01—Abstract
Summary
Summary of the 10-K filed October 26, 2017. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's 2017 10-K filing highlights a year of solid revenue growth, with net revenues reaching $34.9 billiona, a 6% increase in U.S. dollars and 7% in local currency over the previous year.
This growth was driven by strong demand across most service lines, particularly in the Products and Financial Services sectors, and in Growth Markets and Europe. The company emphasized its focus on digital, cloud, and security-related services, referred to as 'the New,' as key components of its strategy and future growth. Investments in strategic acquisitions and talent development were also noted as critical to maintaining differentiation and competitiveness.
Despite a challenging economic and geopolitical environment, Accenture demonstrated resilience. However, the company did incur a significant pension settlement charge of $510 millionb in fiscal year 2017, which impacted operating income and earnings per share. Excluding this charge, operating margin showed a slight improvement.
Accenture also continued its share repurchase program, returning value to shareholders. The filing underscores Accenture's global reach, extensive service portfolio, and commitment to innovation and talent as core drivers of its business.
02—Key points
Key Highlights
- Accenture reported net revenues of $34.9 billion for fiscal year 2017, a 6% increase in USD and 7% in local currency compared to fiscal year 2016, indicating continued demand for its services.
- Revenue growth was particularly strong in the Products segment (14% in local currency) and Financial Services (7% in local currency), with significant contributions from Growth Markets and Europe.
- The company continues to invest in 'the New' – digital, cloud, and security-related services – positioning these as increasingly important components of its offerings.
- A $510 million pension settlement charge was recorded in fiscal year 2017, impacting reported operating income and diluted earnings per share.
- Diluted earnings per share were $5.44 for fiscal year 2017, a decrease from $6.45 in fiscal year 2016, largely due to the pension settlement charge and the absence of a significant gain from business divestitures in the prior year.
- Accenture's workforce grew to approximately 425,000 employees as of August 31, 2017, reflecting increased demand and strategic acquisitions.
- The company maintained its commitment to returning capital to shareholders through share repurchases, with an available authorization of $3.1 billion for share purchases as of August 31, 2017.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2017, Accenture plc kept $0.10.
- Revenue$36.18B100.0%
- Cost of revenue−$25.11B69.4%
- Gross profit$11.07B30.6%
- Operating costs−$5.88B16.3%
- Operating income$5.19B14.4%
- Interest, other & tax−$1.75B4.8%
- Net income$3.45B9.5%
Where FY2017 revenue went
$36.18B- Cost of revenue: $25.11B, 69% of revenue
- Other operating costs: $5.18B, 14% of revenue
- Net income: $3.45B, 9.5% of revenue
- R&D: $704.3M, 1.9% of revenue
- Interest, other & tax: $1.75B, 4.8% of revenue
Kept 9.5% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2017filed October 26, 2017Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $36.18B$34.80B | +4.0% |
| Cost of Revenue | $25.11B$24.52B | +2.4% |
| Gross Profit | $11.07B$10.28B | +7.7% |
| R&D Expenses | $704.32M$643.41M | +9.5% |
| Operating Expenses | $30.99B$29.99B | +3.3% |
| Operating Income | $5.19B$4.81B | +7.9% |
| Interest Expense | $15.54M$16.26M | −4.4% |
| Net Income | $3.45B$4.11B | −16.2% |
| EPS (Basic) | $5.56$6.58 | −15.5% |
| EPS (Diluted) | $5.44$6.45 | −15.7% |
| Shares Outstanding (Basic) | 620.10M624.80M | −0.8% |
| Shares Outstanding (Diluted) | 660.46M667.77M | −1.1% |
05—Questions
Frequently Asked Questions
What was Accenture's net revenue for fiscal year 2017, and how did it perform compared to the previous year?
In fiscal year 2017, Accenture reported net revenues of $34.9 billion. This represents a 6% increase in U.S. dollars and a 7% increase in local currency compared to fiscal year 2016, indicating solid growth driven by strong client demand across its services.
What are Accenture's key strategic priorities mentioned in the 10-K?
Accenture's strategy is focused on industry and technology differentiation, with an increasing emphasis on an innovation-led approach. Key strategic priorities highlighted include investing in digital, cloud, and security-related services ('the New'), making strategic acquisitions, and investing in talent development to enhance its competitive position.
What significant financial events impacted Accenture's results in fiscal year 2017?
The most significant financial event impacting Accenture's fiscal year 2017 results was a $510 million pension settlement charge related to the termination of its U.S. pension plan. This charge negatively affected reported operating income and diluted earnings per share.
How is Accenture managing its workforce and talent?
Accenture emphasizes attracting and retaining top talent. As of August 31, 2017, the company employed approximately 425,000 people globally. It focuses on continuous employee development through training and skill enhancement and manages its workforce size and composition to balance client demand with resource capacity, utilizing hiring, training, and, when necessary, involuntary terminations.
06—Continue