Fiscal 2021 Universal Registration Document

6.3.3 Net book value of property, plant and equipment

(in millions of euro)	BUILDINGS	PLANT AND EQUIPMENT	CONSTRUCTION IN PROGRESS AND OTHER	TOTAL
Net carrying amount as of August 31, 2019	Net carrying amount as of August 31, 2019 BUILDINGS 68	Net carrying amount as of August 31, 2019 PLANT AND EQUIPMENT 535	Net carrying amount as of August 31, 2019 CONSTRUCTION IN PROGRESS AND OTHER 81	Net carrying amount as of August 31, 2019 TOTAL 684
Net carrying amount as of August 31, 2020	Net carrying amount as of August 31, 2020 BUILDINGS 49	Net carrying amount as of August 31, 2020 PLANT AND EQUIPMENT 446	Net carrying amount as of August 31, 2020 CONSTRUCTION IN PROGRESS AND OTHER 72	Net carrying amount as of August 31, 2020 TOTAL 566
Net carrying amount as of August 31, 2021	Net carrying amount as of August 31, 2021BUILDINGS19	Net carrying amount as of August 31, 2021PLANT AND EQUIPMENT374	Net carrying amount as of August 31, 2021CONSTRUCTION IN PROGRESS AND OTHER68	Net carrying amount as of August 31, 2021TOTAL461

6.4 Impairment of non-current assets

ACCOUNTING PRINCIPLES AND POLICIES

Impairment of assets with finite useful lives

Property, plant and equipment and intangible assets with finite useful lives are tested for impairment if there is any indication of impairment. Impairment charges are recognized in the income statement, and may be reversed subsequently.

Impairment of assets with indefinite useful lives

Goodwill and other intangible assets considered to have an indefinite useful life (such as certain trademarks) are tested for impairment whenever there is an indication of impairment, and at least annually, in the last quarter of the fiscal year. The results of the impairment tests are then confirmed using actual data as of August 31.

Cash Generating Units

Assets that do not generate cash inflows that are largely independent of those from other assets, and hence cannot be tested for impairment individually, are grouped together in Cash Generating Units (CGUs).

Impairment tests are performed at the level of the CGU or group of CGUs corresponding to the lowest level at which goodwill is monitored by the Group.

Goodwill is generally analyzed per operating segment, as reflected in the Group’s organizational structure (see note 4.1):

On-site Services activity:
- Business & Administrations, which includes Corporate Services, Energy & Resources, Government & Agencies, Sports & Leisure and other non-segmented,
- Healthcare, combined with Seniors,
- Education, comprising Schools and Universities;
the benefits & Rewards Services activity corresponds to a single CGU.

Goodwill is not tested for impairment at a higher level than the operating segments before aggregation for segment reporting.

The assets allocated to each CGU or group of CGUs comprise:

goodwill, which is allocated when the CGU or group of CGUs is likely to benefit from the business combination;
other intangible assets, property, plant and equipment, client investments and net working capital.

Indications of impairment

The main indicators that a CGU or group of CGU’s may be impaired are a significant decrease in the CGU’s or group of CGUs’ revenues and underlying operating profit or material changes in market trends.