Vodafone 2009 Annual Report Download - page 112

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110 Vodafone Group Plc Annual Report 2009
27. Provisions
Asset
retirement Other
obligations provisions Total
£m £m £m
1 April 2007 159 404 563
Exchange movements 27 36 63
Arising on acquisition 11 2 13
Amounts capitalised in the year 27 − 27
Amounts charged to the income statement − 224 224
Utilised in the year − payments (6) (77) (83)
Amounts released to the income statement − (117) (117)
Other (10) (18) (28)
31 March 2008 208 454 662
Exchange movements 34 75 109
Amounts capitalised in the year 111 − 111
Amounts charged to the income statement − 194 194
Utilised in the year − payments (4) (106) (110)
Amounts released to the income statement − (72) (72)
Other 12 − 12
31 March 2009 361 545 906
Provisions have been analysed between current and non-current as follows:
2009 2008
£m £m
Current liabilities 373 356
Non-current liabilities 533 306
906 662
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.
Other provisions
Included within other provisions are provisions for legal and regulatory disputes and amounts provided for property and restructuring costs. 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 33 “Contingent liabilities”. 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.
28. Trade and other payables
2009 2008
£m £m
Included within non-current liabilities:
Derivative financial instruments 398 173
Other payables 91 99
Accruals and deferred income 322 373
811 645
Included within current liabilities:
Trade payables 3,160 2,963
Amounts owed to associated undertakings 18 22
Other taxes and social security payable 762 666
Derivative financial instruments 37 371
Other payables 1,163 442
Accruals and deferred income 8,258 7,498
13,398 11,962
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.
2009 2008
£m £m
Included within “Derivative financial instruments”:
Fair value through the income statement (held for trading):
Interest rate swaps 381 160
Foreign exchange swaps 37 358
418 518
Fair value hedges:
Interest rate swaps 17 26
435 544
Notes to the consolidated nancial statements continued