01—Abstract
Summary
Summary of the 10-K filed October 19, 2009. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 millionb 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.
02—Key points
Key Highlights
- Net revenues decreased by 8% to $21.58 billion for fiscal year 2009, reflecting the impact of the global economic downturn.
- Outsourcing revenues showed resilience, increasing by 6% in local currency, while consulting revenues decreased by 4% in local currency.
- The company incurred $253 million in restructuring costs related to workforce realignment and office space consolidation to manage costs.
- Accenture completed its reincorporation from Bermuda to Ireland in September 2009, establishing Accenture plc as the parent holding company.
- Cash and cash equivalents increased by $939 million to $4.54 billion, indicating a strong liquidity position.
- Diluted earnings per share decreased to $2.44 from $2.65 in the prior year, impacted by restructuring costs.
- The company repurchased shares totaling $1.86 billion during fiscal year 2009, demonstrating a commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Accenture plc kept $0.07.
- Revenue$23.17B100.0%
- Cost of revenue−$16.33B70.5%
- Gross profit$6.84B29.5%
- Operating costs−$4.20B18.1%
- Operating income$2.64B11.4%
- Interest, other & tax−$1.05B4.5%
- Net income$1.59B6.9%
Where FY2009 revenue went
$23.17B- Cost of revenue: $16.33B, 70% of revenue
- Other operating costs: $3.76B, 16% of revenue
- Net income: $1.59B, 6.9% of revenue
- R&D: $434.9M, 1.9% of revenue
- Interest, other & tax: $1.05B, 4.5% of revenue
Kept 6.9% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed October 19, 2009Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $23.17B$25.31B | −8.5% |
| Cost of Revenue | $16.33B$18.13B | −9.9% |
| Gross Profit | $6.84B$7.19B | −4.8% |
| R&D Expenses | $434.94M$390.17M | +11.5% |
| Operating Expenses | $20.53B$22.30B | −8.0% |
| Operating Income | $2.64B$3.01B | −12.2% |
| Interest Expense | $14.12M$22.70M | −37.8% |
| Net Income | $1.59B$1.69B | −6.0% |
| EPS (Basic) | $2.55$2.77 | −7.9% |
| EPS (Diluted) | $2.44$2.64 | −7.6% |
| Shares Outstanding (Basic) | 623.01M610.95M | +2.0% |
| Shares Outstanding (Diluted) | 786.89M824.01M | −4.5% |
05—Questions
Frequently Asked Questions
How did the global economic downturn affect Accenture's financial performance in fiscal year 2009?
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.
What were the key drivers behind the changes in Accenture's net revenues?
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.
How is Accenture managing costs in response to the economic challenges?
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.
What is the significance of the company's reincorporation to Ireland?
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.
06—Continue