Property, plant and equipment are measured at cost less accumulated depreciation and impairment charges, except for land, which is measured at cost less accumulated impairment charges. Cost includes expenditures directly incurred to acquire the asset, and in some cases may also include estimated unavoidable future dismantling, removal and site remediation costs.
Subsequent expenditures are included in the carrying amount of the asset, or recognized as a separate component, if it is probable that the future economic benefits of the expenditures will flow to Sodexo and the cost can be measured reliably. All other repair and maintenance costs are recognized as expenses during the period in which they are incurred, except costs incurred to improve productivity or extend the useful life of an asset, which are capitalized.
Items of property, plant and equipment are depreciated over their expected useful lives using the component-based approach, taking account of their residual value. The straight-line method of depreciation is regarded as the method that most closely reflects the expected pattern of consumption of the future economic benefits embodied in items of property, plant and equipment.
The useful lives generally used by the Group are:
| Buildings | 20-30 years |
|---|---|
| General fixtures and fittings | 3-10 years |
| Plant and machinery | 3-8 years |
| Motor vehicles | 4 years |
| Boats and pontoons (depending on the component) | 5-15 years |
The residual values and useful lives of items of property, plant and equipment are reviewed at each period end and, if necessary, adjusted.
The carrying amounts of items of property, plant and equipment are tested for impairment if there is an indication that an item may be subject to impairment.
| (in million euros) | LAND AND BUILDINGS | PLANT AND EQUIPMENT | CONSTRUCTION IN PROGRESS AND OTHER | TOTAL |
|---|---|---|---|---|
| Gross value as of August 31, 2021 | Gross value as of August 31, 2021 LAND AND BUILDINGS 73 |
Gross value as of August 31, 2021 PLANT AND EQUIPMENT 1,730 |
Gross value as of August 31, 2021 CONSTRUCTION IN PROGRESS AND OTHER 217 |
Gross value as of August 31, 2021 TOTAL 2,020 |
| Acquisitions | Acquisitions LAND AND BUILDINGS 4 |
Acquisitions PLANT AND EQUIPMENT 147 |
Acquisitions CONSTRUCTION IN PROGRESS AND OTHER 46 |
Acquisitions TOTAL 197 |
| Disposals | Disposals LAND AND BUILDINGS (4) |
Disposals PLANT AND EQUIPMENT (83) |
Disposals CONSTRUCTION IN PROGRESS AND OTHER (20) |
Disposals TOTAL (107) |
| Currency translation adjustment | Currency translation adjustment LAND AND BUILDINGS 2 |
Currency translation adjustment PLANT AND EQUIPMENT 90 |
Currency translation adjustment CONSTRUCTION IN PROGRESS AND OTHER 12 |
Currency translation adjustment TOTAL 104 |
| Reclassifications | Reclassifications LAND AND BUILDINGS 6 |
Reclassifications PLANT AND EQUIPMENT 3 |
Reclassifications CONSTRUCTION IN PROGRESS AND OTHER (19) |
Reclassifications TOTAL (10) |
| Change in scope of consolidation | Change in scope of consolidation LAND AND BUILDINGS (6) |
Change in scope of consolidation PLANT AND EQUIPMENT (40) |
Change in scope of consolidation CONSTRUCTION IN PROGRESS AND OTHER 2 |
Change in scope of consolidation TOTAL (44) |
| Other | Other LAND AND BUILDINGS — |
Other PLANT AND EQUIPMENT — |
Other CONSTRUCTION IN PROGRESS AND OTHER — |
Other TOTAL — |
| Gross value as of August 31, 2022 | Gross value as of August 31, 2022 LAND AND BUILDINGS 75 |
Gross value as of August 31, 2022 PLANT AND EQUIPMENT 1,847 |
Gross value as of August 31, 2022 CONSTRUCTION IN PROGRESS AND OTHER 238 |
Gross value as of August 31, 2022 TOTAL 2,159 |
| Acquisitions | Acquisitions LAND AND BUILDINGS 3 |
Acquisitions PLANT AND EQUIPMENT 188 |
Acquisitions CONSTRUCTION IN PROGRESS AND OTHER 50 |
Acquisitions TOTAL 241 |
| Disposals | Disposals LAND AND BUILDINGS (1) |
Disposals PLANT AND EQUIPMENT (164) |
Disposals CONSTRUCTION IN PROGRESS AND OTHER (17) |
Disposals TOTAL (182) |
| Currency translation adjustment | Currency translation adjustment LAND AND BUILDINGS (3) |
Currency translation adjustment PLANT AND EQUIPMENT (72) |
Currency translation adjustment CONSTRUCTION IN PROGRESS AND OTHER (7) |
Currency translation adjustment TOTAL (81) |
| Reclassifications in assets held for sale or for distribution(1) | Reclassifications in assets held for sale or for distribution (1)LAND AND BUILDINGS (6) |
Reclassifications in assets held for sale or for distribution (1)PLANT AND EQUIPMENT (60) |
Reclassifications in assets held for sale or for distribution (1)CONSTRUCTION IN PROGRESS AND OTHER (1) |
Reclassifications in assets held for sale or for distribution (1)TOTAL (67) |
| Change in scope of consolidation | Change in scope of consolidation LAND AND BUILDINGS — |
Change in scope of consolidation PLANT AND EQUIPMENT — |
Change in scope of consolidation CONSTRUCTION IN PROGRESS AND OTHER 1 |
Change in scope of consolidation TOTAL 1 |
| Other reclassifications | Other reclassifications LAND AND BUILDINGS — |
Other reclassifications PLANT AND EQUIPMENT (1) |
Other reclassifications CONSTRUCTION IN PROGRESS AND OTHER (37) |
Other reclassifications TOTAL (38) |
| Gross value as of August 31, 2023 | Gross value as of August 31, 2023 LAND AND BUILDINGS 68 |
Gross value as of August 31, 2023 PLANT AND EQUIPMENT 1,738 |
Gross value as of August 31, 2023 CONSTRUCTION IN PROGRESS AND OTHER 227 |
Gross value as of August 31, 2023 TOTAL 2,033 |
(1) The reclassifications made during the period mainly correspond to the reclassification of Benefits & Rewards Services activity (Pluxee) property, plant and equipment in assets held for sale or for distribution (see note 3.2).
No item of property, plant and equipment is pledged as collateral for a liability.
