Registration Document

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2.1.2 Property, plant and equipment
The principal straight-line depreciation rates used
are:
Buildings 5%
General fixtures and fittings 10%-20%
Plant and machinery 10%-25%
Vehicles 25%
Office and computer equipment 20%-25%
Other property, plant and equipment 10%
2.1.3 Financial investments
Shares in companies and other financial investments
are carried at cost. At each balance sheet date, a
provision for impairment is recorded if the value in
use is less than the carrying amount.
The value in use of investments is determined on the
basis of net asset value, profitability and the future
prospects of the investee.
For the most significant of these investments,
Sodexo also evaluated impairment by comparison
of the carrying amount to a value in use based on
discounted future cash flows, using the following
parameters:
• after-tax cash flows derived from three-year
business plans prepared by management, and
extrapolated after the initial three-year period
using a growth rate specific to the business
activity and geographic region;
• the cash flows are discounted using a rate based
on the average cost of capital.
Based on the estimated value in use, an investment
may be maintained at a carrying amount in excess
of the share of book net assets held.
Long-term receivables are carried at face value. A
provision for impairment is recorded where the
recoverable amount is less than the carrying amount.
2.2 Accounts receivable
Accounts receivable are carried at face value. An
allowance for doubtful accounts is recorded where
the recoverable amount is less than the carrying
amount.
Information on the Issuer 07
Notes to the Individual Company Financial Statements
2.3 Marketable securities
(excluding treasury shares)
Marketable securities are carried at acquisition cost,
with any unrealized losses covered by a provision
for impairment.
2.4 Treasury shares and stock
options
When it is considered probable that resources will
be used to satisfy stock option obligations, the risk
is provisioned pro rata over the vesting period. In
certain cases, this provision reflects treasury shares
that have been allocated to stock option plans.
Treasury shares directly allocated to stock option
plans granted to employees are recognized in
marketable securities and are accounted for as
follows:
• if the exercise price of the options is less than
the market price of the shares as of the closing
date, a provision is recognized over the vesting
period of the options for the difference between
the acquisition cost of the shares and the exercise
price;
• if the exercise price of the options is higher than
the market price of the shares as of the closing
date, the shares are evaluated at the lower of the
average purchase price and the average market
price for the preceding month.
Treasury shares acquired for cancellation purposes
are recognized in other financial assets and are not
depreciated.
2.5 Foreign currency transactions
Foreign-currency revenues and expenses are
translated using the exchange rate as of the
transaction date. Foreign-currency liabilities,
receivables and cash are translated in the balance
sheet at the rate prevailing as of the balance sheet
date, unless they are hedged. Any difference arising
from the retranslation of foreign-currency liabilities
and receivables at the closing exchange rate is
recorded in the balance sheet in an asset or liability
account. Unrealized foreign exchange losses are
recognized to the extent the underlying balance is
not hedged.
Sodexo Registration Document Fiscal 2011
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