178 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
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The table below is a summary of provisions by type and between current and non-current amounts. Asset retirement Legal and obligations regulatory Restructuring Other
16. Provisions A provision is a liability recorded in the Consolidated statement of financial position, where there is uncertainty over the timing or amount that will be paid, and is therefore often estimated. The main provisions we hold are in relation to asset retirement obligations, which include the cost of returning network infrastructure sites to their original condition at the end of the lease and claims for legal and regulatory matters. Accounting policies Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured based on the best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material. Where the timing of settlement is uncertain amounts are classified as non-current where settlement is expected more than 12 months from the reporting date. 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 decommissioning. The associated cash outflows are substantially expected to occur at the dates of decommissioning of the assets to which they relate, and are long term in nature. Legal and regulatory The Group is involved in a number of legal and other disputes, including where the Group has received notifications of possible claims. The Directors of the Company, after taking legal advice, have established provisions considering the facts of each case. For a discussion of certain legal issues potentially affecting the Group see note 29 ‘Contingent liabilities and legal proceedings’ to the consolidated financial statements. Restructuring The Group undertakes periodic reviews of its operations and recognises provisions as required based on the outcomes of these reviews. The associated cash outflows for restructuring costs are primarily less than one year. Other Comprises various items that do not fall within the Group’s other categories of provisions.
Total €m (10) 71 498 (430) (81) (40) 90 143 370 (424) (310) (333)
€m
€m
€m
€m
1 April 2024 Exchange movements Amounts capitalised in the year Amounts charged to the income statement Utilised in the year - payments Amounts released to the income statement
933
269
942
304
2,448
2 – 71
(12) 85 (46) (21) – (18)
1 –
(1)
–
133 (238)
280 (108) (44) 431
(38) (9) (20)
(7) (3)
31 March 2025 Exchange movements Acquisitions Amounts capitalised in the year
959 80 143
275
831
2,496
1 5 –
4 –
1 –
Amounts charged to the income statement Utilised in the year - payments Amounts released to the income statement
–
146
78
146 (104) (60)
(41) (6)
(31) (50)
(248) (194) (333) 132
Other 1
–
–
–
31 March 2026
1,115
326
419
1,992
Asset retirement obligations
Legal and
regulatory Restructuring
Other €m
Total €m 731 1,261 1,992
€m
€m
€m
Current liabilities Non-current liabilities 31 March 2026
62
283 43 326
72 60
314 105 419
1,053 1,115
132
Asset retirement obligations
Legal and
regulatory Restructuring
Other €m
Total €m
€m
€m
€m
Current liabilities Non-current liabilities 31 March 2025
56 903 959
222 53 275
478 353 831
310 121 431
1,066 1,430 2,496
Note: 1. Other movements in respect of the Restructuring provision includes re-classifications to Trade and other payables of employee termination liabilities whose timing and value are no longer uncertain. Certain of these payments are long term in nature and are subject to change for prevailing inflation indices in the relevant market.
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