The Company does not have the ability to account for these multiemployer plans as defined benefit plans because it does not have timely access to information about plan assets, plan obligations, actuarial gains and losses, service costs, and interest costs. As such, the multiemployer plans are accounted for as defined contribution plans.
The Company contributed 12 million euro to U.S. multiemployer defined benefit plans in Fiscal 2021 and 8 million euro in Fiscal 2020. Of the contributions made by the Company, 34% and 14% were made to plans considered to be in “critical” status or “endangered” status, respectively, as defined by the U.S. Pension Protection Act of 2006 and per each plan’s most-recent notice of plan funding status. Plans are generally considered to be in “critical” status when they are funded at less than 65%, among other factors, and are considered to be “endangered” when they are funded at 65% or more, but at less than 80%, among other factors.
Other employee benefits, for an amount of 186 million euro as of August 31, 2021 (150 million euro as of August 31, 2020 ), mainly comprise a liability related to a deferred compensation program in the United States and obligations relating to long-service awards.
The total expense recognized with respect to these benefits in Fiscal 2021 was 6 million euro (16 million euro in Fiscal 2020 ).
Some Group employees receive compensation in the form of share-based payments, for which payment is made in equity instruments.
The services compensated by these plans are recognized as an expense, with the offset recognized in shareholders’ equity, over the vesting period. The amount of expense recognized in each period is determined by reference to the fair value of the equity instruments granted, as of the grant date.
The fair value of restricted shares is estimated at the date of grant based on the share price at that date aft er deductions for dividends on the shares that will not be paid to beneficiaries during the vesting period. The fair value of restricted shares subject to a performance condition based on Total Shareholder Return is estimated using a binomial model that takes into account the vesting conditions.
Each year, Sodexo reassesses the number of shares that is likely to be delivered to beneficiaries of restricted shares based on the applicable vesting conditions. The impact of any change in estimates is recognized in the income statement, with the offset recognized in shareholders’ equity.
Rules governing restricted share plans are as follows:
The performance conditions other than those related to stock market performance (“non-market performance conditions”) were as follows:
