Vodafone 2008 Annual Report Download - page 125

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26. Provisions
Asset
retirement Other
obligations Legal provisions Total
£m £m £m £m
1 April 2006 148 99 157 404
Exchange movements (4) (2) (6) (12)
Amounts capitalised in the year 17 − − 17
Amounts charged to the income statement − 34 186 220
Utilised in the year − payments (2) (11) (45) (58)
Amounts released to the income statement − (4) (4) (8)
31 March 2007 159 116 288 563
Exchange movements 27 21 15 63
Arising on acquisition 11 − 2 13
Amounts capitalised in the year 27 − − 27
Amounts charged to the income statement − 57 167 224
Utilised in the year − payments (6) (5) (72) (83)
Amounts released to the income statement − (11) (106) (117)
Other (10) − (18) (28)
31 March 2008 208 178 276 662
Provisions have been analysed between current and non-current as follows:
2008 2007
£m £m
Current liabilities 356 267
Non-current liabilities 306 296
662 563
Asset retirement obligations
In the course of the Group’s activities, a number of sites and other assets are utilised which are expected to have costs associated with exiting and ceasing their use.
The associated cash outflows are generally expected to occur at the dates of exit of the assets to which they relate, which are long term in nature.
Legal
The Group is involved in a number of legal and other disputes, including notification of possible claims. The directors of the Company, after taking legal advice, have
established provisions after taking into account the facts of each case. The timing of cash outflows associated with legal claims cannot be reasonably determined.
For a discussion of certain legal issues potentially affecting the Group, refer to note 32 “Contingent liabilities”.
Other provisions
Included within other provisions are amounts provided for property and restructuring costs. The associated cash outflows for restructuring costs are substantially
short term in nature. The timing of the cash flows associated with property is dependent upon the remaining term of the associated lease.
27. Trade and other payables
2008 2007
£m £m
Included within non-current liabilities:
Derivative financial instruments 173 156
Other payables 99 67
Accruals and deferred income 373 312
645 535
Included within current liabilities:
Trade payables 2,963 2,238
Amounts owed to associated undertakings 22 24
Other taxes and social security payable 666 467
Derivative financial instruments 371 63
Other payables 442 480
Accruals and deferred income 7,498 5,502
11,962 8,774
The carrying amounts of trade and other payables approximate their fair value. The fair values of the derivative financial instruments are calculated by discounting the
future cash flows to net present values using appropriate market interest and foreign currency rates prevailing at 31 March.
2008 2007
£m £m
Included within “Derivative financial instruments”:
Fair value through the income statement (held for trading):
Interest rate swaps 160 68
Foreign exchange swaps 358 48
518 116
Fair value hedges:
Interest rate swaps 26 103
544 219
Vodafone Group Plc Annual Report 2008 123