Vodafone 2013 Annual Report Download - page 122

19. Provisions
A provision is a liability recorded in the statement of nancial position, where there is uncertainty over the timing
or amount that will be paid. The amount provided is therefore often estimated. The main provisions we hold
are in relation to asset retirement obligations and claims for legal and regulatory matters. Asset retirement
obligations include the cost of returning network infrastructure sites to their original condition at the end
of the lease.
Asset
retirement Legal and
obligations regulatory Other Total
£m £m £m £m
1 April 2011 315 270 456 1,041
Exchange movements (19) (12) (26) (57)
Amounts capitalised in the year 37 – – 37
Amounts charged to the income statement – 50 209 259
Utilised in the year − payments (4) (25) (164) (193)
Amounts released to the income statement – (6) (47) (53)
Other (10) 33 55 78
31 March 2012 319 310 483 1,112
Exchange movements (2) 5 (5) (2)
Arising on acquisition 147 8 109 264
Amounts capitalised in the year 68 – – 68
Amounts charged to the income statement – 59 308 367
Utilised in the year − payments (7) (42) (174) (223)
Amounts released to the income statement – (17) (23) (40)
Other (3) 180 2 179
31 March 2013 522 503 700 1,725
Provisions have been analysed between current and non-current as follows:
31 March 2013
Asset
retirement Legal and
obligations regulatory Other Total
£m £m £m £m
Current liabilities 20 262 536 818
Non-current liabilities 502 241 164 907
522 503 700 1,725
31 March 2012
Asset
retirement Legal and
obligations regulatory Other Total
£m £m £m £m
Current liabilities 15 225 393 633
Non-current liabilities 304 85 90 479
319 310 483 1,112
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 outows are substantially expected to occur at the dates of exit of the assets to which they relate, which are
long-term in nature, primarily in periods up to 25 years from when the asset is brought into use.
Legal and regulatory
The Group is involved in a number of legal and other disputes, including notications 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 outows associated with the majority
of legal claims are typically less than one year, however, for some legal claims the timing of cash ows may be long-term in nature. For a discussion
of certain legal issues potentially affecting the Group refer to note 21.
Other provisions
Other provisions comprises various provisions including those for restructuring costs and property. The associated cash outows for restructuring
costs are primarily less than one year. The timing of the cash ows associated with property is dependent upon the remaining term of the
associated lease.
Notes to the consolidated nancial statements (continued)
120 Vodafone Group Plc
Annual Report 2013