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What changed in Accenture's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Accenture's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+434 added−385 removedSource: 10-K (2024-10-10) vs 10-K (2023-10-12)

Top changes in Accenture's 2024 10-K

434 paragraphs added · 385 removed · 175 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

62 edited+215 added−12 removed44 unchanged
Biggest changeCommunications, Media & Technology FY23 Revenues of $11.5B Percent of Group’s FY23 Revenue 42% 16% 42% Communications & Media High Tech Software & Platforms Wireline, wireless/mobile, broadcast, entertainment, gaming, print, online publishing; television networks, streaming services, content; sports including online, in-person, platform and associated infrastructure; cable and satellite communications and media infrastructure providers Enterprise and consumer technology, network and equipment manufacturers; silicon design, semiconductor design and foundries; data centers; AI computing manufacturers; high-tech/electronic manufacturing including battery, engineering design automation and medical equipment companies Cloud-based enterprise and consumer software companies, large language model owners; both subscription and ad-driven consumer platforms spanning ecommerce, social, media, advertising and gaming Financial Services FY23 Revenues of $12.1B Percent of Group’s FY23 Revenue 69% 31% Banking & Capital Markets Insurance Retail and commercial banks, mortgage lenders, payment providers, corporate and investment banks, private equity firms, market infrastructure providers, wealth and asset management firms, broker/dealers, depositories, exchanges, clearing and settlement organizations, retirement services providers and other diversified financial enterprises Property and casualty, life and annuities and group benefits insurers, reinsurance firms and insurance brokers Health & Public Service FY23 Revenues of $12.6B Percent of Group’s FY23 Revenue 32% 68% Health Public Service Healthcare providers, such as hospitals, public health systems, policy-making authorities, health insurers (payers), and industry organizations and associations Defense departments and military forces; public safety authorities; justice departments; human and social services agencies; educational institutions; non-profit organizations; cities; and postal, customs, revenue and tax agencies Our work with clients in the U.S. federal government is delivered through Accenture Federal Services, a U.S. company and a wholly owned subsidiary of Accenture LLP, and represented approximately 37% of our Health & Public Service industry group’s revenues and 15% of our North America revenues in fiscal 2023.
Biggest changeCommunications, Media & Technology FY24 Revenues of $10.8B Percent of Group’s FY24 Revenue 40% 18% 42% Communications & Media High Tech Software & Platforms B2C and B2B communications service providers (both fixed and mobile), MVNO (mobile virtual network operators) and network infrastructure companies inclusive of edge and IOT connectivity infrastructure, cable and satellite communications, broadcasters and TV networks, gaming, print, online and traditional publishing, entertainment, sports, content producers (including studios), content aggregators and streaming live events (sports) and media infrastructure providers, integrated advertising agencies and creative Enterprise technology, hardware, and associated manufacturing; consumer technology, electronics, batteries, and associated manufacturing; network equipment and device providers and manufacturers, data centers; semiconductor including silicon design and development, foundries, capital equipment, and manufacturing; medical equipment companies and manufacturers Cloud-based enterprise and consumer software companies, large language model owners; both subscription and ad-driven consumer platforms spanning ecommerce, social, media, advertising and gaming Financial Services FY24 Revenues of $11.6B Percent of Group’s FY24 Revenue 69% 31% Banking & Capital Markets Insurance Retail and commercial banks, mortgage lenders, payment providers, corporate and investment banks, private equity firms, market infrastructure providers, wealth and asset management firms, broker/dealers, depositories, exchanges, clearing and settlement organizations, retirement services providers and other diversified financial enterprises Property and casualty, life and annuities and group benefits insurers, reinsurance firms and insurance brokers Health & Public Service FY24 Revenues of $13.8B Percent of Group’s FY24 Revenue 31% 69% Health Public Service Healthcare providers, such as hospitals, public health systems, policy-making authorities, health insurers (payers), and industry organizations and associations Defense departments and military forces; public safety authorities; justice departments; human and social services agencies; educational institutions; non-profit organizations; cities; transportation agencies; and postal, customs, revenue and tax agencies Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
We have a global portfolio of patents and pending patent applications covering various technology areas, including AI, cloud, metaverse, cybersecurity, blockchain, automation, extended reality and analytics. We leverage patent, trade secret and copyright laws as well as contractual arrangements and confidentiality procedures to protect the intellectual property in our innovative services and solutions.
We have a global portfolio of patents and pending patent applications covering various technology areas, including AI, cloud, metaverse, cybersecurity, blockchain, automation, extended reality, analytics and quantum. We leverage patent, trade secret and copyright laws as well as contractual arrangements and confidentiality procedures to protect the intellectual property in our innovative services and solutions.
Through the use of data and transformative technologies such as AI, Internet of Things, artificial reality/virtual reality, advanced robotics, digital twins and metaverse we help our clients reinvent to achieve greater resilience, productivity and sustainability in their core operations and design and engineer intelligent products faster and more cost effectively.
Through the use of data and transformative technologies such as AI and generative AI, Internet of Things, artificial reality/virtual reality, advanced robotics, digital twins and metaverse, we help our clients reinvent to achieve greater resilience, productivity and sustainability in their core operations and design and engineer intelligent products faster and more cost effectively.
We are continuously innovating and investing in R&D for both existing and new forms of technology. Our focus in our Labs includes furthering innovation beyond traditional boundaries, such as science and space technologies. Our innovation hubs around the world help clients innovate at unmatched speed, scope and scale.
We are continuously innovating and investing in R&D for both existing and new forms of technology. Our focus in our Accenture Labs includes furthering innovation beyond traditional boundaries, such as science and space technologies. Our innovation hubs around the world help clients innovate at unmatched speed, scope and scale.
Business Risks Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on our clients’ businesses and levels of business activity. Global macroeconomic and geopolitical conditions affect us, our clients’ businesses and the markets they serve.
Business Risks Our results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and geopolitical conditions and the effects of these conditions on our clients’ businesses and levels of business activity. Global macroeconomic and geopolitical conditions affect us, our clients’ businesses and the markets they serve.
Our Health, Safety and Well-Being We are committed to creating a place where people can be successful both professionally and personally. We take a holistic view of well-being—including physical, mental, emotional and financial well-being—providing specially defined programs and practices to meet our people’s fundamental human needs. Table of Contents ACCENTURE 2023 FORM 10-K Item 1.
Our Health, Safety and Well-Being We are committed to creating a place where people can be successful both professionally and personally. We take a holistic view of well-being—including physical, mental, emotional and financial well-being—providing specially defined programs and practices to meet our people’s fundamental human needs. Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
Volatile, negative and uncertain economic and political conditions have in the past undermined and could in the future undermine business confidence in our significant markets and other markets, which are increasingly interdependent, causing our clients to reduce or defer their spending on new initiatives and technologies, and resulting in clients reducing, delaying or eliminating spending under existing contracts with us, which negatively affects our business.
Volatile, negative and uncertain economic and geopolitical conditions have in the past undermined and could in the future undermine business confidence in our significant markets and other markets, which are increasingly interdependent, causing our clients to reduce or defer their spending on new initiatives and technologies, and resulting in clients reducing, delaying or eliminating spending under existing contracts with us, which negatively affects our business.
We continuously innovate our services, capabilities and platforms through early adoption of new technologies such as generative AI, blockchain, robotics, 5G, edge computing, metaverse and quantum computing. We provide a range of capabilities that addresses the challenges faced by organizations today, including how to achieve total enterprise reinvention, manage change and develop new growth opportunities.
We continuously innovate our services, capabilities and platforms through early adoption of new technologies such as generative AI, blockchain, robotics, 5G, edge computing, metaverse and quantum computing. We provide a range of capabilities that addresses the challenges faced by organizations today, including how to achieve reinvention, manage change and develop new growth opportunities.
He served as senior managing director—Communications, Media & Technology in North America, from 2013 to 2019. Mr. Walsh has been with Accenture for 37 years. Organizational Structure Accenture plc was incorporated in Ireland on June 10, 2009 as a public limited company. We operate our business through subsidiaries of Accenture plc.
He served as senior managing director—Communications, Media & Technology in North America, from 2013 to 2019. Mr. Walsh has been with Accenture for 38 years. Organizational Structure Accenture plc was incorporated in Ireland on June 10, 2009 as a public limited company. We operate our business through subsidiaries of Accenture plc.
Business 6 Industry Groups We believe the depth and breadth of our industry expertise is a key competitive advantage which allows us to bring client-specific industry solutions to our clients to accelerate value creation. Our industry focus gives us an understanding of industry evolution, business issues and trends, industry operating models, capabilities and processes and new and emerging technologies.
Business 7 Industry Groups We believe the depth and breadth of our industry expertise is a key competitive advantage which allows us to bring client-specific industry solutions to our clients to accelerate value creation. Our industry focus gives us an understanding of industry evolution, business issues and trends, industry operating models, capabilities and processes and new and emerging technologies.
Our intention is to foster a culture and a workplace in which all of our people feel a sense of belonging and are respected and empowered to do their best work and to create 360° value for all our stakeholders. Table of Contents ACCENTURE 2023 FORM 10-K Item 1.
Our intention is to foster a culture and a workplace in which all of our people feel a sense of belonging and are respected and empowered to do their best work and to create 360° value for all our stakeholders. Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
We have a goal of reusing or recycling 100% of our e-waste, such as computers and servers, as well as all our office furniture, by the end of 2025. During fiscal 2023, we reused or recycled nearly 100% of our e-waste relating to computers, servers and uninterruptible power supply devices.
We have a goal of reusing or recycling 100% of our e-waste, such as computers and servers, as well as all our office furniture, by the end of 2025. During fiscal 2024, we reused or recycled nearly 100% of our e-waste relating to computers, servers and uninterruptible power supply devices.
KC McClure , 58, became our chief financial officer in January 2019. From June 2018 to January 2019, she served as managing director—Finance Operations, where she led our finance operations across the entirety of our businesses. From December 2016 to May 2018, she served as our finance director—Communications, Media & Technology.
KC McClure, 59, became our chief financial officer in January 2019. From June 2018 to January 2019, she served as managing director—Finance Operations, where she led our finance operations across the entirety of our businesses. From December 2016 to May 2018, she served as our finance director—Communications, Media & Technology.
Ongoing economic and political volatility and uncertainty and changing demand patterns affect our business in a number of other ways, including making it more difficult to accurately forecast client demand and effectively build our revenue and resource plans, particularly in consulting.
Ongoing economic and geopolitical volatility and uncertainty and changing demand patterns affect our business in a number of other ways, including making it more difficult to accurately forecast client demand and effectively build our revenue and resource plans, particularly in consulting.
Economic and political volatility and uncertainty is particularly challenging because it may take some time for the effects and changes in demand patterns resulting from these and other factors to manifest themselves in our business and results of operations.
Economic and geopolitical volatility and uncertainty is particularly challenging because it may take some time for the effects and changes in demand patterns resulting from these and other factors to manifest themselves in our business and results of operations.
Business 11 Environmental Sustainability We help our clients together with our ecosystem partners, to define, measure and achieve their environmental, social and governance goals by connecting sustainability with their transformation agendas across their strategy and operations to make their value chains more sustainable.
Business 12 Environmental Sustainability We help our clients together with our ecosystem partners, to define, measure and achieve their environmental, social and governance goals by connecting sustainability with their transformation agendas across their strategy and operations to make their value chains more sustainable.
The Consolidated Financial Statements reflect the ownership interests in Accenture Canada Holdings Inc. held by certain current and former members of Accenture Leadership as noncontrolling interests. The noncontrolling ownership interests were less than 1% as of August 31, 2023.
The Consolidated Financial Statements reflect the ownership interests in Accenture Canada Holdings Inc. held by certain current and former members of Accenture Leadership as noncontrolling interests. The noncontrolling ownership interests were less than 1% as of August 31, 2024.
Our deep industry and functional expertise is supported by proprietary assets and solutions that help organizations transform faster and become more resilient. Underpinned by technology, data, analytics, AI, change management, talent and sustainability capabilities, our Strategy & Consulting services help architect and accelerate all aspects of an organization’s total enterprise reinvention.
Our deep industry and functional expertise is supported by proprietary assets and solutions that help organizations transform faster and become more resilient. Underpinned by technology, data, analytics, AI, change management, talent, learning and sustainability capabilities, our Strategy & Consulting services help architect and accelerate all aspects of an organization’s reinvention.
Accenture’s equitable rewards go beyond financial rewards and include health and well-being programs that care for our people. Table of Contents ACCENTURE 2023 FORM 10-K Item 1. Business 10 The Way We Do Business At Accenture, our people care deeply about doing the right thing.
Accenture’s equitable rewards go beyond financial rewards and include health and well-being programs that care for our people. Table of Contents ACCENTURE 2024 FORM 10-K Item 1. Business 11 The Way We Do Business At Accenture, our people care deeply about doing the right thing.
Our nature-based carbon removal projects will also support and respect the universal principles of the UNGC in the relevant areas of human rights, labor, environment, anticorruption and the UN Sustainable Development Goals (SDGs). Table of Contents ACCENTURE 2023 FORM 10-K Item 1. Business 12 Moving Toward Zero Waste • Addressing e-waste and office furniture.
Our Table of Contents ACCENTURE 2024 FORM 10-K Item 1. Business 13 nature-based carbon removal projects will also support and respect the universal principles of the UNGC in the relevant areas of human rights, labor, environment, anticorruption and the UN Sustainable Development Goals (SDGs). Moving Toward Zero Waste • Addressing e-waste and office furniture.
Our strong ecosystem relationships provide a significant competitive advantage, and we are a key partner of a broad range of technology providers, including Adobe, Alibaba, Amazon Web Services, Blue Yonder, Cisco, Databricks, Dell, Google, HPE, IBM RedHat, Microsoft, Oracle, Pegasystems, Salesforce, SAP, ServiceNow, Snowflake, VMware, Workday and many others.
Our strong ecosystem relationships provide a significant competitive advantage, and we are a key partner of a broad range of technology providers, including Adobe, Alibaba, Amazon Web Services, Blue Yonder, Cisco, Databricks, Dell, Google, HPE, IBM RedHat, Microsoft, NVIDIA, Oracle, Palo Alto Networks, Pegasystems, Salesforce, SAP, ServiceNow, Snowflake, VMware, Workday and many others.
Our competitors include large multinational IT service providers, including the services arms of large global technology providers; off-shore IT service providers in lower-cost locations, particularly in India; accounting firms and consultancies that provide consulting and other IT services and solutions; solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups; and in-house IT departments of large corporations that use their own resources rather than engage an outside firm.
Our competitors include large multinational IT service providers, including the services arms of large global technology providers; off-shore IT service providers in lower-cost locations, particularly in India; accounting firms and consultancies that provide consulting, managed services and other IT services and solutions; solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups; and in-house IT departments of large corporations that use their own resources rather than engage an outside firm, such as global capability centers ( “GCC’s”).
We use our investment in R&D—on which we spent $1.3 billion, $1.1 billion and $1.1 billion in fiscal 2023, 2022 and 2021, respectively—to help clients address new realities in the marketplace and to face the future with confidence.
We use our investment in R&D—on which we spent $1.2 billion, $1.3 billion and $1.1 billion in fiscal 2024, 2023 and 2022, respectively—to help clients address new realities in the marketplace and to face the future with confidence.
Unruch has been with Accenture for 12 years. John Walsh , 59, became our chief operating officer in September 2023. From March 2020 to September 2023, Mr. Walsh served as our chief strategic accounts and global sales officer. From November 2019 to March 2020, he served as our group chief executive—Communications, Media & Technology.
Unruch has been with Accenture for 13 years. John Walsh, 60, became our chief operating officer in September 2023. From March 2020 to September 2023, Mr. Walsh served as our chief strategic accounts and global sales officer. From November 2019 to March 2020, he served as our group chief executive—Communications, Media & Technology.
“Accenture Leadership” is comprised of members of our global management committee (our primary management and leadership team, which consists of approximately 50 of our most senior leaders), senior managing directors and managing directors. Table of Contents ACCENTURE 2023 FORM 10-K Item 1A. Risk Factors 16 Item 1A.
“Accenture Leadership” is comprised of members of our global management committee (our primary management and leadership team, which consists of approximately 50 of our most senior leaders), senior managing directors and managing directors. Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 18 Item 1A.
We are now 48% Women compared to our goal of 50% by 2025 We are now 29% Women managing directors compared to our goal of 30% by 2025 The Way We Develop and Reward Our People Our focus is to create talent and unlock the potential of our people, to create strong leaders, and to help them achieve their professional and personal aspirations, while continuously pivoting to meet new client demands.
We are now 30% Women managing directors in line with our goal of 30% by 2025. The Way We Develop and Reward Our People Our focus is to create talent and unlock the potential of our people, to create strong leaders, and to help them achieve their professional and personal aspirations, while continuously pivoting to meet new client demands.
Business 8 People Overview We are a talent- and innovation-led organization with approximately 733,000 people as of August 31, 2023, whose skills and specialization are a significant source of competitive differentiation. We serve clients at any given time in more than 120 countries, with offices and operations in 49 countries.
Business 9 People Overview We are a talent- and innovation-led organization with approximately 774,000 people as of August 31, 2024, whose skills and specialization are a significant source of competitive differentiation. We serve clients at any given time in more than 120 countries, with offices and operations in 52 countries.
As of our last review which reflected annual pay changes effective December 1, 2022, we have dollar-for-dollar, 100% pay equity for women compared to men in every country where we operate (certain subsidiaries, including recent acquisitions, and countries with de minimis headcount were excluded from the analysis).
We conduct an annual pay equity review. As of our last review, which reflected pay changes effective December 1, 2023, we had dollar-for-dollar, 100% pay equity for women compared to men in every country where we operate (certain subsidiaries, recent acquisitions, countries with de minimis headcount and temporary employees were excluded from the analysis).
Additionally, Hispanic American and Latinx colleagues represent 11% of our workforce, compared to our goal of 13%. • In the U.K., Black colleagues represent 5% of our workforce compared to our goal of 7%. • In South Africa, African Black colleagues represent 45% of our workforce compared to our goal of 68%.
Additionally, Hispanic American and Latinx colleagues represent 10% of our workforce, compared to our goal of 13%. • In the U.K., Black colleagues represent 6% of our workforce compared to our goal of 7%. • In South Africa, African Black colleagues represent 47% of our workforce compared to our goal of 68%.
Business 7 Products FY23 Revenues of $19.1B Percent of Group’s FY23 Revenue 48% 33% 19% Consumer Goods, Retail & Travel Services Industrial Life Sciences Food and beverage, household goods, personal care, tobacco, fashion/apparel, agribusiness and consumer health companies; supermarkets, hardline retailers, mass-merchandise discounters, department, quickserve and convenience stores and specialty retailers; aviation; and hospitality and travel services companies Industrial & electrical equipment manufacturers and industrial suppliers; and construction, heavy equipment, consumer durables, engineering services, real estate, freight & logistics, aerospace & defense and automotive and public transportation companies Biopharmaceutical, medical technology, and biotechnology companies and distributors Resources FY23 Revenues of $8.9B Percent of Group’s FY23 Revenue 31% 24% 45% Chemicals & Natural Resources Energy Utilities Petrochemicals, specialty chemicals, polymers and plastics, gases and agricultural chemicals companies, as well as the metals, mining, forest products and building materials industries Companies in the oil and gas industry, including upstream, midstream, downstream, oilfield services, clean energy and energy trading companies Power generators and developers, electric and gas transmission and distribution operators, energy and energy service retailers; water, waste and recycling service providers Table of Contents ACCENTURE 2023 FORM 10-K Item 1.
Products FY24 Revenues of $19.6B Percent of Group’s FY24 Revenue 46% 34% 20% Consumer Goods, Retail & Travel Services Industrial Life Sciences Food and beverage, household goods, personal care, tobacco, fashion/apparel, agribusiness and consumer health companies; supermarkets, hardline retailers, mass-merchandise discounters, department, quickserve and convenience stores and specialty retailers; aviation; and hospitality and travel services companies Industrial & electrical equipment manufacturers and industrial suppliers; and construction, heavy equipment, consumer durables, engineering services, real estate, freight & logistics, aerospace & defense, automotive & mobility and public transportation companies Biopharmaceutical, medical technology and distributors Resources FY24 Revenues of $9.1B Percent of Group’s FY24 Revenue 29% 25% 46% Chemicals & Natural Resources Energy Utilities Petrochemicals, specialty chemicals, polymers and plastics, gases and agricultural chemicals companies, as well as the metals, mining, forest products and building materials industries Oil and gas industries, including upstream, midstream, downstream, oilfield services, clean energy and energy trading companies Power generators and developers, including nuclear, renewables and other conventional generators; electric and gas transmission and distribution operators, energy and energy service retailers; water, waste and recycling service providers Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
Global Delivery Capability A key differentiator is our global delivery capability. We have one of the world’s largest networks of centers with deep capabilities in Strategy & Consulting, Technology, Operations, Industry X and Song, that allows us to help our clients create exceptional business value.
Table of Contents ACCENTURE 2024 FORM 10-K Item 1. Business 14 Global Delivery Capability A key differentiator is our global delivery capability. We have one of the world’s largest networks of centers with deep capabilities in Strategy & Consulting, Technology, Operations, Industry X and Song, that allows us to help our clients create exceptional business value.
By race and ethnicity, we likewise had dollar-for-dollar, 100% pay equity in the U.S., the U.K. and South Africa, which are the locations where we currently have the data available to use for this purpose.
By race and ethnicity, we likewise had dollar-for-dollar, 100% pay equity in the U.S., the U.K. and South Africa, which are the locations where we currently have the data available to use for this purpose. We are 48% Women compared to our goal of 50% by 2025.
Planning for Water Risk • Mitigating the potential impacts of climate change-related water risk. Although Accenture is not a water-intensive company, to safeguard our people and operations we are developing water resiliency action plans to reduce the impact of climate-related flooding, drought and water scarcity on our business and our people in high-risk areas.
Although Accenture is not a water-intensive company, to safeguard our people and operations we are developing water resiliency action plans to reduce the impact of climate-related flooding, drought and water scarcity on our business and our people in high-risk areas. We have completed plans for approximately 90% of our facilities in high-risk areas.
We continue to refine our processes, leverage our asset tracking system and work with vendors to help us extend the life cycle of our furniture, including through refurbishment and reuse or recycling. • Eliminate single-use plastics in our office locations. During fiscal 2023, we eliminated single-use plastics in our office locations by purchasing reusable and plastic-free items.
We continue to refine our processes, leverage our asset tracking system and work with vendors to help us extend the life cycle of our furniture, including through refurbishment and reuse or recycling. • Eliminate single-use plastics in our office locations.
Examples of areas of significant change include digital-, cloud- and security-related offerings, which are continually evolving, as well as developments in areas such as AI, including generative AI, augmented and virtual reality, automation, blockchain, Internet of Things, quantum and edge computing, infrastructure and network engineering, intelligent connected products, digital engineering and manufacturing, and robotics solutions.
Examples of areas of significant change include digital-, cloud- and security-related offerings, which are continually evolving, as well as developments in areas such as AI, including generative AI, augmented and virtual reality, automation, blockchain, Internet of Things, quantum and edge computing, infrastructure and network engineering, intelligent connected products, digital Table of Contents ACCENTURE 2024 FORM 10-K Item 1A.
Key suppliers are defined as vendors that represent a significant portion of our 2019 Scope 3 emissions. Carbon Removal • Nature-based carbon removal. To offset our remaining emissions, we are investing in nature-based carbon removal solutions to remove carbon from the atmosphere.
Key suppliers are defined as vendors that represent a significant portion of our 2019 Scope 3 emissions. Carbon Removal • Nature-based carbon removal. To address our remaining emissions, we are investing in nature-based carbon removal projects to remove carbon from the atmosphere. We plan to begin applying carbon removal credits in fiscal 2025.
Manish Sharma , 55, became our chief executive officer—North America in September 2023. Prior to that, Mr. Sharma served as our chief operating officer from March 2022 to September 2023. From March 2020 to March 2022, Mr. Sharma served as our group chief executive—Operations. From September 2016 to March 2020, Mr. Sharma served as the group operating officer for Operations.
Business 17 Manish Sharma, 56, became our chief executive officer—North America in September 2023 and our chief executive officer—the Americas in September 2024. Prior to that, Mr. Sharma served as our chief operating officer from March 2022 to September 2023. From March 2020 to March 2022, Mr. Sharma served as our group chief executive—Operations.
Accenture’s commitment to and focus on our people and culture has generated significant recognition, including No. 1 on the Refinitiv Global Diversity & Inclusion Index for the fourth time in six years; Ethisphere’s World’s Most Ethical Companies for 16 consecutive years; and being ranked No. 17 among 25 companies on World's Best Workplaces™ by Fortune and Great Place to Work ® .
Accenture’s commitment to and focus on our people and culture has generated significant recognition, including No. 1 on the FTSE (formerly Refinitiv) Diversity and Inclusion Index for the fifth time in seven years; Ethisphere’s World’s Most Ethical Companies for 17 consecutive years; and ranking No. 10 among 25 companies on Great Place To Work ® World's Best Workplaces™.
Coloured colleagues represent 10% of our workforce, in line with our goal. We are committed to pay equity and pay equity at Accenture means that our people receive pay that is fair and consistent when considering similarity of work, location and tenure at career level. We conduct an annual pay equity review.
Coloured colleagues represent 10% of our workforce, in line with our goal. We are committed to pay equity and have processes in place to compensate our people fairly—across gender, race and ethnicity. Pay equity at Accenture means that our people receive pay that is fair and consistent when considering similarity of work, location and tenure at career level.
Prior to assuming that role, she served as our head of investor relations from September 2010 to November 2016, and from March 2002 to August 2010, she served as our finance director—Health & Public Service. Ms. McClure has been with Accenture for 35 years. Jean-Marc Ollagnier , 61, became our chief executive officer—Europe in March 2020.
Prior to assuming that role, she served as our head of investor relations from September 2010 to November 2016, and from March 2002 to August 2010, she served as our finance director—Health & Public Service. Ms. McClure has been with Accenture for 36 years.
From January 2009 to September 2016, Mr. Sharma was our senior managing director for Accenture Operations Global Delivery and Solution Development and global sales lead for Accenture Operations Business Process Outsourcing (BPO). Previously, he led our BPO operations in the Asia Pacific region. Mr. Sharma has been with Accenture for 28 years. Ellyn J.
From September 2016 to March 2020, Mr. Sharma served as the group operating officer for Operations. From January 2009 to September 2016, Mr. Sharma was our senior managing director for Accenture Operations Global Delivery and Solution Development and global sales lead for Accenture Operations Business Process Outsourcing (BPO). Previously, he led our BPO operations in the Asia Pacific region. Mr.
Joel Unruch , 45, became our general counsel in September 2019 and has served as our corporate secretary since June 2015. Mr. Unruch also served as our chief compliance officer from September 2019 to January 2020. Mr.
Sweet has been with Accenture for 14 years and has served as a director since September 2019. Joel Unruch, 46, became our general counsel in September 2019 and has served as our corporate secretary since June 2015. Mr. Unruch also served as our chief compliance officer from September 2019 to January 2020. Mr.
Our research and thought leadership teams help identify market, technology and industry trends. Accenture Ventures partners with and invests in growth-stage companies that create innovative enterprise technologies. Accenture Labs incubate and prototype new concepts through applied research and development projects.
Our research and thought leadership teams help identify market, technology and industry trends. Accenture Ventures partners with and invests in growth-stage companies that create innovative enterprise technologies. Accenture Labs incubate and prototype new concepts through applied research and development projects. Within this, we incubate and apply emerging technology innovation to business architectures, including blockchain, metaverse, extended reality and quantum.
Business 9 We are now 48% women, compared to our gender parity goal by 2025. And, we are currently 29% women managing directors, compared to our goal of 30% by 2025.
Business 10 We are 48% women, compared to our gender parity goal by 2025. And, we are currently 30% women managing directors, in line with our 2025 goal.
As we expand our services and solutions into these new areas, we may be exposed to operational, legal, regulatory, ethical, technological and other risks specific to such new areas, which may negatively affect our reputation and demand for our services and solutions. Table of Contents ACCENTURE 2023 FORM 10-K
Risk Factors 19 engineering and manufacturing, and robotics solutions. As we expand our services and solutions into these new areas, we may be exposed to operational, legal, regulatory, ethical, technological and other risks specific to such new areas, which may negatively affect our reputation and demand for our services and solutions.
We compete with a variety of organizations that offer services and solutions competitive with those we offer—but we believe no other company offers the full range of services at scale that Accenture does, which uniquely positions us in a highly competitive market. Our clients typically retain us on a non-exclusive basis.
Business 15 Competition Accenture operates in a highly competitive and rapidly changing global marketplace. We compete with a variety of organizations that offer services and solutions competitive with those we offer—but we believe no other company offers the full range of services at scale that Accenture does, which uniquely positions us in a highly competitive market.
Our goal is that 90% of our key suppliers disclose their environmental targets and the actions being taken to reduce emissions by the end of 2025. Our suppliers are making good progress, with 68% of key suppliers disclosing their targets and 75% disclosing the actions they are taking as of December 2022.
Our goal is that 90% of our key suppliers disclose their environmental targets and the actions being taken to reduce emissions by the end of 2025. We are on track to meet this goal, with 89% of key suppliers disclosing their targets and 96% disclosing the actions they are taking to reduce their emissions.
In 2020, we signed the UN Global Compact Business Ambition for 1.5°C Pledge, joining leading companies in pledging to do our part to keep global warming below 1.5° Celsius, in alignment with the Paris Agreement and the criteria and recommendations of the Science Based Targets initiative (SBTi).
We are a signatory to the UN Global Compact Business Ambition for 1.5°C Pledge, committing to do our part to keep global warming below 1.5° Celsius in alignment with the Paris Agreement and the criteria and recommendations of the Science Based Targets initiative (SBTi). In 2018, we established a SBTi 2025 near-term emissions reduction target, which we have surpassed.
Business 15 Julie Sweet , 56, became chair of our Board of Directors in September 2021 and has served as our chief executive officer since September 2019. From June 2015 to September 2019, she served as our chief executive officer—North America. From March 2010 to June 2015, she served as our general counsel, secretary and chief compliance officer.
Sharma has been with Accenture for 29 years. Julie Sweet, 57, became chair of our Board of Directors in September 2021 and has served as our chief executive officer since September 2019. From June 2015 to September 2019, she served as our chief executive officer—North America.
Prior to joining Accenture in 2010, Ms. Sweet was a partner for 10 years in the law firm Cravath, Swaine & Moore LLP, which she joined as an associate in 1992. Ms. Sweet has been with Accenture for 13 years and has served as a director since September 2019.
From March 2010 to June 2015, she served as our general counsel, secretary and chief compliance officer. Prior to joining Accenture in 2010, Ms. Sweet was a partner for 10 years in the law firm Cravath, Swaine & Moore LLP, which she joined as an associate in 1992. Ms.
As we purchase renewable electricity, we also support the generation of more renewable sources of electricity. Achieved 100% renewable electricity by the end of 2023 • Enabling low carbon business travel.
Going forward, we plan to maintain 100% renewable electricity in our facilities. As we purchase renewable electricity, we also support the generation of more renewable sources of electricity. • Enabling low carbon business travel.
We are continuing to work toward our goal of net-zero emissions by 2025 by first focusing on reductions across our Scope 1, 2, and 3 emissions and then removing any remaining emissions through nature-based carbon removal projects. We are also establishing new goals to align with the SBTi’s criteria, guidance and recommendations for setting science-based net-zero targets.
We continue to work toward our 2025 carbon removal goal by first focusing on reductions across our Scope 1, 2, and 3 emissions and then removing any remaining emissions through nature-based carbon removal projects.
During fiscal 2023, we invested $1.1 billion in continuous learning and development. With our digital learning platform, we delivered approximately 40 million training hours, consistent with fiscal 2022. We have skills data for our people, enabling us to flexibly respond to shifting client needs while also recommending skill-specific training based on an individual’s interests.
We have skills data for our people, enabling us to flexibly respond to shifting client needs while also recommending skill-specific training based on an individual’s interests. We upskill people at scale, while proactively defining new skills and roles in anticipation of client needs.
During the second quarter of fiscal 2023, we initiated actions to streamline operations and transform our nonbillable corporate functions to reduce costs. Accenture’s total rewards consist of cash compensation, equity and a wide range of benefits. Our total rewards program is designed to recognize our people’s skills, contributions and career progression.
For the fourth quarter of fiscal 2024, annualized attrition, excluding involuntary terminations, was 14%, consistent with the third quarter of fiscal 2024. Accenture’s total rewards consist of cash compensation, equity and a wide range of benefits. Our total rewards program is designed to recognize our people’s skills, contributions and career progression.
Trademarks appearing in this report are the trademarks or registered trademarks of Accenture Global Services Limited, Accenture Global Solutions Limited, or third parties, as applicable. Table of Contents ACCENTURE 2023 FORM 10-K Item 1. Business 13 Competition Accenture operates in a highly competitive and rapidly changing global marketplace.
To protect Accenture’s brands, we rely on intellectual property laws and trademark registrations held around the world. Trademarks appearing in this report are the trademarks or registered trademarks of Accenture Global Services Limited, Accenture Global Solutions Limited, or third parties, as applicable. Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
As we do not own our office buildings and procure most of our energy from the grid, we increase our renewable electricity by purchasing renewable electricity contracts equivalent to the amount of electricity we consume. Going forward, we plan to maintain 100% renewable electricity on an annual basis through continued purchase of renewable electricity contracts.
In 2023, we achieved our goal of 100% renewable electricity in our facilities and we maintained this in fiscal 2024. As we do not own our facilities and procure most of our energy from the grid, we purchase renewable electricity contracts equivalent to the amount of electricity we consume.
We also train our people on inclusion and mitigating unconscious bias. We promoted approximately 123,000 people in fiscal 2023, demonstrating our continued commitment to creating vibrant careers and opportunities for our people. We balance our supply of skills with changes in client demand. We do this through adjusting levels of new hiring and managing our attrition (both voluntary and involuntary).
We balance our supply of skills with changes in client demand. We do this through adjusting levels of new hiring and managing our attrition (both voluntary and involuntary). We believe people are drawn to our strong purpose, values and reputation. For fiscal 2024, attrition, excluding involuntary terminations, was 13%, consistent with fiscal 2023.
Burgum served as our assistant corporate controller from December 2016 to September 2021 and as controller for Accenture Federal Services from May 2013 to December 2016. Prior to joining Accenture, Ms. Burgum held controllership roles at two public companies and was previously an auditor and consultant for Arthur Andersen. Ms. Burgum has been with Accenture for 10 years.
Beatty has been with Accenture for 9 years. Melissa Burgum, 52, became our chief accounting officer in September 2022 and has served as our corporate controller since September 2021. Prior to that, Ms. Burgum served as our assistant corporate controller from December 2016 to September 2021 and as controller for Accenture Federal Services from May 2013 to December 2016.
Table of Contents ACCENTURE 2023 FORM 10-K Item 1. Business 14 Information About Our Executive Officers Our executive officers as of October 12, 2023 are as follows: Melissa Burgum , 51, became our chief accounting officer in September 2022 and has served as our corporate controller since September 2021. Prior to that, Ms.
Table of Contents ACCENTURE 2024 FORM 10-K Item 1. Business 16 Information About Our Executive Officers Our executive officers as of October 10, 2024 are as follows: Angela Beatty, 53, became our chief leadership and human resources officer in September 2024. From April 2022 to September 2024, Ms. Beatty was our global lead for talent, rewards and employee experience.
We have a strong commitment to environmental sustainability in how we operate our business, and we hold ourselves accountable to clear and measurable objectives. Our environment goals span three areas: reducing our carbon emissions including through nature-based carbon removal programs, moving toward zero waste and planning for water risk.
We have a strong commitment to environmental sustainability in how we operate our business, and we hold ourselves accountable to clear and measurable objectives. For example, in 2020, we established a 2025 carbon removal goal—previously referred to as our 2025 net-zero emissions goal—and we are on track to achieve this goal.
From March 2011 to March 2020, Mr. Ollagnier served as our group chief executive—Resources. From September 2006 to March 2011, Mr. Ollagnier led Resources in Europe, Latin America, the Middle East and Africa. Previously, he served as our global managing director—Financial Services Solutions group and as our geographic unit managing director—Gallia. Mr. Ollagnier has been with Accenture for 37 years.
Previously, he served as our Financial Services lead for Europe from November 2019 to March 2020, Financial Services lead for Italy, Central Europe and Greece from October 2017 to October 2019 and global Banking industry lead for Strategy from March 2015 to September 2017. Mr. Macchi has been with Accenture for 34 years.
We upskill people at scale, while proactively defining new skills and roles in anticipation of client needs. We expect to double our Data & AI Practice to 80,000 people through hiring, training and acquisitions over the next three years. We are focused on rigorous, job-specific training through key industry certifications and partnerships with leading universities around the globe.
We are focused on rigorous, job-specific training through key industry certifications and partnerships with leading universities around the globe. We also train our people on inclusion and mitigating unconscious bias. We promoted approximately 97,000 people in fiscal 2024, demonstrating our continued commitment to creating vibrant careers and opportunities for our people.
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And in doing so, we help them create new, hyper-personalized experiences and intelligent products and services. Song We strive to accelerate growth and value for our clients across industries through sustained customer relevance with emerging channels, technologies, including generative AI, and models tied to the ever-changing needs and preferences of business-to-business and business-to-consumer customers.
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And in doing so, we help them create new, hyper-personalized experiences and intelligent products and services. Song We help our clients create new, hyper-personalized experiences and services that are intelligently designed to foster loyalty and drive growth by making customer interactions more compelling, useful, and simple from initial interaction through ongoing customer service.
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Our capabilities span ideation to execution: growth, product and experience design; technology and experience platforms; creative, media and marketing strategy; and campaign, content and channel orchestration. With strong client relationships and deep industry expertise, we help our clients operate at speed through the potential of imagination, technology and intelligence. Table of Contents ACCENTURE 2023 FORM 10-K Item 1.
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Our suite of services spans design, digital products, marketing, commerce, and customer service. We create products and experiences that resonate deeply with users across multiple channels. We help brands amplify their value, by making their propositions clear and inspiring to stand out in a crowded marketplace. Our commerce strategies are designed to enhance sales effectiveness and create seamless buying experiences.
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Table of Contents ACCENTURE 2023 FORM 10-K Item 1.
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Our customer service innovations help make support more responsive and accessible. We bring cross industry expertise, underpinning these services with Table of Contents ACCENTURE 2024 FORM 10-K Item 1. Business 6 technology. We leverage the combined power of strategy, data and AI (including generative AI), ecosystem partnerships, and our ability to scale and manage programs on behalf of our clients.
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One of our surveys, which was conducted in November 2022 and measures how our people experience our culture, shows that 91% of our global respondents believe they can work to their potential because they are in an environment where they are treated with respect and in an appropriate manner.
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By doing so, we enhance our creative processes, solve client challenges more effectively, and provide solutions that are designed to be advanced, ethically sound and sustainable to help our clients reinvent how they engage with their customers. Table of Contents ACCENTURE 2024 FORM 10-K Item 1.
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We believe people are drawn to our strong purpose, values and reputation. For fiscal 2023, attrition, excluding involuntary terminations, was 13%, down from 19% in fiscal 2022. For the fourth quarter of fiscal 2023, annualized attrition, excluding involuntary terminations, was 14%, up from 13% in the third quarter of fiscal 2023.
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Business 8 Our work with clients in the U.S. federal government is delivered through Accenture Federal Services, a U.S. company and a wholly owned subsidiary of Accenture LLP, and represented approximately 37% of our Health & Public Service industry group’s revenues and 17% of our North America revenues in fiscal 2024.
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Accenture is recognized as a top 10 place to work in eight countries, representing 70% of our people: No. 1 in Argentina, No. 2 in Mexico and the Philippines, No. 5 in Brazil, Indonesia and the U.S., and No. 10 in Chile on the Great Place to Work ® list of Best Workplaces™, and No. 2 on Business Today's Best Companies to Work For in India.
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Among our people who participated in the Great Place To Work ® Trust Index Survey™, 78% agreed that “Taking everything into account, I would say this is a great place to work.” Additionally, we are recognized as a top 10 place to work in 11 countries, representing more than 70% of our people.
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Reducing our Carbon Emissions The most significant aspects of our environmental footprint are the greenhouse gas emissions related to electricity used in our locations, as well as business travel and purchased goods and services.
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During fiscal 2024, we invested $1.1 billion in learning and professional development. With our digital learning platform, we delivered approximately 44 million training hours, an increase of 10% compared with fiscal 2023, predominantly due to generative AI training.
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In 2023, we set a new, near-term target aligned to 2030, which was approved by the SBTi. Carbon Reduction Our approach to carbon reduction in support of our goals includes: • Renewable electricity. In 2023, we achieved our goal of 100% renewable electricity in our offices.
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We also continue to steadily increase our Data & AI workforce, reaching approximately 57,000 skilled Data & AI practitioners at the end of fiscal 2024, against our goal of doubling our Data & AI workforce to 80,000 by the end of fiscal 2026.
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Within this, the Technology Incubation Group incubates and applies emerging technology innovation to business architectures, including blockchain, metaverse, extended reality and quantum. To protect Accenture’s brands, we rely on intellectual property laws and trademark registrations held around the world.
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Our environment goals discussed below span three areas: reducing and removing our carbon emissions, moving toward zero waste and planning for water risk. Our Goals to Reduce and Remove our Carbon Emissions Our greenhouse gas (GHG) emissions primarily result from business travel and purchased goods and services, since we have 100% renewable electricity in our facilities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeMoreover, as we expand our services and solutions into new areas, we may be exposed to additional and evolving risks specific to these new areas. In addition, we engage in platform trust and safety services on behalf of clients, including content moderation, which could have a negative impact on our employees due to the nature of the materials they review.
Biggest changeItem 1A. Risk Factors 29 In addition, we engage in platform trust and safety services on behalf of clients, including content moderation, which could have a negative impact on our employees due to the nature of the materials they review.
Changes in government or political developments, including government closures or shutdowns, budget deficits, shortfalls or uncertainties, government spending reductions or other debt constraints could result in our projects being reduced in price or scope or terminated altogether, which also could limit our recovery of incurred costs, reimbursable expenses and profits on work completed prior to the termination.
Elections, changes in government or political developments, including government closures or shutdowns, budget deficits, shortfalls or uncertainties, government spending reductions or other debt constraints could result in our projects being reduced in price or scope or terminated altogether, which also could limit our recovery of incurred costs, reimbursable expenses and profits on work completed prior to the termination.
In addition, we cannot be sure that our services and solutions, including, for example, our software and hardware solutions, or the solutions of others that we offer to our clients, do not infringe on the intellectual property rights of third parties (including competitors as well as non-practicing holders of intellectual property assets), and these third parties could claim that we or our clients are infringing upon their intellectual property rights.
In addition, we cannot be sure that our services and solutions, including, for example, our AI, software and hardware solutions, or the solutions of others that we offer to our clients, do not infringe on the intellectual property rights of third parties (including competitors as well as non-practicing holders of intellectual property assets), and these third parties could claim that we or our clients are infringing upon their intellectual property rights.
Our inability to replace such software, hardware or intellectual property effectively or in a timely and cost-effective manner could materially adversely affect our results of operations. We are incorporated in Ireland and Irish law differs from the laws in effect in the United States and might afford less protection to our shareholders.
Our inability to replace such software, hardware, data or intellectual property effectively or in a timely and cost-effective manner could materially adversely affect our results of operations. We are incorporated in Ireland and Irish law differs from the laws in effect in the United States and might afford less protection to our shareholders.
If we lose our ability to continue using any such software, hardware or intellectual property for any reason, including because it is found to infringe the rights of others, we will need to obtain substitutes or seek alternative means of obtaining the technology necessary to continue to provide such services and solutions.
If we lose our ability to continue using any such software, hardware, data or intellectual property for any reason, including because it is found to infringe the rights of others, we will need to obtain substitutes or seek alternative means of obtaining the technology necessary to continue to provide such services and solutions.
The global nature of our operations, including emerging markets where legal systems may be less developed or understood by us, and the diverse nature of our operations across a number of regulated industries, further increase the difficulty of compliance. Compliance with diverse legal requirements is costly, time-consuming and requires significant resources.
The global nature of our operations and supply chains, including emerging markets where legal systems may be less developed or understood by us, and the diverse nature of our operations across a number of regulated industries, further increase the difficulty of compliance. Compliance with diverse legal requirements is costly, time-consuming and requires significant resources.
Further, we rely on third-party software, hardware and other intellectual property in providing some of our services and solutions.
Further, we rely on third-party software, hardware, data and other intellectual property in providing some of our services and solutions.
For example, as a result of the sanctions imposed in response to the invasion of Ukraine by Russia, we were restricted from offering certain of our services to clients in some locations.
For example, as a result of the sanctions imposed in response to the invasion of Ukraine by Russia, we are restricted from offering certain of our services to clients in some locations.
We are subject to numerous, changing, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, including ESG regulation and reporting requirements, anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and labor relations, product liability, health and safety, environmental, human rights and AI regulations.
We are subject to numerous, changing, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, including ESG regulation and reporting requirements, anti-competition, anti-money-laundering, data privacy and protection, government compliance, wage-and-hour standards, employment and labor relations, product liability, health and safety, environmental, human rights and AI regulations, such as the European Union’s AI Act.
The risk of infringement claims against us may increase as we expand our industry software and hardware solutions and continue to develop and license our software and sell our hardware to multiple clients. Any infringement action brought against us or our clients could be costly to defend or lead to an expensive settlement or judgment against us.
The risk of infringement claims against us may increase as we expand our industry AI, software and hardware solutions and continue to develop and deploy our AI, software and hardware solutions to multiple clients. Any infringement action brought against us or our clients could be costly to defend or lead to an expensive settlement or judgment against us.
Risk Factors 29 contracts, we agree to indemnify our clients for expenses and liabilities resulting from claimed infringements of the intellectual property rights of third parties. In some instances, the amount of these indemnities could be greater than the revenues we receive from the client.
In most of our contracts, we agree to indemnify our clients for expenses and liabilities resulting from claimed infringements of the intellectual property rights of third parties. In some instances, the amount of these indemnities could be greater than the revenues we receive from the client.
Examples of such risks include: (1) the availability and cost of low- or non-carbon-based energy sources and technologies; (2) evolving regulatory requirements affecting ESG standards or disclosures; (3) the availability of suppliers that can meet our sustainability, diversity and other standards; and (4) our ability to recruit, develop, and retain diverse talent.
Examples of such risks include: (1) the availability and cost of low- or non-carbon-based energy sources and technologies and the ability of our suppliers to harness new technologies to reduce emissions; (2) evolving regulatory requirements affecting ESG standards or disclosures; (3) the availability of suppliers that can meet our sustainability, diversity and other standards; and (4) our ability to recruit, develop, and retain sufficient diverse talent.
There is uncertainty concerning the scope of patent and other intellectual property protection for software and business methods, which are fields in which we rely on intellectual property laws to protect our rights.
As a result, there is uncertainty concerning the scope of patent and other intellectual property protection for AI models, software and business methods, which are fields in which we rely on intellectual property laws to protect our rights.
These claims could harm our reputation, cause us to incur substantial costs or prevent us from offering some services or solutions in the future. Any related proceedings could require us to expend significant resources over an extended period of time. In most of our Table of Contents ACCENTURE 2023 FORM 10-K Item 1A.
These claims could harm our reputation, cause us to incur substantial costs or prevent us from offering some services or solutions in the future. Any related proceedings could require us to expend significant resources over an extended period of time.
Our clients include national, provincial, state and local governmental entities. Our government work carries various risks inherent in the government contracting process.
Our work with government clients exposes us to additional risks inherent in the government contracting environment. Our clients include national, provincial, state and local governmental entities. Our government work carries various risks inherent in the government contracting process.
Negative publicity, including an allegation of improper or illegal activity, regardless of its accuracy, may adversely affect our reputation. Table of Contents ACCENTURE 2023 FORM 10-K Item 1A. Risk Factors 28 • Terms and conditions of government contracts also tend to be more onerous and are often more difficult to negotiate.
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.
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.
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 Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 31 projects for lack of approved funding and/or at their convenience.
Any claims or litigation in this area could be time-consuming and costly, damage our reputation and/or require us to incur additional costs to obtain the right to continue to offer a service or solution to our clients.
Any claims or litigation in this area could be time-consuming and costly, damage our Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 32 reputation and/or require us to incur additional costs to obtain the right to continue to offer a service or solution to our clients.
Risk Factors 27 regulatory requirements requiring climate, human rights and supply chain-related disclosures. If new laws or regulations are more stringent than current legal or regulatory requirements, we may experience increased compliance burdens and costs to meet such obligations.
If new laws or regulations are more stringent than current legal or regulatory requirements, we may experience increased compliance burdens and costs to meet such obligations.
In addition, our selection of voluntary disclosure frameworks and standards, and the interpretation or application of those frameworks and standards, may change from time to time or may not meet the expectations of investors or other stakeholders. Our ability to achieve our ESG commitments is subject to numerous risks, many of which are outside of our control.
In addition, our selection of voluntary disclosure frameworks and standards, and the interpretation or application of those frameworks and standards, may change from time to time or may not meet the expectations of investors or other stakeholders.
In addition, standards for tracking and reporting on ESG matters, including climate change and human rights related matters, have not been harmonized and continue to evolve.
In addition, standards for tracking and reporting on ESG Table of Contents ACCENTURE 2024 FORM 10-K Item 1A. Risk Factors 30 matters, including climate change and human rights related matters, have not been harmonized and continue to evolve.
Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and regulatory requirements designed to mitigate the effects of climate change on the environment, as well as legal and Table of Contents ACCENTURE 2023 FORM 10-K Item 1A.
Increasing focus on ESG matters has resulted in, and is expected to continue to result in, the adoption of legal and regulatory requirements designed to mitigate the effects of climate change on the environment, as well as legal and regulatory requirements requiring climate, human rights and supply chain-related disclosures.
Reported matters may also lead to audits or investigations and other civil, criminal or administrative sanctions, including those described above. • Government contracts are subject to heightened reputational and contractual risks compared to contracts with commercial clients. For example, government contracts and the proceedings surrounding them are often subject to more extensive scrutiny and publicity.
This matter could subject to us to adverse consequences, including those described in this risk factor. • 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.
Nonetheless, we could be subject to criticism in connection with our incorporation in Ireland. Table of Contents ACCENTURE 2023 FORM 10-K Item 1B. Unresolved Staff Comments 30 Item 1B. Unresolved Staff Comments None. Item 1C. Cybersecurity Not Applicable.
Nonetheless, we could be subject to criticism in connection with our incorporation in Ireland.
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Item 1A. Risk Factors 17 Technological developments may materially affect the cost and use of technology by our clients and, in the case of cloud, data and AI solutions, could affect the nature of how we generate revenue.
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Our ability to achieve our ESG commitments (such as our 2040 net-zero greenhouse gas emissions target and our 2025 gender parity goal) is subject to numerous risks, many of which are outside of our control.
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Some of these technological developments have reduced and replaced some of our historical services and solutions and will continue to do so in the future. This has caused, and may in the future cause, clients to delay spending under existing contracts and engagements and to delay entering into new contracts while they evaluate new technologies.
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Reported matters may also lead to audits or investigations and other civil, criminal or administrative sanctions, including those described above. For example, after Accenture Federal Services (“AFS”) made a voluntary disclosure to the U.S. government, the U.S.
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Such technological developments and spending delays can negatively impact our results of operations if we are unable to introduce new pricing or commercial models that reflect the value of these technological developments or if the pace and level of spending on new technologies are not sufficient to make up any shortfall.
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Department of Justice (“DOJ”) initiated a civil and criminal investigation concerning whether one or more employees provided inaccurate submissions to an assessor who was evaluating on behalf of the U.S. government an AFS service offering and whether the service offering fully implemented required federal security controls.
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Developments in the industries we serve, which may be rapid, also could shift demand to new services and solutions. If, as a result of new technologies or changes in the industries we serve, our clients demand new services and solutions, we may be less competitive in these new areas or need to make significant investment to meet that demand.
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For example, the intellectual property legal landscape relating to AI (including generative AI) is expected to continue to evolve in many countries in which we operate.
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Our growth strategy focuses on responding to these types of developments by driving innovation that will enable us to expand our business into new growth areas.
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If we do not sufficiently invest in new technology and adapt to industry developments, or evolve and expand our business at sufficient speed and scale, or if we do not make the right strategic investments to respond to these developments and successfully drive innovation, our services and solutions, our results of operations, and our ability to develop and maintain a competitive advantage and to execute on our growth strategy could be adversely affected.
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For example, if we fail to continue to develop leading AI services and solutions, including generative AI, we may lose our leadership position in this area. We are applying AI to our services, to how we deliver work to our clients, and to our own internal operations.
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AI technologies are complex and rapidly evolving, and we face significant competition, including from our own clients, who may develop their own internal AI-related capabilities, which in each case, can lead to reduced demand for our services or solutions. As these technologies evolve, some services and tasks currently performed by our people will be replaced by automation.
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In addition, there are significant risks and uncertainties involved in developing and deploying AI, which may expose us to legal, reputational and financial harm.
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In a particular geographic market, service or industry group, a small number of clients have contributed, or may, in the future contribute, a significant portion of the revenues of such geographic market, service or industry group, and any decision by such a client to delay, reduce, or eliminate spending on our services and solutions could have a disproportionate impact on the results of operations in the relevant geographic market, service or industry group.
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For example, we are experiencing reduced demand particularly in our Communications, Media & Technology industry group. Many of our consulting contracts are less than 12 months in duration, and these contracts typically permit a client to terminate the agreement with as little as 30 days’ notice.
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Longer-term, larger and more complex contracts, such as the majority of our managed services contracts, generally require a longer notice period for termination and often include an early termination charge to be paid to us, but this charge might not be sufficient to cover our costs or make up for anticipated ongoing revenues and profits lost upon termination of the contract.
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Many of our contracts allow clients to terminate, delay, reduce or eliminate spending on the services and solutions we provide. Additionally, a client could choose not to retain us for additional stages of a project, try to renegotiate the terms of its contract or cancel or delay additional planned work.
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When contracts are terminated or not renewed, we lose the anticipated revenues, and it may take significant time to replace the level of revenues lost. Consequently, our results of operations in subsequent periods could be materially lower than expected.
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The specific business or financial condition of a client, changes in management and changes in a client’s strategy are also all factors that can result in terminations, cancellations or delays.
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If we are unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, our business, the utilization rate of our professionals and our results of operations may be materially adversely affected.
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Our success is dependent, in large part, on our ability to keep our people with market-leading skills and capabilities in balance with client demand around the world and our ability to attract and retain people with the knowledge and skills to lead our business globally.
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We must hire or reskill, retain and inspire appropriate numbers of talented people with diverse skills in order to serve clients across the globe, respond quickly to rapid and ongoing changes in demand, technology, industry and the macroeconomic environment, and continuously innovate to grow our business.
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For example, if we are unable to hire or retrain our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we may not be able to innovate and deliver new services and solutions to fulfill client demand.
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There is competition for scarce talent with market-leading skills and capabilities in new technologies, and our people have been directly targeted because of their highly sought-after skills and this will likely continue.
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There is a risk that at certain points in time, we may have more people than we need in certain skill sets or geographies or at compensation levels that are not aligned with skill sets.
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In these situations, we have engaged, and may in the future engage, in actions to rebalance our workforce, including reducing the rate of new hires and increasing involuntary terminations as a means to keep our supply of people and skills in balance with client demand, such as the business optimization actions initiated in the second quarter of fiscal 2023.
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In some countries we are required by local law to consult with employee representative bodies such as works councils, which may constrain our operational flexibility and efficiency in balancing our workforce with client demand and make us less competitive. In addition, while an immaterial percentage of our global Table of Contents ACCENTURE 2023 FORM 10-K Item 1A.
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Risk Factors 18 workforce is currently unionized, the unionization of significant employee populations could result in higher costs and other operational impediments. At certain times and in certain geographical regions, we will find it difficult to hire and retain a sufficient number of employees with the skills or backgrounds to meet current and/or future demand.
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In these cases, we might need to redeploy existing people or increase our reliance on subcontractors to fill certain labor needs. If we are not successful in these initiatives, our results of operations could be adversely affected.
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If our utilization rate is too high or too low, it could have an adverse effect on employee engagement and attrition, the quality of the work performed as well as our ability to staff projects. We are particularly dependent on retaining members of Accenture Leadership with critical capabilities.
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If we are unable to do so, our ability to innovate, generate new business opportunities and effectively lead large and complex transformations and client relationships could be jeopardized. We depend on identifying, developing and retaining top talent to innovate and lead our businesses.
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This includes developing talent and leadership capabilities in markets where the depth of skilled employees may be limited. Our ability to expand in our key markets depends, in large part, on our ability to attract, develop, retain and integrate both leaders for the local business and people with critical capabilities.
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Our equity-based incentive compensation plans and other variable cash compensation programs, as well as promotions, are designed to reward high-performing individuals for their contributions and provide incentives for them to remain with us.
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If the anticipated value of such incentives or the pace of promotions does not materialize because of company performance or volatility or lack of positive performance in our stock price, or if our total compensation package is not viewed as being competitive, our ability to attract and retain the people we need could be adversely affected.
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In addition, if we do not obtain the shareholder approval needed to continue granting equity awards under our share plans in the amounts we believe are necessary, our ability to attract and retain people could be negatively affected. We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks.
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We are dependent on information technology networks and systems to securely process, transmit and store electronic information and to communicate among our locations around the world and with our people, clients, ecosystem partners and vendors.
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As the breadth and complexity of this infrastructure continues to grow, including as a result of the increasing reliance on, and use of, mobile technologies, social media and cloud-based services, as more of our employees continue to work remotely, and as cyberattacks become increasingly sophisticated (e.g. deepfakes and AI generated social engineering), the risk of security incidents and cyberattacks has increased.
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Such incidents could lead to shutdowns or disruptions of or damage to our systems and those of our clients, ecosystem partners and vendors, and unauthorized disclosure of sensitive or confidential information, including personal data and proprietary business information.
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In the past, we have experienced, and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our service providers’ systems and unauthorized acquisition of our data and our clients’ data including: inadvertent disclosure, misconfiguration of systems, phishing ransomware or malware attacks.
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In addition, our clients have experienced, and may in the future experience, breaches of systems and cloud-based services enabled, managed or provided by us.
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To date these incidents have not had a material impact on our or our clients’ operations; however, there is no assurance that such impacts will not be material in the future, and such incidents have in the past and may in the future have the impacts discussed below.
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In providing services and solutions to clients, we often manage, utilize and store sensitive or confidential client, Accenture or other third-party data, including personal data and proprietary information, and we expect these activities to increase, including through the use of AI, the Internet of Things and analytics.
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Unauthorized disclosure or use of, denial of access to, or other incidents involving sensitive or confidential client, vendor, ecosystem partner or Accenture data, whether through systems failure, employee negligence, fraud, misappropriation, or cybersecurity, ransomware or malware attacks, or other intentional or unintentional acts, could damage our reputation and our competitive positioning in the marketplace, disrupt our or our clients’ business, cause us to lose clients and result in significant financial exposure and legal liability.
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Similarly, unauthorized access to or through, denial of access to, or other incidents involving, our software and IT supply chain or software-as-a-service providers, our or our service providers’ information systems or those we develop for our clients, whether by our employees or third parties, including a cyberattack by computer programmers, hackers, members of organized crime and/or state-sponsored organizations, who continuously develop and deploy viruses, ransomware, malware or other malicious software programs or social engineering attacks, has and could in the future result in negative publicity, significant remediation costs, legal liability, damage to our reputation and government sanctions and could have a material adverse effect on our results of operations — see risk factor below entitled “Our business could be materially adversely affected if we incur legal liability.” Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols.
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Table of Contents ACCENTURE 2023 FORM 10-K Item 1A.
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Risk Factors 19 We are subject to numerous laws and regulations designed to protect this information, including privacy and cybersecurity laws such as the European Union’s General Data Protection Regulation (“GDPR”), the United Kingdom’s GDPR, U.S. states’ recent comprehensive privacy legislation, as well as various other U.S. federal and state laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws in other regions.
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These laws and regulations continue to evolve, are increasing in complexity and number and increasingly conflict among the various countries in which we operate, which has resulted in greater compliance risk and cost for us.
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Various privacy laws impose compliance obligations regarding the handling of personal data, including localization of data and the cross-border transfer of data, and significant financial penalties for noncompliance.
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For example, failure to comply with the GDPR may lead to regulatory enforcement actions, which can result in monetary penalties of up to 4% of worldwide revenue, orders to discontinue certain data processing operations, civil lawsuits, or reputational damage.
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If any person, including any of our employees, negligently disregards or intentionally breaches our established controls with respect to client, third-party or Accenture data, or otherwise mismanages or misappropriates that data, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions.
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These monetary damages might not be subject to a contractual limit of liability or an exclusion of consequential or indirect damages and could be significant. In addition, our liability insurance, which includes cyber insurance, might not be sufficient in type or amount to cover us against claims related to security incidents, cyberattacks and other related incidents.
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The markets in which we operate are highly competitive, and we might not be able to compete effectively. The markets in which we offer our services and solutions are highly competitive.
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Our competitors include: • large multinational IT service providers, including the services arms of large global technology providers; • off-shore IT service providers in lower-cost locations, particularly in India; • accounting firms and consultancies that provide consulting and other IT services and solutions; • solution or service providers that compete with us in a specific geographic market, industry or service area, including advertising agency holding companies, engineering services providers and technology start-ups and other companies that can scale rapidly to focus on or disrupt certain markets and provide new or alternative products, services or delivery models; and • in-house IT departments of large corporations that use their own resources, rather than engage an outside firm.
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Some competitors may have greater financial, marketing or other resources than we do and, therefore, may be better able to compete for new work and skilled professionals, may be able to innovate and provide new services and solutions faster than we can or may be able to anticipate the need for services and solutions before we do.
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Our competitors may also team together to create competing offerings. Even if we have potential offerings that address marketplace or client needs, competitors may be more successful at selling similar services they offer, including to companies that are our clients.
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Some competitors are more established in certain markets, and may make executing our growth strategy to expand in these markets more challenging. Additionally, competitors may also offer more aggressive pricing or contractual terms, which may affect our ability to win work.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Item 1C. Cybersecurity 30 Item 2. Properties 30 Item 3. Legal Proceedings 30 Item 4. Mine Safety Disclosures 30 Part II Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 31 Item 6. [Reserved] 32 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7A.
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Item 1C. Cybersecurity Cybersecurity Risk Management and Strategy Safeguarding data and systems is one of our most important responsibilities in building and maintaining trust, not only with our people but also with our clients and other stakeholders.
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Quantitative and Qualitative Disclosures about Market Risk 45 Item 8. Financial Statements and Supplementary Data 46
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Our cybersecurity risk management program is integrated into our overall enterprise risk management system and is supported by controls, policies and processes implemented across the enterprise and is designed to protect our network/technical infrastructure and the data of Accenture, our clients and our people.
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Our internal cybersecurity team collaborates closely with our information technology team and Accenture Security, a leading provider of end-to-end cybersecurity services, including strategy, protection, resilience and industry-specific cyber services, to continually innovate security solutions intended to address the evolving threat landscape.
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Our security framework leverages a hybrid set of internationally recognized standards, including but not limited to, ISO 27001/27701, NIST Cyber Security Framework, CSA Security Trust and Assurance Registry, and CIS Critical Security Controls. We regularly measure our security posture and resilience through risk assessments, penetration testing and external validation conducted by third-party assessors and auditors.
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Threat intelligence sources, including those provided by Accenture Security, are also used to inform our security strategy, understand the threat landscape, and enable security risk and procedures to be integrated into the business. Our key strategic security programs include secure integration of acquisitions and supplier cyber risk management.
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We utilize systems and processes designed to oversee, identify, and reduce the potential impact of cybersecurity incidents at third-party vendors, service providers or clients. Our infrastructure vulnerability scanning and configuration compliance approach includes real-time threat detection and monitoring of threats via our security information and event management and endpoint detection and response tools to respond to security incidents at speed.
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We monitor for secure configuration of servers, network devices, containers and other cloud services, evaluate risks in new programs, and regularly review and strengthen our security controls. Protecting client data is a top business priority supported by our global client data protection (CDP) program.
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A CDP plan is developed for our clients and is designed to provide end-to-end security risk management covering physical, application, infrastructure, and data security. The CDP program also arms our project teams with tools and controls that enable them to identify and mitigate security risks over the lifecycle of a client project.
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Accenture leadership reviews and monitors CDP monthly metrics, which are intended to provide oversight and accountability. All Accenture people complete annual core information security and data privacy training, delivered in multiple courses throughout the year, to stay up-to-date on security practices and threats.
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In addition, our people in internal- and client-data-sensitive roles complete specialized, targeted security training to increase knowledge about role-specific threats, concepts and practices. These interactive learning programs are focused on strengthening foundational knowledge and responding to emerging threats. Agile and flexible, our training program has garnered industry recognition for its innovative approach and effectiveness.
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In the event of a cybersecurity incident, we have robust playbooks to guide our incident procedures.
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These procedures provide a standardized framework for responding to cybersecurity incidents and include taking action to limit and contain the spread of the incident within our environment, analyzing whether and the extent to which any data may have been compromised and conducting forensic analysis to determine severity.
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We also have internal and external reporting and communication plans that address reporting findings and keeping senior management and other key stakeholders informed and involved as appropriate. Once an incident is resolved, a comprehensive post-incident review process is conducted. We describe the risks from cybersecurity threats, including previous cybersecurity incidents, in Part I, Item 1A.
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Risk Factors – “We face legal, reputational and financial risks from any failure to protect client and/or Accenture data from security incidents or cyberattacks”.
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To date these risks and incidents have not had a material impact on us, including our business strategy, results of operations, and financial condition; however, there is no assurance that such impacts will not be material in the future.
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Cybersecurity threats are constantly expanding and evolving, becoming increasingly sophisticated and complex, increasing the difficulty of detecting and defending against them and maintaining effective security measures and protocols. Cybersecurity Governance Our enterprise risk management program is an annual and ongoing process designed to identify, assess and manage Accenture’s risk exposures over the short-, intermediate- and long-term.
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Our enterprise risk management program and disclosure controls and procedures are designed to appropriately escalate key risks to the Board of Directors, as well as to analyze potential risks for disclosure. As part of our Board of Directors’ role in overseeing the Company’s enterprise risk Table of Contents ACCENTURE 2024 FORM 10-K Item 1C.
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Cybersecurity 34 management program, the Board devotes time and attention to cybersecurity and data privacy-related risks, with the Audit Committee of the Board of Directors responsible for overseeing information technology risk exposures, including cybersecurity, data privacy and data security.
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The Audit Committee receives reports on cybersecurity and data privacy matters and related risk exposures from management, including our chief information security officer (“CISO”), at least twice a year and more frequently as applicable. In addition, the Audit Committee’s quarterly enterprise risk management updates include developments regarding IT security and data protection.
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Recent topics included evolving generative AI threats, social engineering resistance and deepfake readiness. The Audit Committee regularly updates the Board on such matters and the Board also periodically receives reports from management directly. We have protocols by which cybersecurity incidents that meet established reporting thresholds are escalated within the company and, where appropriate, reported promptly to the Board.
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Our CISO leads all aspects of Accenture’s global cybersecurity program, including security operations, client data protection, cyber risk reduction strategies, incident response, cybersecurity integration of acquisitions and our industry-leading behavioral change program. Our CISO joined Accenture in 1995. Prior to being appointed CISO in 2020, he helped create Accenture’s information security capability and led the implementation of information security technology.
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Previously, he managed large technology transformations for Accenture and for clients in the United States, Japan and Australia.
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Our CISO reports to our Chief Operating Officer and is supported by a team of over 800 people with expertise in technical architecture and security operations; governance, risk and compliance; client data protection; behavioral change; and cyber incident response, many of whom hold cybersecurity certifications and possess deep technical knowledge and experience.
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Our information security team maintains an extensive governance network, including formal relationships with other organizations within Accenture through our Situation and Action Committee, which includes representatives from our Markets and Services and the legal, information technology, corporate services and sustainability, data privacy and business resilience services teams.
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In addition, our cyber incident response efforts are overseen by a cross-functional leadership team including our CISO, our General Counsel and our Chief Marketing Officer.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties We have major offices in the world’s leading business centers, including Boston, Chicago, New York, San Francisco, Dublin, Frankfurt, London, Madrid, Milan, Paris, Rome, Bangalore, Beijing, Manila, Mumbai, São Paolo, Shanghai, Singapore, Sydney and Tokyo, among others. In total, we have facilities and operations in more than 200 cities in 49 countries around the world.
Biggest changeItem 2. Properties We have major offices in the world’s leading business centers, including Boston, Chicago, New York, San Francisco, Dublin, Frankfurt, London, Madrid, Milan, Paris, Rome, Bangalore, Beijing, Manila, Mumbai, São Paolo, Shanghai, Singapore, Sydney and Tokyo, among others. In total, we have facilities and operations in more than 200 cities in 52 countries around the world.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeDividends For information about our dividend activity during fiscal 2023, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” On September 27, 2023, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.29 per share on our Class A ordinary shares for shareholders of record at the close of business on October 12, 2023, payable on November 15, 2023.
Biggest changeDividends For information about our dividend activity during fiscal 2024, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” On September 25, 2024, the Board of Directors of Accenture plc declared a quarterly cash dividend of $1.48 per share on our Class A ordinary shares for shareholders of record at the close of business on October 10, 2024, payable on November 15, 2024.
For the remainder of fiscal 2024, we expect to declare additional quarterly dividends in December 2023 and March and June 2024, to be paid in February, May and August 2024, respectively, subject to the approval of the Board of Directors.
For the remainder of fiscal 2025, we expect to declare additional quarterly dividends in December 2024 and March and June 2025, to be paid in February, May and August 2025, respectively, subject to the approval of the Board of Directors.
Item 4. Mine Safety Disclosures Not applicable. Table of Contents ACCENTURE 2023 FORM 10-K Part II 31 Part II Item 5.
Item 4. Mine Safety Disclosures Not applicable. Table of Contents ACCENTURE 2024 FORM 10-K Part II 35 Part II Item 5.
As of September 28, 2023, there were 369 holders of record of Accenture plc Class A ordinary shares. There is no trading market for Accenture plc Class X ordinary shares. As of September 28, 2023, there were 14 holders of record of Accenture plc Class X ordinary shares.
As of September 30, 2024, there were 367 holders of record of Accenture plc Class A ordinary shares. There is no trading market for Accenture plc Class X ordinary shares. As of September 30, 2024, there were 14 holders of record of Accenture plc Class X ordinary shares.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeFor year-to-date information on all of our share purchases, redemptions and exchanges and further discussion of our share purchase activity, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Share Purchases and Redemptions.” Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) (in millions of U.S. dollars) June 1, 2023 — June 30, 2023 1,188,903 $ 309.36 1,164,794 $ 3,115 July 1, 2023 — July 31, 2023 933,053 314.28 922,584 2,824 August 1, 2023 — August 31, 2023 1,081,351 313.96 1,062,460 2,490 Total (4) 3,203,307 $ 312.35 3,149,838 (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.
Biggest changeFor year-to-date information on all of our share purchases, redemptions and exchanges and further discussion of our share purchase activity, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Share Purchases and Redemptions.” Period Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) (in millions of U.S. dollars) June 1, 2024 — June 30, 2024 1,268,456 $ 291.18 1,247,913 $ 2,937 July 1, 2024 — July 31, 2024 395,110 315.91 382,304 2,815 August 1, 2024 — August 31, 2024 408,997 327.47 370,091 2,694 Total (4) 2,072,563 $ 303.05 2,000,308 (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.
The open-market purchase program does not have an expiration date. (3) As of August 31, 2023, our aggregate available authorization for share purchases and redemptions was $2,490 million, which management has the discretion to use for either our publicly announced open-market share purchase program or our other share purchase programs.
The open-market purchase program does not have an expiration date. (3) As of August 31, 2024, our aggregate available authorization for share purchases and redemptions was $2,694 million, which management has the discretion to use for either our publicly announced open-market share purchase program or our other share purchase programs.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 32 Purchases of Accenture plc Class A Ordinary Shares The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the fourth quarter of fiscal 2023.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 36 Purchases of Accenture plc Class A Ordinary Shares The following table provides information relating to our purchases of Accenture plc Class A ordinary shares during the fourth quarter of fiscal 2024.
Since August 2001 and as of August 31, 2023, the Board of Directors of Accenture plc has authorized an aggregate of $46.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.
Since August 2001 and as of August 31, 2024, the Board of Directors of Accenture plc has authorized an aggregate of $50.1 billion for share purchases and redemptions by Accenture plc and Accenture Canada Holdings Inc.
(2) Since August 2001, the Board of Directors of Accenture plc has authorized and periodically confirmed a publicly announced open-market share purchase program for acquiring Accenture plc Class A ordinary shares. During the fourth quarter of fiscal 2023, we purchased 3,149,838 Accenture plc Class A ordinary shares under this program for an aggregate price of $984 million.
(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 2024, we purchased 2,000,308 Accenture plc Class A ordinary shares under this program for an aggregate price of $605 million.
On September 27, 2023, the Board of Directors of Accenture plc approved $4,000 million in additional share repurchase authority, bringing Accenture’s total outstanding authority to $6,490 million. (4) During the fourth quarter of fiscal 2023, Accenture purchased 53,469 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs.
On September 25, 2024, the Board of Directors of Accenture plc approved $4,000 million in additional share repurchase authority, bringing Accenture’s total outstanding authority to $6,694 million. (4) During the fourth quarter of fiscal 2024, Accenture purchased 72,255 Accenture plc Class A ordinary shares in transactions unrelated to publicly announced share plans or programs.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeOur results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence. There continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business.
Biggest changeThere continues to be significant economic and geopolitical uncertainty in many markets around the world, which has impacted and may continue to impact our business. These conditions have slowed the pace and level of client spending, particularly for smaller contracts with a shorter duration and for our consulting services.
We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale.
We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability to help the world’s leading organizations build their digital core, optimize their operations, accelerate revenue growth and enhance services—creating tangible value at speed and scale.
We serve clients in three geographic markets: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa and the Middle East).
We serve clients in three geographic markets: North America, EMEA (Europe, Middle East and Africa) and Growth Markets (Asia Pacific and Latin America).
All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2023” means the 12-month period that ended on August 31, 2023. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.
All references to years, unless otherwise noted, refer to our fiscal year, which ends on August 31. For example, a reference to “fiscal 2024” means the 12-month period that ended on August 31, 2024. All references to quarters, unless otherwise noted, refer to the quarters of our fiscal year.
Item 6. [Reserved] Table of Contents ACCENTURE 2023 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7.
Item 6. [Reserved] Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7.
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” • Revenues of $64.1 billion, representing 4% growth in U.S. dollars and 8% growth in local currency; • New bookings of $72.2 billion, an increase of 1% in U.S. dollars and 5% in local currency; • Operating margin of 13.7%, compared to 15.2% in fiscal 2022; adjusted operating margin expanded 20 basis points to 15.4%; • Diluted earnings per share of $10.77, compared to $10.71 for fiscal 2022; adjusted earnings per share increased 9% to $11.67; and • Cash returned to shareholders of $7.2 billion, including share purchases of $4.3 billion and dividends of $2.8 billion.
For additional information regarding business optimization costs, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” • Revenues of $64.9 billion, an increase of 1% in U.S. dollars and 2% in local currency; • New bookings of $81.2 billion, an increase of 13% in U.S. dollars and 14% in local currency; • Operating margin of 14.8%, compared to 13.7% in fiscal 2023; adjusted operating margin was 15.5% compared to 15.4% in fiscal 2023; • Diluted earnings per share of $11.44, a 6% increase over $10.77 for fiscal 2023; adjusted earnings per share increased 2% to $11.95 compared to $11.67 for fiscal 2023; and • Cash returned to shareholders of $7.8 billion, including share purchases of $4.5 billion and dividends of $3.2 billion.
We have presented operating margin and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $1,063 million in business optimization costs and, with respect to diluted earnings per share, the impact of a $253 million investment gain recorded during fiscal 2023.
We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis to exclude the impact of $438 million and $1,063 million, respectively, in business optimization costs recorded during fiscal 2024 and 2023 and, with respect to effective tax rate and diluted earnings per share, the impact of a $253 million investment gain related to our investment in Duck Creek Technologies recorded during fiscal 2023 as discussed further in our Results of Operations.
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These conditions have slowed the pace and level of client spending for smaller contracts with a shorter duration, especially for our consulting services. From an industry perspective, we are also experiencing reduced demand particularly in our Communications, Media & Technology industry group. Key Metrics Key metrics for fiscal 2023 compared to fiscal 2022 are included below.
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In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market. Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.
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Clients continue to prioritize large-scale transformations, which convert to revenue over a longer period. Key Metrics Key metrics for fiscal 2024 compared to fiscal 2023 are included below.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeFor information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” The increase in diluted earnings per share is due to the following factors: Earnings Per Share Fiscal 2023 FY22 As Reported $ 10.71 Higher revenue and operating results 0.60 Higher non-operating income (excluding loss on disposition of Russia business) 0.18 Loss on disposition of Russia business recorded in fiscal 2022 0.15 Lower share count 0.08 Higher effective tax rate (excluding loss on disposition of Russia business) (0.02) Higher net income attributable to noncontrolling interests (0.03) FY23 As Adjusted $ 11.67 Gain on an investment, net of tax 0.38 Business optimization costs (1.28) FY23 As Reported $ 10.77 Results of Operations for Fiscal 2022 Compared to Fiscal 2021 Our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 includes a discussion and analysis of our financial condition and results of operations for the year ended August 31, 2021 in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
Biggest changeThe increase in adjusted diluted earnings per share is due to the following factors: Fiscal FY23 As Adjusted $ 11.67 Higher revenue and operating results 0.19 Lower share count 0.05 Lower effective tax rate 0.05 Higher non-operating income 0.02 Higher net income attributable to noncontrolling interests (0.03) FY24 As Adjusted $ 11.95 Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free flow of funds. In addition, domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.
Substantially all of our cash is held in jurisdictions where there are no regulatory restrictions or material tax effects on the free flow of funds. Domestic cash inflows for our Irish parent, principally dividend distributions from lower-tier subsidiaries, have been sufficient to meet our historic cash requirements, and we expect this to continue into the future.
Revenue for our services is a function of the nature of each service to be provided, the skills required and the outcome sought, as well as estimated cost, risk, contract terms and other factors. Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
Revenue for our services is a function of the nature of each service to be provided, the skills required and the outcome sought, as well as estimated cost, risk, contract terms and other factors. Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
Revenues by Segment/Geographic Market Our three reportable operating segments are our geographic markets, North America, Europe and Growth Markets. In addition to reporting revenues by geographic market and industry group, we also report revenues by two types of work: consulting and managed services, which represent the services sold by our geographic markets.
Revenues by Segment/Geographic Market Our three reportable operating segments are our geographic markets, North America, EMEA and Growth Markets. In addition to reporting revenues by geographic market and industry group, we also report revenues by two types of work: consulting and managed services, which represent the services sold by our geographic markets.
In addition, clients continue to be focused on initiatives designed to deliver cost savings and operational efficiency, as well as projects to accelerate growth and improve customer experiences. While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, especially for smaller contracts with a shorter duration.
In addition, clients continue to be focused on initiatives designed to deliver cost savings and supply chain and operational resilience, as well as projects to accelerate growth and improve customer experiences. While we continue to experience demand for these services, we are seeing a slower pace and level of client spending, especially for smaller contracts with a shorter duration.
Share Purchases and Redemptions We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal 2024.
Share Purchases and Redemptions We intend to continue to use a significant portion of cash generated from operations for share repurchases during fiscal 2025.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Revenues Fiscal Percent Increase (Decrease) U.S.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Revenues Fiscal Percent Increase (Decrease) U.S.
Table of Contents ACCENTURE 2023 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 37 The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice.
Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40 The majority of our contracts are terminable by the client on short notice with little or no termination penalties, and some without notice.
We may use our available or additional funds to, among other things: • facilitate purchases, redemptions and exchanges of shares and pay dividends; • acquire complementary businesses or technologies; • take advantage of opportunities, including more rapid expansion; or • develop new services and solutions.
We may use our available or additional funds to, among other things: • facilitate purchases, redemptions and exchanges of shares and pay dividends; • acquire complementary businesses or technologies; • take advantage of opportunities, including more rapid expansion; • develop new services and solutions; or • repay outstanding borrowings and other debt.
Table of Contents ACCENTURE 2023 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38 No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested.
Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41 No taxes have been provided on undistributed foreign earnings that are planned to be indefinitely reinvested.
We experienced local currency revenue growth that was very strong in Resources and Health & Public Service, strong in Products and Financial Services, partially offset by a modest decline in Communications, Media & Technology. Revenue growth in local currency was very strong in managed services and modest in consulting during fiscal 2023.
We experienced local currency revenue growth that was very strong in Health & Public Service, solid in Resources and modest in Products, partially offset by a decline in Communications, Media & Technology and a modest decline in Financial Services. Revenue growth in local currency was solid in managed services, partially offset by a slight decline in consulting during fiscal 2024.
Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Results of Operations for Fiscal 2023 Compared to Fiscal 2022 Revenues by geographic market, industry group and type of work are as follows: Fiscal Percent Increase (Decrease) U.S.
Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Results of Operations for Fiscal 2024 Compared to Fiscal 2023 Revenues Revenues by geographic market, industry group and type of work are as follows: Fiscal Percent Increase (Decrease) U.S.
For the fourth quarter of fiscal 2023, annualized attrition, excluding involuntary terminations, was 14%, up from 13% in the third quarter of fiscal 2023. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.
For the fourth quarter of fiscal 2024, annualized attrition, excluding involuntary terminations, was 14%, consistent with the third quarter of fiscal 2024. We evaluate voluntary attrition, adjust levels of new hiring and use involuntary terminations as a means to keep our supply of skills and resources in balance with changes in client demand.
Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Liquidity and Capital Resources Our primary sources of liquidity are cash flows from operations, available cash reserves and debt capacity available under various credit facilities. We could raise additional funds through other public or private debt or equity financings.
Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Liquidity and Capital Resources Our primary sources of liquidity are cash flows from operations, available cash reserves, debt capacity available under variou s credit facilities and other borrowings. We could raise additional funds through other public or private debt or equity financings.
The increase in gross margin for fiscal 2023 was primarily due to lower labor costs, including lower subcontractor costs, partially offset by higher non-payroll costs, primarily for travel compared to fiscal 2022.
The increase in gross margin for fiscal 2024 was primarily due to lower labor costs, partially offset by higher non-payroll costs, primarily for travel compared to fiscal 2023.
The $816 million of business optimization costs, net of related taxes, decreased diluted earnings per share by $1.28 and the $244 million investment gain, net of related taxes, increased diluted earnings per share by $0.38 for fiscal 2023. Excluding these impacts, diluted earnings per share were $11.67 for fiscal 2023.
Adjusted diluted earnings per share were $11.95 for fiscal 2024. The business optimization costs of $816 million, net of related taxes, decreased diluted earnings per share by $1.28 and the investment gain of $244 million, net of related taxes, increased diluted earnings per share by $0.38 for fiscal 2023. Adjusted diluted earnings per share were $11.67 for fiscal 2023.
Our workforce, the majority of which serves our clients, increased to approximately 733,000 as of August 31, 2023, compared to approximately 721,000 as of August 31, 2022. The year-over-year increase in our workforce reflects people added in connection with acquisitions and hiring for specific skills. For fiscal 2023, attrition, excluding involuntary terminations, was 13%, down from 19% in fiscal 2022.
Our workforce, the majority of which serves our clients, increased to approximately 774,000 as of August 31, 2024, compared to approximately 733,000 as of August 31, 2023. The year-over-year increase in our workforce reflects people added in connection with acquisitions and hiring for specific skills. For fiscal 2024, attrition, excluding involuntary terminations, was 13%, consistent with fiscal 2023.
Cost of Services Cost of services for fiscal 2023 increased $1,487 million, or 4%, over fiscal 2022, and decreased as a percentage of revenues to 67.7% from 68.0% during this period. Gross margin for fiscal 2023 increased to 32.3% compared to 32.0% in fiscal 2022.
Cost of Services Cost of services for fiscal 2024 increased $354 million, or 1%, over fiscal 2023, and decreased as a percentage of revenues to 67.4% from 67.7% during this period. Gross margin for fiscal 2024 increased to 32.6% compared to 32.3% in fiscal 2023.
Payments under these commitments are estimated to be made as follows: (in millions of U.S. dollars) Payments (1) Less than 1 year $ 973 1-3 years 1,382 3-5 years 1,186 More than 5 years 137 Total $ 3,678 (1) Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
Payments under these commitments are estimated to be made as follows: (in millions of U.S. dollars) Payments (1) Less than 1 year $ 1,068 1-3 years 1,352 3-5 years 870 More than 5 years 80 Total $ 3,370 (1) Amounts do not include recourse that we may have to recover termination fees or penalties from clients.
The business environment is competitive, and we are experiencing lower pricing across the business. We define pricing as contract profitability or margin on the work that we sell . In our consulting business, revenues for fiscal 2023 decreased 1% in U.S. dollars and increased 3% in local currency compared to fiscal 2022.
The business environment is competitive, and we continue to experience lower pricing across the business. We define pricing as contract profitability or margin on the work that we sell . In our consulting business, revenues for fiscal 2024 decreased 1% in both U.S. dollars and local currency compared to fiscal 2023.
General and Administrative Costs General and administrative costs for fiscal 2023 increased $50 million, or 1%, over fiscal 2022, and decreased as a percentage of revenues to 6.7% from 6.9% during this period. Business Optimization Costs During fiscal 2023, we recorded business optimization costs of $1,063 million, primarily for employee severance.
General and Administrative Costs General and administrative costs for fiscal 2024 increased $5 million over fiscal 2023, and decreased as a percentage of revenues to 6.6% from 6.7% during this period. Business Optimization Costs During fiscal 2024 and 2023, we recorded business optimization costs of $438 million and $1,063 million, respectively, primarily for employee severance.
For additional information, see Note 6 (Business Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Financing activities: The $334 million increase in cash used was primarily due to an increase in cash dividends paid as well as an increase in the net purchase of shares, partially offset by increases in net proceeds from share issuances and net proceeds from borrowings.
For additional information, see Note 6 (Business Combinations and Dispositions) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Financing activities: The $418 million increase in cash used was due to higher cash dividends paid and net purchases of shares, as well as higher purchases of noncontrolling interests, partially offset by higher net proceeds from borrowings.
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Subsequent Events See Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Obligations and Commitments As of August 31, 2023, we had commitments of $3.7 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation.
For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Subsequent Events See Note 10 (Borrowings and Indebtedness) and Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Obligations and Commitments As of August 31, 2024, we had commitments of $3.4 billion related to cloud hosting arrangements, software subscriptions, information technology services and other obligations in the ordinary course of business that we cannot cancel or where we would be required to pay a termination fee in the event of cancellation.
Sales and Marketing Sales and marketing expense for fiscal 2023 increased $474 million, or 8%, over fiscal 2022, and increased as a percentage of revenues to 10.3% over 9.9% during this period due to higher selling and other business development costs as a percentage of revenues.
Sales and Marketing Sales and marketing expense for fiscal 2024 increased $264 million, or 4%, over fiscal 2023, and increased as a percentage of revenues to 10.6% over 10.3% during this period due to higher selling and other business development costs.
Our operating income and diluted earnings per share are affected by currency exchange rate fluctuations on revenues and costs. Most of our costs are incurred in the same currency as the related revenues.
Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Our operating income and diluted earnings per share are affected by currency exchange rate fluctuations on revenues and costs. Most of our costs are incurred in the same currency as the related revenues.
Dollars Percent Increase (Decrease) Local Currency (in billions of U.S. dollars) 2023 2022 Geographic Markets (1) North America $ 30.3 $ 29.1 4 % 4 % Europe 21.3 20.3 5 11 Growth Markets 12.5 12.2 3 12 Total Revenues $ 64.1 $ 61.6 4 % 8 % Industry Groups Communications, Media & Technology $ 11.5 $ 12.2 (6) % (3) % Financial Services 12.1 11.8 3 7 Health & Public Service 12.6 11.2 12 14 Products 19.1 18.3 5 9 Resources 8.9 8.1 10 15 Total Revenues $ 64.1 $ 61.6 4 % 8 % Type of Work Consulting $ 33.6 $ 34.1 (1) % 3 % Managed Services (2) 30.5 27.5 11 14 Total Revenues $ 64.1 $ 61.6 4 % 8 % Amounts in table may not total due to rounding.
Dollars Percent Increase (Decrease) Local Currency Percent of Total Revenues for Fiscal (in billions of U.S. dollars) 2024 2023 2024 2023 Geographic Markets North America (1) $ 30.7 $ 30.3 1 % 2 % 47 % 47 % EMEA (2) 22.8 22.3 2 — 35 35 Growth Markets (1) (2) 11.3 11.5 (2) 7 17 18 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Industry Groups Communications, Media & Technology $ 10.8 $ 11.5 (5) % (4) % 17 % 18 % Financial Services 11.6 12.1 (4) (3) 18 19 Health & Public Service 13.8 12.6 10 10 21 20 Products 19.6 19.1 2 2 30 30 Resources 9.1 8.9 2 4 14 14 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Type of Work Consulting $ 33.2 $ 33.6 (1) % (1) % 51 % 52 % Managed Services 31.7 30.5 4 5 49 48 Total Revenues $ 64.9 $ 64.1 1 % 2 % 100 % 100 % Amounts in table may not total due to rounding.
In our managed services business, revenues for fiscal 2023 increased 11% in U.S. dollars and 14% in local currency compared to fiscal 2022. Managed services revenue growth in local currency in fiscal 2023 was driven by very strong growth in Growth Markets and Europe and strong growth in North America.
In our managed services business, revenues for fiscal 2024 increased 4% in U.S. dollars and 5% in local currency compared to fiscal 2023. Managed services revenue growth in local currency in fiscal 2024 was driven by very strong growth in Growth Markets, solid growth in EMEA and modest growth in North America.
The commentary below provides insight into other factors affecting geographic market performance and operating income, including the impact of foreign currency exchange rates where significant for fiscal 2023 compared with fiscal 2022: • North America operating income decreased as revenue growth was more than offset by higher labor costs, including an increase in selling and other business development costs as a percentage of revenues. • Europe operating income increased due to revenue growth in local currency, partially offset by the negative impact of foreign currency exchange rates. • Growth Markets operating income increased primarily due to higher contract profitability and revenue growth in local currency, partially offset by the negative impact of foreign currency exchange rates.
The commentary below provides insight into other factors affecting geographic market performance and operating income, including the impact of foreign currency exchange rates where significant, for fiscal 2024 compared with fiscal 2023: • North America operating income increased primarily due to revenue growth, lower business optimization costs and lower labor costs, partially offset by a decline in consulting contract profitability and higher acquisition-related costs. • EMEA operating income increased primarily due to the positive impact of foreign currency exchange rates which resulted in an increase in U.S. dollar revenues, lower labor costs and lower business optimization costs, partially offset by declines in consulting revenues in local currency and consulting contract profitability. • Growth Markets operating income decreased as revenue growth in local currency and lower labor costs were more than offset by lower contract profitability and the negative impact of foreign currency exchange rates which resulted in a decline in U.S. dollar revenues.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table: Fiscal Change (in millions of U.S. dollars) 2023 2022 Net cash provided by (used in): Operating activities $ 9,524 $ 9,541 $ (17) Investing activities (2,622) (4,261) 1,638 Financing activities (5,645) (5,311) (334) Effect of exchange rate changes on cash and cash equivalents (101) (248) 147 Net increase (decrease) in cash and cash equivalents $ 1,155 $ (278) $ 1,434 Amounts in table may not total due to rounding.
Cash flows from operating, investing and financing activities, as reflected in our Consolidated Cash Flows Statements, are summarized in the following table: Fiscal Change (in millions of U.S. dollars) 2024 2023 Net cash provided by (used in): Operating activities $ 9,131 $ 9,524 $ (393) Investing activities (7,062) (2,622) (4,439) Financing activities (6,064) (5,645) (418) Effect of exchange rate changes on cash and cash equivalents (46) (101) 55 Net increase (decrease) in cash and cash equivalents $ (4,041) $ 1,155 $ (5,196) Amounts in table may not total due to rounding.
We continue to experience growing demand to assist clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service (formerly managed security services). In addition, clients continue to be focused on transforming their operations through data and analytics, automation and artificial intelligence to drive productivity and operational cost savings.
We continue to experience growing demand to assist clients with application modernization and maintenance, cloud enablement and cybersecurity-as-a-service. In addition, clients continue to be focused on transforming their operations through technology, data and AI, and leveraging our digital platforms and talent to drive productivity and operational cost savings.
Given the overall inflationary environment, compensation has increased faster than in prior years, but is moderating. We strive to adjust pricing as well as drive cost and delivery efficiencies, such as changing the mix of people and utilizing technology, to reduce the impact of compensation increases on our margin and contract profitability.
We strive to adjust pricing as well as drive cost and delivery efficiencies, such as changing the mix of people and utilizing technology, to reduce the impact of compensation increases on our margin and contract profitability.
Management's Discussion and Analysis of Financial Condition and Results of Operations 35 People Metrics Utilization Workforce Annualized Voluntary Attrition 91% 733,000 13% consistent with fiscal 2022 compared to approximately 721,000 as of August 31, 2022 compared to 19% in fiscal 2022 Utilization for fiscal 2023 was 91%, consistent with fiscal 2022. We hire to meet current and projected future demand.
People Metrics Utilization Workforce Annualized Voluntary Attrition 92% 774,000+ 13% up from 91% in fiscal 2023 compared to approximately 733,000 as of August 31, 2023 consistent with fiscal 2023 Utilization for fiscal 2024 was 92%, up from 91% in fiscal 2023. We hire to meet current and projected future demand.
For additional information, see Note 11 (Income Taxes) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Net Income Attributable to Noncontrolling Interests Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of Accenture Leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary.
Net Income Attributable to Noncontrolling Interests Net income attributable to noncontrolling interests reflects the income earned or expense incurred attributable to the equity interest that some current and former members of Accenture Leadership and their permitted transferees have in our Accenture Canada Holdings Inc. subsidiary.
For more information on our hedging programs, see Foreign Currency Risk under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Non-GAAP Financial Measures For fiscal 2023, we have presented effective tax rates and diluted earnings per share excluding the business optimization costs and investment gain, as well as operating income and operating margin excluding the business optimization costs, as we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior periods.
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Non-GAAP Financial Measures We have presented operating income, operating margin, effective tax rate and diluted earnings per share on a non-GAAP or “adjusted” basis excluding the business optimization costs recorded in fiscal 2024 and fiscal 2023, and, with respect to effective tax rate and diluted earnings per share, the impact of an investment gain recorded in fiscal 2023, as we believe doing so facilitates understanding as to the impact of these items and our performance in comparison to the prior periods.
While we believe that this non-GAAP financial information is useful in evaluating our operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. New Bookings Fiscal Percent Increase (Decrease) U.S.
While we believe that this non-GAAP financial information is useful in evaluating our operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
Revenues for fiscal 2023 increased 4% in U.S. dollars and 8% in local currency compared to fiscal 2022. During fiscal 2023, revenue growth in local currency was very strong in Growth Markets and Europe and solid in North America.
Revenues for fiscal 2024 increased 1% in U.S. dollars and 2% in local currency compared to fiscal 2023. During fiscal 2024, revenue growth in local currency was strong in Growth Markets and modest in North America, while EMEA was flat.
Absent the business optimization costs of $1,063 million and related reduction in tax expense of $247 million, as well as an investment gain of $253 million and related tax expense of $9 million, our effective tax rate for fiscal 2023 was 23.9%. Earnings Per Share Diluted earnings per share were $10.77 for fiscal 2023, compared with $10.71 for fiscal 2022.
Excluding the business optimization costs of $1,063 million and related reduction in tax expense of $247 million, and the investment gain of $253 million and related tax expense of $9 million, our adjusted effective tax rate was 23.9% for fiscal 2023.
These increases were partially offset by declines in Communications & Media, High Tech, Banking & Capital Markets and Software & Platforms. Revenue growth was driven by the United States. • Europe revenues increased 11% in local currency, led by growth in Industrial, Banking & Capital Markets and Public Service.
Revenue growth was driven by the United States. • EMEA revenues were flat in local currency, as growth in Public Service was offset by declines in Communications & Media and Banking & Capital Markets.
See “Business—Organizational Structure.” Noncontrolling interests also includes amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc. Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
See “Business—Organizational Structure.” Noncontrolling interests also includes amounts primarily attributable to noncontrolling shareholders in our Avanade Inc. subsidiary. Net income attributable to Accenture plc represents the income attributable to the shareholders of Accenture plc. Earnings Per Share Diluted earnings per share were $11.44 for fiscal 2024, compared with $10.77 for fiscal 2023.
Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Operating expenses by category are as follows: Fiscal (in millions of U.S. dollars) 2023 2022 Increase (Decrease) Operating Expenses $ 55,302 86.3 % $ 52,227 84.8 % $ 3,075 Cost of services 43,380 67.7 41,893 68.0 1,487 Sales and marketing 6,583 10.3 6,108 9.9 474 General and administrative costs 4,276 6.7 4,226 6.9 50 Business optimization costs 1,063 1.7 — — 1,063 Amounts in table may not total due to rounding.
Operating expenses by category are as follows: Fiscal (in millions of U.S. dollars) 2024 2023 Increase (Decrease) Operating Expenses $ 55,301 85.2 % $ 55,302 86.3 % $ (1) Cost of services 43,734 67.4 43,380 67.7 354 Sales and marketing 6,847 10.6 6,583 10.3 264 General and administrative costs 4,281 6.6 4,276 6.7 5 Business optimization costs 438 0.7 1,063 1.7 (625) Amounts in table may not total due to rounding.
Operating income and operating margin for each of the geographic markets are as follows: Fiscal 2023 2022 (in millions of U.S. dollars) Operating Income Operating Margin Operating Income Operating Margin Increase (Decrease) North America $ 4,474 15 % $ 4,977 17 % $ (503) Europe 2,333 11 2,437 12 (105) Growth Markets 2,004 16 1,953 16 51 Total $ 8,810 13.7 % $ 9,367 15.2 % $ (557) Amounts in table may not total due to rounding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Operating Income and Operating Margin Operating income and operating margin for each of the geographic markets are as follows: Fiscal 2024 2023 (in millions of U.S. dollars) Operating Income Operating Margin Operating Income Operating Margin Increase (Decrease) North America $ 4,952 16 % $ 4,474 15 % $ 479 EMEA (1) 2,804 12 2,483 11 320 Growth Markets (1) 1,840 16 1,853 16 (13) Total $ 9,596 14.8 % $ 8,810 13.7 % $ 786 Amounts in table may not total due to rounding.
We provide information regarding our new bookings, which include new contracts, including those acquired through acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides useful trend information regarding changes in the volume of our new business over time.
Dollars Percent Increase (Decrease) Local Currency (in billions of U.S. dollars) 2024 2023 Consulting $ 37.0 $ 36.2 2 % 3 % Managed Services 44.2 36.0 23 24 Total New Bookings $ 81.2 $ 72.2 13 % 14 % We provide information regarding our new bookings, which include new contracts, including those acquired through acquisitions, as well as renewals, extensions and changes to existing contracts, because we believe doing so provides useful trend information regarding changes in the volume of our new business over time.
Dollars Percent Increase (Decrease) Local Currency Percent of Total Revenues for Fiscal (in millions of U.S. dollars) 2023 2022 2023 2022 Geographic Markets (1) North America $ 30,296 $ 29,121 4 % 4 % 47 % 47 % Europe 21,285 20,264 5 11 33 33 Growth Markets 12,531 12,209 3 12 20 20 Total Revenues $ 64,112 $ 61,594 4 % 8 % 100 % 100 % Industry Groups Communications, Media & Technology $ 11,453 $ 12,200 (6) % (3) % 18 % 20 % Financial Services 12,132 11,811 3 7 19 19 Health & Public Service 12,560 11,226 12 14 20 18 Products 19,104 18,275 5 9 30 30 Resources 8,863 8,082 10 15 14 13 Total Revenues $ 64,112 $ 61,594 4 % 8 % 100 % 100 % Type of Work Consulting $ 33,613 $ 34,076 (1) % 3 % 52 % 55 % Managed Services (2) 30,499 27,518 11 14 48 45 Total Revenues $ 64,112 $ 61,594 4 % 8 % 100 % 100 % Amounts in table may not total due to rounding.
Dollars Percent Increase (Decrease) Local Currency (in millions of U.S. dollars) 2024 2023 Geographic Markets North America (1) $ 30,741 $ 30,296 1 % 2 % EMEA (2) 22,818 22,293 2 — Growth Markets (1) (2) 11,338 11,524 (2) 7 Total Revenues $ 64,896 $ 64,112 1 % 2 % Industry Groups Communications, Media & Technology $ 10,837 $ 11,453 (5) % (4) % Financial Services 11,610 12,132 (4) (3) Health & Public Service 13,841 12,560 10 10 Products 19,554 19,104 2 2 Resources 9,054 8,863 2 4 Total Revenues $ 64,896 $ 64,112 1 % 2 % Type of Work Consulting $ 33,195 $ 33,613 (1) % (1) % Managed Services 31,701 30,499 4 5 Total Revenues $ 64,896 $ 64,112 1 % 2 % Amounts in table may not total due to rounding.
The U.S. dollar strengthened against various currencies during fiscal 2023, resulting in unfavorable currency translation and U.S. dollar revenue growth that was approximately 4% lower than our revenue growth in local currency for the year.
The U.S. dollar strengthened against various currencies during fiscal 2024, resulting in unfavorable currency translation and U.S. dollar revenue growth that was approximately 1% lower than our Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 39 revenue growth in local currency for the year.
Operating Expenses The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs. Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation, subcontractor and other payroll costs, and non-payroll costs such as facilities, technology and travel.
Cost of services is primarily driven by the cost of people serving our clients, which consists mainly of compensation, subcontractor and other payroll costs, and non-payroll costs such as facilities, technology and travel. Cost of services includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of acquisitions.
To date, we have not been required to make any significant payment under any of these arrangements. For further discussion of these transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Table of Contents ACCENTURE 2023 FORM 10-K Item 7A. Quantitative and Qualitative Disclosures About Market Risk 45
For further discussion of these transactions, see Note 15 (Commitments and Contingencies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” New Accounting Pronouncements See Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Table of Contents ACCENTURE 2024 FORM 10-K Item 7A.
Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2024 revenue growth in U.S. dollars will be approximately equal to our revenue growth in local currency. Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
Assuming that exchange rates stay within recent ranges, we estimate that our fiscal 2025 revenue growth in U.S. dollars will be approximately 1.5% higher than our revenue growth in local currency.
Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by other means. The repurchase program may be accelerated, suspended, delayed or discontinued at any time, without notice.
Share repurchases may be made from time to time through open-market purchases, in respect of purchases and redemptions of Accenture Canada Holdings Inc. exchangeable shares, through the use of Rule 10b5-1 plans and/or by Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 48 other means.
(1) Costs recorded in connection with our business optimization initiatives, primarily for employee severance. We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2023 was similar to that disclosed for revenue for each geographic market.
Operating income for fiscal 2024 increased $786 million, or 9%, compared with fiscal 2023. Operating margin for fiscal 2024 was 14.8%, compared with 13.7% for fiscal 2023. Geographic Markets We estimate that the aggregate percentage impact of foreign currency exchange rates on our operating income during fiscal 2024 was similar to that disclosed for revenue for each geographic market.
The business optimization costs reduced operating margin by 170 basis points. Excluding these costs, operating margin for fiscal 2023 increased 20 basis points to 15.4%.
Operating Income and Operating Margin Excluding Business Optimization Costs (Non-GAAP) The business optimization costs reduced operating margin for fiscal 2024 and 2023 by 70 and 170 basis points, respectively. Adjusted operating margin for fiscal 2024 increased 10 basis points to 15.5% compared with fiscal 2023.
Revenue growth was driven by Germany, Italy and France. • Growth Markets revenues increased 12% in local currency, led by growth in Chemicals & Natural Resources, Public Service and Banking & Capital Markets. Revenue growth was driven by Japan.
Revenues were driven by an increase in Italy, offset by declines in France and the United Kingdom. • Growth Markets revenues increased 7% in local currency, led by growth in Banking & Capital Markets, Industrial and Chemicals & Natural Resources. Revenue growth was driven by Japan and Argentina, partially offset by declines in Australia and Brazil.
General and administrative costs primarily include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs. Gross margin (Revenues less Cost of services as a percentage of Revenues) for fiscal 2023 was 32.3%, compared with 32.0% for fiscal 2022.
General and administrative costs primarily include costs for people that are non-client-facing, information systems, office space and certain acquisition-related costs.
(1) In the first quarter of fiscal 2024, our Middle East and Africa market units will move from Growth Markets to Europe, and the Europe market will be referred to as our Europe, Middle East and Africa (EMEA) geographic market. (2) Previously referred to as our outsourcing business.
(1) Costs recorded in connection with our business optimization initiatives, primarily for employee severance. (2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market.
Operating activities: The $17 million decrease in operating cash flows were primarily due to higher spending on certain compensation payments, partially offset by higher collections on net client balances (receivables from clients, contract assets and deferred revenues).
Operating activities: The $393 million decrease in operating cash flows was primarily due to changes in operating assets and liabilities, including receivables from clients and contract assets, partially offset by higher net income. Investing activities: The $4,439 million increase in cash used was primarily due to higher spending on business acquisitions.
Revenues The following revenues commentary discusses local currency revenue changes for fiscal 2023 compared to fiscal 2022: Geographic Markets • North America revenues increased 4% in local currency, led by growth in Public Service for our U.S. federal business, Health and Utilities.
Geographic Markets The following revenues commentary discusses the primary drivers of local currency revenue changes by geographic market for fiscal 2024 compared to fiscal 2023: • North America revenues increased 2% in local currency, led by growth in Public Service and Industrial, partially offset by declines in Banking & Capital Markets, Communications & Media and Software & Platforms.
Interest Income Interest income for fiscal 2023 was $280 million, an increase of $235 million over fiscal 2022. The increase was primarily due to higher interest rates. Other Income (Expense), net Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension expense, as well as gains and losses associated with our investments.
Prior period amounts have been reclassified to conform with the current period presentation. Other Income (Expense), net Other income (expense), net primarily consists of foreign currency gains and losses, non-operating components of pension expense, as well as gains and losses associated with our investments.
Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Operating Income and Operating Margin Excluding Business Optimization Costs (Non-GAAP) Fiscal 2023 2022 (in millions of U.S. dollars) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Operating Income (GAAP) Operating Margin (GAAP) Increase (Decrease) North America $ 4,474 $ 465 $ 4,939 16 % $ 4,977 17 % $ (38) Europe 2,333 433 2,766 13 2,437 12 328 Growth Markets 2,004 165 2,169 17 1,953 16 216 Total $ 8,810 $ 1,063 $ 9,873 15.4 % $ 9,367 15.2 % $ 506 Amounts in table may not total due to rounding.
Fiscal 2024 2023 (in millions of U.S. dollars) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Operating Income (GAAP) Business Optimization (1) Operating Income (Non-GAAP) Operating Margin (Non-GAAP) Increase (Decrease) North America $ 4,952 $ 68 $ 5,021 16 % $ 4,474 $ 465 $ 4,939 16 % $ 82 EMEA (2) 2,804 249 3,052 13 2,483 438 2,922 13 131 Growth Markets (2) 1,840 122 1,961 17 1,853 160 2,013 17 (51) Total $ 9,596 $ 438 $ 10,034 15.5 % $ 8,810 $ 1,063 $ 9,873 15.4 % $ 161 Amounts in table may not total due to rounding.
(1) In the first quarter of fiscal 2024, our Middle East and Africa market units will move from Growth Markets to Europe, and the Europe market will be referred to as our Europe, Middle East and Africa (EMEA) geographic market. (2) Previously referred to as our outsourcing business.
(2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
Consulting revenue growth in local currency in fiscal 2023 was driven by strong growth in Growth Markets and solid growth in Europe, while North America was flat. Our consulting revenue continues to be driven by helping our clients accelerate their digital transformation, including moving to the cloud, embedding security across the enterprise and adopting new technologies.
The decline in consulting revenue in local currency in fiscal 2024 was driven by a decline in EMEA, partially offset by modest growth in Growth Markets and slight growth in North America. Our consulting revenue continues to be driven by helping our clients accelerate their reinvention, in particular technology, data, and AI led digital transformations.
Absent the business optimization costs of $1,063 million and related reduction in tax expense of $247 million, and the investment gain of $253 million and related tax expense of $9 million, our effective tax rate for fiscal 2023 was 23.9%.The slightly lower effective tax rate for fiscal 2023 was primarily due to lower tax expense from the geographic distribution of earnings, partially offset by lower tax benefits from share-based payments.
Income Tax Expense Excluding Business Optimization Costs and Investment Gain (Non-GAAP) Excluding the business optimization costs of $438 million and related reduction in tax expense of $111 million, our adjusted effective tax rate was 23.6% for fiscal 2024.
Excluding these costs, operating margin for fiscal 2023 increased 20 basis points to 15.4%. Table of Contents ACCENTURE 2023 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Other Income (Expense), net During fiscal 2023, we recorded a gain of $253 million related to our investment in Duck Creek Technologies.
During fiscal 2024, Other income (expense), net decreased $206 million from fiscal 2023, primarily due to lower gains on investments. Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Income Tax Expense The effective tax rate for fiscal 2024 was 23.5%, compared with 23.4% for fiscal 2023.
The $816 million of business optimization costs, net of related taxes, decreased diluted earnings per share by $1.28 and the $244 million investment gain, net of related taxes, increased diluted earnings per share by $0.38 for fiscal 2023. Excluding these impacts, diluted earnings per share were $11.67 for fiscal 2023.
For information regarding our earnings per share calculations, see Note 3 (Earnings Per Share) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Earnings Per Share Excluding Business Optimization Costs and Investment Gain (Non-GAAP) The business optimization costs of $327 million, net of related taxes, decreased diluted earnings per share by $0.51 for fiscal 2024.
For additional information, see Note 14 (Shareholders’ Equity) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
For more information on our hedging programs, see Foreign Currency Risk under Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” and Note 9 (Financial Instruments) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Results of Operations for Fiscal 2023 Compared to Fiscal 2022 Our Annual Report on Form 10-K for the fiscal year ended August 31, 2023 includes a discussion and analysis of our financial condition and results of operations for the year ended August 31, 2022 in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Table of Contents ACCENTURE 2024 FORM 10-K Item 7.
Cost of services includes a variety of activities such as: contract delivery; recruiting and training; software development; and integration of acquisitions. Sales and marketing costs are driven primarily by: compensation costs for business development activities; marketing- and advertising-related activities; and certain acquisition-related costs.
Sales and marketing costs are driven primarily by compensation costs for business development activities; Table of Contents ACCENTURE 2024 FORM 10-K Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 43 marketing- and advertising-related activities; and certain acquisition-related costs.
For fiscal 2023 compared to fiscal 2022, Sales and marketing costs increased 40 basis points due to higher selling and other business development costs as a percentage of revenues. General and administrative costs decreased 20 basis points as a percentage of revenues. During fiscal 2023, we recorded $1,063 million in business optimization costs primarily for employee severance.
Argentina revenues grew in local currency due primarily to hyperinflation. Operating Expenses Operating expenses for fiscal 2024 decreased $1 million from fiscal 2023, and decreased as a percentage of revenues to 85.2% from 86.3% during this period. The primary categories of operating expenses include Cost of services, Sales and marketing and General and administrative costs.
Removed
During the second quarter of fiscal 2023, we initiated actions to streamline operations and transform our nonbillable corporate functions to reduce costs. In addition, we adjust compensation in order to attract and retain appropriate numbers of qualified employees. For the majority of our people, compensation increases became effective December 1st of fiscal 2023.
Added
(1) In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.
Removed
The increase in gross margin for fiscal 2023 was primarily due to lower labor costs, including lower subcontractor costs, partially offset by higher non-payroll costs, primarily for travel. Sales and marketing and General and administrative costs as a percentage of revenues were 16.9% for fiscal 2023, compared with 16.8% for fiscal 2022.
Added
This includes moving to the cloud, embedding security and responsible AI across the enterprise and leveraging our change capabilities to help our clients build new skills and drive the successful adoption of new processes and technologies.
Removed
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Operating margin (Operating income as a percentage of Revenues) for fiscal 2023 was 13.7%, compared with 15.2% for fiscal 2022.The business optimization costs recorded during fiscal 2023 reduced operating margin by 170 basis points.
Added
In addition, we adjust compensation to provide market relevant pay based on the skills of our people and locations where we operate. We also consider a variety of factors, including the macroeconomic environment, in making our decisions around pay and benefits.
Removed
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Effective Tax Rate The effective tax rates for fiscal 2023 and 2022 were 23.4% and 24.0%, respectively.
Added
(1) In the first quarter of fiscal 2025, our Latin America market unit will move from Growth Markets to North America. With this change, North America will become the Americas market and Growth Markets will become the Asia Pacific market.
Removed
Dollars Percent Increase (Decrease) Local Currency (in billions of U.S. dollars) 2023 2022 Consulting $ 36.2 $ 37.9 (4) % (1) % Managed Services (1) 36.0 33.9 6 10 Total New Bookings $ 72.2 $ 71.7 1 % 5 % Amounts in table may not total due to rounding. (1) Previously referred to as our outsourcing business.
Added
(2) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
Removed
Operating Expenses Operating expenses for fiscal 2023 increased $3,075 million, or 6%, over fiscal 2022, and increased as a percentage of revenues to 86.3% compared to 84.8% during this period. The increase as a percentage of revenues is primarily due to business optimization costs of $1,063 million recorded during fiscal 2023. Table of Contents ACCENTURE 2023 FORM 10-K Item 7.
Added
These business optimization initiatives were completed as of August 31, 2024.
Removed
For additional information, see Note 1 (Summary of Significant Accounting Policies) to our Consolidated Financial Statements under Item 8, “Financial Statements and Supplementary Data.” Operating Income and Operating Margin Operating income for fiscal 2023 decreased $557 million, or 6%, from fiscal 2022. Operating margin for fiscal 2023 was 13.7%, compared with 15.2% for fiscal 2022.
Added
(1) During the first quarter of fiscal 2024, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market became our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.
Removed
Table of Contents ACCENTURE 2023 FORM 10-K Item 7.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−0 removed11 unchanged
Biggest changeThese hedges, the most significant of which are U.S. dollar/Indian rupee, U.S. dollar/Japanese yen, U.S. dollar/Euro, U.S. dollar/Swiss franc, U.S. dollar/Australian dollar, U.S. dollar/Chinese yuan, U.S. dollar/U.K. pound and U.S. dollar/Philippine peso, are intended to offset remeasurement of the underlying assets and liabilities.
Biggest changeThese hedges, the most significant of which are U.S. dollar/Euro, U.S. dollar/Indian rupee, U.S. dollar/Japanese yen, U.S. dollar/U.K. pound, U.S. dollar/Swiss franc, U.S. dollar/Chinese yuan, U.S. dollar/Australian dollar and U.S. dollar/Philippine peso, are intended to offset remeasurement of the underlying assets and liabilities.
We have minimal exposure on our long-term investments in privately held companies as these investments were not material in relation to our consolidated financial position, results of operations or cash flows as of August 31, 2023. Table of Contents ACCENTURE 2023 FORM 10-K Item 7A.
We have minimal exposure on our long-term investments in privately held companies as these investments were not material in relation to our consolidated financial position, results of operations or cash flows as of August 31, 2024. Table of Contents ACCENTURE 2024 FORM 10-K Item 7A.
Interest Rate Risk The interest rate risk associated with our borrowing and investing activities as of August 31, 2023 is not material in relation to our consolidated financial position, results of operations or cash flows.
Interest Rate Risk The interest rate risk associated with our borrowing and investing activities as of August 31, 2024 is not material in relation to our consolidated financial position, results of operations or cash flows.
Quantitative and Qualitative Disclosures About Market Risk 46 We record our marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values.
Quantitative and Qualitative Disclosures About Market Risk 50 We record our marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values.
A 10% change in the levels of foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately $856 million and $693 million as of August 31, 2023 and 2022, respectively.
A 10% change in the levels of foreign currency exchange rates against the U.S. dollar (or other base currency of the hedge if not a U.S. dollar hedge) with all other variables held constant would have resulted in a change in the fair value of our hedge instruments of approximately $655 million and $856 million as of August 31, 2024 and 2023, respectively.
As of August 31, 2023, it was anticipated that approximately $3 million of net gains, net of tax, currently recorded in Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.
As of August 31, 2024, it was anticipated that approximately $22 million of net gains, net of tax, currently recorded in Accumulated other comprehensive loss will be reclassified into Cost of services within the next 12 months.

Other ACN 10-K year-over-year comparisons