01—Abstract
Summary
Summary of the 8-K filed September 29, 2016. Cited figures are marked; the original filing is the authoritative source.
Accenture plc (ACN) filed an 8-K on September 29, 2016, to announce its financial results for the fourth quarter and full fiscal year ended August 31, 2016.
The filing primarily incorporates a press release detailing these results and also outlines the non-GAAP financial measures the company utilizes. Investors should note that the company uses metrics such as free cash flow, net revenue growth in local currency, and adjusted diluted earnings per share, excluding specific one-time charges and gains. These non-GAAP measures are presented alongside GAAP figures to provide a more nuanced view of operational performance and liquidity.
The press release, attached as Exhibit 99, is the primary source of detailed financial information. Accenture's management emphasizes that while these non-GAAP measures offer valuable insights, they are supplementary and should be considered in conjunction with the company's GAAP-reported financial statements. The company's use of these adjusted metrics highlights its focus on underlying business trends and operational efficiency, excluding the impact of foreign currency fluctuations and significant corporate actions.
02—Key points
Key Highlights
- Accenture announced its Q4 and full fiscal year 2016 financial results on September 29, 2016.
- The filing incorporates a press release containing the financial results as Exhibit 99.
- Accenture utilizes several non-GAAP financial measures, including free cash flow, net revenue growth in local currency, and adjusted EPS.
- Free cash flow is defined as operating cash flow net of property and equipment additions.
- Net revenue percentage changes are presented on a local currency basis, excluding foreign currency exchange rate fluctuations.
- Adjusted EPS, operating income, operating margin, net income, and effective tax rate exclude non-cash pension charges and gains from business divestitures (Navitaire and Duck Creek).
- The company states that these non-GAAP measures provide meaningful additional information about liquidity and operational performance, but are supplementary to GAAP.
03—Questions
Frequently Asked Questions
What are the key non-GAAP financial measures Accenture is reporting?
Accenture is reporting free cash flow, net revenue growth on a local currency basis (excluding foreign exchange impacts), and adjusted diluted earnings per share, operating income, operating margin, net income, and effective tax rate. These adjusted figures exclude specific items like non-cash pension charges and gains from divestitures.
Why does Accenture use non-GAAP financial measures?
Accenture's management believes these non-GAAP measures provide meaningful additional information regarding the company's liquidity and operational performance. They are used to facilitate a better understanding of underlying business trends by excluding the effects of foreign currency fluctuations and significant one-time events such as pension settlements and business divestitures.
Where can I find the detailed financial results?
The detailed financial results are provided in the news release attached as Exhibit 99 to this 8-K filing. While this 8-K filing itself announces the results and discusses the non-GAAP metrics, the full press release contains the comprehensive financial data.
Should I rely solely on the non-GAAP financial information presented?
No, Accenture's management emphasizes that these non-GAAP financial measures are supplemental in nature and should not be considered a substitute for the related financial information prepared in accordance with Generally Accepted Accounting Principles (GAAP). Investors should review both GAAP and non-GAAP figures for a complete understanding.
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