Universal Registration Document Fiscal 2025

Note 7. Leases

NOTE 7. LEASES

ACCOUNTING POLICIES

The Group determines whether a contract is or contains a lease at inception of the contract. The Group classifies as a lease a contract that conveys to the Group the right to control the use of an identified asset for a given period of time.

Leases are recognized in the statement of financial position at the commencement date of the contract, except for leases covered by one of the two exemptions allowed by IFRS 16 “Leases” (short-term leases or leases of low-value assets), adopted by the Group.

Leases are reflected in the statement of financial position by recognizing an asset representing the right to use the leased asset and a related liability corresponding to the obligation to make future lease payments. In the income statement, a depreciation expense for the right-of-use assets is recorded separately from the interest expense on lease liabilities. In the cash flow statement, cash outflows relating to interest on lease liabilities impact operating activity flows, while repayment of the lease liabilities impacts financing activity flows.

Short-term leases (i.e. lease terms of 12 months or less) and leases of low-value assets (such as certain IT equipment) are recognized directly in operating expenses on a straight-line basis over the lease term.

The leases contracted by the Group as a lessee mainly relate to the following categories of assets:

  • real estate (land and buildings): the Group leases land and buildings for its offices. Terms and conditions are negotiated on a case-by-case basis and contain numerous different clauses, depending on the legal environment specific to each country. These leases are entered into for terms of 1 to 20 years and may contain extension options;
  • sites and spaces operated as part of concession arrangements: the Group operates various sites (restaurants, retail spaces and kitchens) made available pursuant to concession agreements. The fees paid in that respect are based on the performance of the location (variable payments, generally based on revenues) and may contain a minimum guaranteed fee. Terms and conditions are negotiated on a case-by-case basis and contain numerous different clauses. These leases are entered into for terms of 1 to 18 years and may contain extension options;
  • vehicles: the Group leases vehicles for some of its employees. These leases are entered into for terms of 1 to 5 years;
  • equipment: the Group also leases some equipment necessary for its operations (kitchen equipment, vending machines, etc.). Terms and conditions are negotiated on a case-by-case basis and contain numerous different clauses. These leases are entered into for terms of 1 to 5 years.