Group subsidiaries can also be subject to tax audits certain of which may result in reassessments. In each case, the risk is assessed by management and its advisors and any charges deemed probable are recorded as provisions or tax liabilities.
The Group is not aware of any other governmental, judicial or arbitral proceedings which are outstanding or threatened and which may have, or have had in the past 12 months, material effects on the Group’s financial position or profitability.
Sodexo is also involved in other legal proceedings arising in the normal course of its business. The Group does not anticipate that any potential related liabilities will in the aggregate be material to its activities or to its consolidated financial position.
Sodexo shares held by Sodexo S.A. itself and/or by other Group companies are shown as a reduction in consolidated shareholders’equity at their acquisition cost.
Gains and losses on acquisitions and disposals of treasury shares are recognized directly in consolidated shareholders’ equity and do not affect profit or loss for the year.
As required by IAS 32 “Financial instruments: Presentation”, Sodexo recognizes commitments to purchase non-controlling interests as a liability within borrowings in the consolidated statement of financial position. Commitments to purchase non-controlling interests given in connection with business combinations are recognized as follows:
Earnings per share is calculated by dividing profit for the period by the weighted average number of ordinary shares outstanding during the period, net of treasury shares.
In the calculation of diluted earnings per share, the denominator is increased by the number of potentially dilutive shares, and the numerator is adjusted for all dividends and interest recognized in the period and any other change in income or expenses that would result from conversion of the potentially dilutive shares.
Potential ordinary shares are treated as dilutive if and only if their conversion to shares would decrease earnings per share or increase loss per share.
| (number of shares) | AUGUST 31, 2021 | AUGUST 31, 2020 |
|---|---|---|
| Share Capital(1) | Share Capital (1)AUGUST 31, 2021147,454,887 |
Share Capital (1)AUGUST 31, 2020147,454,887 |
| Treasury shares(2) | Treasury shares (2)AUGUST 31, 20211,166,593 |
Treasury shares (2)AUGUST 31, 20201,442,351 |
| Outstanding shares | Outstanding shares AUGUST 31, 2021146,288,294 |
Outstanding shares AUGUST 31, 2020146,012,536 |
(1) With a par value of 4 euro each.
(2) Treasury shares value of 108 million euro as of August 31, 2021 (138 million euro as of August 31, 2020 ).
