10-KPeriod: FY2009

Accenture plc Annual Report, Year Ended Aug 31, 2009

Filed October 19, 2009For Securities:ACN

Summary

Accenture plc's 2009 10-K filing reflects a challenging year marked by a global economic downturn, leading to an 8% decrease in net revenues to $21.58 billion. Despite this revenue contraction, the company demonstrated resilience, particularly in its outsourcing segment, which saw a 6% increase in local currency. Accenture also focused on cost management, including a workforce realignment and office space consolidation, resulting in $253 million in restructuring costs. The company successfully transitioned its parent incorporation to Ireland during the year. Despite the economic headwinds, Accenture maintained a strong balance sheet with increased cash and cash equivalents and continued its commitment to returning value to shareholders through share repurchases and dividends. Key financial highlights include a slight improvement in gross margin due to better outsourcing contract profitability and a decrease in operating income, largely due to restructuring costs. Diluted earnings per share saw a decrease, influenced by these restructuring charges. The report also details the company's extensive global operations, its diverse service offerings across multiple industries, and a robust risk factor section highlighting concerns about economic conditions, competition, and technological changes. Overall, the filing portrays a company navigating a difficult economic environment while strategically managing its resources and operations.

Financial Highlights

55 data points
Beta

Revenue

$23.17B

29.5% Gross Margin

Net Income

$1.59B

6.9% Net Margin

EPS (Diluted)

$2.44

Total Assets

$12.26B

Cash & Equivalents

$4.54B

Free Cash Flow

$2.92B

Financial Statements
Beta
Revenue$23.17B
Cost of Revenue$16.33B
Gross Profit$6.84B
R&D Expenses$434.94M
Operating Expenses$20.53B
Operating Income$2.64B
Interest Expense$14.12M
Net Income$1.59B
EPS (Basic)$2.55
EPS (Diluted)$2.44
Shares Outstanding (Basic)623.01M
Shares Outstanding (Diluted)786.89M

Key Highlights

  • 1Net revenues decreased by 8% to $21.58 billion for fiscal year 2009, reflecting the impact of the global economic downturn.
  • 2Outsourcing revenues showed resilience, increasing by 6% in local currency, while consulting revenues decreased by 4% in local currency.
  • 3The company incurred $253 million in restructuring costs related to workforce realignment and office space consolidation to manage costs.
  • 4Accenture completed its reincorporation from Bermuda to Ireland in September 2009, establishing Accenture plc as the parent holding company.
  • 5Cash and cash equivalents increased by $939 million to $4.54 billion, indicating a strong liquidity position.
  • 6Diluted earnings per share decreased to $2.44 from $2.65 in the prior year, impacted by restructuring costs.
  • 7The company repurchased shares totaling $1.86 billion during fiscal year 2009, demonstrating a commitment to shareholder returns.

Frequently Asked Questions

The global economic downturn significantly impacted Accenture's financial performance, leading to an 8% decrease in net revenues to $21.58 billion. The downturn caused clients to reduce spending on consulting services, slow down projects, and request price concessions, which affected both revenue growth and profit margins.

Net revenues declined primarily due to reduced client spending on consulting services, influenced by the economic downturn. While outsourcing revenues showed resilience and grew in local currency, this was not enough to offset the decline in consulting revenues. Geographic performance varied, with the Americas and EMEA regions experiencing declines, while Asia Pacific saw growth.

Accenture implemented cost management strategies, including a workforce realignment and office space consolidation, which resulted in $253 million in restructuring costs. The company also managed headcount more closely and focused on improving the profitability of its outsourcing contracts. These measures were taken to align costs with the reduced demand and maintain operational efficiency.

Accenture completed its reincorporation from Bermuda to Ireland in September 2009. This move was primarily to establish a parent holding company in Ireland, reflecting a strategic decision that did not have a material impact on the company's financial condition or results of operations but aligned its corporate structure with its global operational presence.