| (in millions of euro) | AUGUST 31, 2020 | AUGUST 31, 2019 |
|---|---|---|
| Performance bonds given to Sodexo Group clients | Performance bonds given to Sodexo Group clientsAUGUST 31, 20201,614 | Performance bonds given to Sodexo Group clientsAUGUST 31, 20191,606 |
| Financial guarantees to third parties | Financial guarantees to third partiesAUGUST 31, 20205,056 | Financial guarantees to third partiesAUGUST 31, 20195,598 |
| Retirement benefit commitments | Retirement benefit commitmentsAUGUST 31, 202012 | Retirement benefit commitmentsAUGUST 31, 201913 |
| Other commitments | Other commitmentsAUGUST 31, 2020139 | Other commitmentsAUGUST 31, 2019137 |
| TOTAL | TOTALAUGUST 31, 20206,821 | TOTALAUGUST 31, 20197,354 |
Financial guarantees to third parties concern (i) guarantees for loans granted to Sodexo S.A. subsidiaries, (ii) guarantees related to reverse factoring programs set up by Sodexo S.A. subsidiaries, capped at 580 million euro (of which 77 million euro was guaranteed as of August 31, 2020), and (iii) a 1,925 million euro guarantee given during the year for a commercial paper program.
The leases for the Group’s corporate headquarters in Issy-les-Moulineaux increased commitments for office leases by 20 million euro.
Other commitments notably include the guarantee issued by Sodexo S.A. in October 2012 to cover Sodexo UK’s retirement plan obligation in the United Kingdom (i.e., until October 2024). This guarantee was issued to the plan trustee for a maximum 100 million pounds sterling with a 12-year term.
| (in millions of euro) | AUGUST 31, 2020 | AUGUST 31, 2019 |
|---|---|---|
| Commitments received | Commitments receivedAUGUST 31, 20202,400 | Commitments receivedAUGUST 31, 20192,950 |
Commitments received mainly correspond to counter-guarantees by Sodexo, Inc. of Sodexo S.A.’s financial borrowings, which decreased due to the reimbursement of the borrowings during the year.
The ongoing commitments as of the end of the year were as follows:
| DESCRIPTION | INCEPTION DATE | EXPIRATION DATE | NOMINAL AMOUNT | MARKET VALUE AS OF AUGUST 31, 2020 |
|---|---|---|---|---|
| Forward currency purchase | Forward currency purchaseINCEPTION DATEApril 2011 June 2019 | Forward currency purchaseEXPIRATION DATEApril 2021 June 2028 | Forward currency purchaseNOMINAL AMOUNTUSD 633 million GBP 250 million | Forward currency purchaseMARKET VALUE AS OF AUGUST 31, 2020EUR 92 million EUR 11 million |
| Swap hedging the currency and interest rate risk on a loan to Sodexo do Brasil Comercial SA | Swap hedging the currency and interest rate risk on a loan to Sodexo do Brasil Comercial SAINCEPTION DATEMay 2020 | Swap hedging the currency and interest rate risk on a loan to Sodexo do Brasil Comercial SAEXPIRATION DATENovember 2020 | Swap hedging the currency and interest rate risk on a loan to Sodexo do Brasil Comercial SANOMINAL AMOUNTBRL 80 million | Swap hedging the currency and interest rate risk on a loan to Sodexo do Brasil Comercial SAMARKET VALUE AS OF AUGUST 31, 2020EUR 1 million |
Sodexo may use derivative financial instruments in order to hedge its exposure to volatility in interest and currency exchange rates.
