þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to |
Ireland | 98-1254718 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ | Smaller reporting company o |
(Do not check if a smaller reporting company) |
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Part I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
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Part II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
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Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Part III | ||
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Part IV | ||
Item 15. | ||
ITEM 1. | BUSINESS |
Operating Groups and Industry Groups | ||||
Communications, Media & Technology | Financial Services | Health & Public Service | Products | Resources |
• Communications • Electronics & High Tech • Media & Entertainment | • Banking & Capital Markets • Insurance | • Health • Public Service | • Consumer Goods, Retail & Travel Services • Industrial • Life Sciences | • Chemicals & Natural Resources • Energy • Utilities |
• | Our Communications industry group serves most of the world’s leading wireline, wireless, cable and satellite communications service providers. This group represented approximately 49% of our Communications, Media & Technology operating group’s net revenues in fiscal 2016. |
• | Our Electronics & High Tech industry group serves the information and communications technology, software, semiconductor, consumer electronics, aerospace and defense, and medical equipment industries. This group represented approximately 37% of our Communications, Media & Technology operating group’s net revenues in fiscal 2016. |
• | Our Media & Entertainment industry group serves the broadcast, entertainment, print, publishing and Internet/social media industries. This group represented approximately 14% of our Communications, Media & Technology operating group’s net revenues in fiscal 2016. |
• | Our Banking & Capital Markets industry group serves retail and commercial banks, mortgage lenders, payment providers, investment banks, wealth and asset management firms, broker/dealers, depositories, exchanges, clearing and settlement organizations, and other diversified financial enterprises. This group represented approximately 72% of our Financial Services operating group’s net revenues in fiscal 2016. |
• | Our Insurance industry group serves property and casualty insurers, life insurers, reinsurance firms and insurance brokers. This group represented approximately 28% of our Financial Services operating group’s net revenues in fiscal 2016. |
• | Our Health industry group works with healthcare providers, such as hospitals, public health systems, policy-making authorities, health insurers (payers), and industry organizations and associations around the world to improve the quality, accessibility and productivity of healthcare. This group represented approximately 39% of our Health & Public Service operating group’s net revenues in fiscal 2016. |
• | Our Public Service industry group helps governments transform the way they deliver public services and engage with citizens. We work primarily with defense departments and military forces; public safety authorities, such as police forces and border management agencies; justice departments; human services agencies; educational institutions, such as universities; non-profit organizations; 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. Our Public Service industry group represented approximately 61% of our Health & Public Service operating group’s net revenues in fiscal 2016. Our work with clients in the U.S. federal government represented approximately 35% of our Health & Public Service operating group’s net revenues in fiscal 2016. |
• | Our Consumer Goods, Retail & Travel Services industry group serves food and beverage, household goods, personal care, tobacco, fashion/apparel, agribusiness and consumer health companies; supermarkets, hardline retailers, mass-merchandise discounters, department stores and specialty retailers; as well as airlines and hospitality and travel services companies. This group represented approximately 55% of our Products operating group’s net revenues in fiscal 2016. |
• | Our Industrial industry group works with automotive manufacturers and suppliers; freight and logistics companies; industrial and electrical equipment, consumer durable and heavy equipment companies; and construction and infrastructure management companies. This group represented approximately 24% of our Products operating group’s net revenues in fiscal 2016. |
• | Our Life Sciences industry group serves pharmaceutical, medical technology and biotechnology companies. This group represented approximately 21% of our Products operating group’s net revenues in fiscal 2016. |
• | Our Chemicals & Natural Resources industry group works with a wide range of industry segments, including petrochemicals, specialty chemicals, polymers and plastics, gases and agricultural chemicals, among others, as well as the metals, mining, forest products and building materials industries. This group represented approximately 28% of our Resources operating group’s net revenues in fiscal 2016. |
• | Our Energy industry group serves a wide range of companies in the oil and gas industry, including upstream, downstream, oil services and new energy companies. This group represented approximately 29% of our Resources operating group’s net revenues in fiscal 2016. |
• | Our Utilities industry group works with electric, gas and water utilities around the world. This group represented approximately 43% of our Resources operating group’s net revenues in fiscal 2016. |
• | Accenture Interactive. Our end-to-end marketing solutions help clients deliver seamless multi-channel customer experiences and enhance their marketing performance. Our services span customer experience design, digital marketing, personalization and commerce, as well as digital content production and operations. |
• | Accenture Mobility. We provide clients with practical innovations in connectivity and the Internet of Things to transform business processes and enable new operating models. Our end-to-end mobility capabilities include collecting and exchanging valuable data through connected devices, mobile applications, embedded software and sensor technology. |
• | Accenture Analytics. We deliver insight-driven outcomes at scale to help clients improve performance. Our capabilities range from implementing analytics technologies such as big data to advanced mathematical modeling and sophisticated statistical analysis. Our services enhance business performance and productivity outcomes through advanced analytics, artificial intelligence and collaboration capabilities. |
• | Technology Services. Technology Services includes our application services spanning systems integration and application outsourcing and covering the full application lifecycle, from custom systems to all emerging technologies, across every leading technology platform (both traditional and cloud/software-as-a-service-based). It also includes our global delivery capability in Technology and portfolio of products and platforms. We continuously innovate new services and capabilities through early adoption of technologies such as artificial intelligence to enhance productivity and create new growth opportunities. |
• | Technology Innovation & Ecosystem. We harness innovation through the research and development activities in the Accenture Labs and through emerging technologies. We also manage our technology platforms and our alliance relationships across a broad range of technology providers, including SAP, Oracle, Microsoft, salesforce.com, Workday, Pegasystems and many others, to enhance the value that we and our clients realize from the technology ecosystem. |
• | Business Process Services. We offer services for specific business functions, such as finance and accounting, procurement, marketing, human resources and learning, as well as industry-specific services, such as credit and health services. We provide these services on a global basis and across industry sectors through our Global Delivery Network. |
• | Infrastructure and Cloud Services. We provide infrastructure and security design, implementation and operation services to help organizations take advantage of innovative technologies and improve the efficiency and effectiveness of their existing technology. Our solutions help clients optimize their IT infrastructures—whether on-premise, in the cloud or a hybrid of the two. |
• | large multinational providers, including the services arms of large global technology providers (hardware, equipment and software), that offer some or all of the services and solutions that we do; |
• | off-shore service providers in lower-cost locations, particularly in India, that offer services globally that are similar to the services and solutions we offer; |
• | accounting firms that provide consulting and other services and solutions in areas that compete with us; |
• | niche solution or service providers or local competitors that compete with us in a specific geographic market, industry segment or service area, including digital agencies and emerging start-ups and other companies that can scale rapidly to focus on certain markets and provide new or alternative products, services or delivery models; and |
• | in-house departments of large corporations that use their own resources, rather than engage an outside firm for the types of services and solutions we provide. |
• | skills and capabilities of people; |
• | technical and industry expertise; |
• | innovative service and product offerings; |
• | ability to add business value and improve performance; |
• | reputation and client references; |
• | contractual terms, including competitive pricing; |
• | ability to deliver results reliably and on a timely basis; |
• | scope of services; |
• | service delivery approach; |
• | quality of services and solutions; |
• | availability of appropriate resources; and |
• | global reach and scale, including level of presence in key emerging markets. |
• | large multinational providers, including the services arms of large global technology providers (hardware, equipment and software), that offer some or all of the services and solutions that we do; |
• | off-shore service providers in lower-cost locations, particularly in India, that offer services globally that are similar to the services and solutions we offer; |
• | accounting firms that provide consulting and other services and solutions in areas that compete with us; |
• | niche solution or service providers or local competitors that compete with us in a specific geographic market, industry segment or service area, including digital agencies and emerging start-ups and other companies that can scale rapidly to focus on certain markets and provide new or alternative products, services or delivery models; and |
• | in-house departments of large corporations that use their own resources, rather than engage an outside firm for the types of services and solutions we provide. |
• | 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, includes 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. |
• | 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 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 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. 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, 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 |
• | U.S. government contracting regulations impose strict compliance and disclosure obligations. 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 also could lead to audits or investigations and other civil, criminal or administrative sanctions. |
• | 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. |
• | 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 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. |
• | Legislative and executive proposals remain under consideration or could be proposed in the future, which, if enacted, could limit or even prohibit our eligibility to be awarded state or federal government contracts in the United States in the future 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 the Company 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 the Company. |
• | take advantage of opportunities, including more rapid expansion; |
• | acquire other businesses or assets; |
• | repurchase shares from our shareholders; |
• | develop new services and solutions; or |
• | respond to competitive pressures. |
Price Range | |||||||
High | Low | ||||||
Fiscal 2015 | |||||||
First Quarter | $ | 86.49 | $ | 73.98 | |||
Second Quarter | $ | 91.94 | $ | 81.66 | |||
Third Quarter | $ | 97.95 | $ | 86.40 | |||
Fourth Quarter | $ | 105.37 | $ | 88.43 | |||
Fiscal 2016 | |||||||
First Quarter | $ | 109.86 | $ | 91.68 | |||
Second Quarter | $ | 109.65 | $ | 91.40 | |||
Third Quarter | $ | 119.72 | $ | 101.00 | |||
Fourth Quarter | $ | 120.78 | $ | 108.66 | |||
Fiscal 2017 | |||||||
First Quarter (through October 14, 2016) | $ | 124.96 | $ | 108.83 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | |||||||||
Accenture Holdings plc | |||||||||||||
June 1, 2016 — June 30, 2016 | 61,737 | $ | 110.63 | — | — | ||||||||
July 1, 2016 — July 31, 2016 | 89,516 | $ | 114.14 | — | — | ||||||||
August 1, 2016 — August 31, 2016 | 23,949 | $ | 113.36 | — | — | ||||||||
Total | 175,202 | $ | 112.80 | — | — | ||||||||
Accenture Canada Holdings Inc. | |||||||||||||
June 1, 2016 — June 30, 2016 | — | $ | — | — | — | ||||||||
July 1, 2016 — July 31, 2016 | — | $ | — | — | — | ||||||||
August 1, 2016 — August 31, 2016 | 32,009 | $ | 113.58 | — | — | ||||||||
Total | 32,009 | $ | 113.58 | — | — |
(1) | During the fourth quarter of fiscal 2016, we acquired a total of 175,202 Accenture Holdings plc ordinary shares and 32,009 Accenture Canada Holdings Inc. exchangeable shares from current and former members of Accenture Leadership and their permitted transferees by means of purchase or redemption for cash, or employee forfeiture, as applicable. In addition, during the fourth quarter of fiscal 2016, Accenture issued 105,589 Accenture plc Class A ordinary shares upon redemptions of an equivalent number of Accenture Holdings plc ordinary shares pursuant to a registration statement. |
(2) | 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. |
(3) | For a discussion of Accenture’s and our aggregate available authorization for share purchases and redemptions through either Accenture’s publicly announced open-market share purchase program or the other share purchase programs, see the “Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs” column of the “Purchases and Redemptions of Accenture plc Class A Ordinary Shares and Class X Ordinary Shares” table below and the applicable footnote. |
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, 2016 — June 30, 2016 | ||||||||||||||
Class A ordinary shares | 1,342,918 | $ | 116.73 | 1,330,550 | $ | 5,758 | ||||||||
Class X ordinary shares | 17,448 | $ | 0.0000225 | — | — | |||||||||
July 1, 2016 — July 31, 2016 | ||||||||||||||
Class A ordinary shares | 2,334,486 | $ | 113.95 | 1,444,155 | $ | 5,583 | ||||||||
Class X ordinary shares | 64,830 | $ | 0.0000225 | — | — | |||||||||
August 1, 2016 — August 31, 2016 | ||||||||||||||
Class A ordinary shares | 1,703,494 | $ | 113.75 | 1,667,532 | $ | 5,387 | ||||||||
Class X ordinary shares | 187,020 | $ | 0.0000225 | — | — | |||||||||
Total | ||||||||||||||
Class A ordinary shares (4) | 5,380,898 | $ | 114.58 | 4,442,237 | ||||||||||
Class X ordinary shares (5) | 269,298 | $ | 0.0000225 | — |
(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 2016, Accenture purchased 4,442,237 Accenture plc Class A ordinary shares under this program for an aggregate price of $510 million. The open-market purchase program does not have an expiration date. |
(3) | As of August 31, 2016, Accenture’s and our aggregate available authorization for share purchases and redemptions was $5,387 million, which management has the discretion to use for either Accenture’s publicly announced open-market share purchase program or the other share purchase programs. Since August 2001 and as of August 31, 2016, the Board of Directors of Accenture plc has authorized an aggregate of $30,100 million for purchases and redemptions of Accenture plc Class A ordinary shares, Accenture Holdings plc ordinary shares or Accenture Canada Holdings Inc. exchangeable shares. |
(4) | During the fourth quarter of fiscal 2016, Accenture purchased 938,661 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 Accenture’s various employee equity share plans. These purchases of shares in connection with employee share plans do not affect our aggregate available authorization for Accenture’s and our publicly announced open-market share purchase and the other share purchase programs. |
(5) | Accenture plc Class X ordinary shares are redeemable at their par value of $0.0000225 per share. |
Fiscal | |||||||||||||||||||
2016 (1) | 2015 (2) | 2014 | 2013 (3) | 2012 | |||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Income Statement Data | |||||||||||||||||||
Revenues before reimbursements (“Net revenues”) | $ | 32,883 | $ | 31,048 | $ | 30,002 | $ | 28,563 | $ | 27,862 | |||||||||
Revenues | 34,798 | 32,914 | 31,875 | 30,394 | 29,778 | ||||||||||||||
Operating income | 4,810 | 4,436 | 4,301 | 4,339 | 3,872 | ||||||||||||||
Net income | 4,350 | 3,274 | 3,176 | 3,555 | 2,825 | ||||||||||||||
Net income attributable to Accenture Holdings plc | 4,300 | 3,226 | 3,122 | 3,508 | 2,785 | ||||||||||||||
Dividends per common share | 2.20 | 2.04 | 1.86 | 1.62 | 1.35 |
(1) | Includes the impact of $849 million pre-tax Gain on sale of businesses recorded during fiscal 2016. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations for Fiscal 2016 Compared to Fiscal 2015—Gain on Sale of Businesses.” |
(2) | Includes the impact of a $64 million, pre-tax, Pension settlement charge recorded during fiscal 2015. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations for Fiscal 2016 Compared to Fiscal 2015—Pension Settlement Charge.” |
(3) | Includes the impact of $274 million in reorganization benefits and $243 million in U.S. federal tax benefits recorded during fiscal 2013. |
August 31, 2016 | August 31, 2015 | August 31, 2014 | August 31, 2013 | August 31, 2012 | |||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||
Cash and cash equivalents | $ | 4,906 | $ | 4,361 | $ | 4,921 | $ | 5,632 | $ | 6,641 | |||||||||
Total assets | 20,609 | 18,203 | 17,930 | 16,867 | 16,665 | ||||||||||||||
Long-term debt, net of current portion | 24 | 26 | 26 | 26 | — | ||||||||||||||
Accenture Holdings plc shareholders’ equity | 7,894 | 6,419 | 6,071 | 5,274 | 4,501 |
Fiscal | Percent Increase (Decrease) U.S. Dollars | Percent Increase Local Currency | Percent of Total Net Revenues for Fiscal | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
OPERATING GROUPS | |||||||||||||||||||
Communications, Media & Technology | $ | 6,616 | $ | 6,349 | 4 | % | 9 | % | 20 | % | 20 | % | |||||||
Financial Services | 7,031 | 6,635 | 6 | 11 | 21 | 21 | |||||||||||||
Health & Public Service | 5,987 | 5,463 | 10 | 12 | 18 | 18 | |||||||||||||
Products | 8,395 | 7,596 | 11 | 15 | 26 | 25 | |||||||||||||
Resources | 4,839 | 4,989 | (3 | ) | 3 | 15 | 16 | ||||||||||||
Other | 15 | 17 | n/m | n/m | — | — | |||||||||||||
TOTAL NET REVENUES | 32,883 | 31,048 | 6 | % | 10 | % | 100 | % | 100 | % | |||||||||
Reimbursements | 1,915 | 1,866 | 3 | ||||||||||||||||
TOTAL REVENUES | $ | 34,798 | $ | 32,914 | 6 | % | |||||||||||||
GEOGRAPHIC REGIONS | |||||||||||||||||||
North America | $ | 15,653 | $ | 14,209 | 10 | % | 11 | % | 48 | % | 46 | % | |||||||
Europe | 11,448 | 10,930 | 5 | 11 | 35 | 35 | |||||||||||||
Growth Markets | 5,781 | 5,909 | (2 | ) | 8 | 17 | 19 | ||||||||||||
TOTAL NET REVENUES | $ | 32,883 | $ | 31,048 | 6 | % | 10 | % | 100 | % | 100 | % | |||||||
TYPE OF WORK | |||||||||||||||||||
Consulting | $ | 17,868 | $ | 16,204 | 10 | % | 15 | % | 54 | % | 52 | % | |||||||
Outsourcing | 15,015 | 14,844 | 1 | 6 | 46 | 48 | |||||||||||||
TOTAL NET REVENUES | $ | 32,883 | $ | 31,048 | 6 | % | 10 | % | 100 | % | 100 | % |
• | Communications, Media & Technology net revenues increased 9% in local currency. Net revenues reflected strong growth, driven by growth across all industry groups in North America and Growth Markets, as well as Media & Entertainment in Europe. |
• | Financial Services net revenues increased 11% in local currency. Net revenues reflected very strong growth, driven by growth in both industry groups across all geographic regions, led by Banking & Capital Markets in Europe. |
• | Health & Public Service net revenues increased 12% in local currency. Net revenues reflected very strong growth, driven by growth in both industry groups across all geographic regions, led by Public Service and Health in North America. |
• | Products net revenues increased 15% in local currency. Net revenues reflected very strong growth, driven by growth across all industry groups and geographic regions, led by Consumer Goods, Retail & Travel Services, as well as Industrial in Europe and Life Sciences in North America. |
• | Resources net revenues increased 3% in local currency. Net revenues reflected modest growth, as significant growth in Utilities across all geographic regions was largely offset by declines in Chemicals & Natural Resources in Growth Markets and North America and Energy in Europe and Growth Markets. We have experienced lower or negative revenue growth in Chemicals & Natural Resources and Energy, principally due to economic challenges in these industries, and we expect this trend to continue in the near term. |
• | North America net revenues increased 11% in local currency, driven by the United States. |
• | Europe net revenues increased 11% in local currency, driven by the United Kingdom, Italy, Switzerland, Spain, Germany and France. |
• | Growth Markets net revenues increased 8% in local currency, led by Japan, as well as China, India, South Africa and Mexico. |
Fiscal | |||||||||||
2016 | 2015 | ||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | ||||||||
(in millions of U.S. dollars) | |||||||||||
Communications, Media & Technology | $ | 966 | 15% | $ | 871 | 14% | |||||
Financial Services | 1,128 | 16 | 1,079 | 16 | |||||||
Health & Public Service | 807 | 13 | 701 | 13 | |||||||
Products | 1,282 | 15 | 1,082 | 14 | |||||||
Resources | 628 | 13 | 702 | 14 | |||||||
Total | $ | 4,810 | 14.6% | $ | 4,436 | 14.3% |
Fiscal | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Operating Income and Operating Margin as Reported (GAAP) | Operating Income and Operating Margin Excluding Pension Settlement Charge (Non-GAAP) | ||||||||||||||||||||||
Operating Income | Operating Margin | Operating Income (GAAP) | Pension Settlement Charge (1) | Operating Income (Adjusted) | Operating Margin (Adjusted) | Increase (Decrease) | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Communications, Media & Technology | $ | 966 | 15% | $ | 871 | $ | 13 | $ | 884 | 14% | $ | 82 | |||||||||||
Financial Services | 1,128 | 16 | 1,079 | 13 | 1,093 | 16 | 35 | ||||||||||||||||
Health & Public Service | 807 | 13 | 701 | 12 | 713 | 13 | 94 | ||||||||||||||||
Products | 1,282 | 15 | 1,082 | 16 | 1,098 | 14 | 184 | ||||||||||||||||
Resources | 628 | 13 | 702 | 11 | 713 | 14 | (85 | ) | |||||||||||||||
Total | $ | 4,810 | 14.6% | $ | 4,436 | $ | 64 | $ | 4,500 | 14.5% | $ | 310 |
(1) | Represents Pension settlement charge related to lump sum cash payment from plan assets offered to eligible former employees. |
• | Communications, Media & Technology operating income increased primarily due to higher contract profitability and consulting revenue growth. |
• | Financial Services operating income increased primarily due to consulting revenue growth. |
• | Health & Public Service operating income increased due to revenue growth and higher contract profitability. |
• | Products operating income increased due to very significant consulting revenue growth and lower sales and marketing costs as a percentage of net revenues. |
• | Resources operating income decreased due to lower outsourcing contract profitability, partially offset by lower sales and marketing costs as a percentage of net revenues. |
Fiscal | Percent Increase (Decrease) U.S. Dollars | Percent Increase Local Currency | Percent of Total Net Revenues for Fiscal | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||
OPERATING GROUPS | |||||||||||||||||||
Communications, Media & Technology | $ | 6,349 | $ | 5,924 | 7 | % | 16 | % | 20 | % | 20 | % | |||||||
Financial Services | 6,635 | 6,511 | 2 | 11 | 21 | 22 | |||||||||||||
Health & Public Service | 5,463 | 5,022 | 9 | 12 | 18 | 17 | |||||||||||||
Products | 7,596 | 7,395 | 3 | 10 | 25 | 24 | |||||||||||||
Resources | 4,989 | 5,135 | (3 | ) | 5 | 16 | 17 | ||||||||||||
Other | 17 | 15 | n/m | n/m | — | — | |||||||||||||
TOTAL NET REVENUES | 31,048 | 30,002 | 3 | % | 11 | % | 100 | % | 100 | % | |||||||||
Reimbursements | 1,866 | 1,872 | — | ||||||||||||||||
TOTAL REVENUES | $ | 32,914 | $ | 31,875 | 3 | % | |||||||||||||
GEOGRAPHIC REGIONS (1) | |||||||||||||||||||
North America | $ | 14,209 | $ | 12,797 | 11 | % | 12 | % | 46 | % | 43 | % | |||||||
Europe | 10,930 | 11,255 | (3 | ) | 10 | 35 | 37 | ||||||||||||
Growth Markets | 5,909 | 5,951 | (1 | ) | 11 | 19 | 20 | ||||||||||||
TOTAL NET REVENUES | $ | 31,048 | $ | 30,002 | 3 | % | 11 | % | 100 | % | 100 | % | |||||||
TYPE OF WORK | |||||||||||||||||||
Consulting | $ | 16,204 | $ | 15,738 | 3 | % | 11 | % | 52 | % | 52 | % | |||||||
Outsourcing | 14,844 | 14,265 | 4 | 11 | 48 | 48 | |||||||||||||
TOTAL NET REVENUES | $ | 31,048 | $ | 30,002 | 3 | % | 11 | % | 100 | % | 100 | % |
(1) | Effective September 1, 2014, we revised the reporting of our geographic regions as follows: North America (the United States and Canada); Europe; and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia and Turkey). Prior period amounts have been reclassified to conform to the current period presentation. |
• | Communications, Media & Technology net revenues increased 16% in local currency. Outsourcing revenues reflected significant growth, driven by growth across all industry groups and geographic regions, led by Communications in all geographic regions as well as Media & Entertainment in North America. Consulting revenues reflected significant growth, driven by growth across all industry groups and geographic regions, led by Communications in North America and Growth Markets. |
• | Financial Services net revenues increased 11% in local currency. Consulting revenues reflected significant growth, driven by growth across both industry groups and all geographic regions, led by Banking & Capital Markets in Europe. Outsourcing revenue growth was driven by Banking & Capital Markets and Insurance in Europe and Banking & Capital Markets in Growth Markets. These outsourcing increases were partially offset by a decline in Banking & Capital Markets in North America. |
• | Health & Public Service net revenues increased 12% in local currency. Outsourcing revenues reflected very significant growth, led by Health and Public Service in North America. Consulting revenue growth was driven by Health and Public Service in North America. |
• | Products net revenues increased 10% in local currency. Consulting revenues reflected very strong growth, driven by growth across all industry groups and geographic regions, led by Consumer Goods, Retail & Travel Services and Industrial in Europe. Outsourcing revenues reflected strong growth, driven by all geographic regions and in most industry groups, led by Consumer Goods, Retail & Travel Services. These outsourcing increases were partially offset by a decline in Industrial in Europe. |
• | Resources net revenues increased 5% in local currency. Outsourcing revenues reflected strong growth, driven by Utilities across all geographic regions, Chemicals & Natural Resources in Growth Markets and Energy in Europe. Consulting revenues reflected slight growth, driven by Utilities across all geographic regions and Chemicals & Natural Resources in Europe. These consulting increases were largely offset by declines in Energy in Europe and North America and Chemicals & Natural Resources in Growth Markets. |
• | North America net revenues increased 12% in local currency, driven by the United States. |
• | Europe net revenues increased 10% in local currency, driven by Germany, the United Kingdom, Spain, the Netherlands, Italy and France. |
• | Growth Markets net revenues increased 11% in local currency, driven by Japan, Brazil and Australia, partially offset by declines in South Korea and Singapore. |
Fiscal | |||||||||||
2015 | 2014 | ||||||||||
Operating Income | Operating Margin | Operating Income | Operating Margin | ||||||||
(in millions of U.S. dollars) | |||||||||||
Communications, Media & Technology | $ | 871 | 14% | $ | 770 | 13% | |||||
Financial Services | 1,079 | 16 | 957 | 15 | |||||||
Health & Public Service | 701 | 13 | 679 | 14 | |||||||
Products | 1,082 | 14 | 992 | 13 | |||||||
Resources | 702 | 14 | 902 | 18 | |||||||
Total | $ | 4,436 | 14.3% | $ | 4,301 | 14.3% |
Fiscal | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Operating Income and Operating Margin Excluding Pension Settlement Charge (Non-GAAP) | Operating Income and Operating Margin as Reported (GAAP) | ||||||||||||||||||||||
Operating Income (GAAP) | Pension Settlement Charge (1) | Operating Income (Adjusted) | Operating Margin (Adjusted) | Operating Income | Operating Margin | Increase (Decrease) | |||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
Communications, Media & Technology | $ | 871 | $ | 13 | $ | 884 | 14% | $ | 770 | 13% | $ | 114 | |||||||||||
Financial Services | 1,079 | 13 | 1,093 | 16 | 957 | 15 | 136 | ||||||||||||||||
Health & Public Service | 701 | 12 | 713 | 13 | 679 | 14 | 34 | ||||||||||||||||
Products | 1,082 | 16 | 1,098 | 14 | 992 | 13 | 106 | ||||||||||||||||
Resources | 702 | 11 | 713 | 14 | 902 | 18 | (190 | ) | |||||||||||||||
Total | $ | 4,436 | $ | 64 | $ | 4,500 | 14.5% | $ | 4,301 | 14.3% | $ | 200 |
(1) | Represents Pension settlement charge related to lump sum cash payment from plan assets offered to eligible former employees. |
• | Communications, Media & Technology operating income increased primarily due to revenue growth and lower sales and marketing costs as a percentage of net revenues. |
• | Financial Services operating income increased primarily due to consulting revenue growth, lower sales and marketing costs as a percentage of net revenues and higher contract profitability. |
• | Health & Public Service operating income increased due to outsourcing revenue growth. |
• | Products operating income increased due to higher contract profitability and consulting revenue growth. |
• | Resources operating income decreased due to lower contract profitability. |
• | 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. |
Fiscal | |||||||||||||||
2016 | 2015 | 2014 | 2016 to 2015 Change | ||||||||||||
(in millions of U.S. dollars) | |||||||||||||||
Net cash provided by (used in): | |||||||||||||||
Operating activities | $ | 4,575 | $ | 4,092 | $ | 3,486 | $ | 483 | |||||||
Investing activities | (610 | ) | (1,170 | ) | (1,056 | ) | 560 | ||||||||
Financing activities | (3,397 | ) | (3,202 | ) | (3,165 | ) | (195 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (23 | ) | (280 | ) | 25 | 257 | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 545 | $ | (561 | ) | $ | (711 | ) | $ | 1,105 |
Facility Amount | Borrowings Under Facilities | ||||||
(in millions of U.S. dollars) | |||||||
Syndicated loan facility (1) | $ | 1,000 | $ | — | |||
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2) | 516 | — | |||||
Local guaranteed and non-guaranteed lines of credit (3) | 165 | — | |||||
Total | $ | 1,681 | $ | — |
(1) | On December 22, 2015, we replaced our $1.0 billion syndicated loan facility maturing on October 31, 2016 with a $1.0 billion syndicated loan facility maturing on December 22, 2020. This facility provides unsecured, revolving borrowing capacity for general working capital purposes, including the issuance of letters of credit. We continue to be in compliance with relevant covenant terms. The facility is subject to annual commitment fees. As of August 31, 2016 and 2015, we had no borrowings under either the current or the prior loan facility. |
(2) | We maintain separate, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local-currency financing for the majority of our operations. Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets. As of August 31, 2016 and 2015, we had no borrowings under these facilities. |
(3) | We also maintain local guaranteed and non-guaranteed lines of credit for those locations that cannot access our global facilities. As of August 31, 2016 and 2015, we had no borrowings under these various facilities. |
Shares | Amount | |||||
(in millions of U.S. dollars, except share amounts) | ||||||
Accenture Holdings plc ordinary shares | 612,513 | $ | 68 | |||
Accenture Canada Holdings Inc. exchangeable shares | 40,709 | 5 | ||||
Total | 653,222 | $ | 72 |
Payments due by period | ||||||||||||||||||||
Contractual Cash Obligations (1) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||
Long-term debt | $ | 27 | $ | 3 | $ | 7 | $ | 8 | $ | 9 | ||||||||||
Operating leases | 2,817 | 517 | 821 | 577 | 903 | |||||||||||||||
Retirement obligations (2) | 106 | 11 | 22 | 22 | 51 | |||||||||||||||
Purchase obligations and other commitments (3) | 145 | 56 | 89 | — | — | |||||||||||||||
Total | $ | 3,096 | $ | 586 | $ | 940 | $ | 607 | $ | 962 |
(1) | The liability related to unrecognized tax benefits has been excluded from the contractual obligations table because a reasonable estimate of the timing and amount of cash outflows from future tax settlements cannot be determined. For additional information, see Note 8 (Income Taxes) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” |
(2) | Amounts represent projected payments under certain unfunded retirement plans for former pre-incorporation partners. Given these plans are unfunded, we pay these benefits directly. These plans were eliminated for active partners after May 15, 2001. |
(3) | Other commitments include, among other things, information technology, software support and maintenance obligations, as well as 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. Amounts shown do not include recourse that we may have to recover termination fees or penalties from clients. |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
i. | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
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. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Name | Age | Position | ||
Pierre Nanterme | 57 | Chief Executive Officer and Director | ||
David P. Rowland | 55 | Chief Financial Officer and Director | ||
Gianfranco Casati | 57 | Group Chief Executive—Growth Markets | ||
Richard P. Clark | 55 | Chief Accounting Officer and Corporate Controller | ||
Johan (Jo) G. Deblaere | 54 | Chief Operating Officer | ||
Chad T. Jerdee | 49 | General Counsel and Chief Compliance Officer | ||
Daniel T. London | 52 | Group Chief Executive—Health & Public Service | ||
Richard A. Lumb | 55 | Group Chief Executive—Financial Services | ||
Jean-Marc Ollagnier | 54 | Group Chief Executive—Resources | ||
Robert E. Sell | 54 | Group Chief Executive—Communications, Media & Technology | ||
Ellyn J. Shook | 53 | Chief Leadership Officer and Chief Human Resources Officer | ||
Julie Spellman Sweet | 49 | Group Chief Executive—North America | ||
Alexander M. van ’t Noordende | 53 | Group Chief Executive—Products |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted- Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in 1st Column) | ||||||||
Equity compensation plans approved by shareholders: | |||||||||||
2001 Share Incentive Plan | 439,242 | (1) | $ | 35.417 | — | ||||||
Amended and Restated 2010 Share Incentive Plan | 22,478,425 | (2) | 48.105 | 23,167,880 | |||||||
Amended and Restated 2010 Employee Share Purchase Plan | — | N/A | 47,420,425 | ||||||||
Equity compensation plans not approved by shareholders | — | N/A | — | ||||||||
Total | 22,917,667 | 70,588,305 |
(1) | Consists of 419,683 restricted share units and 19,559 stock options. |
(2) | Consists of 22,474,674 restricted share units and 3,751 stock options. |
Exhibit Number | Exhibit | |
2.1 | Common Draft Terms of Merger in respect of the proposed merger of Accenture Holdings plc and Accenture SCA, dated May 18, 2015 (incorporated by reference to Annex A of Accenture SCA’s definitive Information Statement on Schedule 14C filed on May 18, 2015) | |
3.1 | Memorandum and Articles of Association and Deed Poll of Accenture Holdings plc (incorporated by reference to Exhibit 3.1 to Accenture Holdings plc’s 8-K12G3 filed on August 26, 2015 (the “8-K12G3”) | |
3.2 | Certificate of Incorporation of Accenture Holdings plc (incorporated by reference to Exhibit 3.2 to the 8-K12G3) | |
3.3 | Certificate of Incorporation on Change of Name to Accenture Holdings plc (incorporated by reference to Exhibit 3.3 to the 8-K12G3) | |
3.4 | 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 3, 2016) | |
3.5 | 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”)) | |
10.1 | 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)(the “February 28, 2005 10-Q”)) | |
10.2 | Assumption Agreement of the Amended and Restated Voting Agreement, dated September 1, 2009 (incorporated by reference to Exhibit 10.4 to the 8-K12B) | |
10.3* | 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 (the “April 19, 2001 Form S-1”)) | |
10.4 | 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) | |
10.5* | 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) | |
10.6* | Amended and Restated 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.1 to Accenture plc’s 8-K filed on February 3, 2016) | |
10.7* | 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) | |
10.8 | Form of Accenture SCA Transfer Rights Agreement, dated as of April 18, 2001, among Accenture SCA and the covered persons party thereto as amended and restated as of February 3, 2005 (incorporated by reference to Exhibit 10.2 to the February 28, 2005 10-Q) | |
10.9* | Form of Non-Competition Agreement, dated as of April 18, 2001, among Accenture SCA and certain employees (incorporated by reference to Exhibit 10.7 to the April 19, 2001 Form S-1) | |
10.10 | Form of Letter Agreement, dated April 18, 2001, between Accenture SCA and certain shareholders of Accenture SCA (incorporated by reference to Exhibit 10.8 to the April 19, 2001 Form S-1) |
10.11 | 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 (File No. 333-59194) filed on July 2, 2001 (the “July 2, 2001 Form S-1/A”)) | |
10.12 | 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) | |
10.13* | Employment Agreement between Accenture SAS and Pierre Nanterme dated as of June 20, 2013 (incorporated by reference to Exhibit 10.2 to the Accenture plc May 31, 2013 10-Q) | |
10.14* | Form of Employment Agreement of executive officers in the United States (incorporated by reference to Exhibit 10.3 to the Accenture plc February 28, 2013 10-Q (the “February 28, 2013 10-Q”)) | |
10.15* | Form of Employment Agreement of executive officers in the United Kingdom (incorporated by reference to Exhibit 10.16 to the Accenture plc August 31, 2013 10-K) | |
10.16* | Form of Employment Agreement of executive officers in Singapore (incorporated by reference to Exhibit 10.17 to the Accenture plc August 31, 2015 10-K (the “August 31, 2015 10-K”)) | |
10.17 | 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) | |
10.18 | 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) | |
10.19 | 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) | |
10.20 | 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) | |
10.21* | 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 10.4 to the Accenture plc February 29, 2016 10-Q (the “February 29, 2016 10-Q”)) | |
10.22* | Form of Key Executive Performance-Based Award Restricted Share Unit Agreement pursuant to Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.2 to the Accenture plc February 28, 2015 10-Q (the “February 28, 2015 10-Q”)) | |
10.23* | Form of Amendment to Senior Officer Performance Equity Award Restricted Share Unit Agreement pursuant to Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the November 30, 2014 10-Q) | |
10.24* | Form of Senior Officer Performance Equity Award Restricted Share Unit Agreement pursuant to Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2014 10-Q) | |
10.25* | Form of Senior Officer Performance Equity Award Restricted Share Unit Agreement in France pursuant to Accenture Ltd 2001 Share Incentive Plan (incorporated by reference to Exhibit 10.29 to the Accenture plc August 31, 2012 10-K) | |
10.26* | 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 10.5 to the February 29, 2016 10-Q) | |
10.27* | Form of Accenture Leadership Performance Equity Award Restricted Share Unit Agreement pursuant to Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.3 to the February 28, 2015 10-Q) | |
10.28* | 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 10.6 to the February 29, 2016 10-Q) | |
10.29* | Form of Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement pursuant to Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.4 to the February 28, 2015 10-Q) | |
10.30* | Form of Amendment to the Senior Officer Performance Equity Award Restricted Share Unit Agreement, the Accenture Leadership Performance Equity Award Restricted Share Unit Agreement and the Voluntary Equity Investment Program Matching Grant Restricted Share Unit Agreement (incorporated by reference to Exhibit 10.31 to the Accenture plc August 31, 2016 10-K (the “August 31, 2016 10-K”)) | |
10.31* | Form of Restricted Share Unit Agreement for director grants pursuant to the Amended and Restated Accenture plc 2010 Share Incentive Plan (incorporated by reference to Exhibit 10.7 to the February 29, 2016 10-Q) | |
10.32* | Form of Restricted Share Unit Agreement for director grants pursuant to Accenture Ltd 2001 Share Incentive Plan (incorporated by reference to Exhibit 10.1 to the Accenture Ltd February 29, 2008 10-Q) |
10.33* | Accenture LLP Leadership Separation Benefits Plan (incorporated by reference to Exhibit 10.34 to the August 31, 2016 10-K) | |
10.34* | Description of Global Annual Bonus Plan (incorporated by reference to Exhibit 10.49 to the August 31, 2013 10-K) | |
10.35* | Form of Indemnification Agreement, between Accenture International Sàrl and the indemnitee party thereto (incorporated by reference to Exhibit 10.5 to the 8-K12B) | |
10.36* | Form of Indemnification Agreement, between Accenture Holdings plc, Accenture LLP and the indemnitee party thereto (incorporated by reference to Exhibit 10.1 of the 8-K12G3) | |
21.1 | Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 to the Accenture plc August 31, 2016 10-K) | |
24.1 | Power of Attorney (included on the signature page hereto) | |
31.1 | Certification of the Chief 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) | |
31.2 | Certification of the Chief 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) | |
32.1 | Certification of the Chief 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) | |
32.2 | Certification of the Chief 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) | |
101 | The following financial information from Accenture Holdings plc’s Annual Report on Form 10-K for the fiscal year ended August 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of August 31, 2016 and August 31, 2015, (ii) Consolidated Income Statements for the years ended August 31, 2016, 2015 and 2014, (iii) Consolidated Statements of Comprehensive Income for the years ended August 31, 2016, 2015 and 2014, (iv) Consolidated Shareholders’ Equity Statement for the years ended August 31, 2016, 2015 and 2014, (v) Consolidated Cash Flows Statements for the years ended August 31, 2016, 2015 and 2014, and (vi) the Notes to Consolidated Financial Statements |
(*) | Indicates management contract or compensatory plan or arrangement. |
ACCENTURE HOLDINGS PLC | ||
By: | /s/ JOEL UNRUCH | |
Name: Joel Unruch | ||
Title: Assistant Secretary | ||
Signature | Title | |
/s/ PIERRE NANTERME | Chief Executive Officer and Director | |
Pierre Nanterme | (principal executive officer) | |
/s/ DAVID P. ROWLAND | Chief Financial Officer and Director | |
David P. Rowland | (principal financial officer) | |
/s/ RICHARD P. CLARK | Chief Accounting Officer | |
Richard P. Clark | (principal accounting officer) | |
Page | ||
Consolidated Financial Statements as of August 31, 2016 and 2015 and for the years ended August 31, 2016, 2015 and 2014: | ||
August 31, 2016 | August 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 4,905,609 | $ | 4,360,766 | |||
Short-term investments | 2,875 | 2,448 | |||||
Receivables from clients, net | 4,072,180 | 3,840,920 | |||||
Unbilled services, net | 2,150,219 | 1,884,504 | |||||
Other current assets | 845,339 | 611,436 | |||||
Total current assets | 11,976,222 | 10,700,074 | |||||
NON-CURRENT ASSETS: | |||||||
Unbilled services, net | 68,145 | 15,501 | |||||
Investments | 198,633 | 45,027 | |||||
Property and equipment, net | 956,542 | 801,884 | |||||
Goodwill | 3,609,437 | 2,929,833 | |||||
Deferred contract costs | 733,219 | 655,482 | |||||
Deferred income taxes, net | 2,077,312 | 2,089,928 | |||||
Other non-current assets | 989,494 | 964,918 | |||||
Total non-current assets | 8,632,782 | 7,502,573 | |||||
TOTAL ASSETS | $ | 20,609,004 | $ | 18,202,647 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt and bank borrowings | $ | 2,773 | $ | 1,848 | |||
Accounts payable | 1,280,821 | 1,151,464 | |||||
Deferred revenues | 2,364,728 | 2,251,617 | |||||
Accrued payroll and related benefits | 4,040,751 | 3,687,468 | |||||
Accrued consumption taxes | 358,359 | 319,350 | |||||
Income taxes payable | 362,963 | 516,827 | |||||
Other accrued liabilities | 468,529 | 562,432 | |||||
Total current liabilities | 8,878,924 | 8,491,006 | |||||
NON-CURRENT LIABILITIES: | |||||||
Long-term debt | 24,457 | 25,587 | |||||
Deferred revenues | 754,812 | 524,455 | |||||
Retirement obligation | 1,494,789 | 1,108,623 | |||||
Deferred income taxes, net | 111,020 | 91,372 | |||||
Income taxes payable | 850,709 | 996,077 | |||||
Other non-current liabilities | 304,917 | 317,956 | |||||
Total non-current liabilities | 3,540,704 | 3,064,070 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS’ EQUITY: | |||||||
Deferred shares, par value 1.00 euros per share, 40,000 shares authorized and issued as of August 31, 2016 and August 31, 2015 | 46 | 46 | |||||
Ordinary shares, par value .000001 euros per share, 40,000,000,000 shares authorized, 1,020,207,101 shares issued as of August 31, 2016 and August 31, 2015 | 1 | 1 | |||||
Restricted share units (related to Accenture plc Class A ordinary shares) | 1,004,128 | 1,031,203 | |||||
Additional paid-in capital | 7,393,195 | 7,594,609 | |||||
Treasury shares, at cost: 357,832,987 ordinary shares and 350,417,202 Class I common shares as of August 31, 2016 and August 31, 2015, respectively | (18,560,302 | ) | (17,709,448 | ) | |||
Investment in Accenture plc shares, at cost, 13,816,959 shares as of August 31, 2016 and August 31, 2015 | (456,864 | ) | (456,864 | ) | |||
Retained earnings | 20,204,932 | 17,395,055 | |||||
Accumulated other comprehensive loss | (1,690,982 | ) | (1,435,984 | ) | |||
Total Accenture Holdings plc shareholders’ equity | 7,894,154 | 6,418,618 | |||||
Noncontrolling interests | 295,222 | 228,953 | |||||
Total shareholders’ equity | 8,189,376 | 6,647,571 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 20,609,004 | $ | 18,202,647 |
2016 | 2015 | 2014 | |||||||||
REVENUES: | |||||||||||
Revenues before reimbursements (“Net revenues”) | $ | 32,882,723 | $ | 31,047,931 | $ | 30,002,394 | |||||
Reimbursements | 1,914,938 | 1,866,493 | 1,872,284 | ||||||||
Revenues | 34,797,661 | 32,914,424 | 31,874,678 | ||||||||
OPERATING EXPENSES: | |||||||||||
Cost of services: | |||||||||||
Cost of services before reimbursable expenses | 22,605,296 | 21,238,692 | 20,317,928 | ||||||||
Reimbursable expenses | 1,914,938 | 1,866,493 | 1,872,284 | ||||||||
Cost of services | 24,520,234 | 23,105,185 | 22,190,212 | ||||||||
Sales and marketing | 3,580,439 | 3,505,045 | 3,582,833 | ||||||||
General and administrative costs | 1,886,543 | 1,803,943 | 1,819,136 | ||||||||
Pension settlement charge | — | 64,382 | — | ||||||||
Reorganization benefits, net | — | — | (18,015 | ) | |||||||
Total operating expenses | 29,987,216 | 28,478,555 | 27,574,166 | ||||||||
OPERATING INCOME | 4,810,445 | 4,435,869 | 4,300,512 | ||||||||
Interest income | 30,484 | 33,991 | 30,370 | ||||||||
Interest expense | (16,258 | ) | (14,578 | ) | (17,621 | ) | |||||
Other expense, net | (69,922 | ) | (44,752 | ) | (15,560 | ) | |||||
Gain on sale of businesses | 848,823 | — | — | ||||||||
INCOME BEFORE INCOME TAXES | 5,603,572 | 4,410,530 | 4,297,701 | ||||||||
Provision for income taxes | 1,253,969 | 1,136,741 | 1,121,743 | ||||||||
NET INCOME | 4,349,603 | 3,273,789 | 3,175,958 | ||||||||
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. | (7,690 | ) | (6,142 | ) | (6,584 | ) | |||||
Net income attributable to noncontrolling interests – other | (42,151 | ) | (41,283 | ) | (47,353 | ) | |||||
NET INCOME ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | $ | 4,299,762 | $ | 3,226,364 | $ | 3,122,021 | |||||
Cash dividends per share | $ | 2.20 | $ | 2.04 | $ | 1.86 |
2016 | 2015 | 2014 | |||||||||
NET INCOME | $ | 4,349,603 | $ | 3,273,789 | $ | 3,175,958 | |||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||||||||
Foreign currency translation | (63,476 | ) | (500,153 | ) | 95,587 | ||||||
Defined benefit plans | (298,727 | ) | 7,874 | (111,997 | ) | ||||||
Cash flow hedges | 105,849 | (17,874 | ) | 208,375 | |||||||
Marketable securities | 1,356 | (1,634 | ) | — | |||||||
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | (254,998 | ) | (511,787 | ) | 191,965 | ||||||
Other comprehensive loss attributable to noncontrolling interests | (2,631 | ) | (18,077 | ) | (1,984 | ) | |||||
COMPREHENSIVE INCOME | $ | 4,091,974 | $ | 2,743,925 | $ | 3,365,939 | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | $ | 4,044,764 | $ | 2,714,577 | $ | 3,313,986 | |||||
Comprehensive income attributable to noncontrolling interests | 47,210 | 29,348 | 51,953 | ||||||||
COMPREHENSIVE INCOME | $ | 4,091,974 | $ | 2,743,925 | $ | 3,365,939 |
Deferred Shares | Ordinary Shares | Class I Common Shares | Restricted Share Units (related to Accenture plc Class A ordinary shares) | Additional Paid-in Capital | Treasury Shares | Investment in Accenture plc | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture Holdings plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2013 | $ | — | — | $ | — | — | $ | 1,704,162 | 1,049,032 | $ | 875,156 | $ | 5,747,846 | $ | (15,268,879 | ) | (358,808 | ) | $ | (456,864 | ) | (13,817 | ) | $ | 13,788,956 | $ | (1,116,162 | ) | $ | 5,274,215 | $ | 153,614 | $ | 5,427,829 | ||||||||||||||||||||||||||||
Net income | 3,122,021 | 3,122,021 | 53,937 | 3,175,958 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 191,965 | 191,965 | (1,984 | ) | 189,981 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit on share-based compensation plans | 78,421 | 78,421 | 78,421 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 625,792 | 45,509 | 671,301 | 671,301 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares | (5,166 | ) | (2,207,955 | ) | (28,062 | ) | (2,213,121 | ) | (4,629 | ) | (2,217,750 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Accenture Holdings plc ordinary shares related to employee share programs | (634,619 | ) | 326,052 | 524,933 | 17,430 | 216,366 | 447 | 216,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | 55,257 | (1,307,472 | ) | (1,252,215 | ) | (2,701 | ) | (1,254,916 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,370 | (19,064 | ) | (17,694 | ) | 15,394 | (2,300 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2014 | $— | — | $ | — | — | $ | 1,704,162 | 1,049,032 | $ | 921,586 | $ | 6,194,032 | $ | (16,951,901 | ) | (369,440 | ) | $ | (456,864 | ) | (13,817 | ) | $ | 15,584,441 | $ | (924,197 | ) | $ | 6,071,259 | $ | 214,078 | $ | 6,285,337 |
ACCENTURE HOLDINGS PLC CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENTS - (continued) For the Years Ended August 31, 2016, 2015 and 2014 (In thousands of U.S. dollars and share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Shares | Ordinary Shares | Class I Common Shares | Restricted Share Units (related to Accenture plc Class A ordinary shares) | Additional Paid-in Capital | Treasury Shares | Investment in Accenture plc | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture Holdings plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 3,226,364 | 3,226,364 | 47,425 | 3,273,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (511,787 | ) | (511,787 | ) | (18,077 | ) | (529,864 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit on share-based compensation plans | 202,868 | 202,868 | 202,868 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 634,195 | 46,134 | 680,329 | 680,329 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares | (12,704 | ) | (2,148,834 | ) | (24,001 | ) | (2,161,538 | ) | (4,030 | ) | (2,165,568 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Accenture Holdings plc deferred shares | 46 | 40 | (46 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of Accenture SCA Class I common shares | (46,826 | ) | (28,825 | ) | (851,751 | ) | 898,577 | 28,825 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Accenture SCA Class I common shares for Accenture Holdings plc ordinary shares | 1 | 1,020,207 | (1,657,336 | ) | (1,020,207 | ) | 1,657,335 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Accenture Holdings plc ordinary shares related to employee share programs | (575,979 | ) | 349,491 | 492,710 | 14,199 | 266,222 | 506 | 266,728 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | 51,401 | (1,402,234 | ) | (1,350,833 | ) | (2,638 | ) | (1,353,471 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 9,250 | (13,516 | ) | (4,266 | ) | (8,311 | ) | (12,577 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2015 | $46 | 40 | $ | 1 | 1,020,207 | $ | — | — | $ | 1,031,203 | $ | 7,594,609 | $ | (17,709,448 | ) | (350,417 | ) | $ | (456,864 | ) | (13,817 | ) | $ | 17,395,055 | $ | (1,435,984 | ) | $ | 6,418,618 | $ | 228,953 | $ | 6,647,571 |
ACCENTURE HOLDINGS PLC CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENTS - (continued) For the Years Ended August 31, 2016, 2015 and 2014 (In thousands of U.S. dollars and share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Shares | Ordinary Shares | Class I Common Shares | Restricted Share Units (related to Accenture plc Class A ordinary shares) | Additional Paid-in Capital | Treasury Shares | Investment in Accenture plc | Retained Earnings | Accumulated Other Comprehensive Loss | Total Accenture Holdings plc Shareholders’ Equity | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | $ | No. Shares | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 4,299,762 | 4,299,762 | 49,841 | 4,349,603 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (254,998 | ) | (254,998 | ) | (2,631 | ) | (257,629 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax benefit on share-based compensation plans | 112,562 | 112,562 | 112,562 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 701,923 | 56,253 | 758,176 | 758,176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases/redemptions of Accenture Holdings plc ordinary shares and Accenture Canada Holdings Inc. exchangeable shares | (648 | ) | (2,189,709 | ) | (20,602 | ) | (2,190,357 | ) | (3,901 | ) | (2,194,258 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of Accenture Holdings plc ordinary shares related to employee share programs | (785,141 | ) | (373,413 | ) | 1,338,855 | 13,186 | 180,301 | 325 | 180,626 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends | 51,137 | (1,486,694 | ) | (1,435,557 | ) | (2,581 | ) | (1,438,138 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 5,006 | 3,832 | (3,191 | ) | 5,647 | 25,216 | 30,863 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of August 31, 2016 | $46 | 40 | $ | 1 | 1,020,207 | $ | — | — | $ | 1,004,128 | $ | 7,393,195 | $ | (18,560,302 | ) | (357,833 | ) | $ | (456,864 | ) | (13,817 | ) | $ | 20,204,932 | $ | (1,690,982 | ) | $ | 7,894,154 | $ | 295,222 | $ | 8,189,376 |
2016 | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 4,349,603 | $ | 3,273,789 | $ | 3,175,958 | |||||
Adjustments to reconcile Net income to Net cash provided by operating activities — | |||||||||||
Depreciation, amortization and asset impairments | 729,052 | 645,923 | 620,743 | ||||||||
Reorganization benefits, net | — | — | (18,015 | ) | |||||||
Share-based compensation expense | 758,176 | 680,329 | 671,301 | ||||||||
Gain on sale of businesses | (848,823 | ) | — | — | |||||||
Deferred income taxes, net | 65,940 | (459,109 | ) | (74,092 | ) | ||||||
Other, net | (53,706 | ) | (237,876 | ) | 104,950 | ||||||
Change in assets and liabilities, net of acquisitions — | |||||||||||
Receivables from clients, net | (177,156 | ) | (158,990 | ) | (464,639 | ) | |||||
Unbilled services, current and non-current, net | (192,912 | ) | (268,135 | ) | (239,893 | ) | |||||
Other current and non-current assets | (655,876 | ) | (400,524 | ) | (343,392 | ) | |||||
Accounts payable | 72,626 | 113,548 | 72,526 | ||||||||
Deferred revenues, current and non-current | 302,738 | 182,836 | 93,927 | ||||||||
Accrued payroll and related benefits | 386,018 | 586,548 | (138,618 | ) | |||||||
Income taxes payable, current and non-current | (251,255 | ) | 105,037 | 108,860 | |||||||
Other current and non-current liabilities | 90,690 | 28,761 | (83,531 | ) | |||||||
Net cash provided by operating activities | 4,575,115 | 4,092,137 | 3,486,085 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Proceeds from sales of property and equipment | 4,220 | 5,784 | 5,526 | ||||||||
Purchases of property and equipment | (496,566 | ) | (395,017 | ) | (321,870 | ) | |||||
Purchases of businesses and investments, net of cash acquired | (932,542 | ) | (791,704 | ) | (740,067 | ) | |||||
Proceeds from the sale of businesses and investments, net of cash transferred | 814,538 | 10,553 | — | ||||||||
Net cash used in investing activities | (610,350 | ) | (1,170,384 | ) | (1,056,411 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of ordinary and deferred shares | 180,626 | 266,728 | 216,813 | ||||||||
Purchases of shares | (2,194,258 | ) | (2,165,568 | ) | (2,217,750 | ) | |||||
Proceeds from (repayments of) long-term debt, net | (1,059 | ) | 701 | 543 | |||||||
Cash dividends paid | (1,438,138 | ) | (1,353,471 | ) | (1,254,916 | ) | |||||
Excess tax benefits from share-based payment arrangements | 92,285 | 84,026 | 114,293 | ||||||||
Other, net | (36,389 | ) | (34,712 | ) | (24,399 | ) | |||||
Net cash used in financing activities | (3,396,933 | ) | (3,202,296 | ) | (3,165,416 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (22,989 | ) | (279,996 | ) | 25,162 | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 544,843 | (560,539 | ) | (710,580 | ) | ||||||
CASH AND CASH EQUIVALENTS, beginning of period | 4,360,766 | 4,921,305 | 5,631,885 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 4,905,609 | $ | 4,360,766 | $ | 4,921,305 | |||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||
Interest paid | $ | 16,285 | $ | 14,810 | $ | 17,595 | |||||
Income taxes paid | $ | 1,425,480 | $ | 1,433,538 | $ | 962,976 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Computers, related equipment and software | 2 to 7 years |
Furniture and fixtures | 5 to 10 years |
Leasehold improvements | Lesser of lease term or 15 years |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Training costs | $ | 940,509 | $ | 841,440 | $ | 786,517 | |||||
Research and development costs | 643,407 | 625,541 | 639,513 | ||||||||
Advertising costs | 80,601 | 79,899 | 87,559 | ||||||||
Provision for (release of) doubtful accounts (1) | 15,312 | (10,336 | ) | (12,867 | ) |
(1) | For additional information, see “Client Receivables, Unbilled Services and Allowances”. |
2. | ACCUMULATED OTHER COMPREHENSIVE LOSS |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Foreign currency translation | |||||||||||
Beginning balance | $ | (839,479 | ) | $ | (339,326 | ) | $ | (434,913 | ) | ||
Foreign currency translation | (67,884 | ) | (524,729 | ) | 91,170 | ||||||
Income tax benefit | 2,120 | 6,520 | 2,236 | ||||||||
Portion attributable to noncontrolling interests | 2,288 | 18,056 | 2,181 | ||||||||
Foreign currency translation, net of tax | (63,476 | ) | (500,153 | ) | 95,587 | ||||||
Ending balance | (902,955 | ) | (839,479 | ) | (339,326 | ) | |||||
Defined benefit plans | |||||||||||
Beginning balance | (560,303 | ) | (568,177 | ) | (456,180 | ) | |||||
Actuarial losses | (481,331 | ) | (77,228 | ) | (177,243 | ) | |||||
Pension settlement | — | 64,382 | — | ||||||||
Prior service costs arising during the period | 1,561 | (79 | ) | (468 | ) | ||||||
Reclassifications into net periodic pension and post-retirement expense | 26,639 | 27,538 | 20,026 | ||||||||
Income tax benefit (expense) | 153,869 | (6,725 | ) | 45,459 | |||||||
Portion attributable to noncontrolling interests | 535 | (14 | ) | 229 | |||||||
Defined benefit plans, net of tax | (298,727 | ) | 7,874 | (111,997 | ) | ||||||
Ending balance (1) | (859,030 | ) | (560,303 | ) | (568,177 | ) | |||||
Cash flow hedges | |||||||||||
Beginning balance | (34,568 | ) | (16,694 | ) | (225,069 | ) | |||||
Unrealized gains (losses) | 180,196 | (17,207 | ) | 222,100 | |||||||
Reclassification adjustments into Cost of services | (23,004 | ) | (15,207 | ) | 101,026 | ||||||
Income tax (expense) benefit | (51,153 | ) | 14,508 | (114,325 | ) | ||||||
Portion attributable to noncontrolling interests | (190 | ) | 32 | (426 | ) | ||||||
Cash flow hedges, net of tax | 105,849 | (17,874 | ) | 208,375 | |||||||
Ending balance (2) | 71,281 | (34,568 | ) | (16,694 | ) | ||||||
Marketable securities | |||||||||||
Beginning balance | (1,634 | ) | — | — | |||||||
Unrealized gain (loss) | 2,231 | (2,693 | ) | — | |||||||
Income tax (expense) benefit | (873 | ) | 1,056 | — | |||||||
Portion attributable to noncontrolling interests | (2 | ) | 3 | — | |||||||
Marketable securities, net of tax | 1,356 | (1,634 | ) | — | |||||||
Ending balance | (278 | ) | (1,634 | ) | — | ||||||
Accumulated other comprehensive loss | $ | (1,690,982 | ) | $ | (1,435,984 | ) | $ | (924,197 | ) |
(1) | As of August 31, 2016, $50,410 of net losses is expected to be reclassified into net periodic pension expense recognized in Cost of services, Sales and marketing and General and administrative costs in the next twelve months. |
(2) | As of August 31, 2016, $61,135 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. |
3. | PROPERTY AND EQUIPMENT |
August 31, 2016 | August 31, 2015 | ||||||
Buildings and land | $ | 2,914 | $ | 2,939 | |||
Computers, related equipment and software | 1,428,134 | 1,386,226 | |||||
Furniture and fixtures | 354,523 | 310,971 | |||||
Leasehold improvements | 900,996 | 750,716 | |||||
Property and equipment, gross | 2,686,567 | 2,450,852 | |||||
Total accumulated depreciation | (1,730,025 | ) | (1,648,968 | ) | |||
Property and equipment, net | $ | 956,542 | $ | 801,884 |
4. | BUSINESS COMBINATIONS AND DIVESTITURES |
5. | GOODWILL AND INTANGIBLE ASSETS |
August 31, 2014 | Additions/ Adjustments | Foreign Currency Translation | August 31, 2015 | Additions/ Adjustments | Foreign Currency Translation | August 31, 2016 | |||||||||||||||||||||
Communications, Media & Technology | $ | 338,855 | $ | 42,797 | $ | (16,828 | ) | $ | 364,824 | $ | 194,365 | $ | (12,623 | ) | $ | 546,566 | |||||||||||
Financial Services | 707,093 | 35,060 | (28,723 | ) | 713,430 | 149,811 | (8,865 | ) | 854,376 | ||||||||||||||||||
Health & Public Service | 375,052 | 218,461 | (4,620 | ) | 588,893 | 130,787 | (3,831 | ) | 715,849 | ||||||||||||||||||
Products | 836,858 | 198,274 | (33,364 | ) | 1,001,768 | 134,607 | (23,384 | ) | 1,112,991 | ||||||||||||||||||
Resources | 138,036 | 144,844 | (21,962 | ) | 260,918 | 123,613 | (4,876 | ) | 379,655 | ||||||||||||||||||
Total | $ | 2,395,894 | $ | 639,436 | $ | (105,497 | ) | $ | 2,929,833 | $ | 733,183 | $ | (53,579 | ) | $ | 3,609,437 |
August 31, 2016 | August 31, 2015 | |||||||||||||||||||||||
Intangible Asset Class | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Customer-related | $ | 532,753 | $ | (159,774 | ) | $ | 372,979 | $ | 449,219 | $ | (120,841 | ) | $ | 328,378 | ||||||||||
Technology | 100,363 | (48,270 | ) | 52,093 | 104,824 | (44,988 | ) | 59,836 | ||||||||||||||||
Patents | 118,906 | (57,951 | ) | 60,955 | 114,979 | (54,064 | ) | 60,915 | ||||||||||||||||
Other | 43,804 | (19,680 | ) | 24,124 | 31,480 | (15,702 | ) | 15,778 | ||||||||||||||||
Total | $ | 795,826 | $ | (285,675 | ) | $ | 510,151 | $ | 700,502 | $ | (235,595 | ) | $ | 464,907 |
Fiscal Year | Estimated Amortization | |||
2017 | $ | 107,291 | ||
2018 | 92,066 | |||
2019 | 74,617 | |||
2020 | 65,658 | |||
2021 | 45,747 | |||
Thereafter | 124,772 | |||
Total | $ | 510,151 |
6. | DERIVATIVE FINANCIAL INSTRUMENTS |
August 31, 2016 | August 31, 2015 | ||||||
Assets | |||||||
Cash Flow Hedges | |||||||
Other current assets | $ | 71,955 | $ | 28,282 | |||
Other non-current assets | 45,683 | 13,503 | |||||
Other Derivatives | |||||||
Other current assets | 11,965 | 18,233 | |||||
Total assets | $ | 129,603 | $ | 60,018 | |||
Liabilities | |||||||
Cash Flow Hedges | |||||||
Other accrued liabilities | $ | 10,820 | $ | 48,683 | |||
Other non-current liabilities | 5,547 | 48,746 | |||||
Other Derivatives | |||||||
Other accrued liabilities | 17,407 | 31,862 | |||||
Total liabilities | $ | 33,774 | $ | 129,291 | |||
Total fair value | $ | 95,829 | $ | (69,273 | ) | ||
Total notional value | $ | 7,604,486 | $ | 6,363,110 |
August 31, 2016 | August 31, 2015 | ||||||
Net derivative assets | $ | 114,785 | $ | 36,661 | |||
Net derivative liabilities | 18,956 | 105,934 | |||||
Total fair value | $ | 95,829 | $ | (69,273 | ) |
7. | BORROWINGS AND INDEBTEDNESS |
Facility Amount | Borrowings Under Facilities | ||||||
Syndicated loan facility (1) | $ | 1,000,000 | $ | — | |||
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2) | 515,873 | — | |||||
Local guaranteed and non-guaranteed lines of credit (3) | 164,692 | — | |||||
Total | $ | 1,680,565 | $ | — |
(1) | On December 22, 2015, the Company replaced its $1,000,000 syndicated loan facility maturing on October 31, 2016 with a $1,000,000 syndicated loan facility maturing on December 22, 2020. This facility provides unsecured, revolving borrowing capacity for general working capital purposes, including the issuance of letters of credit. Financing is provided under this facility at the prime rate or at the London Interbank Offered Rate plus a spread. This facility requires the Company to: (1) limit liens placed on its assets to (a) liens incurred in the ordinary course of business (subject to certain qualifications) and (b) other liens securing obligations not to exceed 30% of its consolidated assets; and (2) maintain an Adjusted Indebtedness-to-EBITDA ratio not exceeding 1.75 to 1.00. The Company continues to be in compliance with relevant covenant terms. The facility is subject to annual commitment fees. As of August 31, 2016 and 2015, the Company had no borrowings under either the current or the prior loan facility. |
(2) | The Company maintains separate, uncommitted and unsecured multicurrency revolving credit facilities. These facilities provide local currency financing for the majority of the Company’s operations. Interest rate terms on the revolving facilities are at market rates prevailing in the relevant local markets. As of August 31, 2016 and 2015, the Company had no borrowings under these facilities. |
(3) | The Company also maintains local guaranteed and non-guaranteed lines of credit for those locations that cannot access the Company’s global facilities. As of August 31, 2016 and 2015, the Company had no borrowings under these various facilities. |
8. | INCOME TAXES |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current taxes | |||||||||||
U.S. federal | $ | 314,121 | $ | 617,488 | $ | 397,722 | |||||
U.S. state and local | 38,255 | 72,133 | 46,854 | ||||||||
Non-U.S. | 835,653 | 906,229 | 751,259 | ||||||||
Total current tax expense | 1,188,029 | 1,595,850 | 1,195,835 | ||||||||
Deferred taxes | |||||||||||
U.S. federal | 8,588 | (94,621 | ) | 26,941 | |||||||
U.S. state and local | 1,056 | (11,245 | ) | 2,911 | |||||||
Non-U.S. | 56,296 | (353,243 | ) | (103,944 | ) | ||||||
Total deferred tax expense (benefit) | 65,940 | (459,109 | ) | (74,092 | ) | ||||||
Total | $ | 1,253,969 | $ | 1,136,741 | $ | 1,121,743 |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
U.S. sources | $ | 1,047,909 | $ | 1,321,511 | $ | 1,119,627 | |||||
Non-U.S. sources | 4,555,663 | 3,089,019 | 3,178,074 | ||||||||
Total | $ | 5,603,572 | $ | 4,410,530 | $ | 4,297,701 |
Fiscal | ||||||||
2016 | 2015 | 2014 | ||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
U.S. state and local taxes, net | 1.1 | 1.3 | 1.3 | |||||
Non-U.S. operations taxed at lower rates | (12.0 | ) | (15.4 | ) | (12.1 | ) | ||
Final determinations (1) | (2.1 | ) | (5.1 | ) | (1.7 | ) | ||
Other net activity in unrecognized tax benefits | 2.7 | 3.2 | 3.0 | |||||
Change in indefinite reinvestment assertion | (0.6 | ) | 5.6 | — | ||||
Divestitures | (3.4 | ) | — | — | ||||
Other, net | 1.7 | 1.2 | 0.6 | |||||
Effective income tax rate | 22.4 | % | 25.8 | % | 26.1 | % |
(1) | Final determinations include final agreements with tax authorities and expirations of statutes of limitations. |
August 31, 2016 | August 31, 2015 | ||||||
Deferred tax assets | |||||||
Pensions | $ | 306,776 | $ | 278,944 | |||
Revenue recognition | 113,890 | 112,113 | |||||
Compensation and benefits | 797,707 | 558,127 | |||||
Share-based compensation | 262,508 | 262,040 | |||||
Tax credit carryforwards | 898,073 | 914,716 | |||||
Net operating loss carryforwards | 131,018 | 119,463 | |||||
Depreciation and amortization | 97,015 | 97,218 | |||||
Deferred amortization deductions | 687,351 | 687,406 | |||||
Indirect effects of unrecognized tax benefits | 354,544 | 357,031 | |||||
Other | 139,105 | 157,449 | |||||
3,787,987 | 3,544,507 | ||||||
Valuation allowance | (980,196 | ) | (963,874 | ) | |||
Total deferred tax assets | 2,807,791 | 2,580,633 | |||||
Deferred tax liabilities | |||||||
Revenue recognition | (109,749 | ) | (75,352 | ) | |||
Depreciation and amortization | (205,431 | ) | (167,467 | ) | |||
Investments in subsidiaries | (330,673 | ) | (213,351 | ) | |||
Other | (195,646 | ) | (125,907 | ) | |||
Total deferred tax liabilities | (841,499 | ) | (582,077 | ) | |||
Net deferred tax assets | $ | 1,966,292 | $ | 1,998,556 |
Fiscal | |||||||
2016 | 2015 | ||||||
Balance, beginning of year | $ | 997,935 | $ | 1,333,606 | |||
Additions for tax positions related to the current year | 163,097 | 155,637 | |||||
Additions for tax positions related to prior years | 126,353 | 97,694 | |||||
Reductions for tax positions related to prior years | (63,782 | ) | (470,147 | ) | |||
Statute of limitations expirations | (208,295 | ) | (28,116 | ) | |||
Settlements with tax authorities | (3,703 | ) | (33,743 | ) | |||
Foreign currency translation | (25,850 | ) | (56,996 | ) | |||
Balance, end of year | $ | 985,755 | $ | 997,935 |
9. | RETIREMENT AND PROFIT SHARING PLANS |
Pension Plans | Postretirement Plans | |||||||||||||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2014 | August 31, 2016 | August 31, 2015 | August 31, 2014 | |||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. and Non-U.S. Plans | U.S. and Non-U.S. Plans | U.S. and Non-U.S. Plans | ||||||||||||||||||
Discount rate for determining projected benefit obligation | 3.50 | % | 2.40 | % | 4.50 | % | 3.47 | % | 4.25 | % | 3.53 | % | 3.51 | % | 4.46 | % | 4.25 | % | ||||||||
Discount rate for determining net periodic pension expense | 4.50 | % | 3.47 | % | 4.25 | % | 3.53 | % | 5.00 | % | 4.18 | % | 4.46 | % | 4.25 | % | 4.96 | % | ||||||||
Long term rate of return on plan assets | 4.75 | % | 3.99 | % | 5.50 | % | 4.55 | % | 5.50 | % | 4.79 | % | 4.54 | % | 5.05 | % | 4.87 | % | ||||||||
Rate of increase in future compensation for determining projected benefit obligation | 2.57 | % | 3.47 | % | 3.65 | % | 3.56 | % | 3.65 | % | 3.75 | % | N/A | N/A | N/A | |||||||||||
Rate of increase in future compensation for determining net periodic pension expense | 3.60 | % | 3.56 | % | 3.65 | % | 3.75 | % | 3.60 | % | 3.79 | % | N/A | N/A | N/A |
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. and Non-U.S. Plans | U.S. and Non-U.S. Plans | ||||||||||||||||||
Reconciliation of benefit obligation | |||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 1,635,744 | $ | 1,439,225 | $ | 1,909,651 | $ | 1,519,007 | $ | 403,095 | $ | 375,312 | |||||||||||
Service cost | 7,305 | 72,502 | 8,899 | 67,471 | 18,565 | 17,784 | |||||||||||||||||
Interest cost | 63,470 | 43,827 | 76,969 | 48,199 | 15,618 | 15,602 | |||||||||||||||||
Participant contributions | — | 9,857 | — | 6,081 | — | — | |||||||||||||||||
Acquisitions/divestitures/transfers | — | 41,719 | — | (364 | ) | — | — | ||||||||||||||||
Amendments | — | (1,561 | ) | — | 79 | — | — | ||||||||||||||||
Curtailment | — | (689 | ) | — | — | 84 | — | ||||||||||||||||
Pension settlement | — | — | (279,571 | ) | — | — | — | ||||||||||||||||
Special termination benefits | — | 1,332 | — | — | — | — | |||||||||||||||||
Actuarial (gain) loss | 371,294 | 261,252 | (35,478 | ) | 14,618 | 74,213 | 14,180 | ||||||||||||||||
Benefits paid | (47,807 | ) | (52,549 | ) | (44,726 | ) | (39,685 | ) | (11,143 | ) | (11,186 | ) | |||||||||||
Exchange rate impact | — | (56,805 | ) | — | (176,181 | ) | 532 | (8,597 | ) | ||||||||||||||
Benefit obligation, end of year | $ | 2,030,006 | $ | 1,758,110 | $ | 1,635,744 | $ | 1,439,225 | $ | 500,964 | $ | 403,095 | |||||||||||
Reconciliation of fair value of plan assets | |||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 1,596,186 | $ | 982,471 | $ | 1,883,789 | $ | 1,032,378 | $ | 24,643 | $ | 29,484 | |||||||||||
Actual return on plan assets | 242,112 | 97,638 | 25,580 | 39,797 | 3,856 | 92 | |||||||||||||||||
Acquisitions/divestitures/transfers | — | 24,052 | — | — | — | — | |||||||||||||||||
Employer contributions | 10,944 | 71,046 | 11,114 | 52,033 | 9,774 | 6,253 | |||||||||||||||||
Participant contributions | — | 9,857 | — | 6,081 | — | — | |||||||||||||||||
Pension settlement | — | — | (279,571 | ) | — | — | — | ||||||||||||||||
Benefits paid | (47,807 | ) | (52,549 | ) | (44,726 | ) | (39,685 | ) | (11,143 | ) | (11,186 | ) | |||||||||||
Exchange rate impact | — | (51,361 | ) | — | (108,133 | ) | — | — | |||||||||||||||
Fair value of plan assets, end of year | $ | 1,801,435 | $ | 1,081,154 | $ | 1,596,186 | $ | 982,471 | $ | 27,130 | $ | 24,643 | |||||||||||
Funded status, end of year | $ | (228,571 | ) | $ | (676,956 | ) | $ | (39,558 | ) | $ | (456,754 | ) | $ | (473,834 | ) | $ | (378,452 | ) | |||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Non-current assets | $ | — | $ | 59,335 | $ | 102,686 | $ | 64,690 | $ | — | $ | — | |||||||||||
Current liabilities | (11,091 | ) | (16,691 | ) | (11,148 | ) | (10,287 | ) | (1,579 | ) | (1,416 | ) | |||||||||||
Non-current liabilities | (217,480 | ) | (719,600 | ) | (131,096 | ) | (511,157 | ) | (472,255 | ) | (377,036 | ) | |||||||||||
Funded status, end of year | $ | (228,571 | ) | $ | (676,956 | ) | $ | (39,558 | ) | $ | (456,754 | ) | $ | (473,834 | ) | $ | (378,452 | ) |
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. and Non-U.S. Plans | U.S. and Non-U.S. Plans | ||||||||||||||||||
Net loss | $ | 592,873 | $ | 480,408 | $ | 397,065 | $ | 295,098 | $ | 143,777 | $ | 75,224 | |||||||||||
Prior service (credit) cost | — | (6,860 | ) | — | (7,281 | ) | 31,569 | 35,173 | |||||||||||||||
Accumulated other comprehensive loss, pre-tax | $ | 592,873 | $ | 473,548 | $ | 397,065 | $ | 287,817 | $ | 175,346 | $ | 110,397 |
August 31, 2016 | August 31, 2015 | ||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||
Accumulated benefit obligation | $ | 2,017,437 | $ | 1,592,598 | $ | 1,626,972 | $ | 1,313,946 |
Pension Plans | Postretirement Plans | ||||||||||||||||||||||
August 31, 2016 | August 31, 2015 | August 31, 2016 | August 31, 2015 | ||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. and Non-U.S. Plans | U.S. and Non-U.S. Plans | ||||||||||||||||||
Projected benefit obligation in excess of plan assets | |||||||||||||||||||||||
Projected benefit obligation | $ | 2,030,006 | $ | 1,400,510 | $ | 142,244 | $ | 757,741 | $ | 500,964 | $ | 403,095 | |||||||||||
Fair value of plan assets | 1,801,435 | 664,220 | — | 236,297 | 27,130 | 24,643 |
August 31, 2016 | August 31, 2015 | ||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||
Accumulated benefit obligation in excess of plan assets | |||||||||||||||
Accumulated benefit obligation | $ | 2,017,437 | $ | 1,233,952 | $ | 142,244 | $ | 629,524 | |||||||
Fair value of plan assets | 1,801,435 | 627,738 | — | 204,076 |
2017 Target Allocation | 2016 | 2015 | |||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | ||||||||||||
Asset Category | |||||||||||||||||
Equity securities | — | % | 36 | % | — | % | 29 | % | 10 | % | 30 | % | |||||
Debt securities | 77 | 51 | 75 | 58 | 87 | 56 | |||||||||||
Cash and short-term investments | 23 | 3 | 25 | 2 | 3 | 3 | |||||||||||
Insurance contracts | — | 7 | — | 7 | — | 6 | |||||||||||
Other | — | 3 | — | 4 | — | 5 | |||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
• | 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. |
U.S. Plans | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Fixed Income | |||||||||||||||
U.S. government, state and local debt securities | — | 359,583 | — | 359,583 | |||||||||||
Non-U.S. government debt securities | — | 38,232 | — | 38,232 | |||||||||||
U.S. corporate debt securities | — | 614,136 | — | 614,136 | |||||||||||
Non-U.S. corporate debt securities | — | 79,124 | — | 79,124 | |||||||||||
Mutual fund debt securities | 286,360 | — | — | 286,360 | |||||||||||
Cash and short-term investments | — | 451,130 | — | 451,130 | |||||||||||
Total | $ | 286,360 | $ | 1,542,205 | $ | — | $ | 1,828,565 | |||||||
Non-U.S. Plans | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity | |||||||||||||||
Mutual fund equity securities | $ | — | $ | 311,324 | $ | — | $ | 311,324 | |||||||
Fixed Income | |||||||||||||||
Non-U.S. government debt securities | 91,745 | — | — | 91,745 | |||||||||||
Mutual fund debt securities | 15,608 | 524,472 | — | 540,080 | |||||||||||
Cash and short-term investments | 19,382 | 4,048 | — | 23,430 | |||||||||||
Insurance contracts | — | 72,525 | — | 72,525 | |||||||||||
Other | — | 42,050 | — | 42,050 | |||||||||||
Total | $ | 126,735 | $ | 954,419 | $ | — | $ | 1,081,154 |
Pension Plans | Postretirement Plans | ||||||||||
U.S. Plans (1) | Non-U.S. Plans | U.S. and Non-U.S. Plans | |||||||||
2017 | $ | 46,881 | $ | 44,537 | $ | 10,259 | |||||
2018 | 49,865 | 50,094 | 11,469 | ||||||||
2019 | 53,277 | 55,964 | 12,598 | ||||||||
2020 | 56,950 | 66,225 | 13,942 | ||||||||
2021 | 61,361 | 75,166 | 15,830 | ||||||||
2022-2026 | 373,921 | 416,507 | 110,756 |
10. | SHARE-BASED COMPENSATION |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Total share-based compensation expense included in Net income | $ | 758,176 | $ | 680,329 | $ | 671,301 | |||||
Income tax benefit related to share-based compensation included in Net income | 236,423 | 212,019 | 206,007 |
Number of Restricted Share Units | Weighted Average Grant-Date Fair Value | |||||
Nonvested balance as of August 31, 2015 | 24,733,581 | $ | 71.83 | |||
Granted (1) | 9,699,688 | 105.16 | ||||
Vested (2) | (10,987,988 | ) | 72.50 | |||
Forfeited | (1,481,576 | ) | 77.82 | |||
Nonvested balance as of August 31, 2016 | 21,963,705 | $ | 85.81 |
(1) | The weighted average grant-date fair value for restricted share units granted for fiscal 2016, 2015 and 2014 was $105.16, $89.63 and $80.61, respectively. |
(2) | The total grant-date fair value of restricted share units vested for fiscal 2016, 2015 and 2014 was $796,620, $581,936 and $628,999, respectively. |
11. | SHAREHOLDERS’ EQUITY |
12. | MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY |
Shares | Amount | |||||
Accenture Holdings plc ordinary shares | 612,513 | $ | 67,641 | |||
Accenture Canada Holdings Inc. exchangeable shares | 40,709 | 4,552 | ||||
Total | 653,222 | $ | 72,193 |
Dividend Per Share | Accenture Holdings plc Ordinary Shares | Accenture Canada Holdings Inc. Exchangeable Shares | Total Cash Outlay | |||||||||||||||||
Dividend Payment Date | Record Date | Cash Outlay | Record Date | Cash Outlay | ||||||||||||||||
November 13, 2015 | $ | 1.10 | October 13, 2015 | $ | 719,382 | October 13, 2015 | $ | 1,294 | $ | 720,676 | ||||||||||
May 13, 2016 | 1.10 | April 12, 2016 | 716,175 | April 12, 2016 | 1,287 | 717,462 | ||||||||||||||
Total Dividends | $ | 1,435,557 | $ | 2,581 | $ | 1,438,138 |
13. | LEASE COMMITMENTS |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Rental expense | $ | 578,149 | $ | 547,206 | $ | 539,711 | |||||
Sublease income from third parties | (26,403 | ) | (27,293 | ) | (29,482 | ) |
Operating Lease Payments | Operating Sublease Income | ||||||
2017 | $ | 516,622 | $ | (16,147 | ) | ||
2018 | 445,853 | (15,410 | ) | ||||
2019 | 375,393 | (13,996 | ) | ||||
2020 | 318,828 | (12,324 | ) | ||||
2021 | 257,949 | (11,074 | ) | ||||
Thereafter | 902,659 | (50,350 | ) | ||||
$ | 2,817,304 | $ | (119,301 | ) |
15. | SEGMENT REPORTING |
Fiscal | |||||||||||||||||||||||||||
2016 | Communications, Media & Technology | Financial Services | Health & Public Service | Products | Resources | Other | Total | ||||||||||||||||||||
Net revenues | $ | 6,615,717 | $ | 7,031,053 | $ | 5,986,878 | $ | 8,395,038 | $ | 4,838,963 | $ | 15,074 | $ | 32,882,723 | |||||||||||||
Depreciation and amortization (1) | 141,356 | 139,518 | 134,788 | 206,806 | 106,584 | — | 729,052 | ||||||||||||||||||||
Operating income | 965,574 | 1,127,750 | 807,012 | 1,282,461 | 627,648 | — | 4,810,445 | ||||||||||||||||||||
Net assets as of August 31 (2) | 923,764 | 123,827 | 892,569 | 1,281,551 | 820,273 | (137,761 | ) | 3,904,223 | |||||||||||||||||||
2015 | |||||||||||||||||||||||||||
Net revenues | $ | 6,349,372 | $ | 6,634,771 | $ | 5,462,550 | $ | 7,596,051 | $ | 4,988,627 | $ | 16,560 | $ | 31,047,931 | |||||||||||||
Depreciation and amortization (1) | 152,329 | 128,413 | 115,010 | 168,731 | 81,440 | — | 645,923 | ||||||||||||||||||||
Operating income | 871,388 | 1,079,397 | 700,960 | 1,082,351 | 701,773 | — | 4,435,869 | ||||||||||||||||||||
Net assets as of August 31 (2) | 798,623 | 186,739 | 812,278 | 1,158,953 | 723,113 | (59,371 | ) | 3,620,335 | |||||||||||||||||||
2014 | |||||||||||||||||||||||||||
Net revenues | $ | 5,923,821 | $ | 6,511,228 | $ | 5,021,692 | $ | 7,394,980 | $ | 5,135,309 | $ | 15,364 | $ | 30,002,394 | |||||||||||||
Depreciation and amortization (1) | 136,029 | 139,759 | 101,345 | 169,704 | 73,906 | — | 620,743 | ||||||||||||||||||||
Operating income | 770,166 | 957,347 | 678,663 | 991,844 | 902,492 | — | 4,300,512 | ||||||||||||||||||||
Net assets as of August 31 (2) | 926,952 | 128,179 | 791,084 | 974,546 | 735,048 | (127,396 | ) | 3,428,413 |
(1) | Amounts include depreciation on property and equipment and amortization of intangible assets controlled by each operating segment, as well as an allocation for amounts they do not directly control. |
(2) | The Company does not allocate total assets by operating segment. Operating segment assets directly attributed to an operating segment and provided to the chief operating decision maker include Receivables from clients, current and non-current Unbilled services, Deferred contract costs and current and non-current Deferred revenues. |
Fiscal | North America | Europe | Growth Markets | Total | |||||||||||
2016 | |||||||||||||||
Net revenues | $ | 15,653,290 | $ | 11,448,361 | $ | 5,781,072 | $ | 32,882,723 | |||||||
Reimbursements | 970,248 | 635,362 | 309,328 | 1,914,938 | |||||||||||
Revenues | 16,623,538 | 12,083,723 | 6,090,400 | 34,797,661 | |||||||||||
Property and equipment, net as of August 31 | 244,351 | 220,500 | 491,691 | 956,542 | |||||||||||
2015 | |||||||||||||||
Net revenues | $ | 14,209,387 | $ | 10,929,572 | $ | 5,908,972 | $ | 31,047,931 | |||||||
Reimbursements | 891,443 | 628,342 | 346,708 | 1,866,493 | |||||||||||
Revenues | 15,100,830 | 11,557,914 | 6,255,680 | 32,914,424 | |||||||||||
Property and equipment, net as of August 31 | 230,359 | 179,925 | 391,600 | 801,884 | |||||||||||
2014 (1) | |||||||||||||||
Net revenues | $ | 12,796,846 | $ | 11,254,953 | $ | 5,950,595 | $ | 30,002,394 | |||||||
Reimbursements | 882,481 | 624,219 | 365,584 | 1,872,284 | |||||||||||
Revenues | 13,679,327 | 11,879,172 | 6,316,179 | 31,874,678 | |||||||||||
Property and equipment, net as of August 31 | 240,886 | 190,450 | 362,108 | 793,444 |
(1) | Effective September 1, 2014, we revised the reporting of Accenture's geographic regions as follows: North America (the United States and Canada); Europe; and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia and Turkey). Fiscal 2014 amounts have been reclassified to conform to the current period presentation. |
August 31, 2016 | August 31, 2015 | August 31, 2014 | ||||||
United States | 25 | % | 28 | % | 29 | % | ||
India | 25 | 26 | 22 | |||||
Ireland | 4 | 2 | 2 |
Fiscal | |||||||||||
2016 | 2015 | 2014 | |||||||||
Consulting | $ | 17,867,891 | $ | 16,203,915 | $ | 15,737,661 | |||||
Outsourcing | 15,014,832 | 14,844,016 | 14,264,733 | ||||||||
Net revenues | 32,882,723 | 31,047,931 | 30,002,394 | ||||||||
Reimbursements | 1,914,938 | 1,866,493 | 1,872,284 | ||||||||
Revenues | $ | 34,797,661 | $ | 32,914,424 | $ | 31,874,678 |
16. | QUARTERLY DATA (unaudited) |
Fiscal 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Annual | |||||||||||||||
Net revenues | $ | 8,013,163 | $ | 7,945,565 | $ | 8,434,757 | $ | 8,489,238 | $ | 32,882,723 | ||||||||||
Reimbursements | 452,821 | 451,488 | 534,287 | 476,342 | 1,914,938 | |||||||||||||||
Revenues | 8,465,984 | 8,397,053 | 8,969,044 | 8,965,580 | 34,797,661 | |||||||||||||||
Cost of services before reimbursable expenses | 5,450,644 | 5,575,749 | 5,745,205 | 5,833,698 | 22,605,296 | |||||||||||||||
Reimbursable expenses | 452,821 | 451,488 | 534,287 | 476,342 | 1,914,938 | |||||||||||||||
Cost of services | 5,903,465 | 6,027,237 | 6,279,492 | 6,310,040 | 24,520,234 | |||||||||||||||
Operating income | 1,221,260 | 1,088,044 | 1,305,943 | 1,195,198 | 4,810,445 | |||||||||||||||
Net income | 868,681 | 1,399,858 | 950,283 | 1,130,781 | 4,349,603 | |||||||||||||||
Net income attributable to Accenture Holdings plc | 856,938 | 1,387,417 | 938,140 | 1,117,267 | 4,299,762 |
Fiscal 2015 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Annual | ||||||||||||||||
Net revenues | $ | 7,895,715 | $ | 7,493,329 | $ | 7,770,382 | $ | 7,888,505 | $ | 31,047,931 | |||||||||||
Reimbursements | 447,542 | 438,261 | 504,684 | 476,006 | 1,866,493 | ||||||||||||||||
Revenues | 8,343,257 | 7,931,590 | 8,275,066 | 8,364,511 | 32,914,424 | ||||||||||||||||
Cost of services before reimbursable expenses | 5,356,425 | 5,252,690 | 5,245,477 | 5,384,100 | 21,238,692 | ||||||||||||||||
Reimbursable expenses | 447,542 | 438,261 | 504,684 | 476,006 | 1,866,493 | ||||||||||||||||
Cost of services | 5,803,967 | 5,690,951 | 5,750,161 | 5,860,106 | 23,105,185 | ||||||||||||||||
Operating income | 1,187,709 | 1,021,033 | 1,133,519 | — | 1,093,608 | 4,435,869 | |||||||||||||||
Net income | 892,242 | 743,192 | 850,230 | 788,125 | 3,273,789 | ||||||||||||||||
Net income attributable to Accenture Holdings plc | 880,380 | 730,356 | 838,449 | 777,179 | 3,226,364 |
1. | I have reviewed this Annual Report on Form 10-K of Accenture Holdings plc for the fiscal year ended August 31, 2016, as filed with the Securities and Exchange Commission on the date hereof; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 28, 2016 | /s/ PIERRE NANTERME | |
Pierre Nanterme | ||
Chief Executive Officer of Accenture Holdings plc | ||
(principal executive officer) |
1. | I have reviewed this Annual Report on Form 10-K of Accenture Holdings plc for the fiscal year ended August 31, 2016, as filed with the Securities and Exchange Commission on the date hereof; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 28, 2016 | /s/ DAVID P. ROWLAND | |
David P. Rowland | ||
Chief Financial Officer of Accenture Holdings plc | ||
(principal financial officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: October 28, 2016 | /s/ PIERRE NANTERME | |
Pierre Nanterme | ||
Chief Executive Officer of Accenture Holdings plc | ||
(principal executive officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: October 28, 2016 | /s/ DAVID P. ROWLAND | |
David P. Rowland | ||
Chief Financial Officer of Accenture Holdings plc | ||
(principal financial officer) |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Oct. 14, 2016 |
Feb. 29, 2016 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ACCENTURE HOLDINGS PLC | ||
Entity Central Index Key | 0001647339 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 2,872,038,135 | ||
Entity Common Stock, Shares Outstanding | 1,020,207,101 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
Deferred shares [Member] | ||
Common stock, par value (in euros per share) | € 1.00 | € 1.00 |
Common Stock, Shares, Issued | 40,000 | 40,000 |
Common Stock, shares authorized | 40,000 | 40,000 |
Holdings ordinary shares [Member] | ||
Common stock, par value (in euros per share) | € 0.000001 | € 0.000001 |
Common Stock, Shares, Issued | 1,020,207,101 | 1,020,207,101 |
Common Stock, shares authorized | 40,000,000,000 | 40,000,000,000 |
Treasury Shares | ||
Treasury shares, at cost | 357,832,987 | 350,417,202 |
investment in accenture plc [Member] | ||
Investment in Accenture plc, shares | 13,816,959 | 13,816,959 |
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
REVENUES: | |||
Revenues before reimbursements (“Net revenues”) | $ 32,882,723 | $ 31,047,931 | $ 30,002,394 |
Reimbursements | 1,914,938 | 1,866,493 | 1,872,284 |
Revenues | 34,797,661 | 32,914,424 | 31,874,678 |
Cost of services: | |||
Cost of services before reimbursable expenses | 22,605,296 | 21,238,692 | 20,317,928 |
Reimbursable expenses | 1,914,938 | 1,866,493 | 1,872,284 |
Cost of services | 24,520,234 | 23,105,185 | 22,190,212 |
Sales and marketing | 3,580,439 | 3,505,045 | 3,582,833 |
General and administrative costs | 1,886,543 | 1,803,943 | 1,819,136 |
Pension settlement charge | 0 | 64,382 | 0 |
Reorganization benefits, net | 0 | 0 | (18,015) |
Total operating expenses | 29,987,216 | 28,478,555 | 27,574,166 |
OPERATING INCOME | 4,810,445 | 4,435,869 | 4,300,512 |
Interest income | 30,484 | 33,991 | 30,370 |
Interest expense | (16,258) | (14,578) | (17,621) |
Other expense, net | (69,922) | (44,752) | (15,560) |
Gain on sale of businesses | 848,823 | 0 | 0 |
INCOME BEFORE INCOME TAXES | 5,603,572 | 4,410,530 | 4,297,701 |
Provision for income taxes | 1,253,969 | 1,136,741 | 1,121,743 |
NET INCOME | 4,349,603 | 3,273,789 | 3,175,958 |
Net income attributable to noncontrolling interests in Accenture Canada Holdings Inc. | (7,690) | (6,142) | (6,584) |
Net income attributable to noncontrolling interests – other | (42,151) | (41,283) | (47,353) |
NET INCOME ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | $ 4,299,762 | $ 3,226,364 | $ 3,122,021 |
Cash dividends per share | $ 2.20 | $ 2.04 | $ 1.86 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Statement - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,349,603 | $ 3,273,789 | $ 3,175,958 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Foreign currency translation | (63,476) | (500,153) | 95,587 |
Defined benefit plans | (298,727) | 7,874 | (111,997) |
Cash flow hedges | 105,849 | (17,874) | 208,375 |
Marketable securities | 1,356 | (1,634) | 0 |
OTHER COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | (254,998) | (511,787) | 191,965 |
Other comprehensive loss attributable to noncontrolling interests | (2,631) | (18,077) | (1,984) |
COMPREHENSIVE INCOME | 4,091,974 | 2,743,925 | 3,365,939 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | 4,044,764 | 2,714,577 | 3,313,986 |
Comprehensive income attributable to noncontrolling interests | 47,210 | 29,348 | 51,953 |
COMPREHENSIVE INCOME | $ 4,091,974 | $ 2,743,925 | $ 3,365,939 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Description and Accounting Policies | Description of Business Accenture Holdings plc is one of the world’s leading organizations providing consulting, technology and outsourcing services and operates globally with one common brand and business model designed to enable it to provide clients around the world with the same high level of service. Drawing on a combination of industry and functional expertise, technology capabilities and alliances, and global delivery resources, Accenture Holdings plc seeks to provide differentiated services that help clients measurably improve their business performance and create sustainable value for their customers and stakeholders. Accenture Holdings plc’s global delivery model enables it to provide an end-to-end delivery capability by drawing on its global resources to deliver high-quality, cost-effective solutions to clients. The Merger On April 10, 2015, Accenture Holdings plc was incorporated in Ireland, as a public limited company, in order to further consolidate Accenture’s presence in Ireland. On August 26, 2015, Accenture SCA merged with and into Accenture Holdings plc, with Accenture Holdings plc as the surviving entity. This merger was a transaction between entities under common control and had no effect on the Company’s Consolidated Financial Statements. Basis of Presentation The Consolidated Financial Statements include the accounts of Accenture Holdings plc (the successor registrant to Accenture SCA) and its controlled subsidiary companies (collectively, the “Company”). Accenture plc (“Accenture”) is the holding company of the Company. Accenture’s only business is to hold the Company’s ordinary shares in, and to act as the controlling shareholder of, its subsidiary, the Company. Accenture operates its business through the Company, controls the Company’s management and operations and consolidates the Company’s results in its Consolidated Financial Statements. All references to Accenture Holdings plc included in this report with respect to periods prior to August 26, 2015 reflect the activity and/or balances of Accenture SCA (the predecessor registrant of Accenture Holdings plc). The shares of Accenture Canada Holdings Inc. held by persons other than the Company are treated as a noncontrolling interest in the Consolidated Financial Statements. All references to years, unless otherwise noted, refer to the Company’s fiscal year, which ends on August 31. For example, a reference to “fiscal 2016” means the 12-month period that ended on August 31, 2016. All references to quarters, unless otherwise noted, refer to the quarters of the Company’s 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 the Company may undertake in the future, actual results may be different from those estimates. Revenue Recognition Revenues from contracts for technology integration consulting services where the Company designs/redesigns, builds and implements new or enhanced systems applications and related processes for its clients are recognized on the percentage-of-completion method, which involves calculating the percentage of services provided during the reporting period compared to the total estimated services to be provided over the duration of the contract. Contracts for technology integration consulting services generally span six months to two years. Estimated revenues used in applying the percentage-of-completion method include estimated incentives for which achievement of defined goals is deemed probable. This method is followed where reasonably dependable estimates of revenues and costs can be made. Estimates of total contract revenues and costs are continuously monitored during the term of the contract, and recorded revenues and estimated costs are subject to revision as the contract progresses. Such revisions may result in increases or decreases to revenues and income and are reflected in the Consolidated Financial Statements in the periods in which they are first identified. If the Company’s estimates indicate that a contract loss will occur, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated total direct and indirect costs of the contract exceed the estimated total revenues that will be generated by the contract and are included in Cost of services and classified in Other accrued liabilities. Revenues from contracts for non-technology integration consulting services with fees based on time and materials or cost-plus are recognized as the services are performed and amounts are earned. The Company considers amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable, and collectibility is reasonably assured. In such contracts, the Company’s efforts, measured by time incurred, typically are provided in less than a year and represent the contractual milestones or output measure, which is the contractual earnings pattern. For non-technology integration consulting contracts with fixed fees, the Company recognizes revenues as amounts become billable in accordance with contract terms, provided the billable amounts are not contingent, are consistent with the services delivered and are earned. Contingent or incentive revenues relating to non-technology integration consulting contracts are recognized when the contingency is satisfied and the Company concludes the amounts are earned. Outsourcing contracts typically span several years and involve complex delivery, often through multiple workforces in different countries. In a number of these arrangements, the Company hires client employees and becomes responsible for certain client obligations. Revenues are recognized on outsourcing contracts as amounts become billable in accordance with contract terms, unless the amounts are billed in advance of performance of services, in which case revenues are recognized when the services are performed and amounts are earned. Revenues from time-and-materials or cost-plus contracts are recognized as the services are performed. In such contracts, the Company’s effort, measured by time incurred, represents the contractual milestones or output measure, which is the contractual earnings pattern. Revenues from unit-priced contracts are recognized as transactions are processed based on objective measures of output. Revenues from fixed-price contracts are recognized on a straight-line basis, unless revenues are earned and obligations are fulfilled in a different pattern. Outsourcing contracts can also include incentive payments for benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Costs related to delivering outsourcing services are expensed as incurred with the exception of certain transition costs related to the set-up of processes, personnel and systems, which are deferred during the transition period and expensed evenly over the period outsourcing services are provided. The deferred costs are specific internal costs or incremental external costs directly related to transition or set-up activities necessary to enable the outsourced services. 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 $709,444 and $630,420 as of August 31, 2016 and 2015, respectively, and are included in Deferred contract costs. Amounts billable to the client for transition or set-up activities are deferred and recognized as revenue evenly over the period outsourcing services are provided. Deferred transition revenues were $604,674 and $522,968 as of August 31, 2016 and 2015, respectively, and are included in non-current Deferred revenues. Contract acquisition and origination costs are expensed as incurred. The Company enters into contracts that may consist of multiple deliverables. These contracts may include any combination of technology integration consulting services, non-technology integration consulting services or outsourcing services described above. Revenues for contracts with multiple deliverables are allocated based on the lesser of the element’s relative selling price or the amount that is not contingent on future delivery of another deliverable. The selling price of each deliverable is determined by obtaining third party evidence of the selling price for the deliverable and is based on the price charged when largely similar services are sold on a standalone basis by the Company to similarly situated customers. If the amount of non-contingent revenues allocated to a deliverable accounted for under the percentage-of-completion method of accounting is less than the costs to deliver such services, then such costs are deferred and recognized in future periods when the revenues become non-contingent. Revenues are recognized in accordance with the Company’s accounting policies for the separate deliverables when the services have value on a stand-alone basis, selling price of the separate deliverables exists and, in arrangements that include a general right of refund relative to the completed deliverable, performance of the in-process deliverable is considered probable and substantially in the Company’s control. While determining fair value and identifying separate deliverables require judgment, generally fair value and the separate deliverables are readily identifiable as the Company also sells those deliverables unaccompanied by other deliverables. Revenues recognized in excess of billings are recorded as Unbilled services. Billings in excess of revenues recognized are recorded as Deferred revenues until revenue recognition criteria are met. Client prepayments (even if nonrefundable) are deferred and recognized over future periods as services are delivered or performed. Revenues before reimbursements (“net revenues”) include the margin earned on computer hardware, software and related services resale, as well as revenues from alliance agreements. Reimbursements include billings for travel and other out-of-pocket expenses and third-party costs, such as the cost of hardware, software and related services resales. In addition, Reimbursements include allocations from gross billings to record an amount equivalent to reimbursable costs, where billings do not specifically identify reimbursable expenses. The Company reports 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 materially from original estimates. Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. 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. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes those tax positions are not more likely than not of being sustained if challenged. Each fiscal quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. Translation of Non-U.S. Currency Amounts Assets and liabilities of non-U.S. 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. Cash and cash equivalents also include restricted cash of $45,478 and $45,935 as of August 31, 2016 and 2015, respectively, which primarily relates to cash held to meet certain insurance requirements. 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. Client Receivables, Unbilled Services and Allowances The Company records its client receivables and unbilled services at their face amounts less allowances. On a periodic basis, the Company evaluates its receivables and unbilled services and establishes allowances based on historical experience and other currently available information. As of August 31, 2016 and 2015, total allowances recorded for client receivables and unbilled services were $79,440 and $70,165, respectively. The allowance reflects the Company’s best estimate of collectibility risks on outstanding receivables and unbilled services. In limited circumstances, the Company agrees 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. Concentrations of Credit Risk The Company’s financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments, client receivables and unbilled services, are exposed to concentrations of credit risk. The Company places its cash and cash equivalents and foreign exchange instruments with highly-rated financial institutions, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are limited. Investments All 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 are primarily non-marketable equity securities of privately held companies and are accounted for using either the equity or cost methods of accounting, in accordance with the requirements of Accounting Standards Codification 323, Investments—Equity Method and Joint Ventures. Marketable securities are classified as available-for-sale investments and reported at fair value with changes in unrealized gains and losses recorded as a separate component of Accumulated other comprehensive loss until realized. Interest and amortization of premiums and discounts for debt securities are included in Interest income. Cost method investments are periodically assessed for other-than-temporary impairment. For investments in privately held companies, if there are no identified events or circumstances that would have a significant adverse effect on the fair value of the investment, the fair value is not estimated. If an investment is deemed to have experienced an other-than-temporary decline below its cost basis, the Company reduces the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establishes a new cost basis for the investment. Property and Equipment 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:
Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of net assets acquired. The Company reviews the recoverability of goodwill by reportable operating segment annually, or more frequently when indicators of impairment exist. Based on the results of its annual impairment analysis, the Company determined that no impairment existed as of August 31, 2016 and 2015, as each reportable operating 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 were as follows:
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Recently Adopted Accounting Pronouncement In August 2016, the Company early adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes, which amends existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. The Company adopted this ASU using the retrospective method which required reclassification of current deferred taxes as previously reported on the Company’s August 31, 2015 Consolidated Balance Sheets to non-current, resulting in an increase to non-current deferred tax assets of $815,909 and a decrease to noncurrent deferred tax liabilities of $22,218. New Accounting Pronouncements On March 31, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share-based payment transactions. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, the ASU includes provisions that impact the classification of awards as either equity or liabilities and the classification of excess tax benefits on the cash flow statements. The Company will early adopt the standard effective September 1, 2016. Following adoption, the primary impact on the Company’s Consolidated Financial Statements will be the recognition of excess tax benefits in the provision for income taxes rather than Additional paid-in capital, which will likely result in increased volatility in the reported amounts of income tax expense and net income. The Company estimates this change will reduce its fiscal 2017 effective tax rate by less than two percentage points. The actual impact of adopting this standard on the effective tax rate will vary depending on the Company’s share price during fiscal 2017. Provisions of the new guidance related to changes to classification of excess tax benefits in the cash flow statements are expected to be adopted retrospectively. The Company is continuing to evaluate the impacts of the adoption of this guidance and its preliminary assessments are subject to change. On March 15, 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement to retrospectively apply equity method accounting when an entity increases ownership or influence in a previously held investment. The ASU will be effective for the Company beginning September 1, 2017, including interim periods in its fiscal year 2018. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial Statements. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. The ASU will be effective for the Company beginning September 1, 2019, including interim periods in its fiscal year 2020, and allows for a modified retrospective method upon adoption. The Company is assessing the impact of this ASU on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will be effective for the Company beginning September 1, 2018, including interim periods in its fiscal year 2019. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial Statements. On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning September 1, 2018, including interim periods in its fiscal year 2019, and allows for both retrospective and modified retrospective methods of adoption. The Company will adopt the guidance on September 1, 2018 and apply the modified retrospective method. The Company is assessing the impact of this ASU on its Consolidated Financial Statements. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | 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 Holdings plc:
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT |
The components of Property and equipment, net were as follows:
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BUSINESS COMBINATIONS AND DIVESTITURES |
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Aug. 31, 2016 | |
Business Combination, Goodwill [Abstract] | |
BUSINESS COMBINATIONS AND DIVESTITURES | BUSINESS COMBINATIONS AND DIVESTITURES Fiscal 2016 Business Combinations On October 20, 2015, the Company acquired Cloud Sherpas (through its holding company, Declarative Holdings, Inc.), a leader in cloud advisory and technology services, for approximately $409,424, net of cash acquired. This acquisition enhances the Company’s ability to provide clients with cloud strategy and technology consulting, as well as cloud application implementation, integration and management services, and resulted in approximately 1,100 employees joining the Company. In connection with this acquisition, the Company recorded goodwill of $385,337, which was allocated to all five reportable operating segments, and intangible assets of $66,522, primarily related to customer-related intangibles. The goodwill is non-deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to seven years. The pro forma effects of this acquisition on the Company’s operations were not material. During fiscal 2016, the Company also completed other individually immaterial acquisitions for total consideration of $458,892, net of cash acquired. These acquisitions were completed primarily to expand the Company’s services and solutions offerings. In connection with these acquisitions, the Company recorded goodwill of $382,326, which was allocated among the reportable operating segments, and intangible assets of $109,981, primarily consisting of customer-related and technology intangibles. The goodwill is partially deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to ten years. The pro forma effects of these acquisitions on the Company’s operations were not material. Divestiture On January 26, 2016, the Company completed the sale of Navitaire LLC (“Navitaire”), a wholly owned subsidiary of the Company that provides technology and business solutions to the airline industry, to Amadeus IT Group, S.A. (“Amadeus”). Concurrent with the sale, the Company also entered into several arrangements to provide services to Amadeus, principally infrastructure outsourcing, over the next five years. The Company received a total of $825,644, net of transaction costs and cash divested, of which $214,500 was recorded as deferred revenue attributable to arrangements to provide services to Amadeus. In connection with the sale of Navitaire, the Company recorded a gain of $547,584 (reported in “Gain on sale of businesses” in the Consolidated Income Statements) and recorded related income taxes of $55,759. Approximately 600 Navitaire employees transferred to Amadeus as a part of this sale. Joint Venture On August 1, 2016, the Company completed the transfer of its Duck Creek business to Apax Partners LLP in exchange for $196,198, net of transaction costs and cash divested, and a 40% non-controlling interest in the newly formed joint venture, Duck Creek Technologies LLC (“Duck Creek”). Duck Creek’s business is to accelerate the innovation of claims, billing and policy administration software for the insurance industry. In connection with the transaction, which resulted in the recording of the retained non-controlling interest at fair value, the Company recorded a gain of $301,239 (reported in “Gain on sale of businesses” in the Consolidated Income Statements) and related income tax expense of $48,286. The fair value of the Company’s retained interest in Duck Creek was calculated based on the terms of the transfer and other factors related to the valuation of the non-controlling interest. Adjustments related to the completion of certain post-closing matters may be recorded in subsequent periods. Approximately 1,000 employees moved to Duck Creek as a part of this transaction. Fiscal 2015 Acquisitions On March 25, 2015, the Company acquired Agilex Technologies, Inc., a provider of digital solutions for the U.S. federal government, for $264,444, net of cash acquired. This acquisition enhanced Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies and resulted in approximately 730 employees joining the Company. In connection with this acquisition, the Company recorded goodwill of $206,123, which was allocated to the Health & Public Service operating segment, and intangible assets of $50,800, primarily consisting of customer-related intangibles. The goodwill is non-deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to eight years. The pro forma effects of this acquisition on the Company’s operations were not material. During fiscal 2015, the Company also completed other individually immaterial acquisitions for total consideration of $510,236, net of cash acquired. These acquisitions were completed primarily to expand the Company’s services and solutions offerings. In connection with these acquisitions, the Company recorded goodwill of $427,435, which was allocated among the reportable operating segments, and intangible assets of $120,970, primarily consisting of customer-related and technology intangibles. The goodwill is partially deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to eleven years. The pro forma effects of these acquisitions on the Company’s operations were not material. Fiscal 2014 Acquisitions On December 4, 2013, the Company acquired Procurian Inc. (“Procurian”), a provider of procurement business process solutions, for $386,407, net of cash acquired. This acquisition enhanced Accenture’s capabilities in procurement business process outsourcing across a range of industries and resulted in approximately 780 employees joining Accenture. In connection with this acquisition, the Company recorded goodwill of $305,627, which was allocated to all five reportable operating segments, and intangible assets of $60,514, primarily consisting of customer-related and technology intangibles. The goodwill is substantially non-deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to twelve years. The pro forma effects of this acquisition on the Company’s operations were not material. During fiscal 2014, the Company also completed other individually immaterial acquisitions for total consideration of $320,225, net of cash acquired. These acquisitions were completed primarily to expand the Company’s services and solutions offerings. In connection with these acquisitions, the Company recorded goodwill of $256,704, which was allocated among the reportable operating segments, and intangible assets of $80,305, primarily consisting of customer-related and technology intangibles. The goodwill is partially deductible for U.S. federal income tax purposes. The intangible assets are being amortized over one to twelve years. The pro forma effects of these acquisitions on the Company’s operations were not material. |
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill by reportable operating segment were as follows:
Goodwill includes immaterial adjustments related to divestitures and prior period acquisitions. Intangible Assets The Company’s definite-lived intangible assets by major asset class were as follows:
Total amortization related to the Company’s intangible assets was $117,882, $99,633 and $75,232 for fiscal 2016, 2015 and 2014, respectively. Estimated future amortization related to intangible assets held at August 31, 2016 is as follows:
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company uses 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. The Company does not enter into derivative transactions for trading purposes. The Company classifies cash flows from its derivative programs as cash flows from operating activities in the Consolidated Cash Flows Statements. Certain derivatives also 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 the Company, and the maximum amount of loss due to credit risk, based on the gross fair value of all of the Company’s derivative financial instruments, was $129,603 as of August 31, 2016. The Company also utilizes 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 the Company’s potential overall loss resulting from the insolvency of a counterparty and reduce a counterparty’s potential overall loss resulting from the insolvency of the Company. Additionally, these agreements contain early termination provisions triggered by adverse changes in a counterparty’s credit rating, thereby enabling the Company to accelerate settlement of a transaction prior to its contractual maturity and potentially decrease the Company’s realized loss on an open transaction. Similarly, a decrement in the Company’s 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 the Company’s realized loss on an open transaction. The aggregate fair value of the Company’s derivative instruments with credit-risk-related contingent features that are in a liability position as of August 31, 2016 was $33,774. The Company’s 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, yield curves and credit default swap pricing. For additional information related to the three-level hierarchy of fair value measurements, see Note 9 (Retirement and Profit Sharing Plans) to these Consolidated Financial Statements. Cash Flow Hedges Certain of the Company’s subsidiaries are exposed to currency risk through their use of resources supplied by the Company’s Global Delivery Network. To mitigate this risk, the Company uses 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. The Company has designated these derivatives as cash flow hedges. As of August 31, 2016 and 2015, the Company 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, the Company’s 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. The Company assesses the ongoing effectiveness of its hedges using the Hypothetical Derivative Method, which measures hedge ineffectiveness based on a comparison of the change in fair value of the actual derivative designated as the hedging instrument and the change in fair value of a hypothetical derivative. The hypothetical derivative would have terms that identically match the critical terms of the hedged item. The Company measures and records hedge ineffectiveness at the end of each fiscal quarter. 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 Statement 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 a net gain of $23,004 and $15,207 during fiscal 2016 and 2015, respectively, and a net loss of $101,026 during fiscal 2014. The ineffective portion of the change in fair value of a cash flow hedge is recognized immediately in Other expense, net in the Consolidated Income Statement and for fiscal 2016, 2015 and 2014, was not material. In addition, the Company did not discontinue any cash flow hedges during fiscal 2016 and 2015 or 2014. Other Derivatives The Company also uses 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 a net loss of $84,293 and $257,783 for fiscal 2016 and 2015, respectively, and a net gain of $78,446 for fiscal 2014. Gains and losses on these contracts are recorded in Other expense, net in the Consolidated Income Statement 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 were as follows:
The Company utilizes 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, the Company records derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements was as follows:
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BORROWINGS AND INDEBTEDNESS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS AND INDEBTEDNESS | BORROWINGS AND INDEBTEDNESS As of August 31, 2016, the Company had the following borrowing facilities, including the issuance of letters of credit, to support general working capital purposes:
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Under the borrowing facilities described above, the Company had an aggregate of $168,663 and $166,506 of letters of credit outstanding as of August 31, 2016 and 2015, respectively. In addition, the Company had total outstanding debt of $27,230 and $27,435 as of August 31, 2016 and 2015, respectively. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES
The components of Income before income taxes were as follows:
The reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate was as follows:
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During fiscal 2015, the Company concluded that substantially all of the undistributed earnings of its U.S. subsidiaries would no longer be considered indefinitely reinvested and recorded an estimated tax liability of $247,097 for withholding taxes payable on the distribution of these earnings. These earnings were distributed in the form of a U.S. dividend declared and paid on August 26, 2015. The Company intends to indefinitely reinvest any future U.S. earnings. As of August 31, 2016, the Company had not recognized a deferred tax liability on $1,297,932 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 $116,000. Portions of the Company’s operations are subject to reduced tax rates or are free of tax under various tax holidays which expire between fiscal 2017 and 2021. Some of the holidays are renewable at reduced levels, under certain conditions, with possible renewal periods through 2031. The income tax benefits attributable to the tax status of these subsidiaries were estimated to be approximately $100,000, $111,000 and $91,000 in fiscal 2016, 2015 and 2014, respectively. The effect on deferred tax assets and liabilities of enacted changes in tax laws and tax rates did not have a material impact on the Company’s effective tax rate. The components of the Company’s deferred tax assets and liabilities included the following:
The Company recorded valuation allowances of $980,196 and $963,874 as of August 31, 2016 and 2015, respectively, against deferred tax assets principally associated with certain tax credit and tax net operating loss carryforwards, as the Company believes it is more likely than not that these assets will not be realized. For all other deferred tax assets, the Company believes 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 2016, the Company recorded a net increase of $16,322 in the valuation allowance. The majority of this change related to valuation allowances on certain tax net operating loss carryforwards, as the Company believes it is more likely than not that these assets will not be realized. The Company had tax credit carryforwards as of August 31, 2016 of $898,073, of which $30,288 will expire between 2017 and 2026, $828 will expire between 2027 and 2036, and $866,957 has an indefinite carryforward period. The Company had net operating loss carryforwards as of August 31, 2016 of $518,475. Of this amount, $254,978 expires between 2017 and 2026, $2,130 expires between 2027 and 2036, and $261,367 has an indefinite carryforward period. As of August 31, 2016, the Company had $985,755 of unrecognized tax benefits, of which $508,313, if recognized, would favorably affect the Company’s effective tax rate. As of August 31, 2015, the Company had $997,935 of unrecognized tax benefits, of which $534,929, if recognized, would favorably affect the Company’s effective tax rate. The remaining unrecognized benefits as of August 31, 2016 and 2015 of $477,442 and $463,006, respectively, represent items recorded as adjustments to equity and offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, state income taxes and timing adjustments. A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows:
The Company recognizes interest and penalties related to unrecognized tax benefits in the Provision for income taxes. During fiscal 2016, 2015 and 2014, the Company recognized expense (benefit) of $8,681, $(17,373) and $16,370 in interest and penalties, respectively. Accrued interest and penalties related to unrecognized tax benefits of $109,269 ($95,057, net of tax benefits) and $101,843 ($84,530, net of tax benefits) were reflected on the Company’s Consolidated Balance Sheets as of August 31, 2016 and 2015, respectively. The Company is participating in the U.S. Internal Revenue Service (“IRS”) Compliance Assurance Program (“CAP”) beginning with the 2016 fiscal year. As part of CAP, tax years are audited on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return. The Company is currently under audit by the IRS for fiscal 2013 and 2014. The Company is also currently under audit in numerous state and non-U.S. tax jurisdictions. Although the outcome of tax audits is always uncertain and could result in significant cash tax payments, the Company does not believe the outcome of these audits will have a material adverse effect on the Company’s consolidated financial position or results of operations. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for the years before 2007. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by approximately $562,000 or increase by approximately $169,000 in the next 12 months as a result of settlements, lapses of statutes of limitations and other adjustments. The majority of these amounts relate to transfer pricing matters in both U.S. and non-U.S. tax jurisdictions. |
RETIREMENT AND PROFIT SHARING PLANS |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT AND PROFIT SHARING PLANS | RETIREMENT AND PROFIT SHARING PLANS Defined Benefit Pension and Postretirement Plans In the United States and certain other countries, the Company maintains and administers defined benefit retirement plans and postretirement medical plans for certain current, retired and resigned employees. In addition, the Company’s 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 the Company’s 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 were as follows:
Beginning in fiscal 2016, the Company changed the method it uses to estimate the service and interest cost components of net periodic pension expense. Historically, the Company selected a discount rate for the U.S. plans by matching the plans’ cash flows to that of the average of two yield curves that provide the equivalent yields on zero-coupon corporate bonds for each maturity. The discount rate assumption for the non-U.S. Plans primarily reflected the market rate for high-quality, fixed-income debt instruments. Beginning in fiscal 2016, the Company utilized a full yield curve approach to estimate these components by applying specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of service and interest costs. This change does not affect the measurement of the Company’s total benefit obligations. The Company accounted for this change as a change in estimate and, accordingly, recognized its effect prospectively beginning in fiscal 2016. The discount rate assumptions are based on the expected duration of the benefit payments for each of the Company’s 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 The Company’s U.S. postretirement plan assumed annual rate of increase in the per capita cost of health care benefits is 6.8% for the plan year ending June 30, 2017. The rate is assumed to decrease on a straight-line basis to 4.5% for the plan year ending June 30, 2027 and remain at that level thereafter. A one percentage point increase in the assumed health care cost trend rates would increase the benefit obligation by $81,422, while a one percentage point decrease would reduce the benefit obligation by $62,615. U.S. Defined Benefit Pension Plan Settlement Charge During fiscal 2015, the Company offered a voluntary one-time lump sum payment option to certain eligible former employees who had vested benefits under the Company’s U.S. pension plan that, if accepted, would settle the Company’s pension obligations to them. This resulted in lump sum payments from plan assets of $279,571 during fiscal 2015. As a result of this settlement and the adoption of the new U.S. mortality tables released by the Society of Actuaries, the Company remeasured the assets and liabilities of the U.S. pension plan, which in aggregate resulted in a net reduction to the projected benefit obligation of $179,938 as well as a non-cash settlement charge of $64,382, pre-tax, during fiscal 2015. Pension and Postretirement Expense Pension expense for fiscal 2016, 2015 and 2014 was $94,827, $143,968 (including the above noted settlement charge) and $87,422, respectively. Postretirement expense for fiscal 2016, 2015 and 2014 was not material to the Company’s Consolidated Financial Statements. Benefit Obligation, Plan Assets and Funded Status The changes in the benefit obligations, plan assets and funded status of the Company’s pension and postretirement benefit plans for fiscal 2016 and 2015 were as follows:
Accumulated Other Comprehensive Loss The pre-tax accumulated net loss and prior service (credit) cost recognized in Accumulated other comprehensive loss as of August 31, 2016 and 2015 was as follows:
Funded Status for Defined Benefit Plans The accumulated benefit obligation for defined benefit pension plans as of August 31, 2016 and 2015 was as follows:
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, 2016 and 2015:
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, the Company’s 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. The Company recognizes 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 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 the Company. 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 The Company’s target allocation for fiscal 2017 and weighted-average plan assets allocations as of August 31, 2016 and 2015 by asset category for defined benefit pension plans were as follows:
Fair Value Measurements 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 the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:
The fair values of defined benefit pension and postretirement plan assets as of August 31, 2016 were as follows:
There were no transfers between Levels 1 and 2 during fiscal 2016. 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. The Company estimates it will pay approximately $80,077 in fiscal 2017 related to contributions to its U.S. and non-U.S. defined benefit pension plans and benefit payments related to the unfunded frozen plan for former pre-incorporation partners. The Company has not determined whether it will make additional voluntary contributions for its defined benefit pension plans. The Company’s postretirement plan contributions in fiscal 2017 are not expected to be material to the Company’s 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:
_______________ (1) Excludes the impact of the anticipated U.S. pension plan termination noted below. U.S. Pension Plan Termination On March 18, 2016, Accenture plc’s Board of Directors approved an amendment to terminate the Company’s U.S. pension plan, effective May 30, 2016, for all active and former employees who are no longer accruing benefits in the pension plan (approximately 16,200 people). The amendment also provides for the creation of a separate defined benefit plan with substantially the same terms for approximately 600 active employees who are currently eligible to accrue benefits. The U.S. pension plan is expected to be settled in 12 to 18 months from the termination effective date, subject to receipt of customary regulatory approvals. The Company’s ultimate settlement obligation will depend upon both the nature and timing of participant settlements and prevailing market conditions. Upon settlement, the Company expects to recognize additional expense, consisting of unrecognized actuarial losses included in Accumulated other comprehensive loss that totaled approximately $467,000 as of August 31, 2016, adjusted for the difference between the ultimate settlement obligation and the Company’s accrued pension obligation. The Company does not expect the settlement of the U.S. pension plan obligations to have a material impact on its cash position. Defined Contribution Plans In the United States and certain other countries, the Company maintains and administers defined contribution plans for certain current, retired and resigned employees. Total expenses recorded for defined contribution plans were $419,932, $397,123 and $331,801 in fiscal 2016, 2015 and 2014, respectively. |
SHARE-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share Incentive Plans The Amended and Restated Accenture plc 2010 Share Incentive Plan, as amended and approved by Accenture’s shareholders in 2016 (the “Amended 2010 SIP”), is administered by the Compensation 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 83,000,000 Accenture plc Class A ordinary shares are currently authorized for awards under the Amended 2010 SIP. As of August 31, 2016, there were 23,167,880 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. Accenture issues 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:
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 Accenture’s 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 seven 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 2016 was as follows:
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As of August 31, 2016, there was $677,433 of total restricted share unit compensation expense related to nonvested awards not yet recognized, which is expected to be recognized over a weighted average period of 1.3 years. As of August 31, 2016, there were 930,652 restricted share units vested but not yet delivered as Accenture plc Class A ordinary shares. Stock Options There were no stock options granted during fiscal 2016, 2015 or 2014. As of August 31, 2016 we had 23,310 stock options outstanding and exercisable at a weighted average exercise price of $37.46 and a weighted average remaining contractual term of 2.5 years. 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 the Company 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, 2016, Accenture had issued 42,579,575 Accenture plc Class A ordinary shares under the 2010 ESPP. Accenture issued 5,850,113, 6,232,031 and 7,067,832 shares to employees in fiscal 2016, 2015 and 2014, respectively, under the 2010 ESPP. |
SHAREHOLDERS' EQUITY |
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Aug. 31, 2016 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Accenture Holdings plc Deferred Shares The Company has 40,000 authorized deferred shares, par value €1 per share. Each deferred share of Accenture Holdings plc entitles its holder to receive payments upon a liquidation of Accenture Holdings plc; however a holder of a deferred share is not entitled to vote on matters submitted to a vote of shareholders of Accenture Holdings plc or to receive dividends. Accenture Holdings plc Ordinary Shares Members of Accenture Leadership in certain countries, including the United States, received Accenture SCA Class I common shares in connection with the Company’s transition to a corporate structure. On August 26, 2015, Accenture SCA merged with and into Accenture Holdings plc, with Accenture Holdings plc as the surviving entity. In connection with this transaction, holders of Accenture SCA Class I common shares (other than Accenture SCA itself) received, on a one-for-one basis, ordinary shares of Accenture Holdings plc. Only Accenture plc, Accenture Holdings plc, Accenture International S.à.r.l. and certain current and former members of Accenture Leadership and their permitted transferees hold Accenture Holdings plc ordinary shares. Each Accenture Holdings plc share entitles its holder to one vote on all matters submitted to a vote of shareholders of Accenture Holdings plc and entitles its holders to dividends and liquidation payments. Accenture Holdings plc is obligated, at the option of the holder, to redeem any outstanding Accenture Holdings plc ordinary share at a redemption price per share generally equal to its current market value as determined in accordance with Accenture Holdings plc’s memorandum and articles of association. Under Accenture Holdings plc’s memorandum and articles of association, the market value of an ordinary share will be deemed to be equal to (i) the average of the high and low sales prices of an Accenture plc Class A ordinary share as reported on the New York Stock Exchange, net of customary brokerage and similar transaction costs, or (ii) if Accenture sells its Class A ordinary shares on the date that the redemption price is determined (other than in a transaction with any employee or an affiliate or pursuant to a preexisting obligation), the weighted average sales price of an Accenture plc Class A ordinary share on the New York Stock Exchange, net of customary brokerage and similar transaction costs. Accenture Holdings plc may, at its option, pay this redemption price with cash or by causing Accenture plc to deliver Class A ordinary shares on a one-for-one basis. Each holder of Accenture Holdings plc ordinary shares is entitled to a pro rata part of any dividend and to the value of any remaining assets of Accenture Holdings plc after payment of its liabilities upon dissolution. |
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY |
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MATERIAL TRANSACTION AFFECTING SHAREHOLDERS' EQUITY | MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS’ EQUITY Share Purchases and Redemptions The Board of Directors of Accenture plc has authorized funding for purchases and redemptions of Accenture plc Class A ordinary shares, Accenture Holdings plc 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, 2016, our aggregate available authorization was $5,386,517 for these share purchase programs and Accenture’s publicly announced open-market share purchase program. The Company’s share purchase activity during fiscal 2016 was as follows:
Other Share Redemptions During fiscal 2016, Accenture issued 775,023 Accenture plc Class A ordinary shares upon redemptions of an equivalent number of Accenture Holdings plc ordinary shares pursuant to Accenture’s registration statement on Form S-3 (the “registration statement”). The registration statement allows Accenture, at it's option, to issue freely tradable Accenture plc Class A ordinary shares in lieu of cash upon redemptions of Accenture Holdings plc ordinary shares held by current and former members of Accenture Leadership and their permitted transferees. Dividends The Company’s dividend activity during fiscal 2016 was as follows:
The payment of the cash dividends also resulted in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. Subsequent Event On September 27, 2016, the Board of Directors of Accenture plc declared a semi-annual cash dividend of $1.21 per share on its Class A ordinary shares for shareholders of record at the close of business on October 21, 2016. On September 28, 2016, the Board of Directors of Accenture Holdings plc declared a semi-annual cash dividend of $1.21 per share on its ordinary shares for shareholders of record at the close of business on October 18, 2016. Both dividends are payable on November 15, 2016. The payment of the cash dividends will result in the issuance of an immaterial number of additional restricted share units to holders of restricted share units. |
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LEASE COMMITMENTS | LEASE COMMITMENTS The Company has operating leases, principally for office space, with various renewal options. Substantially all operating leases are non-cancelable or cancelable only by the payment of penalties. Rental expense in agreements with rent holidays and scheduled rent increases is recorded on a straight-line basis over the lease term. Rental expense, including operating costs and taxes, and sublease income from third parties during fiscal 2016, 2015 and 2014 was as follows:
Future minimum rental commitments under non-cancelable operating leases as of August 31, 2016 were as follows:
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COMMITMENTS AND CONTINGENCIES |
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Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The Company has the right to purchase or may also be required to purchase substantially all of the remaining outstanding shares of its Avanade Inc. subsidiary (“Avanade”) not owned by the Company at fair value if certain events occur. Certain holders of Avanade common stock and options to purchase the stock have put rights that, under certain circumstances and conditions, would require Avanade to redeem shares of its stock at fair value. As of August 31, 2016 and 2015, the Company has reflected the fair value of $54,221 and $79,023, respectively, related to Avanade’s redeemable common stock and the intrinsic value of the options on redeemable common stock in Other accrued liabilities in the Consolidated Balance Sheets. Indemnifications and Guarantees In the normal course of business and in conjunction with certain client engagements, the Company has entered into contractual arrangements through which it may be obligated to indemnify clients with respect to certain matters. These arrangements with clients can include provisions whereby the Company has 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, the Company’s consulting arrangements may include warranty provisions that the Company’s solutions will substantially operate in accordance with the applicable system requirements. Indemnification provisions are also included in arrangements under which the Company agrees 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, the Company has contractual recourse against third parties for certain payments made by the Company in connection with arrangements where third-party nonperformance has given rise to the client’s claim. Payments by the Company under any of the arrangements described above are generally conditioned on the client making a claim, which may be disputed by the Company 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, 2016 and 2015, the Company’s aggregate potential liability to its clients for expressly limited guarantees involving the performance of third parties was approximately $749,000 and $655,000, respectively, of which all but approximately $113,000 and $43,000, respectively, may be recovered from the other third parties if the Company is 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, the Company 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. To date, the Company has not been required to make any significant payment under any of the arrangements described above. The Company has assessed the current status of performance/payment risk related to arrangements with limited guarantees, warranty obligations, unspecified limitations and/or indemnification provisions and believes that any potential payments would be immaterial to the Consolidated Financial Statements, as a whole. Legal Contingencies As of August 31, 2016, the Company or its present personnel had been named as a defendant in various litigation matters. The Company and/or its personnel also from time to time are involved in investigations by various regulatory or legal authorities concerning matters arising in the course of its business around the world. Based on the present status of these matters, management believes the range of reasonably possible losses in addition to amounts accrued, net of insurance recoveries, will not have a material effect on the Company’s results of operations or financial condition. |
SEGMENT REPORTING |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING Operating segments are components of an enterprise where separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s operating segments are managed separately because each operating segment represents a strategic business unit providing consulting and outsourcing services to clients in different industries. The Company’s reportable operating segments are the five operating groups, which are Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. Information regarding the Company’s reportable operating segments is as follows:
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The accounting policies of the operating segments are the same as those described in Note 1 (Summary of Significant Accounting Policies) to these Consolidated Financial Statements. Revenues are attributed to geographic regions and countries based on where client services are supervised. Information regarding geographic regions and countries is as follows:
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The Company’s business in the United States represented 46%, 43% and 40% of its consolidated net revenues during fiscal 2016, 2015 and 2014, respectively. No other country individually comprised 10% or more of the Company’s consolidated net revenues during these periods. Business in Ireland, the Company’s country of domicile, represented approximately 1% of its consolidated net revenues during each of fiscal 2016, 2015 and 2014. The Company conducts business in Ireland and in the following countries that hold 10% or more of its total consolidated Property and equipment, net:
Revenues by type of work were as follows:
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QUARTERLY DATA |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY DATA | QUARTERLY DATA (unaudited)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||
Basis of presentation | The Consolidated Financial Statements include the accounts of Accenture Holdings plc (the successor registrant to Accenture SCA) and its controlled subsidiary companies (collectively, the “Company”). Accenture plc (“Accenture”) is the holding company of the Company. Accenture’s only business is to hold the Company’s ordinary shares in, and to act as the controlling shareholder of, its subsidiary, the Company. Accenture operates its business through the Company, controls the Company’s management and operations and consolidates the Company’s results in its Consolidated Financial Statements. All references to Accenture Holdings plc included in this report with respect to periods prior to August 26, 2015 reflect the activity and/or balances of Accenture SCA (the predecessor registrant of Accenture Holdings plc). The shares of Accenture Canada Holdings Inc. held by persons other than the Company are treated as a noncontrolling interest in the Consolidated Financial Statements. All references to years, unless otherwise noted, refer to the Company’s fiscal year, which ends on August 31. For example, a reference to “fiscal 2016” means the 12-month period that ended on August 31, 2016. All references to quarters, unless otherwise noted, refer to the quarters of the Company’s fiscal year. |
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Use of Estimates | 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 the Company may undertake in the future, actual results may be different from those estimates. |
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Revenue Recognition | Revenue Recognition Revenues from contracts for technology integration consulting services where the Company designs/redesigns, builds and implements new or enhanced systems applications and related processes for its clients are recognized on the percentage-of-completion method, which involves calculating the percentage of services provided during the reporting period compared to the total estimated services to be provided over the duration of the contract. Contracts for technology integration consulting services generally span six months to two years. Estimated revenues used in applying the percentage-of-completion method include estimated incentives for which achievement of defined goals is deemed probable. This method is followed where reasonably dependable estimates of revenues and costs can be made. Estimates of total contract revenues and costs are continuously monitored during the term of the contract, and recorded revenues and estimated costs are subject to revision as the contract progresses. Such revisions may result in increases or decreases to revenues and income and are reflected in the Consolidated Financial Statements in the periods in which they are first identified. If the Company’s estimates indicate that a contract loss will occur, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated total direct and indirect costs of the contract exceed the estimated total revenues that will be generated by the contract and are included in Cost of services and classified in Other accrued liabilities. Revenues from contracts for non-technology integration consulting services with fees based on time and materials or cost-plus are recognized as the services are performed and amounts are earned. The Company considers amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable, and collectibility is reasonably assured. In such contracts, the Company’s efforts, measured by time incurred, typically are provided in less than a year and represent the contractual milestones or output measure, which is the contractual earnings pattern. For non-technology integration consulting contracts with fixed fees, the Company recognizes revenues as amounts become billable in accordance with contract terms, provided the billable amounts are not contingent, are consistent with the services delivered and are earned. Contingent or incentive revenues relating to non-technology integration consulting contracts are recognized when the contingency is satisfied and the Company concludes the amounts are earned. Outsourcing contracts typically span several years and involve complex delivery, often through multiple workforces in different countries. In a number of these arrangements, the Company hires client employees and becomes responsible for certain client obligations. Revenues are recognized on outsourcing contracts as amounts become billable in accordance with contract terms, unless the amounts are billed in advance of performance of services, in which case revenues are recognized when the services are performed and amounts are earned. Revenues from time-and-materials or cost-plus contracts are recognized as the services are performed. In such contracts, the Company’s effort, measured by time incurred, represents the contractual milestones or output measure, which is the contractual earnings pattern. Revenues from unit-priced contracts are recognized as transactions are processed based on objective measures of output. Revenues from fixed-price contracts are recognized on a straight-line basis, unless revenues are earned and obligations are fulfilled in a different pattern. Outsourcing contracts can also include incentive payments for benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Costs related to delivering outsourcing services are expensed as incurred with the exception of certain transition costs related to the set-up of processes, personnel and systems, which are deferred during the transition period and expensed evenly over the period outsourcing services are provided. The deferred costs are specific internal costs or incremental external costs directly related to transition or set-up activities necessary to enable the outsourced services. 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 $709,444 and $630,420 as of August 31, 2016 and 2015, respectively, and are included in Deferred contract costs. Amounts billable to the client for transition or set-up activities are deferred and recognized as revenue evenly over the period outsourcing services are provided. Deferred transition revenues were $604,674 and $522,968 as of August 31, 2016 and 2015, respectively, and are included in non-current Deferred revenues. Contract acquisition and origination costs are expensed as incurred. The Company enters into contracts that may consist of multiple deliverables. These contracts may include any combination of technology integration consulting services, non-technology integration consulting services or outsourcing services described above. Revenues for contracts with multiple deliverables are allocated based on the lesser of the element’s relative selling price or the amount that is not contingent on future delivery of another deliverable. The selling price of each deliverable is determined by obtaining third party evidence of the selling price for the deliverable and is based on the price charged when largely similar services are sold on a standalone basis by the Company to similarly situated customers. If the amount of non-contingent revenues allocated to a deliverable accounted for under the percentage-of-completion method of accounting is less than the costs to deliver such services, then such costs are deferred and recognized in future periods when the revenues become non-contingent. Revenues are recognized in accordance with the Company’s accounting policies for the separate deliverables when the services have value on a stand-alone basis, selling price of the separate deliverables exists and, in arrangements that include a general right of refund relative to the completed deliverable, performance of the in-process deliverable is considered probable and substantially in the Company’s control. While determining fair value and identifying separate deliverables require judgment, generally fair value and the separate deliverables are readily identifiable as the Company also sells those deliverables unaccompanied by other deliverables. Revenues recognized in excess of billings are recorded as Unbilled services. Billings in excess of revenues recognized are recorded as Deferred revenues until revenue recognition criteria are met. Client prepayments (even if nonrefundable) are deferred and recognized over future periods as services are delivered or performed. Revenues before reimbursements (“net revenues”) include the margin earned on computer hardware, software and related services resale, as well as revenues from alliance agreements. Reimbursements include billings for travel and other out-of-pocket expenses and third-party costs, such as the cost of hardware, software and related services resales. In addition, Reimbursements include allocations from gross billings to record an amount equivalent to reimbursable costs, where billings do not specifically identify reimbursable expenses. The Company reports revenues net of any revenue-based taxes assessed by governmental authorities that are imposed on and concurrent with specific revenue-producing transactions. |
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Employee Share-Based Compensation Arrangements | 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 materially from original estimates. |
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Income Taxes | Income Taxes The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. 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. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes those tax positions are not more likely than not of being sustained if challenged. Each fiscal quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. |
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Translation of Non-U.S. Currency Amounts | Translation of Non-U.S. Currency Amounts Assets and liabilities of non-U.S. 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. |
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Cash and Cash Equivalents | 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. Cash and cash equivalents also include restricted cash of $45,478 and $45,935 as of August 31, 2016 and 2015, respectively, which primarily relates to cash held to meet certain insurance requirements. 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. |
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Client Receivables, Unbilled Services and Allowances | Client Receivables, Unbilled Services and Allowances The Company records its client receivables and unbilled services at their face amounts less allowances. On a periodic basis, the Company evaluates its receivables and unbilled services and establishes allowances based on historical experience and other currently available information. As of August 31, 2016 and 2015, total allowances recorded for client receivables and unbilled services were $79,440 and $70,165, respectively. The allowance reflects the Company’s best estimate of collectibility risks on outstanding receivables and unbilled services. In limited circumstances, the Company agrees 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. |
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Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s financial instruments, consisting primarily of cash and cash equivalents, foreign currency exchange rate instruments, client receivables and unbilled services, are exposed to concentrations of credit risk. The Company places its cash and cash equivalents and foreign exchange instruments with highly-rated financial institutions, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. Client receivables are dispersed across many different industries and countries; therefore, concentrations of credit risk are limited. |
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Investments | Investments All 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 are primarily non-marketable equity securities of privately held companies and are accounted for using either the equity or cost methods of accounting, in accordance with the requirements of Accounting Standards Codification 323, Investments—Equity Method and Joint Ventures. Marketable securities are classified as available-for-sale investments and reported at fair value with changes in unrealized gains and losses recorded as a separate component of Accumulated other comprehensive loss until realized. Interest and amortization of premiums and discounts for debt securities are included in Interest income. Cost method investments are periodically assessed for other-than-temporary impairment. For investments in privately held companies, if there are no identified events or circumstances that would have a significant adverse effect on the fair value of the investment, the fair value is not estimated. If an investment is deemed to have experienced an other-than-temporary decline below its cost basis, the Company reduces the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establishes a new cost basis for the investment. |
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Property and Equipment | Property and Equipment 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:
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Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of net assets acquired. The Company reviews the recoverability of goodwill by reportable operating segment annually, or more frequently when indicators of impairment exist. Based on the results of its annual impairment analysis, the Company determined that no impairment existed as of August 31, 2016 and 2015, as each reportable operating segment’s estimated fair value substantially exceeded its carrying value. |
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Long-Lived Assets | 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. |
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncement In August 2016, the Company early adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes, which amends existing guidance on income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. The Company adopted this ASU using the retrospective method which required reclassification of current deferred taxes as previously reported on the Company’s August 31, 2015 Consolidated Balance Sheets to non-current, resulting in an increase to non-current deferred tax assets of $815,909 and a decrease to noncurrent deferred tax liabilities of $22,218. New Accounting Pronouncements On March 31, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share-based payment transactions. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, the ASU includes provisions that impact the classification of awards as either equity or liabilities and the classification of excess tax benefits on the cash flow statements. The Company will early adopt the standard effective September 1, 2016. Following adoption, the primary impact on the Company’s Consolidated Financial Statements will be the recognition of excess tax benefits in the provision for income taxes rather than Additional paid-in capital, which will likely result in increased volatility in the reported amounts of income tax expense and net income. The Company estimates this change will reduce its fiscal 2017 effective tax rate by less than two percentage points. The actual impact of adopting this standard on the effective tax rate will vary depending on the Company’s share price during fiscal 2017. Provisions of the new guidance related to changes to classification of excess tax benefits in the cash flow statements are expected to be adopted retrospectively. The Company is continuing to evaluate the impacts of the adoption of this guidance and its preliminary assessments are subject to change. On March 15, 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement to retrospectively apply equity method accounting when an entity increases ownership or influence in a previously held investment. The ASU will be effective for the Company beginning September 1, 2017, including interim periods in its fiscal year 2018. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial Statements. On February 25, 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. The ASU will be effective for the Company beginning September 1, 2019, including interim periods in its fiscal year 2020, and allows for a modified retrospective method upon adoption. The Company is assessing the impact of this ASU on its Consolidated Financial Statements. On January 5, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will be effective for the Company beginning September 1, 2018, including interim periods in its fiscal year 2019. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial Statements. On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning September 1, 2018, including interim periods in its fiscal year 2019, and allows for both retrospective and modified retrospective methods of adoption. The Company will adopt the guidance on September 1, 2018 and apply the modified retrospective method. The Company is assessing the impact of this ASU on its Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment Estimated Useful Lives | Depreciation of property and equipment is computed on a straight-line basis over the following estimated useful lives:
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Selected Components of Operating Expenses | Selected components of operating expenses were as follows:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss |
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PROPERTY AND EQUIPMENT (Tables) |
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Components of Property and Equipment, Net | The components of Property and equipment, net were as follows:
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GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTAGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by reportable operating segment were as follows:
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Schedule of Finite-Lived Intangible Assets [Table Text Block] | The Company’s definite-lived intangible assets by major asset class were as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Estimated future amortization related to intangible assets held at August 31, 2016 is as follows:
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional and Fair Values of All Derivative Instruments | The notional and fair values of all derivative instruments were as follows:
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OffsettingDerivativeAssetsandLiabilities [Table Text Block] | The potential effect of netting derivative assets against liabilities under the counterparty master agreements was as follows:
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BORROWINGS AND INDEBTEDNESS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts of Borrowing Facilities and Borrwings Under Facilities, Table | As of August 31, 2016, the Company had the following borrowing facilities, including the issuance of letters of credit, to support general working capital purposes:
_______________
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and Deferred Income Taxes by Period |
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Components of Income Before Income Taxes | The components of Income before income taxes were as follows:
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Reconciliation of the U.S. Federal Statutory Income Tax Rate to Effective Tax Rate | The reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate was as follows:
_______________
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Components of Deferred Tax Assets And Liabilities | The components of the Company’s deferred tax assets and liabilities included the following:
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Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows:
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RETIREMENT AND PROFIT SHARING PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine the Fiscal Year-End Pension Benefit | The weighted-average assumptions used to determine the defined benefit pension obligations as of August 31 and the net periodic pension expense were as follows:
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Schedule of Changes in Benefit Obligation, Plan Assets and Funded Status |
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Schedule of Estimated Amounts to be Amortized From AOCI |
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Schedule of Accumulated Benefit Obligation | The accumulated benefit obligation for defined benefit pension plans as of August 31, 2016 and 2015 was as follows:
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Schedule of Projected Benefit Obligation in Excess of Plan Assets | 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, 2016 and 2015:
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Schedule of Accumulated Benefit Obligation in Excess of Plan Assets |
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Schedule Weighted-Average Plan Assets Allocation | The Company’s target allocation for fiscal 2017 and weighted-average plan assets allocations as of August 31, 2016 and 2015 by asset category for defined benefit pension plans were as follows:
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Schedule of Fair Value of Plan Assets |
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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:
_______________ (1) Excludes the impact of the anticipated U.S. pension plan termination noted below. |
SHARE-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-Based Compensation | A summary of information with respect to share-based compensation is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Share Units |
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MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Purchase and Redemption Activity | The Company’s share purchase activity during fiscal 2016 was as follows:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend Activity | The Company’s dividend activity during fiscal 2016 was as follows:
|
LEASE COMMITMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Expense, Including Operating Costs and Taxes and Sublease Income from Third Parties | Rental expense, including operating costs and taxes, and sublease income from third parties during fiscal 2016, 2015 and 2014 was as follows:
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Future Minimum Rental Commitments under Non-cancelable Operating Leases | Future minimum rental commitments under non-cancelable operating leases as of August 31, 2016 were as follows:
|
SEGMENT REPORTING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Operating Segments | The Company’s reportable operating segments are the five operating groups, which are Communications, Media & Technology, Financial Services, Health & Public Service, Products and Resources. Information regarding the Company’s reportable operating segments is as follows:
_______________
|
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Revenues Attributed to Geographic Areas | Revenues are attributed to geographic regions and countries based on where client services are supervised. Information regarding geographic regions and countries is as follows:
_______________
|
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Concentration of Assets by Country | The Company conducts business in Ireland and in the following countries that hold 10% or more of its total consolidated Property and equipment, net:
|
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Net Revenues by Type of Work | evenues by type of work were as follows:
|
QUARTERLY DATA (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property and Equipment (Details) |
12 Months Ended |
---|---|
Aug. 31, 2016 | |
Computers, related equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 2 years |
Computers, related equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of lease term or 15 years |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Selected Components of Operating Expenses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|||
Accounting Policies [Abstract] | |||||
Training costs | $ 940,509 | $ 841,440 | $ 786,517 | ||
Research and development costs | 643,407 | 625,541 | 639,513 | ||
Advertising costs | 80,601 | 79,899 | 87,559 | ||
(Release of) provision for doubtful accounts (1) | [1] | $ 15,312 | $ (10,336) | $ (12,867) | |
|
ACCUMULATED OTHER COMPREHENSIVE LOSS (Detail) - USD ($) $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
||||||||
Foreign currency translation | ||||||||||
Beginning balance | $ (839,479) | $ (339,326) | $ (434,913) | |||||||
Foreign currency translation | (67,884) | (524,729) | 91,170 | |||||||
Income tax benefit | 2,120 | 6,520 | 2,236 | |||||||
Portion attributable to noncontrolling interests | 2,288 | 18,056 | 2,181 | |||||||
Foreign currency translation, net of tax | (63,476) | (500,153) | 95,587 | |||||||
Ending balance | (902,955) | (839,479) | (339,326) | |||||||
Defined benefit plans | ||||||||||
Beginning balance | (560,303) | [1] | (568,177) | [1] | (456,180) | |||||
Actuarial losses | (481,331) | (77,228) | (177,243) | |||||||
Pension settlement | 0 | 64,382 | 0 | |||||||
Prior service costs arising during the period | 1,561 | (79) | (468) | |||||||
Reclassifications into net periodic pension and post-retirement expense | 26,639 | 27,538 | 20,026 | |||||||
Income tax benefit (expense) | 153,869 | (6,725) | 45,459 | |||||||
Portion attributable to noncontrolling interests | 535 | (14) | 229 | |||||||
Defined benefit plans, net of tax | (298,727) | 7,874 | (111,997) | |||||||
Ending balance (1) | [1] | (859,030) | (560,303) | (568,177) | ||||||
Cash flow hedges | ||||||||||
Beginning balance | (34,568) | [2] | (16,694) | [2] | (225,069) | |||||
Unrealized gains (losses) | 180,196 | (17,207) | 222,100 | |||||||
Reclassification adjustments into Cost of services | (23,004) | (15,207) | 101,026 | |||||||
Income tax (expense) benefit | (51,153) | 14,508 | (114,325) | |||||||
Portion attributable to noncontrolling interests | (190) | 32 | (426) | |||||||
Cash flow hedges, net of tax | 105,849 | (17,874) | 208,375 | |||||||
Ending balance (2) | [2] | 71,281 | (34,568) | (16,694) | ||||||
Marketable securities | ||||||||||
Beginning balance | (1,634) | 0 | 0 | |||||||
Unrealized gain (loss) | 2,231 | (2,693) | 0 | |||||||
Income tax (expense) benefit | (873) | 1,056 | 0 | |||||||
Portion attributable to noncontrolling interests | (2) | 3 | 0 | |||||||
Marketable securities, net of tax | 1,356 | (1,634) | 0 | |||||||
Ending balance | (278) | (1,634) | 0 | |||||||
Accumulated other comprehensive loss | (1,690,982) | $ (1,435,984) | $ (924,197) | |||||||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | (50,410) | |||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 61,135 | |||||||||
|
PROPERTY AND EQUIPMENT - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,686,567 | $ 2,450,852 | |
Total accumulated depreciation | (1,730,025) | (1,648,968) | |
Property and equipment, net | 956,542 | 801,884 | $ 793,444 |
Buildings and land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,914 | 2,939 | |
Computers, related equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,428,134 | 1,386,226 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 354,523 | 310,971 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 900,996 | $ 750,716 |
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 117,882 | $ 99,633 | $ 75,232 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 107,291 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 92,066 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 74,617 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 65,658 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 45,747 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 124,772 | ||
Net Carrying Amount | $ 510,151 | $ 464,907 |
DERIVATIVE FINANCIAL INSTRUMENTS - Notional and Fair Values of All Derivative Instruments (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
Assets | ||
Fair value of derivative assets | $ 129,603 | $ 60,018 |
Liabilities | ||
Fair value of derivative liabilities | 33,774 | 129,291 |
Total fair value | 95,829 | (69,273) |
Total notional value | 7,604,486 | 6,363,110 |
Cash Flow Hedging | Other current assets | ||
Assets | ||
Fair value of derivative assets | 71,955 | 28,282 |
Cash Flow Hedging | Other non-current assets | ||
Assets | ||
Fair value of derivative assets | 45,683 | 13,503 |
Cash Flow Hedging | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 10,820 | 48,683 |
Cash Flow Hedging | Other non-current liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | 5,547 | 48,746 |
Other Derivatives | Other current assets | ||
Assets | ||
Fair value of derivative assets | 11,965 | 18,233 |
Other Derivatives | Other accrued liabilities | ||
Liabilities | ||
Fair value of derivative liabilities | $ 17,407 | $ 31,862 |
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Derivative [Line Items] | |||
Fair value of derivative assets | $ 129,603 | $ 60,018 | |
Fair value of derivative instruments with credit-risk-related contingent features in a liability position | 33,774 | ||
Reclassification adjustments into Cost of services | 23,004 | 15,207 | $ (101,026) |
Gain (loss) on cash flow hedges to be reclassified into earnings | 61,135 | ||
Gain/(loss) recognized in income on derivatives | (84,293) | (257,783) | $ 78,446 |
Offsetting Derivative Asset and Liabilities [Abstract] | |||
Net derivative assets | 114,785 | 36,661 | |
Net derivative liabilities | 18,956 | 105,934 | |
Total fair value | $ 95,829 | $ (69,273) |
BORROWINGS AND INDEBTEDNESS - Borrowing Facilities including Letters of Credit (Details) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Aug. 31, 2016
USD ($)
| ||||||||
Debt Instrument [Line Items] | ||||||||
Facility Amount | $ 1,680,565 | |||||||
Borrowing Under Facilities | $ 0 | |||||||
Liens Securing Obligations Percentage of Assets | 30.00% | |||||||
LineofCreditFacilityCovenantComplianceDebttoCashFlowRatioMaximum | 1.75 | |||||||
LineOfCreditFacilityCovenantComplianceDebtToCashFlowRatioMinimum | 1.00 | |||||||
Syndicated Loan Facility Due December 22, 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility Amount | $ 1,000,000 | [1] | ||||||
Borrowing Under Facilities | 0 | [1] | ||||||
Separate, uncommitted, unsecured multicurrency revolving credit facilities (2) | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility Amount | 515,873 | [2] | ||||||
Borrowing Under Facilities | 0 | [2] | ||||||
Local guaranteed and non-guaranteed lines of credit (3) | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility Amount | 164,692 | [3] | ||||||
Borrowing Under Facilities | 0 | [3] | ||||||
Syndicated Loan Facility Due October 31, 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility Amount | $ 1,000,000 | |||||||
|
BORROWINGS AND INDEBTEDNESS - Additional Information (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
Letters of credit outstanding under borrowing facilities | $ 168,663 | $ 166,506 |
Debt, Long-term and Short-term, Combined Amount | $ 27,230 | $ 27,435 |
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Current taxes: | |||
U.S. federal | $ 314,121 | $ 617,488 | $ 397,722 |
U.S. state and local | 38,255 | 72,133 | 46,854 |
Non-U.S. | 835,653 | 906,229 | 751,259 |
Total current tax expense | 1,188,029 | 1,595,850 | 1,195,835 |
Deferred taxes: | |||
U.S. federal | 8,588 | (94,621) | 26,941 |
U.S. state and local | 1,056 | (11,245) | 2,911 |
Non-U.S. | 56,296 | (353,243) | (103,944) |
Total deferred tax expense (benefit) | 65,940 | (459,109) | (74,092) |
Total | $ 1,253,969 | $ 1,136,741 | $ 1,121,743 |
INCOME TAXES - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
U.S. sources | $ 1,047,909 | $ 1,321,511 | $ 1,119,627 |
Non-U.S. sources | 4,555,663 | 3,089,019 | 3,178,074 |
INCOME BEFORE INCOME TAXES | $ 5,603,572 | $ 4,410,530 | $ 4,297,701 |
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|||
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
U.S. state and local taxes, net | 1.10% | 1.30% | 1.30% | ||
Non-U.S. operations taxed at lower rates | (12.00%) | (15.40%) | (12.10%) | ||
Final determinations (1) | [1] | (2.10%) | (5.10%) | (1.70%) | |
Other net activity in unrecognized tax benefits | 2.70% | 3.20% | 3.00% | ||
Change in indefinite reinvestment assertion | (0.60%) | 5.60% | 0.00% | ||
Divestitures | (3.40%) | 0.00% | 0.00% | ||
Other, net | 1.70% | 1.20% | 0.60% | ||
Effective income tax rate | 22.40% | 25.80% | 26.10% | ||
|
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
Deferred tax assets | ||
Pensions | $ 306,776 | $ 278,944 |
Revenue recognition | 113,890 | 112,113 |
Compensation and benefits | 797,707 | 558,127 |
Share-based compensation | 262,508 | 262,040 |
Tax credit carryforwards | 898,073 | 914,716 |
Net operating loss carryforwards | 131,018 | 119,463 |
Depreciation and amortization | 97,015 | 97,218 |
Deferred amortization deductions | 687,351 | 687,406 |
Indirect effects of unrecognized tax benefits | 354,544 | 357,031 |
Other | 139,105 | 157,449 |
Deferred Tax Assets, Gross, Total | 3,787,987 | 3,544,507 |
Valuation allowance | (980,196) | (963,874) |
Total deferred tax assets | 2,807,791 | 2,580,633 |
Deferred tax liabilities: | ||
Revenue recognition | (109,749) | (75,352) |
Depreciation and amortization | (205,431) | (167,467) |
Investments in subsidiaries | (330,673) | (213,351) |
Other | (195,646) | (125,907) |
Total deferred tax liabilities | (841,499) | (582,077) |
Net deferred tax assets | $ 1,966,292 | $ 1,998,556 |
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 997,935 | $ 1,333,606 |
Additions for tax positions related to the current year | 163,097 | 155,637 |
Additions for tax positions related to prior years | 126,353 | 97,694 |
Reductions for tax positions related to prior years | (63,782) | (470,147) |
Statute of limitations expirations | (208,295) | (28,116) |
Settlements with tax authorities | (3,703) | (33,743) |
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 25,850 | 56,996 |
Balance, end of year | $ 985,755 | $ 997,935 |
RETIREMENT AND PROFIT SHARING PLANS - Accumulated Benefit Obligation for Material Defined Benefit Pension Plans (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 2,017,437 | $ 1,626,972 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,592,598 | $ 1,313,946 |
RETIREMENT AND PROFIT SHARING PLANS - Information for Material Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,030,006 | $ 142,244 |
Fair value of plan assets | 1,801,435 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,400,510 | 757,741 |
Fair value of plan assets | 664,220 | 236,297 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 500,964 | 403,095 |
Fair value of plan assets | $ 27,130 | $ 24,643 |
RETIREMENT AND PROFIT SHARING PLANS - Information for Material Defined Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 2,017,437 | $ 142,244 |
Fair value of plan assets | 1,801,435 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,233,952 | 629,524 |
Fair value of plan assets | $ 627,738 | $ 204,076 |
RETIREMENT AND PROFIT SHARING PLANS - Estimated Future Benefit Payments (Details) $ in Thousands |
Aug. 31, 2016
USD ($)
|
|||
---|---|---|---|---|
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
2017 | $ 46,881 | [1] | ||
2018 | 49,865 | [1] | ||
2019 | 53,277 | [1] | ||
2020 | 56,950 | [1] | ||
2021 | 61,361 | [1] | ||
2022-2026 | 373,921 | [1] | ||
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
2017 | 44,537 | |||
2018 | 50,094 | |||
2019 | 55,964 | |||
2020 | 66,225 | |||
2021 | 75,166 | |||
2022-2026 | 416,507 | |||
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
2017 | 10,259 | |||
2018 | 11,469 | |||
2019 | 12,598 | |||
2020 | 13,942 | |||
2021 | 15,830 | |||
2022-2026 | $ 110,756 | |||
|
SHARE-BASED COMPENSATION - Summary of Information with Respect to Share-Based Compensation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total share-based compensation expense included in Net income | $ 758,176 | $ 680,329 | $ 671,301 |
Income tax benefit related to share-based compensation included in Net income | $ 236,423 | $ 212,019 | $ 206,007 |
SHARE-BASED COMPENSATION - Restricted Share Unit Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Number of Restricted Share Units | |||
Nonvested balance as of August 31, 2013(in shares) | 24,733,581 | ||
Granted (in shares) (1) | 9,699,688 | ||
Vested (in shares) (2) | (10,987,988) | ||
Forfeited (in shares) | (1,481,576) | ||
Nonvested balance as of August 31, 2014 (in shares) | 21,963,705 | 24,733,581 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested balance as of August 31, 2013 (in dollar per share) | $ 71.83 | ||
Granted (in dollar per share) (1) | 105.16 | $ 89.63 | $ 80.61 |
Vested (in dollar per share) (2) | 72.50 | ||
Forfeited (in dollar per share) | 77.82 | ||
Nonvested balance as of August 31, 2014 (in dollar per share) | $ 85.81 | $ 71.83 | |
Vested, grant-date fair value | $ 796,620 | $ 581,936 | $ 628,999 |
SHARE-BASED COMPENSATION - Stock Option Activity (Details) |
12 Months Ended |
---|---|
Aug. 31, 2016
$ / shares
shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 23,310 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares | $ 37.46 |
Weighted Average Remaining Contractual Term | |
Options outstanding as of August 31, (in years) | 2 years 6 months |
SHAREHOLDERS' EQUITY (Details) - € / shares |
12 Months Ended | |
---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
|
Class of Stock [Line Items] | ||
Number of shares used to redeem one share (in shares) | 1 | |
Deferred shares [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, shares authorized | 40,000 | 40,000 |
Common Stock, Par or Stated Value Per Share | € 1.00 | € 1.00 |
Accenture Holdings plc Ordinary Share [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Voting Rights | 1 |
MATERIAL TRANSACTIONS AFFECTING SHAREHOLDERS' EQUITY - Company's Share Purchase Activity (Details) $ in Thousands |
12 Months Ended |
---|---|
Aug. 31, 2016
USD ($)
shares
| |
Share Purchase Activity [Line Items] | |
Accenture Canada Holdings Inc. exchangeable shares (in shares) | shares | 40,709 |
Total (in shares) | shares | 653,222 |
Accenture Canada Holdings Inc. exchangeable shares | $ | $ 4,552 |
Total | $ | $ 72,193 |
Common Class I | |
Share Purchase Activity [Line Items] | |
Accenture Holdings plc ordinary shares (in shares) | shares | 612,513 |
Accenture Holdings plc ordinary shares | $ | $ 67,641 |
LEASE COMMITMENTS - Rental Expense, including Operating Costs and Taxes and Sublease Income from Third Parties (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Leases [Abstract] | |||
Rental expense | $ 578,149 | $ 547,206 | $ 539,711 |
Sublease income from third parties | $ (26,403) | $ (27,293) | $ (29,482) |
LEASE COMMITMENTS - Future Minimum Rental Commitments under Non-cancelable Operating Leases (Details) $ in Thousands |
Aug. 31, 2016
USD ($)
|
---|---|
Operating lease payments | |
2017 | $ 516,622 |
2018 | 445,853 |
2019 | 375,393 |
2020 | 318,828 |
2021 | 257,949 |
Thereafter | 902,659 |
Operating lease payments | 2,817,304 |
Operating sublease income | |
2017 | (16,147) |
2018 | (15,410) |
2019 | (13,996) |
2020 | (12,324) |
2021 | (11,074) |
Thereafter | (50,350) |
Operating sublease income | $ (119,301) |
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands |
Aug. 31, 2016 |
Aug. 31, 2015 |
---|---|---|
Loss Contingencies [Line Items] | ||
Fair value of Avanade redeemable common stock and options | $ 54,221 | $ 79,023 |
Expressly limited performance guarantee | 749,000 | 655,000 |
Portion of guarantee not recoverable | $ 113,000 | $ 43,000 |
SEGMENT REPORTING - Company's Reportable Operating Segments (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016
USD ($)
|
May 31, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Nov. 30, 2015
USD ($)
|
Aug. 31, 2015
USD ($)
|
May 31, 2015
USD ($)
|
Feb. 28, 2015
USD ($)
|
Nov. 30, 2014
USD ($)
|
Aug. 31, 2016
USD ($)
|
Aug. 31, 2015
USD ($)
|
Aug. 31, 2014
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 5 | ||||||||||
Net revenues | $ 8,489,238 | $ 8,434,757 | $ 7,945,565 | $ 8,013,163 | $ 7,888,505 | $ 7,770,382 | $ 7,493,329 | $ 7,895,715 | $ 32,882,723 | $ 31,047,931 | $ 30,002,394 |
Depreciation, amortization and asset impairments | 729,052 | 645,923 | 620,743 | ||||||||
Operating income | 1,195,198 | $ 1,305,943 | $ 1,088,044 | $ 1,221,260 | 1,093,608 | $ 1,133,519 | $ 1,021,033 | $ 1,187,709 | 4,810,445 | 4,435,869 | 4,300,512 |
Assets | 3,904,223 | 3,620,335 | 3,904,223 | 3,620,335 | 3,428,413 | ||||||
Communications, Media & Technology | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 6,615,717 | 6,349,372 | 5,923,821 | ||||||||
Depreciation, amortization and asset impairments | 141,356 | 152,329 | 136,029 | ||||||||
Operating income | 965,574 | 871,388 | 770,166 | ||||||||
Assets | 923,764 | 798,623 | 923,764 | 798,623 | 926,952 | ||||||
Financial Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 7,031,053 | 6,634,771 | 6,511,228 | ||||||||
Depreciation, amortization and asset impairments | 139,518 | 128,413 | 139,759 | ||||||||
Operating income | 1,127,750 | 1,079,397 | 957,347 | ||||||||
Assets | 123,827 | 186,739 | 123,827 | 186,739 | 128,179 | ||||||
Health & Public Service | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 5,986,878 | 5,462,550 | 5,021,692 | ||||||||
Depreciation, amortization and asset impairments | 134,788 | 115,010 | 101,345 | ||||||||
Operating income | 807,012 | 700,960 | 678,663 | ||||||||
Assets | 892,569 | 812,278 | 892,569 | 812,278 | 791,084 | ||||||
Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 8,395,038 | 7,596,051 | 7,394,980 | ||||||||
Depreciation, amortization and asset impairments | 206,806 | 168,731 | 169,704 | ||||||||
Operating income | 1,282,461 | 1,082,351 | 991,844 | ||||||||
Assets | 1,281,551 | 1,158,953 | 1,281,551 | 1,158,953 | 974,546 | ||||||
Resources | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 4,838,963 | 4,988,627 | 5,135,309 | ||||||||
Depreciation, amortization and asset impairments | 106,584 | 81,440 | 73,906 | ||||||||
Operating income | 627,648 | 701,773 | 902,492 | ||||||||
Assets | 820,273 | 723,113 | 820,273 | 723,113 | 735,048 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 15,074 | 16,560 | 15,364 | ||||||||
Depreciation, amortization and asset impairments | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Assets | $ (137,761) | $ (59,371) | $ (137,761) | $ (59,371) | $ (127,396) |
SEGMENT REPORTING - Information Regarding Geography and Countries (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 8,489,238 | $ 8,434,757 | $ 7,945,565 | $ 8,013,163 | $ 7,888,505 | $ 7,770,382 | $ 7,493,329 | $ 7,895,715 | $ 32,882,723 | $ 31,047,931 | $ 30,002,394 |
Reimbursements | 476,342 | 534,287 | 451,488 | 452,821 | 476,006 | 504,684 | 438,261 | 447,542 | 1,914,938 | 1,866,493 | 1,872,284 |
Revenues | 8,965,580 | $ 8,969,044 | $ 8,397,053 | $ 8,465,984 | 8,364,511 | $ 8,275,066 | $ 7,931,590 | $ 8,343,257 | 34,797,661 | 32,914,424 | 31,874,678 |
Property and equipment, net as of August 31 | 956,542 | 801,884 | 956,542 | 801,884 | 793,444 | ||||||
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 15,653,290 | 14,209,387 | 12,796,846 | ||||||||
Reimbursements | 970,248 | 891,443 | 882,481 | ||||||||
Revenues | 16,623,538 | 15,100,830 | 13,679,327 | ||||||||
Property and equipment, net as of August 31 | 244,351 | 230,359 | 244,351 | 230,359 | 240,886 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 11,448,361 | 10,929,572 | 11,254,953 | ||||||||
Reimbursements | 635,362 | 628,342 | 624,219 | ||||||||
Revenues | 12,083,723 | 11,557,914 | 11,879,172 | ||||||||
Property and equipment, net as of August 31 | 220,500 | 179,925 | 220,500 | 179,925 | 190,450 | ||||||
Growth Markets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 5,781,072 | 5,908,972 | 5,950,595 | ||||||||
Reimbursements | 309,328 | 346,708 | 365,584 | ||||||||
Revenues | 6,090,400 | 6,255,680 | 6,316,179 | ||||||||
Property and equipment, net as of August 31 | $ 491,691 | $ 391,600 | $ 491,691 | $ 391,600 | $ 362,108 |
SEGMENT REPORTING - Consolidated Net Revenues by Country (Details) |
12 Months Ended | ||
---|---|---|---|
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
United States | |||
Segment Reporting Information [Line Items] | |||
Net revenues, percentage by country | 46.00% | 43.00% | 40.00% |
IRELAND | |||
Segment Reporting Information [Line Items] | |||
Net revenues, percentage by country | 1.00% | 1.00% | 1.00% |
SEGMENT REPORTING - Consolidated Property and Equipment, Net by Country (Details) |
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
---|---|---|---|
United States | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net, percentage by country | 25.00% | 28.00% | 29.00% |
India | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net, percentage by country | 25.00% | 26.00% | 22.00% |
IRELAND | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net, percentage by country | 4.00% | 2.00% | 2.00% |
SEGMENT REPORTING - Net Revenues by Type of Work (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 8,489,238 | $ 8,434,757 | $ 7,945,565 | $ 8,013,163 | $ 7,888,505 | $ 7,770,382 | $ 7,493,329 | $ 7,895,715 | $ 32,882,723 | $ 31,047,931 | $ 30,002,394 |
Reimbursements | 476,342 | 534,287 | 451,488 | 452,821 | 476,006 | 504,684 | 438,261 | 447,542 | 1,914,938 | 1,866,493 | 1,872,284 |
Revenues | $ 8,965,580 | $ 8,969,044 | $ 8,397,053 | $ 8,465,984 | $ 8,364,511 | $ 8,275,066 | $ 7,931,590 | $ 8,343,257 | 34,797,661 | 32,914,424 | 31,874,678 |
Consulting | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 17,867,891 | 16,203,915 | 15,737,661 | ||||||||
Outsourcing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | $ 15,014,832 | $ 14,844,016 | $ 14,264,733 |
QUARTERLY DATA (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2014 |
Aug. 31, 2016 |
Aug. 31, 2015 |
Aug. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 8,489,238 | $ 8,434,757 | $ 7,945,565 | $ 8,013,163 | $ 7,888,505 | $ 7,770,382 | $ 7,493,329 | $ 7,895,715 | $ 32,882,723 | $ 31,047,931 | $ 30,002,394 |
Reimbursements | 476,342 | 534,287 | 451,488 | 452,821 | 476,006 | 504,684 | 438,261 | 447,542 | 1,914,938 | 1,866,493 | 1,872,284 |
Revenues | 8,965,580 | 8,969,044 | 8,397,053 | 8,465,984 | 8,364,511 | 8,275,066 | 7,931,590 | 8,343,257 | 34,797,661 | 32,914,424 | 31,874,678 |
Cost of services before reimbursable expenses | 5,833,698 | 5,745,205 | 5,575,749 | 5,450,644 | 5,384,100 | 5,245,477 | 5,252,690 | 5,356,425 | 22,605,296 | 21,238,692 | 20,317,928 |
Reimbursable expenses | 476,342 | 534,287 | 451,488 | 452,821 | 476,006 | 504,684 | 438,261 | 447,542 | 1,914,938 | 1,866,493 | 1,872,284 |
Cost of services | 6,310,040 | 6,279,492 | 6,027,237 | 5,903,465 | 5,860,106 | 5,750,161 | 5,690,951 | 5,803,967 | 24,520,234 | 23,105,185 | 22,190,212 |
OPERATING INCOME | 1,195,198 | 1,305,943 | 1,088,044 | 1,221,260 | 1,093,608 | 1,133,519 | 1,021,033 | 1,187,709 | 4,810,445 | 4,435,869 | 4,300,512 |
NET INCOME | 1,130,781 | 950,283 | 1,399,858 | 868,681 | 788,125 | 850,230 | 743,192 | 892,242 | 4,349,603 | 3,273,789 | 3,175,958 |
NET INCOME ATTRIBUTABLE TO ACCENTURE HOLDINGS PLC | $ 1,117,267 | $ 938,140 | $ 1,387,417 | $ 856,938 | $ 777,179 | $ 838,449 | $ 730,356 | $ 880,380 | $ 4,299,762 | $ 3,226,364 | $ 3,122,021 |
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