01—Abstract
Summary
Summary of the 10-K filed October 21, 2011. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's 2011 Form 10-K report highlights a year of significant revenue growth, driven by strong performance across all operating groups and particularly in the Resources and Products sectors.
The company experienced an 18% increase in U.S. dollar net revenues, reaching $25.51 billiona, and a 15% increase in local currency, underscoring a recovery and expansion phase following a more challenging prior year. This growth was fueled by robust demand in both consulting and outsourcing services, with notable strength in the Americas and Asia Pacific regions. Key financial strategies focused on managing costs effectively while investing in talent and innovation.
The company's Global Delivery Network played a crucial role in delivering cost-effective solutions. Accenture also continued its commitment to returning capital to shareholders through dividends and share repurchases, signaling financial health and confidence in future performance. However, the report also acknowledges ongoing global economic volatility and competitive pressures as key factors that could impact future results.
02—Key points
Key Highlights
- Achieved strong net revenue growth of 18% in U.S. dollars ($25.51 billion) and 15% in local currency for fiscal year 2011.
- Reported significant growth in both consulting (21% increase in USD) and outsourcing (15% increase in USD) services.
- All five operating groups—Communications & High Tech, Financial Services, Health & Public Service, Products, and Resources—experienced year-over-year revenue growth.
- The Americas and Asia Pacific regions showed particularly strong revenue growth in local currency.
- Company headcount increased to approximately 236,000 employees, reflecting increased demand for services.
- Returned significant capital to shareholders through dividends and share repurchases, with $1.6 billion spent on share repurchases in fiscal year 2011.
- Net income attributable to Accenture plc increased to $2.278 billion from $1.781 billion in the prior year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Accenture plc kept $0.08.
- Revenue$27.35B100.0%
- Cost of revenue−$18.97B69.3%
- Gross profit$8.39B30.7%
- Operating costs−$4.92B18.0%
- Operating income$3.47B12.7%
- Interest, other & tax−$1.19B4.4%
- Net income$2.28B8.3%
Where FY2011 revenue went
$27.35B- Cost of revenue: $18.97B, 69% of revenue
- Other operating costs: $4.43B, 16% of revenue
- Net income: $2.28B, 8.3% of revenue
- R&D: $482.0M, 1.8% of revenue
- Interest, other & tax: $1.19B, 4.4% of revenue
Kept 8.3% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed October 21, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $27.35B$23.09B | +18.4% |
| Cost of Revenue | $18.97B$15.84B | +19.7% |
| Gross Profit | $8.39B$7.25B | +15.7% |
| R&D Expenses | $481.97M$376.99M | +27.8% |
| Operating Expenses | $23.88B$20.18B | +18.4% |
| Operating Income | $3.47B$2.91B | +19.1% |
| Interest Expense | $15.00M$14.68M | +2.2% |
| Net Income | $2.28B$1.78B | +27.9% |
| EPS (Basic) | $3.53$2.79 | +26.5% |
| EPS (Diluted) | $3.39$2.66 | +27.4% |
| Shares Outstanding (Basic) | 645.63M637.17M | +1.3% |
| Shares Outstanding (Diluted) | 743.21M767.01M | −3.1% |
05—Questions
Frequently Asked Questions
What was Accenture's revenue performance in fiscal year 2011?
Accenture reported a significant increase in net revenues for fiscal year 2011, reaching $25.51 billion, an 18% increase in U.S. dollars and a 15% increase in local currency compared to fiscal year 2010. This growth was broad-based across all operating groups and service lines.
How did Accenture manage its workforce and talent in response to demand?
Accenture increased its global headcount to approximately 236,000 employees by August 31, 2011, to meet the growing demand for its services. The company focused on balancing its supply of skills with client demand and managing attrition, while also adjusting compensation in certain skill sets and geographies to attract and retain talent.
What is Accenture's strategy for returning capital to shareholders?
Accenture continued its practice of returning capital to shareholders through dividends and share repurchases. In fiscal year 2011, the company spent $1.6 billion on share repurchases and declared a semi-annual cash dividend of $0.675 per share. The Board of Directors also approved an additional $5.0 billion in share repurchase authority.
What were the key risks highlighted in the filing for Accenture's business?
Key risks identified include the impact of volatile economic conditions on client spending, intense competition, cybersecurity threats, operational risks associated with its Global Delivery Network (especially in India and the Philippines), and the challenges of managing a geographically diverse and large workforce. Fluctuations in foreign currency exchange rates were also noted as a potential risk.
06—Continue