Back to GetFilings.com



Table of Contents

 
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: 001-16565
 

 
ACCENTURE LTD
(Exact name of Registrant as specified in its charter)
 
Bermuda
 
98-0341111
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
Cedar House
41 Cedar Avenue
Hamilton HM12, Bermuda
(Address of principal executive offices)
 
(441) 296-8262
(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  x    No  ¨
 
The number of shares of the Registrant’s Class A common shares, par value $0.0000225 per share, outstanding as of December 30, 2002 was 411,222,314 (which number does not include 29,282,034 issued shares held by subsidiaries of the Registrant). The number of shares of the Registrant’s Class X common shares, par value $0.0000225 per share, outstanding as of December 30, 2002 was 516,465,359.
 


Table of Contents
ACCENTURE LTD
 
INDEX
 
         
Page

Part I.
       
Item 1.
       
       
3
       
4
       
5
       
6
       
7
Item 2.
     
11
Item 3.
     
23
Item 4.
     
24
Part II.
       
Item 1.
     
25
Item 6.
     
25
  
26
 

2


Table of Contents
PART I—FINANCIAL INFORMATION
 
ITEM 1.    FINANCIAL STATEMENTS
 
ACCENTURE LTD
 
CONSOLIDATED BALANCE SHEETS
 
August 31, 2002 and November 30, 2002
(In thousands of U.S. dollars, except share and per 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
  
 
519,396
 
  
 
673,998
 
    


  


SHAREHOLDERS’ EQUITY:
                 
Preferred shares, 2,000,000,000 shares authorized, 0 shares issued and outstanding
  
 
—  
 
  
 
—  
 
Class A common shares, par value $0.0000225 per share, 20,000,000,000 shares authorized, 433,695,621 issued as of August 31, 2002 and 440,237,875 issued as of November 30, 2002
  
 
10
 
  
 
10
 
Class X common shares, par value $0.0000225 per share, 1,000,000,000 shares authorized, 524,094,456 shares issued and outstanding as of August 31, 2002 and November 30, 2002
  
 
13
 
  
 
13
 
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
  
 
1,397,828
 
  
 
1,447,560
 
Treasury shares, at cost, 13,726,885 and 12,624,992 shares at August 31, 2002 and November 30, 2002, respectively
  
 
(315,486
)
  
 
(286,168
)
Treasury shares owned by Accenture Ltd 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
  
 
(1,190,415
)
  
 
(1,061,837
)
Accumulated other comprehensive loss
  
 
(80,432
)
  
 
(77,852
)
    


  


Total shareholders’ equity
  
 
438,626
 
  
 
582,560
 
    


  


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


  


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

3


Table of Contents
ACCENTURE LTD
 
CONSOLIDATED INCOME STATEMENTS
 
For the Three Months Ended November 30, 2001 and 2002
(In thousands of U.S. dollars, except share and per share amounts)
(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
  
 
(118,462
)
  
 
(141,746
)
    


  


NET INCOME
  
$
81,676
 
  
$
126,871
 
    


  


Weighted Average Class A Common Shares:
                 
Basic
  
 
410,488,771
 
  
 
468,119,491
 
Diluted
  
 
1,014,448,500
 
  
 
1,000,572,365
 
Earnings Per Class A Common Share:
                 
Basic
  
$
0.20
 
  
$
0.27
 
Diluted
  
$
0.20
 
  
$
0.27
 
 
 
The accompanying notes are an integral part of these financial statements.

4


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

 
Class X
Common Shares

 
Restricted
Share Units
Common Shares

   
Additional
Paid-in
Capital

   
Treasury
Shares

   
Treasury
Shares—
SECT

   
Reatined Earnings (Deficit)

   
Accumulated
Other
Compre-
hensive Income
(Loss)

       
   
Preferred
shares

 
$

 
No. Shares

 
$

 
No. Shares

 
$

   
No. Shares

     
$

   
No. Shares

   
$

   
No. Shares

       
Total

 
Balance at August 31, 2002
 
$
 —  
 
$
10
 
433,696
 
$
13
 
524,094
 
$
848,218
 
 
58,266
 
 
$
1,397,828
 
 
$
(315,486
)
 
(13,727
)
 
$
(221,110
)
 
(12,562
)
 
$
(1,190,415
)
 
$
(80,432
)
 
$
438,626
 
Comprehensive income