Vodafone 2003 Annual Report Download - page 135

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 133
Fixed asset investments
Under US GAAP, SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities”, requires certain disclosures to be made of the Group’s
fixed asset investments, all of which are equity securities and classified as available for sale.
UK GAAP net
book value(1) Unrealised gains Unrealised losses Fair value
£m £m £m £m
At 31 March 2003 1,127 7 (144) 990
At 31 March 2002 1,325 286 (10) 1,601
Note:
(1) Determined using the weighted average cost basis.
During the period, the Group realised proceeds of £575m (2002: £319m; 2001: £513m), realising gross gains on sale of £258m and gross losses on sale of
£3m (2002: £9m; 2001: £6m).
Stock based compensation
For the purposes of US GAAP reporting, the Group accounts for stock based compensation in accordance with APB 25. The Group also adopts the disclosure
only provisions of SFAS No. 148.
The Company currently uses a number of share plans to grant options and share awards to its directors and employees.
Share Option Plans
Sharesave Scheme
The Vodafone Group 1998 Sharesave Scheme (“the Sharesave Scheme”) enables UK staff to acquire shares in the Company through monthly savings of up
to £250 over a three or five year period, at the end of which they also receive a tax free bonus. The savings and bonus may then be used to purchase shares
at the option price, which is set at the beginning of the savings contract and usually at a discount of 20% to the then prevailing market price of the
Company’s shares. Invitations to participate in this scheme are normally made annually.
Discretionary share option plans
The Company has two discretionary share option plans, the Vodafone Group 1998 Company Share Option Scheme (which is UK Inland Revenue approved)
and the Vodafone Group 1998 Executive Share Option Scheme (which is unapproved). Options under the discretionary schemes are subject to performance
conditions. Options are normally exercisable between three and ten years from the date of grant.
Long Term Stock Incentive Plan
The Vodafone Group Plc 1999 Long Term Stock Incentive Plan is a discretionary plan under which both share option grants and share awards may be made.
For some grants to US employees, the options have phased vesting over a four year period and are exercisable in respect of American Depositary Shares
(“ADSs”). For all other grants, options are normally exercisable between three and ten years from the date of grant, subject to the satisfaction of
predetermined performance conditions and are exercisable in respect of ordinary shares listed on the UK stock exchange, or ADSs for US employees.
Share option plans belonging to subsidiaries
Share option schemes are also operated by certain of the Group’s subsidiary and associated undertakings, under which options are only issued to Executives
and key personnel.
Share Plans
Share Incentive Plan
The Share Incentive Plan enables UK staff to acquire shares in the Company through monthly purchases of up to £125 per month or 5% of salary, whichever
is lower. For each share purchased by the employee, the Company provides a free matching share.