| (in million euros) | AUGUST 31, 2024 | AUGUST 31, 2023 |
|---|---|---|
| Performance bonds given to Sodexo Group clients | Performance bonds given to Sodexo Group clients AUGUST 31, 20242,200 |
Performance bonds given to Sodexo Group clients AUGUST 31, 20232,461 |
| Financial guarantees to third parties | Financial guarantees to third parties AUGUST 31, 20246,080 |
Financial guarantees to third parties AUGUST 31, 20235,944 |
| Retirement benefit commitments | Retirement benefit commitments AUGUST 31, 20245 |
Retirement benefit commitments AUGUST 31, 20234 |
| Other commitments | Other commitments AUGUST 31, 202456 |
Other commitments AUGUST 31, 202355 |
| TOTAL | TOTALAUGUST 31, 20248,341 | TOTALAUGUST 31, 20238,464 |
Financial guarantees to third parties concern:
The leases for the Group’s corporate headquarters in Issy-les-Moulineaux represent commitments for office leases for 11 million euros.
The “Other commitments” line mainly includes the 10-year guarantee given by Sodexo S.A. in December 2021 to the Trustee of the UK pension plan (i.e., until December 2031), for a maximum of 40 million pounds Sterling as of August 31, 2024, in order to cover Sodexo UK’s obligations in connection with the plan.
| (in million euros) | AUGUST 31, 2024 | AUGUST 31, 2023 |
|---|---|---|
| Commitments received | Commitments received AUGUST 31, 20241,300 |
Commitments received AUGUST 31, 2023
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 (in million euros) | INCEPTION DATE | EXPIRATION DATE | NOMINAL AMOUNT | MARKET VALUE AS OF AUGUST 31, 2024 |
|---|---|---|---|---|
| Forward currency purchase | Forward currency purchase INCEPTION DATEJune 2019 |
Forward currency purchase EXPIRATION DATEJune 2028 |
Forward currency purchase NOMINAL AMOUNT£250 million |
Forward currency purchase MARKET VALUE AS OF AUGUST 31, 2024€26 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
1 |
| Other non-deductible provisions | Other non-deductible provisions
1 |
The future tax asset related to this unrealized tax difference was 4 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, 2024, including impact of IFRIC decision from May 2021.
