Fiscal 2020 Universal Registration Document

4. Information on the issuer

19. MAIN ADJUSTMENTS TO THE FUTURE TAX BASIS

INCREASES

(in millions of euros)


Exceptional amortizationExceptional amortization
15
DECREASES

(in millions of euros)


Employee profit-sharingEmployee profit-sharing
-
Other non-deductible provisionsOther non-deductible provisions
5

The future tax liability related to this unrealized tax difference was 3 million euro, calculated at a rate of 34.43%.

20. RETIREMENT BENEFIT COMMITMENTS

20.1 Retirement benefits payable by law or under collective agreements

Sodexo S.A. is required to pay benefits to retiring employees on the terms stipulated in a company-wide collective agreement. The amount of the commitment has been calculated on the basis of rights vested at the balance sheet date, taking into account assumptions about final salary, discount rates and employee turnover.

This commitment, which is not recognized as a liability in the balance sheet, was estimated at 8 million euro as of August 31, 2020.

20.2 Commitments related to a supplemental pension plan

Commitments related to a supplemental pension plan were estimated using the projected unit credit method based on final salary and net of funding for the plan. These commitments, amounting to 4 million euro, are not recognized in the financial statements.

21. DIRECTORS’ FEES

Directors’ fees paid to Board members during the fiscal year represented less than 1 million euro (refer to section 5.5.3).

22. FRENCH TAX CONSOLIDATION

22.1 Benefit arising from French tax consolidation

Sodexo S.A. recognized a benefit of 14 million euro from the French tax consolidation for Fiscal 2020. This benefit represents the difference between the aggregate of the tax income and expenses recognized by the French subsidiaries included in the French tax consolidation and the income tax of Sodexo S.A. as lead company in the French tax consolidation.

22.2 Tax losses reclaimable as of August 31, 2020

The amount of potentially reclaimable tax losses from subsidiaries included in the French tax consolidation as of August 31, 2020 was 435 million euro, resulting in a provision of 139 million euro (using a rate of 32.02%).