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4.2 Finance income and expense
Consolidated information 06
Notes to the Consolidated Financial Statements
(in millions of euro) Fiscal 2011 Fiscal 2010
Gross borrowing cost (1) (143) (139)
Interest income from short-term bank deposits and equivalent 11 7
Net borrowing cost (132) (132)
Interest income from loans and receivables at amortized cost 5 5
Other interest income 1 16
Other interest expense (5) (6)
Net foreign exchange (losses)/gains (4) (2)
Net impairment (losses)/reversals 1 (16)
Expected return on defined-benefit plan assets 39 34
Interest cost on defined-benefit plan obligation (35) (36)
Foreign-exchange adjustment for hyperinflation (5) (5)
Change in fair value of derivative financial instruments
not qualified for hedge accounting (6)
Other (6) (8)
Net financing costs (147) (150)
Interest income component 57 62
Financial expense component (204) (212)
(1) Gross borrowing cost represents interest expense on financial liabilities reflected at amortized cost and interest expense on hedging instruments.
4.3 Income tax expense
Income tax rate reconciliation
(in millions of euro) Fiscal 2011 Fiscal 2010
Profit for the period before tax 721 635
Share of profit of companies consolidated by the equity method (15) (14)
Accounting profit before tax 706 621
Tax rate applicable to Sodexo SA 34.43% 34.43%
Theoretical income tax expense (243) (214)
Effect of jurisdictional tax rate differences 25 24
Permanently non-deductible expenses or non-taxable income (3) (3)
Other tax repayments/(charges), net (1) Tax loss carry-forwards used or recognized during the period
(17) (22)
but not recognized as a deferred tax asset in prior periods
Tax loss carry-forwards arising during the period
6 20
but not recognized as a deferred tax asset (7) (4)
Actual income tax expense (239) (199)
Withholding taxes (11) (6)
ToTAL INCoMe TAx exPeNSe (250) (205)
(1) Other tax payments include the recognition of the CVAE in income tax expense.
Sodexo Registration Document Fiscal 2011
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