Registration Document

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Consolidated information
Notes to the Consolidated Financial Statements
4.25.3 other commitments given
(in millions of euro)
Sodexo Registration Document Fiscal 2011
Less than
1 year
August 31, 2011 August 31, 2010
1 to
5 years
More than
5 years Total Total
Financial guarantees to third parties 8 8 9
Site management commitments 11 37 3 51 40
Performance bonds given to clients 4 37 95 136 143
Other commitments 2 16 1 19 20
ToTAL 17 98 99 214 212
Financial guarantees to third parties mainly comprise
bank subordinated debt commitments under public
private partnership (PPP) contracts (see note 2.3.2.)
totaling 8 million euro.
Performance bonds given to clients are subject to
regular review by the management at the business
unit level. A provision is recorded as soon as payment
under a performance bond becomes probable.
The Group also has performance obligations to clients,
but regards these as having the essential features of a
performance bond rather than an insurance contract
designed to compensate the client in the event of nonfulfillment
of the service obligation (compensation
is generally due only where Sodexo is unable to
provide alternative or additional resources to fulfill
the obligation to the client).
4.26 Related parties
In practice, given its size and geographical reach,
Sodexo considers itself capable of providing the
additional resources needed to avoid paying
compensation to clients protected by such clauses.
At this time, no provision has been recorded in the
balance sheet with respect to these guarantees.
The Group has commitments to provide training
hours to its employees in France, known as Individual
Training Rights. In the absence of guidance from
regulatory authorities on the accounting treatment
for these rights, the Group has opted to present
these rights as a commitment. Based on available
information, the number of hours to be provided to
employees of French subsidiaries is estimated to be
approximately 2,400,000 hours.
4.26.1 Compensation, loans, post-employment benefits and other employee benefits
granted to Board members, the executive Committee, and the Chief executive
officer of Sodexo
(in euro) August 31, 2011 August 31, 2010
Short-term employee benefits 10,785,320 9,509,655
Post-employment benefits 436,226 329,889
Stock option expenses 5,327,462 4,252,750
ToTAL 16,549,008 14,092,294
These benefits include directors’ fees, and all forms
of compensation and benefits paid (or earned during
the period for offices held) by Bellon SA, Sodexo SA
and/or other Sodexo Group companies.
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During Fiscal 2011, the Group did not grant any
severance benefit or other long-term benefit to
members of the Board of Directors, the Executive
Committee or the Chief Executive Officer.