Vodafone 2013 Annual Report Download - page 142

A3. Inventory
Our inventory primarily consists of mobile handsets and is presented net of an allowance for obsolete products.
2013 2012
£m £m
Goods held for resale 450 486
Inventory is reported net of allowances for obsolescence, an analysis of which is as follows:
2013 2012 2011
£m £m £m
1 April 109 117 120
Exchange movements 7(8) (1)
Amounts credited to the income statement –– (2)
31 March 116 109 117
Cost of sales includes amounts related to inventory amounting to £5,967 million (2012: £6,327 million; 2011: £5,878 million).
A4. Share-based payments
We have a number of share plans used to award options and shares to directors and employees as part of their
remuneration package. A charge is recognised in the consolidated income statement to record the cost
of these, based on the fair value of the award on the grant date. For further information on how this is calculated
refer to “Share-based payments” under signicant accounting policies on page 136. Additional information
on options and shares granted to directors can be found in “Directors remuneration” on pages 80 and 81.
The maximum aggregate number of ordinary shares which may be issued in respect of share options or share plans will not (without shareholder
approval) exceed:
a 10% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number
of ordinary shares which have been allocated in the preceding ten year period under all plans; and
a 5% of the ordinary share capital of the Company in issue immediately prior to the date of grant, when aggregated with the total number
of ordinary shares which have been allocated in the preceding ten year period under all plans, other than any plans which are operated
on an all-employee basis.
Share options
Vodafone Group executive plans
No share options have been granted to any directors or employees under the Company’s discretionary share option plans in the year ended
31 March 2013.
There are options outstanding under the Vodafone Group 1999 Long-Term Stock Incentive Plan and the Vodafone Global Incentive Plan. These
options are normally exercisable between three and ten years from the date of grant. The vesting of some of these options is subject to satisfaction
of performance conditions. Grants made to US employees are made in respect of ADSs.
Vodafone Group Sharesave Plan
The Vodafone Group 2008 Sharesave Plan enables UK staff to acquire shares in the Company through monthly savings of up to £250 over a three
and/or ve year period, at the end of which they may 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 invitation period and usually at a discount of 20% to the then prevailing market price of the
Company’s shares.
Share plans
Vodafone Group executive plans
Under the Vodafone Global Incentive Plan awards of shares are granted to directors and certain employees. The release of these shares is conditional
upon continued employment and for some awards achievement of certain performance targets measured over a three year period.
Vodafone Share Incentive Plan
The Vodafone 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.
Notes to the consolidated nancial statements (continued)
140 Vodafone Group Plc
Annual Report 2013