| (in million euros) | AUGUST 31, 2023 | AUGUST 31, 2022 |
|---|---|---|
| Commitments received | Commitments received AUGUST 31, 2023 1,600 |
Commitments received AUGUST 31, 2022 1,600 |
Commitments received correspond to counter-guarantees by Sodexo, Inc. of Sodexo S.A.’s financial borrowings.
The ongoing commitments as of the end of the year were as follows:
| DESCRIPTION | INCEPTION DATE | EXPIRATION DATE | NOMINAL AMOUNT | MARKET VALUE AS OF AUGUST 31, 2023 |
|---|---|---|---|---|
| Forward currency purchase | Forward currency purchase INCEPTION DATE June 2019 |
Forward currency purchase EXPIRATION DATE June 2028 |
Forward currency purchase NOMINAL AMOUNT £250 million |
Forward currency purchase MARKET VALUE AS OF AUGUST 31, 2023€12 million |
Sodexo S.A. may use derivative financial instruments in order to hedge its exposure to volatility in interest and currency exchange rates.
| INCREASES (in million euros) | |
|---|---|
| Exceptional amortization | Exceptional amortization
16 |
| DECREASES (in million euros) | |
|---|---|
| Employee profit-sharing | Employee profit-sharing
— |
| Other non-deductible provisions | Other non-deductible provisions
5 |
The future tax asset related to this unrealized tax difference was 3 million euros, calculated at a rate of 25.83%.
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 4 million euros as of August 31, 2023, including impact of IFRIC decision from May 2021.
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 1 million euros as of August 31, 2023, are not recognized in the financial statements.
The new retirement plan implemented in Fiscal 2021 is not subject to any provision in the balance sheet apart from the insurance premium to be paid and does not generate an off-balance sheet commitment, the pensions being paid directly by the insurer.
Directors’ fees paid to Board members during the fiscal year represented less than 1 million euros (refer to section 7.4.3 of the Universal Registration Document).
