Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
4.10 Impairment of assets
Impairments of 22 million euro and 20 million euro
were recognized on tangible and intangible assets
as of August 31, 2011 and 2010 respectively. The
charge for the year was 2 million euro (11 million
euro for Fiscal 2010).
economic region
Sodexo Registration Document Fiscal 2011
discount
rate (1)
Assets with indefinite useful lives were tested for
impairment as of August 31, 2011 using the methods
described in note 2.8.2.
The main assumptions used rely on the macroeconomic
outlook for the geographic regions in
which the CGUs or Groups of CGUs defined by
Sodexo operate. They are as follows:
2011 2010
Long-term
growth rate (2)
discount
rate (1)
Long-term
growth rate (2)
Continental Europe 9.3% to 11.3% 2% 8.8% 2.0%
North America 9.3% 2.5% 8.8% 2.5%
United Kingdom 9.3% 3.6% 8.8% 3.3%
Rest of World (1) 11.8% 3.2% to 3.7% 11.8% 3.5% to 5.5%
(1) The discount rate defined by the Group has been increased for certain regions to allow for greater risk factors affecting certain countries.
(2) The long-term growth rate serves to extrapolate the terminal value based on year-3 data in the management plans.
Sensitivity analysis
Sodexo has analyzed the sensitivity of impairment
test results to different long-term growth rates and
discount rates.
This analysis demonstrated that a 2% increase in
the discount rate could lead to impairment of the
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assets of the North America CGU. A 2.5% decrease
in the growth rate could also lead to impairment of
the assets of the United Kingdom CGU.
For the other CGUs, analysis of sensitivity to a change
in the discount rate did not reveal any probable
scenario in which the recoverable value of a CGU
would fall below its carrying value.