As of August 31, 2025, the deferred tax assets arising from tax loss carry-forwards amount to 83 million euros (92 million euros as of August 31, 2024). The decrease is mainly due to the use of tax loss carry-forwards over the period. The main countries with tax loss carry-forwards that have given rise to the recognition of deferred tax assets are Brazil, Germany and France (for these countries, the utilization of tax losses has no time limit). The irrecoverability of deferred tax assets on loss carry-forwards was assessed on the basis of a plan for using tax losses within each tax jurisdiction.
Unrecognized deferred tax assets arising from tax loss carry-forwards because their recovery is considered to be uncertain amounted cumulatively to 68 million euros as of August 31, 2025 (145 million euros as of August 31, 2024). The change mainly reflects updated amounts in France following completion of the tax audit.
Temporary differences in employee-related liabilities relate primarily to post-employment benefits.
A provision is recognized if the Group has a legal or constructive obligation at the period-end and it is probable that settlement of the obligation will require an outflow of resources and the amount of the liability can be reliably measured.
Provisions primarily cover commercial, employee-related and tax-related risks and litigation (other than those related to income tax) arising in the course of operating activities, and are measured using assumptions that take account of the most likely outcomes.
Where the effect of the time value of money is material, the amount of the provision is determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments of the time value of money and any risks specific to the liability.
A provision for onerous contracts is established where the unavoidable costs of meeting the obligations under a contract exceed the economic benefits expected to be received under it.
| (in millions of euros) | AUGUST 31, 2024 | INCREASES/ CHARGES | REVERSALS WITH UTILIZATION | REVERSALS WITHOUT UTILIZATION | EXCHANGE DIFFERENCES AND OTHER | AUGUST 31, 2025 |
|---|---|---|---|---|---|---|
|
Contract termination and loss-making contracts |
Contract termination and loss-making contracts AUGUST 31, 202441 |
Contract termination and loss-making contracts INCREASES/ CHARGES 12 |
Contract termination and loss-making contracts REVERSALS WITH UTILIZATION (8) |
Contract termination and loss-making contracts REVERSALS WITHOUT UTILIZATION (5) |
Contract termination and loss-making contracts EXCHANGE DIFFERENCES AND OTHER — |
Contract termination and loss-making contracts AUGUST 31, 202540 |
| Employee claims and litigation | Employee claims and litigation AUGUST 31, 202445 |
Employee claims and litigation INCREASES/ CHARGES 14 |
Employee claims and litigation REVERSALS WITH UTILIZATION (8) |
Employee claims and litigation REVERSALS WITHOUT UTILIZATION (5) |
Employee claims and litigation EXCHANGE DIFFERENCES AND OTHER — |
Employee claims and litigation AUGUST 31, 202546 |
| Tax and social security exposures | Tax and social security exposures AUGUST 31, 202420 |
Tax and social security exposures INCREASES/ CHARGES 3 |
Tax and social security exposures REVERSALS WITH UTILIZATION (1) |
Tax and social security exposures REVERSALS WITHOUT UTILIZATION (8) |
Tax and social security exposures EXCHANGE DIFFERENCES AND OTHER (3) |
Tax and social security exposures AUGUST 31, 202511 |
| Reorganization costs(1) | Reorganization costs (1)AUGUST 31, 202417 |
Reorganization costs (1)INCREASES/ CHARGES 8 |
Reorganization costs (1)REVERSALS WITH UTILIZATION (10) |
Reorganization costs (1)REVERSALS WITHOUT UTILIZATION (3) |
Reorganization costs (1)EXCHANGE DIFFERENCES AND OTHER — |
Reorganization costs (1)AUGUST 31, 202512 |
| Client/supplier claims and litigation | Client/supplier claims and litigation AUGUST 31, 202416 |
Client/supplier claims and litigation INCREASES/ CHARGES 2 |
Client/supplier claims and litigation REVERSALS WITH UTILIZATION (3) |
Client/supplier claims and litigation REVERSALS WITHOUT UTILIZATION (2) |
Client/supplier claims and litigation EXCHANGE DIFFERENCES AND OTHER 2 |
Client/supplier claims and litigation AUGUST 31, 202515 |
| Provisions for negative net assets(2) | Provisions for negative net assets (2)AUGUST 31, 20246 |
Provisions for negative net assets (2)INCREASES/ CHARGES — |
Provisions for negative net assets (2)REVERSALS WITH UTILIZATION — |
Provisions for negative net assets (2)REVERSALS WITHOUT UTILIZATION — |
Provisions for negative net assets (2)EXCHANGE DIFFERENCES AND OTHER (1) |
Provisions for negative net assets (2)AUGUST 31, 20255 |
| Other provisions | Other provisions AUGUST 31, 202429 |
Other provisions INCREASES/ CHARGES 12 |
Other provisions REVERSALS WITH UTILIZATION (12) |
Other provisions REVERSALS WITHOUT UTILIZATION (4) |
Other provisions EXCHANGE DIFFERENCES AND OTHER (1) |
Other provisions AUGUST 31, 202524 |
| TOTAL PROVISIONS | TOTAL PROVISIONSAUGUST 31, 2024174 | TOTAL PROVISIONS INCREASES/ CHARGES 51 |
TOTAL PROVISIONS REVERSALS WITH UTILIZATION (42) |
TOTAL PROVISIONS REVERSALS WITHOUT UTILIZATION (27) |
TOTAL PROVISIONS EXCHANGE DIFFERENCES AND OTHER (3) |
TOTAL PROVISIONSAUGUST 31, 2025153 |
| (in millions of euros) | AUGUST 31, 2023 | INCREASES/ CHARGES | REVERSALS WITH UTILIZATION | REVERSALS WITHOUT UTILIZATION | EXCHANGE DIFFERENCES AND OTHER(1) | AUGUST 31, 2024 |
|---|---|---|---|---|---|---|
| Contract termination and loss-making contracts | Contract termination and loss-makingcontracts AUGUST 31, 202325 |
Contract termination and loss-makingcontracts INCREASES/ CHARGES 10 |
Contract termination and loss-makingcontracts REVERSALS WITH UTILIZATION (1) |
Contract termination and loss-makingcontracts REVERSALS WITHOUT UTILIZATION (16) |
Contract termination and loss-makingcontracts EXCHANGE DIFFERENCES AND OTHER (1)23 |
Contract termination and loss-makingcontracts AUGUST 31, 202441 |
| Employee claims and litigation | Employee claims and litigation AUGUST 31, 202342 |
Employee claims and litigation INCREASES/ CHARGES 13 |
Employee claims and litigation REVERSALS WITH UTILIZATION (5) |
Employee claims and litigation REVERSALS WITHOUT UTILIZATION (5) |
Employee claims and litigation EXCHANGE DIFFERENCES AND OTHER (1)— |
Employee claims and litigation AUGUST 31, 202445 |
| Tax and social security exposures | Tax and social security exposures AUGUST 31, 202329 |
Tax and social security exposures INCREASES/ CHARGES 2 |
Tax and social security exposures REVERSALS WITH UTILIZATION (3) |
Tax and social security exposures REVERSALS WITHOUT UTILIZATION (8) |
Tax and social security exposures EXCHANGE DIFFERENCES AND OTHER (1)— |
Tax and social security exposures AUGUST 31, 202420 |
| Reorganization costs(2) | Reorganization costs (2)AUGUST 31, 202319 |
Reorganization costs (2)INCREASES/ CHARGES 16 |
Reorganization costs (2)REVERSALS WITH UTILIZATION (14) |
Reorganization costs (2)REVERSALS WITHOUT UTILIZATION (4) |
Reorganization costs (2)EXCHANGE DIFFERENCES AND OTHER (1)— |
Reorganization costs (2)AUGUST 31, 202417 |
| Client/supplier claims and litigation | Client/supplier claims and litigation AUGUST 31, 202323 |
Client/supplier claims and litigation INCREASES/ CHARGES 2 |
Client/supplier claims and litigation REVERSALS WITH UTILIZATION (4) |
Client/supplier claims and litigation REVERSALS WITHOUT UTILIZATION — |
Client/supplier claims and litigation EXCHANGE DIFFERENCES AND OTHER (1)(5) |
Client/supplier claims and litigation AUGUST 31, 202416 |
| Provisions for negative net assets(3) | Provisions for negative net assets (3)AUGUST 31, 20237 |
Provisions for negative net assets (3)INCREASES/ CHARGES — |
Provisions for negative net assets (3)REVERSALS WITH UTILIZATION — |
Provisions for negative net assets (3)REVERSALS WITHOUT UTILIZATION — |
Provisions for negative net assets (3)EXCHANGE DIFFERENCES AND OTHER (1)(1) |
Provisions for negative net assets (3)AUGUST 31, 20246 |
| Other provisions | Other provisions AUGUST 31, 202344 |
Other provisions INCREASES/ CHARGES 14 |
Other provisions REVERSALS WITH UTILIZATION (12) |
Other provisions REVERSALS WITHOUT UTILIZATION (17) |
Other provisions EXCHANGE DIFFERENCES AND OTHER (1)— |
Other provisions AUGUST 31, 202429 |
| TOTAL PROVISIONS | TOTAL PROVISIONSAUGUST 31, 2023189 | TOTAL PROVISIONS INCREASES/ CHARGES 57 |
TOTAL PROVISIONS REVERSALS WITH UTILIZATION (39) |
TOTAL PROVISIONS REVERSALS WITHOUT UTILIZATION (50) |
TOTAL PROVISIONS EXCHANGE DIFFERENCES AND OTHER (1)17 |
TOTAL PROVISIONSAUGUST 31, 2024174 |
Provisions for exposures and litigation are determined on a case-by-case basis and rely on management’s best estimate of the outflows deemed likely to satisfy legal or implicit obligations to which the Group is exposed as of the end of the fiscal year.
