1
From our
Chair and
CEO
I am writing to share the
360° value we created in
fiscal year 2023, our view on
the reinvention landscape
ahead and the power of AI
in reinvention.
While the pace of spending has
changed, the fundamentals
have not. All strategies
continue to lead to technology,
and companies will need to
reinvent every part of their
enterprise using tech, data and
AI to optimize operations and
accelerate growth. Despite
the cautious macroeconomic
environment, we are well-
positioned for the future.
2
360° Value
in Fiscal Year 2023
Our laser focus on creating 360° value for our
clients and all our stakeholders is reflected in our
overall strong results for the year. With record new
bookings of $72 billion, we had a record 106 clients
with quarterly bookings greater than $100 million
in fiscal 2023, an increase from 100 last year.
We now have 300 Diamond clients, our largest client relationships, an
increase of 33 from last year, demonstrating yet again the depth and
breadth of our capabilities and the trust our clients have in us. Our brand
is strong—our ranking on BrandZ’s Top 100 Most Valuable Global Brands
list rose from No. 26 to No. 22, our highest to date, with a brand value of
$73.6 billion.
We delivered revenues of $64 billion for the year, representing 8% growth in
local currency while continuing to take market share. We expanded adjusted
operating margin by 20 basis points and delivered adjusted EPS growth of
9% while continuing to significantly invest in our business and our people,
with capital deployed of $2.5 billion across 25 acquisitions; $1.3 billion in
R&D, assets, platforms and industry solutions; and $1.1 billion invested in the
learning and professional development of our people.
We generated free cash flow of $9 billion, allowing us to return over $7
billion of cash to shareholders. And we are delivering a little ahead of
schedule on our business optimization actions we announced in March
to reduce structural costs to create greater resilience.
We also continued to attract, retain and inspire outstanding people through
our talent strategy. We are making progress toward our commitment to net
zero by 2025, and we invested in our communities to help ensure we have
vibrant places where we work and live. Read on for more detail.
3
Our ongoing investments
$2.5B
Deployed across 25 strategic
acquisitions to scale our business
in high-growth areas, add skills and
capabilities in new areas and deepen
our industry and functional expertise
$1.3B
Invested in research and development
in our assets, platforms and industry
and functional solutions
$1.1B
Invested in learning and
professional development
4
"Our strong results for fiscal
2023 reflect our constant focus
on the needs of our clients,
the uniqueness and breadth
of our services and industry
expertise, and the commitment
and dedication of our 733,000
talented people."
Julie Sweet
5
The Reinvention
Ahead
We believe helping build a strong digital
core and then using it to reinvent will be
the drivers of our clients’ reinvention and
of our growth. Our ability to advise, shape
and deliver value-led transformation—
leveraging the breadth of our services
from strategy and consulting to technology
to our managed services across industries
and geographic markets, along with our
privileged position with our ecosystem
partners—is what makes Accenture unique.
As we enter FY24, we know
that there is more reinvention
ahead of us than behind us.
Our clients have even greater
opportunities to transform,
and we continue to be their
partner of choice.
At the center of reinvention is the digital
core. We continue to see significant
demand in areas like cloud migration and
modernization, modern ERP and data
and AI, and the emergence of generative
AI in particular, all of which represent
areas of great opportunity. And it is still
early. For example, we estimate that only
40% of workloads are in the cloud, only
1/3 of clients have modernized their ERP
platforms, and less than 10% have what we
define as mature data and AI capabilities.
6
360° Value for Our People,
Planet and Communities
Core to our success is our
ability to attract, retain and
inspire our outstanding talent.
We continue to lead in our ability to
attract people with different backgrounds,
different perspectives, and different
lived experiences.
These differences help ensure that we can
attract the cognitive diversity to deliver
a variety of perspectives, observations
and insights that are critical to drive
the innovation needed to reinvent. Our
success is reflected in being the top-
scoring company on the Bloomberg
Gender-Equality Index for the second year
in a row, and we also earned the #1 position
on the Refinitiv Global Diversity & Inclusion
Index for the fourth time in six years. This
index ranks over 15,000 organizations
globally and identifies the top 100 publicly
traded companies with the most diverse
and inclusive workplaces.
We want our people to feel they are Net
Better Off for working at Accenture. This
strategy has four dimensions—people
feeling healthy and well, physically,
emotionally and financially; feeling
connected with a sense of belonging;
feeling their work has purpose; and feeling
they are continuing to build market-
relevant skills. This year, for example, our
people participated in approximately 40
million training hours. We want all our
people to believe that Accenture is the
best place to achieve their aspirations,
both personally and professionally.
And this year we were a recipient of the
Brandon Hall Gold Award for best benefits,
wellness and well-being programs.
Building on our long-standing commitment
to the environment, we are pleased to
have hit a significant milestone on our path
to net zero, achieving our goal of 100%
renewable electricity across our Accenture
offices. Additionally, we reused or recycled
nearly 100% of our e-waste in fiscal 2023
and have eliminated single-use plastics in
our office locations by purchasing reusable
and plastic-free items.
Vibrant communities are also important
for our business success, and we
continue to prioritize creating value in
these communities around the world. For
example, Accenture is helping to welcome
refugees, recognizing how they enrich our
communities with their courage, strength
and talent. On World Refugee Day in
June 2023, we committed to partner with
organizations to help skill and support
an estimated 16,000 refugee job seekers
and migrants and to hire 100 refugees in
Europe over the next three years.
7
Achieved our goal
100%
We reached our goal of
100% renewable electricity
across our Accenture offices
Promoted
our people
123,000
We celebrated
123,000 promotions,
demonstrating our
continued commitment to
creating vibrant careers
and opportunities for
our people
Invested in
our people
40M
training hours
We delivered
approximately 40
million training hours
8 AI and
Reinvention
We are entering the age of AI.
AI will be a mega-trend,
reinventing businesses,
industries and the way we
live and work.
Our research shows that one form of AI,
generative AI, has the potential to be a
significant driver of reinvention.
Accenture has been working with AI for
more than 15 years, and we believe that it is
in a place similar to where cloud was over a
decade ago—fundamental to the future, but
still maturing. Just as we successfully did
with SaaS and with cloud, we are investing
to take an early lead and have positioned
Accenture to help clients act on AI.
In June, we announced an industry-leading
$3 billion investment in our Data & AI
practice over the next three years. We plan
on doubling our AI talent to 80,000 people
and expect to invest in assets, industry
solutions, ventures and acquisitions. We
appointed a Chief AI Officer, launched a
global generative AI Center of Excellence,
and created comprehensive AI training
for our entire workforce. While still in the
early stages, generative AI technology is
maturing rapidly, and we believe it will be
a significant source of value for us and our
clients over time.
Some of the key ingredients of our
success in generative AI are ecosystem
partnerships, talent and responsible AI.
9
An industry-leading
$3 Billion
investment in our Data & AI
practice over the next three years
10
generative AI, the pace and impact are
growing rapidly. And we are now taking a
further step to equip more than 250,000
people with skills to use new AI tools
equitably, sustainably and without bias.
Responsible AI is essential. At Accenture,
we have an industry-leading responsible AI
compliance program that is embedded in
how we use and deliver AI. And we are using
our experience and lessons learned to help
our clients build out their own responsible AI
program, which is necessary to address the
risks and get the full value from AI.
Finally, we are embracing generative
AI across our services, developing new
cutting-edge tools and solutions and
embedding it in the way we work. Our
approach takes into account where the
technology is today, the need to deploy it
responsibly, and the recognition that we
do work in highly complex environments.
The extent and pace of this generative AI
progression will become clearer over the
coming quarters as the technology and the
market continue to mature and progress.
As always, we are starting with deep
relationships and leadership in the
ecosystem, from the hyperscalers to
the model builders, to the startups and
academics. It is important to emphasize
that we are early in the maturity of
generative AI for enterprise—and our depth,
experience and insight on these platforms
are essential to guiding our clients.
Second, talent. We start with a deep
technical knowledge and understanding
of AI and generative AI and blend that with
our industry and functional expertise to
reinvent across the enterprise, including
processes and operating models, bringing
together the depth and breadth of our
expertise. And that is where Accenture
is different, building the bridge from "as
is" to the future. We have already trained
approximately 600,000 of our people
in the fundamentals of AI. Now with
11 Our Leadership Essentials
As we close, we want to remind you of our Leadership Essentials,
which are critical to the trust we have with our clients and people
and our ability to navigate tough macros as well as rapidly innovate
as we have done in generative AI. We nurture and develop these
leadership essentials at all levels of the organization, as this is critical
to our long-term resilience and growth. Our Leadership Essentials
set the standard for what we expect of each leader and enable us to
successfully create 360° value.
• Always do the right thing,
•
in every decision and action;
• Lead with excellence,
confidence and humility,
as demonstrated by being
a learner, building great
teams and being naturally
collaborative;
Live our unwavering
commitment to inclusion,
diversity and equality, as
demonstrated by personal
impact and overall results;
• Have the courage to change
and the ability to bring our
people along the journey; and
• Exemplify client-centricity
• Actively innovate—seeking
and a commitment to client
value creation;
• Act as a true partner, to
each other, our clients,
our ecosystem and our
communities—committed
to shared success;
• Care deeply for all our people
to help them achieve their
aspirations professionally and
personally;
new answers, applying a tech,
AI and data first mindset,
looking internally across
Accenture and outside—to
partners, competitors, start-
ups, clients, academia and
analysts—to learn, respectfully
challenge our assumptions
and apply the innovation,
and cultivate and reward our
people for doing the same.
12
Thank You
Delivering 360° value to all
our stakeholders has never
been more important as they
embrace change in a fast-
moving world.
I want to thank each of our incredibly
talented people around the world for their
hard work and commitment to delivering
this value every day. And to our clients,
shareholders, partners and communities:
your ongoing trust and support help us
make Accenture the best it can be, every
day. Thank you for the trust you place
in Accenture. We look forward to the
reinvention that is ahead for us all.
Julie Sweet
Chair and Chief Executive Officer
October 12, 2023
13
Comparison of
Cumulative Total Return
August 31, 2018–August 31, 2023
Accenture vs. S&P 500 Stock Index and S&P 500 Information Technology Sector Index
The performance graph to the
right shows the cumulative total
shareholder return on our Class
A shares for the period starting
on August 31, 2018, and ending
on August 31, 2023, which was
the end of fiscal 2023. This is
compared with the cumulative
total returns over the same period
of the S&P 500 Stock Index
and the S&P 500 Information
Technology Sector Index. The
graph assumes that, on August
31, 2018, $100 was invested in
our Class A shares and $100 was
invested in each of the other two
indices, with dividends reinvested
on the ex-dividend date without
payment of any commissions. The
performance shown in the graph
represents past performance
and should not be considered an
indication of future performance.
$350
$300
$250
$200
$150
$100
$50
$0
2018
2019
2020
2021
2022
2023
Accenture
S&P 500 Index
S&P 500 Information Technology Sector Index
Indexed Prices as of August 31
2018
2019
2020
2021
2022
2023
Accenture
$100
$119
$147
$209
$181
$206
S&P 500 Index
$100
$103
$125
$165
$146
$169
S&P 500 IT Sector Index
$100
$107
$168
$218
$187
$249
14 AVTAR & Seramount Best
Companies for Women in India
Top 10 for 8 consecutive years;
Hall of Fame since 2020
Cannes Lions
Accenture Song won 9 Lions,
including the prestigious
Titanium Grand Prix
AVTAR & Seramount Most
Inclusive Companies Index in India
Disability:IN Disability
Equality Index
“Champions of Inclusion” for
5 consecutive years
Among top-scoring companies
for 7 consecutive years
Bloomberg Gender-Equality Index
Top scoring company for
2 consecutive years
Ethisphere World’s Most
Ethical Companies
16 consecutive years
Brandon Hall Group Excellence
in Human Capital Management
Awards
Top winner for 8 consecutive
years; recognized this year for DEI,
Future of Work, HR, Leadership
Development, Learning &
Development, Sales Performance,
Talent Acquisition and
Talent Management
Fair360 Top 50 Companies for
Diversity in the U.S.
Hall of Fame; No. 1 in 2022;
16 consecutive years on list
Forbes Global 2000
No. 160, marking 20
consecutive years on list
Great Place to Work®
Best Workplaces™
No. 17 on World’s Best Workplaces™;
No. 15 in Asia and Latin America;
Top 10 in 7 countries: Argentina,
Brazil, Chile, Indonesia, Mexico,
Philippines, and U.S.
Human Rights Campaign
Corporate Equality Index
Among top-scoring companies in
Argentina, Chile, Mexico and U.S.
JUST Capital America’s Most
JUST Companies
No. 1 in our industry, No. 4 overall,
7 consecutive years on list
LATINA Style 50 Best Companies
for Latinas to Work for in the U.S.
No. 1, marking 10 consecutive
years on list
Awards & Recognition
BrandZ Most Valuable
Global Brands
No. 22 with a brand value of
$73.6B; marking 18 consecutive
years on list
Brand Finance Most Valuable IT
Services Brands
No. 1 for the 5th consecutive year
with a brand value of $39.9B
Business Today India’s Best
Companies to Work For
No. 2, marking 12 consecutive
years among the Top 10
FORTUNE Global 500
Minshu Top Employers in Japan
No. 220, marking 22
consecutive years on list
No. 1 in our industry, No. 21 overall,
8 consecutive years on list
FORTUNE Most Powerful Women
Chair and CEO Julie Sweet No. 2
for the 2nd consecutive year
Refinitiv Global Diversity
& Inclusion Index
No. 1 for the 4th time in 6 years,
8 consecutive years on list
FORTUNE World’s Most
Admired Companies
No. 1 in our industry for 10
years, No. 32 overall, marking
21 consecutive years on list
The Times Top 50 Employers
for Gender Equality in the U.K.
8 consecutive years
Workplace Pride Global Benchmark
Among the highest-scoring
companies for 7 consecutive years
15
Stock listing
Accenture plc Class A ordinary shares are traded on
the New York Stock Exchange under the symbol ACN.
Available information
Our website address is accenture.com. We use our
website as a channel of distribution for company
information. We make available free of charge on the
Investor Relations section of our website (investor.
accenture.com) our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports
on Form 8-K and all amendments to those reports as
soon as reasonably practicable after such material is
electronically filed with or furnished to the Securities
and Exchange Commission (the “SEC”) pursuant
to Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”). We also make
available through our website other reports filed
with or furnished to the SEC under the Exchange
Act, including our proxy statements and reports filed
by officers and directors under Section 16(a) of the
Exchange Act, as well as our Code of Business Ethics.
Financial and other material information regarding
Accenture is routinely posted on and accessible
at investor.accenture.com. We do not intend for
information contained in this letter or on our website
to be part of the Annual Report on Form 10-K. This
letter and our Annual Report on Form 10-K for the
fiscal year ended August 31, 2023 (including the
sections of our definitive proxy statement relating to
our 2024 Annual General Meeting of Shareholders
incorporated by reference), together constitute
Accenture’s annual report to security holders for
purposes of Rule 14a-3(b) of the Exchange Act.
Trademark references
Rights to trademarks referenced herein, other than
Accenture trademarks, belong to their respective
owners. We disclaim proprietary interest in the marks
and names of others.
Forward-looking statements and
certain factors that may affect
our business
We have included in this letter “forward-looking
statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the
Exchange Act relating to our operations, results of
operations and other matters that are based on our
current expectations, estimates, assumptions and
projections. Words such as “will,” “plan,” “believe”
and similar expressions are used to identify these
forward-looking statements. These statements are not
guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to
predict. Forward-looking statements are based upon
assumptions as to future events that may not prove to
be accurate. Actual outcomes and results may differ
materially from what is expressed or forecast in these
forward-looking statements. Risks, uncertainties
and other factors that might cause such differences,
some of which could be material, include, but are
not limited to, the factors discussed in our Annual
Report on Form 10-K and Quarterly Reports on Form
10-Q (available through the Investor Relations section
of our website at investor.accenture.com) under the
sections entitled “Risk Factors.” Our forward-looking
statements speak only as of the date of this letter
or as of the date they are made, and we undertake
no obligation to update them, notwithstanding any
historical practice of doing so. Forward-looking and
other statements in this document may also address
our corporate responsibility progress, plans and goals
(including environmental matters), and the inclusion
of such statements is not an indication that these
contents are necessarily material to investors or
required to be disclosed in the Company’s filings with
the SEC. In addition, historical, current and forward-
looking sustainability-related statements may be
based on standards for measuring progress that are
still developing, internal controls and processes that
continue to evolve, and assumptions that are subject
to change in the future.
Reconciliation of non-GAAP measures
This letter contains certain non-GAAP (Generally
Accepted Accounting Principles) measures that our
management believes provide our shareholders
with additional insights into Accenture’s results of
operations. The non-GAAP measures in this letter
are supplemental in nature. They should not be
considered in isolation or as alternatives to net income
as indicators of company performance, to cash flows
from operating activities as measures of liquidity, or
to other financial information prepared in accordance
with GAAP. Reconciliations of this non-GAAP financial
information to Accenture’s financial statements as
prepared under GAAP are included in this report.
All amounts throughout this letter are stated in U.S. dollars,
except where noted.
16 Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☑
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended August 31, 2023
Commission File Number: 001-34448
Accenture plc
(Exact name of registrant as specified in its charter)
Ireland
(State or other jurisdiction of
incorporation or organization)
98-0627530
(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
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of
1934. Yes ☐ No ☑
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 ☑ 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 ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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
Smaller reporting company
☑
☐
Accelerated filer
Emerging growth company
☐
☐
Non-accelerated filer
☐
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 has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm
that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the common equity of the registrant held by non-affiliates of the registrant on February 28, 2023 was approximately
$167,632,186,277 based on the closing price of the registrant’s Class A ordinary shares, par value $0.0000225 per share, reported on the New York
Stock Exchange on such date of $265.55 per share and on the par value of the registrant’s Class X ordinary shares, par value $0.0000225 per
share.
The number of shares of the registrant’s Class A ordinary shares, par value $0.0000225 per share, outstanding as of September 28, 2023 was
664,786,627 (which number includes 37,174,510 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 September 28, 2023 was 325,438.
Table of Contents
Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the
registrant’s Annual General Meeting of Shareholders, to be held on January 31, 2024, will be incorporated by reference in this Form 10-K in
response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC not later than 120 days after the
registrant’s fiscal year ended August 31, 2023.
DOCUMENTS INCORPORATED BY REFERENCE
Table of Contents
Table of Contents
Part I
Item 1.
Business
Item 1A.
Risk Factors
Item 1B.
Unresolved Staff Comments
Item 1C.
Cybersecurity
Item 2.
Item 3.
Item 4.
Part II
Item 5.
Item 6.
Item 7.
Properties
Legal Proceedings
Mine Safety Disclosures
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
[Reserved]
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.
Quantitative and Qualitative Disclosures about Market Risk
Item 8.
Item 9.
Financial Statements and Supplementary Data
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures
Item 9B.
Other Information
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Part III
Item 10.
Directors, Executive Officers and Corporate Governance
Item 11.
Executive Compensation
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
Item 13.
Certain Relationships and Related Transactions, and Director Independence
Item 14.
Principal Accountant Fees and Services
Part IV
Item 15.
Exhibits, Financial Statement Schedules
Item 16.
Form 10-K Summary
Signatures
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2
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Table of Contents
ACCENTURE 2023 FORM 10-K
Part I
Part I
1
Disclosure Regarding Forward-Looking Statements
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our operations, results
of operations and other matters that are based on our current expectations, estimates, assumptions and projections. Words
such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,”
“positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements are
not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-
looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and
results may differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and
other factors that might cause such differences, some of which could be material, include, but are not limited to, the factors
discussed below under the section entitled “Risk Factors.” Our forward-looking statements speak only as of the date of this
report or as of the date they are made, and we undertake no obligation to update them, notwithstanding any historical
practice of doing so. Forward-looking and other statements in this document may also address our corporate responsibility
progress, plans, and goals (including environmental matters), and the inclusion of such statements is not an indication that
these contents are necessarily material to investors or required to be disclosed in our filings with the Securities and
Exchange Commission. In addition, historical, current, and forward-looking sustainability-related statements may be based
on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future.
Available Information
Our website address is www.accenture.com. We use our website as a channel of distribution for company information. We
make available free of charge on the Investor Relations section of our website (http://investor.accenture.com) our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports
as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange
Commission (the “SEC”) pursuant to Section 13(a) or 15(d) of the Exchange Act. We also make available through our
website other reports filed with or furnished to the SEC under the Exchange Act, including our proxy statements and reports
filed by officers and directors under Section 16(a) of the Exchange Act, as well as our Code of Business Ethics. Financial and
other material information regarding us is routinely posted on and accessible at http://investor.accenture.com and on the
Accenture 360° Value Reporting Experience (http://www.accenture.com/reportingexperience). We do not intend for
information contained in our website to be part of this Annual Report on Form 10-K.
The SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements and other
information regarding issuers that file electronically with the SEC. Any materials we file with the SEC are available on such
Internet site.
In this Annual Report on Form 10-K, we use the terms “Accenture,” “we,” “our” and “us” to refer to Accenture plc and its
subsidiaries. All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 1. Business
2
Item 1. Business
Overview
Accenture is a leading global professional services company that helps the world’s
leading businesses, governments and other organizations build their digital core,
optimize their operations, accelerate revenue growth and enhance citizen services—
creating tangible value at speed and scale. We are a talent- and innovation-led
company with approximately 733,000 people serving clients in more than 120
countries. Technology is at the core of change today, and we are one of the world’s
leaders in helping drive that change, with strong ecosystem relationships. We combine
our strength in technology and leadership in cloud, data and AI with unmatched
industry experience, functional expertise and global delivery capability. We are
uniquely able to deliver tangible outcomes because of our broad range of services,
solutions and assets across Strategy & Consulting, Technology, Operations, Industry
X and Song. These capabilities, together with our culture of shared success and
commitment to creating 360° value, enable us to help our clients reinvent and build
trusted, lasting relationships. We measure our success by the 360° value we create for
our clients, each other, our shareholders, partners and communities.
We serve clients and manage our business
through three geographic markets: North America,
Europe and Growth Markets (Asia Pacific, Latin
America, Africa and the Middle East). These
markets bring together all of our capabilities
across our services, industries and functions to
deliver value to our clients.
In the first quarter of fiscal 2024, our Middle East
and Africa market units will move from Growth
Markets to Europe, and the Europe market will be
referred to as our Europe, Middle East and Africa
(EMEA) geographic market.
We go to market by industry, leveraging our deep
expertise across our five industry groups—
Communications, Media & Technology, Financial
Services, Health & Public Service, Products and
Resources. Our integrated service teams meet
client needs rapidly and at scale, leveraging our
network of more than 100 innovation hubs, our
technology expertise and ecosystem relationships,
and our global delivery capabilities.
Fiscal 2023 Highlights
$64.1B in revenues
Our revenues are derived primarily from Forbes
Global 2000 companies, governments and
government agencies.
We employed approximately
733,000 people
as of August 31, 2023.
We have long-term relationships and
have partnered with
our top 100 clients
for more than 10 years.
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3
Fiscal 2023 Investments
$2.5B
$1.3B
across 25 strategic acquisitions
in research and development
$1.1B
in learning and professional
development
During fiscal 2023, we continued to make significant investments—in strategic acquisitions, in research and development
(R&D) in our assets, platforms and industry and functional solutions, in patents and pending patents and in attracting,
retaining and developing people. These investments help us to further enhance our differentiation and competitiveness in the
marketplace. Our disciplined acquisition strategy, which is an engine to fuel organic growth, is focused on scaling our
business in high-growth areas; adding skills and capabilities in new areas; and deepening our industry and functional
expertise. In fiscal 2023, we invested $2.5 billion across 25 strategic acquisitions, $1.3 billion in R&D, and $1.1 billion in
learning and professional development.
Our Strategy
The core of our growth strategy is delivering 360° value to our clients, people, shareholders, partners and communities by
helping them continuously reinvent. Our strategy defines the areas in which we will drive growth, build differentiation via 360°
value and enable our clients to transform their organizations through technology, data and AI to create value every day. We
aspire to be at the center of our clients’ business and help them reach new levels of performance and to set themselves
apart as leaders in their industries.
We define 360° value as delivering the financial business case and unique value a client may be seeking, and striving to
partner with our clients to achieve greater progress on inclusion and diversity, reskill and upskill our clients’ employees, help
our clients achieve their sustainability goals, and create meaningful experiences, both with Accenture and for the customers
and employees of our clients.
We bring industry specific solutions and services as well as cross industry expertise and leverage our scale and global
footprint, innovation capabilities, and strong ecosystem partnerships together with our assets and platforms including
myWizard, myNav, SynOps and AI Navigator for Enterprise to deliver tangible value for our clients.
We help our clients use technology to drive enterprise-wide transformation, which includes:
•
•
•
building their digital core—such as moving them to the cloud, leveraging data and AI, and embedding security across
the enterprise;
optimizing their operations—such as helping our clients digitize faster, access digital talent and reduce costs as well
as through digitizing engineering and manufacturing; and
accelerating their revenue growth—such as through using technology and creativity to create personalized
connections, experiences and targeted sales at scale, leveraging data and AI, transforming content supply chains and
marketing and commerce models and helping create new digital services and business models.
Our managed services are strategic for our clients as companies seek to move faster and leverage our digital platforms and
talent as well as reduce costs.
We believe our strategy to deliver 360° value makes us an attractive destination for top talent, a trusted partner to our clients
and ecosystem, and a respected member of our communities.
We believe that the companies that will lead in the next decade need to harness the five key forces of change we have
identified—total enterprise reinvention, talent, sustainability, the metaverse continuum and the ongoing technology revolution.
We are investing and co-creating with clients and partners to lead in helping our clients thrive across these forces, which we
expect to have different time horizons. Today, the demand we continue to see across our geographic markets, services and
industries is being primarily driven by the first two, as companies are in the early stages of harnessing these forces. We have
summarized below each of the five key forces as we currently see them evolving.
•
Total enterprise reinvention, as we believe every part of every business must be transformed by technology, data and
AI, with new ways of working and engaging with customers, employees and partners, and new business models,
products and services. We are helping clients build their digital core, optimize operations and accelerate growth.
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4
•
•
•
•
Talent, as companies must be able to access great talent, be talent creators not just consumers, and unlock the
potential of their people—from the ways they organize and work, to their culture, to their employee value proposition.
Sustainability, as consumers, employees, business partners, regulators and investors are demanding companies move
from commitment to action—we believe every business must be a sustainable business.
The metaverse continuum, moving seamlessly between virtual and physical, which we believe will provide even
greater possibilities in the next waves of digital transformation.
The ongoing technology revolution, from the rich innovation to come in the powerful technologies being used to
transform companies today, to the new fields of the future, from quantum computing, to science and space technology.
We believe that helping clients navigate these five key forces of change will, in turn, drive our growth.
Key enablers of our growth strategy include:
Our People—As a talent- and innovation-led organization, across our entire business our people have highly
specialized skills that drive our differentiation and competitiveness. We care deeply for our people, and are committed
to a culture of shared success, to investing in our people to provide them with boundaryless opportunities to learn and
grow in their careers through their work experience and continued development, training and reskilling, and to helping
them achieve their aspirations both professionally and personally. We have an unwavering commitment to inclusion
and diversity.
Our Commitment—We are a purpose-driven company, committed to delivering on the promise of technology and
human ingenuity by continuously innovating and developing leading-edge ideas and leveraging emerging
technologies in anticipation of our clients’ needs. Our culture is underpinned by our core values and Code of Business
Ethics, which are key drivers of the trust our clients and partners place in us.
Our Foundation—Our Leadership Essentials set the standard for what we expect from our people. Our growth model,
which leverages our global sales, client experience and innovation, while organizing around geographic markets and
industry groups within those markets, enables us to be close to our clients, people and partners to scale efficiently. Our
enduring shareholder value proposition is also a key element of the foundation that enables us to execute on our
growth strategy through the financial value it creates.
Geographic Markets
Our geographic markets—North America, Europe and Growth
Markets—bring together integrated service teams, which
typically consist of industry and functional experts, technology
and capability specialists and professionals with local market
knowledge and experience, to meet client needs. The
geographic markets have primary responsibility for building
and sustaining long-term client relationships; bringing together
our expertise from around the globe and collaborating across
our business to sell and deliver our full range of services and
capabilities; ensuring client satisfaction; and achieving
revenue and profitability objectives.
While we serve clients in locally relevant ways, our global
footprint and scale in every major country give us the ability to
leverage our experience and people from around the world to
accelerate outcomes for our clients.
Our three geographic markets are our reporting segments.
The percent of our revenues represented by each market is
shown at right.
Percent of Fiscal 2023 RevenueNorth America47%Europe33%Growth Markets20% Table of Contents
ACCENTURE 2023 FORM 10-K
Item 1. Business
5
Services
We bring together skills, capabilities, industry experience and functional expertise to help our clients achieve tangible
outcomes and create 360° value.
Strategy & Consulting
We work with C-suite executives, leaders and boards of the world’s leading organizations, helping them reinvent every part
of their enterprise to drive greater growth, enhance competitiveness, implement operational improvements, reduce cost,
deliver sustainable 360° stakeholder value, and set a new performance frontier for themselves and the industry in which they
operate. Our deep industry and functional expertise is supported by proprietary assets and solutions that help organizations
transform faster and become more resilient. Underpinned by technology, data, analytics, AI, change management, talent and
sustainability capabilities, our Strategy & Consulting services help architect and accelerate all aspects of an organization’s
total enterprise reinvention.
Technology
We provide innovative and comprehensive services and solutions that span cloud; systems integration and application
management; security; intelligent platform services; infrastructure services; software engineering services; data and AI;
automation; and global delivery through our Advanced Technology Centers. We continuously innovate our services,
capabilities and platforms through early adoption of new technologies such as generative AI, blockchain, robotics, 5G, edge
computing, metaverse and quantum computing. We provide a range of capabilities that addresses the challenges faced by
organizations today, including how to achieve total enterprise reinvention, manage change and develop new growth
opportunities.
We are continuously innovating and investing in R&D for both existing and new forms of technology. Our focus in our Labs
includes furthering innovation beyond traditional boundaries, such as science and space technologies. Our innovation hubs
around the world help clients innovate at unmatched speed, scope and scale. We have strong relationships with the world’s
leading technology companies, as well as emerging start-ups, which enable us to enhance our service offerings, augment
our capabilities and deliver distinctive business value to our clients. Our strong ecosystem relationships provide a significant
competitive advantage, and we are a key partner of a broad range of technology providers, including Adobe, Alibaba,
Amazon Web Services, Blue Yonder, Cisco, Databricks, Dell, Google, HPE, IBM RedHat, Microsoft, Oracle, Pegasystems,
Salesforce, SAP, ServiceNow, Snowflake, VMware, Workday and many others. In addition to our mature partners, we invest
in emerging technologies through Accenture Ventures. We push the boundaries of what technology can enable and help
clients get the most value and best capabilities out of platforms.
Operations
We operate business processes on behalf of clients for specific enterprise functions, including finance and accounting,
sourcing and procurement, supply chain, marketing and sales, and human resources, as well as industry-specific services,
such as platform trust and safety, banking, insurance, network and health services. We help organizations to reinvent
themselves through intelligent operations, enabled by SynOps, our cloud enabled platform that empowers people with data,
processes, automation, generative AI and a broad ecosystem of technology partners to transform enterprise operations at
speed and scale.
Industry X
We combine our digital capabilities with deep engineering and manufacturing expertise. By using the combined power of
digital and data we help our clients to reinvent and reimagine the products they make and how they make them. This
includes helping our clients to digitally transform how their capital projects are planned, managed and executed, from plant
and asset construction to public infrastructure, power grids and data centers. We collaborate closely with our platform and
software partners to help our clients achieve compressed transformations by redefining how their products are designed and
engineered, tested, sourced and supplied, manufactured, and serviced, returned and renewed. We also design,
manufacture, and assemble our own advanced automation equipment, robotics and other specialized commercial hardware
to support our clients’ operations. Through the use of data and transformative technologies such as AI, Internet of Things,
artificial reality/virtual reality, advanced robotics, digital twins and metaverse we help our clients reinvent to achieve greater
resilience, productivity and sustainability in their core operations and design and engineer intelligent products faster and
more cost effectively. And in doing so, we help them create new, hyper-personalized experiences and intelligent products and
services.
Song
We strive to accelerate growth and value for our clients across industries through sustained customer relevance with
emerging channels, technologies, including generative AI, and models tied to the ever-changing needs and preferences of
business-to-business and business-to-consumer customers. Our capabilities span ideation to execution: growth, product and
experience design; technology and experience platforms; creative, media and marketing strategy; and campaign, content
and channel orchestration. With strong client relationships and deep industry expertise, we help our clients operate at speed
through the potential of imagination, technology and intelligence.
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6
Industry Groups
We believe the depth and breadth of our industry expertise is a key competitive advantage which allows us to bring client-
specific industry solutions to our clients to accelerate value creation. Our industry focus gives us an understanding of
industry evolution, business issues and trends, industry operating models, capabilities and processes and new and emerging
technologies. The breadth of our industry expertise enables us to create solutions that are informed by cross industry
experience. We go to market through the following five industry groups within our geographic markets.
Communications, Media & Technology
FY23 Revenues of $11.5B
Percent of Group’s FY23 Revenue
42%
Communications & Media
16%
High Tech
42%
Software & Platforms
Wireline, wireless/mobile, broadcast, entertainment,
gaming, print, online publishing; television networks,
streaming services, content; sports including online,
in-person, platform and associated infrastructure;
cable and satellite communications and media
infrastructure providers
Enterprise and consumer
technology, network and
equipment manufacturers;
silicon design,
semiconductor design and
foundries; data centers; AI
computing manufacturers;
high-tech/electronic
manufacturing including
battery, engineering
design automation and
medical equipment
companies
Cloud-based enterprise and consumer software
companies, large language model owners; both
subscription and ad-driven consumer platforms
spanning ecommerce, social, media, advertising and
gaming
Financial Services
FY23 Revenues of $12.1B
Percent of Group’s FY23 Revenue
69%
Banking & Capital Markets
31%
Insurance
Retail and commercial banks, mortgage lenders, payment providers, corporate and investment
banks, private equity firms, market infrastructure providers, wealth and asset management
firms, broker/dealers, depositories, exchanges, clearing and settlement organizations,
retirement services providers and other diversified financial enterprises
Property and casualty, life and annuities
and group benefits insurers, reinsurance
firms and insurance brokers
Health & Public Service
FY23 Revenues of $12.6B
Percent of Group’s FY23 Revenue
32%
Health
68%
Public Service
Healthcare providers, such as hospitals,
public health systems, policy-making
authorities, health insurers (payers), and
industry organizations and associations
Defense departments and military forces; public safety authorities; justice departments;
human and social services agencies; educational institutions; non-profit organizations; cities;
and postal, customs, revenue and tax agencies
Our work with clients in the U.S. federal government is delivered through Accenture Federal Services, a U.S. company and a
wholly owned subsidiary of Accenture LLP, and represented approximately 37% of our Health & Public Service industry
group’s revenues and 15% of our North America revenues in fiscal 2023.
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Products
FY23 Revenues of $19.1B
Percent of Group’s FY23 Revenue
48%
Consumer Goods, Retail & Travel Services
33%
Industrial
Food and beverage, household goods, personal care, tobacco,
fashion/apparel, agribusiness and consumer health companies;
supermarkets, hardline retailers, mass-merchandise discounters,
department, quickserve and convenience stores and specialty
retailers; aviation; and hospitality and travel services companies
Industrial & electrical equipment
manufacturers and industrial
suppliers; and construction, heavy
equipment, consumer durables,
engineering services, real estate,
freight & logistics, aerospace &
defense and automotive and public
transportation companies
19%
Life Sciences
Biopharmaceutical, medical
technology, and
biotechnology companies and
distributors
Resources
FY23 Revenues of $8.9B
Percent of Group’s FY23 Revenue
31%
Chemicals & Natural
Resources
24%
Energy
45%
Utilities
Petrochemicals, specialty chemicals,
polymers and plastics, gases and
agricultural chemicals companies, as
well as the metals, mining, forest
products and building materials
industries
Companies in the oil and gas
industry, including upstream,
midstream, downstream, oilfield
services, clean energy and
energy trading companies
Power generators and developers, electric and gas transmission
and distribution operators, energy and energy service retailers;
water, waste and recycling service providers
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People
Overview
We are a talent- and innovation-led organization with approximately 733,000 people as of August 31, 2023, whose skills and
specialization are a significant source of competitive differentiation.
We serve clients at any given time in more than 120 countries, with offices and operations in 49 countries. The majority of
our people are in India, the Philippines and the U.S.
We have a culture of shared success, which is defined as success for our clients, our people, our shareholders, our partners
and our communities. That culture is built upon four tangible building blocks—our beliefs, our behaviors, the way we develop
and reward our people and the way we do business.
Our Beliefs and Behaviors
Our leadership essentials set the standard for what we expect of all our people:
•
•
•
•
•
always do the right thing, in every decision and action;
•
lead with excellence, confidence and humility, as
demonstrated by being a learner, building great teams
and being naturally collaborative;
exemplify client-centricity and a commitment to client
value creation;
act as a true partner, to each other, our clients, our
ecosystem and our communities—committed to shared
success;
•
•
care deeply for all our people to help them achieve
their aspirations professionally and personally;
live our unwavering commitment to inclusion,
diversity and equality, as demonstrated by personal
impact and overall results;
have the courage to change and the ability to bring our
people along the journey; and
actively innovate—seeking new answers, applying a
tech, AI and data first mindset, looking internally across
Accenture and outside—to partners, competitors, start-
ups, clients, academia and analysts—to learn,
respectfully challenge our assumptions and apply the
innovation, and cultivate and reward our people for
doing the same.
Listening to the voices of our people provides the input to ensure that they have the tools and resources to do their jobs and
the right learning opportunities, and that they experience a positive, respectful and inclusive work environment. We do this on
an ongoing basis across various channels, including surveys and forums. One of our surveys, which was conducted in
November 2022 and measures how our people experience our culture, shows that 91% of our global respondents believe
they can work to their potential because they are in an environment where they are treated with respect and in an
appropriate manner.
Our purpose is to deliver on the promise of technology and human ingenuity. Our strategy is to deliver 360° value for all our
stakeholders by helping them continuously reinvent. To drive reinvention, innovation must be at the forefront, which requires
us to attract, develop and inspire top talent. Talent is one of our most important areas of competitive differentiation. As part of
our talent strategy, we hire and develop people who have different backgrounds, different perspectives, and different lived
experiences. These differences ensure that we have and attract the cognitive diversity to deliver a variety of perspectives,
observations, and insights which are essential to drive the innovation needed to reinvent. To help achieve this diversity we
set goals, share them publicly, and collect data to measure our progress, continuously improve, and hold our leaders
accountable for ensuring we have the most innovative and talented people in our industry. This approach is a key driver of
our progress.
We recognize that some people come to Accenture having faced obstacles as an aspect of their identity or lived experience.
At Accenture, we are committed to harness these perspectives and ensure that all of our people have the opportunity to
thrive and unlock their full potential. We are a meritocracy. Our intention is to foster a culture and a workplace in which all of
our people feel a sense of belonging and are respected and empowered to do their best work and to create 360° value for all
our stakeholders.
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We are now 48% women, compared to our gender parity goal by 2025. And, we are
currently 29% women managing directors, compared to our goal of 30% by 2025. We are
also working toward our total workforce 2025 race and ethnicity goals in the U.S., the U.K.,
and South Africa, which we announced in 2020.
In the U.S., African American and Black colleagues represent 12% of our workforce, in
line with our goal. Additionally, Hispanic American and Latinx colleagues represent
11% of our workforce, compared to our goal of 13%.
In the U.K., Black colleagues represent 5% of our workforce compared to our goal of
7%.
2025
•
•
•
In South Africa, African Black colleagues represent 45% of our workforce compared to
our goal of 68%. Coloured colleagues represent 10% of our workforce, in line with our
goal.
We are committed to pay equity and pay equity at Accenture means that our people
receive pay that is fair and consistent when considering similarity of work, location and
tenure at career level. We conduct an annual pay equity review. As of our last review
which reflected annual pay changes effective December 1, 2022, we have dollar-for-
dollar, 100% pay equity for women compared to men in every country where we operate
(certain subsidiaries, including recent acquisitions, and countries with de minimis
headcount were excluded from the analysis). By race and ethnicity, we likewise had
dollar-for-dollar, 100% pay equity in the U.S., the U.K. and South Africa, which are the
locations where we currently have the data available to use for this purpose.
We are now
48%
Women
compared to
our goal of 50% by
We are now
29%
Women
managing
directors
compared to
our goal of 30% by
2025
The Way We Develop and Reward Our People
Our focus is to create talent and unlock the potential of our people, to create strong leaders, and to help them achieve their
professional and personal aspirations, while continuously pivoting to meet new client demands.
During fiscal 2023, we invested $1.1 billion in continuous learning and development. With our digital learning platform, we
delivered approximately 40 million training hours, consistent with fiscal 2022.
We have skills data for our people, enabling us to flexibly respond to shifting client needs while also recommending skill-
specific training based on an individual’s interests. We upskill people at scale, while proactively defining new skills and roles
in anticipation of client needs. We expect to double our Data & AI Practice to 80,000 people through hiring, training and
acquisitions over the next three years.
We are focused on rigorous, job-specific training through key industry certifications and partnerships with leading universities
around the globe. We also train our people on inclusion and mitigating unconscious bias.
We promoted approximately 123,000 people in fiscal 2023, demonstrating our continued commitment to creating vibrant
careers and opportunities for our people.
We balance our supply of skills with changes in client demand. We do this through adjusting levels of new hiring and
managing our attrition (both voluntary and involuntary). We believe people are drawn to our strong purpose, values and
reputation. For fiscal 2023, attrition, excluding involuntary terminations, was 13%, down from 19% in fiscal 2022. For the
fourth quarter of fiscal 2023, annualized attrition, excluding involuntary terminations, was 14%, up from 13% in the third
quarter of fiscal 2023. During the second quarter of fiscal 2023, we initiated actions to streamline operations and transform
our nonbillable corporate functions to reduce costs.
Accenture’s total rewards consist of cash compensation, equity and a wide range of benefits. Our total rewards program is
designed to recognize our people’s skills, contributions and career progression. Base salary, bonus and equity are tailored to
the market where our people work and live. Certain rewards, like equity and bonuses, are opportunities for our people to
share in the overall success of our company. As our people advance in their careers, they have greater opportunities to be
rewarded. Accenture’s equitable rewards go beyond financial rewards and include health and well-being programs that care
for our people.
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The Way We Do Business
At Accenture, our people care deeply about doing the right thing. Together, we have proven that we can succeed—providing
value to our clients and shareholders and opportunities for our people—while being a powerful force for good. Our shared
commitment to operating with the highest ethical standard and making a positive difference in everything we do is what we
believe differentiates Accenture. We believe in transparency, that transparency builds trust, and that we must earn the trust of
our clients, our people, our partners and our communities each and every day.
Our Code of Business Ethics is organized into six fundamental behaviors: Make Your Conduct Count; Comply with Laws;
Deliver for Our Clients; Protect People, Information and Our Business; Run Our Business Responsibly; and Be a Good
Corporate Citizen. It applies to all our people—regardless of their title or location. With our Code of Business Ethics, we want
to help our people make ethical behavior a natural part of what we do every day—with each other, our clients, our partners
and our communities.
Accenture’s commitment to and focus on our people and culture has generated significant recognition, including No. 1 on the
Refinitiv Global Diversity & Inclusion Index for the fourth time in six years; Ethisphere’s World’s Most Ethical Companies for
16 consecutive years; and being ranked No. 17 among 25 companies on World's Best Workplaces™ by Fortune and Great
Place to Work®. Accenture is recognized as a top 10 place to work in eight countries, representing 70% of our people: No. 1
in Argentina, No. 2 in Mexico and the Philippines, No. 5 in Brazil, Indonesia and the U.S., and No. 10 in Chile on the Great
Place to Work® list of Best Workplaces™, and No. 2 on Business Today's Best Companies to Work For in India.
Our Health, Safety and Well-Being
We are committed to creating a place where people can be successful both professionally and personally. We take a holistic
view of well-being—including physical, mental, emotional and financial well-being—providing specially defined programs and
practices to meet our people’s fundamental human needs.
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Environmental Sustainability
We help our clients together with our ecosystem partners, to define, measure and achieve their environmental, social and
governance goals by connecting sustainability with their transformation agendas across their strategy and operations to
make their value chains more sustainable.
We have a strong commitment to environmental sustainability in how we operate our business, and we hold ourselves
accountable to clear and measurable objectives. Our environment goals span three areas: reducing our carbon emissions
including through nature-based carbon removal programs, moving toward zero waste and planning for water risk.
Reducing our Carbon Emissions
The most significant aspects of our environmental footprint are the greenhouse gas emissions related to electricity used in
our locations, as well as business travel and purchased goods and services.
In 2020, we signed the UN Global Compact Business Ambition for 1.5°C Pledge, joining leading companies in pledging to do
our part to keep global warming below 1.5° Celsius, in alignment with the Paris Agreement and the criteria and
recommendations of the Science Based Targets initiative (SBTi).
We are continuing to work toward our goal of net-zero emissions by 2025 by first focusing on reductions across our Scope 1,
2, and 3 emissions and then removing any remaining emissions through nature-based carbon removal projects.
We are also establishing new goals to align with the SBTi’s criteria, guidance and recommendations for setting science-
based net-zero targets. In 2023, we set a new, near-term target aligned to 2030, which was approved by the SBTi.
Carbon Reduction
Our approach to carbon reduction in support of our goals includes:
•
•
•
Renewable electricity. In 2023, we achieved our goal of 100% renewable
electricity in our offices. As we do not own our office buildings and procure most of
our energy from the grid, we increase our renewable electricity by purchasing
renewable electricity contracts equivalent to the amount of electricity we consume.
Going forward, we plan to maintain 100% renewable electricity on an annual basis
through continued purchase of renewable electricity contracts. As we purchase
renewable electricity, we also support the generation of more renewable sources of
electricity.
Achieved
100%
renewable
electricity
by the end of 2023
Enabling low carbon business travel. We continue to use technology to facilitate more cost and carbon-efficient
delivery for our clients and our business and have implemented an internal carbon price on travel to encourage climate
smart travel decisions. In addition, we have developed analytics and reporting focused on our business travel
emissions so that we can share emissions data with our clients as part of our delivery activities.
Engaging our suppliers. We are working with our suppliers to reduce our Scope 3 emissions. Our goal is that 90% of
our key suppliers disclose their environmental targets and the actions being taken to reduce emissions by the end of
2025. Our suppliers are making good progress, with 68% of key suppliers disclosing their targets and 75% disclosing
the actions they are taking as of December 2022. Key suppliers are defined as vendors that represent a significant
portion of our 2019 Scope 3 emissions.
Carbon Removal
•
Nature-based carbon removal. To offset our remaining emissions, we are investing in nature-based carbon removal
solutions to remove carbon from the atmosphere. Our nature-based carbon removal projects will also support and
respect the universal principles of the UNGC in the relevant areas of human rights, labor, environment, anticorruption
and the UN Sustainable Development Goals (SDGs).
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Moving Toward Zero Waste
•
•
Addressing e-waste and office furniture. We have a goal of reusing or recycling 100% of our e-waste, such as
computers and servers, as well as all our office furniture, by the end of 2025. During fiscal 2023, we reused or recycled
nearly 100% of our e-waste relating to computers, servers and uninterruptible power supply devices. We continue to
refine our processes, leverage our asset tracking system and work with vendors to help us extend the life cycle of our
furniture, including through refurbishment and reuse or recycling.
Eliminate single-use plastics in our office locations. During fiscal 2023, we eliminated single-use plastics in our
office locations by purchasing reusable and plastic-free items.
Planning for Water Risk
• Mitigating the potential impacts of climate change-related water risk. Although Accenture is not a water-intensive
company, to safeguard our people and operations we are developing water resiliency action plans to reduce the impact
of climate-related flooding, drought and water scarcity on our business and our people in high-risk areas.
Global Delivery Capability
A key differentiator is our global delivery capability. We have one of the world’s largest networks of centers with deep
capabilities in Strategy & Consulting, Technology, Operations, Industry X and Song, that allows us to help our clients create
exceptional business value. It brings the right people at the right time to our clients from anywhere in the world—both in
physical and virtual working environments—a capability that is particularly crucial as business needs and conditions change
rapidly. Our global approach provides scalable innovation; standardized processes, methods and tools; automation and AI;
industry expertise and specialized capabilities; cost advantages; foreign language fluency; proximity to clients; and time zone
advantages—to deliver high-quality solutions. Emphasizing quality, productivity, reduced risk, speed-to-market and
predictability, our global delivery model supports all parts of our business to provide clients with price-competitive services
and solutions.
Innovation and Intellectual Property
We are committed to developing leading-edge ideas and leveraging emerging technologies and we see innovation as a
source of competitive advantage. We use our investment in R&D—on which we spent $1.3 billion, $1.1 billion and $1.1 billion
in fiscal 2023, 2022 and 2021, respectively—to help clients address new realities in the marketplace and to face the future
with confidence.
Our innovation experts work with clients across the world to imagine their future, build and co-create innovative business
strategies and technology solutions, and then scale those solutions to sustain innovation. We harness our unique intellectual
property to deliver these innovation services.
We have a global portfolio of patents and pending patent applications covering various technology areas, including AI, cloud,
metaverse, cybersecurity, blockchain, automation, extended reality and analytics. We leverage patent, trade secret and
copyright laws as well as contractual arrangements and confidentiality procedures to protect the intellectual property in our
innovative services and solutions. These include our proprietary platforms, software, reusable knowledge capital, and other
innovations. We also have policies to respect the intellectual property rights of third parties, such as our clients, partners,
vendors and others.
We believe our combination of people, assets and capabilities, including our global network of more than 100 innovation
hubs, makes Accenture one of the leading strategic innovation partners for our clients. We have deep expertise in innovation
consulting including strategy, culture change and building new business models through to long-term technology innovation,
which creates the products and markets of the future.
This is all supported by our innovation approach, which includes Accenture Research, Accenture Ventures and Accenture
Labs as well as our Studios, Innovation Centers and Delivery Centers. Our research and thought leadership teams help
identify market, technology and industry trends. Accenture Ventures partners with and invests in growth-stage companies
that create innovative enterprise technologies. Accenture Labs incubate and prototype new concepts through applied
research and development projects. Within this, the Technology Incubation Group incubates and applies emerging
technology innovation to business architectures, including blockchain, metaverse, extended reality and quantum.
To protect Accenture’s brands, we rely on intellectual property laws and trademark registrations held around the world.
Trademarks appearing in this report are the trademarks or registered trademarks of Accenture Global Services Limited,
Accenture Global Solutions Limited, or third parties, as applicable.
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Item 1. Business
13
Competition
Accenture operates in a highly competitive and rapidly changing global marketplace. We compete with a variety of
organizations that offer services and solutions competitive with those we offer—but we believe no other company offers the
full range of services at scale that Accenture does, which uniquely positions us in a highly competitive market. Our clients
typically retain us on a non-exclusive basis.
Our competitors include large multinational IT service providers, including the services arms of large global technology
providers; off-shore IT service providers in lower-cost locations, particularly in India; accounting firms and consultancies that
provide consulting and other IT services and solutions; solution or service providers that compete with us in a specific
geographic market, industry or service area, including advertising agency holding companies, engineering services providers
and technology start-ups; and in-house IT departments of large corporations that use their own resources rather than engage
an outside firm.
We believe Accenture competes successfully in the marketplace because:
• We are focused on creating 360° value, which we
define as delivering the financial business case and
unique value a client may be seeking, and striving to
partner with our clients to achieve greater progress on
inclusion and diversity, reskill and upskill our clients’
employees, help our clients achieve their sustainability
goals, and create meaningful experiences, both with
Accenture and for the customers and employees of our
clients;
• We are a trusted partner with long-term client
relationships and a proven track record for delivering
from strategy to execution, on large, complex programs
at speed that drive outcomes and tangible value;
• We provide a broad range of services bringing
together our capabilities at scale and have a significant
presence in every major geographic market, enabling us
to leverage our global expertise in a local context to
deliver the best solutions, and our managed services
help companies move faster by leveraging our digital
platform and talent and reduce costs;
•
The breadth and scale of our technology
capabilities, combined with our strong relationships
with our technology ecosystem partners, enable us to
help clients transform and re-platform in a sustainable
way at speed;
•
• We have deep industry and cross-industry
expertise, which enable us to accelerate value as
clients transform their products, customer experiences
and optimize their operations;
• We continuously invest in advanced tools, methods
and platforms, and the highly specialized skills of
our people, to create repeatable industry and cross
industry solutions and assets, that can scale at speed,
leveraging our deep experience, knowledge and insights
across industries, functions and services, often with our
ecosystem partners;
•
Our industry-leading innovation approach—including
Accenture Research, Accenture Ventures and Accenture
Labs as well as our Studios, Innovation Centers and
Delivery Centers—reflects our commitment to
continuous innovation and enables us to rapidly identify,
incubate, and scale emerging technology solutions for
our clients;
• We have deep experience in AI, having embedded AI
across our worldwide service delivery approach for more
than a decade, and are making significant investments
in solutions at scale to help our clients responsibly
advance and use AI, and generative AI, to develop new
strategies, operating models, business cases and digital
core architecture, enabling them to achieve greater
growth, efficiency, and resiliency, while accelerating
value; and
Our goal is to recruit the most talented people in our
markets, and we have an unwavering commitment to
inclusion and diversity, which creates an environment
that unleashes innovation, and a world-class learning
organization that helps us continuously invest in the
development of our people, and we believe our strategy
to deliver 360° value makes us an attractive destination
for top talent, a trusted partner to our clients and
ecosystem, and a respected member of our
communities.
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Item 1. Business
14
Information About Our Executive Officers
Our executive officers as of October 12, 2023 are as follows:
Melissa Burgum, 51, became our chief accounting officer in September 2022 and has served as
our corporate controller since September 2021. Prior to that, Ms. Burgum served as our assistant
corporate controller from December 2016 to September 2021 and as controller for Accenture
Federal Services from May 2013 to December 2016. Prior to joining Accenture, Ms. Burgum held
controllership roles at two public companies and was previously an auditor and consultant for Arthur
Andersen. Ms. Burgum has been with Accenture for 10 years.
Leo Framil, 54, became our chief executive officer—Growth Markets in September 2022. From
January 2016 to September 2022, Mr. Framil served as our market unit lead in Latin America. Prior
to January 2016, Mr. Framil led Financial Services in Latin America. Mr. Framil was with Accenture
from March 1992 until March 1997 before rejoining in October 1998.
KC McClure, 58, became our chief financial officer in January 2019. From June 2018 to January
2019, she served as managing director—Finance Operations, where she led our finance operations
across the entirety of our businesses. From December 2016 to May 2018, she served as our finance
director—Communications, Media & Technology. Prior to assuming that role, she served as our
head of investor relations from September 2010 to November 2016, and from March 2002 to August
2010, she served as our finance director—Health & Public Service. Ms. McClure has been with
Accenture for 35 years.
Jean-Marc Ollagnier, 61, became our chief executive officer—Europe in March 2020. From March
2011 to March 2020, Mr. Ollagnier served as our group chief executive—Resources. From
September 2006 to March 2011, Mr. Ollagnier led Resources in Europe, Latin America, the Middle
East and Africa. Previously, he served as our global managing director—Financial Services
Solutions group and as our geographic unit managing director—Gallia. Mr. Ollagnier has been with
Accenture for 37 years.
Manish Sharma, 55, became our chief executive officer—North America in September 2023. Prior
to that, Mr. Sharma served as our chief operating officer from March 2022 to September 2023. From
March 2020 to March 2022, Mr. Sharma served as our group chief executive—Operations. From
September 2016 to March 2020, Mr. Sharma served as the group operating officer for Operations.
From January 2009 to September 2016, Mr. Sharma was our senior managing director for Accenture
Operations Global Delivery and Solution Development and global sales lead for Accenture
Operations Business Process Outsourcing (BPO). Previously, he led our BPO operations in the Asia
Pacific region. Mr. Sharma has been with Accenture for 28 years.
Ellyn J. Shook, 60, became our chief leadership officer in December 2015 and has also served as
our chief human resources officer since March 2014. From 2012 to March 2014, Ms. Shook was our
senior managing director—Human Resources and head of our Human Resources Centers of
Expertise. From 2004 to 2011, she served as the global human resources lead for career
management, performance management, total rewards, employee engagement and mergers and
acquisitions. Ms. Shook has been with Accenture for 35 years. Since January 2022, Ms. Shook has
served as a director of BRP Group, Inc.
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Item 1. Business
15
Julie Sweet, 56, became chair of our Board of Directors in September 2021 and has served as our
chief executive officer since September 2019. From June 2015 to September 2019, she served as
our chief executive officer—North America. From March 2010 to June 2015, she served as our
general counsel, secretary and chief compliance officer. Prior to joining Accenture in 2010, Ms.
Sweet was a partner for 10 years in the law firm Cravath, Swaine & Moore LLP, which she joined as
an associate in 1992. Ms. Sweet has been with Accenture for 13 years and has served as a director
since September 2019.
Joel Unruch, 45, became our general counsel in September 2019 and has served as our corporate
secretary since June 2015. Mr. Unruch also served as our chief compliance officer from September
2019 to January 2020. Mr. Unruch joined Accenture in 2011 as our assistant general counsel and
assistant secretary and also oversaw ventures & acquisitions and alliances & ecosystems practices
for our legal group. Prior to joining Accenture, Mr. Unruch was corporate counsel at Amazon.com
and previously an associate in the corporate department of the law firm Cravath, Swaine & Moore
LLP. Mr. Unruch has been with Accenture for 12 years.
John Walsh, 59, became our chief operating officer in September 2023. From March 2020 to
September 2023, Mr. Walsh served as our chief strategic accounts and global sales officer. From
November 2019 to March 2020, he served as our group chief executive—Communications, Media &
Technology. He served as senior managing director—Communications, Media & Technology in
North America, from 2013 to 2019. Mr. Walsh has been with Accenture for 37 years.
Organizational Structure
Accenture plc was incorporated in Ireland on June 10, 2009 as a public limited company. We operate our business through
subsidiaries of Accenture plc.
The Consolidated Financial Statements reflect the ownership interests in Accenture Canada Holdings Inc. held by certain
current and former members of Accenture Leadership as noncontrolling interests. The noncontrolling ownership interests
were less than 1% as of August 31, 2023. “Accenture Leadership” is comprised of members of our global management
committee (our primary management and leadership team, which consists of approximately 50 of our most senior leaders),
senior managing directors and managing directors.
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Item 1A. Risk Factors
16
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully
consider the following factors which could materially adversely affect our business,
financial condition, results of operations (including revenues and profitability) and/or
stock price. Our business is also subject to general risks and uncertainties that may
broadly affect companies, including us. Additional risks and uncertainties not
currently known to us or that we currently deem to be immaterial also could materially
adversely affect our business, financial condition, results of operations and/or stock
price. Risks in this section are grouped in the following categories: (1) Business Risks;
(2) Financial Risks; (3) Operational Risks; and (4) Legal and Regulatory Risks. Many
risks affect more than one category, and the risks are not in order of significance or
probability of occurrence because they have been grouped by categories.
Business Risks
Our results of operations have been, and may in the future be, adversely affected by volatile,
negative or uncertain economic and political conditions and the effects of these conditions on
our clients’ businesses and levels of business activity.
Global macroeconomic and geopolitical conditions affect us, our clients’ businesses and the markets they serve. Volatile,
negative and uncertain economic and political conditions have in the past undermined and could in the future undermine
business confidence in our significant markets and other markets, which are increasingly interdependent, causing our clients
to reduce or defer their spending on new initiatives and technologies, and resulting in clients reducing, delaying or eliminating
spending under existing contracts with us, which negatively affects our business. Growth in some of the markets we serve
has slowed and could continue to slow, or could slow in other markets or stagnate or contract, in each case, for an extended
period of time. Because we operate globally and have significant businesses in many markets, an economic slowdown in any
of those markets could adversely affect our results of operations.
Ongoing economic and political volatility and uncertainty and changing demand patterns affect our business in a number of
other ways, including making it more difficult to accurately forecast client demand and effectively build our revenue and
resource plans, particularly in consulting. Economic and political volatility and uncertainty is particularly challenging because
it may take some time for the effects and changes in demand patterns resulting from these and other factors to manifest
themselves in our business and results of operations. Changing demand patterns from economic and political volatility and
uncertainty, including as a result of increasing geopolitical tensions, inflation, economic downturns, changes in global trade
policies, global health emergencies and their impact on us, our clients and the industries we serve, have in the past had a
negative impact and could in the future have a significant negative impact on our results of operations.
Our business depends on generating and maintaining client demand for our services and
solutions, including through the adaptation and expansion of our services and solutions in
response to ongoing changes in technology and offerings, and a significant reduction in such
demand or an inability to respond to the evolving technological environment could materially
affect our results of operations.
Our financial results depend in part on the demand for our services and solutions, which could be negatively affected by
numerous factors, many of which are beyond our control and unrelated to our work product. As described above, volatile,
negative or uncertain global economic and political conditions and lower growth or contraction in the markets we serve have
adversely affected and could in the future adversely affect client demand for our services and solutions. Our success
depends, in part, on our ability to continue to develop and implement services and solutions that anticipate and respond to
rapid and continuing changes in technology and offerings to serve the evolving needs of our clients. Examples of areas of
significant change include digital-, cloud- and security-related offerings, which are continually evolving, as well as
developments in areas such as AI, including generative AI, augmented and virtual reality, automation, blockchain, Internet of
Things, quantum and edge computing, infrastructure and network engineering, intelligent connected products, digital
engineering and manufacturing, and robotics solutions. As we expand our services and solutions into these new areas, we
may be exposed to operational, legal, regulatory, ethical, technological and other risks specific to such new areas, which may
negatively affect our reputation and demand for our services and solutions.
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17
Technological developments may materially affect the cost and use of technology by our clients and, in the case of cloud,
data and AI solutions, could affect the nature of how we generate revenue. Some of these technological developments have
reduced and replaced some of our historical services and solutions and will continue to do so in the future. This has caused,
and may in the future cause, clients to delay spending under existing contracts and engagements and to delay entering into
new contracts while they evaluate new technologies. Such technological developments and spending delays can negatively
impact our results of operations if we are unable to introduce new pricing or commercial models that reflect the value of these
technological developments or if the pace and level of spending on new technologies are not sufficient to make up any
shortfall.
Developments in the industries we serve, which may be rapid, also could shift demand to new services and solutions. If, as a
result of new technologies or changes in the industries we serve, our clients demand new services and solutions, we may be
less competitive in these new areas or need to make significant investment to meet that demand. Our growth strategy
focuses on responding to these types of developments by driving innovation that will enable us to expand our business into
new growth areas. If we do not sufficiently invest in new technology and adapt to industry developments, or evolve and
expand our business at sufficient speed and scale, or if we do not make the right strategic investments to respond to these
developments and successfully drive innovation, our services and solutions, our results of operations, and our ability to
develop and maintain a competitive advantage and to execute on our growth strategy could be adversely affected. For
example, if we fail to continue to develop leading AI services and solutions, including generative AI, we may lose our
leadership position in this area. We are applying AI to our services, to how we deliver work to our clients, and to our own
internal operations. AI technologies are complex and rapidly evolving, and we face significant competition, including from our
own clients, who may develop their own internal AI-related capabilities, which in each case, can lead to reduced demand for
our services or solutions. As these technologies evolve, some services and tasks currently performed by our people will be
replaced by automation. In addition, there are significant risks and uncertainties involved in developing and deploying AI,
which may expose us to legal, reputational and financial harm.
In a particular geographic market, service or industry group, a small number of clients have contributed, or may, in the future
contribute, a significant portion of the revenues of such geographic market, service or industry group, and any decision by
such a client to delay, reduce, or eliminate spending on our services and solutions could have a disproportionate impact on
the results of operations in the relevant geographic market, service or industry group. For example, we are experiencing
reduced demand particularly in our Communications, Media & Technology industry group.
Many of our consulting contracts are less than 12 months in duration, and these contracts typically permit a client to
terminate the agreement with as little as 30 days’ notice. Longer-term, larger and more complex contracts, such as the
majority of our managed services contracts, generally require a longer notice period for termination and often include an
early termination charge to be paid to us, but this charge might not be sufficient to cover our costs or make up for anticipated
ongoing revenues and profits lost upon termination of the contract. Many of our contracts allow clients to terminate, delay,
reduce or eliminate spending on the services and solutions we provide. Additionally, a client could choose not to retain us for
additional stages of a project, try to renegotiate the terms of its contract or cancel or delay additional planned work. When
contracts are terminated or not renewed, we lose the anticipated revenues, and it may take significant time to replace the
level of revenues lost. Consequently, our results of operations in subsequent periods could be materially lower than
expected. The specific business or financial condition of a client, changes in management and changes in a client’s strategy
are also all factors that can result in terminations, cancellations or delays.
If we are unable to match people and their skills with client demand around the world and
attract and retain professionals with strong leadership skills, our business, the utilization rate
of our professionals and our results of operations may be materially adversely affected.
Our success is dependent, in large part, on our ability to keep our people with market-leading skills and capabilities in
balance with client demand around the world and our ability to attract and retain people with the knowledge and skills to lead
our business globally. We must hire or reskill, retain and inspire appropriate numbers of talented people with diverse skills in
order to serve clients across the globe, respond quickly to rapid and ongoing changes in demand, technology, industry and
the macroeconomic environment, and continuously innovate to grow our business. For example, if we are unable to hire or
retrain our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we
may not be able to innovate and deliver new services and solutions to fulfill client demand. There is competition for scarce
talent with market-leading skills and capabilities in new technologies, and our people have been directly targeted because of
their highly sought-after skills and this will likely continue.
There is a risk that at certain points in time, we may have more people than we need in certain skill sets or geographies or at
compensation levels that are not aligned with skill sets. In these situations, we have engaged, and may in the future engage,
in actions to rebalance our workforce, including reducing the rate of new hires and increasing involuntary terminations as a
means to keep our supply of people and skills in balance with client demand, such as the business optimization actions
initiated in the second quarter of fiscal 2023. In some countries we are required by local law to consult with employee
representative bodies such as works councils, which may constrain our operational flexibility and efficiency in balancing our
workforce with client demand and make us less competitive. In addition, while an immaterial percentage of our global
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18
workforce is currently unionized, the unionization of significant employee populations could result in higher costs and other
operational impediments.
At certain times and in certain geographical regions, we will find it difficult to hire and retain a sufficient number of employees
with the skills or backgrounds to meet current and/or future demand. In these cases, we might need to redeploy existing
people or increase our reliance on subcontractors to fill certain labor needs. If we are not successful in these initiatives, our
results of operations could be adversely affected.
If our utilization rate is too high or too low, it could have an adverse effect on employee engagement and attrition, the quality
of the work performed as well as our ability to staff projects.
We are particularly dependent on retaining members of Accenture Leadership with critical capabilities. If we are unable to do
so, our ability to innovate, generate new business opportunities and effectively lead large and complex transformations and
client relationships could be jeopardized. We depend on identifying, developing and retaining top talent to innovate and lead
our businesses. This includes developing talent and leadership capabilities in markets where the depth of skilled employees
may be limited. Our ability to expand in our key markets depends, in large part, on our ability to attract, develop, retain and
integrate both leaders for the local business and people with critical capabilities.
Our equity-based incentive compensation plans and other variable cash compensation programs, as well as promotions, are
designed to reward high-performing individuals for their contributions and provide incentives for them to remain with us. If the
anticipated value of such incentives or the pace of promotions does not materialize because of company performance or
volatility or lack of positive performance in our stock price, or if our total compensation package is not viewed as being
competitive, our ability to attract and retain the people we need could be adversely affected. In addition, if we do not obtain
the shareholder approval needed to continue granting equity awards under our share plans in the amounts we believe are
necessary, our ability to attract and retain people could be negatively affected.
We face legal, reputational and financial risks from any failure to protect client and/or
Accenture data from security incidents or cyberattacks.
We are dependent on information technology networks and systems to securely process, transmit and store electronic
information and to communicate among our locations around the world and with our people, clients, ecosystem partners and
vendors. As the breadth and complexity of this infrastructure continues to grow, including as a result of the increasing
reliance on, and use of, mobile technologies, social media and cloud-based services, as more of our employees continue to
work remotely, and as cyberattacks become increasingly sophisticated (e.g. deepfakes and AI generated social engineering),
the risk of security incidents and cyberattacks has increased. Such incidents could lead to shutdowns or disruptions of or
damage to our systems and those of our clients, ecosystem partners and vendors, and unauthorized disclosure of sensitive
or confidential information, including personal data and proprietary business information. In the past, we have experienced,
and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our
service providers’ systems and unauthorized acquisition of our data and our clients’ data including: inadvertent disclosure,
misconfiguration of systems, phishing ransomware or malware attacks. In addition, our clients have experienced, and may in
the future experience, breaches of systems and cloud-based services enabled, managed or provided by us. To date these
incidents have not had a material impact on our or our clients’ operations; however, there is no assurance that such impacts
will not be material in the future, and such incidents have in the past and may in the future have the impacts discussed
below.
In providing services and solutions to clients, we often manage, utilize and store sensitive or confidential client, Accenture or
other third-party data, including personal data and proprietary information, and we expect these activities to increase,
including through the use of AI, the Internet of Things and analytics. Unauthorized disclosure or use of, denial of access to, or
other incidents involving sensitive or confidential client, vendor, ecosystem partner or Accenture data, whether through
systems failure, employee negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other
intentional or unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our
or our clients’ business, cause us to lose clients and result in significant financial exposure and legal liability. Similarly,
unauthorized access to or through, denial of access to, or other incidents involving, our software and IT supply chain or
software-as-a-service providers, our or our service providers’ information systems or those we develop for our clients,
whether by our employees or third parties, including a cyberattack by computer programmers, hackers, members of
organized crime and/or state-sponsored organizations, who continuously develop and deploy viruses, ransomware, malware
or other malicious software programs or social engineering attacks, has and could in the future result in negative publicity,
significant remediation costs, legal liability, damage to our reputation and government sanctions and could have a material
adverse effect on our results of operations — see risk factor below entitled “Our business could be materially adversely
affected if we incur legal liability.” Cybersecurity threats are constantly expanding and evolving, becoming increasingly
sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective
security measures and protocols.
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We are subject to numerous laws and regulations designed to protect this information, including privacy and cybersecurity
laws such as the European Union’s General Data Protection Regulation (“GDPR”), the United Kingdom’s GDPR, U.S. states’
recent comprehensive privacy legislation, as well as various other U.S. federal and state laws governing the protection of
privacy, health or other personally identifiable information and data privacy and cybersecurity laws in other regions. These
laws and regulations continue to evolve, are increasing in complexity and number and increasingly conflict among the
various countries in which we operate, which has resulted in greater compliance risk and cost for us. Various privacy laws
impose compliance obligations regarding the handling of personal data, including localization of data and the cross-border
transfer of data, and significant financial penalties for noncompliance. For example, failure to comply with the GDPR may
lead to regulatory enforcement actions, which can result in monetary penalties of up to 4% of worldwide revenue, orders to
discontinue certain data processing operations, civil lawsuits, or reputational damage. If any person, including any of our
employees, negligently disregards or intentionally breaches our established controls with respect to client, third-party or
Accenture data, or otherwise mismanages or misappropriates that data, we could be subject to significant litigation, monetary
damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions. These monetary
damages might not be subject to a contractual limit of liability or an exclusion of consequential or indirect damages and could
be significant. In addition, our liability insurance, which includes cyber insurance, might not be sufficient in type or amount to
cover us against claims related to security incidents, cyberattacks and other related incidents.
The markets in which we operate are highly competitive, and we might not be able to compete
effectively.
The markets in which we offer our services and solutions are highly competitive. Our competitors include:
•
•
•
•
•
large multinational IT service providers, including the services arms of large global technology providers;
off-shore IT service providers in lower-cost locations, particularly in India;
accounting firms and consultancies that provide consulting and other IT services and solutions;
solution or service providers that compete with us in a specific geographic market, industry or service area, including
advertising agency holding companies, engineering services providers and technology start-ups and other companies
that can scale rapidly to focus on or disrupt certain markets and provide new or alternative products, services or delivery
models; and
in-house IT departments of large corporations that use their own resources, rather than engage an outside firm.
Some competitors may have greater financial, marketing or other resources than we do and, therefore, may be better able to
compete for new work and skilled professionals, may be able to innovate and provide new services and solutions faster than
we can or may be able to anticipate the need for services and solutions before we do. Our competitors may also team
together to create competing offerings.
Even if we have potential offerings that address marketplace or client needs, competitors may be more successful at selling
similar services they offer, including to companies that are our clients. Some competitors are more established in certain
markets, and may make executing our growth strategy to expand in these markets more challenging. Additionally,
competitors may also offer more aggressive pricing or contractual terms, which may affect our ability to win work. Our future
performance is largely dependent on our ability to compete successfully and expand in the markets we currently serve. If we
are unable to compete successfully, we could lose market share and clients to competitors, which could materially adversely
affect our results of operations.
In addition, we may face greater competition due to consolidation of companies in the technology sector through strategic
mergers, acquisitions or teaming arrangements. Consolidation activity may result in new competitors with greater scale, a
broader footprint or offerings that are more attractive than ours. New services or technologies offered by competitors,
ecosystem partners or new entrants may make our offerings less differentiated or less competitive when compared to other
alternatives, which may adversely affect our results of operations. The technology companies described above, including
many of our ecosystem partners, are increasingly able to offer services related to their software, platform, cloud migration
and other solutions, or are developing software, platform, cloud migration and other solutions that require integration services
to a lesser extent or replace them in their entirety. These more integrated services and solutions may represent more
attractive alternatives to clients than some of our services and solutions, which may materially adversely affect our
competitive position and our results of operations.
Our ability to attract and retain business and employees may depend on our reputation in the
marketplace.
We believe the Accenture brand name and our reputation are important corporate assets that help distinguish our services
and solutions from those of competitors and also contribute to our efforts to recruit and retain talented employees. However,
our corporate reputation is susceptible to material damage by events such as disputes with clients or competitors,
cybersecurity incidents or service outages, internal control deficiencies, delivery or solution failures, compliance violations,
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government investigations or legal proceedings. We may also experience reputational damage from employees, advocacy
groups, regulators, investors and other stakeholders that disagree with the services and solutions that we offer, the clients or
markets that we serve, or the ways in which we operate our business. Similarly, our reputation could be damaged by actions
or statements of current or former clients, directors, employees, competitors, vendors, ecosystem partners, joint venture
partners, adversaries in legal proceedings, legislators or government regulators, as well as members of the investment
community or the media, including social media influencers and advocacy groups.
There is a risk that negative or inaccurate information about Accenture, even if based on rumor or misunderstanding, could
adversely affect our business. Damage to our reputation could be difficult, expensive and time-consuming to repair, could
make potential or existing clients reluctant to select us for new engagements or could negatively impact our relationships with
ecosystem partners, resulting in a loss of business, and could adversely affect our recruitment and retention efforts. Damage
to our reputation could also reduce the value and effectiveness of the Accenture brand name and could reduce investor
confidence in us, materially adversely affecting our share price.
Our brand and reputation are also associated with our public commitments to various corporate environmental, social and
governance (ESG) initiatives, including our goals relating to sustainability and inclusion and diversity. Our disclosures on
these matters and any failure or perceived failure to achieve or accurately report on our commitments, could harm our
reputation and adversely affect our client relationships or our recruitment and retention efforts, as well as expose us to
potential legal liability. In addition, positions we take or do not take on social issues may be unpopular with some of our
employees, our clients or potential clients, legislators or government regulators, as well as members of the investment
community or the media, or advocacy groups, which may impact our ability to attract or retain employees or the demand for
our services. We also may choose not to conduct business with potential clients or discontinue or not expand business with
existing clients due to these positions.
If we do not successfully manage and develop our relationships with key ecosystem partners
or if we fail to anticipate and establish new alliances in new technologies, our results of
operations could be adversely affected.
We have alliances with companies whose capabilities complement our own. A very significant portion of our revenue and
services and solutions are based on technology or software provided by a few major ecosystem partners. See “Business—
Services.”
The business that we conduct through these alliances could decrease or fail to grow for a variety of reasons. The priorities
and objectives of our ecosystem partners may differ from ours. They offer services and solutions that compete with some of
our services and solutions. They may also form closer or preferred arrangements with our competitors.
Some of our ecosystem partners are also large clients or suppliers of technology to us. The decisions we make vis-à-vis an
ecosystem partner may impact our ongoing alliance relationships with other members of our ecosystem.
Our ecosystem partners may at times be impacted by global events, the changing macroeconomic environment and supply
chain disruptions, as well as rapid increases in demand for their products and services, any of which may impact their ability
to provide their products and services within our expected timeframes or at anticipated prices. In addition, our ecosystem
partners may also experience reduced demand for their technology or software, including, for example, in response to
changes in technology, which could lessen related demand for our services and solutions.
We must anticipate and respond to continuous changes in technology and develop alliance relationships with new providers
of relevant technology and services. We must secure meaningful alliances with these providers early in their life cycle so that
we can develop the right number of certified people with skills in new technologies. If we are unable to maintain our
relationships with current partners and identify new and emerging providers of relevant technology to expand our network of
ecosystem partners, we may not be able to differentiate our services or compete effectively in the market.
If we do not obtain the expected benefits from our alliance relationships for any reason, we may be less competitive, our
ability to offer attractive solutions to our clients may be negatively affected, and our results of operations could be adversely
affected.
Financial Risks
Our profitability could materially suffer if we are unable to obtain favorable pricing for our
services and solutions, if we are unable to remain competitive, if our cost-management
strategies are unsuccessful or if we experience delivery inefficiencies or fail to satisfy certain
agreed-upon targets or specific service levels.
Our profitability is highly dependent on a variety of factors and could be materially impacted by any of the following:
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Our results of operations could materially suffer if we are not able to obtain sufficient pricing to meet our
profitability expectations. If we are not able to obtain favorable pricing for our services and solutions, our revenues and
profitability could materially suffer. The rates we are able to charge for our services and solutions are affected by a number of
factors, including:
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general economic and political conditions;
our clients’ desire to reduce their costs;
the competitive environment in our industry;
our ability to accurately estimate our service delivery costs, upon which our pricing is sometimes determined, including
our ability to estimate the impact of inflation and foreign exchange on our service delivery costs over long-term
contracts; and
the procurement practices of clients and their use of third-party advisors.
Our profitability could suffer if we are not able to remain competitive. The competitive environment in our industry
affects our ability to secure new contracts at our target economics in a number of ways, any of which could have a material
negative impact on our results of operations. The less we are able to differentiate our services and solutions and/or clearly
convey the value of our services and solutions, the more risk we have in winning new work in sufficient volumes and at our
target pricing and overall economics. In addition, the introduction of new technologies (such as generative AI), services or
products by competitors could reduce our ability to obtain favorable pricing and impact our overall economics for the services
or solutions we offer. Competitors may be willing, at times, to take on more risk or price contracts lower than us in an effort to
enter the market or increase market share.
Our profitability could suffer if our cost-management strategies are unsuccessful, and we may not be able to
improve our profitability. Our ability to improve or maintain our profitability is dependent on our being able to successfully
manage our costs, including taking actions to reduce certain costs. Our cost management strategies include maintaining
appropriate alignment between the demand for our services and solutions and the workforce needed to deliver them. If we
are not effective in managing our operating costs in response to changes in demand or pricing, or if we are unable to cost-
effectively hire and retain people with the knowledge and skills necessary to deliver our services and solutions, particularly in
areas of new technologies and offerings and in the right geographic locations, we may incur increased costs, which could
reduce our ability to continue to invest in our business in an amount necessary to achieve our planned rates of growth and
our desired levels of profitability. The timing and amount of costs related to our business optimization actions initiated in the
second quarter of fiscal 2023 and the nature and extent of benefits realized from such actions are subject to uncertainties
and other factors, including local country consultation processes and regulations, and may differ from our current
expectations and estimates.
If we do not accurately anticipate the cost, risk and complexity of performing our work or if third parties upon whom
we rely do not meet their commitments, then our contracts could have delivery inefficiencies and be less profitable
than expected or unprofitable. Our contract profitability is highly dependent on our forecasts regarding the effort and cost
necessary to deliver our services and solutions, which are based on available data and could turn out to be materially
inaccurate. If we do not accurately estimate the effort, costs or timing for meeting our contractual commitments and/or
completing engagements to a client’s satisfaction, our contracts could yield lower profit margins than planned or be
unprofitable.
Moreover, many of our contracts include clauses that tie our ultimate compensation to the achievement of agreed-upon
performance standards or milestones. If we fail to satisfy these measures, it could significantly reduce or eliminate our fees
under the contracts, increase the cost to us of meeting performance standards or milestones, delay expected payments or
subject us to potential damage claims under the contract terms, any of which could significantly affect our profitability. We
also have a number of contracts in which a portion of our compensation depends on performance measures such as cost-
savings, revenue enhancement, benefits produced, business goals attained and adherence to schedule. These goals can be
complex and may depend on our clients’ actual levels of business activity or may be based on assumptions that are later
determined not to be achievable or accurate and could negatively impact our profit margins if not achieved. Similarly, if we
experience unanticipated delivery difficulties due to our management, the failure of third parties or our clients to meet their
commitments, or for any other reason, our contracts could yield lower profit margins than planned or be unprofitable.
We are increasingly entering into contracts for large, complex client engagements to transform our clients’ businesses. These
deals may involve transforming a client’s business, transitioning it to the cloud and updating their technology, while operating
portions of their business, all in a compressed timeframe. The scale and complexity of these compressed transformational
projects present risks in execution. In particular, large and complex arrangements often require that we utilize subcontractors
or that our services and solutions incorporate or coordinate with the software, systems or infrastructure requirements of other
vendors and service providers, including companies with which we have alliances. Our profitability depends on the ability of
these subcontractors, vendors and service providers to deliver their products and services in a timely manner, at the
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anticipated cost, and in accordance with the project requirements, as well as on our effective oversight of their performance.
In some cases, these subcontractors are small firms, and they might not have the resources or experience to successfully
integrate their services or products with large-scale engagements or enterprises. Some of this work involves new
technologies, which may not work as intended or may take more effort to implement than initially predicted. In addition,
certain client work requires the use of unique and complex structures and alliances, some of which require us to assume
responsibility for the performance of third parties whom we do not control. Any of these factors could adversely affect our
ability to perform and subject us to additional liabilities, which could have a material adverse effect on our relationships with
clients and on our results of operations.
Changes in our level of taxes, as well as audits, investigations and tax proceedings, or
changes in tax laws or in their interpretation or enforcement, could have a material adverse
effect on our effective tax rate, results of operations, cash flows and financial condition.
We are subject to taxes in numerous jurisdictions. We calculate and provide for taxes in each tax jurisdiction in which we
operate. Tax accounting often involves complex matters and requires our judgment to determine our worldwide provision for
income taxes and other tax liabilities. We are subject to ongoing audits, investigations and tax proceedings in various
jurisdictions. Tax authorities have disagreed, and may in the future disagree, with our judgments, and are taking increasingly
aggressive positions opposing the judgments we make, including with respect to our intercompany transactions. We regularly
assess the likely outcomes of our audits, investigations and tax proceedings to determine the appropriateness of our tax
liabilities. However, our judgments might not be sustained as a result of these audits, investigations and tax proceedings, and
the amounts ultimately paid could be materially different from the amounts previously recorded.
In addition, our effective tax rate in the future could be adversely affected by challenges to our intercompany transactions,
changes in the valuation of deferred tax assets and liabilities, changes in tax laws or in their interpretation or enforcement,
changes in the mix of earnings in countries with differing statutory tax rates and changes in accounting principles, including
the U.S. generally accepted accounting principles. Tax rates and policies in the jurisdictions in which we operate may change
materially as a result of shifting economic, social and political conditions. In addition, changes in tax laws, treaties or
regulations, or their interpretation or enforcement, have become more unpredictable and may become more stringent, which
could materially adversely affect our tax position. A number of countries where we do business, including the United States
and many countries in the European Union, have implemented, and are considering implementing, changes in relevant tax,
accounting and other laws, regulations and interpretations. There remains significant uncertainty around whether these
changes will ultimately be implemented and, if implemented, the extent of their impact.
The overall tax environment remains highly uncertain and increasingly complex. The European Commission has been
conducting investigations, focusing on whether local country tax rulings or tax legislation provides preferential tax treatment
that violates European Union state aid rules. In the U.S., various proposals to raise corporate income taxes are periodically
considered. Individual countries across the globe and the European Union have either enacted or plan to enact digital taxes
to impose incremental taxes on companies based on where ultimate users are located. The Organization for Economic Co-
operation and Development (“OECD”), a global coalition of member countries, further developed a two-pillar plan to reform
international taxation. The plan aims to prevent the proliferation of separate new digital taxes and to ensure a fairer
distribution of profits among countries by creating a new global system to tax income based on the location of users, and to
impose a floor on tax competition through the introduction of a global minimum tax. European Union member states have
agreed to implement the OECD’s global corporate minimum tax rate of 15%. Other countries are also actively considering
changes to their tax laws to adopt certain parts of the OECD’s two-pillar framework. The increased focus of the European
Commission and various jurisdictions on investigations and enacting new tax laws could have a material adverse effect on
our effective tax rate, results of operations, cash flows and financial condition.
Although we expect to be able to rely on the tax treaty between the United States and Ireland, legislative or diplomatic action
could be taken, or the treaty may be amended in such a way, that would prevent us from being able to rely on such treaty.
Our inability to rely on the treaty would subject us to increased taxation or significant additional expense. In addition, we
could be materially adversely affected by changes in the laws (or in their interpretation or enforcement) around the definition
of a U.S. person for U.S. federal income tax purposes and by changes in tax law or policy (or in their interpretation or
enforcement) in Ireland or other jurisdictions where we operate, including their treaties with Ireland or the United States.
Our results of operations could be materially adversely affected by fluctuations in foreign
currency exchange rates.
Although we report our results of operations in U.S. dollars, a majority of our revenues is denominated in currencies other
than the U.S. dollar. Unfavorable fluctuations in foreign currency exchange rates have had an adverse effect, and could in
the future have a material adverse effect, on our results of operations.
Because our consolidated financial statements are presented in U.S. dollars, we must translate revenues, expenses and
income, as well as assets and liabilities, into U.S. dollars at exchange rates in effect during or at the end of each reporting
period. Therefore, changes in the value of the U.S. dollar against other currencies will affect our revenues, operating income
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and the value of balance-sheet items, including intercompany payables and receivables, originally denominated in other
currencies. These changes cause our growth stated in U.S. dollars to be higher or lower than our growth in local currency
when compared against other periods. Our currency hedging programs, which are designed to partially offset the impact on
consolidated earnings related to the changes in value of certain balance sheet items, might not be successful. Additionally,
some transactions and balances may be denominated in currencies for which there is no available market to hedge.
As we continue to leverage our global delivery model, more of our expenses are incurred in currencies other than those in
which we bill for the related services. An increase in the value of certain currencies, such as the Indian rupee or Philippine
peso, against the currencies in which our revenue is recorded could increase costs for delivery of services at off-shore sites
by increasing labor and other costs that are denominated in local currency. Our contractual provisions or cost management
efforts might not be able to offset their impact, and our currency hedging activities, which are designed to partially offset this
impact, might not be successful. This could result in a decrease in the profitability of our contracts that are utilizing delivery
center resources. In addition, our currency hedging activities are themselves subject to risk. These include risks related to
counterparty performance under hedging contracts, risks related to ineffective hedges and risks related to currency
fluctuations. We also face risks that extreme economic conditions, political instability, or hostilities or disasters of the type
described below could impact or perhaps eliminate the underlying exposures that we are hedging. Such an event could lead
to losses being recognized on the currency hedges then in place that are not offset by anticipated changes in the underlying
hedged exposure.
Changes to accounting standards or in the estimates and assumptions we make in connection
with the preparation of our consolidated financial statements could adversely affect our
financial results.
Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles. It is possible
that changes in accounting standards could have a material adverse effect on our results of operations and financial position.
The application of generally accepted accounting principles requires us to make estimates and assumptions about certain
items and future events that affect our reported financial condition, and our accompanying disclosure with respect to, among
other things, revenue recognition and income taxes. Our most critical accounting estimates are described in Management’s
Discussion and Analysis of Financial Condition and Results of Operations under “Critical Accounting Policies and Estimates.”
We base our estimates on historical experience, contractual commitments and various other assumptions that we believe to
be reasonable under the circumstances and at the time they are made. These estimates and assumptions involve the use of
judgment and are subject to significant uncertainties, some of which are beyond our control. If our estimates, or the
assumptions underlying such estimates, are not correct, actual results may differ materially from our estimates, and we may
need to, among other things, adjust revenues or accrue additional costs that could adversely affect our results of operations.
Operational Risks
As a result of our geographically diverse operations and our strategy to continue to grow in
our key markets around the world, we are more susceptible to certain risks.
We have offices and operations in more than 200 cities in 49 countries around the world. One aspect of our strategy is to
continue to grow in our key markets around the world. Our strategy might not be successful. If we are unable to manage the
risks of our global operations and strategy, our results of operations and ability to grow could be materially adversely
affected.
Health emergencies or pandemics, including COVID-19; acts of terrorist violence; political, social and civil unrest; regional
and international war and other hostilities and international responses to these wars and hostilities; natural disasters,
volcanic eruptions, sea level rise, floods, droughts and water scarcity, heat waves, wildfires and storms, occurrences of which
may increase in frequency and severity as a result of climate change; or the threat of or perceived potential for these events;
and other acts of god have had and could in the future have significantly negative impacts on us. These events could
adversely affect our clients’ levels of business activity and precipitate sudden and significant changes in regional and global
economic conditions and cycles. These events also pose significant risks to our people and to physical facilities and
operations around the world, whether the facilities are ours or those of our ecosystem partners, suppliers or clients. By
disrupting communications and travel and increasing the difficulty of obtaining and retaining highly skilled and qualified
people, these types of events impact our ability to deliver our services and solutions to our clients. Extended disruptions of
electricity, other public utilities or network or cloud services at our facilities or in the areas where our people are working
remotely, as well as physical infrastructure damage to, system failures at, cyberattacks on, or security incidents involving, our
facilities or systems, or those of our ecosystem partners, suppliers or clients, could also adversely affect our ability to conduct
our business and serve our clients. If any of these circumstances occurs, we have a greater risk that interruptions in
communications with our clients and other Accenture locations and people, and any down-time in important processes we
operate for clients, could result in a material adverse effect on our results of operations and our reputation in the
marketplace.
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Our business model is dependent on our global delivery capability. While our delivery centers are located throughout the
world, we have based large portions of our delivery capability in India and the Philippines, where we have the largest and
second largest number of our people located, respectively. In addition, certain of our clients and markets are primarily
supported by individual delivery centers. Concentrating our delivery capability in these locations presents a number of
operational risks, including those discussed in this risk factor, many of which are beyond our control and which have been
and may in the future be exacerbated by increasing geopolitical tensions. While these events have not materially impacted
our ability to deliver services to our clients, international conflicts are unpredictable and we might not be as successful in
mitigating these operational risks in the future.
We are unable to protect our people, facilities and systems, and those of our ecosystem partners, suppliers and clients,
against all such events. Our business continuity and disaster recovery plans may not be effective, particularly if catastrophic
events occur where large numbers of our people are located, or simultaneously affect our people in multiple locations around
the world. We generally do not have insurance for losses and interruptions caused by terrorist attacks, conflicts and wars. If
these disruptions prevent us from effectively serving our clients, our results of operations could be significantly adversely
affected.
If we are unable to manage the organizational challenges associated with our size, we might be
unable to achieve our business objectives.
As of August 31, 2023, we had approximately 733,000 employees worldwide. Our size and scale present significant
management and organizational challenges. As our organization grows and evolves, it might become increasingly difficult to
maintain effective standards across a large enterprise and effectively institutionalize our knowledge or to effectively change
the strategy, operations or culture of our Company in a timely manner. It might also become more difficult to maintain our
culture, effectively manage and monitor our people and operations, effectively communicate our core values, policies and
procedures, strategies and goals, and motivate, engage and retain our people, particularly given our world-wide operations,
rate of new hires, and the significant percentage of our employees who have the option to work remotely. The size and scope
of our operations increase the possibility that we will have employees who engage in unlawful or fraudulent activity, or
otherwise expose us to unacceptable business risks, despite our efforts to train them and maintain internal controls to
prevent such instances. For example, employee misconduct could involve the improper use of sensitive or confidential
information entrusted to us, or obtained inappropriately, or the failure to comply with legislation or regulations regarding the
protection of sensitive or confidential information, including personal data and proprietary information. Furthermore, the
inappropriate use of social networking sites and unapproved technologies, such as public-facing, free generative AI tools, by
our employees could result in breaches of confidentiality, unauthorized disclosure of non-public company information or
damage to our reputation. If we do not continue to develop and implement the right processes and tools to manage our
enterprise and instill our culture and core values into all of our employees, our ability to compete successfully and achieve
our business objectives could be impaired. In addition, from time to time, we have made, and may continue to make,
changes to our operating model, including how we are organized, as the needs and size of our business change, and if we
do not successfully implement the changes, our business and results of operation may be negatively impacted.
We might not be successful at acquiring, investing in or integrating businesses, entering into
joint ventures or divesting businesses.
We expect to continue pursuing strategic acquisitions, investments and joint ventures to enhance or add to our skills and
capabilities or offerings of services and solutions, or to enable us to expand in certain geographic and other markets. We
have increased and may again in the future increase the amount of capital invested in such opportunities. These acquisitions
and other transactions and investments involve challenges and risks, such as that we may not succeed in completing
targeted transactions, including as a result of the market becoming increasingly competitive, or achieve desired results of
operations.
Furthermore, we face risks in successfully integrating any businesses we might acquire, and these risks may be magnified by
the size and number of transactions we have executed. Ongoing business may be disrupted, and our management’s
attention may be diverted by acquisition, investment, transition or integration activities. In addition, we might need to dedicate
additional management and other resources, and our organizational structure could make it difficult for us to efficiently
integrate acquired businesses into our ongoing operations and assimilate and retain employees of those businesses into our
culture and operations. The loss of key executives, employees, customers, suppliers, vendors and other business partners of
businesses we acquire may adversely impact the value of the assets, operations or businesses. Furthermore, acquisitions or
joint ventures may result in significant costs and expenses, including those related to retention payments, equity
compensation, severance pay, early retirement costs, intangible asset amortization and asset impairment charges,
enhancing controls, procedures and policies including those related to financial reporting, disclosure, and cyber and
information security, assumed litigation and other liabilities, and legal, accounting and financial advisory fees, which could
negatively affect our profitability as these costs and expenses grow along with the increased capital invested in such
acquisitions and joint ventures. We may have difficulties as a result of entering into new markets where we have limited or no
direct prior experience or where competitors may have stronger market positions.
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We might fail to realize the expected benefits or strategic objectives of any acquisition, investment or joint venture we
undertake. We might not achieve our expected return on investment or may lose money. We may be adversely impacted by
liabilities that we assume from a company we acquire or in which we invest, including from that company’s known and
unknown obligations, intellectual property or other assets, terminated employees, current or former clients or other third
parties. In addition, we may fail to identify or adequately assess the magnitude of certain liabilities, shortcomings or other
circumstances prior to acquiring, investing in or partnering with a company, including potential exposure to regulatory
sanctions or liabilities resulting from an acquisition target’s previous activities, or from an acquisition’s controls related to
financial reporting, disclosure, and cyber and information security environment. The number of transactions we execute
annually may increase this risk. If any of these circumstances occurs, they could result in unexpected regulatory or legal
exposure, including litigation with new or existing clients, unfavorable accounting treatment, unexpected increases in taxes or
other adverse effects on our relationships with clients and our business. In addition, we have a lesser degree of control over
the business operations of the joint ventures and businesses in which we have made minority investments or in which we
have acquired less than 100% of the equity. This lesser degree of control may expose us to additional reputational, financial,
legal, compliance or operational risks. Litigation, indemnification claims and other unforeseen claims and liabilities may arise
from the acquisition or operation of acquired businesses. For example, we may face litigation or other claims as a result of
certain terms and conditions of the acquisition agreement, such as earnout payments or closing working capital adjustments.
Alternatively, shareholder litigation may arise as a result of proposed acquisitions. If we are unable to complete the number
and kind of investments for which we plan, or if we are inefficient or unsuccessful at integrating acquired businesses into our
operations, we may not be able to achieve our planned rates of growth or improve our market share, profitability or
competitive position in specific markets or services.
We also periodically evaluate, and have engaged in, the disposition of assets and businesses. Divestitures could involve
difficulties in the separation of operations, services, products and people, the diversion of management’s attention, the
disruption of our business and the potential loss of key employees. After reaching an agreement with a buyer for the
disposition of a business, the transaction may be subject to the satisfaction of pre-closing conditions, including obtaining
necessary regulatory and government approvals, which, if not satisfied or obtained, may prevent us from completing the
transaction. Divestitures may also involve continued financial involvement in or liability with respect to the divested assets
and businesses, such as indemnities or other financial obligations, in which the performance of the divested assets or
businesses could impact our results of operations. Any divestiture we undertake could adversely affect our results of
operations.
Legal and Regulatory Risks
Our business could be materially adversely affected if we incur legal liability.
We are subject to, and may become a party to, a variety of litigation or other claims and suits that arise from time to time in
the ordinary course of our business. Our business is subject to the risk of litigation involving current and former employees,
clients, ecosystem partners, subcontractors, suppliers, competitors, shareholders, government agencies or others through
private actions, class actions, whistleblower claims, administrative proceedings, regulatory actions or other litigation.
Regardless of the merits of the claims, the cost to defend current and future litigation may be significant, and such matters
can be time-consuming and divert management’s attention and resources. The results of litigation and other legal
proceedings are inherently uncertain, and adverse judgments or settlements in some or all of these legal disputes may result
in materially adverse monetary damages, fines, penalties, debarment or injunctive relief against us. Any claims or litigation,
even if fully indemnified or insured, could damage our reputation and make it more difficult to compete effectively or to obtain
adequate insurance in the future.
We could be subject to significant legal liability and litigation expense if we fail to meet our contractual obligations, contribute
to internal control or other deficiencies of a client or otherwise breach obligations to third parties, including clients, ecosystem
partners, employees and former employees, and other parties with whom we conduct business, or if our subcontractors
breach or dispute the terms of our agreements with them and impede our ability to meet our obligations to our clients, or if
our services or solutions cause bodily injuries or property damage. For example, by taking over the operation of certain
portions of our clients’ businesses, including functions and systems that are critical to the core businesses of our clients, by
contributing to the design, development, manufacturing and/or engineering of client products, or by providing various
operational technology, digital manufacturing and robotics or other industrial automation equipment solutions, and advisory
and management services for infrastructure projects, we may be exposed to additional and evolving operational, regulatory,
reputational or other risks specific to these areas, including risks related to data security, product liability, health and safety,
hazardous materials and other environmental risks. A failure of a client’s system based on our services or solutions could
also subject us to a claim for significant damages that could materially adversely affect our results of operations. In order to
remain competitive, we increasingly enter into agreements based on our clients’ contract terms after conducting an
assessment of the risk of doing so, which may expose us to additional risk. In addition, the contracting practices of
competitors, along with the demands of increasingly sophisticated clients, may cause contract terms and conditions that are
unfavorable to us to become new standards in the industry. We may commit to providing services or solutions that we are
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unable to deliver or whose delivery may reduce our profitability or cause us financial loss. If we cannot or do not meet our
contractual obligations and if our potential liability is not adequately limited through the terms of our agreements, liability
limitations are not enforced or a third party alleges fraud or other wrongdoing to prevent us from relying upon those
contractual protections, we might face significant legal liability and litigation expense and our results of operations could be
materially adversely affected. Moreover, as we expand our services and solutions into new areas, we may be exposed to
additional and evolving risks specific to these new areas.
In addition, we engage in platform trust and safety services on behalf of clients, including content moderation, which could
have a negative impact on our employees due to the nature of the materials they review. We have been subject to media
coverage regarding our provision of these services as well as litigation related to the provision of these services, which may
result in adverse judgments or settlements or government inquiries and investigations. Moreover, the use of AI may give rise
to risks related to harmful content, accuracy, bias, intellectual property infringement or misappropriation, defamation, data
privacy, and cybersecurity, among others, and also bring the possibility of new or enhanced governmental or regulatory
scrutiny, litigation or other legal liability, or ethical concerns that could adversely affect our business, reputation, or financial
results.
While we maintain insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential
liabilities and is subject to various exclusions as well as caps on amounts recoverable. Even if we believe a claim is covered
by insurance, insurers may dispute our entitlement to recovery for a variety of potential reasons, which may affect the timing
and, if they prevail, the amount of our recovery.
Our global operations expose us to numerous and sometimes conflicting legal and regulatory
requirements, and violation of these regulations could harm our business.
We are subject to numerous, changing, and sometimes conflicting, legal regimes on matters as diverse as anticorruption,
import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and
disclosure control obligations, securities regulation, including ESG regulation and reporting requirements, anti-competition,
anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and
labor relations, product liability, health and safety, environmental, human rights and AI regulations. The sanctions
environment has resulted in new sanctions and trade restrictions, which may impair trade with sanctioned individuals and
countries, and negative impacts to regional trade ecosystems among our clients, ecosystem partners, and us. For example,
as a result of the sanctions imposed in response to the invasion of Ukraine by Russia, we were restricted from offering
certain of our services to clients in some locations. The global nature of our operations, including emerging markets where
legal systems may be less developed or understood by us, and the diverse nature of our operations across a number of
regulated industries, further increase the difficulty of compliance. Compliance with diverse legal requirements is costly, time-
consuming and requires significant resources. Violations of one or more of these regulations in the conduct of our business
could result in significant fines, enforcement actions or criminal sanctions against us and/or our employees, prohibitions on
doing business and damage to our reputation. Violations of these regulations in connection with the performance of our
obligations to our clients also could result in liability for significant monetary damages, fines, enforcement actions and/or
criminal prosecution or sanctions, unfavorable publicity and other reputational damage and restrictions on our ability to
effectively carry out our contractual obligations and thereby expose us to potential claims from our clients. Due to the varying
degrees of development of the legal systems of the countries in which we operate, local laws may not be well developed or
provide sufficiently clear guidance and may be insufficient to protect our rights.
In particular, in many parts of the world, including countries in which we operate and/or seek to expand, practices in the local
business community might not conform to international business standards and could violate anticorruption laws, or
regulations, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010. Our employees, subcontractors,
vendors, agents, alliance or joint venture partners, the companies we acquire and their employees, subcontractors, vendors
and agents, and other third parties with which we associate, could take actions that violate policies or procedures designed
to promote legal and regulatory compliance or applicable anticorruption laws or regulations. Violations of these laws or
regulations by us, our employees or any of these third parties could subject us to criminal or civil enforcement actions
(whether or not we participated or knew about the actions leading to the violations), including fines or penalties,
disgorgement of profits and suspension or disqualification from work, including U.S. federal contracting, any of which could
materially adversely affect our business, including our results of operations and our reputation.
Changes in laws and regulations could also mandate significant and costly changes to the way we implement our services
and solutions or could impose additional taxes on our services and solutions. For example, changes in laws and regulations
to limit using off-shore resources in connection with our work or to penalize companies that use off-shore resources, which
have been proposed from time to time in various jurisdictions, could adversely affect our results of operations. Such changes
may result in contracts being terminated or work being transferred onshore, resulting in greater costs to us, and could have a
negative impact on our ability to obtain future work from government clients.
Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and
regulatory requirements designed to mitigate the effects of climate change on the environment, as well as legal and
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ACCENTURE 2023 FORM 10-K
Item 1A. Risk Factors
27
regulatory requirements requiring climate, human rights and supply chain-related disclosures. If new laws or regulations are
more stringent than current legal or regulatory requirements, we may experience increased compliance burdens and costs to
meet such obligations. In addition, our selection of voluntary disclosure frameworks and standards, and the interpretation or
application of those frameworks and standards, may change from time to time or may not meet the expectations of investors
or other stakeholders. Our ability to achieve our ESG commitments is subject to numerous risks, many of which are outside
of our control. Examples of such risks include: (1) the availability and cost of low- or non-carbon-based energy sources and
technologies; (2) evolving regulatory requirements affecting ESG standards or disclosures; (3) the availability of suppliers
that can meet our sustainability, diversity and other standards; and (4) our ability to recruit, develop, and retain diverse talent.
In addition, standards for tracking and reporting on ESG matters, including climate change and human rights related matters,
have not been harmonized and continue to evolve. Methodologies for reporting ESG data may be updated and previously
reported ESG data may be adjusted to reflect improvement in availability and quality of third-party data, changing
assumptions, changes in the nature and scope of our operations and other changes in circumstances. Our processes and
controls for reporting ESG matters across our operations are evolving along with multiple disparate standards for identifying,
measuring, and reporting ESG metrics, including ESG-related disclosures that may be required by the SEC, European and
other regulators, and such standards may change over time, which could result in significant revisions to our current goals,
reported progress in achieving such goals, or ability to achieve such goals in the future.
In addition, several jurisdictions where we operate have proposed legislation regulating AI and non-personal data that may
impose significant requirements on how we design, build and deploy AI and handle non-personal data for ourselves and our
clients.
Our work with government clients exposes us to additional risks inherent in the government
contracting environment.
Our clients include national, provincial, state and local governmental entities. Our government work carries various risks
inherent in the government contracting process. These risks include, but are not limited to, the following:
•
•
•
•
Government entities, particularly in the United States, often reserve the right to audit our contract costs and conduct
inquiries and investigations of our business practices and compliance with government contract requirements. U.S.
government agencies, including the Defense Contract Audit Agency, routinely audit our contract costs, including
allocated indirect costs, for compliance with the Cost Accounting Standards and the Federal Acquisition Regulation.
These agencies also conduct reviews and investigations and make inquiries regarding our accounting, information
technology and other systems in connection with our performance and business practices with respect to our
government contracts. Negative findings from existing and future audits, investigations or inquiries, or failure to comply
with applicable IT security or supply chain requirements, could affect our future sales and profitability by preventing us,
by operation of law or in practice, from receiving new government contracts for some period of time, or result in other
adverse consequences described in the following paragraphs. In addition, if the U.S. government concludes that certain
costs are not reimbursable, have not been properly determined or are based on outdated estimates of our work, then we
will not be allowed to bill for such costs, may have to refund money that has already been paid to us or could be required
to retroactively and prospectively adjust previously agreed to billing or pricing rates for our work. Negative findings from
existing and future audits of our business systems, including our accounting system, may result in the U.S. government
preventing us from billing, at least temporarily, a percentage of our costs. As a result of prior negative findings in
connection with audits, investigations and inquiries, we have from time to time experienced some of the adverse
consequences described above and may in the future experience further adverse consequences, which could materially
adversely affect our future results of operations.
If a government client discovers improper or illegal activities in the course of audits or investigations, or alleges that such
conduct occurred, we may become subject to various civil and criminal penalties, including those under the civil U.S.
False Claims Act, and administrative sanctions, which may include termination of contracts, forfeiture of profits,
suspension of payments, fines and suspensions or debarment from doing business with other agencies of that
government. The inherent limitations of internal controls may not prevent or detect all improper or illegal activities.
U.S. government contracting regulations impose strict compliance and heightened disclosure obligations. From time to
time we have made required or voluntary disclosures to the government in connection with our government contracting
work. Disclosure is required if certain company personnel have knowledge of “credible evidence” of a violation of federal
criminal laws involving fraud, conflict of interest, bribery or improper gratuity, a violation of the civil U.S. False Claims Act
or receipt of a significant overpayment from the government. Failure to make required disclosures could be a basis for
suspension and/or debarment from federal government contracting in addition to breach of the specific contract and
could also impact contracting beyond the U.S. federal level. Reported matters may also lead to audits or investigations
and other civil, criminal or administrative sanctions, including those described above.
Government contracts are subject to heightened reputational and contractual risks compared to contracts with
commercial clients. For example, government contracts and the proceedings surrounding them are often subject to more
extensive scrutiny and publicity. Negative publicity, including an allegation of improper or illegal activity, regardless of its
accuracy, may adversely affect our reputation.
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ACCENTURE 2023 FORM 10-K
Item 1A. Risk Factors
28
•
•
•
•
Terms and conditions of government contracts also tend to be more onerous and are often more difficult to negotiate.
For example, these contracts often contain high or unlimited liability for breaches and feature less favorable payment
terms and sometimes require us to take on liability for the performance of third parties.
Government entities typically fund projects through appropriated monies. While these projects are often planned and
executed as multi-year projects, government entities usually reserve the right to change the scope of or terminate these
projects for lack of approved funding and/or at their convenience. Changes in government or political developments,
including government closures or shutdowns, budget deficits, shortfalls or uncertainties, government spending
reductions or other debt constraints could result in our projects being reduced in price or scope or terminated altogether,
which also could limit our recovery of incurred costs, reimbursable expenses and profits on work completed prior to the
termination. Furthermore, if insufficient funding is appropriated to the government entity to cover termination costs, we
may not be able to fully recover our investments.
Political and economic factors such as pending elections, the outcome of recent elections, changes in leadership among
key executive or legislative decision makers, revisions to governmental tax or other policies and reduced tax revenues
can affect the number and terms of new government contracts signed or the speed at which new contracts are signed,
decrease future levels of spending and authorizations for programs that we bid, shift spending priorities to programs in
areas for which we do not provide services and/or lead to changes in enforcement or how compliance with relevant rules
or laws is assessed.
Our ability to work for the U.S. government is impacted by the fact that we are an Irish company. We elected to enter into
a proxy agreement with the U.S. Department of Defense that enhances the ability of our U.S. federal government
contracting subsidiary to perform certain work for the U.S. government. The proxy agreement regulates the management
and operation of, and limits the control we can exercise over, this subsidiary. In addition, legislative and executive
proposals remain under consideration or could be proposed in the future, which, if enacted, could place additional
limitations on or even prohibit our eligibility to be awarded state or federal government contracts in the United States or
could include requirements that would otherwise affect our results of operations. Various U.S. federal and state
legislative proposals have been introduced and/or enacted in recent years that deny government contracts to certain
U.S. companies that reincorporate or have reincorporated outside the United States. While Accenture was not a U.S.
company that reincorporated outside the United States, it is possible that these contract bans and other legislative
proposals could be applied in a way that negatively affects Accenture.
The occurrences or conditions described above could affect not only our business with the particular government entities
involved, but also our business with other entities of the same or other governmental bodies or with certain commercial
clients, and could have a material adverse effect on our business or our results of operations.
If we are unable to protect or enforce our intellectual property rights, or if our services or
solutions infringe upon the intellectual property rights of others or we lose our ability to utilize
the intellectual property of others, our business could be adversely affected.
Our success depends, in part, upon our ability to obtain intellectual property protection for our proprietary platforms,
methodologies, processes, software, hardware and other solutions. Existing laws of the various countries in which we
provide services or solutions may offer only limited intellectual property protection of our services or solutions, and the
protection in some countries may be very limited. We rely upon a combination of confidentiality policies and procedures,
nondisclosure and other contractual arrangements, and patent, trade secret, copyright and trademark laws to protect our
intellectual property rights. These laws are subject to change at any time and could further limit our ability to obtain or
maintain intellectual property protection. There is uncertainty concerning the scope of patent and other intellectual property
protection for software and business methods, which are fields in which we rely on intellectual property laws to protect our
rights. Even where we obtain intellectual property protection, our intellectual property rights may not prevent or deter
competitors, former employees, or other third parties from reverse engineering our solutions or proprietary methodologies
and processes or independently developing services or solutions similar to or duplicative of ours. Further, the steps we take
in this regard might not be adequate to prevent or deter infringement or other misappropriation of our intellectual property by
competitors, former employees or other third parties, and we might not be able to detect unauthorized use of, or take
appropriate and timely steps to enforce, our intellectual property rights. Enforcing our rights might also require considerable
time, money and oversight, and we may not be successful in enforcing our rights.
In addition, we cannot be sure that our services and solutions, including, for example, our software and hardware solutions,
or the solutions of others that we offer to our clients, do not infringe on the intellectual property rights of third parties
(including competitors as well as non-practicing holders of intellectual property assets), and these third parties could claim
that we or our clients are infringing upon their intellectual property rights. Furthermore, although we have established policies
and procedures to respect the intellectual property rights of third parties and that prohibit the unauthorized use of intellectual
property, we may not be aware if our employees have misappropriated and/or misused intellectual property, and their actions
could result in claims of intellectual property misappropriation and/or infringement from third parties. These claims could
harm our reputation, cause us to incur substantial costs or prevent us from offering some services or solutions in the future.
Any related proceedings could require us to expend significant resources over an extended period of time. In most of our
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ACCENTURE 2023 FORM 10-K
Item 1A. Risk Factors
29
contracts, we agree to indemnify our clients for expenses and liabilities resulting from claimed infringements of the
intellectual property rights of third parties. In some instances, the amount of these indemnities could be greater than the
revenues we receive from the client. Any claims or litigation in this area could be time-consuming and costly, damage our
reputation and/or require us to incur additional costs to obtain the right to continue to offer a service or solution to our clients.
If we cannot secure this right at all or on reasonable terms, or we are unable to implement in a cost-effective manner
alternative technology, our results of operations could be materially adversely affected. The risk of infringement claims
against us may increase as we expand our industry software and hardware solutions and continue to develop and license
our software and sell our hardware to multiple clients. Any infringement action brought against us or our clients could be
costly to defend or lead to an expensive settlement or judgment against us.
Further, we rely on third-party software, hardware and other intellectual property in providing some of our services and
solutions. If we lose our ability to continue using any such software, hardware or intellectual property for any reason,
including because it is found to infringe the rights of others, we will need to obtain substitutes or seek alternative means of
obtaining the technology necessary to continue to provide such services and solutions. Our inability to replace such software,
hardware or intellectual property effectively or in a timely and cost-effective manner could materially adversely affect our
results of operations.
We are incorporated in Ireland and Irish law differs from the laws in effect in the United States
and might afford less protection to our shareholders. We may also be subject to criticism and
negative publicity related to our incorporation in Ireland.
Irish law differs from the laws in effect in the United States and our shareholders could have more difficulty protecting their
interests than would shareholders of a corporation incorporated in a jurisdiction of the United States. The United States
currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in civil
and commercial matters. As such, there is some uncertainty as to whether the courts of Ireland would recognize or enforce
judgments of U.S. courts obtained against us or our directors or officers based on U.S. federal or state civil liability laws,
including the civil liability provisions of the U.S. federal or state securities laws, or hear actions against us or those persons
based on those laws.
As an Irish company, we are governed by the Companies Act. The Companies Act differs in some significant, and possibly
material, respects from laws applicable to U.S. corporations and shareholders under various state corporation laws, including
the provisions relating to interested directors, mergers and acquisitions, takeovers, shareholder lawsuits and indemnification
of directors.
Under Irish law, the duties of directors and officers of a company are generally owed to the company only. Shareholders of
Irish companies do not generally have rights to take action against directors or officers of the company under Irish law, and
may only do so in limited circumstances. Directors of an Irish company must, in exercising their powers and performing their
duties, act with due care and skill, honestly and in good faith with a view to the best interests of the company. Directors have
a duty not to put themselves in a position in which their duties to the company and their personal interests might conflict and
also are under a duty to disclose any personal interest in any contract or arrangement with the company or any of its
subsidiaries. If a director or officer of an Irish company is found to have breached his or her duties to that company, he or she
could be held personally liable to the company in respect of that breach of duty.
Under Irish law, we must have authority from our shareholders to issue any shares, including shares that are part of the
company’s authorized but unissued share capital. In addition, unless otherwise authorized by its shareholders, when an Irish
company issues shares for cash to new shareholders, it is required first to offer those shares on the same or more favorable
terms to existing shareholders on a pro-rata basis. If we are unable to obtain these authorizations from our shareholders, or
are otherwise limited by the terms of our authorizations, our ability to issue shares under our equity compensation plans and,
if applicable, to facilitate funding acquisitions or otherwise raise capital could be adversely affected.
Some companies that conduct substantial business in the United States but that have a parent domiciled in certain other
jurisdictions have been criticized as improperly avoiding U.S. taxes or creating an unfair competitive advantage over U.S.
companies. Accenture never conducted business under a U.S. parent company and pays U.S. taxes on all of its U.S.
operations. Nonetheless, we could be subject to criticism in connection with our incorporation in Ireland.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 1B. Unresolved Staff Comments
30
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Not Applicable.
Item 2. Properties
We have major offices in the world’s leading business centers, including Boston, Chicago, New York, San Francisco, Dublin,
Frankfurt, London, Madrid, Milan, Paris, Rome, Bangalore, Beijing, Manila, Mumbai, São Paolo, Shanghai, Singapore,
Sydney and Tokyo, among others. In total, we have facilities and operations in more than 200 cities in 49 countries around
the world. We do not own any material real property. Substantially all of our facilities are leased under long-term leases with
varying expiration dates. We believe that our facilities are adequate to meet our needs in the near future.
Item 3. Legal Proceedings
The information set forth under “Legal Contingencies” in Note 15 (Commitments and Contingencies) to our Consolidated
Financial Statements under Part II, Item 8, “Financial Statements and Supplementary Data,” is incorporated herein by
reference.
Item 4. Mine Safety Disclosures
Not applicable.
Table of Contents
ACCENTURE 2023 FORM 10-K
Part II
Part II
31
Item 5. Market for Registrant’s Common Equity,
Related Shareholder Matters and Issuer
Purchases of Equity Securities
Accenture plc Class A ordinary shares are traded on the New York Stock Exchange under the symbol “ACN.” The New York
Stock Exchange is the principal United States market for these shares. As of September 28, 2023, there were 369 holders of
record of Accenture plc Class A ordinary shares.
There is no trading market for Accenture plc Class X ordinary shares. As of September 28, 2023, there were 14 holders of
record of Accenture plc Class X ordinary shares.
Dividends
For information about our dividend activity during fiscal 2023, see Note 14 (Shareholders’ Equity) to our Consolidated
Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
On September 27, 2023, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.29 per share on
our Class A ordinary shares for shareholders of record at the close of business on October 12, 2023, payable on
November 15, 2023. For the remainder of fiscal 2024, we expect to declare additional quarterly dividends in December 2023
and March and June 2024, to be paid in February, May and August 2024, respectively, subject to the approval of the Board of
Directors.
In certain circumstances, as an Irish tax resident company, we may be required to deduct Irish dividend withholding tax
(“DWT”) (currently at the rate of 25%) from dividends paid to our shareholders. Shareholders resident in “relevant
territories” (including countries that are European Union member states (other than Ireland), the United States and other
countries with which Ireland has a tax treaty) may be exempted from Irish DWT. However, shareholders residing in other
countries will generally be subject to Irish DWT.
Recent Sales of Unregistered Securities
None.
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ACCENTURE 2023 FORM 10-K
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
32
Purchases of Accenture plc Class A Ordinary Shares
The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the fourth
quarter of fiscal 2023. For year-to-date information on all of our share purchases, redemptions and exchanges and further
discussion of our share purchase activity, see “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources—Share Purchases and Redemptions.”
Period
Total Number of
Shares
Purchased
Average
Price Paid
per Share (1)
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (2)
Approximate Dollar Value
of Shares that May Yet Be
Purchased Under the Plans or
Programs (3)
(in millions of U.S. dollars)
June 1, 2023 — June 30, 2023
July 1, 2023 — July 31, 2023
August 1, 2023 — August 31, 2023
Total (4)
1,188,903 $
933,053
1,081,351
3,203,307 $
309.36
314.28
313.96
312.35
1,164,794 $
922,584
1,062,460
3,149,838
3,115
2,824
2,490
(1) Average price paid per share reflects the total cash outlay for the period, divided by the number of shares acquired, including those acquired by
purchase or redemption for cash and any acquired by means of employee forfeiture.
(2) Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share
purchase program for acquiring Accenture plc Class A ordinary shares. During the fourth quarter of fiscal 2023, we purchased 3,149,838
Accenture plc Class A ordinary shares under this program for an aggregate price of $984 million. The open-market purchase program does not
have an expiration date.
(3) As of August 31, 2023, our aggregate available authorization for share purchases and redemptions was $2,490 million, which management has
the discretion to use for either our publicly announced open-market share purchase program or our other share purchase programs. Since
August 2001 and as of August 31, 2023, the Board of Directors of Accenture plc has authorized an aggregate of $46.1 billion for share
purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc. On September 27, 2023, the Board of Directors of Accenture
plc approved $4,000 million in additional share repurchase authority, bringing Accenture’s total outstanding authority to $6,490 million.
(4) During the fourth quarter of fiscal 2023, Accenture purchased 53,469 Accenture plc Class A ordinary shares in transactions unrelated to publicly
announced share plans or programs. These transactions consisted of acquisitions of Accenture plc Class A ordinary shares primarily via share
withholding for payroll tax obligations due from employees and former employees in connection with the delivery of Accenture plc Class A
ordinary shares under our various employee equity share plans. These purchases of shares in connection with employee share plans do not
affect our aggregate available authorization for our publicly announced open-market share purchase and our other share purchase programs.
Item 6. [Reserved]
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
33
Item 7. Management’s Discussion and Analysis
of Financial Condition and Results of
Operations
The following discussion and analysis should be read in conjunction with our Consolidated Financial
Statements and related Notes included elsewhere in this Annual Report on Form 10-K. This discussion
and analysis also contains forward-looking statements and should also be read in conjunction with the
disclosures and information contained in “Disclosure Regarding Forward-Looking Statements” and
“Risk Factors” in this Annual Report on Form 10-K.
We use the terms “Accenture,” “we,” “our” and “us” in this report to refer to Accenture plc and its
subsidiaries. All references to years, unless otherwise noted, refer to our fiscal year, which ends on
August 31. For example, a reference to “fiscal 2023” means the 12-month period that ended on
August 31, 2023. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal
year.
We use the term “in local currency” so that certain financial results may be viewed without the impact of
foreign currency exchange rate fluctuations, thereby facilitating period-to-period comparisons of
business performance. 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.
Overview
Accenture is a leading global professional services company, providing a broad range of services and solutions across
Strategy & Consulting, Technology, Operations, Industry X and Song. We serve clients in three geographic markets: North
America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East). We combine our strength in
technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery
capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their
operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.
Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary
environment and levels of business confidence. There continues to be significant economic and geopolitical uncertainty in
many markets around the world, which has impacted and may continue to impact our business. These conditions have
slowed the pace and level of client spending for smaller contracts with a shorter duration, especially for our consulting
services. From an industry perspective, we are also experiencing reduced demand particularly in our Communications,
Media & Technology industry group.
Key Metrics
Key metrics for fiscal 2023 compared to fiscal 2022 are included below. We have presented operating margin and diluted
earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $1,063 million in business optimization costs
and, with respect to diluted earnings per share, the impact of a $253 million investment gain recorded during fiscal 2023. For
additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements
under Item 8, “Financial Statements and Supplementary Data.”
•
•
•
•
•
Revenues of $64.1 billion, representing 4% growth in U.S. dollars and 8% growth in local currency;
New bookings of $72.2 billion, an increase of 1% in U.S. dollars and 5% in local currency;
Operating margin of 13.7%, compared to 15.2% in fiscal 2022; adjusted operating margin expanded 20 basis points to
15.4%;
Diluted earnings per share of $10.77, compared to $10.71 for fiscal 2022; adjusted earnings per share increased 9%
to $11.67; and
Cash returned to shareholders of $7.2 billion, including share purchases of $4.3 billion and dividends of $2.8 billion.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
34
Revenues
(in billions of U.S. dollars)
Geographic Markets (1) North America
Europe
Growth Markets
Total Revenues
$
$
Industry Groups
Type of Work
Communications, Media & Technology $
Financial Services
Health & Public Service
Products
Resources
Total Revenues
$
Consulting
Managed Services (2)
Total Revenues
$
$
Fiscal
2023
2022
Percent
Increase
(Decrease)
U.S.
Dollars
Percent
Increase
(Decrease)
Local
Currency
30.3 $
21.3
12.5
64.1 $
11.5 $
12.1
12.6
19.1
8.9
64.1 $
33.6 $
30.5
64.1 $
29.1
20.3
12.2
61.6
12.2
11.8
11.2
18.3
8.1
61.6
34.1
27.5
61.6
4 %
5
3
4 %
(6) %
3
12
5
10
4 %
(1) %
11
4 %
4 %
11
12
8 %
(3) %
7
14
9
15
8 %
3 %
14
8 %
Amounts in table may not total due to rounding.
(1)
(2)
In the first quarter of fiscal 2024, our Middle East and Africa market units will move from Growth Markets to Europe, and the Europe market
will be referred to as our Europe, Middle East and Africa (EMEA) geographic market.
Previously referred to as our outsourcing business.
Revenues for fiscal 2023 increased 4% in U.S. dollars and 8% in local currency compared to fiscal 2022. During fiscal 2023,
revenue growth in local currency was very strong in Growth Markets and Europe and solid in North America. We experienced
local currency revenue growth that was very strong in Resources and Health & Public Service, strong in Products and
Financial Services, partially offset by a modest decline in Communications, Media & Technology. Revenue growth in local
currency was very strong in managed services and modest in consulting during fiscal 2023. The business environment is
competitive, and we are experiencing lower pricing across the business. We define pricing as contract profitability or margin
on the work that we sell.
In our consulting business, revenues for fiscal 2023 decreased 1% in U.S. dollars and increased 3% in local currency
compared to fiscal 2022. Consulting revenue growth in local currency in fiscal 2023 was driven by strong growth in Growth
Markets and solid growth in Europe, while North America was flat. Our consulting revenue continues to be driven by helping
our clients accelerate their digital transformation, including moving to the cloud, embedding security across the enterprise
and adopting new technologies. In addition, clients continue to be focused on initiatives designed to deliver cost savings and
operational efficiency, as well as projects to accelerate growth and improve customer experiences. While we continue to
experience demand for these services, we are seeing a slower pace and level of client spending, especially for smaller
contracts with a shorter duration.
In our managed services business, revenues for fiscal 2023 increased 11% in U.S. dollars and 14% in local currency
compared to fiscal 2022. Managed services revenue growth in local currency in fiscal 2023 was driven by very strong growth
in Growth Markets and Europe and strong growth in North America. We continue to experience growing demand to assist
clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service (formerly
managed security services). In addition, clients continue to be focused on transforming their operations through data and
analytics, automation and artificial intelligence to drive productivity and operational cost savings.
As we are a global company, our revenues are denominated in multiple currencies and may be significantly affected by
currency exchange rate fluctuations. While a significant portion of our revenues are in U.S. dollars, the majority of our
revenues are denominated in other currencies, including the Euro, Japanese yen and U.K. pound. There continues to be
volatility in foreign currency exchange rates. Unfavorable fluctuations in foreign currency exchange rates have had and could
in the future have a material effect on our financial results. If the U.S. dollar weakens against other currencies, resulting in
favorable currency translation, our revenues, revenue growth and results of operations in U.S. dollars may be higher. If the
U.S. dollar strengthens against other currencies, resulting in unfavorable currency translation, our revenues, revenue growth
and results of operations in U.S. dollars may be lower. The U.S. dollar strengthened against various currencies during fiscal
2023, resulting in unfavorable currency translation and U.S. dollar revenue growth that was approximately 4% lower than our
revenue growth in local currency for the year. Assuming that exchange rates stay within recent ranges, we estimate that our
fiscal 2024 revenue growth in U.S. dollars will be approximately equal to our revenue growth in local currency.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
35
People Metrics
Utilization
91%
consistent with fiscal 2022
Workforce
733,000
compared to approximately
721,000 as of August 31, 2022
Annualized Voluntary
Attrition
13%
compared to 19% in fiscal 2022
Utilization for fiscal 2023 was 91%, consistent with fiscal 2022. We hire to meet current and projected future demand. We
proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in
the anticipated demand for our services and solutions, given that compensation costs are the most significant portion of our
operating expenses. Our workforce, the majority of which serves our clients, increased to approximately 733,000 as of
August 31, 2023, compared to approximately 721,000 as of August 31, 2022. The year-over-year increase in our workforce
reflects people added in connection with acquisitions and hiring for specific skills.
For fiscal 2023, attrition, excluding involuntary terminations, was 13%, down from 19% in fiscal 2022. For the fourth quarter
of fiscal 2023, annualized attrition, excluding involuntary terminations, was 14%, up from 13% in the third quarter of fiscal
2023. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our
supply of skills and resources in balance with changes in client demand. During the second quarter of fiscal 2023, we
initiated actions to streamline operations and transform our nonbillable corporate functions to reduce costs.
In addition, we adjust compensation in order to attract and retain appropriate numbers of qualified employees. For the
majority of our people, compensation increases became effective December 1st of fiscal 2023. Given the overall inflationary
environment, compensation has increased faster than in prior years, but is moderating. We strive to adjust pricing as well as
drive cost and delivery efficiencies, such as changing the mix of people and utilizing technology, to reduce the impact of
compensation increases on our margin and contract profitability.
Our ability to grow our revenues and maintain or increase our margin could be adversely affected if we are unable to: match
people and skills with the types or amounts of services and solutions clients are demanding; recover or offset increases in
compensation; deploy our employees globally on a timely basis; manage attrition; and/or effectively assimilate new
employees.
Operating Expenses
The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative
costs. Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation,
subcontractor and other payroll costs, and non-payroll costs such as facilities, technology and travel. Cost of services
includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of
acquisitions. Sales and marketing costs are driven primarily by: compensation costs for business development activities;
marketing- and advertising-related activities; and certain acquisition-related costs. General and administrative costs primarily
include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs.
Gross margin (Revenues less Cost of services as a percentage of Revenues) for fiscal 2023 was 32.3%, compared with
32.0% for fiscal 2022. The increase in gross margin for fiscal 2023 was primarily due to lower labor costs, including lower
subcontractor costs, partially offset by higher non-payroll costs, primarily for travel.
Sales and marketing and General and administrative costs as a percentage of revenues were 16.9% for fiscal 2023,
compared with 16.8% for fiscal 2022. For fiscal 2023 compared to fiscal 2022, Sales and marketing costs increased 40 basis
points due to higher selling and other business development costs as a percentage of revenues. General and administrative
costs decreased 20 basis points as a percentage of revenues.
During fiscal 2023, we recorded $1,063 million in business optimization costs primarily for employee severance. For
additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements
under Item 8, “Financial Statements and Supplementary Data.”
Operating margin (Operating income as a percentage of Revenues) for fiscal 2023 was 13.7%, compared with 15.2% for
fiscal 2022.The business optimization costs recorded during fiscal 2023 reduced operating margin by 170 basis points.
Excluding these costs, operating margin for fiscal 2023 increased 20 basis points to 15.4%.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
36
Other Income (Expense), net
During fiscal 2023, we recorded a gain of $253 million related to our investment in Duck Creek Technologies. For additional
information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8,
“Financial Statements and Supplementary Data.”
Effective Tax Rate
The effective tax rates for fiscal 2023 and 2022 were 23.4% and 24.0%, respectively. Absent the business optimization costs
of $1,063 million and related reduction in tax expense of $247 million, as well as an investment gain of $253 million and
related tax expense of $9 million, our effective tax rate for fiscal 2023 was 23.9%.
Earnings Per Share
Diluted earnings per share were $10.77 for fiscal 2023, compared with $10.71 for fiscal 2022. The $816 million of business
optimization costs, net of related taxes, decreased diluted earnings per share by $1.28 and the $244 million investment gain,
net of related taxes, increased diluted earnings per share by $0.38 for fiscal 2023. Excluding these impacts, diluted earnings
per share were $11.67 for fiscal 2023.
Our operating income and diluted earnings per share are affected by currency exchange rate fluctuations on revenues and
costs. Most of our costs are incurred in the same currency as the related revenues. Where practical, we seek to manage
foreign currency exposure for costs not incurred in the same currency as the related revenues, such as the costs associated
with our global delivery model, by using currency protection provisions in our customer contracts and through our hedging
programs. We seek to manage our costs, taking into consideration the residual positive and negative effects of changes in
foreign exchange rates on those costs. For more information on our hedging programs, see Foreign Currency Risk under
Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our
Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Non-GAAP Financial Measures
For fiscal 2023, we have presented effective tax rates and diluted earnings per share excluding the business optimization
costs and investment gain, as well as operating income and operating margin excluding the business optimization costs, as
we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior
periods. While we believe that this non-GAAP financial information is useful in evaluating our operations, this information
should be considered as supplemental in nature and not as a substitute for the related financial information prepared in
accordance with GAAP.
New Bookings
(in billions of U.S. dollars)
Consulting
Managed Services (1)
Total New Bookings
Fiscal
2023
36.2 $
36.0
72.2 $
2022
37.9
33.9
71.7
$
$
Percent
Increase
(Decrease)
U.S.
Dollars
Percent
Increase
(Decrease)
Local
Currency
(4) %
6
1 %
(1) %
10
5 %
Amounts in table may not total due to rounding.
(1)
Previously referred to as our outsourcing business.
We provide information regarding our new bookings, which include new contracts, including those acquired through
acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides
useful trend information regarding changes in the volume of our new business over time. New bookings can vary significantly
quarter to quarter depending in part on the timing of the signing of a small number of large managed services contracts. The
types of services and solutions clients are demanding and the pace and level of their spending may impact the conversion of
new bookings to revenues. For example, managed services bookings, which are typically for multi-year contracts, generally
convert to revenue over a longer period of time compared to consulting bookings.
Information regarding our new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues
over time. New bookings involve estimates and judgments. There are no third-party standards or requirements governing the
calculation of bookings. We do not update our new bookings for material subsequent terminations or reductions related to
bookings originally recorded in prior fiscal years. New bookings are recorded using then-existing foreign currency exchange
rates and are not subsequently adjusted for foreign currency exchange rate fluctuations.
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ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
37
The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some
without notice. Only the non-cancelable portion of these contracts is included in our remaining performance obligations
disclosed in Note 2 (Revenues) to our Consolidated Financial Statements under Item 8, “Financial Statements and
Supplementary Data.” Accordingly, a significant portion of what we consider contract bookings is not included in our
remaining performance obligations.
Critical Accounting Policies and Estimates
The preparation of our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles
requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues
and expenses. We continually evaluate our estimates, judgments and assumptions based on available information and
experience. Because the use of estimates is inherent in the financial reporting process, actual results could differ from those
estimates. Certain of our accounting policies require higher degrees of judgment than others in their application. These
include certain aspects of accounting for revenue recognition and income taxes.
Revenue Recognition
Determining the method and amount of revenue to recognize requires us to make judgments and estimates. Specifically,
complex arrangements with nonstandard terms and conditions may require contract interpretation to determine the
appropriate accounting, including whether promised goods and services specified in an arrangement are distinct
performance obligations and should be accounted for separately. Other judgments include determining whether performance
obligations are satisfied over time or at a point in time and the selection of the method to measure progress towards
completion.
We measure progress towards completion for technology integration consulting services and some non-technology
consulting services using costs incurred to date relative to total estimated costs at completion. Revenues, including
estimated fees, are recorded proportionally as costs are incurred. The amount of revenue recognized for these contracts in a
period is dependent on our ability to estimate total contract costs. We continually evaluate our estimates of total contract
costs based on available information and experience.
Additionally, the nature of our contracts gives rise to several types of variable consideration, including incentive fees. Many
contracts include incentives or penalties related to costs incurred, benefits produced or adherence to schedules that may
increase the variability in revenues and margins earned on such contracts. We conduct reviews prior to signing such
contracts to evaluate whether these incentives are reasonably achievable. Our estimates are monitored over the lives of our
contracts and are based on an assessment of our anticipated performance, historical experience and other information
available at the time.
For additional information, see Note 2 (Revenues) to our Consolidated Financial Statements under Item 8, “Financial
Statements and Supplementary Data.”
Income Taxes
Determining the consolidated provision for income tax expense, income tax liabilities and deferred tax assets and liabilities
involves judgment. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax
consequences of temporary differences between the tax and financial statement bases of assets and liabilities. As a global
company, we calculate and provide for income taxes in each of the tax jurisdictions in which we operate. This involves
estimating current tax exposures in each jurisdiction as well as making judgments regarding the recoverability of deferred tax
assets. Tax exposures can involve complex issues and may require an extended period to resolve. In assessing the
realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax
assets will not be realized and adjust the valuation allowances accordingly. Factors considered in making this determination
include the period of expiration of the tax asset, planned use of the tax asset, tax planning strategies and historical and
projected taxable income as well as tax liabilities for the tax jurisdiction in which the tax asset is located. Valuation
allowances will be subject to change in each future reporting period as a result of changes in one or more of these factors.
Changes in the geographic mix or estimated level of annual income before taxes can affect the overall effective tax rate.
We apply an estimated annual effective tax rate to our quarterly operating results to determine the interim provision for
income tax expense. A change in judgment that impacts the measurement of a tax position taken in a prior year is
recognized as a discrete item in the interim period in which the change occurs. In the event there is a significant unusual or
infrequent item recognized in our quarterly operating results, the tax attributable to that item is recorded in the interim period
in which it occurs. We release stranded tax effects from Accumulated other comprehensive loss using the specific
identification approach for our defined benefit plans and the portfolio approach for other items.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
38
No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested. If future events,
including material changes in estimates of cash, working capital and long-term investment requirements, necessitate that
these earnings be distributed, an additional provision for taxes may apply, which could materially affect our future effective
tax rate. We currently do not foresee any event that would require us to distribute these indefinitely reinvested earnings. For
additional information, see Note 11 (Income Taxes) to our Consolidated Financial Statements under Item 8, “Financial
Statements and Supplementary Data.”
As a matter of course, we are regularly audited by various taxing authorities, and sometimes these audits result in proposed
assessments where the ultimate resolution may result in us owing additional taxes. We establish tax liabilities or reduce tax
assets when, despite our belief that our tax return positions are appropriate and supportable under local tax law, we believe
we may not succeed in realizing the tax benefit of certain positions if challenged. In evaluating a tax position, we determine
whether it is more likely than not that the position will be sustained upon examination, including resolution of any related
appeals or litigation processes, based on the technical merits of the position. Our estimate of the ultimate tax liability contains
assumptions based on past experiences, judgments about potential actions by taxing jurisdictions as well as judgments
about the likely outcome of issues that have been raised by taxing jurisdictions. The tax position is measured at the largest
amount of benefit that is greater than 50 percent likely of being realized upon settlement. We evaluate tax positions each
quarter and adjust the related tax liabilities or assets in light of changing facts and circumstances, such as the progress of a
tax audit or the expiration of a statute of limitations. We believe the estimates and assumptions used to support our
evaluation of tax positions are reasonable. However, final determinations of prior-year tax liabilities, either by settlement with
tax authorities or expiration of statutes of limitations, could be materially different from estimates reflected in assets and
liabilities and historical income tax provisions. The outcome of these final determinations could have a material effect on our
income tax provision, net income, or cash flows in the period in which that determination is made. We believe our tax
positions comply with applicable tax law and that we have adequately accounted for these positions.
Revenues by Segment/Geographic Market
Our three reportable operating segments are our geographic markets, North America, Europe and Growth Markets. In
addition to reporting revenues by geographic market and industry group, we also report revenues by two types of work:
consulting and managed services, which represent the services sold by our geographic markets. Consulting revenues, which
include strategy, management and technology consulting and technology integration consulting, reflect a finite, distinct
project or set of projects with a defined outcome and typically a defined set of specific deliverables. Managed services
revenues typically reflect ongoing, repeatable services or capabilities provided to transition, run and/or manage operations of
client systems or business functions.
From time to time, our geographic markets work together to sell and implement certain contracts. The resulting revenues and
costs from these contracts may be apportioned among the participating geographic markets. Generally, operating expenses
for each geographic market have similar characteristics and are subject to the same factors, pressures and challenges.
However, the economic environment and its effects on the industries served by our geographic markets affect revenues and
operating expenses within our geographic markets to differing degrees. The mix between consulting and managed services
is not uniform among our geographic markets. Local currency fluctuations also tend to affect our geographic markets
differently, depending on the geographic concentrations and locations of their businesses.
While we provide discussion about our results of operations below, we cannot measure how much of our revenue growth in a
particular period is attributable to changes in price or volume. Management does not track standard measures of unit or rate
volume. Instead, our measures of volume and price are extremely complex, as each of our services contracts is unique,
reflecting a customized mix of specific services that does not fit into standard comparability measurements. Revenue for our
services is a function of the nature of each service to be provided, the skills required and the outcome sought, as well as
estimated cost, risk, contract terms and other factors.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
39
Results of Operations for Fiscal 2023 Compared to Fiscal 2022
Revenues by geographic market, industry group and type of work are as follows:
Fiscal
2023
2022
Percent
Increase
(Decrease)
U.S.
Dollars
Percent
Increase
(Decrease)
Local
Currency
Percent of Total
Revenues
for Fiscal
2023
2022
(in millions of U.S. dollars)
Geographic Markets (1)
North America
Europe
Growth Markets
Total Revenues
Industry Groups
$
30,296 $
21,285
12,531
$
64,112 $
Communications, Media & Technology $
Financial Services
Health & Public Service
Products
Resources
Total Revenues
Type of Work
Consulting
Managed Services (2)
Total Revenues
$
$
$
11,453 $
12,132
12,560
19,104
8,863
64,112 $
33,613 $
30,499
64,112 $
29,121
20,264
12,209
61,594
12,200
11,811
11,226
18,275
8,082
61,594
34,076
27,518
61,594
4 %
5
3
4 %
4 %
11
12
47 %
33
20
47 %
33
20
8 %
100 %
100 %
(6) %
(3) %
18 %
20 %
3
12
5
10
7
14
9
15
19
20
30
14
19
18
30
13
4 %
8 %
100 %
100 %
(1) %
11
4 %
3 %
14
8 %
52 %
48
100 %
55 %
45
100 %
Amounts in table may not total due to rounding.
(1)
(2)
In the first quarter of fiscal 2024, our Middle East and Africa market units will move from Growth Markets to Europe, and the Europe market
will be referred to as our Europe, Middle East and Africa (EMEA) geographic market.
Previously referred to as our outsourcing business.
Revenues
The following revenues commentary discusses local currency revenue changes for fiscal 2023 compared to fiscal 2022:
Geographic Markets
•
•
•
North America revenues increased 4% in local currency, led by growth in Public Service for our U.S. federal business,
Health and Utilities. These increases were partially offset by declines in Communications & Media, High Tech, Banking &
Capital Markets and Software & Platforms. Revenue growth was driven by the United States.
Europe revenues increased 11% in local currency, led by growth in Industrial, Banking & Capital Markets and Public
Service. Revenue growth was driven by Germany, Italy and France.
Growth Markets revenues increased 12% in local currency, led by growth in Chemicals & Natural Resources, Public
Service and Banking & Capital Markets. Revenue growth was driven by Japan.
Operating Expenses
Operating expenses for fiscal 2023 increased $3,075 million, or 6%, over fiscal 2022, and increased as a percentage of
revenues to 86.3% compared to 84.8% during this period. The increase as a percentage of revenues is primarily due to
business optimization costs of $1,063 million recorded during fiscal 2023.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
40
Operating expenses by category are as follows:
(in millions of U.S. dollars)
Operating Expenses
Cost of services
Sales and marketing
General and administrative costs
Business optimization costs
Amounts in table may not total due to rounding.
Cost of Services
Fiscal
2023
2022
Increase
(Decrease)
$
55,302
86.3 % $
52,227
84.8 % $
43,380
6,583
4,276
1,063
67.7
10.3
6.7
1.7
41,893
68.0
6,108
4,226
—
9.9
6.9
—
3,075
1,487
474
50
1,063
Cost of services for fiscal 2023 increased $1,487 million, or 4%, over fiscal 2022, and decreased as a percentage of
revenues to 67.7% from 68.0% during this period. Gross margin for fiscal 2023 increased to 32.3% compared to 32.0% in
fiscal 2022. The increase in gross margin for fiscal 2023 was primarily due to lower labor costs, including lower subcontractor
costs, partially offset by higher non-payroll costs, primarily for travel compared to fiscal 2022.
Sales and Marketing
Sales and marketing expense for fiscal 2023 increased $474 million, or 8%, over fiscal 2022, and increased as a percentage
of revenues to 10.3% over 9.9% during this period due to higher selling and other business development costs as a
percentage of revenues.
General and Administrative Costs
General and administrative costs for fiscal 2023 increased $50 million, or 1%, over fiscal 2022, and decreased as a
percentage of revenues to 6.7% from 6.9% during this period.
Business Optimization Costs
During fiscal 2023, we recorded business optimization costs of $1,063 million, primarily for employee severance. For
additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements
under Item 8, “Financial Statements and Supplementary Data.”
Operating Income and Operating Margin
Operating income for fiscal 2023 decreased $557 million, or 6%, from fiscal 2022. Operating margin for fiscal 2023 was
13.7%, compared with 15.2% for fiscal 2022. The business optimization costs reduced operating margin by 170 basis points.
Excluding these costs, operating margin for fiscal 2023 increased 20 basis points to 15.4%.
Operating income and operating margin for each of the geographic markets are as follows:
(in millions of U.S. dollars)
North America
Europe
Growth Markets
Total
Amounts in table may not total due to rounding.
Fiscal
2023
2022
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
Increase
(Decrease)
$
$
4,474
2,333
2,004
8,810
15 % $
11
16
13.7 % $
4,977
2,437
1,953
9,367
17 % $
12
16
(503)
(105)
51
15.2 % $
(557)
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
41
Operating Income and Operating Margin Excluding Business Optimization Costs (Non-GAAP)
(in millions of U.S.
dollars)
North America
Europe
Growth Markets
Fiscal
2023
2022
Operating
Income
(GAAP)
Business
Optimization
(1)
Operating
Income
(Non-GAAP)
Operating
Margin
(Non-GAAP)
Operating
Income
(GAAP)
Operating
Margin
(GAAP)
Increase
(Decrease)
$
4,474 $
465 $
2,333
2,004
433
165
4,939
2,766
2,169
9,873
16 % $
13
17
15.4 % $
4,977
2,437
1,953
9,367
17 % $
12
16
15.2 % $
(38)
328
216
506
Total
$
8,810 $
1,063 $
Amounts in table may not total due to rounding.
(1)
Costs recorded in connection with our business optimization initiatives, primarily for employee severance.
We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal
2023 was similar to that disclosed for revenue for each geographic market. In addition, during fiscal 2023 each geographic
market’s operating income was unfavorably impacted by business optimization costs. The commentary below provides
insight into other factors affecting geographic market performance and operating income, including the impact of foreign
currency exchange rates where significant for fiscal 2023 compared with fiscal 2022:
•
•
•
North America operating income decreased as revenue growth was more than offset by higher labor costs, including an
increase in selling and other business development costs as a percentage of revenues.
Europe operating income increased due to revenue growth in local currency, partially offset by the negative impact of
foreign currency exchange rates.
Growth Markets operating income increased primarily due to higher contract profitability and revenue growth in local
currency, partially offset by the negative impact of foreign currency exchange rates.
Interest Income
Interest income for fiscal 2023 was $280 million, an increase of $235 million over fiscal 2022. The increase was primarily due
to higher interest rates.
Other Income (Expense), net
Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension
expense, as well as gains and losses associated with our investments. During fiscal 2023, Other income (expense)
increased $169 million over fiscal 2022, primarily due to higher gains on investments, partially offset by foreign currency
exchange losses. For additional information on investments, see Note 1 (Summary of Significant Accounting Policies) to our
Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Loss on Disposition of Russia Business
We recorded a loss from the disposal of our business in Russia of $96 million during fiscal 2022.
Income Tax Expense
The effective tax rate for fiscal 2023 was 23.4%, compared with 24.0% for fiscal 2022. Absent the business optimization
costs of $1,063 million and related reduction in tax expense of $247 million, and the investment gain of $253 million and
related tax expense of $9 million, our effective tax rate for fiscal 2023 was 23.9%.The slightly lower effective tax rate for fiscal
2023 was primarily due to lower tax expense from the geographic distribution of earnings, partially offset by lower tax
benefits from share-based payments. For additional information, see Note 11 (Income Taxes) to our Consolidated Financial
Statements under Item 8, “Financial Statements and Supplementary Data.”
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity
interest that some current and former members of Accenture Leadership and their permitted transferees have in our
Accenture Canada Holdings Inc. subsidiary. See “Business—Organizational Structure.” Noncontrolling interests also includes
amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to
Accenture plc represents the income attributable to the shareholders of Accenture plc.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
42
Earnings Per Share
Diluted earnings per share were $10.77 for fiscal 2023, compared with $10.71 for fiscal 2022. The $816 million of business
optimization costs, net of related taxes, decreased diluted earnings per share by $1.28 and the $244 million investment gain,
net of related taxes, increased diluted earnings per share by $0.38 for fiscal 2023. Excluding these impacts, diluted earnings
per share were $11.67 for fiscal 2023. For information regarding our earnings per share calculations, see Note 3 (Earnings
Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
The increase in diluted earnings per share is due to the following factors:
Earnings Per Share
FY22 As Reported
Higher revenue and operating results
Higher non-operating income (excluding loss on disposition of Russia business)
Loss on disposition of Russia business recorded in fiscal 2022
Lower share count
Higher effective tax rate (excluding loss on disposition of Russia business)
Higher net income attributable to noncontrolling interests
FY23 As Adjusted
Gain on an investment, net of tax
Business optimization costs
FY23 As Reported
Fiscal 2023
$
10.71
0.60
0.18
0.15
0.08
(0.02)
(0.03)
11.67
0.38
(1.28)
10.77
$
$
Results of Operations for Fiscal 2022 Compared to Fiscal 2021
Our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 includes a discussion and analysis of our
financial condition and results of operations for the year ended August 31, 2021 in Item 7 of Part II, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
43
Liquidity and Capital Resources
Our primary sources of liquidity are cash flows from operations, available cash reserves and debt capacity available under
various credit facilities. We could raise additional funds through other public or private debt or equity financings. We may use
our available or additional funds to, among other things:
•
•
•
•
facilitate purchases, redemptions and exchanges of shares and pay dividends;
acquire complementary businesses or technologies;
take advantage of opportunities, including more rapid expansion; or
develop new services and solutions.
As of August 31, 2023, Cash and cash equivalents were $9.0 billion, compared with $7.9 billion as of August 31, 2022.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are
summarized in the following table:
(in millions of U.S. dollars)
Net cash provided by (used in):
Operating activities
Investing activities
Financing activities
Effect of exchange rate changes on cash and cash equivalents
Fiscal
2023
2022
Change
$
9,524 $
9,541 $
(2,622)
(5,645)
(101)
(4,261)
(5,311)
(248)
(17)
1,638
(334)
147
1,434
Net increase (decrease) in cash and cash equivalents
$
1,155 $
(278) $
Amounts in table may not total due to rounding.
Operating activities: The $17 million decrease in operating cash flows were primarily due to higher spending on certain
compensation payments, partially offset by higher collections on net client balances (receivables from clients, contract assets
and deferred revenues).
Investing activities: The $1,638 million decrease in cash used was primarily due to lower spending on business acquisitions
and higher proceeds from the sale of businesses and investments. For additional information, see Note 6 (Business
Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and
Supplementary Data.”
Financing activities: The $334 million increase in cash used was primarily due to an increase in cash dividends paid as well
as an increase in the net purchase of shares, partially offset by increases in net proceeds from share issuances and net
proceeds from borrowings. For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial
Statements under Item 8, “Financial Statements and Supplementary Data.”
We believe that our current and longer-term working capital, investments and other general corporate funding requirements
will be satisfied for the next twelve months and thereafter through cash flows from operations and, to the extent necessary,
from our borrowing facilities and future financial market activities.
Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free
flow of funds. In addition, domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier
subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.
Share Purchases and Redemptions
We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal
2024. The number of shares ultimately repurchased under our open-market share purchase program may vary depending on
numerous factors, including, without limitation, share price and other market conditions, our ongoing capital allocation
planning, the levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic and/
or business conditions, and board and management discretion. Additionally, as these factors may change over the course of
the year, the amount of share repurchase activity during any particular period cannot be predicted and may fluctuate from
time to time. Share repurchases may be made from time to time through open-market purchases, in respect of purchases
and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by
other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice.
For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8,
“Financial Statements and Supplementary Data.”
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
44
Subsequent Events
See Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and
Supplementary Data.”
Obligations and Commitments
As of August 31, 2023, we had commitments of $3.7 billion related to cloud hosting arrangements, software subscriptions,
information technology services and other obligations in the ordinary course of business that we cannot cancel or where we
would be required to pay a termination fee in the event of cancellation. Payments under these commitments are estimated to
be made as follows:
(in millions of U.S. dollars)
Less than 1 year
1-3 years
3-5 years
More than 5 years
Total
$
$
Payments (1)
973
1,382
1,186
137
3,678
(1)
Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
For information about borrowing facilities and leases, see Note 10 (Borrowings and Indebtedness) and Note 8 (Leases) to
our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.”
Off-Balance Sheet Arrangements
In the normal course of business and in conjunction with some client engagements, we have entered into contractual
arrangements through which we may be obligated to indemnify clients with respect to certain matters. To date, we have not
been required to make any significant payment under any of these arrangements. For further discussion of these
transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8,
“Financial Statements and Supplementary Data.”
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
45
Item 7A. Quantitative and Qualitative
Disclosures About Market Risk
All of our market risk sensitive instruments were entered into for purposes other than trading.
Foreign Currency Risk
We are exposed to foreign currency risk in the ordinary course of business. We hedge material cash flow exposures when
feasible using forward contracts. These instruments are subject to fluctuations in foreign currency exchange rates and credit
risk. Credit risk is managed through careful selection and ongoing evaluation of the financial institutions utilized as
counterparties.
Certain of these hedge positions are undesignated hedges of balance sheet exposures such as intercompany loans and
typically have maturities of less than one year. These hedges, the most significant of which are U.S. dollar/Indian rupee, U.S.
dollar/Japanese yen, U.S. dollar/Euro, U.S. dollar/Swiss franc, U.S. dollar/Australian dollar, U.S. dollar/Chinese yuan, U.S.
dollar/U.K. pound and U.S. dollar/Philippine peso, are intended to offset remeasurement of the underlying assets and
liabilities. Changes in the fair value of these derivatives are recorded in Other income (expense), net in the Consolidated
Income Statements. Additionally, we have hedge positions that are designated cash flow hedges of certain intercompany
charges relating to our global delivery model. These hedges, the most significant of which are U.S. dollar/Indian rupee, U.S.
dollar/Philippine peso, Euro/Indian rupee and U.K. pound/Indian rupee, typically have maturities not exceeding three years
and are intended to partially offset the impact of foreign currency movements on future costs relating to our global delivery
resources. For additional information, see Note 9 (Financial Instruments) to our Consolidated Financial Statements under
Item 8, “Financial Statements and Supplementary Data.”
For designated cash flow hedges, gains and losses currently recorded in Accumulated other comprehensive loss are
expected to be reclassified into earnings at the time when certain anticipated intercompany charges are accrued as Cost of
services. As of August 31, 2023, it was anticipated that approximately $3 million of net gains, net of tax, currently recorded in
Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.
We use sensitivity analysis to determine the effects that market foreign currency exchange rate fluctuations may have on the
fair value of our hedge portfolio. The sensitivity of the hedge portfolio is computed based on the market value of future cash
flows as affected by changes in exchange rates. This sensitivity analysis represents the hypothetical changes in value of the
hedge position and does not reflect the offsetting gain or loss on the underlying exposure. A 10% change in the levels of
foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with
all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately
$856 million and $693 million as of August 31, 2023 and 2022, respectively.
Interest Rate Risk
The interest rate risk associated with our borrowing and investing activities as of August 31, 2023 is not material in relation to
our consolidated financial position, results of operations or cash flows. While we may do so in the future, we have not used
derivative financial instruments to alter the interest rate characteristics of our investment holdings or debt instruments.
Equity Investment Risk
Our non-marketable and marketable equity securities are subject to a wide variety of market-related risks that could
substantially reduce or increase the fair value of our investments.
Our non-marketable equity securities are investments in privately held companies which are often in a start-up or
development stage, which is inherently risky. The technologies or products these companies have under development are
typically in the early stages and may never materialize, which could result in a loss of a substantial part of our investment in
these companies. The evaluations of privately held companies are based on information that we request from these
companies, which is not subject to the same disclosure regulations as U.S. publicly traded companies, and as such, the
basis for these evaluations is subject to the timing and accuracy of the data received from these companies. We have
minimal exposure on our long-term investments in privately held companies as these investments were not material in
relation to our consolidated financial position, results of operations or cash flows as of August 31, 2023.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
46
We record our marketable equity securities not accounted for under the equity method at fair value based on readily
determinable market values.
The carrying values of our investments accounted for under the equity method generally do not fluctuate based on market
price changes; however, these investments could be impaired if the carrying value exceeds the fair value.
Item 8. Financial Statements and
Supplementary Data
See the Index to Consolidated Financial Statements and financial statements commencing on page F-1, which are
incorporated herein by reference.
Item 9. Changes in and Disagreements With
Accountants on Accounting and Financial
Disclosure
None.
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and our principal financial officer, has evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end
of the period covered by this report. Any controls and procedures, no matter how well designed and operated, can provide
only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the principal executive
officer and the principal financial officer of Accenture plc have concluded that, as of the end of the period covered by this
report, our disclosure controls and procedures were effective at the reasonable assurance level.
Management’s Annual Report on Internal Control over Financial
Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting to provide
reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting
includes those policies and procedures that:
i.
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and
dispositions of our assets;
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 9A. Controls and Procedures
47
ii.
provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are
being made only in accordance with authorizations of management and our Board of Directors; and
iii. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of
our assets that could have a material effect on our financial statements.
Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
due to changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of our management, including our principal executive officer and principal
financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting using the
criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—
Integrated Framework (2013). Based on its evaluation, our management concluded that our internal control over financial
reporting was effective as of the end of the fiscal year covered by this Annual Report on Form 10-K.
KPMG LLP, an independent registered public accounting firm, has audited the Consolidated Financial Statements included in
this Annual Report on Form 10-K and, as part of their audit, has issued its attestation report, included herein, on the
effectiveness of our internal control over financial reporting. See “Report of Independent Registered Public Accounting Firm”
on page F-2.
Changes in Internal Control over Financial Reporting
There has been no change in our internal control over financial reporting that occurred during the fourth quarter of fiscal 2023
that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information
Trading Arrangements
The table below summarizes the terms of trading arrangements adopted or terminated by our executive officers or directors
during the fourth quarter of fiscal 2023. All of the trading arrangements listed below are intended to satisfy the affirmative
defense conditions of Rule 10b5-1(c).
Name
Title
Julie Sweet
Manish Sharma
Chair and chief
executive officer
Chief executive officer—
North America
Date of
Adoption or
Termination
Adopted on
July 31, 2023
Adopted on
July 31, 2023
Duration of Plan (1)
October 29, 2023 -
July 24, 2024
October 29, 2023 -
July 24, 2024
Aggregate number of Class A ordinary
shares to be sold pursuant to the
trading agreement (2)
45,000
9,000
(1)
(2)
Each plan will expire on the earlier of the expiration date or the completion of all transactions under the trading arrangement.
The actual number of shares sold under each plan will depend on the vesting of certain performance-based equity awards and the number
of shares withheld by Accenture to satisfy its income tax withholding obligations, and may vary from the approximate number provided.
Item 9C. Disclosure Regarding Foreign
Jurisdictions that Prevent Inspections
None.
Table of Contents
ACCENTURE 2023 FORM 10-K
Part III
Part III
48
Item 10. Directors, Executive Officers and
Corporate Governance
There have been no material changes to the procedures by which security holders may recommend nominees to our Board
of Directors from those described in the proxy statement for our 2023 Annual General Meeting of Shareholders filed with the
SEC on December 13, 2022.
Information about our executive officers is contained in the discussion entitled “Information about our Executive Officers” in
Part I of this Form 10-K. The remaining information called for by Item 10 will be included in the sections captioned
“Appointment of Directors,” “Corporate Governance” and “Beneficial Ownership” included in the definitive proxy statement
relating to the 2024 Annual General Meeting of Shareholders of Accenture plc to be held on January 31, 2024 and is
incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to Regulation
14A not later than 120 days after the end of our 2023 fiscal year covered by this Form 10-K.
Item 11. Executive Compensation
The information called for by Item 11 will be included in the sections captioned “Executive Compensation” and “Director
Compensation” included in the definitive proxy statement relating to the 2024 Annual General Meeting of Shareholders of
Accenture plc to be held on January 31, 2024 and is incorporated herein by reference. Accenture plc will file such definitive
proxy statement with the SEC pursuant to Regulation 14A not later than 120 days after the end of our 2023 fiscal year
covered by this Form 10-K.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
49
Item 12. Security Ownership of Certain
Beneficial Owners and Management and
Related Shareholder Matters
Securities Authorized for Issuance under Equity Compensation Plans
The following table sets forth, as of August 31, 2023, certain information related to our compensation plans under which
Accenture plc Class A ordinary shares may be issued.
Number of Shares to be
Issued Upon Exercise
of Outstanding Options,
Warrants and Rights
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights (3)
Number of Shares Remaining
Available for Future Issuance
Under Equity Compensation
Plans (Excluding Securities
Reflected in 1st Column)
Plan Category
Equity compensation plans
approved by shareholders:
2001 Share Incentive Plan
Amended and Restated 2010
Share Incentive Plan
Amended and Restated 2010
Employee Share Purchase Plan
Equity compensation plans not
approved by shareholders
Total
9,265 (1)
$
16,061,394 (2)
—
—
16,070,659
—
—
N/A
N/A
—
19,452,323
10,480,686
—
29,933,009
(1)
(2)
(3)
Consists of 9,265 restricted share units.
Consists of 16,061,394 restricted share units, with performance-based awards assuming maximum performance.
Restricted share units have no exercise price.
The remaining information called for by Item 12 will be included in the section captioned “Beneficial Ownership” included in
the definitive proxy statement relating to the 2024 Annual General Meeting of Shareholders of Accenture plc to be held on
January 31, 2024 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC
pursuant to Regulation 14A not later than 120 days after the end of our 2023 fiscal year covered by this Form 10-K.
Item 13. Certain Relationships and Related
Transactions, and Director Independence
The information called for by Item 13 will be included in the section captioned “Corporate Governance” included in the
definitive proxy statement relating to the 2024 Annual General Meeting of Shareholders of Accenture plc to be held on
January 31, 2024 and is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC
pursuant to Regulation 14A not later than 120 days after the end of our 2023 fiscal year covered by this Form 10-K.
Table of Contents
ACCENTURE 2023 FORM 10-K
Item 14. Principal Accountant Fees And Services
50
Item 14. Principal Accountant Fees And
Services
The information called for by Item 14 will be included in the section captioned “Audit” included in the definitive proxy
statement relating to the 2024 Annual General Meeting of Shareholders of Accenture plc to be held on January 31, 2024 and
is incorporated herein by reference. Accenture plc will file such definitive proxy statement with the SEC pursuant to
Regulation 14A not later than 120 days after the end of our 2023 fiscal year covered by this Form 10-K.
Table of Contents
ACCENTURE 2023 FORM 10-K
Part IV
Part IV
51
Item 15. Exhibits, Financial Statement
Schedules
(a) List of documents filed as part of this report:
1. Financial Statements as of August 31, 2023 and August 31, 2022 and for the three years ended August 31, 2023—
Included in Part II of this Form 10-K:
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Comprehensive Income
Consolidated Shareholders’ Equity Statements
Consolidated Cash Flows Statements
Notes to Consolidated Financial Statements
2. Financial Statement Schedules:
None
3. Exhibit Index:
Exhibit
Number
3.1
3.2
4.1
10.1
10.2
10.3*
10.4
10.5*
10.6*
10.7*
10.8
10.9
Exhibit
Amended and Restated Memorandum and Articles of Association of Accenture plc (incorporated by reference to Exhibit 3.1 to Accenture
plc’s 8-K filed on February 7, 2018)
Certificate of Incorporation of Accenture plc (incorporated by reference to Exhibit 3.2 to Accenture plc’s 8-K12B filed on September 1, 2009
(the “8-K12B”))
Description of Accenture plc’s Securities (filed herewith)
Form of Voting Agreement, dated as of April 18, 2001, among Accenture Ltd and the covered persons party thereto as amended and
restated as of February 3, 2005 (incorporated by reference to Exhibit 9.1 to the Accenture Ltd February 28, 2005 10-Q (File No.
001-16565))
Assumption Agreement of the Amended and Restated Voting Agreement, dated September 1, 2009 (incorporated by reference to Exhibit
10.4 to the 8-K12B)
Form of Non-Competition Agreement, dated as of April 18, 2001, among Accenture Ltd and certain employees (incorporated by reference
to Exhibit 10.2 to the Accenture Ltd Registration Statement on Form S-1 (File No. 333-59194) filed on April 19, 2001)
Assumption and General Amendment Agreement between Accenture plc and Accenture Ltd, dated September 1, 2009 (incorporated by
reference to Exhibit 10.1 to the 8-K12B)
2001 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the Accenture Ltd Registration Statement on Form S-1/A (File No.
333-59194) filed on July 12, 2001)
Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.1 to Accenture plc’s 8-K filed on
January 26, 2022)
Amended and Restated 2010 Employee Share Purchase Plan (incorporated by reference to Exhibit 10.2 to Accenture plc’s 8-K filed on
February 3, 2016)
Form of Support Agreement, dated as of May 23, 2001, between Accenture Ltd and Accenture Canada Holdings Inc. (incorporated by
reference to Exhibit 10.9 to the Accenture Ltd Registration Statement on Form S-1/A (the “July 2, 2001 Form S-1/A”))
First Supplemental Agreement to Support Agreement among Accenture plc, Accenture Ltd and Accenture Canada Holdings Inc., dated
September 1, 2009 (incorporated by reference to Exhibit 10.2 to the 8-K12B)
10.10*
Form of Employment Agreement of executive officers in the United States (incorporated by reference to Exhibit 10.3 to the February 28,
2013 10-Q)
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ACCENTURE 2023 FORM 10-K
52
10.11*
2012 Employment Contract between Accenture SAS and Jean-Marc Ollagnier, together with 2017 and 2022 Addenda (incorporated by
reference to Exhibit 10.12 to the August 31, 2022 10-K)
10.12*
Retirement Agreement between Accenture LLP and Jimmy Etheredge (filed herewith)
10.13
10.14
10.15
10.16
10.17*
10.18*
10.19*
10.20*
10.21*
10.22*
10.23*
10.24*
10.25*
10.26*
10.27*
10.28*
10.29*
10.30*
10.31*
Form of Articles of Association of Accenture Canada Holdings Inc. (incorporated by reference to Exhibit 10.11 to the July 2, 2001 Form S-1/
A)
Articles of Amendment to Articles of Association of Accenture Canada Holdings Inc. (incorporated by reference to Exhibit 10.21 to the
August 31, 2013 10-K)
Form of Exchange Trust Agreement by and between Accenture Ltd and Accenture Canada Holdings Inc. and CIBC Mellon Trust Company,
made as of May 23, 2001 (incorporated by reference to Exhibit 10.12 to the July 2, 2001 Form S-1/A)
First Supplemental Agreement to Exchange Trust Agreement among Accenture plc, Accenture Ltd, Accenture Canada Holdings Inc. and
Accenture Inc., dated September 1, 2009 (incorporated by reference to Exhibit 10.3 to the 8-K12B)
2015 Sub-plan for Restricted Share Units Granted in France, as amended (incorporated by reference to Exhibit 10.1 to the February 28,
2022 10-Q )
Form of Director Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan
(incorporated by reference to Exhibit 10.1 to the February 28, 2023 10-Q)
Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc
2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the February 28, 2021 10-Q)
Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc
2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2022 10-Q)
Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc
2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the February 28, 2023 10-Q)
Form of Fiscal 2021 Key Executive Performance-Based Award Restricted Share Unit Agreement in France (incorporated by reference to
Exhibit 10.6 to the February 28, 2021 10-Q)
Form of Fiscal 2022 Key Executive Performance-Based Award Restricted Share Unit Agreement in France (incorporated by reference to
Exhibit 10.7 to the February 28, 2022 10-Q)
Form of Fiscal 2023 Key Executive Performance-Based Award Restricted Share Unit Agreement in France (incorporated by reference to
Exhibit 10.6 to the February 28, 2023 10-Q)
Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated
Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2021 10-Q)
Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated
Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.4 to the February 28, 2022 10-Q)
Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to the Amended and Restated
Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2023 10-Q)
Form of Fiscal 2023 Accenture Leadership Performance Equity Award Restricted Share Unit Agreement in France (incorporated by
reference to Exhibit 10.7 to the February 28, 2023 10-Q)
Form of Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement pursuant to the Amended and Restated
Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.5 to the February 28, 2022 10-Q)
Form of Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement pursuant to the Amended and Restated
Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.4 to the February 28, 2023 10-Q)
Form of CEO Discretionary Grant Restricted Share Unit Agreement pursuant to the Amended and Restated Accenture plc 2010 Share
Incentive Plan (incorporated by reference to Exhibit 10.5 to the February 28, 2023 10-Q)
10.32*
Accenture LLP Leadership Separation Benefits Plan (filed herewith)
10.33*
Description of Global Annual Bonus Plan (incorporated by reference to Exhibit 10.9 to the February 28, 2022 10-Q)
10.34*
Form of Indemnification Agreement, between Accenture Inc. and the indemnitee party thereto (incorporated by reference to Exhibit 10.28
to the August 31, 2018 10-K)
21.1
23.1
23.2
24.1
31.1
Subsidiaries of the Registrant (filed herewith)
Consent of KPMG LLP (filed herewith)
Consent of KPMG LLP related to the Accenture plc 2010 Employee Share Purchase Plan (filed herewith)
Power of Attorney (included on the signature page hereto)
Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
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ACCENTURE 2023 FORM 10-K
53
31.2
32.1
32.2
Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002 (furnished herewith)
Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002 (furnished herewith)
97.1*
Mandatory Recoupment Policy (filed herewith)
99.1
Amended and Restated Accenture plc 2010 Employee Share Purchase Plan Financial Statements (filed herewith)
101
104
The following financial information from Accenture plc’s Annual Report on Form 10-K for the fiscal year ended August 31, 2023, formatted
in Inline XBRL: (i) Consolidated Balance Sheets as of August 31, 2023 and August 31, 2022, (ii) Consolidated Income Statements for the
years ended August 31, 2023, 2022 and 2021, (iii) Consolidated Statements of Comprehensive Income for the years ended August 31,
2023, 2022 and 2021, (iv) Consolidated Shareholders’ Equity Statements for the years ended August 31, 2023, 2022 and 2021, (v)
Consolidated Cash Flows Statements for the years ended August 31, 2023, 2022 and 2021, and (vi) the Notes to Consolidated Financial
Statements
The cover page from Accenture plc’s Annual Report on Form 10-K for the year ended August 31, 2023, formatted in Inline XBRL (included
as Exhibit 101)
(*)
Indicates management contract or compensatory plan or arrangement.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other
disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely
on them for that purpose. In particular, any representations and warranties made by us in these agreements or other
documents were made solely within the specific context of the relevant agreement or document and may not describe the
actual state of affairs as of the date they were made or at any other time.
Item 16. Form 10-K Summary
Not applicable.
Table of Contents
ACCENTURE 2023 FORM 10-K
Signatures
54
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf on October 12, 2023 by the undersigned, thereunto duly authorized.
ACCENTURE PLC
By:
/s/ JULIE SWEET
Name: Julie Sweet
Title: Chief Executive Officer
Power of Attorney
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and
appoints Julie Sweet, KC McClure and Joel Unruch, and each of them, as his or her true and lawful attorneys-in-fact and
agents, with power to act with or without the others and with full power of substitution and resubstitution, to do any and all
acts and things and to execute any and all instruments which said attorneys and agents and each of them may deem
necessary or desirable to enable the registrant to comply with the U.S. Securities Exchange Act of 1934, as amended, and
any rules, regulations and requirements of the U.S. Securities and Exchange Commission thereunder in connection with the
registrant’s Annual Report on Form 10-K for the fiscal year ended August 31, 2023 (the “Annual Report”), including
specifically, but without limiting the generality of the foregoing, power and authority to sign the name of the registrant and the
name of the undersigned, individually and in his or her capacity as a director or officer of the registrant, to the Annual Report
as filed with the U.S. Securities and Exchange Commission, to any and all amendments thereto, and to any and all
instruments or documents filed as part thereof or in connection therewith; and each of the undersigned hereby ratifies and
confirms all that said attorneys and agents and each of them shall do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on October 12, 2023
by the following persons on behalf of the registrant and in the capacities indicated.
Signature
Title
/s/ JULIE SWEET
Julie Sweet
/s/ KC MCCLURE
KC McClure
/s/ MELISSA A. BURGUM
Melissa A. Burgum
/s/ GILLES C. PÉLISSON
Gilles C. Pélisson
/s/ JAIME ARDILA
Jaime Ardila
Chief Executive Officer, Chair of the Board and Director
(principal executive officer)
Chief Financial Officer
(principal financial officer)
Chief Accounting Officer
(principal accounting officer)
Lead Director
Director
Table of Contents
ACCENTURE 2023 FORM 10-K
Signatures
55
/s/ ALAN JOPE
Alan Jope
/s/ NANCY MCKINSTRY
Nancy McKinstry
/s/ BETH E. MOONEY
Beth E. Mooney
/s/ PAULA A. PRICE
Paula A. Price
/s/ VENKATA S.M. RENDUCHINTALA
Venkata S.M. Renduchintala
/s/ ARUN SARIN
Arun Sarin
/s/ TRACEY T. TRAVIS
Tracey T. Travis
Director
Director
Director
Director
Director
Director
Director
Table of Contents
ACCENTURE 2023 FORM 10-K
Index to Consolidated Financial Statements
F-1
Accenture plc
Index to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (Auditor Firm ID: 185)
Consolidated Financial Statements as of August 31, 2023 and 2022 and for the years ended August 31, 2023,
2022 and 2021:
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Comprehensive Income
Consolidated Shareholders’ Equity Statements
Consolidated Cash Flows Statements
Notes to Consolidated Financial Statements
Page
F-2
F-5
F-6
F-7
F-8
F-11
F-12
1
Table of Contents
ACCENTURE 2023 FORM 10-K
Report of Independent Registered Public Accounting Firm
F-2
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Accenture plc:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Accenture plc and subsidiaries (the Company) as of
August 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, shareholders’ equity, and
cash flows for each of the years in the three-year period ended August 31, 2023, and the related notes (collectively, the
consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of August
31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of August 31, 2023 and 2022, and the results of its operations and its cash flows for each of the
years in the three-year period ended August 31, 2023, in conformity with U.S. generally accepted accounting principles. Also
in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of
August 31, 2023 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting,
included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility
is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal
control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in
all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as
we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Report of Independent Registered Public Accounting Firm
F-3
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial
statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts
or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the
consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Estimated costs to complete certain technology integration consulting services contracts
As discussed in Notes 1 and 2 to the consolidated financial statements, revenues from contracts for technology
integration consulting services where the Company designs, builds, and implements new or enhanced system
applications and related processes for its clients are recognized over time since control of the system is transferred
continuously to the client. Generally, revenue is recognized using costs incurred to date relative to total estimated costs
at completion to measure progress toward satisfying the Company’s performance obligations, which typically occurs
over time periods ranging from six months to two years.
We identified the evaluation of estimated costs to complete certain technology integration consulting services contracts
as a critical audit matter. Subjective auditor judgment was required to evaluate the estimate of costs to complete the
contracts.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design
and tested the operating effectiveness of certain internal controls over the Company’s process for estimating costs to
complete technology integration consulting services contracts, including controls over the estimate of costs to complete
the contracts. We tested the estimated costs to complete for certain technology integration consulting services contracts
by evaluating:
•
•
•
•
the scope of the work and timing of delivery for consistency with the underlying contractual terms;
the estimated costs to complete in relation to progress toward satisfying the Company’s performance obligations,
based on internal and customer-facing information;
changes to estimated costs, if any, including the amount and timing of the change based on internal information or
contractual changes; and
actual costs incurred subsequent to the balance sheet date to assess if they were consistent with the estimate for
that time period.
We evaluated the Company’s ability to estimate costs by comparing estimates developed at contract inception to actual
costs ultimately incurred to satisfy the performance obligation.
Unrecognized tax benefits
As discussed in Note 11 to the consolidated financial statements, the Company has $1,744 million of unrecognized tax
benefits as of August 31, 2023. As discussed in Note 1 to the consolidated financial statements, the Company
recognizes tax positions when it believes such positions are more likely than not of being sustained if challenged.
Recognized tax positions are measured at the largest amount of benefit greater than 50 percent likely of being realized.
The Company uses estimates and assumptions in determining the amount of unrecognized tax benefits.
We identified the evaluation of the Company’s unrecognized tax benefits related to transfer pricing and certain other
intercompany transactions as a critical audit matter. Complex auditor judgment was required in evaluating the
Company’s interpretation of tax law and its analysis of the recognition and measurement of its tax positions.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design
and tested the operating effectiveness of certain internal controls over the Company’s unrecognized tax benefits
process, including controls over transfer pricing and certain other intercompany transactions. We involved tax and
transfer pricing professionals with specialized skills and knowledge, who assisted in:
•
evaluating the Company’s interpretation of tax laws and income tax consequences of intercompany transactions,
including internal restructurings and intra-entity transfers of assets;
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ACCENTURE 2023 FORM 10-K
Report of Independent Registered Public Accounting Firm
F-4
•
•
•
•
assessing transfer pricing studies for compliance with applicable laws and regulations;
analyzing the Company’s tax positions, including the methodology over the measurement of unrecognized tax
benefits related to transfer pricing;
evaluating the Company’s determination of unrecognized tax benefits, including the associated effect in other
jurisdictions; and
inspecting settlements with applicable taxing authorities.
In addition, we evaluated the Company’s ability to estimate its unrecognized tax benefits by comparing historical
unrecognized tax benefits to actual results upon the conclusion of examinations by applicable taxing authorities.
/s/ KPMG LLP
We have served as the Company’s auditor since 2002.
Chicago, Illinois
October 12, 2023
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars, except share and per share amounts)
F-5
Consolidated Balance Sheets
August 31, 2023 and 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short-term investments
Receivables and contract assets
Other current assets
Total current assets
NON-CURRENT ASSETS:
Contract assets
Investments
Property and equipment, net
Lease assets
Goodwill
Deferred contract costs
Deferred tax assets
Other non-current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings
Accounts payable
Deferred revenues
Accrued payroll and related benefits
Income taxes payable
Lease liabilities
Other accrued liabilities
Total current liabilities
NON-CURRENT LIABILITIES:
Long-term debt
Deferred revenues
Retirement obligation
Deferred tax liabilities
Income taxes payable
Lease liabilities
Other non-current liabilities
Total non-current liabilities
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Ordinary shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of
August 31, 2023 and August 31, 2022
Class A ordinary shares, par value $0.0000225 per share, 20,000,000,000 shares authorized,
664,616,285 and 664,561,282 shares issued as of August 31, 2023 and August 31, 2022,
respectively
Class X ordinary shares, par value $0.0000225 per share, 1,000,000,000 shares authorized,
325,438 and 500,837 shares issued and outstanding as of August 31, 2023 and August 31,
2022, respectively
Restricted share units
Additional paid-in capital
Treasury shares, at cost: Ordinary, 40,000 shares as of August 31, 2023 and August 31, 2022;
Class A ordinary, 36,351,137 and 33,393,703 shares as of August 31, 2023 and August 31,
2022, respectively
Retained earnings
Accumulated other comprehensive loss
Total Accenture plc shareholders’ equity
Noncontrolling interests
Total shareholders’ equity
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
The accompanying Notes are an integral part of these Consolidated Financial Statements.
August 31,
2023
August 31,
2022
$ 9,045,032 $ 7,889,833
3,973
11,776,775
1,940,290
21,610,871
4,575
12,227,186
2,105,138
23,381,931
46,844
106,994
317,972
197,443
1,659,140
1,530,007
3,018,535
2,637,479
13,133,293
15,573,003
807,940
851,972
4,001,200
4,154,878
2,667,595
2,811,598
27,863,374
25,652,519
$ 51,245,305 $ 47,263,390
104,810 $
$
2,491,173
4,907,152
7,506,030
720,778
690,417
1,588,678
18,009,038
9,175
2,559,485
4,478,048
7,611,794
646,471
707,598
1,510,925
17,523,496
43,093
653,954
1,595,638
395,280
1,313,971
2,310,714
465,024
6,777,674
45,893
712,715
1,692,152
318,584
1,198,139
2,563,090
462,233
6,992,806
57
15
57
15
—
2,403,374
12,778,782
—
2,091,382
10,679,180
(7,062,512) (6,678,037)
19,316,224
18,203,842
(1,743,101) (2,190,342)
22,106,097
25,692,839
640,991
765,754
26,458,593
22,747,088
$ 51,245,305 $ 47,263,390
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars, except share and per share amounts)
F-6
Consolidated Income Statements
For the Years Ended August 31, 2023, 2022 and 2021
REVENUES:
Revenues
OPERATING EXPENSES:
Cost of services
Sales and marketing
General and administrative costs
Business optimization costs
Total operating expenses
OPERATING INCOME
Interest income
Interest expense
Other income (expense), net
Loss on disposition of Russia business
INCOME BEFORE INCOME TAXES
Income tax expense
NET INCOME
Net income attributable to noncontrolling interests in Accenture Canada Holdings
Inc.
Net income attributable to noncontrolling interests – other
2023
2022
2021
$ 64,111,745 $ 61,594,305 $ 50,533,389
43,380,138
41,892,766
34,169,261
6,582,629
4,275,943
1,063,146
6,108,401
4,225,957
—
5,288,237
3,454,362
—
55,301,856
52,227,124
42,911,860
8,809,889
9,367,181
7,621,529
280,409
(47,525)
96,559
—
9,139,332
2,135,802
7,003,530
45,133
(47,320)
(72,533)
(96,294)
9,196,167
2,207,207
6,988,960
33,365
(59,492)
165,714
—
7,761,116
1,770,571
5,990,545
(7,204)
(7,348)
(124,769)
(104,443)
(6,539)
(77,197)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC
$ 6,871,557 $ 6,877,169 $ 5,906,809
Weighted average Class A ordinary shares:
Basic
Diluted
Earnings per Class A ordinary share:
Basic
Diluted
Cash dividends per share
630,608,186
632,762,710
634,745,073
638,591,616
642,839,181
645,909,042
$
$
$
10.90 $
10.77 $
4.48 $
10.87 $
10.71 $
3.88 $
9.31
9.16
3.52
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars)
F-7
Consolidated Statements of Comprehensive Income
For the Years Ended August 31, 2023, 2022 and 2021
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation
Defined benefit plans
Cash flow hedges
Investments
2023
2022
2021
$ 7,003,530 $ 6,988,960 $ 5,990,545
341,688
122,268
(877,256)
211,187
(16,715)
(104,776)
—
—
35,215
55,265
51,811
49
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE PLC
Other comprehensive income (loss) attributable to noncontrolling interests
447,241
(770,845)
142,340
8,489
(20,186)
1,117
COMPREHENSIVE INCOME
$ 7,459,260 $ 6,197,929 $ 6,134,002
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE PLC
$ 7,318,798 $ 6,106,324 $ 6,049,149
Comprehensive income attributable to noncontrolling interests
COMPREHENSIVE INCOME
140,462
84,853
$ 7,459,260 $ 6,197,929 $ 6,134,002
91,605
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars and share amounts)
Consolidated Shareholders’ Equity Statements
For the Years Ended August 31, 2023, 2022 and 2021
F-8
Ordinary
Shares
Class A
Ordinary
Shares
Class X
Ordinary
Shares
No.
Shares
$
$
No.
Shares
$
No.
Shares
Restricted
Share
Units
Additional
Paid-in
Capital
Treasury Shares
$
No.
Shares
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Accenture plc
Shareholders’
Equity
Noncontrolling
Interests
Total
Shareholders’
Equity
Balance as of August 31, 2020
$ 57
40 $ 15
658,549 $ —
528 $ 1,585,302 $ 7,167,227 $ (2,565,761)
(24,423) $ 12,375,533 $
(1,561,837) $
17,000,536 $
498,637 $
17,499,173
Net income
Other comprehensive income
(loss)
Purchases of Class A shares
Cancellation of treasury shares
Share-based compensation
expense
Purchases/redemptions of
Accenture Canada Holdings
Inc. exchangeable shares and
Class X shares
Issuances of Class A ordinary
shares for employee share
programs
Dividends
Other, net
(10,263)
(255,809)
2,105,666
10,263
(1,849,857)
1,253,679
89,272
(15)
(9,377)
—
1,342,951
(9,377)
—
1,342,951
(9,377)
3,622
(3,693,747)
(13,957)
(3,690,125)
(3,622)
(3,693,747)
5,906,809
142,340
5,906,809
142,340
83,736
1,117
5,990,545
143,457
8,305
(1,176,967)
1,617,702
745,351
3,572
(121,343)
1,064,743
1,032
1,065,775
88,770
5,201
(2,322,394)
(2,233,624)
5,201
(2,470)
(10,770)
(2,236,094)
(5,569)
Balance as of August 31, 2021
$ 57
40 $ 15
656,591 $ —
513 $ 1,750,784 $ 8,617,838 $ (3,408,491)
(24,545) $ 13,988,748 $
(1,419,497) $
19,529,454 $
567,660 $
20,097,114
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars and share amounts)
Consolidated Shareholders’ Equity Statements — (continued)
For the Years Ended August 31, 2023, 2022 and 2021
F-9
Ordinary
Shares
Class A
Ordinary
Shares
Class X
Ordinary
Shares
No.
Shares
$
$
No.
Shares
$
No.
Shares
Restricted
Share
Units
Additional
Paid-in
Capital
Treasury Shares
$
No.
Shares
3,954
(4,111,266)
(12,181)
1,571,059
108,730
(12)
(5,112)
Retained
Earnings
6,877,169
Accumulated
Other
Comprehensive
Loss
Total
Accenture plc
Shareholders’
Equity
(770,845)
6,877,169
(770,845)
(4,107,312)
1,679,789
(5,112)
Noncontrolling
Interests
Total
Shareholders’
Equity
111,791
(20,186)
6,988,960
(791,031)
(3,954)
(4,111,266)
1,679,789
(5,112)
7,970
(1,333,963)
1,943,912
841,720
3,292
(103,889)
1,347,780
1,284
1,349,064
103,502
9,858
(2,558,186)
(2,454,684)
9,858
(2,622)
(12,982)
(2,457,306)
(3,124)
Net income
Other comprehensive income
(loss)
Purchases of Class A shares
Share-based compensation
expense
Purchases/redemptions of
Accenture Canada Holdings
Inc. exchangeable shares and
Class X shares
Issuances of Class A shares for
employee share programs
Dividends
Other, net
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
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars and share amounts)
Consolidated Shareholders’ Equity Statements — (continued)
For the Years Ended August 31, 2023, 2022 and 2021
F-10
Ordinary
Shares
Class A
Ordinary
Shares
Class X
Ordinary
Shares
No.
Shares
$
$
No.
Shares
$
No.
Shares
Restricted
Share
Units
Additional
Paid-in
Capital
Treasury Shares
$
No.
Shares
Retained
Earnings
6,871,557
Accumulated
Other
Comprehensive
Loss
Total
Accenture plc
Shareholders’
Equity
447,241
6,871,557
447,241
Noncontrolling
Interests
131,973
8,489
Total
Shareholders’
Equity
7,003,530
455,730
3,915
(4,322,529)
(15,314)
(4,318,614)
(3,915)
(4,322,529)
(8,828)
(175,701)
2,595,281
8,828
(2,419,580)
1,790,886
122,165
(176)
(7,874)
—
1,913,051
(7,874)
—
1,913,051
(7,874)
8,883
(1,592,561)
2,151,005
1,342,773
3,529
(401,493)
1,499,724
1,345
1,501,069
113,667
6,092
(2,938,102)
(2,824,435)
6,092
(2,959)
(10,170)
(2,827,394)
(4,078)
Net income
Other comprehensive income
(loss)
Purchases of Class A shares
Cancellation of treasury shares
Share-based compensation
expense
Purchases/redemptions of
Accenture Canada Holdings
Inc. exchangeable shares and
Class X shares
Issuances of Class A shares for
employee share programs
Dividends
Other, net
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
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Consolidated Financial Statements
(In thousands of U.S. dollars)
F-11
Consolidated Cash Flows Statements
For the Years Ended August 31, 2023, 2022 and 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
Adjustments to reconcile Net income to Net cash provided by (used in)
operating activities—
Depreciation, amortization and other
Share-based compensation expense
Deferred tax expense (benefit)
Other, net
Change in assets and liabilities, net of acquisitions—
2023
2022
2021
$ 7,003,530 $ 6,988,960 $
5,990,545
2,281,085
1,913,051
(268,953)
(219,082)
2,088,216
1,679,789
(213,294)
(195,975)
1,891,242
1,342,951
60,930
(342,849)
Receivables and contract assets, current and non-current
87,669
(2,411,735)
(1,471,613)
Other current and non-current assets
Accounts payable
Deferred revenues, current and non-current
Accrued payroll and related benefits
Income taxes payable, current and non-current
Other current and non-current liabilities
(526,228)
(171,217)
159,819
(261,913)
113,251
(716,910)
374,349
648,506
1,271,999
473,313
(586,744)
(446,089)
(591,836)
825,472
554,830
1,445,010
111,795
(841,329)
Net cash provided by (used in) operating activities
9,524,268
9,541,129
8,975,148
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
Purchases of businesses and investments, net of cash acquired
Proceeds from the sale of businesses and investments, net of cash transferred
Other investing, net
(528,172)
(717,998)
(580,132)
(2,530,863)
(3,447,552)
(4,171,123)
424,387
12,178
(107,659)
12,580
413,553
27,936
Net cash provided by (used in) investing activities
(2,622,470)
(4,260,629)
(4,309,766)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares
Purchases of shares
Proceeds from (repayments of) debt, net
Cash dividends paid
Other financing, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of period
CASH AND CASH EQUIVALENTS, end of period
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid
Income taxes paid, net
1,501,069
1,349,064
1,065,775
(4,330,403)
(4,116,378)
(3,703,124)
93,258
(16,453)
(7,798)
(2,827,394)
(2,457,306)
(2,236,094)
(81,856)
(69,953)
(45,096)
(5,645,326)
(5,311,026)
(4,926,337)
(101,273)
1,155,199
(247,815)
(278,341)
13,799
(247,156)
7,889,833
8,168,174
8,415,330
$ 9,045,032 $ 7,889,833 $
8,168,174
$
46,505 $
45,970 $
36,132
$ 2,315,920 $ 1,778,922 $
1,566,753
The accompanying Notes are an integral part of these Consolidated Financial Statements.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-12
1. Summary of Significant Accounting Policies
Description of Business
Accenture is a leading global professional services company, providing a broad range of services and solutions across
Strategy & Consulting, Technology, Operations, Industry X and Song. We serve clients in three geographic markets: North
America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East). We combine our strength in
technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery
capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their
operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.
Basis of Presentation
The Consolidated Financial Statements include the accounts of Accenture plc, an Irish company, and our controlled
subsidiary companies. Accenture plc is an Irish public limited company, which operates its business through its subsidiaries.
The shares of Accenture Canada Holdings Inc. held by persons other than us are treated as noncontrolling interests in the
Consolidated Financial Statements. The noncontrolling interests were less than 1% as of August 31, 2023 and 2022,
respectively.
All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference
to “fiscal 2023” means the 12-month period that ended on August 31, 2023. All references to quarters, unless otherwise
noted, refer to the quarters of our fiscal year.
The preparation of the Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles
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 be different from those estimates.
Revenue Recognition
We account for revenue in accordance with FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606).
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of
accounting in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as
revenue when, or as, the performance obligation is satisfied. For contracts with multiple performance obligations, we allocate
the contract’s transaction price to each performance obligation based on the relative standalone selling price. The primary
method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our
expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service
based on margins for similar services sold on a standalone basis. While determining relative standalone selling price and
identifying separate performance obligations require judgment, generally relative standalone selling prices and the separate
performance obligations are readily identifiable as we sell those performance obligations unaccompanied by other
performance obligations. Contract modifications are routine in the performance of our contracts. Contracts are often modified
to account for changes in the contract specifications, requirements or duration. If a contract modification results in the
addition of performance obligations priced at a standalone selling price or if the post-modification services are distinct from
the services provided prior to the modification, the modification is accounted for separately. If the modified services are not
distinct, they are accounted for as part of the existing contract.
Our revenues are derived from contracts for managed services, technology integration consulting services and non-
technology integration consulting services. These contracts have different terms based on the scope, performance
obligations and complexity of the engagement, which frequently require us to make judgments and estimates in recognizing
revenues. We have many types of contracts, including time-and-materials contracts, fixed-price contracts, fee-per-transaction
contracts and contracts with multiple fee types.
The nature of our contracts gives rise to several types of variable consideration, including incentive fees. Many contracts
include incentives or penalties related to costs incurred, benefits produced or adherence to schedules that may increase the
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-13
variability in revenues and margins earned on such contracts. These variable amounts generally are awarded or refunded
upon achievement of or failure to achieve certain performance metrics, milestones or cost targets and can be based upon
client discretion. We include these variable fees in the estimated transaction price when there is a basis to reasonably
estimate the amount of the fee and it is not probable a significant reversal of revenue will occur. These estimates reflect the
expected value of the variable fee and are based on an assessment of our anticipated performance, historical experience
and other information available at the time.
Our performance obligations are satisfied over time as work progresses or at a point in time. The majority of our revenues
are recognized over time based on the extent of progress towards satisfying our performance obligations. The selection of
the method to measure progress towards completion requires judgment and is based on the contract and the nature of the
services to be provided.
Managed Services Contracts
Our managed services contracts typically span several years. Revenues are generally recognized on managed services
contracts over time because our clients benefit from the services as they are performed. Managed services contracts require
us to provide a series of distinct services each period over the contract term. Revenues from unit-priced contracts are
recognized as transactions are processed. When contractual billings represent an amount that corresponds directly with the
value provided to the client (e.g., time-and-materials contracts), revenues are recognized as amounts become billable in
accordance with contract terms.
Technology Integration Consulting Services
Revenues from contracts for technology integration consulting services where we design/redesign, build and implement new
or enhanced systems and related processes for our clients are recognized over time as control of the system is transferred
continuously to the client. Contracts for technology integration consulting services generally span six months to two years.
Generally, revenue, including estimated fees, is recognized using costs incurred to date relative to total estimated costs at
completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed,
which corresponds with, and thereby best depicts, the transfer of control to the client.
Non-Technology Integration Consulting Services
Our contracts for non-technology integration consulting services are typically less than one year in duration. Revenues are
generally recognized over time as our clients benefit from the services as they are performed, or the contract, for which the
related services lack an alternative use, includes termination provisions enabling payment for performance completed to
date. When contractual billings represent an amount that corresponds directly with the value provided to the client (e.g., time-
and-materials contracts), revenues are recognized as amounts become billable in accordance with contract terms. Revenues
from fixed-price contracts are generally recognized using costs incurred to date relative to total estimated costs at completion
to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which
corresponds with, and thereby best depicts, the transfer of control to the client. For non-technology integration consulting
contracts which do not qualify to recognize revenue over time, we recognize revenues at a point in time when the client
obtains control of the promised good or service.
Contract Estimates
Estimates of total contract revenues and costs are continuously monitored over the lives of our contracts, and recorded
revenues and cost estimates are subject to revision as the contract progresses. If at any time the estimate of contract
profitability indicates an anticipated loss on a technology integration consulting contract, we recognize the loss in the quarter
it first becomes probable and reasonably estimable.
Contract Balances
The timing of revenue recognition, billings and cash collections results in Receivables, Contract assets, and Deferred
revenues (Contract liabilities) on our Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with
agreed-upon contractual terms, either at periodic intervals (e.g., monthly or quarterly) or upon achievement of contractual
milestones. In limited circumstances, we agree to extend financing to certain clients. The terms vary by contract, but
generally payment for services is contractually linked to the achievement of specified performance milestones. Our
receivables are rights to consideration that are conditional only upon the passage of time as compared to our contract
assets, which are rights to consideration conditional upon additional factors. When we bill or receive payments from our
clients before revenue is recognized, we record Contract liabilities. Contract assets and liabilities are reported on our
Consolidated Balance Sheet on a contract-by-contract basis at the end of each reporting period.
For some managed services contracts, we receive payments for transition or set-up activities, which are deferred and
recognized as revenue as the services are provided. These advance payments are typically not a significant financing
component because they are used to meet working capital demands in the early stages of a contract and to protect us from
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-14
the other party failing to complete its obligations under the contract. We elected the practical expedient to report revenues
net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific
revenue-producing transactions.
Employee Share-Based Compensation Arrangements
Share-based compensation expense is recognized over the requisite service period for awards of equity instruments to
employees based on the grant date fair value of those awards expected to ultimately vest. Forfeitures are estimated on the
date of grant and revised if actual or expected forfeiture activity differs from previous estimates.
Income Taxes
We calculate and provide for income taxes in each of the tax jurisdictions in which we operate. Deferred tax assets and
liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences
between the tax and financial statement bases of assets and liabilities. A valuation allowance reduces the deferred tax assets
to the amount that is more likely than not to be realized. We establish liabilities or reduce assets when we believe tax
positions are not more likely than not of being sustained if challenged. Recognized tax positions are measured at the largest
amount of benefit greater than 50 percent likely of being realized. Each fiscal quarter, we evaluate tax positions and adjust
the related tax assets and liabilities in light of changing facts and circumstances. We release stranded tax effects from
Accumulated other comprehensive loss using the specific identification approach for our defined benefit plans and the
portfolio approach for other items.
Translation of Non-U.S. Currency Amounts
Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at fiscal
year-end exchange rates. Revenue and expense items are translated at average foreign currency exchange rates prevailing
during the fiscal year. Translation adjustments are included in Accumulated other comprehensive loss. Gains and losses
arising from intercompany foreign currency transactions that are of a long-term investment nature are reported in the same
manner as translation adjustments.
Cash and Cash Equivalents
Cash and cash equivalents consist of all cash balances and liquid investments with original maturities of three months or
less, including certificates of deposit and time deposits. As a result of certain subsidiaries’ cash management systems,
checks issued but not presented to the banks for payment may create negative book cash balances. Such negative balances
are classified as Current portion of long term debt and bank borrowings.
Allowance for Credit Losses—Client Receivables and Contract
Assets
We record client receivables and contract assets at their face amounts less an allowance for credit losses. The allowance
represents our estimate of expected credit losses based on historical experience, current economic conditions and certain
forward-looking information. As of August 31, 2023 and 2022, the total allowances recorded for credit losses recorded for
client receivables and contract assets was $26,343 and $25,786, respectively. The change in the allowance is primarily due
to immaterial write-offs and changes in gross client receivables and contract assets.
Concentrations of Credit Risk
Our financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments and
client receivables, are exposed to concentrations of credit risk. We place our cash and cash equivalents and foreign
exchange instruments with highly-rated financial institutions, limit the amount of credit exposure with any one financial
institution and conduct ongoing evaluations of the credit worthiness of the financial institutions with which we do business.
Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are
limited.
Table of Contents
ACCENTURE 2023 FORM 10-K
Investments
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-15
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). Investments are periodically assessed for other-than-
temporary impairment. If an investment is deemed to have experienced an other-than-temporary decline below its basis, we
reduce the carrying amount of the investment to its estimated fair value.
Our non-current investments are as follows:
Equity method investments
Investments without readily determinable fair values
Total non-current investments
August 31, 2023 August 31, 2022
$
$
23,985 $
173,458
197,443 $
164,164
153,808
317,972
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.
As of August 31, 2022, our equity method investments consisted primarily of an investment in Duck Creek Technologies. On
March 30, 2023, Duck Creek Technologies was acquired by Vista Equity Partners for $19.00 per share. As part of this
transaction, we received proceeds of $400,355 and recorded a gain of $252,920 in Other income (expense), net during fiscal
2023.
For equity securities without a readily determinable fair value, we use the fair value measurement alternative and measure
the securities at cost less impairment, if any, plus or minus observable price changes in orderly transactions for an identical
or similar investment of the same issuer.
Depreciation and Amortization
See table below for summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization
and operating lease cost for fiscal 2023 and 2022, respectively.
Depreciation
Amortization—Deferred transition
Amortization—Intangible assets
Operating lease cost
Other
Total depreciation, amortization and other
Property and Equipment
Fiscal
2023
$
620,659 $
339,139
440,957
868,082
2022
591,748
280,093
438,897
769,806
12,248
2,281,085 $
7,672
2,088,216
$
Property and equipment is stated at cost, net of accumulated depreciation. Depreciation of property and equipment is
computed on a straight-line basis over the following estimated useful lives:
Computers, related equipment and software
Furniture and fixtures
Leasehold improvements
2 to 7 years
5 to 10 years
Lesser of lease term or 15 years
Table of Contents
ACCENTURE 2023 FORM 10-K
Goodwill
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-16
Goodwill represents the excess of the purchase price of an acquired entity over the fair value of net assets acquired. We
review the recoverability of goodwill by operating segment annually, or more frequently when indicators of impairment exist.
Based on the results of our annual impairment analysis, we determined that no impairment existed as of August 31, 2023 or
2022, as each reportable segment’s estimated fair value substantially exceeded its carrying value.
Long-Lived Assets
Long-lived assets, including deferred contract costs and identifiable intangible assets, are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset or group of assets may not be recoverable.
Recoverability of long-lived assets or groups of assets is assessed based on a comparison of the carrying amount to the
estimated future net cash flows. If estimated future undiscounted net cash flows are less than the carrying amount, the asset
is considered impaired and a loss is recorded equal to the amount required to reduce the carrying amount to fair value.
Intangible assets with finite lives are generally amortized using the straight-line method over their estimated economic useful
lives, ranging from one to fifteen years.
Operating Expenses
Selected components of operating expenses are as follows:
Research and development costs
Advertising costs (1)
Provision for (release of) doubtful accounts (2)
Fiscal
2023
2022
2021
$ 1,298,657 $ 1,123,296 $ 1,118,320
100,652
3,856
119,202
(2,284)
171,883
6,199
(1)
(2)
Advertising costs are expensed as incurred.
For additional information, see “Allowance for Credit Losses—Client Receivables and Contract Assets.”
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 $1,063,146 of business optimization costs
during fiscal 2023, including $769,909 for employee severance and other personnel costs and $293,237 related to the
consolidation of office space. Total business optimization costs by reportable operating segment are as follows:
North America
Europe
Growth Markets
Total business optimization costs
$
Fiscal
2023
464,879
432,853
165,414
$
1,063,146
We continue to expect to record total business optimization costs of approximately $1.5 billion related to these actions, with
approximately $450 million in fiscal 2024 related primarily 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.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-17
2. Revenues
Disaggregation of Revenue
See Note 16 (Segment Reporting) to these Consolidated Financial Statements for our disaggregated revenues.
Remaining Performance Obligations
We had remaining performance obligations of approximately $26 billion and $24 billion as of August 31, 2023 and 2022,
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 67% of our remaining
performance obligations as of August 31, 2023 as revenue in fiscal 2024, an additional 13% 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 both fiscal 2023 and 2022.
Contract Balances
Deferred transition revenues were $653,954 and $712,715 as of August 31, 2023 and 2022, 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. Generally, deferred amounts are protected in the event of early termination of the contract and are monitored
regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows of the
related contract are not sufficient to recover the carrying amount of contract assets. Deferred transition costs
were $851,972 and $807,940 as of August 31, 2023 and 2022, respectively, and are included in Deferred contract costs.
Deferred transition amortization expense for fiscal 2023, 2022 and 2021 was $339,139, $280,093 and $297,216,
respectively.
The following table provides information about the balances of our Receivables and Contract assets, net of allowance, and
Contract liabilities (Deferred revenues):
Receivables
Contract assets (current)
Receivables and contract assets, net of allowance (current)
Contract assets (non-current)
Deferred revenues (current)
Deferred revenues (non-current)
As of August 31, 2023
As of August 31, 2022
$
10,690,713 $
1,536,473
12,227,186
106,994
4,907,152
653,954
10,484,211
1,292,564
11,776,775
46,844
4,478,048
712,715
Changes in the contract asset and liability balances during fiscal 2023, were a result of normal business activity and not
materially impacted by any other factors.
Revenues recognized during fiscal 2023 that were included in Deferred revenues as of August 31, 2022 were $3.9 billion.
Revenues recognized during fiscal 2022 that were included in Deferred revenues as of August 31, 2021 were $3.7 billion.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-18
3. Earnings Per Share
Basic and diluted earnings per share are calculated as follows:
Basic Earnings per share
Net income attributable to Accenture plc
Basic weighted average Class A ordinary shares
Basic earnings per share
Diluted Earnings per share
Fiscal
2023
2022
2021
$ 6,871,557 $ 6,877,169 $ 5,906,809
630,608,186
632,762,710
634,745,073
$
10.90 $
10.87 $
9.31
Net income attributable to Accenture plc
Net income attributable to noncontrolling interests in Accenture Canada
Holdings Inc. (1)
Net income for diluted earnings per share calculation
Basic weighted average Class A ordinary shares
Class A ordinary shares issuable upon redemption/exchange of
noncontrolling interests (1)
Diluted effect of employee compensation related to Class A ordinary shares
$ 6,871,557 $ 6,877,169 $ 5,906,809
7,204
7,348
6,539
$ 6,878,761 $ 6,884,517 $ 5,913,348
630,608,186
632,762,710
634,745,073
660,420
675,949
702,567
7,207,770
9,045,668
10,344,620
Diluted effect of share purchase plans related to Class A ordinary shares
115,240
354,854
116,782
Diluted weighted average Class A ordinary shares
Diluted earnings per share
638,591,616
642,839,181
645,909,042
$
10.77 $
10.71 $
9.16
(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
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-19
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:
Foreign currency translation
Beginning balance
Foreign currency translation
Income tax benefit (expense)
Portion attributable to noncontrolling interests
Foreign currency translation, net of tax
Ending balance
Defined benefit plans
Beginning balance
Actuarial gains (losses)
Pension settlement
Prior service costs arising during the period
Reclassifications into net periodic pension and
post-retirement expense
Income tax benefit (expense)
Portion attributable to noncontrolling interests
Defined benefit plans, net of tax
Ending balance
Cash flow hedges
Beginning balance
Unrealized gain (loss)
Reclassification adjustments into Cost of services
Income tax benefit (expense)
Portion attributable to noncontrolling interests
Cash flow hedges, net of tax
Ending balance (1)
Investments
Beginning balance
Unrealized gain (loss)
Income tax benefit (expense)
Portion attributable to noncontrolling interests
Investments, net of tax
Ending balance
Fiscal
2023
2022
2021
$
(1,852,320) $
349,151
918
(8,381)
341,688
(1,510,632)
(975,064) $
(904,530)
6,975
20,299
(877,256)
(1,852,320)
(1,010,279)
36,562
(346)
(1,001)
35,215
(975,064)
(348,771)
147,499
(9,481)
11,888
34,634
(62,147)
(125)
122,268
(226,503)
10,749
(64,331)
27,865
19,734
17
(16,715)
(5,966)
—
—
—
—
—
—
(559,958)
238,865
—
1,052
51,061
(79,567)
(224)
211,187
(348,771)
115,525
(14,310)
(92,275)
1,698
111
(104,776)
10,749
—
—
—
—
—
—
(615,223)
(50,166)
39,016
27,570
49,864
(10,959)
(60)
55,265
(559,958)
63,714
168,244
(102,676)
(13,701)
(56)
51,811
115,525
(49)
49
—
—
49
—
Accumulated other comprehensive loss
$
(1,743,101) $
(2,190,342) $
(1,419,497)
(1)
As of August 31, 2023, $2,975 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
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-20
5. Property and Equipment
The components of Property and equipment, net are as follows:
Buildings and land
Computers, related equipment and software
Furniture and fixtures
Leasehold improvements
Property and equipment, gross
Total accumulated depreciation
Property and equipment, net
August 31, 2023
August 31, 2022
$
— $
2,112,846
433,473
1,558,373
4,104,692
5,609
2,154,989
442,499
1,546,230
4,149,327
(2,574,685)
(2,490,187)
$
1,530,007 $
1,659,140
Depreciation expense for fiscal 2023, 2022 and 2021 was $620,659, $591,748 and $512,051, respectively.
6. Business Combinations and Dispositions
Business Combinations
We completed a number of individually immaterial acquisitions during fiscal 2023, 2022 and 2021. These acquisitions were
completed primarily to expand our services and solutions offerings. The table below gives additional details related to these
acquisitions:
Total consideration
Goodwill
Intangible assets
Fiscal
2023
2022
$
2,482,109 $
3,416,981 $
2,094,972
544,661
2,758,893
737,040
2021
4,109,145
3,388,948
983,910
The intangible assets primarily consist of customer-related intangibles, which are being amortized over one to fifteen years.
The goodwill was allocated among our reportable operating segments and is partially deductible for U.S. federal income tax
purposes.
Dispositions
During fiscal 2022, we disposed of our business in Russia, which was part of our Europe segment. The transaction resulted
in a non-operating loss of $96,294, which was not deductible for tax purposes and did not have a material effect on our
operations or financial results.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-21
7. Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill by reportable operating segment are as follows:
Geographic Markets
North America
Europe
Growth Markets
Total
August 31,
2021
Additions/
Adjustments
Foreign
Currency
Translation
August 31,
2022
Additions/
Adjustments
Foreign
Currency
Translation
August 31,
2023
$ 6,618,198 $ 1,133,033 $
(6,649) $ 7,744,582 $ 1,145,007 $
(13,539) $ 8,876,050
3,329,746
1,177,917
1,447,463
(643,118)
4,134,091
162,483
(85,780)
1,254,620
596,352
389,307
378,718
5,109,161
(56,135)
1,587,792
$ 11,125,861 $ 2,742,979 $
(735,547) $ 13,133,293 $ 2,130,666 $
309,044 $ 15,573,003
Goodwill includes immaterial adjustments related to prior period acquisitions.
Intangible Assets
Our definite-lived intangible assets by major asset class are as follows:
Intangible Asset Class
Customer-related
Technology
Patents
Other
Total
August 31, 2022
August 31, 2023
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
$ 2,498,001 $
(842,056) $ 1,655,945 $ 2,842,257 $
(999,604) $ 1,842,653
283,251
126,950
62,875
(96,782)
(70,745)
(30,686)
186,469
56,205
32,189
289,989
123,579
65,138
(141,022)
148,967
(70,472)
(36,908)
53,107
28,230
$ 2,971,077 $
(1,040,269) $ 1,930,808 $ 3,320,963 $
(1,248,006) $ 2,072,957
Total amortization related to our intangible assets was $440,957, $438,897 and $312,706 for fiscal 2023, 2022 and 2021,
respectively. Estimated future amortization related to intangible assets held as of August 31, 2023 is as follows:
Fiscal Year
2024
2025
2026
2027
2028
Thereafter
Total
Estimated Amortization
427,055
$
392,674
343,203
278,129
246,667
385,229
$
2,072,957
Table of Contents
ACCENTURE 2023 FORM 10-K
8. Leases
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-22
As a lessee, substantially all of our lease obligation is for office real estate. Our significant judgments used in determining our
lease obligation include whether a contract is or contains a lease and the determination of the discount rate used to calculate
the lease liability. We elected the practical expedient not to separate lease and associated non-lease components,
accounting for them as a single combined lease component, for our office real estate and automobile leases.
Our leases may include the option to extend or terminate before the end of the contractual term and are often non-
cancelable or cancelable only by the payment of penalties. Our lease assets and liabilities include these options in the lease
term when it is reasonably certain that they will be exercised. In certain cases, we sublease excess office real estate to third-
party tenants.
Lease assets and liabilities recognized at the lease commencement date are determined predominantly as the present value
of the payments due over the lease term. Since we cannot determine the implicit rate in our leases, we use our incremental
borrowing rate on that date to calculate the present value. Our incremental borrowing rate approximates the rate at which we
could borrow, on a secured basis for a similar term, an amount equal to our lease payments in a similar economic
environment.
When we are the lessee, all leases are recognized as lease liabilities and associated lease assets on the Consolidated
Balance Sheet. Lease liabilities represent our obligation to make payments arising from the lease. Lease assets represent
our right to use an underlying asset for the lease term and may also include advance payments, initial direct costs, or lease
incentives. Payments that depend upon an index or rate, such as the Consumer Price Index (CPI), are included in the
recognition of lease assets and liabilities at the commencement-date rate. Other variable payments, such as common area
maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost, are recognized in the
Consolidated Income Statement in the period incurred.
As of August 31, 2023 and 2022, we had no material finance leases. Operating lease expense is recorded on a straight-line
basis over the lease term. Lease costs are as follows:
Operating lease cost
Variable lease cost
Sublease income
Total
Supplemental information related to operating lease transactions is as follows:
Lease liability payments
Lease assets obtained in exchange for liabilities
Fiscal
2023
2022
$
868,082 $
769,806
213,078
187,087
(17,061)
(16,804)
$ 1,064,099 $
940,089
Fiscal
2023
2022
$
768,797 $
730,815
434,179
690,767
As of August 31, 2023 and 2022, our operating leases had a weighted average remaining lease term of 6.9 years and 7.3
years, respectively, and a weighted average discount rate of 3.8% and 3.7%, respectively.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-23
The following maturity analysis presents future undiscounted cash outflows (inflows) for operating leases as of August 31,
2023:
2024
2025
2026
2027
2028
Thereafter
Total lease payments (receipts)
Less interest
Total lease liabilities
Lease
Payments
$
705,584 $
Sublease
Receipts
(12,793)
608,099
475,299
375,738
292,983
939,243
(9,827)
(6,960)
(6,397)
(6,301)
(6,268)
$ 3,396,946 $
(48,546)
(395,815)
$ 3,001,131
As of August 31, 2023, we have entered into leases that have not yet commenced with future lease payments of $141,662
that are not reflected in the table above. These leases are primarily related to office real estate and will commence in or
before fiscal 2025 with lease terms of up to 10 years.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-24
9. Financial Instruments
Derivatives
In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk.
Derivative transactions are governed by a uniform set of policies and procedures covering areas such as authorization,
counterparty exposure and hedging practices. Positions are monitored using techniques such as market value and sensitivity
analyses. We do not enter into derivative transactions for trading purposes. We classify cash flows from our derivative
programs as cash flows from operating activities in the Consolidated Cash Flows Statements.
Certain derivatives give rise to credit risks from the possible non-performance by counterparties. Credit risk is generally
limited to the fair value of those contracts that are favorable to us, and the maximum amount of loss due to credit risk, based
on the gross fair value of our derivative financial instruments that are in an asset position, was $104,420 as of August 31,
2023.
We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency
transaction obligations and for set-off of certain obligations in the event of an insolvency of one of the parties to the
transaction. These provisions may reduce our potential overall loss resulting from the insolvency of a counterparty and
reduce a counterparty’s potential overall loss resulting from our insolvency. Additionally, these agreements contain early
termination provisions triggered by adverse changes in a counterparty’s credit rating, thereby enabling us to accelerate
settlement of a transaction prior to its contractual maturity and potentially decrease our realized loss on an open transaction.
Similarly, a decrement in our credit rating could trigger a counterparty’s early termination rights, thereby enabling a
counterparty to accelerate settlement of a transaction prior to its contractual maturity and potentially increase our realized
loss on an open transaction. The aggregate fair value of our derivative instruments with credit-risk-related contingent features
that were in a liability position as of August 31, 2023 was $114,741.
Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts. Fair values
for derivative financial instruments are based on prices computed using third-party valuation models and are classified as
Level 2 in accordance with the three-level hierarchy of fair value measurements. All of the significant inputs to the third-party
valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates
and yield curves. For additional information related to the three-level hierarchy of fair value measurements, see Note 12
(Retirement and Profit Sharing Plans) to these Consolidated Financial Statements.
Cash Flow Hedges
Certain of our subsidiaries are exposed to currency risk through their use of our global delivery resources. To mitigate this
risk, we use foreign currency forward contracts to hedge the foreign exchange risk of the forecasted intercompany expenses
denominated in foreign currencies for up to three years in the future. We have designated these derivatives as cash flow
hedges. As of August 31, 2023 and 2022, we held no derivatives that were designated as fair value or net investment
hedges.
In order for a derivative to qualify for hedge accounting, the derivative must be formally designated as a fair value, cash flow
or net investment hedge by documenting the relationship between the derivative and the hedged item. The documentation
includes a description of the hedging instrument, the hedged item, the risk being hedged, our risk management objective and
strategy for undertaking the hedge, the method for assessing the effectiveness of the hedge and the method for measuring
hedge ineffectiveness. Additionally, the hedge relationship must be expected to be highly effective at offsetting changes in
either the fair value or cash flows of the hedged item at both inception of the hedge and on an ongoing basis.
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. The
amounts related to derivatives designated as cash flow hedges that were reclassified into Cost of services were net losses of
$27,865, and net gains of $92,275 and $102,676 during fiscal 2023, 2022 and 2021, respectively. The ineffective portion of
the change in fair value of a cash flow hedge is recognized immediately in Other income (expense), net in the Consolidated
Income Statements and for fiscal 2023, 2022 and 2021, was not material. In addition, we did not discontinue any cash flow
hedges during fiscal 2023, 2022 or 2021.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-25
Other Derivatives
We also use foreign currency forward contracts, which have not been designated as hedges, to hedge balance sheet
exposures, such as intercompany loans. These instruments are generally short-term in nature, with typical maturities of less
than one year, and are subject to fluctuations in foreign exchange rates. Realized gains or losses and changes in the
estimated fair value of these derivatives were net losses of $135,586, $168,625 and $15,370 for fiscal 2023, 2022 and 2021,
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:
Assets
Cash Flow Hedges
Other current assets
Other non-current assets
Other Derivatives
Other current assets
Total assets
Liabilities
Cash Flow Hedges
Other accrued liabilities
Other non-current liabilities
Other Derivatives
Other accrued liabilities
Total liabilities
Total fair value
Total notional value
August 31, 2023 August 31, 2022
$
52,995 $
44,739
89,867
69,209
6,686
104,420 $
8,657
167,733
50,020 $
26,076
61,156
42,537
38,645
114,741 $
(10,321) $
83,792
187,485
(19,752)
13,390,031 $
11,095,604
$
$
$
$
$
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:
Net derivative assets
Net derivative liabilities
Total fair value
August 31, 2023 August 31, 2022
$
$
50,528 $
60,849
(10,321) $
140,073
159,825
(19,752)
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-26
10. Borrowings and Indebtedness
As of August 31, 2023 and 2022, we had total outstanding debt of $147,903 and $55,068, respectively.
As of August 31, 2023, we had the following borrowing facilities:
Credit
Facilities
$
3,000,000
1,777,938
246,818
$
5,024,756
Syndicated loan facility (1)
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2)
Local guaranteed and non-guaranteed lines of credit (3)
Total
(1)
(2)
(3)
This facility, which matures on April 24, 2026, 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 continue to be in compliance with relevant covenant terms. The facility is subject to annual
commitment fees. As of August 31, 2023, we had $100,000 of commercial paper outstanding and backed by this facility, with a weighted-
average effective interest rate of 5.4%. We did not have any commercial paper outstanding as of August 31, 2022.
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 August 31, 2023 and 2022, we had no borrowings under these facilities.
We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. As of
August 31, 2023 and 2022, we had no borrowings under these various facilities.
Under the borrowing facilities described above, we had an aggregate of $1,080,819 and $892,340 of letters of credit
outstanding as of August 31, 2023 and 2022, respectively. We also had $100,000 of commercial paper outstanding as of
August 31, 2023. We did not have any commercial paper outstanding as of August 31, 2022. The amount of commercial
paper and letters of credit outstanding reduces the available borrowing capacity under these facilities.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-27
11. Income Taxes
Current taxes
U.S. federal
U.S. state and local
Non-U.S.
Total current tax expense
Deferred taxes
U.S. federal
U.S. state and local
Non-U.S.
Total deferred tax (benefit) expense
Total
The components of Income before income taxes are as follows:
U.S. sources
Non-U.S. sources
Total
Fiscal
2023
2022
2021
$
422,435 $
298,685 $
220,043
1,762,277
2,404,755
152,862
1,968,954
2,420,501
(334,942)
(63,098)
129,087
(268,953)
(202,318)
(48,597)
37,621
(213,294)
218,064
95,662
1,395,915
1,709,641
7,767
(5,400)
58,563
60,930
$
2,135,802 $
2,207,207 $
1,770,571
Fiscal
2023
2022
2021
$
$
1,562,011 $
1,644,380 $
1,597,820
7,577,321
7,551,787
6,163,296
9,139,332 $
9,196,167 $
7,761,116
The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:
U.S. federal statutory income tax rate
U.S. state and local taxes, net
Non-U.S. operations taxed at other rates
Final determinations (1)
Other net activity in unrecognized tax benefits
Excess tax benefits from share based payments
Foreign-derived intangible income deduction
Other, net
Effective income tax rate
2023
21.0 %
1.3
1.4
(1.0)
3.2
(1.3)
(2.3)
1.1
Fiscal
2022 (2)
21.0 %
1.1
0.8
(0.9)
3.0
(3.0)
(1.1)
3.1
2021 (2)
21.0 %
1.2
1.1
(1.7)
2.8
(2.1)
(0.9)
1.4
23.4 %
24.0 %
22.8 %
(1)
(2)
Final determinations include final agreements with tax authorities and expirations of statutes of limitations.
Prior period amounts have been reclassified to conform with the current period presentation.
As of August 31, 2023, we had not recognized a deferred tax liability on approximately $3,000,000 of undistributed earnings
for certain foreign subsidiaries, because these earnings are intended to be indefinitely reinvested. If such earnings were
distributed, some countries may impose additional taxes. The unrecognized deferred tax liability (the amount payable if
distributed) is approximately $170,000.
Portions of our operations are subject to reduced tax rates or are free of tax under various tax holidays which expire in fiscal
2031. The income tax benefits attributable to the tax status of these subsidiaries were estimated to be approximately
$40,000, $29,000 and $37,000 in fiscal 2023, 2022 and 2021, respectively.
The revaluation of deferred tax assets and liabilities due to enacted changes in tax laws and tax rates did not have a material
impact on our effective tax rate in fiscal 2023, 2022, or 2021.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-28
The components of our deferred tax assets and liabilities included the following:
Deferred tax assets
Pensions
Compensation and benefits
Share-based compensation
Tax credit carryforwards
Net operating loss carryforwards
Deferred amortization deductions
Indirect effects of unrecognized tax benefits
Licenses and other intangibles
Leases
Capitalized research costs
Other
Total deferred tax assets
Valuation allowance
Deferred tax assets, net of valuation allowance
Deferred tax liabilities
Pensions
Revenue recognition
Investments in subsidiaries
Intangibles
Leases
Other
Total deferred tax liabilities
Net deferred tax assets
August 31, 2023 August 31, 2022 (1)
$
518,782 $
909,894
518,126
1,380,841
172,690
842,471
315,145
1,089,720
715,393
363,135
657,346
7,483,543
(1,480,678)
6,002,865
(205,411)
(77,864)
(176,539)
(647,477)
(625,190)
(510,786)
(2,243,267)
$
3,759,598 $
501,475
930,284
436,740
940,640
180,610
852,513
356,841
1,322,464
759,399
—
477,143
6,758,109
(1,056,022)
5,702,087
(146,553)
(106,580)
(162,873)
(581,105)
(687,428)
(334,932)
(2,019,471)
3,682,616
(1) Prior period amounts have been reclassified to conform with the current period presentation.
We recorded valuation allowances of $1,480,678 and $1,056,022 as of August 31, 2023 and 2022, respectively, against
deferred tax assets principally associated with certain tax credit and tax net operating loss carryforwards, as we believe it is
more likely than not that these assets will not be realized. For all other deferred tax assets, we believe it is more likely than
not that the results of future operations will generate sufficient taxable income to realize these deferred tax assets. During
fiscal 2023 and 2022, we recorded net increases of $424,656 and $54,777 in the valuation allowance, respectively, primarily
related to valuation allowances on certain tax credit carryforwards, as we believe it is more likely than not that these assets
will not be realized.
We had tax credit carryforwards as of August 31, 2023 of $1,380,841, of which $31,995 will expire between 2024 and 2033,
$336 will expire between 2034 and 2043, and $1,348,510 has an indefinite carryforward period. We had net operating loss
carryforwards as of August 31, 2023 of $809,894. Of this amount, $200,928 expires between 2024 and 2033, $13,640
expires between 2034 and 2043, and $595,326 has an indefinite carryforward period.
As of August 31, 2023, we had $1,744,481 of unrecognized tax benefits, of which $1,289,173, if recognized, would favorably
affect our effective tax rate. As of August 31, 2022, we had $1,469,336 of unrecognized tax benefits, of which $1,083,065, if
recognized, would favorably affect our effective tax rate. The remaining unrecognized tax benefits as of August 31, 2023 and
2022 of $455,308 and $386,271, respectively, represent items recorded as offsetting tax benefits associated with the
correlative effects of potential transfer pricing adjustments, state income taxes and timing adjustments.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-29
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
Balance, beginning of year
Additions for tax positions related to the current year
Additions for tax positions related to prior years
Reductions for tax positions related to prior years
Statute of limitations expirations
Settlements with tax authorities
Cumulative translation adjustment
Balance, end of year
Fiscal
2023
2022
$
1,469,336 $
1,344,460
446,929
99,926
(152,799)
(72,039)
(60,292)
13,420
356,089
29,060
(69,023)
(62,393)
(2,109)
(126,748)
$
1,744,481 $
1,469,336
We recognize interest and penalties related to unrecognized tax benefits in our Income tax expense. During fiscal 2023,
2022 and 2021, we recognized expense of $21,137, $25,369 and $35,285 in interest and penalties, respectively. Accrued
interest and penalties related to unrecognized tax benefits of $172,163 ($161,753, net of tax benefits) and $177,610
($159,814, net of tax benefits) were reflected on our Consolidated Balance Sheets as of August 31, 2023 and 2022,
respectively.
As a global company, we file tax returns in multiple tax jurisdictions including the U.S. and Ireland. We have participated in
the U.S. Internal Revenue Service (“IRS”) Compliance Assurance Process (“CAP”) program since fiscal 2016. CAP tax years
are examined by the IRS on a contemporaneous basis so that most issues are resolved prior to filing the tax return. The
years from fiscal 2021 forward remain open for examination by the IRS. The years from fiscal 2019 forward remain open for
examination by the Irish tax authorities. We are currently under audit in U.S. state and other non-U.S. tax jurisdictions.
However, with limited exceptions, we are no longer subject to examination by those taxing authorities for years before 2015.
Although the outcome of tax audits is always uncertain and could result in significant cash tax payments, we do not believe
the outcome of these audits will have a material adverse effect on our consolidated financial position or results of operations.
We believe that it is reasonably possible that our unrecognized tax benefits could decrease by approximately $358,000 or
increase by approximately $572,000 in the next 12 months as a result of settlements, lapses of statutes of limitations, tax
audit activity and other adjustments. The majority of these amounts relate to transfer pricing matters in both U.S. and non-
U.S. tax jurisdictions.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-30
12. Retirement and Profit Sharing Plans
Defined Benefit Pension and Postretirement Plans
In the United States and certain other countries, we maintain and administer defined benefit retirement plans and
postretirement medical plans for certain current, retired and resigned employees. In addition, our U.S. defined benefit
pension plans include a frozen plan for former pre-incorporation partners, which is unfunded. Benefits under the employee
retirement plans are primarily based on years of service and compensation during the years immediately preceding
retirement or termination of participation in the plan. The defined benefit pension disclosures include our U.S. and material
non-U.S. defined benefit pension plans.
Assumptions
The weighted-average assumptions used to determine the defined benefit pension obligations as of August 31 and the net
periodic pension expense are as follows:
August 31,
2023
Pension Plans
August 31,
2022
August 31,
2021
U.S.
Plans
Non-
U.S.
Plans
U.S.
Plans
Non-
U.S.
Plans
U.S.
Plans
Non-
U.S.
Plans
Postretirement Plans
August 31,
2022
U.S. and
Non-U.S.
Plans
August 31,
2023
U.S. and
Non-U.S.
Plans
August 31,
2021
U.S. and
Non-U.S.
Plans
Discount rate for determining
projected benefit obligation
Discount rate for determining
net periodic pension expense
Long term rate of return on
plan assets
Rate of increase in future
compensation for determining
projected benefit obligation
Rate of increase in future
compensation for determining
net periodic pension expense
Interest crediting rate for
determining projected benefit
obligation
Interest crediting rate for
determining net periodic
pension expense
5.00 % 4.68 % 4.25 % 3.99 % 2.50 % 2.41 %
5.00 %
4.28 %
2.53 %
4.25 % 3.99 % 2.50 % 2.41 % 2.50 % 2.27 %
4.28 %
2.53 %
2.51 %
3.50 % 3.19 % 3.50 % 2.23 % 3.50 % 2.63 %
2.88 %
2.89 %
3.06 %
2.07 % 5.13 % 2.07 % 5.30 % 2.09 % 4.48 %
2.07 % 5.30 % 2.09 % 4.48 % 2.21 % 4.04 %
N/A 1.59 %
N/A 1.37 %
N/A 0.77 %
N/A 1.37 %
N/A 0.77 %
N/A 0.68 %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
We utilize a full yield curve approach to estimate the service and interest cost components by applying specific spot rates
along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. This approach
provides a correlation between projected benefit cash flows and the corresponding yield curve spot rates and provides a
precise measurement of service and interest costs. The discount rate assumptions are based on the expected duration of the
benefit payments for each of our defined benefit pension and postretirement plans as of the annual measurement date and
are subject to change each year.
The expected long-term rate of return on plan assets should, over time, approximate the actual long-term returns on defined
benefit pension and postretirement plan assets and is based on historical returns and the future expectations for returns for
each asset class, as well as the target asset allocation of the asset portfolio.
Assumed U.S. Health Care Cost Trend
Our U.S. postretirement plan assumed annual rate of increase in the per capita cost of health care benefits is 6.7% for the
plan year ending August 31, 2024. The rate is assumed to decrease on a straight-line basis to 4.0% for the plan year ending
August 31, 2048 and remain at that level thereafter.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-31
Pension and Postretirement Expense
Pension expense for fiscal 2023, 2022 and 2021 was $206,346, $188,001 and $169,471, respectively. Postretirement
expense for fiscal 2023, 2022 and 2021 was not material to our Consolidated Financial Statements. The service cost
component of pension and postretirement expense is included in operating expenses while the other components of net
benefit cost are included in Other income (expense), net.
Benefit Obligation, Plan Assets and Funded Status
The changes in the benefit obligations, plan assets and funded status of our pension and postretirement benefit plans for
fiscal 2023 and 2022 are as follows:
Pension Plans
August 31,
2023
August 31,
2022
U.S. Plans
Non-
U.S. Plans
U.S. Plans
Non-
U.S. Plans
Postretirement Plans
August 31,
2023
U.S. and
Non-U.S.
Plans
August 31,
2022
U.S. and
Non-U.S.
Plans
Reconciliation of benefit obligation
Benefit obligation, beginning of year
$ 328,907 $ 2,011,658 $ 406,328 $ 2,337,120 $ 589,744 $ 734,271
Service cost
Interest cost
Participant contributions
Acquisitions/divestitures/transfers
Amendments
Special termination benefits
Plan combinations
Actuarial (gain) loss
Benefits paid
Exchange rate impact
1,622
12,440
—
—
—
—
—
(13,635)
(17,463)
—
137,002
75,765
21,868
21,941
(11,888)
—
319
(176,748)
(119,697)
72,513
2,087
7,762
—
—
—
—
—
128,723
49,136
20,274
36,262
(1,052)
—
—
30,079
23,807
36,066
17,127
—
28
—
200
—
—
—
—
—
—
(70,541)
(218,036)
(122,473)
(181,512)
(16,729)
(104,257)
(19,698)
(15,515)
—
(236,512)
(709)
(693)
Benefit obligation, end of year
$ 311,871 $ 2,032,733 $ 328,907 $ 2,011,658 $ 500,978 $ 589,744
Reconciliation of fair value of plan
assets
Fair value of plan assets, beginning of
year
Actual return on plan assets
Acquisitions/divestitures/transfers
Employer contributions
Participant contributions
Pension settlement
Benefits paid
Exchange rate impact
$ 233,260 $ 1,126,871 $ 291,652 $ 1,326,259 $
25,793 $
32,550
(10,141)
(104,173)
(52,564)
(119,123)
—
10,940
—
—
19,358
126,996
21,868
—
—
10,901
—
—
8,097
120,322
20,274
378
(653)
—
22,949
—
—
(4,985)
—
13,743
—
—
(17,463)
(119,697)
(16,729)
(104,257)
(19,698)
(15,515)
—
55,164
—
(125,079)
—
—
Fair value of plan assets, end of year
$ 216,596 $ 1,126,387 $ 233,260 $ 1,126,871 $
28,391 $
25,793
Funded status, end of year
$
(95,275) $
(906,346) $
(95,647) $ (884,787) $ (472,587) $ (563,951)
Amounts recognized in the Consolidated
Balance Sheets
Non-current assets
Current liabilities
Non-current liabilities
$
6,556 $
124,600 $
7,901 $ 148,836 $
— $
—
(11,495)
(90,336)
(64,913)
(10,529)
(60,642)
(1,210)
(1,267)
(966,033)
(93,019)
(972,981)
(471,377)
(562,684)
Funded status, end of year
$
(95,275) $
(906,346) $
(95,647) $ (884,787) $ (472,587) $ (563,951)
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-32
Accumulated Other Comprehensive (Gain) Loss
The pre-tax accumulated net (gain) loss and prior service (credit) cost recognized in Accumulated other comprehensive
(gain) loss as of August 31, 2023 and 2022 is as follows:
Pension Plans
August 31,
2023
August 31,
2022
U.S. Plans
Non-U.S.
Plans
U.S. Plans
Non-U.S.
Plans
Postretirement Plans
August 31,
2023
U.S. and
Non-U.S.
Plans
August 31,
2022
U.S. and
Non-U.S.
Plans
$
90,199 $ 324,500 $
93,663 $ 370,478 $
(96,281) $
23,526
—
(19,138)
—
(4,478)
5,122
6,101
$
90,199 $ 305,362 $
93,663 $ 366,000 $
(91,159) $
29,627
Net (gain) loss
Prior service (credit) cost
Accumulated other comprehensive
(gain) loss, pre-tax
Funded Status for Defined Benefit Plans
The accumulated benefit obligation for defined benefit pension plans as of August 31, 2023 and 2022 is as follows:
Accumulated benefit obligation
August 31,
2023
August 31,
2022
U.S. Plans
Non-U.S.
Plans
U.S. Plans
Non-U.S.
Plans
$ 309,898 $ 1,771,880 $ 325,991 $ 1,730,451
The following information is provided for defined benefit pension plans and postretirement plans with projected benefit
obligations in excess of plan assets and for defined benefit pension plans with accumulated benefit obligations in excess of
plan assets as of August 31, 2023 and 2022:
Pension Plans
August 31,
2023
August 31,
2022
U.S. Plans
Non-U.S.
Plans
U.S. Plans
Non-U.S.
Plans
Postretirement Plans
August 31,
2023
U.S. and
Non-U.S.
Plans
August 31,
2022
U.S. and
Non-U.S.
Plans
Projected benefit obligation in excess
of plan assets
Projected benefit obligation
Fair value of plan assets
$ 101,830 $ 1,328,422 $ 103,548 $ 1,364,096 $ 500,978 $ 589,744
25,793
330,473
297,495
28,391
—
—
August 31,
2023
August 31,
2022
U.S. Plans
Non-U.S.
Plans
U.S. Plans
Non-U.S.
Plans
$ 101,830 $ 1,036,344 $ 103,548 $ 1,073,411
—
233,905
—
279,864
Accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation
Fair value of plan assets
Investment Strategies
U.S. Pension Plans
The overall investment objective of the defined benefit pension plans is to match the duration of the plans’ assets to the
plans’ liabilities while managing risk in order to meet current defined benefit pension obligations. The plans’ future prospects,
their current financial conditions, our current funding levels and other relevant factors suggest that the plans can tolerate
some interim fluctuations in market value and rates of return in order to achieve long-term objectives without undue risk to
the plans’ ability to meet their current benefit obligations. We recognize that asset allocation of the defined benefit pension
plans’ assets is an important factor in determining long-term performance. Actual asset allocations at any point in time may
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-33
vary from the target asset allocations and will be dictated by current and anticipated market conditions, required cash flows
and investment decisions of the investment committee and the pension plans’ investment funds and managers. Ranges are
established to provide flexibility for the asset allocation to vary around the targets without the need for immediate
rebalancing.
Non-U.S. Pension Plans
Plan assets in non-U.S. defined benefit pension plans conform to the investment policies and procedures of each plan and to
relevant legislation. The pension committee or trustee of each plan regularly, but at least annually, reviews the investment
policy and the performance of the investment managers. In certain countries, the trustee is also required to consult with us.
Asset allocation decisions are made to provide risk adjusted returns that align with the overall investment strategy for each
plan. Generally, the investment return objective of each plan is to achieve a total annualized rate of return that exceeds
inflation over the long term by an amount based on the target asset allocation mix of that plan. In certain countries, plan
assets are invested in funds that are required to hold a majority of assets in bonds, with a smaller proportion in equities. Also,
certain plan assets are entirely invested in contracts held with the plan insurer, which determines the strategy. Defined
benefit pension plans in certain countries are unfunded.
Risk Management
Plan investments are exposed to risks including market, interest rate and operating risk. In order to mitigate significant
concentrations of these risks, the assets are invested in a diversified portfolio primarily consisting of fixed income instruments
and equities. To minimize asset volatility relative to the liabilities, plan assets allocated to debt securities appropriately match
the duration of individual plan liabilities. Equities are diversified between U.S. and non-U.S. index funds and are intended to
achieve long term capital appreciation. Plan asset allocation and investment managers’ guidelines are reviewed on a regular
basis.
Plan Assets
Our target allocation for fiscal 2024 and weighted-average plan assets allocations as of August 31, 2023 and 2022 by asset
category for defined benefit pension plans are as follows:
Asset Category
Equity securities
Debt securities
Cash and short-term investments
Insurance contracts
Other
Total
Fair Value Measurements
2024 Target
Allocation
U.S.
Plans
Non-U.S.
Plans
2023
2022
U.S.
Plans
Non-U.S.
Plans
U.S.
Plans
Non-U.S.
Plans
— %
100
—
—
—
27 %
— %
19 %
— %
21 %
35
6
22
10
95
5
—
—
43
6
22
10
97
3
—
—
50
4
15
10
100 %
100 %
100 %
100 %
100 %
100 %
Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction
between market participants at the measurement date and in the principal or most advantageous market for that asset or
liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or
liability, not on assumptions specific to the entity.
The three-level hierarchy of fair value measurements is based on whether the inputs to those measurements are observable
or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs
reflect our market assumptions. The fair-value hierarchy requires the use of observable market data when available and
consists of the following levels:
•
•
•
Level 1—Quoted prices for identical instruments in active markets;
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in
markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets;
and
Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-34
The fair values of defined benefit pension and postretirement plan assets as of August 31, 2023 are as follows:
Non-U.S. Plans
Equity
Mutual fund equity securities
Non-U.S. corporate equity securities
Fixed Income
Non-U.S. government debt securities
Non-U.S. corporate debt securities
Mutual fund debt securities
Cash and short-term investments
Insurance contracts
Other
Total
Level 1
Level 2
Level 3
Total
$
7,430 $
188,796 $
— $
—
18,163
192,484
17,568
—
65,401
—
—
88,274
—
189,337
—
68,569
82,455
—
—
—
—
—
180,353
27,557
196,226
18,163
280,758
17,568
189,337
65,401
248,922
110,012
$
282,883 $
635,594 $
207,910 $
1,126,387
The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is
set to an actuarially calculated present value of the underlying liabilities.
The U.S. Plans have $244,987 in Level 2 assets, primarily made up of U.S. corporate debt securities of $162,799 and U.S.
government, state and local debt securities of $38,656.
The following table provides a reconciliation of the beginning and ending balances of Level 3 assets for fiscal 2023:
Level 3 Assets
Beginning balance
Changes in fair value
Ending Balance
$
$
Fiscal 2023
97,881
110,029
207,910
The fair values of defined benefit pension and postretirement plan assets as of August 31, 2022 are as follows:
Non-U.S. Plans
Equity
Mutual fund equity securities
Fixed Income
Non-U.S. government debt securities
Non-U.S. corporate debt securities
Mutual fund debt securities
Cash and short-term investments
Insurance contracts
Other
Total
Level 1
Level 2
Level 3
Total
$
4,954 $
234,339 $
— $
239,293
168,705
16,238
—
48,089
—
—
—
—
379,989
—
69,902
106,774
—
—
—
—
97,881
—
168,705
16,238
379,989
48,089
167,783
106,774
$
237,986 $
791,004 $
97,881 $
1,126,871
The level 3 assets are primarily invested in an insurance buy-in contract in a Non-U.S. plan. The fair value of the assets is
set to an actuarially calculated present value of the underlying liabilities.
The U.S. Plans have $259,053 in Level 2 assets, primarily made up of U.S. corporate debt securities of $161,031 and U.S.
government, state and local debt securities of $55,217.
The following table provides a reconciliation of the beginning and ending balances of Level 3 assets for fiscal 2022:
Level 3 Assets
Beginning balance
Changes in fair value
Ending Balance
$
$
Fiscal 2022
130,934
(33,053)
97,881
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-35
Expected Contributions
Generally, annual contributions are made at such times and in amounts as required by law and may, from time to time,
exceed minimum funding requirements. We estimate we will pay approximately $169,664 in fiscal 2024 related to
contributions to our U.S. and non-U.S. defined benefit pension plans and benefit payments related to the unfunded frozen
plan for former pre-incorporation partners. We have not determined whether we will make additional voluntary contributions
for our defined benefit pension plans. Our postretirement plan contributions in fiscal 2024 are not expected to be material to
our Consolidated Financial Statements.
Estimated Future Benefit Payments
Benefit payments for defined benefit pension plans and postretirement plans, which reflect expected future service, as
appropriate, are expected to be paid as follows:
2024
2025
2026
2027
2028
2029-2033
Pension Plans
U.S. Plans
$
18,726 $
Postretirement
Plans
U.S. and Non-
U.S. Plans
13,473
Non-U.S.
Plans
136,479 $
19,693
20,485
21,186
21,824
114,568
138,786
144,204
167,185
184,746
981,670
14,939
16,542
18,440
20,189
130,673
Defined Contribution Plans
In the United States and certain other countries, we maintain and administer defined contribution plans for certain current,
retired and resigned employees. Total expenses recorded for defined contribution plans were $976,230, $823,720 and
$646,519 in fiscal 2023, 2022 and 2021, respectively.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-36
13. Share-Based Compensation
Share Incentive Plans
The Amended and Restated Accenture plc 2010 Share Incentive Plan, as amended and approved by our shareholders in
2022 (the “Amended 2010 SIP”), is administered by the Compensation, Culture & People Committee of the Board of
Directors of Accenture and provides for the grant of nonqualified share options, incentive stock options, restricted share units
and other share-based awards. A maximum of 127,000,000 Accenture plc Class A ordinary shares are currently authorized
for awards under the Amended 2010 SIP. As of August 31, 2023, there were 19,452,323 shares available for future grants.
Accenture plc Class A ordinary shares covered by awards that terminate, lapse or are cancelled may again be used to satisfy
awards under the Amended 2010 SIP. We issue new Accenture plc Class A ordinary shares and shares from treasury for
shares delivered under the Amended 2010 SIP.
A summary of information with respect to share-based compensation is as follows:
Fiscal
2023
2022
2021
Total share-based compensation expense included in Net income
$
1,913,051 $
1,679,789 $
1,342,951
Income tax benefit related to share-based compensation included in
Net income
585,767
680,335
486,980
Restricted Share Units
Under the Amended 2010 SIP, participants may be, and previously under the predecessor 2001 Share Incentive Plan were,
granted restricted share units, each of which represent an unfunded, unsecured right to receive an Accenture plc Class A
ordinary share on the date specified in the participant’s award agreement. The fair value of the awards is based on our stock
price on the date of grant. The restricted share units granted under these plans are subject to cliff or graded vesting,
generally ranging from two to five years. For awards with graded vesting, compensation expense is recognized over the
vesting term of each separately vesting portion. Compensation expense is recognized on a straight-line basis for awards with
cliff vesting. Restricted share unit activity during fiscal 2023 is as follows:
Nonvested balance as of August 31, 2022
Granted (1)
Vested (2)
Forfeited
Nonvested balance as of August 31, 2023
Number of Restricted
Share Units
Weighted Average
Grant-Date Fair Value
14,586,892 $
8,911,674
(6,919,616)
(1,018,192)
15,560,758 $
283.16
267.37
248.06
291.38
289.19
(1)
(2)
The weighted average grant-date fair value for restricted share units granted for fiscal 2023, 2022 and 2021 was $267.37, $387.73 and
$263.83, respectively.
The total grant-date fair value of restricted share units vested for fiscal 2023, 2022 and 2021 was $1,716,464, $1,343,403 and $1,156,501,
respectively.
As of August 31, 2023, there was $1,654,658 of total unrecognized restricted share unit compensation expense related to
nonvested awards, which is expected to be recognized over a weighted average period of 1.2 years. As of August 31, 2023,
there were 509,901 restricted share units vested but not yet delivered as Accenture plc Class A ordinary shares.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-37
Employee Share Purchase Plan
2010 ESPP
The Amended and Restated Accenture plc 2010 Employee Share Purchase Plan (the “2010 ESPP”) is a nonqualified plan
that provides eligible employees of Accenture plc and its designated affiliates with an opportunity to purchase Accenture plc
Class A ordinary shares through payroll deductions. Under the 2010 ESPP, eligible employees may purchase Accenture plc
Class A ordinary shares through the Employee Share Purchase Plan (the “ESPP”) or the Voluntary Equity Investment
Program (the “VEIP”). Under the ESPP, eligible employees may elect to contribute 1% to 10% of their eligible compensation
during each semi-annual offering period (up to $7.5 per offering period) to purchase Accenture plc Class A ordinary shares at
a discount. Under the VEIP, eligible members of Accenture Leadership may elect to contribute up to 30% of their eligible
compensation towards the monthly purchase of Accenture plc Class A ordinary shares at fair market value. At the end of the
VEIP program year, Accenture Leadership participants who did not withdraw from the program will be granted restricted
share units under the Amended 2010 SIP equal to 50% of the number of shares purchased during that year and held by the
participant as of the grant date.
A maximum of 90,000,000 Accenture plc Class A ordinary shares may be issued under the 2010 ESPP. As of August 31,
2023, we had issued 79,519,314 Accenture plc Class A ordinary shares under the 2010 ESPP. We issued 5,710,542,
4,366,262 and 4,486,288 shares to employees in fiscal 2023, 2022 and 2021, respectively, under the 2010 ESPP.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-38
14. Shareholders’ Equity
Accenture plc
Ordinary Shares
We have 40,000 authorized ordinary shares, par value €1 per share. Each ordinary share of Accenture plc entitles its holder
to receive payments upon a liquidation of Accenture plc; however a holder of an ordinary share is not entitled to vote on
matters submitted to a vote of shareholders of Accenture plc or to receive dividends.
Class A Ordinary Shares
An Accenture plc Class A ordinary share entitles its holder to one vote per share, and holders of those shares do not have
cumulative voting rights. Each Class A ordinary share entitles its holder to a pro rata part of any dividend at the times and in
the amounts, if any, which Accenture plc’s Board of Directors from time to time determines to declare, subject to any
preferred dividend rights attaching to any preferred shares. Each Class A ordinary share is entitled on a winding-up of
Accenture plc to be paid a pro rata part of the value of the assets of Accenture plc remaining after payment of its liabilities,
subject to any preferred rights on liquidation attaching to any preferred shares.
Class X Ordinary Shares
Most of our pre-incorporation partners who received Accenture Canada Holdings Inc. exchangeable shares in connection
with our transition to a corporate structure received a corresponding number of Accenture plc Class X ordinary shares. An
Accenture plc Class X ordinary share entitles its holder to one vote per share, and holders of those shares do not have
cumulative voting rights. A Class X ordinary share does not entitle its holder to receive dividends, and holders of those
shares are not entitled to be paid any amount upon a winding-up of Accenture plc. Accenture plc may redeem, at its option,
any Class X ordinary share for a redemption price equal to the par value of the Class X ordinary share. Accenture plc has
separately agreed with the original holders of Accenture Canada Holdings Inc. exchangeable shares not to redeem any
Class X ordinary share of such holder if the redemption would reduce the number of Class X ordinary shares held by that
holder to a number that is less than the number of Accenture Canada Holdings Inc. exchangeable shares owned by that
holder, as the case may be. Accenture plc will redeem Class X ordinary shares upon the redemption or exchange of
Accenture Canada Holdings Inc. exchangeable shares so that the aggregate number of Class X ordinary shares outstanding
at any time does not exceed the aggregate number of Accenture Canada Holdings Inc. exchangeable shares outstanding.
Class X ordinary shares are not transferable without the consent of Accenture plc.
Equity of Subsidiaries Redeemable or Exchangeable for
Accenture plc Class A Ordinary Shares
Accenture Canada Holdings Inc. Exchangeable Shares
Pre-incorporation partners resident in Canada and New Zealand received Accenture Canada Holdings Inc. exchangeable
shares in connection with our transition to a corporate structure. Holders of Accenture Canada Holdings Inc. exchangeable
shares may exchange their shares for Accenture plc Class A ordinary shares at any time on a one-for-one basis. We may, at
our option, satisfy this exchange with cash at a price per share generally equal to the market price of an Accenture plc Class
A ordinary share at the time of the exchange. Each exchangeable share of Accenture Canada Holdings Inc. entitles its holder
to receive distributions equal to any distributions to which an Accenture plc Class A ordinary share entitles its holder.
Share Purchases and Redemptions
The Board of Directors of Accenture plc has authorized funding for our publicly announced open-market share purchase
program for acquiring Accenture plc Class A ordinary shares and for purchases and redemptions of Accenture plc Class A
ordinary shares and Accenture Canada Holdings Inc. exchangeable shares held by current and former members of
Accenture Leadership and their permitted transferees. As of August 31, 2023, our aggregate available authorization was
$2,490,054 for our publicly announced open-market share purchase and these other share purchase programs.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-39
Our share purchase activity during fiscal 2023 is as follows:
Accenture plc Class A
Ordinary Shares
Accenture Canada
Holdings Inc. Exchangeable Shares
Shares
Amount
Shares
Amount
12,773,304 $
3,631,369
— $
—
2,540,236
—
691,160
26,735
—
15,313,540 $
4,322,529
26,735 $
—
7,874
—
7,874
Open-market share purchases (1)
Other share purchase programs
Other purchases (2)
Total
(1)
(2)
We conduct a publicly announced open-market share purchase program for Accenture plc Class A ordinary shares. These shares are held
as treasury shares by Accenture plc and may be utilized to provide for select employee benefits, such as equity awards to our employees.
During fiscal 2023, as authorized under our various employee equity share plans, we acquired Accenture plc Class A ordinary shares
primarily via share withholding for payroll tax obligations due from employees and former employees in connection with the delivery of
Accenture plc Class A ordinary shares under those plans. These purchases of shares in connection with employee share plans do not
affect our aggregate available authorization for our publicly announced open-market share purchase and the other share purchase
programs.
Cancellation of Treasury Shares
During fiscal 2023, we cancelled 8,828,496 Accenture plc Class A ordinary shares that were held as treasury shares and had
an aggregate cost of $2,595,281. The effect of the cancellation of these treasury shares was recognized in Class A ordinary
shares and Additional paid-in capital with the residual recorded in Retained earnings. There was no effect on total
shareholders’ equity as a result of this cancellation.
Dividends
Our dividend activity during fiscal 2023 is as follows:
Dividend Payment Date
November 15, 2022
February 15, 2023
May 15, 2023
August 15, 2023
Total Dividends
Dividend
Per
Share
Accenture plc Class A
Ordinary Shares
Accenture Canada
Holdings Inc. Exchangeable Shares
Record Date
Cash Outlay
Record Date
Cash Outlay
Total Cash
Outlay
$
1.12 October 13, 2022 $
704,938
October 11, 2022 $
629 $
705,567
1.12
1.12
1.12
January 12, 2023
April 13, 2023
July 13, 2023
707,156
707,002
705,339
January 10, 2023
April 11, 2023
July 11, 2023
866
740
724
708,022
707,742
706,063
$ 2,824,435
$
2,959 $ 2,827,394
The payment of cash dividends includes the net effect of $113,667 of additional restricted stock units being issued as a part
of our share plans, which resulted in 391,233 restricted share units being issued.
Subsequent Events
On September 27, 2023, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.29 per share on
our Class A ordinary shares for shareholders of record at the close of business on October 12, 2023, payable on
November 15, 2023.
On September 27, 2023, the Board of Directors of Accenture plc approved $4,000,000 in additional share repurchase
authority, bringing Accenture’s total outstanding authority to $6,490,054.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-40
15. 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. These arrangements
with clients can include provisions whereby we have joint and several liability in relation to the performance of certain
contractual obligations along with third parties also providing services and products for a specific project. In addition, our
consulting arrangements may include warranty provisions that our solutions will substantially operate in accordance with the
applicable system requirements. Indemnification provisions are also included in arrangements under which we agree to hold
the indemnified party harmless with respect to third-party claims related to such matters as title to assets sold or licensed or
certain intellectual property rights.
Typically, we have contractual recourse against third parties for certain payments we made in connection with arrangements
where third-party nonperformance has given rise to the client’s claim. Payments we made under any of the arrangements
described above are generally conditioned on the client making a claim, which may be disputed by us typically under dispute
resolution procedures specified in the particular arrangement. The limitations of liability under these arrangements may be
expressly limited or may not be expressly specified in terms of time and/or amount.
As of August 31, 2023 and 2022, our aggregate potential liability to our clients for expressly limited guarantees involving the
performance of third parties was approximately $1,793,000 and $1,349,000, respectively, of which all but approximately
$51,000 and $49,000, 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 August 31, 2023 and 2022, we have issued or provided guarantees in the form of letters of credit and surety bonds of
$1,294,653 and $1,116,298, 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 August 31, 2023, we or our present personnel had been named as a defendant in various litigation matters. We and/or
our personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning
matters arising in the course of our business around the world. Based on the present status of these matters, except as
otherwise noted below, management believes the range of reasonably possible losses in addition to amounts accrued, net of
insurance recoveries, will not have a material effect on our results of operations or financial condition.
On July 24, 2019, Accenture was named in a putative class action lawsuit filed by consumers of Marriott International, Inc.
(“Marriott”) in the U.S. District Court for the District of Maryland. The complaint alleges negligence by us, and seeks monetary
damages, costs and attorneys’ fees and other related relief, relating to a data security incident involving unauthorized access
to the reservations database of Starwood Worldwide Resorts, Inc. (“Starwood”), which was acquired by Marriott on
September 23, 2016. Since 2009, we have provided certain IT infrastructure outsourcing services to Starwood. On October
27, 2020, the court issued an order largely denying Accenture’s motion to dismiss the claims against us. 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. 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
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-41
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 in Part I, Item 1A,
Risk Factors – “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
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-42
16. Segment Reporting
Operating segments are components of an enterprise where separate financial information is available and is evaluated
regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in
assessing performance.
Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer. Our operating segments are
managed separately because each operating segment represents a strategic business unit providing consulting and
managed services to clients across different industries.
Our three reportable segments are our geographic markets, which are North America, Europe and Growth Markets. Amounts
are attributed to geographic markets based on where clients are located. In the first quarter of fiscal 2024, our Middle East
and Africa market units will move from Growth Markets to Europe, and the Europe market will be referred to as our Europe,
Middle East and Africa (EMEA) geographic market.
Information regarding our geographic markets is as follows:
Fiscal 2023
Revenues
Depreciation and amortization (1)
Operating income
Net assets as of August 31 (2)
Property & equipment, net
Fiscal 2022
Revenues
Depreciation and amortization (1)
Operating income
Net assets as of August 31 (2)
Property & equipment, net
Fiscal 2021
Revenues
Depreciation and amortization (1)
Operating income
Net assets as of August 31 (2)
Property & equipment, net
North America
Europe
Growth Markets
Total
$
30,295,587 $
21,285,122 $
12,531,036 $
64,111,745
553,840
4,473,701
4,091,045
541,484
489,547
2,332,678
2,527,587
451,802
368,686
2,003,510
1,006,414
536,721
1,412,073
8,809,889
7,625,046
1,530,007
$
29,121,385 $
20,263,550 $
12,209,370 $
61,594,305
484,894
4,976,890
3,981,668
598,116
452,825
2,437,313
2,331,300
430,179
381,467
1,952,978
1,127,828
630,845
1,319,186
9,367,181
7,440,796
1,659,140
$
23,701,341 $
16,749,484 $
10,082,564 $
50,533,389
379,105
3,907,883
3,141,318
537,392
403,802
2,236,462
1,564,660
455,862
344,656
1,477,184
862,755
645,851
1,127,563
7,621,529
5,568,733
1,639,105
(1)
(2)
Amounts include depreciation on property and equipment and amortization of intangible assets and deferred contract costs controlled by
each reportable segment, as well as an allocation for amounts they do not directly control.
We do not allocate total assets by reportable segment. Reportable segment assets directly attributable to a reportable segment and
provided to the chief operating decision makers include receivables and current and non-current contract assets, deferred contract costs
and current and non-current deferred revenues.
The accounting policies of the reportable segments are the same as those described in Note 1 (Summary of Significant
Accounting Policies) to these Consolidated Financial Statements.
Our business in the United States represented 45% of our consolidated revenues during fiscal 2023, 2022 and 2021,
respectively. No other country individually comprised 10% or more of our consolidated revenues during these periods.
Business in Ireland, our country of domicile, represented approximately 1% of our consolidated revenues during fiscal 2023
and 2022 and 2% during fiscal 2021.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-43
We conduct business in Ireland and in the following countries that hold 10% or more of our total consolidated Property and
equipment, net:
United States
India
Ireland
Revenues by industry group and type of work are as follows:
August 31, 2023
August 31, 2022
August 31, 2021
33 %
15
2
33 %
17
6
27 %
17
7
Fiscal
2023
2022
2021
Industry Groups (1)
Communications, Media & Technology
$
11,452,914 $
12,199,797 $
12,131,531
12,560,458
19,103,892
8,862,950
11,810,582
11,226,464
18,275,419
8,082,043
9,801,349
9,932,523
9,498,234
14,438,537
6,862,746
$
$
$
64,111,745 $
61,594,305 $
50,533,389
33,613,008 $
34,075,856 $
30,498,737
27,518,449
64,111,745 $
61,594,305 $
27,337,699
23,195,690
50,533,389
Financial Services
Health & Public Service
Products
Resources
Total
Type of Work
Consulting
Managed Services (2)
Total
(1)
(2)
Effective June 1, 2022, we revised the reporting of our industry groups for the movement of Aerospace & Defense from Communications,
Media & Technology to Products. Prior period amounts have been reclassified to conform with the current period presentation.
Previously referred to as our outsourcing business.
Table of Contents
ACCENTURE 2023 FORM 10-K
Notes to Consolidated Financial Statements — (continued)
(In thousands of U.S. dollars, except share and per share amounts or as otherwise disclosed)
F-44
17. Quarterly Data (unaudited)
Fiscal 2023
Revenues
Cost of services
Operating income
Net income
Net income attributable to Accenture plc
Weighted average Class A ordinary
shares:
—Basic
—Diluted
Earnings per Class A ordinary share:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
$
15,747,802 $
15,814,158 $
16,564,585 $
15,985,200 $
64,111,745
10,561,660
10,979,392
11,035,515
10,803,571
43,380,138
2,593,100
1,996,300
1,964,950
1,944,581
1,550,683
1,523,648
2,359,288
2,048,335
2,009,996
1,912,920
1,408,212
1,372,963
8,809,889
7,003,530
6,871,557
630,137,262
630,845,147
631,535,162
629,922,331
630,608,186
638,766,821
637,735,390
638,743,434
639,249,070
638,591,616
—Basic
—Diluted
Fiscal 2022
Revenues
Cost of services
Operating income
Net income
Net income attributable to Accenture plc
Weighted average Class A ordinary
shares:
—Basic
—Diluted
Earnings per Class A ordinary share:
$
$
3.12 $
3.08 $
2.42 $
2.39 $
3.18 $
3.15 $
2.18 $
2.15 $
10.90
10.77
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
$
14,965,153 $
15,046,693 $
16,158,803 $
15,423,656 $
61,594,305
10,048,364
10,522,734
10,844,069
10,477,599
41,892,766
2,434,294
1,819,730
1,791,024
2,061,580
1,657,529
1,634,942
2,603,118
1,819,316
1,786,075
2,268,189
1,692,385
1,665,128
9,367,181
6,988,960
6,877,169
632,280,932
633,956,712
632,749,442
632,095,422
632,762,710
644,922,661
644,127,093
641,004,741
640,914,760
642,839,181
—Basic
—Diluted
$
$
2.83 $
2.78 $
2.58 $
2.54 $
2.82 $
2.79 $
2.63 $
2.60 $
10.87
10.71