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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

 
FORM 10-Q
 
(Mark One)
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended November 30, 2002
 
OR
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission File Number: 000-49713
 

 
ACCENTURE SCA
(Exact name of Registrant as specified in its charter)
 
Luxembourg
 
98-0351796
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
1 rue Guillaume Kroll
L – 1882 Luxembourg
(Address of principal executive offices)
 
(352) 26 42 34 80
(Registrant’s telephone number, including area code)
 

 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    x    No    ¨
 
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.)    Yes    ¨    No    x
 
The number of shares of the Registrant’s Class I common shares, par value €1.25 per share, outstanding as of December 30, 2002 was 903,036,714 (which number does not include 55,508,905 issued shares held by subsidiaries of the Registrant).
 


ACCENTURE SCA
 
INDEX
 
    
Page

Part I.    Financial Information
    
Item 1.    Financial Statements (unaudited)
    
  
3
  
4
  
5
  
6
  
7
  
10
  
22
  
23
Part II.    Other Information
    
  
24
  
24
  
24
  
26

2


PART I—FINANCIAL INFORMATION
 
ITEM 1.    FINANCIAL STATEMENTS
 
ACCENTURE SCA
 
CONSOLIDATED BALANCE SHEETS
August 31, 2002 and November 30, 2002
(In thousands of U.S. dollars, except share amounts)
 
    
August 31, 2002

    
November 30,
2002

 
           
(Unaudited)
 
ASSETS
                 
CURRENT ASSETS:
                 
Cash and cash equivalents
  
$
1,316,976
 
  
$
1,473,643
 
Restricted cash
  
 
79,445
 
  
 
14,656
 
Receivables from clients, net
  
 
1,330,642
 
  
 
1,377,302
 
Unbilled services
  
 
774,214
 
  
 
905,921
 
Due from related parties
  
 
39,488
 
  
 
7,572
 
Deferred income taxes, net
  
 
189,976
 
  
 
185,549
 
Other current assets
  
 
330,347
 
  
 
310,508
 
    


  


Total current assets
  
 
4,061,088
 
  
 
4,275,151
 
    


  


NON-CURRENT ASSETS:
                 
Unbilled services
  
 
106,162
 
  
 
131,459
 
Investments
  
 
76,017
 
  
 
46,874
 
Property and equipment, net
  
 
716,504
 
  
 
658,122
 
Goodwill
  
 
167,603
 
  
 
169,328
 
Deferred income taxes, net
  
 
283,969
 
  
 
299,063
 
Other non-current assets
  
 
67,605
 
  
 
68,019
 
    


  


Total non-current assets
  
 
1,417,860
 
  
 
1,372,865
 
    


  


TOTAL ASSETS
  
$
5,478,948
 
  
$
5,648,016
 
    


  


LIABILITIES AND SHAREHOLDERS’ EQUITY
                 
CURRENT LIABILITIES:
                 
Short-term bank borrowings
  
$
57,922
 
  
$
55,326
 
Current portion of long-term debt
  
 
5,177
 
  
 
2,141
 
Accounts payable
  
 
450,208
 
  
 
378,815
 
Deferred revenue
  
 
543,917
 
  
 
538,634
 
Accrued payroll and related benefits
  
 
1,139,887
 
  
 
1,072,633
 
Income taxes payable
  
 
459,836
 
  
 
677,679
 
Deferred income taxes, net
  
 
18,884
 
  
 
18,741
 
Other accrued liabilities
  
 
651,231
 
  
 
454,552
 
    


  


Total current liabilities
  
 
3,327,062
 
  
 
3,198,521
 
    


  


NON-CURRENT LIABILITIES:
                 
Long-term debt
  
 
3,428
 
  
 
4,215
 
Retirement obligation
  
 
382,180
 
  
 
397,723
 
Deferred income taxes, net
  
 
16,674
 
  
 
16,556
 
Other non-current liabilities
  
 
791,582
 
  
 
774,443
 
    


  


Total non-current liabilities
  
 
1,193,864
 
  
 
1,192,937
 
    


  


MINORITY INTEREST
  
 
31,972
 
  
 
32,251
 
    


  


SHAREHOLDERS’ EQUITY:
                 
Class I common shares, par value 1.25 euros per share, 19,868,950,000 shares authorized, 753,843,192 issued as of August 31, 2002 and November 30, 2002, respectively
  
 
845,307
 
  
 
845,307
 
Class I-A common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
  
 
5,435
 
  
 
5,435
 
Class I-B common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
  
 
5,435
 
  
 
5,435
 
Class I-C common shares, par value 1.25 euros per share, 10,000,000 shares authorized, issued and outstanding
  
 
10,870
 
  
 
10,870
 
Class I-D common shares, par value 1.25 euros per share, 10,000,000 shares authorized, issued and outstanding
  
 
10,870
 
  
 
10,870
 
Class I-E common shares, par value 1.25 euros per share, 15,000,000 shares authorized, issued and outstanding
  
 
16,304
 
  
 
16,304
 
Class I-F common shares, par value 1.25 euros per share, 15,000,000 shares authorized, issued and outstanding
  
 
16,304
 
  
 
16,304
 
Class I-G common shares, par value 1.25 euros per share, 20,000,000 shares authorized, issued and outstanding
  
 
21,739
 
  
 
21,739
 
Class I-H common shares, par value 1.25 euros per share, 25,000,000 shares authorized, issued and outstanding
  
 
27,174
 
  
 
27,174
 
Class I-I common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
  
 
5,435
 
  
 
5,435
 
Class I-J common shares, par value 1.25 euros per share, 5,000,000 shares authorized, issued and outstanding
  
 
5,435
 
  
 
5,435
 
Class I-K common shares, par value 1.25 euros per share, 16,050,000 shares authorized, issued and outstanding
  
 
18,074
 
  
 
18,074
 
Class I-L common shares, par value 1.25 euros per share, 5,025,720, shares authorized, issued and outstanding
  
 
5,540
 
  
 
5,540
 
Class I-M common shares, par value 1.25 euros per share, 68,626,707, shares authorized, issued and outstanding
  
 
78,398
 
  
 
78,398
 
Class II common shares, par value 1.25 euros per share, 20,000,000,000 shares authorized, 470,958,308 shares issued and outstanding
  
 
529,281
 
  
 
529,281
 
Restricted share units related to Class A common shares, 58,265,829 units issued and outstanding as of August 31, 2002 and 58,174,671 units issued and outstanding as of November 30, 2002
  
 
848,218
 
  
 
846,810
 
Additional paid-in capital
  
 
2,944,678
 
  
 
2,882,767
 
Treasury shares, at cost, 54,682,475 and 47,996,832 shares at August 31, 2002 and November 30, 2002, respectively
  
 
(1,052,900
)
  
 
(927,181
)
Investment in Accenture Ltd shares, at cost, 13,726,885 and 12,624,992 shares at August 31, 2002 and November 30, 2002, respectively
  
 
(315,486
)
  
 
(286,168
)
Accenture Ltd shares owned by Share Employee Compensation Trust, at cost, 12,562,300 and 16,611,600 shares at August 31, 2002 and November 30, 2002, respectively
  
 
(221,110
)
  
 
(285,976
)
Retained deficit
  
 
(2,798,519
)
  
 
(2,529,694
)
Accumulated other comprehensive loss
  
 
(80,432
)
  
 
(77,852
)
    


  


Total shareholders’ equity
  
 
926,050
 
  
 
1,224,307
 
    


  


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  
$
5,478,948
 
  
$
5,648,016
 
    


  


 
The accompanying notes are an integral part of these financial statements.

3


 
ACCENTURE SCA
 
CONSOLIDATED INCOME STATEMENTS
 
For the Three Months Ended November 30, 2001 and 2002
(In thousands of U.S. dollars)
(Unaudited)
 
    
2001

    
2002

 
REVENUES:
                 
Revenues before reimbursements
  
$
2,988,630
 
  
$
2,929,958
 
Reimbursements
  
 
352,692
 
  
 
397,489
 
    


  


Revenues
  
 
3,341,322
 
  
 
3,327,447
 
OPERATING EXPENSES:
                 
Cost of services:
                 
Cost of services before reimbursable expenses
  
 
1,806,181
 
  
 
1,774,197
 
Reimbursable expenses
  
 
352,692
 
  
 
397,489
 
    


  


Cost of services
  
 
2,158,873
 
  
 
2,171,686
 
Sales and marketing
  
 
360,235
 
  
 
355,833
 
General and administrative costs
  
 
407,957
 
  
 
370,731
 
    


  


Total operating expenses
  
 
2,927,065
 
  
 
2,898,250
 
    


  


OPERATING INCOME
  
 
414,257
 
  
 
429,197
 
Gain (loss) on investments, net
  
 
(94,737
)
  
 
3,805
 
Interest income
  
 
14,785
 
  
 
9,093
 
Interest expense
  
 
(9,770
)
  
 
(6,536
)
Other income (expense)
  
 
(7,933
)
  
 
(1,775
)
Equity in gains (losses) of affiliates
  
 
6,201
 
  
 
(530
)
    


  


INCOME BEFORE TAXES
  
 
322,803
 
  
 
433,254
 
Provision for taxes
  
 
122,665
 
  
 
164,637
 
    


  


INCOME BEFORE MINORITY INTEREST
  
 
200,138
 
  
 
268,617
 
Minority interest
  
 
(1,621
)
  
 
(1,499
)
    


  


NET INCOME
  
$
198,517
 
  
$
267,118
 
    


  


 
 
The accompanying notes are an integral part of these financial statements.

4


ACCENTURE SCA
 
CONSOLIDATED SHAREHOLDERS’ EQUITY STATEMENT
 
For the Three Months Ended November 30, 2002
(U.S. dollars and share amounts in thousands)
(Unaudited)
 
   
Class I
Common Shares

 
Class II
Common Shares

 
Restricted
Share Units
Common Shares

   
Additional
Paid-in Capital

   
Treasury Shares

   
Investment
in
Accenture Ltd

   
Investment
in
Accenture Ltd—  SECT

   
Retained Earnings (Deficit)

    
Accumulated
Other
Comprehensive
Income (Loss)

   
Total

 
   
$

 
No. Shares

 
$

 
No. Shares

 
$

   
No. Shares

     
$

   
No. Shares

   
$