Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Trading Symbol | PSO |
Entity Registrant Name | PEARSON PLC |
Entity Central Index Key | 0000938323 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 756,802,797 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Voluntary Filers | No |
Document Accounting Standard | International Financial Reporting Standards |
Entity Incorporation, State or Country Code | X0 |
Title of 12(b) Security | Ordinary Shares |
Security Exchange Name | NYSE |
Entity Address, Country | GB |
Entity Interactive Data Current | Yes |
ICFR Auditor Attestation Flag | true |
Entity Address, Address Line One | 80 Strand |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | WC2R 0RL |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 876 |
Auditor Location | London, United Kingdom |
Entity File Number | 1-16055 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Country | GB |
Entity Address, Address Line One | 80 Strand |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | WC2R 0RL |
Contact Personnel Name | Graeme Baldwin |
City Area Code | 20 |
Local Phone Number | 7010 2000 |
Contact Personnel Fax Number | 7010 6060 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Consolidated income statement
Consolidated income statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Continuing operations | |||
Sales | £ 3,428 | £ 3,397 | £ 3,869 |
Cost of goods sold | (1,747) | (1,767) | (1,858) |
Gross profit | 1,681 | 1,630 | 2,011 |
Operating expenses | (1,562) | (1,402) | (1,806) |
Other net gains and losses | 63 | 178 | 16 |
Share of results of joint ventures and associates | 1 | 5 | 54 |
Operating profit | 183 | 411 | 275 |
Finance costs | (68) | (107) | (84) |
Finance income | 42 | 50 | 41 |
Profit before tax | 157 | 354 | 232 |
Income tax | 3 | (44) | 34 |
Profit for the year | 160 | 310 | 266 |
Attributable to: | |||
Equity holders of the company | 159 | 310 | 264 |
Non-controlling interest | £ 1 | £ 0 | £ 2 |
Earnings per share attributable to equity holders of the company during the year (expressed in pence per share) | |||
- basic | £ 0.211 | £ 0.410 | £ 0.340 |
- diluted | £ 0.209 | £ 0.410 | £ 0.340 |
Consolidated statement of compr
Consolidated statement of comprehensive income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement [LineItems] | |||
Profit for the year | £ 160 | £ 310 | £ 266 |
Items that may be reclassified to the income statement | |||
Currency translation adjustment disposed | 4 | (70) | 4 |
Attributable tax | 10 | (13) | 5 |
Items that are not reclassified to the income statement | |||
Fair value gain on other financial assets | 24 | 14 | 20 |
Attributable tax | (3) | (6) | (4) |
Attributable tax | (61) | 2 | 22 |
Other comprehensive income/(expense) for the year | 117 | (205) | (217) |
Total comprehensive income for the year | 277 | 105 | 49 |
Attributable to: | |||
Equity holders of the company | 276 | 105 | 47 |
Non-controlling interest | 1 | 2 | |
Group [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (6) | (109) | (113) |
Items that are not reclassified to the income statement | |||
Remeasurement of retirement benefit obligations | £ 149 | £ (23) | (145) |
Associates [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (2) | ||
Items that are not reclassified to the income statement | |||
Remeasurement of retirement benefit obligations | £ (4) |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property, plant and equipment | £ 366 | £ 515 |
Intangible assets | 2,769 | 2,742 |
Investments in joint ventures and associates | 24 | 6 |
Deferred income tax assets | 57 | 32 |
Financial assets – derivative financial instruments | 30 | 45 |
Retirement benefit assets | 537 | 410 |
Other financial assets | 113 | 138 |
Income tax assets | 97 | |
Trade and other receivables | 129 | 223 |
Total non-current assets | 4,122 | 4,111 |
Current assets | ||
Intangible assets – product development | 894 | 905 |
Inventories | 98 | 129 |
Trade and other receivables | 1,257 | 1,118 |
Financial assets – derivative financial instruments | 2 | 18 |
Income tax assets | 26 | |
Cash and cash equivalents (excluding overdrafts) | 937 | 1,097 |
Total current assets | 3,214 | 3,267 |
Assets classified as held for sale | 7 | 73 |
Total assets | 7,343 | 7,451 |
Non-current liabilities | ||
Financial liabilities - borrowings | (1,245) | (1,397) |
Financial liabilities - derivative financial instruments | (30) | (40) |
Deferred income tax liabilities | (40) | (62) |
Retirement benefit obligations | (66) | (85) |
Provisions for other liabilities and charges | (7) | (8) |
Other liabilities | (95) | (80) |
Non-current liabilities | (1,483) | (1,672) |
Current liabilities | ||
Trade and other liabilities | (1,256) | (1,196) |
Financial liabilities - borrowings | (155) | (254) |
Financial liabilities - derivative financial instruments | (4) | (12) |
Income tax liabilities | (125) | (84) |
Provisions for other liabilities and charges | (40) | (25) |
Total current liabilities | (1,580) | (1,571) |
Liabilities classified as held for sale | 0 | (74) |
Total liabilities | (3,063) | (3,317) |
Net assets | 4,280 | 4,134 |
Equity | ||
Share capital | 189 | 188 |
Share premium | 2,626 | 2,620 |
Treasury shares | (12) | (7) |
Capital redemption reserve | 18 | 18 |
Fair value reserve | 33 | 53 |
Translation reserve | 386 | 388 |
Retained earnings | 1,030 | 865 |
Total equity attributable to equity holders of the company | 4,270 | 4,125 |
Non-controlling interest | 10 | 9 |
Total equity | £ 4,280 | £ 4,134 |
Consolidated statement of chang
Consolidated statement of changes in equity - GBP (£) £ in Millions | Total | Share capital [member] | Share premium [member] | Treasury shares [member] | Capital redemption reserve [member] | Fair value reserve [member] | Translation reserve [member] | Retained earnings [member] | Equity attributable to equity holders of the company [member] | Non-controlling interest [member] |
Beginning Balance at Dec. 31, 2018 | £ 4,525 | £ 195 | £ 2,607 | £ (33) | £ 11 | £ 19 | £ 678 | £ 1,039 | £ 4,516 | £ 9 |
Adjustment on initial application (Increase decrease due to application of IFRS 16 [member]) at Dec. 31, 2018 | (83) | (83) | (83) | |||||||
Adjustment on initial application (Increase decrease due to application of IFRIC 23 [member]) at Dec. 31, 2018 | 5 | 5 | 5 | |||||||
Beginning balance, (restated) at Dec. 31, 2018 | 4,447 | 195 | 2,607 | (33) | 11 | 19 | 678 | 961 | 4,438 | 9 |
Statement [LineItems] | ||||||||||
Profit for the year | 266 | 264 | 264 | 2 | ||||||
Other comprehensive income/(expense) | (217) | 20 | (111) | (126) | (217) | |||||
Total comprehensive income for the year | 49 | 20 | (111) | 138 | 47 | 2 | ||||
Equity-settled transactions | 25 | 25 | 25 | 0 | ||||||
Tax on equity-settled transactions | (5) | (5) | (5) | |||||||
Issue of ordinary shares under share option schemes | 7 | 7 | 7 | |||||||
Purchase of treasury shares | (52) | (52) | (52) | |||||||
Release of treasury shares | 61 | (61) | ||||||||
Dividends | (148) | (147) | (147) | (1) | ||||||
Ending balance at Dec. 31, 2019 | 4,323 | 195 | 2,614 | (24) | 11 | 39 | 567 | 911 | 4,313 | 10 |
Statement [LineItems] | ||||||||||
Profit for the year | 310 | 310 | 310 | |||||||
Other comprehensive income/(expense) | (205) | 14 | (179) | (40) | (205) | |||||
Total comprehensive income for the year | 105 | 14 | (179) | 270 | 105 | |||||
Equity-settled transactions | 29 | 29 | 29 | |||||||
Issue of ordinary shares under share option schemes | 6 | 6 | 6 | |||||||
Buyback of equity | (176) | (7) | 7 | (176) | (176) | |||||
Purchase of treasury shares | (6) | (6) | (6) | |||||||
Release of treasury shares | 23 | 23 | (23) | |||||||
Dividends | (147) | (146) | (146) | (1) | ||||||
Ending balance at Dec. 31, 2020 | 4,134 | 188 | 2,620 | (7) | 18 | 53 | 388 | 865 | 4,125 | 9 |
Statement [LineItems] | ||||||||||
Profit for the year | 160 | 159 | 159 | 1 | ||||||
Other comprehensive income/(expense) | 117 | 24 | (2) | 95 | 117 | |||||
Total comprehensive income for the year | 277 | 24 | (2) | 254 | 276 | 1 | ||||
Equity-settled transactions | 28 | 28 | 28 | |||||||
Issue of ordinary shares under share option schemes | 6 | 1 | 6 | (1) | 6 | |||||
Purchase of treasury shares | (16) | (16) | (16) | |||||||
Release of treasury shares | 12 | 12 | (12) | |||||||
Transfer of gain on disposal of FVOCI investment | (44) | 44 | ||||||||
Dividends | (149) | (149) | (149) | |||||||
Ending balance at Dec. 31, 2021 | £ 4,280 | £ 189 | £ 2,626 | £ (12) | £ 18 | £ 33 | £ 386 | £ 1,030 | £ 4,270 | £ 10 |
Consolidated cash flow statemen
Consolidated cash flow statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net cash generated from operations | £ 570 | £ 450 | £ 480 |
Interest paid | (67) | (63) | (81) |
Tax (paid)/received | (177) | 2 | (30) |
Net cash generated from operating activities | 326 | 389 | 369 |
Cash flows from investing activities | |||
Acquisition of subsidiaries, net of cash acquired | (55) | (6) | (45) |
Acquisition of associates | (10) | ||
Additional capital invested in associates | (40) | ||
Purchase of investments | (4) | (6) | (12) |
Purchase of property, plant and equipment | (64) | (53) | (55) |
Purchase of intangible assets | (112) | (81) | (138) |
Disposal of subsidiaries, net of cash disposed | 83 | 100 | (101) |
Proceeds from sale of joint ventures and associates | 531 | ||
Proceeds from sale of investments | 48 | 5 | |
Proceeds from sale of property, plant and equipment | 0 | 0 | 1 |
Lease receivables repaid including disposals | 21 | 41 | 26 |
Loans repaid by/(advanced to) related parties | 48 | (49) | |
Interest received | 13 | 13 | 17 |
Investment income | 2 | ||
Dividends from joint ventures and associates | 4 | 64 | |
Net cash (used in)/generated from investing activities | (80) | 591 | (325) |
Cash flows from financing activities | |||
Proceeds from issue of ordinary shares | 6 | 6 | 7 |
Buyback of equity | (176) | ||
Purchase of treasury shares | (16) | (6) | (52) |
Proceeds from borrowings | 346 | 230 | |
Repayment of borrowings | (167) | (230) | (48) |
Repayment of lease liabilities | (88) | (92) | (91) |
Dividends paid to company's shareholders | (149) | (146) | (147) |
Dividends paid to non-controlling interest | (1) | (1) | |
Net cash used in financing activities | (414) | (299) | (102) |
Effects of exchange rate changes on cash and cash equivalents | (8) | (2) | (33) |
Net (decrease)/increase in cash and cash equivalents | (176) | 679 | (91) |
Cash and cash equivalents at beginning of year | 1,113 | 434 | 525 |
Cash and cash equivalents at end of year | £ 937 | £ 1,113 | £ 434 |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Accounting policies | 1a. Accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. Basis of preparation These consolidated financial statements have been prepared on the going concern basis (see note 1b) and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK-adopted UK-adopted UK-adopted UK-adopted These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) at fair value. These accounting policies have been consistently applied to all years presented, unless otherwise stated. 1. Interpretations and amendments to published standards effective 2021 ‘Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)’ is effective from 1 January 2021 (see note 19) and in addition, the Group has early adopted the amendment to IFRS 16 ‘COVID-19 The Group has also considered the IFRIC agenda decision on ‘Configuration and Customisation costs in a Cloud Computing Arrangement’, and concluded that it does not have a material impact on the consolidated financial statements. 2. Standards, interpretations and amendments to published standards that are not yet effective • IFRS 17 ‘Insurance contracts’; • Amendments to IFRS 3 ’Reference to the conceptual framework’; • Amendments to IAS 1 ‘Disclosure of accounting policies’; • Amendments to IAS 1 ‘Classification of liabilities as current or non-current’; • Amendments to IAS 8 ‘Definition of accounting estimates’; • Amendments to IAS 12 ‘Deferred tax related to assets and liabilities arising from a single transaction’; • Amendments to IAS 16 ‘Proceeds before intended use’; • Amendments to IAS 37 ‘Onerous contracts - costs of fulfilling a contract’; and • Annual improvements to IFRS 2018-2020. The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. 3. Critical accounting assumptions and judgements All assumptions and estimates constitute management’s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are: • Intangible assets: Goodwill • Taxation • Revenue: Provisions for returns • Employee benefits: Pensions • Property, plant and equipment: Right-of-use The recoverability of product development assets and in particular, the assessment of the useful economic lives of the product development assets, is no longer considered to be a key area of estimation uncertainty as the impact of COVID-19 The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. Key judgements • The application of tax legislation in relation to provisions for uncertain tax positions (see notes 7 and 34). • The allocation of goodwill to the cash-generating units and groups of cash-generating units (see note 11). • Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset (see note 25). Key areas of estimation • The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11 for further details. • The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34 for further details. • The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3 for further details. • The determination of the pension cost and defined benefit obligation of the Group’s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25 for further details. • The recoverability of right-of-use The Group has assessed the impact of the uncertainty presented by the continued COVID-19 • Recoverable value of right-of-use • Financial instruments in particular counterparty risk and hedge effectiveness; • Working capital provisions including expected credit losses on trade and other debtors and inventory obsolescence; and • The assessment of the useful economic lives of product development assets. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. Consolidation 1. Business combinations The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling See the ‘Intangible assets’ policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in the income statement. On an acquisition-by-acquisition non-controlling non-controlling IFRS 3 ‘Business Combinations’ has not been applied retrospectively Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: 2. Subsidiaries 3. Transactions with non-controlling non-controlling non-controlling non-controlling 4. Joint ventures and associates The Group’s share of its joint ventures’ and associates’ post-acquisition profits or losses is recognized in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group’s share of its joint ventures’ and associates’ results is recognized as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group’s interest in these entities. 5. Contribution of a subsidiary to an associate or joint venture Foreign currency translation 1. Functional and presentation currency 2. Transactions and balances year-end 3. Group companies a. Assets and liabilities are translated at the closing rate at the date of the balance sheet b. Income and expenses are translated at average exchange rates c. All resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders’ equity. The Group treats specific inter-company loan balances, which are not intended to be repaid in the foreseeable future, as part of its net investment. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. The principal overseas currency for the Group is the US dollar. The average rate for the year against sterling was $1.38 (2020: $1.28) and the year-end Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives as follows: Buildings (freehold): 20 – 50 years Buildings (leasehold): over the period of the lease Plant and equipment: 3 – 10 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The carrying value of an asset is written down to its recoverable amount if the carrying value of the asset is greater than its estimated recoverable amount. Intangible assets 1. Goodwill non-controlling Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures. Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimat ion Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software three 3. Internally developed software once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three 4. Acquired intangible assets two 5. Product development assets Product development assets relating to content are amortised upon publication of the title over estimated economic lives of seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less, being an estimate of the expected useful life. The assessment of the useful economic life and the recoverability of product development assets involves judgement and is based on historical trends and management estimation of future potential sales. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. The carrying amount of product development assets is set out in note 20. The investment in product development assets has been disclosed as part of cash generated from operations in the cash flow statement (see note 33). Other financial assets Other financial assets are non-derivative Marketable securities and cash deposits with maturities of greater than three months are classified and subsequently measured at fair value through profit and loss (FVTPL). They are remeasured at each balance sheet date by using market data and the use of established valuation techniques. Any movement in the fair value is immediately recognised in finance income or finance costs in the income statement. Investments in the equity instruments of other entities are classified and subsequently measured at fair value through other comprehensive income (FVOCI). Changes in fair value are recorded in equity in the fair value reserve via other comprehensive income. On subsequent disposal of the asset, the net fair value gains or losses are reclassified from the fair value reserve to retained earnings. Any dividends received from equity investments classified as FVOCI are recognised in the income statement unless they represent a return of capital. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method or an approximation thereof, such as the first in first out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. Provisions are made for slow-moving and obsolete stock. Royalty advances Advances of royalties to authors are included within trade and other receivables when the advance is paid less any provision required to adjust the advance to its net realisable value. The realisable value of royalty advances relies on a degree of management estimation in determining the profitability of individual author contracts. If the estimated realisable value of author contracts is overstated, this will have an adverse effect on operating profits as these excess amounts will be written off. The recoverability of royalty advances is based upon an annual detailed management review of the age of the advance, the future sales projections for new authors and prior sales history of repeat authors. The royalty advance is expensed at the contracted or effective royalty rate as the related revenues are earned. Royalty advances which will be consumed within one year are held in current assets. Royalty advances which will be consumed after one year are held in non-current Cash and cash equivalents Cash and cash equivalents in the cash flow statement include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are included in borrowings in current liabilities in the balance sheet. Short-term deposits and marketable securities with maturities of greater than three months do not qualify as cash and cash equivalents and are reported as financial assets. Movements on these financial assets are classified as cash flows from financing activities in the cash flow statement where these amounts are used to offset the borrowings of the Group or as cash flows from investing activities where these amounts are held to generate an investment return. Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs, net of income taxes, is deducted from equity attributable to the company’s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable transaction costs and the related income tax effects, is included in equity attributable to the company’s equity holders. Ordinary shares purchased under a buyback programme are cancelled and the nominal value of the shares is transferred to a capital redemption reserve. Borrowings Borrowings are recognised initially at fair value, which is proceeds received net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value being recognised in the income statement over the period of the borrowings using the effective interest method. Accrued interest is included as part of borrowings. Where a debt instrument is in a fair value hedging relationship, an adjustment is made to its carrying value in the income statement to reflect the hedged risk. Where a debt instrument is in a net investment hedge relationship, gains and losses on the effective portion of the hedge are recognised in other comprehensive income. Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on Reporting of gains and Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed Gains and losses on the derivative are reported in finance income or finance costs However, an equal and opposite change is made to the carrying value of the debt (a ‘fair value adjustment’) with the benefit/cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. Taxation Current tax is recognised at the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax is provided, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided in respect of the undistributed earnings of subsidiaries, associates and joint ventures other than where it is intended that those undistributed earnings will not be remitted in the foreseeable future. Current and deferred tax are recognised in the income statement, except when the tax relates to items charged or credited directly to equity or other comprehensive income, in which case the tax is also recognised in equity or other comprehensive income. The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the estimates in relation to the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises tax provisions when it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are based on management’s best judgement of the application of tax legislation and best estimates of future settlement amounts (see note 7). Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets and liabilities require management judgement and estimation in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised, significant judgement is used when considering the timing of the recognition and estimation is used to determine the level of future taxable income together with any future tax planning strategies (see note 13). Employee benefits 1. Pensions When the calculation results in a potential asset, the recognition of that asset is limited to the asset ceiling – that is the present value of any economic benefits available in the form of refunds from the plan or a reduction in future contributions. Management uses judgement to determine the level of refunds available from the plan in recognising an asset. The determination of the pension cost and defined benefit obligation of the Group’s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity (see note 25). Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. The service cost, representing benefits accruing over the year, is included in the income statement as an operating cost. Net interest is calculated by applying the discount rate to the net defined benefit obligation and is presented as finance costs or finance income. Obligations for contributions to defined contribution pension plans are recognised as an operating expense in the income statement as incurred. 2. Other post-retirement obligations 3. Share-based payments Provisions Provisions are recognised if the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are discount ed Revenue recognition The Group’s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, including sistemas in Brazil, as well as the provision of online learning services in partnership with universities and other academic institutions. Revenue is recognised in order to depict the transfer of control of promised goods and services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. This process begins with the identification of our contract with a customer, which is generally through a master services agreement, customer purchase order, or a combination thereof. Within each contract, judgement is applied to determine the extent to which activities within the contract represent distinct performance obligations to be delivered and the total amount of transaction price to which we expect to be entitled. The transaction price determined is net of sales taxes, rebates and discounts, and after eliminating sales within the Group. Where a contract contains multiple performance obligations such as the provision of supplementary materials or online access with textbooks, revenue is allocated on the basis of relative standalone selling prices. Where a contract contains variable consideration, significant estimation is required to determine the amount to which the Group is expected to be entitled. Revenue is recognised on contracts with customers when or as performance obligations are satisfied, which is the period or the point in time where control of goods or services transfers to the customer. Judgement is applied to determine first whether control passes over time and if not, then the point in time at which control passes. Where revenue is recognised over time, judgement is used to determine the method which best depicts the transfer of control. Where an input method is used, significant estimation is required to determine the progress towards delivering the performance obligation. Revenue from the sale of books is recognised net of a provision for anticipated returns. This provision is based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. When the provision for returns is remeasured at each reporting date to reflect changes in estimates, a corresponding adjustment is also recorded to revenue. The Group may enter into contracts with another party in addition to our customer. In making the determination as to whether revenue should be recognised on a gross or net basis, the contract with the customer is analysed to understand which party controls the relevant good or service prior to transferring to the customer. This judgement is informed by facts and circumstances of the contract in determining whether the Group has promised to provide the specified good or service or whether the Group is arranging for the transfer of the specified good or service, including which party is responsible for fulfilment, has discretion to set the price to the customer and is responsible for inventory risk. On certain contracts, where the Group acts as an agent, only commissions and fees receivable for services rendered are recognised as revenue. Any third-party costs incurred on behalf of the principal that are rechargeable under the contractual arrangement are not included in revenue. Income from recharges of freight and other activities which are incidental to the normal revenue-generating activities is included in other income. Additional details on the Group’s revenue streams are also included Leases The Group as a lessee The Group assesses whether a contract is or contains a lease at the inception of the contract. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use low-value The right-of-use right-of-use right-of-use the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate or a change in the Group’s assessment of whether it will exercise an extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right-of-use Management uses judgement to determine the lease term where extension and termination options are available within the lease. The Group as a lessor When the Group is an intermediate lessor, the head lease and sublease are accounted for as two separate contracts. The head lease is accounted for as per the lessee policy above. The sublease is classified as a finance lease or operating lease by reference to the right-of-use Policy applicable from 1 January 2019: IFRS 16 The Group adopted IFRS 16 ‘Leases’ at 1 January 2019 and applied the modified retrospective approach. Comparatives for 2018 have not been restated and the cumulative impact of adoption has been recognised as a decrease of £83m to net assets with a corresponding decrease in retained earnings at 1 January 2019. The net impact on the balance sheet has been assessed after taking into account existing liabilities relating to onerous lease provisions, lease incentives, prepayments, adjustments to tax and the net impact on the associates. Adoption of IFRS 16 had a material impact on the Group. The lease liability brought onto the balance sheet at transition was £881m with the corresponding right-of-use asset valued at £424m. In addition, certain subleases have been reclassified as finance leases resulting in an additional lease receivable of £215m being brought on balance sheet. The impact on the income statement for 2019 was to reduce profit before tax by £9m. The weighted average incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 5%. Dividends Final dividends are recorded in the Group’s financial statements in the period in which they are approved by the company’s shareholders. Interim dividends are recorded when paid. Discontinued operations A discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical area of operations that has been disposed of or meets the criteria to be classified as held for sale. When applicable, discontinued operations are presented in the income statement as a separate line and are shown net of tax. Assets and liabilities held for sale Assets and liabilities are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if it is highly probable that the carrying amount will be recovered principally through a sale transaction rather than through continuing use. No depreciation is charged in respect of non-current non-current Trade receivables Trade receivables are stated at fair value after provision for bad and doubtful debts. Provisions for bad and doubtful debts are based on the expected credit loss model. The ‘simplified approach’ is used with the expected loss allowance measured at an amount equal to the lifetime expected credit losses. A provision for anticipated future sales returns is included within trade and other liabilities (also see Revenue recognition policy). 1b. Going concern In assessing the Group’s ability to continue as a going concern for the period to 30 June 2023, the Board analysed a variety of downside scenarios including a severe but plausible scenario where the Group is impacted by a combination of all principal risks from 2022 as well as reverse stress testing to identify what would be required to either breach covenants or run out of liquidity. The severe but plausible scenario modelled a severe reduction in revenue, profit and operating cash flow from risks which in aggregate were significantly greater than seen in 2021 continuing throughout 2022 to 2023. At 31 December 2021, the Group had available liquidity of c£1.6bn, comprising central cash balances and its undrawn $1.19bn Revolving Credit Facility (RCF). In February 2022, the Group renegotiated its revolving credit facility, extending the maturity of $1bn of the facility by one year to February 2026. Even under a severe downside case, the Group would maintain comfortable liquidity headroom and sufficient headroom against covenant requirem |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Segment information | 2. Segment information On 8 March 2021, the Group announced a new strategy, which included a new management structure and operating model. As a result, the primary operating segments reported to the Group’s chief operating decision-maker, the Pearson Executive Management team, have changed from 1 July 2021 to reflect the new Group structure. There are now five main global business divisions, which are each considered separate operating segments for management and reporting purposes. These five divisions are Assessment & Qualification, Virtual Learning, English Language Learning, Higher Education and Workforce Skills. In addition, the International Courseware local publishing businesses are under strategic review and during this time are being managed as a separate division, known as Strategic Review. For the comparative period, the Group has separately disclosed the results from the Penguin Random House associate to the point of disposal in April 2020. Comparative figures for 2020 and 2019 have been restated to reflect the new segments. The following describes the principal activities of the five main operating segments: • Assessment & Qualification – Pearson VUE, US Student Assessment, Clinical Assessment, UK GCSE and A Levels and International academic qualifications. • Virtual Learning – Virtual Schools and Online Program Management. • English Language Learning – Pearson T est of English, Institut • Higher Education – US, Canadian and International Higher Education Courseware businesses. • Workforce Skills – BTEC, GED, TalentLens, Faethm, Pearson College and Apprenticeships. 2021 All figures in £ millions Notes Assessment & Virtual English Workforce Higher Strategic Penguin Group Sales 3 1,204 713 238 172 849 252 — 3,428 Adjusted operating profit 216 32 15 27 73 22 — 385 Cost of major restructuring (48 ) (48 ) (27 ) (28 ) (63 ) — — (214 ) Intangible charges (13 ) (25 ) (3 ) (7 ) (2 ) (1 ) — (51 ) Other net gains and losses — — — (2 ) — 65 — 63 Operating profit/(loss) 155 (41 ) (15 ) (10 ) 8 86 — 183 Finance costs 6 (68 ) Finance income 6 42 Profit before tax 157 Income tax 7 3 Profit for the year 160 Other segment items Share of results of joint ventures and associates 12 — (1 ) 3 (1 ) — — — 1 Depreciation and impairment 10 92 48 14 9 63 15 — 241 Amortisation and impairment 11, 20 129 67 34 25 165 26 — 446 2019 All figures in £ millions Notes Assessment & Virtual English Workforce Higher Strategic Penguin Group Sales 3 1,280 584 320 185 1,102 398 — 3,869 Adjusted operating profit 252 13 59 31 134 27 65 581 Costs of major restructuring (38 ) (13 ) (10 ) (7 ) (68 ) (21 ) (2 ) (159 ) Intangible charges (23 ) (36 ) (80 ) (9 ) — (3 ) (12 ) (163 ) Other net gains and losses — — — — — 16 — 16 Operating profit / (loss) 191 (36 ) (31 ) 15 66 19 51 275 Finance costs 6 (84 ) Finance income 6 41 Profit before tax 232 Income tax 7 34 Profit for the year 266 Share of results of joint ventures and associates — — 3 — — — 51 54 Depreciation and impairment 49 18 8 5 29 14 — 123 Amortisation and impairment 135 62 104 24 172 40 — 537 There were no material inter-segment sales in either 2021, 2020 or 2019. Corporate costs are allocated to business segments on an appropriate basis depending on the nature of the cost and therefore the total segment result is equal to the Group operating profit. Adjusted operating profit is shown in the above tables as it is the key financial measure used by management to evaluate the performance of the Group. The measure also enables investors to more easily, and consistently, track the underlying operational performance of the Group and its business segments over time by separating out those items of income and expenditure relating to acquisition and disposal transactions, major restructuring programmes and certain other items that are also not representative of underlying performance, which are explained below and reconciled with this Cost of major restructuring – In March 2021, the Group announced a restructuring programme, to run primarily in 2021. The programme includes the reorganisation of the Group into five global business divisions and the simplification of the Group’s property portfolio. The restructuring costs in 2021 of £214m mainly relate to the impairment of right-of-use Intangible charges – These represent charges relating to intangibles acquired through business combinations and intangibles relating to associate s Other net gains and losses – These represents profits and losses on the sale of subsidiaries, joint ventures, associates and other financial assets and are excluded from adjusted operating profit as they distort the performance of the Group as reported on a statutory basis. Other net gains and losses also includes costs related to business closures and acquisitions. Other net gains in 2021 largely relate to gains from the disposal of PIHE and the K12 Sistemas business in Brazil offset by costs related to the acquisition of Faethm and the wind-down of certain strategic review businesses. In 2020, they largely relate to the sale of the remaining interest in Penguin Random House (£180m gain). In 2019, other net gains largely relate to the sale of the US K-12 business . The Group operates in the following main geographic areas: Sales Non-current assets All figures in £ millions 2021 2020 2019 2021 2020 UK 355 319 385 582 669 Other European countries 249 216 244 123 129 US 2,182 2,335 2,417 2,146 2,362 Canada 111 91 105 225 147 Asia Pacific 359 251 441 192 149 Other countries 172 185 277 20 30 Total 3,428 3,397 3,869 3,288 3,486 Sales are allocated based on the country in which the customer is located. This does not differ materially from the location where the order is received. The geographical split of non-current Non-current |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Revenue from contracts with customers | 3. Revenue from contracts with customers The following tables analyse the Group’s revenue streams. Courseware includes curriculum materials provided in book form and/or via access The Group derived revenue from the transfer of goods and services over time and at a point in time in the following major product lines: 2021 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 44 — 109 — 283 198 634 Products and services transferred over time 14 — 26 — 558 33 631 58 — 135 — 841 231 1,265 Assessments Products transferred at a point in time 173 — 6 16 — — 195 Products and services transferred over time 973 — 72 119 — — 1,164 1,146 — 78 135 — — 1,359 Services Products transferred at a point in time — — 22 — — 14 36 Products and services transferred over time — 713 3 37 8 7 768 — 713 25 37 8 21 804 Total 1,204 713 238 172 849 252 3,428 2020 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 43 — 106 — 313 208 670 Products and services transferred over time 14 — 24 — 630 28 696 57 — 130 — 943 236 1,366 Assessments Products transferred at a point in time 138 — 3 7 — — 148 Products and services transferred over time 887 — 61 123 — — 1,071 1,025 — 64 130 — — 1,219 Services Products transferred at a point in time — — 22 — — 22 44 Products and services transferred over time — 692 2 33 13 28 768 — 692 24 33 13 50 812 Total 1,082 692 218 163 956 286 3,397 2019 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 50 — 152 — 492 260 954 Products and services transferred over time 14 — 22 — 594 66 696 64 — 174 — 1,086 326 1,650 Assessments Products transferred at a point in time 162 — 4 8 — — 174 Products and services transferred over time 1,054 — 91 145 — — 1,290 1,216 — 95 153 — — 1,464 Services Products transferred at a point in time — — 48 — — 38 86 Products and services transferred over time — 584 3 32 16 34 669 — 584 51 32 16 72 755 Total 1,280 584 320 185 1,102 398 3,869 a. Nature of goods and services The following is a description of the nature of the Group’s performance obligations within contracts with customers broken down by revenue stream, along with significant judgements and estimates made within each of those revenue streams. Courseware Key areas of estimation Revenue is generated from customers through the sales of print and digital courseware materials to schools, bookstores and direct to individual learners. Goods and services may be sold separately or purchased together in bundled packages. The goods and services included in bundled arrangements are considered distinct performance obligations, except for where Pearson provides both a licence of intellectual property and an ongoing hosting service. As the licence of intellectual property is only available with the concurrent hosting service, the licence is not treated as a distinct performance obligation separate from the hosting service. The transaction price is allocated between distinct performance obligations on the basis of their relative standalone selling prices. In determining the transaction price, variable consideration exists in the form of discounts and anticipated returns. Discounts reduce the transaction price on a given transaction. A provision for anticipated returns is made based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. Variable consideration as described above is determined using the expected value approach. The sales return liability at the end of 2021 was £83m (2020: £86m; 2019: £122m) (see note 24). This represents 13% of courseware sales transferred at a point in While payment for these goods and services generally occurs at the start of these arrangements, the length of time between payment and delivery of the performance obligations is generally short-term in nature or the reason for early payment relates to reasons other than financing, including customers securing a vendor in a longer-term arrangement or the transfer of goods or services is at the discretion of the customer. For these reasons and the use of the practical expedient on short-term financing, significant financing components are not recognised within Courseware transactions. Revenue from the sale of physical books is recognised at a point in time when control passes. This is generally at the point of shipment when title passes to the customer, when the Group has a present right to payment and the significant risks and rewards of ownership have passed to the customer. Revenue from physical books sold through the direct print rental method is recognised over the rental period, as the customer is simultaneously receiving and consuming the benefits of this rental service through the passage of time. Revenue from the sale of digital courseware products is recognised on a straight-line basis over the subscription period, unless hosted by a third-party or representative of a downloadable product, in which case Pearson has no ongoing obligation and recognises revenue when control transfers as the customer is granted access to the digital product. Revenue from the sale of ‘off-the-shelf’ Assessments Revenue is primarily generated from multi-year contractual arrangements related to large-scale assessment delivery, such as contracts to process qualifying tests for individual professions and government departments, and is recognised as performance occurs. Under these arrangements, while the agreement spans multiple years, the contract duration has been determined to be each testing cycle based on contract structure, including clauses regarding termination. While in some cases the customer may have the ability to terminate during the term for convenience, significant financial or qualitative barriers exist limiting the potential for such terminations in the middle of a testing cycle. Within each testing cycle, a variety of service activities are performed such as test administration, delivery, scoring, reporting, item development, operational services and programme management. These services are not treated as distinct in the context of the customer contract as Pearson provides an integrated managed service offering and these activities are accounted for together as one comprehensive performance obligation. Within each testing cycle, the transaction price may contain both fixed and variable amounts. Variable consideration within these transactions primarily relates to expected testing volumes to be delivered in the cycle. The assumptions, risks and uncertainties inherent to long-term contract accounting can affect the amounts and timing of revenue and related expenses reported. Variable consideration is measured using the expected value method, except where amounts are contingent upon a future event’s occurrence, such as performance bonuses. Such event-driven contingency payments are measured using the most likely amount approach. In estimating and constraining variable consideration, historical experience, current trends and local market conditions are considered. To the extent that a higher degree of uncertainty exists regarding variable consideration, these amounts are excluded from the transaction price and recognised when the uncertainty is reasonably removed. Customer payments are generally defined in the contract through a payment schedule, which may require customer acceptance for services rendered. Pearson has a history of providing satisfactory services which are accepted by the customer. While a delay between rendering of services and payment may exist, payment terms are within 12 months and the Group has elected to use the practical expedient available in IFRS 15 ‘Revenue from Contracts with Customers’ and not identify a significant financing component on these transactions. Revenue is recognised for Assessment contracts over time as the customer is benefiting as performance takes place through a continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts which may allow the customer to terminate for convenience, compensate us for work performed to date, and take possession of work in process. As control transfers over time, revenue is recognised based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgement and is based on the nature of the services provided. Revenue is recognised on a percentage of costs basis, calculated using the proportion of the total estimated costs incurred to date. From 2021, the proportion of estimated costs incurred to date is primarily based on historical cost analysis for similar groups of contracts, with regular true-ups Losses on contracts are recognised in the period in which the loss first becomes foreseeable. Contract losses are determined to be the amount by which estimated total costs of the contract exceed the estimated total revenues that will be generated. In Assessments contracts driven primarily by transactions directly to end users, Pearson’s main obligation to the customer involves test delivery and scoring. Test delivery and scoring are defined as a single performance obligation delivered over time whether the test is subsequently manually scored or digitally scored on the day of the assessment. Customers may also purchase print and digital supplemental materials. Print products in this revenue stream are recognised at a point in time when control passes to the customer upon shipment. Recognition of digital revenue will occur based on the extent of Pearson’s ongoing hosting obligation. Services Revenue is primarily generated from multi-year contractual arrangements related to large-scale educational service delivery to academic institutions, such as schools and higher education universities. Under these arrangements, while an agreement may span multiple years, the contract duration has been determined to be each academic period based on the structure of contracts, including clauses regarding termination. While in some cases the customer may have the ability to terminate during the term for convenience, significant financial or qualitative barriers exist limiting the potential for such terminations in the middle of an academic period. The academic period for this customer base is normally an academic year for schools and a semester for higher education universities. Within each academic period, a variety of services are provided such as programme development, student acquisition, education technology and student support services. These services are not distinct in the context of the customer contract as Pearson provides an integrated managed service offering and these activities are accounted for together as a comprehensive performance obligation. Where Services are provided to university customers, volume and transaction price are fixed at the start of the semester. Where Services are provided to school customers, the transaction price may contain both fixed and variable amounts which require estimation during the academic period. Estimation is required where consideration is based upon average enrolments or other metrics which are not known at the start of the academic year. Variable consideration is measured using the expected value method. Historical experience, current trends, local circumstances and customer-specific funding formulas are considered in estimating and constraining variable consideration. To the extent that a higher degree of uncertainty exists regarding variable consideration, these amounts are excluded from the transaction price and recognised when the uncertainty is reasonably removed. Customer payments are generally defined in the contract as occurring shortly after invoicing. Where there is a longer payment term offered to a customer through a payment schedule, payment terms are within 12 months and the Group has elected to use the practical expedient available in IFRS 15 and not identify a significant financing component on these transactions. Revenue is recognised for Service contracts over time as the customer is benefiting as performance takes place through a continuous transfer of control to the customer. This continuous transfer of control to the customer is supported by clauses in the contracts which may allow the customer to terminate for convenience, compensate for work performed to date, and take possession of work in process. As control transfers over time, revenue is recognised based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgement and is based on the nature of the products or services provided. Within the comprehensive service obligation, the timing of services occurs relatively evenly over each academic period and, as such, time elapsed is used to recognise the transfer of control to the customer on a straight-line basis. Losses on contracts are recognised in the period in which the loss first becomes foreseeable. Contract losses are determined to be the amount by which estimated total costs of the contract exceed the estimated total revenues that will be generated. In cases of optional or add-on b. Disaggregation of revenue The tables in notes 2 and 3 show revenue from contracts with customers disaggregated by operating segment, geography and revenue stream. These disaggregation categories are appropriate as they represent the key groupings used in managing and evaluating underlying performance of each of the businesses. The categories also reflect groups of similar types of transactional characteristics, among similar customers, with similar accounting conclusions. c. Contract balances Transactions within the Courseware revenue stream generally entail customer billings at or near the contract’s inception and accordingly Courseware deferred income balances are primarily related to subscription performance obligations to be delivered over time. Transactions within the Assessments and Services revenue streams generally entail customer billings over time based on periodic intervals, progress towards milestones or enrolment census dates. As the performance c. Contract balances continued obligations within these arrangements are delivered over time, the extent of accrued income or deferred income will ultimately depend upon the difference between revenue recognised and billings to date. Refer to note 22 for opening and closing balances of accrued income. Refer to note 24 for opening and closing balances of deferred income. Revenue recognised during the period from changes in deferred income was driven primarily by the release of revenue over time from digital subscriptions. d. Contract costs The Group capitalises incremental costs to obtain contracts with customers where it is expected these costs will be recoverable. Incremental costs to obtain contracts with customers are considered those which would not have been incurred if the contract had not been obtained. For the Group, these costs relate primarily to sales commissions. The Group has elected to use the practical expedient as allowable by IFRS 15 whereby such costs will be expensed as incurred where the expected amortisation period is one year or less. Where the amortisation period is greater than one year, these costs are amortised over the contract term on a systematic basis consistent with the transfer of the underlying goods and services within the contract to which these costs relate, which will generally be on a rateable basis. The Group does not recognise any material costs to fulfil contracts with customers as these types of activities are governed by other accounting standards. There were no deferred contract costs in 2021 or 2020. e. Remaining transaction price The below table depicts the remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers. 2021 All figures in £ millions Sales Deferred Committed Total remaining 2022 2023 2024 Courseware Products transferred at a point in time 634 1 — 1 1 — — Products and services transferred over time 631 93 — 93 60 11 22 Assessments Products transferred at a point in time 195 — — — — — — Products and services transferred over time 1,164 255 442 697 503 191 3 Services Products transferred at a point in time 36 — — — — — — Products and services transferred over time – subscriptions 290 13 10 23 23 — — Products and services transferred over time – other ongoing performance obligations 478 24 220 244 244 — — Total 3,428 386 672 1,058 831 202 25 2020 All figures in £ millions Sales Deferred Committed Total remaining 2021 2022 2023 Courseware Products transferred at a point in time 670 — — — — — — Products and services transferred over time 696 105 14 119 84 14 21 Assessments Products transferred at a point in time 148 1 — 1 1 — — Products and services transferred over time 1,071 217 413 630 426 203 1 Services Products transferred at a point in time 44 — — — — — — Products and services transferred over time – subscriptions 323 18 10 28 27 1 — Products and services transferred over time – other ongoing performance obligations 445 18 195 213 213 — — Total 3,397 359 632 991 751 218 22 2019 All figures in £ millions Sales Deferred Committed Total remaining 2020 2021 2022 Courseware Products transferred at a point in time 954 2 — 2 2 — — Products and services transferred over time 696 118 — 118 82 13 23 Assessments Products transferred at a point in time 174 — — — — — — Products and services transferred over time 1,290 206 375 581 433 146 2 Services 1 Products transferred at a point in time 86 2 — 2 2 — — Products and services transferred over time – subscriptions 310 11 — 11 11 — — Products and services transferred over time – other ongoing performance obligations 359 21 106 127 126 1 — Total 3,869 360 481 841 656 160 25 Committed sales amounts are equal to the transaction price from contracts with customers, excluding those amounts previously recognised as revenue and amounts currently recognised in deferred income. The total of committed sales and deferred income is equal to the remaining transaction price. Time bands stated above represent the expected timing of when the remaining transaction price will be recognised as revenue . |
Operating expenses
Operating expenses | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Operating expenses | 4. Operating expenses All figures in £ millions 2021 2020 2019 By function: Cost of goods sold 1,747 1,767 1,858 Operating expenses Distribution costs 62 59 73 Selling, marketing and product development costs 521 572 631 Administrative and other expenses 802 816 999 Restructuring costs 214 — 157 Other income (37 ) (45 ) (54 ) Total net operating expenses 1,562 1,402 1,806 Other net gains and losses (63 ) (178 ) (16 ) Total 3,246 2,991 3,648 Other income includes fr e . . In March 2021, the Group announced a major restructuring programme to run in 2021, principally comprising the reorganisation of the Group into five global business divisions and the simplification of the Group’s property portfolio. In May 2017, the Group announced a major restructuring programme to run between 2017 and 2019 to drive further significant cost savings. An analysis of major restructuring costs is as follows: All figures in £ millions 2021 2020 2019 By nature: Product costs 19 — 16 Employee costs 32 — 90 Impairment of non-current 145 — 14 Property and facilities 11 — 12 Technology and communications 3 — 2 Professional and outsourced services 4 — 17 General and administrative costs — — 6 Total restructuring – operating expenses 214 — 157 Share of associate restructuring — — 2 Total 214 — 159 All figures in £ millions Notes 2021 2020 2019 By nature: Royalties expensed 185 191 242 Other product costs 353 349 466 Employee benefit expense 5 1,365 1,337 1,452 Contract labour 69 67 139 Employee-related expense 21 30 94 Promotional costs 239 233 254 Depreciation and impairment of property, plant and equipment 10 241 125 123 Amortisation and impairment of intangible assets – product development 20 279 280 271 Amortisation and impairment of intangible assets – software 11 117 112 115 Amortisation and impairment of intangible assets – other 11 50 80 151 Property and facilities 124 85 96 Technology and communications 215 216 196 Professional and outsourced services 477 498 480 Other general and administrative costs 58 71 104 Costs capitalised (447 ) (460 ) (465 ) Other net gains and losses (63 ) (178 ) (16 ) Other income (37 ) (45 ) (54 ) Total 3,246 2,991 3,648 During the year the Group obtained the following services from the Group’s auditors, PwC: All figures in £ millions 2021 2020 2019 The audit of parent company and consolidated financial statements 5 5 5 The audit of the company’s subsidiaries 2 2 2 Total audit fees 7 7 7 Audit-related and other assurance services — — — Other non-audit — — — Total other services — — — Total non-audit — — — Total 7 7 7 Reconciliation between audit and non-audit All figures in £ millions 2021 2020 2019 Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act 7 7 7 Non-audit — — — Total 7 7 7 Fees for attestation under section 404 of the Sarbanes-Oxley Act are allocated between fees payable for the audits of consolidated and subsidiary accounts. Included in Group audit fees for 2020 are additional fees in relation to prior year audit work. |
Employee information
Employee information | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Employee information | 5. Employee information All figures in £ millions Notes 2021 2020 2019 Employee benefit expense Wages and salaries (including termination costs) 1,180 1,152 1,258 Social security costs 95 96 100 Share-based payment costs 26 28 29 25 Retirement benefits – defined contribution plans 25 37 47 57 Retirement benefits – defined benefit plans 25 25 13 13 Other post-retirement medical benefits 25 — — (1 ) Total 1,365 1,337 1,452 The details of the emoluments of the Directors of Pearson plc are shown in the report on Directors’ remuneration. Average number employed 2021 2020 2019 Employee numbers UK 3,395 3,304 3,309 Other European countries 878 886 927 US 11,757 11,432 12,286 Canada 593 648 694 Asia Pacific 2,738 2,812 2,800 Other countries 1,383 2,109 2,227 Total 20,744 21,191 22,243 2020 and 2019 employee numbers have been restated to be on a comparable basis to the current year. |
Net finance costs
Net finance costs | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Net finance costs | 6. Net finance costs All figures in £ millions Notes 2021 2020 2019 Interest payable on financial liabilities at amortised cost and associated derivatives (41 ) (38 ) (22 ) Interest on lease liabilities (27 ) (41 ) (45 ) Net foreign exchange losses — (6 ) (5 ) Derivatives not in a hedge relationship — (22 ) (12 ) Finance costs (68 ) (107 ) (84 ) Interest receivable on financial assets at amortised cost 5 9 15 Interest on lease receivables 6 9 11 Net finance income in respect of retirement benefits 25 4 6 13 Fair value remeasurement of disposal proceeds 6 26 — Net foreign exchange gains 1 — — Derivatives not in a hedge relationship 20 — 2 Finance income 42 50 41 Net finance costs (26 ) (57 ) (43 ) Net movement in the fair value of hedges is further explained in note 16. Derivatives not in a hedge relationship include fair value movements in the interest rate and cross-currency interest rate swaps. |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Income tax | 7. Income tax All figures in £ millions Notes 2021 2020 2019 Current tax Charge in respect of current year (96 ) (18 ) (51 ) Adjustments in respect of prior years (12 ) 4 21 Total current tax charge (108 ) (14 ) (30 ) Deferred tax In respect of temporary differences 98 (28 ) 59 Other adjustments in respect of prior years 13 (2 ) 5 Total deferred tax credit/(charge) 13 111 (30 ) 64 Total tax credit/(charge) 3 (44 ) 34 The adjustments in respect of prior years in 2021 2020 and 2019 primarily arise from revising the previous year’s reported tax provision to reflect the tax returns subsequently filed. This results in a change between deferred and current tax as well as an absolute benefit to the total tax charge . All figures in £ millions 2021 2020 2019 Profit before tax 157 354 232 Tax calculated at UK rate (2021: 19%, 2020: 19%: 2019: 19%) (30 ) (67 ) (44 ) Effect of overseas tax rates (23 ) (6 ) (2 ) Effect of UK rate change 25 (5 ) — Joint venture and associate income reported net of tax — 1 10 Intra-group financing benefit 7 14 11 Movement in provisions for tax uncertainties — 24 3 Net expense not subject to tax (9 ) (7 ) (10 ) Gains and losses on sale of businesses not subject to tax 4 21 57 Unrecognised tax losses 6 (21 ) (17 ) Benefit from changes in local tax law 11 — — Benefit from US accounting method changes 11 — — Adjustments in respect of prior years 1 2 26 Total tax credit/(charge) 3 (44 ) 34 UK 27 23 (12 ) Overseas (24 ) (67 ) 46 Total tax credit/(charge) 3 (44 ) 34 Tax rate reflected in earnings (1.8 )% 12.5 % (14.7 )% Key judgements Key areas of estimation Included in net expense not subject to tax are foreign taxes not creditable, the tax impact of share-based payments and other expenses not deductible. Factors which may affect future tax charges in tax legislation, transfer pricing regulations, the level and mix of profitability in different countries, and settlements with tax authorities. The movement in provisions for tax uncertainties primarily reflects releases due to the expiry of relevant statutes of limitation, settlement of certain audits and the establishment of provisions for new uncertain tax positions. The current tax liability of £125m (2020: £84m; 2019: £55m) includes £104m (2020: £104m; 2019: £152m) of provisions for tax uncertainties principally in respect of several matters in the US, the UK and China. The matters provided for include the allocation between territories of proceeds of historical business disposals and the potential disallowance of intra-group The Group is currently under audit in several countries, and the timing of any resolution of these audits is uncertain. Of the balance of £104m, £80m relates to 2017 and earlier. In most countries, tax years up to and Contingent liabilities relating to tax are disclosed in note 34. The tax benefit/(charge) recognised in other comprehensive income is as follows: All figures in £ millions 2021 2020 2019 Net exchange differences on translation of foreign operations 10 (13 ) 5 Fair value gain on other financial assets (3 ) (6 ) (4 ) Remeasurement of retirement benefit obligations (61 ) 2 22 (54 ) (17 ) 23 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Earnings per share | 8. Earnings per share Basic Basic earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the company (earnings) by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares purchased by the company and held as treasury shares. Diluted Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to take account of all dilutive potential ordinary shares and adjusting the profit attributable, if applicable, to account for any tax consequences that might arise from conversion of those shares. A dilution is not calculated for a loss. All figures in £ millions 2021 2020 2019 Earnings for the year 160 310 266 Non-controlling (1 ) — (2 ) Earnings attributable to equity shareholders 159 310 264 Weighted average number of shares (millions) 754.1 755.4 777.0 Effect of dilutive shares options (millions) 5.0 — 0.5 Weighted average number of shares (millions) for diluted earnings 759.1 755.4 777.5 Earnings per share (in pence per share) Basic 21.1 41.0 34.0 Diluted 20.9 41.0 34.0 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Dividends | 9. Dividends All figures in £ millions 2021 2020 2019 Final paid in respect of prior year 13.5 13.5 13.5 102 101 101 Interim paid in respect of current year 6.3 6.0 6.0 47 45 46 149 146 147 The Directors are proposing a final dividend in respect of the financial year ended 31 December 2021 of 14.2 n |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Property, plant and equipment | 10. Property, plant and equipment Right-of-use assets Owned assets All figures in £ millions Land and Plant and Land and Plant and Assets in Total Cost At 1 January 2020 460 23 300 325 36 1,144 Exchange differences (11 ) (2 ) (7 ) (11 ) (1 ) (32 ) Additions 62 — 7 5 37 111 Disposals and retirements (13 ) (9 ) (23 ) (29 ) (1 ) (75 ) Reclassifications and transfers — — 20 21 (50 ) (9 ) Transfer to assets classified as held for sale (59 ) — (1 ) (3 ) — (63 ) At 31 December 2020 439 12 296 308 21 1,076 Exchange differences — — 2 (3 ) — (1 ) Additions 32 — 8 17 39 96 Disposals and retirements (6 ) (7 ) (100 ) (72 ) — (185 ) Reclassifications and transfers — — 35 — (31 ) 4 Transfer to assets classified as held for sale — — (15 ) — — (15 ) At 31 December 2021 465 5 226 250 29 975 Right-of-use Owned assets All figures in £ millions Land and Plant and Land and Plant and Assets in Total Depreciation and impairment At 1 January 2020 (58 ) (16 ) (200 ) (252 ) — (526 ) Exchange differences 2 1 6 9 — 18 Charge for the year (65 ) (3 ) (25 ) (32 ) — (125 ) Disposals and retirements 1 9 22 29 — 61 Reclassifications and transfers — — (2 ) 2 — — Impairment of assets to be classified as held for sale (4 ) — — — — (4 ) Transfer to assets classified as held for sale 14 — — 1 — 15 At 31 December 2020 (110 ) (9 ) (199 ) (243 ) — (561 ) Exchange differences (1 ) 1 (1 ) 1 — — Charge for the year (46 ) (3 ) (16 ) (30 ) — (95 ) Disposals and retirements 7 6 99 71 — 183 Reclassifications and transfers — — (5 ) 7 — 2 Impairment (119 ) — (22 ) (5 ) — (146 ) Transfer to assets classified as held for sale — — 8 — — 8 At 31 December 2021 (269 ) (5 ) (136 ) (199 ) — (609 ) Carrying amounts At 1 January 2020 402 7 100 73 36 618 At 31 December 2020 329 3 97 65 21 515 At 31 December 2021 196 — 90 51 29 366 Key areas of estimation right-of-use Depreciation expense of £40m (2020: £44m) has been included in the income statement in cost of goods sold and £55m (2020: £81m) in operating expenses. The impairment charge of £146m (2020: £nil) has been included within operating expenses within the income statement. Property, plant and equipment assets are assessed for impairment triggers annually or when triggering events occur. In 2021, as part of a major restructuring programme, the Group simplified its property portfolio, reducing the overall office space required. All property related assets were assessed for impairment as a result of this triggering event and impairment charges of £141m have been recognised within costs of major restructuring (see note 4 for details). The recoverability of certain of the Group’s right-of-use . This involves the use of assumptions related to future subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. Should the future sublease outcomes be more or less favourable than the assumptions used by management this could result in additional impairment charges or reversals of impairment charges. Where there is vacant space in the right-of-use-assets, right-of-use right-of-use |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Intangible assets | 11. Intangible assets All figures in £ millions Goodwill Software Acquired Acquired Acquired Other Total Cost At 1 January 2020 2,139 1,039 793 238 179 413 4,801 Exchange differences (45 ) (24 ) (25 ) (19 ) (2 ) (48 ) (163 ) Additions – internal development — 80 — — — — 80 Additions – purchased — 1 — — — — 1 Disposals and retirements — (6 ) (17 ) (21 ) (80 ) (16 ) (140 ) Transfers — 14 — — — — 14 At 31 December 2020 2,094 1,104 751 198 97 349 4,593 Exchange differences 8 5 4 (2 ) — (2 ) 13 Additions – internal development — 110 — — — — 110 Additions – purchased — 2 — — — — 2 Disposals and retirements — (135 ) — (25 ) — (43 ) (203 ) Acquisition of subsidiary 43 — — — — 27 70 Disposal of subsidiary — — (14 ) (3 ) — (10 ) (27 ) Transfers — 1 — — — — 1 At 31 December 2021 2,145 1,087 741 168 97 321 4,559 All figures in £ millions Goodwill Software Acquired Acquired Acquired Other Total Amortisation and impairment At 1 January 2020 — (588 ) (588 ) (178 ) (176 ) (371 ) (1,901 ) Exchange differences — 18 23 13 2 46 102 Charge for the year — (112 ) (44 ) (14 ) (2 ) (8 ) (180 ) Impairment charge — — (2 ) — — (10 ) (12 ) Disposals — 6 17 21 81 15 140 At 31 December 2020 — (676 ) (594 ) (158 ) (95 ) (328 ) (1,851 ) Exchange differences — (5 ) (4 ) 1 (1 ) 4 (5 ) Charge for the year — (113 ) (34 ) (8 ) — (8 ) (163 ) Impairment charge — (4 ) — — — — (4 ) Disposals and retirements — 135 — 25 — 43 203 Disposal of subsidiary — — 12 2 — 10 24 Transfers — 6 — — — — 6 At 31 December 2021 — (657 ) (620 ) (138 ) (96 ) (279 ) (1,790 ) Carrying amounts At 1 January 2020 2,139 451 205 60 3 42 2,900 At 31 December 2020 2,094 428 157 40 2 21 2,742 At 31 December 2021 2,145 430 121 30 1 42 2,769 Goodwill The goodwill carrying value of £2,145m (2020: £2,094m) relates to acquisitions completed after 1 January 1998. Prior to 1 January 1998, all goodwill was written off to reserves on the date of acquisition. For acquisitions completed between 1 January 1998 and 31 December 2002, no value was ascribed to intangibles other than goodwill which was amortised over a period of up to 20 years. On adoption of IFRS on 1 January 2003, the Group chose not to restate the goodwill balance and at that date the balance was frozen (i.e. amortisation ceased). If goodwill had been restated, then a significant value would have been ascribed to other intangible assets, which would be subject to amortisation, and the carrying value of goodwill would be significantly lower. For acquisitions completed after 1 January 2003, value has been ascribed to other intangible assets which are amortised. Software and acquired intangible assets Acquired intangible assets are valued separately for each acquisition and the primary method of valuation used is the discounted cash flow method. The majority of acquired intangibles are amortised using an amortisation profile based on the projected cash flows underlying the acquisition date valuation of the intangible asset, which generally results in a larger proportion of amortisation being recognised in the early years of the asset’s life. The Group keeps the expected pattern of consumption under review. Other intangibles acquired includes technology. Amortisation of £25m (2020: £22m) is included in the income statement in cost of goods sold and £138m (2020: £158m) in operating expenses. Impairment charges of £4m (2020: £12m) are included in operating expenses within the income statement, of which £4m (2020: £nil) relates to software, £nil (2020: £2m) relates to customer lists, contracts and relationships, and £nil (2020: £10m) to other intangibles acquired. The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: 2021 Useful economic life Class of intangible asset Acquired customer lists, contracts and relationships 3-20 years Acquired trademarks and brands 2-20 years Acquired publishing rights 5-20 years Other intangibles acquired 2-20 years The expected amortisation profile of acquired intangible assets i s 2021 All figures in £ millions One to Six to Total Class of intangible asset Acquired customer lists, contracts and relationships 92 29 121 Acquired trademarks and brands 24 6 30 Acquired publishing rights 1 — 1 Other intangibles acquired 27 15 42 Impairment tests for cash-generating units (CGUs) containing goodwill Impairment tests have been carried out where appropriate as described below. Goodwill was allocated to CGUs, or an aggregation of CGUs, where goodwill could not be reasonably allocated to individual business units. CGUs have been revised in 2021. Impairment reviews were conducted on these revised CGUs as summarised below: 2021 CGUs 2021 All figures in £ millions Goodwill Assessment & Qualifications 1,198 Virtual Learning 395 English Language Learning 153 Workforce Skills 223 Higher Education 68 Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108 Total 2,145 2020 CGUs 2020 All figures in £ millions Goodwill North American Courseware — OPM 18 Virtual Schools 374 Assessments 1,002 International (includes the separate CGUs of Brazil, China, India and South Africa) 700 Total 2,094 Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair value less costs of disposal. The value in use was higher than the fair value less costs of disposal in each of the CGUs. Other than goodwill there are no intangible assets with indefinite lives. No impairments of goodwill were recorded in 2021 or 2020. In 2020, impairment charges of £12m were recognised in relation to acquired intangibles. Key judgements Key areas of estimation Determination of CGUs and reallocation of goodwill Pearson identifies its CGUs based on its operating model and how data is collected and reviewed for management reporting and strategic planning purposes in accordance with IAS 36 ‘Impairment of Assets’. In 2021, the CGUs and aggregations of CGUs were revised to take into account the announcement and implementation of a new strategy including five new business divisions and a strategic review division. The newly created CGUs and CGU aggregations reflect the level at which goodwill is monitored by management. Goodwill has been reallocated to the new CGUs and aggregations of CGUs. The majority of the goodwill balances have been directly mapped from one previous CGU (or CGU aggregation) to one newly created CGU (or CGU aggregation). Where it was not possible to directly map the goodwill it has been reallocated using a relative value method. The key area where the relative value method has been used is for the goodwill related to the previous International CGU aggregation which has been reallocated across the newly created CGU aggregations where applicable. Key assumptions For the purpose of estimating the value in use of the CGUs, management has used an income approach based on present value techniques. The calculations use cash flow projections based on financial budgets approved by management covering a five-year period. The key assumptions used by management in the value in use calculations were: Discount rates pre-tax pre-tax Perpetuity growth rates The key assumptions used by management in setting the financial budgets were as follows: Forecast sales growth rates COVID-19 low-mid mid-high low-high Operating profits COVID-19 The table below shows the key assumptions used by management in the value in use calculations. Discount rate Perpetuity Assessment & Qualifications 11.2 % 2.0 % Virtual Learning 10.9 % 2.0 % English Language Learning 9.1 % 3.0 % Workforce Skills 8.9 % 2.0 % Higher Education 11.1 % 2.0 % Strategic Review 8.9 - 17.1 % 2.0 - 5.0 % Sensitivities Impairment testing for the year ended 31 December 2021 has shown none of the CGUs, or groups of CGUs, as being sensitive to reasonably possible changes in key assumptions, including those related to climate change. The assets held in the Strategic Review CGUs are subject to a possible disposal process. Given the stage of the process the related assets have not been classified as held for sale at 31 December 2021. Valuation estimates obtained as part of this process were used by management to determine a fair value less costs to dispose valuation. This fair value less costs to dispose valuation results in a lower headroom position than the value in use method, however, it does not indicate impairment in any of the Strategic Review CGUs. |
Investments in joint ventures a
Investments in joint ventures and associates | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Investments in joint ventures and associates | 12. Investments in joint ventures and associates The amounts recognised in the balance sheet are as follows: All figures in £ millions 2021 2020 Associates 24 6 Total 24 6 The amounts recognised in the income statement are as follows: All figures in £ millions 2021 2020 Associates 1 5 Total 1 5 The Group has no material associates or joint ventures. In 2021, the Group acquired two associates. The largest of these is a 40% interest in the Academy of Pop (AOP) that was entered into on 31 August 2021, and had a year end carrying amount of £10m, of which £7m was still to be paid as at 31 December 2021 (see note 36). AOP is incorporated in Delaware and is a Limited Liability Company. It was set up with XIX Entertainment to create a new entertainment driven performing arts learning platform, which will offer coaching from renowned instructors, with a combination of physical locations and online learning. The Group’s 25% interest in Penguin Random House was disposed of in April 2020 (see note 31). Funds loaned to Penguin Random House were repaid at the point of disposal. Prior to the completion of the sale of Penguin Random House, the Group received dividends of £1m from Penguin Random House. There were no other material transactions with associates or joint ventures during 2021 or 2020. |
Deferred income tax
Deferred income tax | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Deferred income tax | 13. Deferred income tax All figures in £ millions 2021 2020 Deferred income tax assets 57 32 Deferred income tax liabilities (40 ) (62 ) Net deferred income tax asset/(liability) 17 (30 ) Substantially all of the deferred income tax assets are expected to be recovered after more than one year. Deferred income tax assets and liabilities shall be offset when there is a legally enforceable right to offset current income tax assets with current income tax liabilities and where the deferred income taxes relate to the same fiscal authority. At 31 December 2021, the Group has gross tax losses for which no deferred tax asset is recognised of £166m (2020: £166m) in respect of UK losses, £391m (2020: £369m) in respect of US losses and approximately £164m (2020: £300m) in respect of losses in other territories. The UK losses are capital losses which can be carried forward indefinitely. The US losses relate to federal and state taxes. Federal tax losses can be carried forward indefinitely; certain state tax losses may have expiry periods between one and 20 years. In the UK March Budget 2021, the Government announced that from 1 April 2023 the UK corporation tax rate will increase to 25%, and this was substantively enacted on 24 May 2021. UK deferred tax balances have been remeasured at the enacted rate. The UK corporation tax rate increase has resulted in an increase of £27m in the UK deferred tax liability associated with the UK Group pension plan asset position, which has been recognised in other comprehensive income. The UK corporation tax rate change is beneficial to the Group’s statutory tax rate as it increases the value of certain UK tax attributes of the Group, such as tax losses. Other gross deductible temporary for which no deferred tax asset is recognised total £22m (2020: £56m). The amount of temporary differences associated with subsidiaries for which no deferred tax has been provided is not material. Deferred income tax assets of £19m (2020: £20m) have been recognised in countries that reported a tax loss in either the current or preceding year. This primarily arises in Brazil in respect of tax deductible goodwill and tax losses. It is considered more likely than not that there will be sufficient future taxable profits to realise these assets. The recognition of the deferred income tax assets is supported by management’s forecasts of the future profitability of the relevant countries. In some cases deferred income tax assets are forecast to be recovered through taxable profits over a period that exceeds five years. Management consider these forecasts are sufficiently reliable to support the recovery of the assets. Where there are insufficient forecasts of future profits, deferred income tax assets have not been recognised. The movement in deferred income tax assets and liabilities during the year is as follows: All figures in £ millions Trading Accruals Retirement Deferred Goodwill and Interest Other Total Deferred income tax assets/ (liabilities) At 1 January 2020 89 34 (38 ) 41 (199 ) 57 27 11 Exchange differences 2 (3 ) (1 ) (2 ) 2 (4 ) (2 ) (8 ) Income statement (charge)/benefit (44 ) 4 (12 ) 6 (12 ) 23 5 (30 ) Tax benefit/(charge) in other comprehensive income — — 2 — — — (5 ) (3 ) At 31 December 2020 47 35 (49 ) 45 (209 ) 76 25 (30 ) Exchange differences — (1 ) — — (2 ) — 2 (1 ) Acquisition of subsidiaries 1 — — — 4 — — 5 Income statement benefit/(charge) 34 30 2 7 29 (21 ) 30 111 Tax charge in other comprehensive income — — (61 ) — — — (7 ) (68 ) At 31 December 2021 82 64 (108 ) 52 (178 ) 55 50 17 Other deferred income tax items include temporary differences in respect of share-based payments, depreciation and royalty advance s As at 31 December 2021, no deferred income tax assets or liabilities were classified as held for sale (2020: £nil). |
Classification of financial ins
Classification of financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Classification of financial instruments | 14. Classification of financial instruments The accounting classification of each class of the Group’s financial assets, and their carrying values, is as follows: 2021 2020 Fair value Amortised Fair value Amortised All figures in £ Notes Fair value Fair value Fair value Financial Total Fair value Fair value Fair value Financial Total Investments in unlisted securities 15 113 — — — 113 138 — — — 138 Cash and cash equivalents 17 — 84 — 853 937 — 93 — 1,004 1,097 Derivative financial instruments 16 — — 32 — 32 — 2 61 — 63 Trade receivables 22 — — — 854 854 — — — 803 803 Investment in finance lease receivable 22 — — — 115 115 — — — 130 130 Other receivable — 87 — — 87 — 96 — — 96 Total financial assets 113 171 32 1,822 2,138 138 191 61 1,937 2,327 The carrying value of the Group’s financial assets is equal to, or approximately equal to, the market value. The other receivable relates to the receivable which arose on the disposal of the US K-12 The accounting classification of each class of the Group’s financial liabilities, together with their carrying values and market values, is as follows: 2021 2020 Fair value Amortised Fair value Amortised All figures in £ millions Notes Fair value Fair value Other Total Total Fair value Fair value Other Total Total Derivative financial instruments 16 (12 ) (22 ) — (34 ) (34 ) (30 ) (22 ) — (52 ) (52 ) Trade payables 24 — — (351 ) (351 ) (351 ) — — (340 ) (340 ) (340 ) Bank loans and overdrafts 18 — — — — — — — (3 ) (3 ) (3 ) Other borrowings due within one year 18 — — (155 ) (155 ) (155 ) — — (251 ) (251 ) (249 ) Borrowings due after more than one year 18 — — (1,245 ) (1,245 ) (1,276 ) — — (1,397 ) (1,397 ) (1,451 ) Total financial liabilities (12 ) (22 ) (1,751 ) (1,785 ) (1,816 ) (30 ) (22 ) (1,991 ) (2,043 ) (2,095 ) The market value of leases has been stated at book value. Fair value measurement As shown above, the Group’s derivative assets and liabilities, unlisted securities and marketable securities are held at fair value. Financial instruments that are measured subsequently to initial recognition at fair value are grouped into levels 1 to 3, based on the degree to which the fair value is observable, as follows: Level 1 fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices). Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). The Group’s bonds valued at £767m (2020: £965m) and money market funds of £84m (2020: £93m) included within cash and cash equivalents are classified as level 1. The Group’s derivative assets valued at £32m (2020: £63m) and derivative liabilities valued at £34m (2020: £52m) are classified as level 2. The Group’s investments in unlisted securities are valued at £113m (2020: £138m) and the other receivable is valued at £87m (2020: £96m); both are classified as level 3. The following table analyses the movements in level 3 fair value remeasurements: 2021 2020 All figures in £ millions Other Investments Total Total At beginning of year 96 138 234 304 Exchange differences 1 1 2 (11 ) Acquisition of investments and other receivable — 4 4 6 Disposal of investments and other payables (16 ) (54 ) (70 ) (105 ) Fair value movements 6 24 30 40 At end of year 87 113 200 234 The fair value of the investments in unlisted securities is determined by reference to the financial performance of the underlying asset, recent funding rounds and amounts realised on the sale of similar assets. On initial recognition, the fair value of the other receivable, which arose on the disposal of the US K-12 K-12 |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Other financial assets | 15. Other financial assets All figures in £ millions 2021 2020 At beginning of year 138 122 Exchange differences 1 (4 ) Acquisition of investments 4 6 Disposal of investments (54 ) — Fair value movements 24 14 At end of year 113 138 Other financial assets are unlisted securities of £113m (2020: £138m) that are classified at fair value through other comprehensive income (FVOCI). The assets, which are not held for trading, relate to the Group’s interests in new and innovative educational ventures across the world. These are strategic investments and the Group considers the classification as FVOCI to be more relevant. None of the investments are individually significant to the financial statements and therefore sensitivities have not been provided. |
Derivative financial instrument
Derivative financial instruments and hedge accounting | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Derivative financial instruments and hedge accounting | 16. Derivative financial instruments and hedge accounting The Group’s approach to the management of financial risks is set out in note 19. The Group’s outstanding derivative financial instruments are as follows: 2021 2020 All figures in £ millions Gross notional Assets Liabilities Gross notional Assets Liabilities Interest rate derivatives – in a fair value hedge relationship 168 5 — 354 12 — Interest rate derivatives – not in a hedge relationship 217 — (9 ) 550 — (27 ) Cross-currency rate derivatives – in a hedge relationship 331 24 (21 ) 516 44 (20 ) FX derivatives – in a hedge relationship 237 3 (1 ) 193 5 (2 ) FX derivatives – not in a hedge relationship 193 — (3 ) 361 2 (3 ) Total 1,146 32 (34 ) 1,974 63 (52 ) Analysed as expiring: In less than one year 393 2 (4 ) 1,238 18 (12 ) Later than one year and not later than five years 679 30 (26 ) 663 45 (32 ) Later than five years 74 — (4 ) 73 — (8 ) Total 1,146 32 (34 ) 1,974 63 (52 ) The Group’s treasury policies only allow derivatives to be traded where the objective is risk mitigation. These are then designated for hedge accounting using the following criteria: • Where interest rate and cross-currency interest rate swaps are used to convert fixed rate debt to floating and we expect to receive inflows equal to the fixed rate debt interest, these are classified as fair value hedges • Where derivatives are used to create a future foreign currency liability to provide protection against currency movements affecting the valuation of an overseas investment, these are designated as a net investment hedge • If the derivative and the underlying hedged exposure would normally be revalued through the income statement and valuation changes are expected to be perfectly or near perfectly equal and opposite, these will not be classified in a hedge relationship. The Group’s fixed rate USD debt is held as fixed rate instruments at amortised cost. At 31 December 2021, £173m of the Group’s fixed rate euro debt is converted to a floating rate exposure using interest rate and cross-currency swaps. The Group receives interest under its euro debt related swap contracts to match the interest of 1.375% on its euro 2025 notes and, in turn, pays a floating USD LIBOR+ a spread of 1.36%. USD interest rate swaps are subsequently used to fix an element of the interest charge. The all-in The Group’s portfolio of rate derivatives is diversified by maturity, counterparty and type. Natural offsets between transaction within the portfolio and the designation of certain derivatives as hedge significantly reduce the risk of income statement volatility. The sensitivity of the portfolio to changes in market rates is set out in note 19. Fair value hedges The Group uses interest rate swaps and cross-currency swaps as fair value hedges of the Group’s euro issued debt. Interest rate exposure arises from movements in the fair value of the Group’s euro debt attributable to movements in euro interest rates. The hedged risk is the change in the euro bonds fair value attributable to interest rate movements. The hedged items are the Group’s euro bonds which are issued at a fixed rate. The hedging instruments are fixed to floating euro interest rate swaps where the Group receives fixed interest payments and pays three-month Euribor. As the critical terms of the interest rate swaps match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item will move in the opposite direction as a result of movements in the zero coupon Euribor curve. The hedge ratio is therefore expected to be 100%. Potential sources of hedge ineffectiveness are a reduction or modification in the hedged item or a material change in the credit risk of swap counterparties. A foreign currency exposure arises from foreign exchange fluctuations on translation of the Group’s euro debt into GBP. The hedged risk is the risk of changes in the GBPEUR spot rate that will result in changes in the value of the euro debt when translated into GBP. The hedged items are a portion of the Group’s euro bonds. The hedging instruments are floating cross currency swaps which mitigates an exposure to the effect of euro strengthening against GBP within the hedge item. As the critical terms of the cross-currency swap match the bonds, there is an expectation that the value of the hedging instrument and the value of the hedged item move in the opposite direction as a result of movements in the EUR:GBP exchange rate. The hedge ratio is 100%. Potential source of hedge ineffectiveness are a reduction or modification in the hedge item or a material change in the credit risk of swap counterparties. The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings: 2021 All figures in £ millions Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of Derivative financial instruments for interest rate risk 5 (5 ) 168 Derivative financial instruments for currency risk 24 (20 ) 168 2020 All figures in £ millions Carrying amount of Change in fair value of hedging instrument Nominal amounts of Derivative financial instruments for interest rate risk 12 — 354 Derivative financial instruments for currency risk 44 19 354 The amounts at the reporting date relating to items designated as hedge items were as follows: 2021 All figures in £ millions Carrying amount of hedged items Accumulated amount of fair value hedge Change in fair value Hedge Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities – borrowings (173 ) (4 ) 5 — n/a Currency risk Financial liabilities – borrowings (173 ) n/a 20 — n/a 2020 All figures in £ millions Carrying amount of hedged items Accumulated amount of fair value hedge Change in fair value Hedge Line item in profit or loss that includes hedge Interest rate risk Financial liabilities – borrowings (367 ) (9 ) — — n/a Currency risk Financial liabilities – borrowings (367 ) n/a (19 ) — n/a Hedge of net investment in a foreign operation A foreign currency exposure arises from the translation of the Group’s net investments in its subsidiaries which have USD, EUR and BRL functional currencies. The hedged risk is the risk of changes in the GBPUSD, GBPEUR and GBPBRL spot rates that will result in changes in the value of the Group’s net investment in its USD, EUR and BRL assets when translated into GBP. The hedged items are a portion of the Group’s assets which are denominated in USD, EUR and BRL. The hedging instruments are debt and derivative financial instruments, including cross-currency swaps, FX forwards (including non-deliverable It is expected that the change in value of each of these items will mirror each other as there is a clear and direct economic relationship between the hedging instrument and the hedged item in the hedge relationship. Hedge ineffectiveness would arise if the value of the hedged items fell below the value of the hedging instruments; however, this is unlikely as the value of the Group’s assets denominated in USD, EUR and BRL is significantly greater than the proposed net investment programme. The amounts related to items designated as hedging instruments were as follows: 2021 All figures in £ millions Carrying amount of Change in value of hedging instrument used Nominal amounts of Hedging Hedge profit or loss Derivative financial instruments (19 ) (2 ) (400 ) (2 ) — Financial liabilities – borrowings (240 ) 4 (240 ) 4 — 2020 All figures in £ millions Carrying amount of hedging Change in value to determine hedge Nominal amounts of Hedging OCI Hedge profit or loss Derivative financial instruments (17 ) 3 (355 ) 3 — Financial liabilities – borrowings (246 ) 1 (246 ) 1 — In addition to the above, £9m (2020: £15m) of hedging gains were recognised in OCI in relation to derivative financial instruments that matured during the year. In 2020, £14m of losses accumulated in the translation reserve are reclassified to the income statement as a result of the disposal of Penguin Random House. Included in the translation reserve is a cost of hedging reserve relating to the time value of FX collars which is not separately disclosed due to materiality. The value of that reserve will decrease over the life of the hedge transaction. The balance as at 1 January and 31 December 2021 was £1m. Offsetting arrangements with derivative counterparties All of the Group’s derivative financial instruments are subject to enforceable netting arrangements with individual counterparties, allowing net settlement in the event of default of either party. Derivative financial assets and liabilities subject to offsetting arrangements are as follows: 2021 2020 All figures in £ millions Gross Gross Net Gross Gross Net Counterparties in an asset position 17 (12 ) 5 35 (10 ) 25 Counterparties in a liability position 15 (22 ) (7 ) 28 (42 ) (14 ) Total as presented in the balance sheet 32 (34 ) (2 ) 63 (52 ) 11 All of the Group’s derivative financial instruments are subject to enforceable netting arrangements with individual counterparties, allowing net settlement in the event of default of either party. Offset arrangements in respect of cas h Counterparty exposure from all derivatives is managed, together with that from deposits and bank account balances, within credit limits that reflect published credit ratings and by reference to other market measures (e.g. market prices for credit default swaps) to ensure that there is no significant exposure to any one counterparty’s credit risk. The Group has no material embedded derivatives that are required to be separately accounted for in accordance with IFRS 9 ‘Financial Instruments’. |
Cash and cash equivalents (excl
Cash and cash equivalents (excluding overdrafts) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Cash and cash equivalents (excluding overdrafts) | 17. Cash and cash equivalents (excluding overdrafts) All figures in £ millions 2021 2020 Cash at bank and in hand 660 599 Short-term bank deposits 277 498 937 1,097 Short-term bank deposits are invested with banks and earn interest at the prevailing short-term deposit rates. At the end of 2021, the currency split of cash and cash equivalents was US dollar 37% (2020: 14%), sterling 24% (2020: 64%), and other 39% (2020: 22%). Cash and cash equivalents have fair values that approximate to their carrying value due to their short-term nature. Cash and cash equivalents include the following for the purpose of the cash flow statement: All figures in £ millions 2021 2020 Cash and cash equivalents 937 1,116 Bank overdrafts — (3 ) 937 1,113 There is no cash and cash equivalents balance classified as held for sale (2020: £19m). The Group has certain cash pooling arrangements in US dollars, sterling and Canadian dollars where both the company and the bank have a legal right of offset. Offsetting amounts are presented gross in the balance sheet. Offset arrangements in respect of derivatives are shown in note 16. |
Financial liabilities - borrowi
Financial liabilities - borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Financial liabilities - borrowings | 18. Financial liabilities – borrowings The Group’s current and non-current All figures in £ millions 2021 2020 Non-current 3.75% US dollar notes 2022 117 — 86 3.25% US dollar notes 2023 (nominal amount $94m) 70 69 1.375% euro notes 2025 (nominal amount €300m) 257 279 3.75% GBP notes 2030 (nominal amount £350m) 353 353 Lease liabilities (see note 35) 565 610 1,245 1,397 Current (due within one year or on demand) Bank loans and overdrafts — 3 1.875% euro notes 2021 (nominal amount €195m) — 178 3.75% US dollar notes 2022 (nominal amount $117m) 87 — Lease liabilities (see note 35) 68 73 155 254 Total borrowings 1,400 1,651 Included in the non-current no non-current 66 3 non-current All figures in £ millions 2021 2020 Between one and two years 140 160 Between two and five years 435 531 Over five years 670 706 1,245 1,397 The carrying amounts and market values of borrowings are as follows: 2021 2020 All figures in £ millions Effective Carrying Market Effective Carrying Market Bank loans and overdrafts n/a — — n/a 3 3 1.875% euro notes 2021 n/a — — 2.04 % 178 176 3.75% US dollar notes 2022 3.94 % 87 87 3.94 % 86 88 3.25% US dollar notes 2023 3.36 % 70 71 3.36 % 69 71 1.375% euro notes 2025 1.44 % 257 260 1.44 % 279 278 3.75% GBP notes 2030 3.93 % 353 380 3.93 % 353 404 767 798 968 1,020 The market values stated above are based on clean market prices at the year end or, where these are not available, on the quoted market prices of comparable debt issued by other companies. The effective interest rates above relate to the underlying debt instruments. The carrying amounts of the Group’s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact of derivatives) are denominated in the following currencies: All figures in £ millions 2021 2020 US dollar 434 458 Sterling 674 686 Euro 268 472 Other 24 35 1,400 1,651 The Group has $1.19bn (£0.9bn) of undrawn capacity on its committed borrowing facilities as at 31 December 2021 (2020: $1.19bn (£0.9bn) undrawn). In addition, there are a number of short-term facilities that are utilised in the normal course of business. All of the Group’s borrowings are unsecured. In respect of lease obligations, the rights to the leased asset revert to the lessor in the event of default. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Financial risk management | 19. Financial risk management The Group’s approach to the management of financial risks together with sensitivity analyses of its financial instruments is set out below. Treasury policy Pearson’s treasury policies set out the Group’s principles for addressing key financial risks including capital risk, liquidity risk, foreign exchange risk and interest rate risk, and sets out measurable targets for each. The Audit Committee receives quarterly reports incorporating compliance with measurable targets and reviews and approves any changes to treasury policies annually. The treasury function is permitted to use derivatives where their use reduces a risk or allows a transaction to be undertaken more cost effectively. Derivatives permitted include swaps, forwards and collars to manage foreign exchange and interest rate risk, with foreign exchange swap and forward contracts the most commonly executed. Speculative transactions are not permitted. Capital risk The Group’s objectives when managing capital are: • To maintain a strong balance sheet and a solid investment grade rating; • To continue to invest in the business organically and through acquisitions; and • To have a sustainable and progressive dividend policy. In September 2021, Standard & Poor’s Financial Services LLC withdrew its ratings at the request of the Group. Fitch Ratings Limited assigned a first-time Long-Term Issuer Default Rating (“IDR”) of ‘BBB-’ BBB- Net debt The Group’s net debt position is set out below: All figures in £ millions 2021 2020 Cash and cash equivalents 937 1,116 Derivative financial instruments (2 ) 11 Bank loans and overdrafts — (3 ) Bonds (767 ) (965 ) Investment in finance lease receivable 115 130 Lease liabilities (633 ) (752 ) Net debt (350 ) (463 ) At 31 December 2020, net debt presented above includes borrowings of £69m and cash and cash equivalents of £19m which are included in assets and liabilities held for sale. There are no balances held for sale as at 31 December 2021. Interest and foreign exchange rate management The Group’s principal currency exposure is to the US dollar which represents more than 60% of the Group’s sales. The Group’s long-term debt is primarily held in US dollars to provide a natural hedge of this exposure, which is achieved through issued US dollar debt or converting euro debt to US dollars using cross-currency swaps, forwards and collars. As at 31 December 2021 and 2020, the Group’s debt of £1,400m (2020: £1,651m) is all held at fixed rates. See note 16 for details of the Group’s hedging programme which addresses interest rate risk and foreign currency risk. Overseas profits are converted to sterling to satisfy sterling cash outflows such as dividends at the prevailing spot rate at the time of the transaction. To the extent the Group has sufficient sterling, US dollars may be held as dollar cash to provide a natural offset to the Group’s debt or to satisfy future US dollar cash outflows. The Group does not have significant cross-border foreign exchange transactional exposures. Interest and foreign exchange rate management continued As at 31 December 2021, the sensitivity of the carrying value of the Group’s financial instruments to fluctuations in interest rates and exchange rates is as follows: 2021 All figures in £ millions Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 113 — — (9 ) 11 Other receivable 87 — — (8 ) 10 Cash and cash equivalents 937 — — (43 ) 53 Derivative financial instruments (2 ) 6 (6 ) (1 ) 1 Bonds (767 ) 5 (5 ) 37 (45 ) Other borrowings (633 ) — — 57 (70 ) Investment in finance lease receivable 115 — — (11 ) 13 Other net financial assets 503 — — (42 ) 51 Total 353 11 (11 ) (20 ) 24 2020 All figures in £ millions Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 138 — — (11 ) 13 Other receivable 96 — — (9 ) 11 Cash and cash equivalents 1,097 — — (55 ) 25 Derivative financial instruments 11 17 (19 ) 3 1 Bonds (965 ) 9 (9 ) 54 (67 ) Other borrowings (686 ) — — 62 (76 ) Investment in finance lease receivable 130 — — (12 ) 14 Other net financial assets 463 — — (44 ) 40 Total 284 26 (28 ) (12 ) (39 ) The table above shows the sensitivities of the fair values of each class of financial instrument to an isolated change in either interest rates or foreign exchange rates. Other net financial assets comprises trade receivables less trade payables. A significant proportion of the movements shown above would impact equity rather than the income statement due to the location and functional currency of the entities in which they arise and the availability of net investment hedging. The Group’s income statement is reported at average rates for the year while the balance sheet is translated at the year-end year-end year-end Liquidity and refinancing risk management The Group regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the next three to five years, determining the level of debt facilities Liquidity and refinancing risk management continued required to fund the business, planning for shareholder returns and repayments of maturing debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows. At 31 December 2021, the Group had cash of £0.9bn (2020: £1.1bn) and no outstanding drawings (2020: £nil) on the US dollar denominated revolving credit facility due 2025 of $1.19bn (2020: $1.19bn). The $1.19bn facility contains interest cover and leverage covenants which the Group has complied with for the year ended 31 December 2021. The maturity of the carrying values of the Group’s borrowings and trade payables are set out in notes 18 and 24 respectively. At the end of 2021, the currency split of the Group’s trade payables was US dollar £199m (2020: £195m), sterling £76m (2020: £76m) and other currencies £76m (2020: £69m). Trade payables are all due within one year (2020: all due within one year). The table below analyses the Group’s bonds and derivative assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Short dated derivative instruments have not been included in this table. The amounts disclosed in the table are the contractual undiscounted cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet. Financial counterparty and credit risk management Financial counterparty and credit risk arises from cash and cash equivalents, favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables. Counterparty credit limits, which take published credit rating and other factors into account, are set to cover the Group’s total aggregate exposure to a single financial institution. The limits applicable to published credit rating bands are approved by the Chief Financial Officer within guidelines approved by the Board. Exposures and limits applicable to each financial institution are reviewed on a regular basis. Analysed by maturity Analysed by currency All figures in £ millions Greater than Later than Five years Total USD GBP Other Total At 31 December 2021 Bonds 107 386 403 896 162 468 266 896 Rate derivatives – inflows (7 ) (331 ) — (338 ) (9 ) (150 ) (179 ) (338 ) Rate derivatives – outflows 12 339 4 355 203 150 2 355 FX forwards – inflows (148 ) — — (148 ) — (148 ) — (148 ) FX forwards – outflows 148 — — 148 90 — 58 148 Total 112 394 407 913 446 320 147 913 At 31 December 2020 Bonds 200 497 416 1,113 166 481 466 1,113 Rate derivatives – inflows (186 ) (350 ) (1 ) (537 ) (12 ) (152 ) (373 ) (537 ) Rate derivatives – outflows 180 350 12 542 209 330 3 542 FX forwards – inflows (68 ) — — (68 ) — (68 ) — (68 ) FX forwards – outflows 68 — — 68 36 — 32 68 Total 194 497 427 1,118 399 591 128 1,118 Financial counterparty and credit risk management continued Cash deposits and derivative transactions are made with approved counterparties up to pre-agreed limits. To manage counterparty risk associated with cash and cash equivalents, the Group uses a mixture of money market funds as well as bank deposits. As at 31 December 2021, 81% (2020: 88%) of cash and cash equivalents was held with investment grade bank counterparties, 9% (2020: 9%) with AAA money market funds and 10% (2020: 3%) with non-investment grade bank counterparties. For trade receivables and contract assets, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, risk associated with the industry and country in which customers operate may also influence the credit risk. The credit quality of customers is assessed by taking into account financial position, past experience and other relevant factors. Individual credit limits are set for each customer based on internal ratings. The compliance with credit limits is regularly monitored by the Group. A default on a trade receivable is when the counterparty fails to make contractual payments within the stated payment terms. Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. The carrying amounts of financial assets, trade receivables and contract assets represent the maximum credit exposure. Trade receivables and contract assets are subject to impairment using the expected credit loss model. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. See note 22 for further details about trade receivables and contract assets including movements in provisions for bad and doubtful debts. Amendments to IFRS 9 and IFRS 7 Interest Rate Benchmark Reform In August 2020, the IASB published ‘Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)’ with amendments that address financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments were effective for annual periods beginning on or after 1 January 2021, with earlier application permitted. The Group has limited exposure to changes in the IBOR benchmark. At 31 December 2021, the Group holds interest rate and cross-currency interest rate swaps (£29m assets in fair value hedge relationships and £29m liabilities of which £21m are in net investment hedge relationships). In addition, the Group has a revolving credit facility which was not drawn on 31 December 2021, for which the terms were updated in the period in accordance with industry standards. The Group has signed up to the ISDA protocol. For GBP exposures the Group transitioned GBP LIBOR to SONIA. The Group’s risk management strategy has not changed as a result of IBOR reform and the Group considers the impact of IBOR reform to be immaterial to the financial statements. |
Intangible assets - product dev
Intangible assets - product development | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Intangible assets – product development | 20. Intangible assets – product development All figures in £ millions 2021 2020 Cost At 1 January 2,514 2,275 Exchange differences — (48 ) Additions 287 323 Disposals and retirements (92 ) (31 ) Disposal of subsidiary (9 ) — Transfers (2 ) (5 ) At 31 December 2,698 2,514 Amortisation At 1 January (1,609 ) (1,405 ) Exchange differences (3 ) 45 Charge for the year (260 ) (280 ) Impairment (19 ) — Disposals and retirements 92 31 Disposal of subsidiary 3 — Transfers (8 ) — At 31 December (1,804 ) (1,609 ) Carrying amounts at 31 December 2021 894 905 Included in the above are product development assets amounting to £601m (2020: £607m) which will be realised in more than one year. Amortisation is included in the income statement in cost of goods sold. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2021, of the £19m impairment charges, £14m have been recognised as a result of asset write-offs related to the major restructuring programme. The full annual impairment test showed that there is adequate headroom across all product development assets and accordingly no further impairment charges were recognised in 2021 (2020: £nil ; 2019: £nil). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Inventories | 21. Inventories All figures in £ millions 2021 2020 Raw materials 7 5 Work in progress 2 2 Finished goods 84 116 Returns asset 5 6 98 129 The cost of inventories recognised as an expense and included in the income statement in cost of goods sold amounted to £171m (2020: £219m) including £22m (2020: £41m) of inventory provisions. None of the inventory is pledged as security. Included within the inventory balance is the estimation of the right to receive goods from contracts with customers via returns. The value of the returns asset is measured at the carrying amount of the assets at the time of sale aligned to the Group’s normal inventory valuation methodology less any expected costs to recover the asset and any expected reduction in value. Impairment charges against the inventory returns asset are £nil in 2021 (2020: £nil). The returns asset all relates to finished goods. The obsolescence provision takes account of the Group’s digital first strategy and the increasing shift towards print on demand. The year-on-year reduction in inventories is due to increased provisions for obsolescence and a reduction in the production of inventory due to the Group’s digital first strategy and the increasing shift towards print on demand. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Trade and other receivables | 22. Trade and other receivables All figures in £ millions 2021 2020 Current Trade receivables 853 795 Royalty advances 2 2 Prepayments 198 189 Investment in finance lease receivable 15 18 Accrued income 14 12 Other receivables 175 102 1,257 1,118 Non-current Trade receivables 1 8 Royalty advances 5 3 Prepayments 10 13 Investment in finance lease receivable 100 112 Accrued income 1 1 Interest receivable 8 — Other receivables 4 86 129 223 Accrued income represents contract assets which are unbilled amounts generally resulting from assessments and services revenue streams where revenue to be recognised over time has been recognised in excess of customer billings to date. Impairment charges on accrued income assets are £nil (2020: £nil). The carrying value of the Group’s trade and other receivables approximates its fair value. Trade receivables are stated net of provisions for bad and doubtful debts. In addition to the above, there are trade receivables of £nil (2020: £6m) classified as held for sale (see note 32). The movements in the provision for bad and doubtful debts are as follows: All figures in £ millions 2021 2020 At beginning of year (74 ) (92 ) Exchange differences — 6 Income statement movements (15 ) (26 ) Utilised 26 32 Disposal of subsidiary — 6 At end of year (63 ) (74 ) Concentrations of credit risk with respect to trade receivables are limited due to the Group’s large number of customers, who are internationally dispersed. The ageing of the Group’s gross trade receivables is as follows: All figures in £ millions 2021 2020 Within due date 766 687 Up to three months past due date 58 73 Three to six months past due date 20 12 Six to nine months past due date 13 30 Nine to 12 months past due date 5 18 More than 12 months past due date 55 57 Gross trade receivables 917 877 The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances and historical payment profiles, and assessment of forward-looking risk factors including, where relevant, factors specifically related to COVID-19. The increase in trade receivables held by the Group is driven by revenue growth which has increased debtors despite strong collections and an overall reduction in the bad debt provision. Other non-current K-12 |
Provisions for other liabilitie
Provisions for other liabilities and charges | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Provisions for other liabilities and charges | 23. Provisions for other liabilities and charges All figures in £ millions Property Disposals Legal Total At 1 January 2021 8 4 21 33 Exchange differences — — 2 2 Provisions made during the year 9 1 36 46 Provisions reversed during the year (2 ) — (2 ) (4 ) Provisions used during the year — — (27 ) (27 ) Disposal of subsidiary — (3 ) — (3 ) At 31 December 2021 15 2 30 47 Analysis of provisions: 2021 All figures in £ millions Property Disposals Legal Total Current 11 2 27 40 Non-current 4 — 3 7 15 2 30 47 2020 Current 2 4 19 25 Non-current 6 — 2 8 8 4 21 33 Property provisions in 2021 relate to the simplification of the Group’s property portfolio (see note 4) and in 2020 relate primarily to dilapidations. Disposals and closures relate to the disposal of the Pearson Institute of Higher Education. Legal and other includes legal claims, contract disputes and potential contract losses with the provisions utilised as the cases are settled. Also included in legal and other are other restructuring provisions that are generally utilised within one year. The year on year increase in provisions is mainly due to the new property provisions (see note 10) and the 2021 major restructuring programme (see note 4). |
Trade and other liabilities
Trade and other liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Trade and other liabilities | 24. Trade and other liabilities All figures in £ millions 2021 2020 Trade payables 351 340 Sales return liability 83 86 Social security and other taxes 13 17 Accruals 317 290 Deferred income 386 356 Interest payable 42 30 Other liabilities 159 157 1,351 1,276 Less: non-current portion Accruals 1 — Deferred income 56 52 Other liabilities 38 28 95 80 Current portion 1,256 1,196 The carrying value of the Group’s trade and other liabilities approximates its fair value. The deferred income balance comprises contract liabilities in respect of advance payments in assessment, testing and training businesses; subscription income in school and college businesses; and obligations to deliver digital content in future periods. In addition to the above, there are accruals of £nil (2020: £2m) and deferred income of £nil (2020:£3m) classified as held for sale (see note 32). The increase in trade and other liabilities held by the Group is driven by timing differences which have increased deferred income, an increase in accruals related to severance and the recognition of deferred consideration in relation to acquisitions made in 2021. |
Retirement benefit and other po
Retirement benefit and other post-retirement obligations | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Retirement benefit and other post-retirement obligations | 25. Retirement benefit and other post-retirement obligations Background The Group operates a number of defined benefit and defined contribution retirement plans throughout the world. The largest plan is the Pearson Pension Plan (UK Group plan) in the UK, which is sectionalised to provide both defined benefit and defined contribution pension benefits. The defined benefit section was largely closed to new members from 1 November 2006. The defined contribution section, opened in 2003, is open to new and existing employees. Finally, there is a separate section within the UK Group plan set up for auto-enrolment. The defined benefit section of the UK Group plan is a final salary pension plan which provides benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits depends on the length of service and final pensionable pay. The defined contribution section of the UK Group plan operates a Reference Scheme Test (RST) pension underpin for its members. Where a member’s fund value is insufficient to purchase the RST pension upon retirement, the UK Group plan is liable for the shortfall to cover the member’s RST pension. In addition, in recent years, the scheme rules were amended to enable members who have sufficient funds to purchase an RST pension the ability to convert their fund value into a pension in the UK Group plan as an alternative to purchasing an annuity with an insurer. The Group recognises any assets and liabilities relating to these features of the defined contribution section as part of the overall UK Group plan obligation. From 1 January 2021, the Group also recognized the assets and liabilities for all members of the defined contribution section of the UK Group plan, accounting for the whole defined contribution section as a defined benefit scheme under IAS 19 ‘Employee Benefits’ as there is a risk the underpin will require the Group to pay further contributions to the scheme. The net impact of this on the balance sheet is £nil. The UK Group plan is funded with benefit payments from trustee-administered funds. The UK Group plan is administered in accordance with the Trust Deed and Rules in the interests of its beneficiaries by Pearson Group Pension Trustee Limited. At 31 December 2021, the UK Group plan had approximately 26,500 members, analysed in the following table: All figures in% Active Deferred Pensioners Total Defined benefit — 18 33 51 Defined contribution 11 38 — 49 Total 11 56 33 100 The other major defined benefit plans are based in the US. These are also final salary pension plans which provide benefits to members in the form of a guaranteed pension payable for life, with the level of benefits dependent on length of service and final pensionable pay. The majority of the US plans are fully funded. Background continued The Group also has several post-retirement medical benefit plans (PRMBs), principally in the US. PRMBs are unfunded but are accounted for and valued similarly to defined benefit pension plans. The defined benefit schemes expose the Group to actuarial risks, such as life expectancy, inflation risks and investment risk including asset volatility and changes in bond yields. The Group is not exposed to any unusual, entity-specific or plan-specific risks. Key judgements Key areas of estimation Assumptions The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the other plans, which primarily relate to US pension plans. 2021 2020 2019 All figures in % UK Group Other plans PRMB UK Group Other plans PRMB UK Group Other plans PRMB Inflation 3.3 1.4 — 2.9 0.6 — 3.0 1.7 1.5 Rate used to discount plan liabilities 1.9 2.8 2.6 1.4 2.2 2.1 2.0 3.0 3.1 Expected rate of increase in salaries 3.8 2.7 — 3.4 2.2 — 3.5 2.9 3.0 Expected rate of increase for pensions in payment and deferred pensions 2.35 to 5.10 — — 2.05 to 5.05 — — 1.85 to 5.05 — — Initial rate of increase in healthcare rate — — 6.3 — — 6.5 — — 6.8 Ultimate rate of increase in healthcare rate — — 5.0 — — 5.0 — — 5.0 The UK discount rate is based on corporate bond yields adjusted to reflect the duration of liabilities. The inflation rate for the UK Group plan of 3.3% (2020: 2.9%; 2019: 3.0%) reflects the RPI rate. In line with changes to legislation in 2010, certain benefits have been calculated with reference to CPI as the inflationary measure and in these instances a rate of 2.6% (2020: 2.2%; 2019: 2.0%) has been used. The CPI rate is determined as a weighted average deduction from the RPI rate, and allows for the expected change to the formula for calculating RPI to be in line with CPIH from 2030 onwards. The expected rate of increase in salaries has been set at 3.8% for 2021 (2020: 3.4%; 2019: 3.5%). Assumptions continued For the UK Group plan, the mortality base table assumptions have been updated and are derived from the SAPS S3 for males and females, adjusted to reflect the observed experience of the plan, with CMI model improvement factors. A 1.5% long-term rate improvement on the CMI 2020 model is applied for both males and females. The analysis of experience, and standard tables, do not reflect the impact of the ongoing COVID-19 For the US plans, the mortality table (Pri – 2012) and 2021 improvement scale (MP – 2021) with generational projection for male and female annuitants has been adopted. Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the UK Group plan and US plans is as follows: UK US All figures in years 2021 2020 2021 2020 Male 22.6 24.0 20.5 20.4 Female 24.8 24.3 22.5 22.4 The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans is as follows: UK US All figures in years 2021 2020 2021 2020 Male 24.2 25.6 22.0 21.9 Female 26.5 26.1 23.9 23.8 Although the Group anticipates that plan surpluses will be utilised during the life of the plan to address member benefits, the Group recognises its pension surplus in full in respect of the UK Group plan on the basis that it is management’s judgement that there are no substantive restrictions on the return of residual plan assets in the event of a winding up of the plan after all member obligations have been met. Financial statement information The amounts recognised in the income statement are as follows: 2021 All figures in £ millions UK Defined Sub-total Defined contribution PRMB Total Current service cost 17 2 19 37 — 56 Past service cost — — — — — — Curtailments — — — — — — Administration expenses 6 — 6 — — 6 Total operating expense 23 2 25 37 — 62 Interest on plan assets (55 ) (2 ) (57 ) — — (57 ) Interest on plan liabilities 49 3 52 — 1 53 Net finance (income)/expense (6 ) 1 (5 ) — 1 (4 ) Net income statement charge 17 3 20 37 1 58 Financial statement information continued 2020 All figures in £ millions UK Defined Sub-total Defined contribution PRMB Total Current service cost 6 2 8 47 — 55 Past service cost 1 — 1 — — 1 Curtailments — (1 ) (1 ) — — (1 ) Administration expenses 5 — 5 — — 5 Total operating expense 12 1 13 47 — 60 Interest on plan assets (66 ) (3 ) (69 ) — — (69 ) Interest on plan liabilities 57 5 62 — 1 63 Net finance (income)/expense (9 ) 2 (7 ) — 1 (6 ) Net income statement charge 3 3 6 47 1 54 2019 All figures in £ millions UK Defined Sub-total Defined PRMB Total Current service cost 6 3 9 57 — 66 Past service cost — — — — — — Curtailments (2 ) — (2 ) — (1 ) (3 ) Administration expenses 6 — 6 — — 6 Total operating expense 10 3 13 57 (1 ) 69 Interest on plan assets (89 ) (5 ) (94 ) — — (94 ) Interest on plan liabilities 73 6 79 — 2 81 Net finance (income)/expense (16 ) 1 (15 ) — 2 (13 ) Net income statement charge (6 ) 4 (2 ) 57 1 56 The amounts recognised in the balance sheet are as follows: 2021 2020 All figures in £ millions UK plan Other plans Other Total UK Other plans Other Total Fair value of plan assets 4,125 120 — 4,245 3,588 119 — 3,707 Present value of defined benefit obligation (3,588 ) (123 ) (20 ) (3,731 ) (3,178 ) (135 ) (21 ) (3,334 ) Net pension asset/(liability) 537 (3 ) (20 ) 514 410 (16 ) (21 ) 373 Other post-retirement medical benefit obligation (34 ) (39 ) Other pension accruals (9 ) (9 ) Net retirement benefit asset 471 325 Analysed as: Retirement benefit assets 537 410 Retirement benefit obligations (66 ) (85 ) The following gains/(losses) have been recognised in other comprehensive income: All figures in £ millions 2021 2020 2019 Amounts recognised for defined benefit plans 145 (24 ) (148 ) Amounts recognised for post-retirement medical benefit plans 4 1 3 Total recognised in year 149 (23 ) (145 ) The fair value of plan assets comprises the following: 2021 2020 All figures in % UK Group Other Total UK Group Other Total Insurance 35 — 35 42 — 42 Equities 11 1 12 1 1 2 Fixed interest securities 7 2 9 5 1 6 Property 5 — 5 5 — 5 Pooled asset investment funds 30 — 30 34 — 34 Other 9 — 9 11 — 11 The plan assets do not include any of the Group’s own financial instruments, or any property occupied by the Group. The table below further disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not: 2021 2020 All figures in % Quoted market price No quoted market price Quoted market price No quoted market price Insurance 35 — 42 — Equities 11 1 — 2 Fixed-interest securities 9 — 6 — Property — 5 — 5 Pooled asset investment funds 30 — 34 — Other — 9 — 11 Total 85 15 82 18 The liquidity profile of the UK Group plan assets is as follows: All figures in % 2021 2020 Liquid – call <1 month 51 39 Less liquid – call 1–3 months — — Illiquid – call >3 months 49 61 Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows: All figures in £ millions 2021 2020 UK Group Other plans Total UK Group Other plans Total Fair value of plan assets Opening fair value of plan assets 3,588 119 3,707 3,341 120 3,461 Recognition of Money Purchase assets 513 — 513 — — — Exchange differences — 2 2 — (3 ) (3 ) Interest on plan assets 55 2 57 66 3 69 Return on plan assets excluding interest 71 6 77 297 8 305 Contributions by employer 14 1 15 3 5 8 Benefits paid (123 ) (10 ) (133 ) (119 ) (14 ) (133 ) Contributions by employees 7 — 7 — — — Closing fair value of plan assets 4,125 120 4,245 3,588 119 3,707 Present value of defined benefit obligation Opening defined benefit obligation (3,178 ) (156 ) (3,334 ) (2,912 ) (157 ) (3,069 ) Recognition of Money Purchase liabilities (513 ) — (513 ) — — — Exchange differences — (1 ) (1 ) — 3 3 Current service cost (17 ) (2 ) (19 ) (6 ) (2 ) (8 ) Past service cost — — — (1 ) — (1 ) Curtailments — — — — 1 1 Administration expenses (6 ) — (6 ) (5 ) — (5 ) Interest on plan liabilities (49 ) (3 ) (52 ) (57 ) (5 ) (62 ) Actuarial (losses)/gains – experience (100 ) 3 (97 ) (18 ) (2 ) (20 ) Actuarial (losses)/gains – demographic (1 ) — (1 ) 1 1 2 Actuarial gains/(losses) – financial 160 6 166 (299 ) (11 ) (310 ) Contributions by employee (7 ) — (7 ) — 2 2 Benefits paid 123 10 133 119 14 133 Closing defined benefit obligation (3,588 ) (143 ) (3,731 ) (3,178 ) (156 ) (3,334 ) From 1 January 2021, the Group has recognised the assets and liabilities for all members of the defined contribution section of the UK Group plan, accounting for the whole defined contribution section as a defined benefit scheme under IAS 19 ‘Employee Benefits’. The net impact on the balance sheet is £nil, however, the gross amounts of £513m can be seen in the table above. Subsequent movements to those assets and liabilities are included in the relevant lines in the table above. The weighted average duration of the defined benefit obligation is 16 years for the UK and seven years for the US. Changes in the value of the US PRMB are as follows: All figures in £ millions 2021 2020 Opening defined benefit obligation (39 ) (43 ) Exchange differences (1 ) 1 Interest on plan liabilities (1 ) (1 ) Actuarial gains – experience 2 3 Actuarial gains – demographic — 1 Actuarial gains/(losses) – financial 2 (3 ) Benefits paid 3 3 Closing defined benefit obligation (34 ) (39 ) Funding The UK Group plan is self-administered with the plan’s assets being held independently of the Group in trust. The trustee of the UK Group plan is required to act in the best interest of the plan’s beneficiaries. The most recent triennial actuarial valuation for funding purposes was completed as at 1 January 2021 and this valuation revealed a technical provisions funding surplus of £160m. The UK Group plan expects to be able to provide benefits (in accordance with the plan rules) with a very low level of reliance on future funding from the Group. Assets of the UK Group plan are divided into two elements: matching assets, which are assets that produce cash flows that can be expected to match the cash flows for a proportion of the membership, and include a liability-driven investment mandate (UK bonds, interest rate/inflation swaps and other derivative instruments), pensioner buy-in Following the purchase of buy-in buy-in Regular employer contributions to the UK Group plan in respect of the defined benefit sections are estimated to be £3m for 2022. Sensitivities The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense is as follows: 2021 All figures in £ millions 1% 1% Effect: (Decrease)/increase in defined benefit obligation – UK Group plan (450 ) 616 (Decrease)/increase in defined benefit obligation – US plan (9 ) 11 The effect of members living one year more or one year less on the defined benefit obligation is as follows: 2021 All figures in £ millions One year One year Effect: Increase/(decrease) in defined benefit obligation – UK Group plan 107 (108 ) Increase/(decrease) in defined benefit obligation – US plan 4 (3 ) The effect of a half percentage point increase and decrease in the inflation rate is as follows: 2021 All figures in £ millions 0.5% 0.5% Effect: Increase/(decrease) in defined benefit obligation – UK Group plan 142 (141 ) Increase/(decrease) in defined benefit obligation – US plan — — The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant, although in practice this is unlikely to occur and changes in some assumptions may be correlated. When calculating these sensitivities, the same method has been applied to calculate the defined benefit obligation as has been applied when calculating the liability recognised in the balance sheet. This methodology is the same as prior periods. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Share-based payments | 26. Share-based payments The Group recognised the following charges in the income statement in respect of its equity-settled share-based payment plans: All figures in £ millions 2021 2020 2019 Pearson plans 28 29 25 The Group operates the following equity-settled employee option and share plans: Worldwide Save for Shares Plan Save-As-You-Earn three Employee Stock Purchase Plan six-month Long-Term Incentive Plan non-market one-off co-investment non-market Management Incentive Plan non-market The following shares were granted under restricted share arrangements: 2021 2020 Number of Weighted average Number of Weighted average Long-Term Incentive Plan 6,394 7.27 5,598 4.94 Management Incentive Plan 630 7.71 696 5.29 The fair value of shares granted under the Long-Term Incentive Plan and the Management Incentive Plan that vest unconditionally is determined using the share price at the date of grant. The number of shares expected to vest is adjusted, based on historical experience, to account for potential forfeitures. Participants under the plans are entitled to dividends during the vesting period and therefore the share price is not discounted. Restricted shares with a market performance condition were valued by an independent actuary using a Monte Carlo model. Restricted shares with a non-market Non-market |
Share capital and share premium
Share capital and share premium | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Share capital and share premium | 27. Share capital and share premium Number of Share £m Share At 1 January 2020 782,099 195 2,614 Issue of ordinary shares – share option schemes 1,236 — 6 Purchase of own shares (30,077 ) (7 ) — At 31 December 2020 753,258 188 2,620 Issue of ordinary shares – share option schemes 3,544 1 6 Purchase of own shares — — — At 31 December 2021 756,802 189 2,626 The ordinary shares have a par value of 25 25 On 24 February 2022, the Board approved a £350m share buyback programme in order to return capital to shareholders. The programme will commence in 2022 The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt (see note 18), cash and cash equivalents (see note 17) and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings. The Group reviews its capital structure on a regular basis and will balance its overall capital structure through payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt in line with the financial risk policies outlined in note 19. |
Treasury shares
Treasury shares | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Treasury shares | 28. Treasury shares Number of £m At 1 January 2020 3,258 24 Purchase of treasury shares 1,105 6 Release of treasury shares (3,460 ) (23 ) At 31 December 2020 903 7 Purchase of treasury shares 2,158 16 Newly issued treasury shares 2,500 1 Release of treasury shares (3,990 ) (12 ) At 31 December 2021 1,571 12 The Group holds Pearson plc shares in trust to satisfy its obligations under its restricted share plans (see note 26). These shares, representing 0.2% (2020: 0.1%) of called-up 25 The nominal value of Pearson plc treasury shares amounts to £0.4m (2020: £0.2m). Dividends on treasury shares are waived. At 31 December 2021, the market value of Pearson plc treasury shares was £10m (2020: £6m). |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Other comprehensive income | 29. Other comprehensive income 2021 Attributable to equity holders of the company Non- controlling Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (6 ) — (6 ) — (6 ) Currency translation adjustment disposed — 4 — 4 — 4 Attributable tax — — 10 10 — 10 Items that are not reclassified to the income statement Fair value gain on other financial assets 24 — — 24 — 24 Attributable tax — — (3 ) (3 ) — (3 ) Remeasurement of retirement benefit obligations - Group — — 149 149 — 149 Attributable tax — — (61 ) (61 ) — (61 ) Other comprehensive income/(expense) for the year 24 (2 ) 95 117 — 117 2020 Attributable to equity holders of the company Non- Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (109 ) — (109 ) — (109 ) Currency translation adjustment disposed — (70 ) — (70 ) — (70 ) Attributable tax — — (13 ) (13 ) — (13 ) Items that are not reclassified to the income statement Fair value gain on other financial assets 14 — — 14 — 14 Attributable tax — — (6 ) (6 ) — (6 ) Remeasurement of retirement benefit obligations - Group — — (23 ) (23 ) — (23 ) Attributable tax — — 2 2 — 2 Other comprehensive income/(expense) for the year 14 (179 ) (40 ) (205 ) — (205 ) 2019 Attributable to equity holders of the company Non- Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (113 ) — (113 ) — (113 ) Net exchange differences on translation of foreign operations – associates — (2 ) — (2 ) — (2 ) Currency translation adjustment disposed — 4 — 4 — 4 Attributable tax — — 5 5 — 5 Items that are not reclassified to the income statement Fair value gain on other financial assets 20 — — 20 — 20 Attributable tax — — (4 ) (4 ) — (4 ) Remeasurement of retirement benefit obligations – Group — — (145 ) (145 ) — (145 ) Remeasurement of retirement benefit obligations – associates — — (4 ) (4 ) — (4 ) Attributable tax — — 22 22 — 22 Other comprehensive (expense)/income for the year 20 (111 ) (126 ) (217 ) — (217 ) |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Business combinations | 30. Business combinations In September 2021, Pearson completed the acquisition of 100% of the share capital of Faethm Holdings Pty Limited (Faethm), having already held 9% of the share capital previously. Faethm uses artificial intelligence and analytics services to help governments, companies and workers understand the dynamic forces shaping the labour market. Faethm will be part of the Workforce Skills division. The total consideration for the transaction was £65m, which included £10m of contingent consideration which is payable after two years, dependent upon meeting certain earnings targets. The contingent consideration has been valued at the net present value of the Group’s best estimate of the amount that will be payable. In addition, the Group made two additional acquisitions of subsidiaries for total consideration of £11m. In both cases, the Group acquired 100% of the share capital of the respective entities. Opinion Interactive LLC (also known as Spotlight Education) was acquired in February 2021. MZ Development Inc. was acquired in July 2021. Both will be part of the Assessment & Qualifications division. The Group also made additional investments in associates, which are detailed in note 12, and are not included below. Details of the fair values of the assets and liabilities recognised at the acquisition date and the related consideration is shown in the table below. The fair values of Faethm’s net assets are provisional at this stage as management are finalising their review of the asset valuations. The provisional goodwill arising from the acquisition of Faethm represents assets and benefits that cannot be separately recognised. The goodwill is not deductible for tax purposes and at the acquisition date there were no material contingent liabilities. There were no significant acquisitions in 2020. In 2019, the Group made some small acquisitions, including Lumerit Education and Smart Sparrow, for total consideration of £40m. All figures in £ millions 2021 Faethm 2021 2021 2020 Total 2019 Total Intangible assets 21 6 27 — 23 Deferred tax asset 11 — 11 — — Trade and other receivables 1 1 2 — 1 Cash 4 — 4 — — Trade and other liabilities (4 ) (1 ) (5 ) — (2 ) Deferred tax liabilities (6 ) — (6 ) — — Net assets acquired 27 6 33 — 22 Goodwill 38 5 43 — 18 Total 65 11 76 — 40 Satisfied by: Cash consideration 49 5 54 — 40 Contingent consideration 10 6 16 — — Fair value of existing investment 6 — 6 — — Total consideration 65 11 76 — 40 Faethm generated revenues of £1m and a loss before tax of £1m for the period from the acquisition date to 31 December 2021. If the acquisition had occurred on 1 January 2021, the Group’s revenue and profit before tax for the year ended 31 December 2021 would not have been materially different. Total acquisition-related costs relating to the three transactions of £2m were recognised within other net gains and losses, in the consolidated income statement, all of which was recognised in the year ended 31 December 2021, and are excluded from adjusted operating profit. The net cash outflows related to the acquisitions are set out in the table below. In addition to the current year acquisitions, the other net cash outflows on acquisition of subsidiaries in 2021, 2020 and 2019 relate to deferred payments for prior year acquisitions. All figures in £ millions 2021 Faethm 2021 2021 2020 Total 2019 Total Cash flow on acquisitions Cash – current year acquisitions (49 ) (5 ) (54 ) — (40 ) Cash and cash equivalents acquired 4 — 4 — — Deferred payments for prior year acquisitions and other items — (4 ) (4 ) (6 ) (5 ) Acquisition costs paid (1 ) — (1 ) — — Net cash outflow (46 ) (9 ) (55 ) (6 ) (45 ) |
Disposals and business closures
Disposals and business closures | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Disposals and business closures | 31. Disposals and business closures The Group completed two significant disposals in 2021 and one in 2020. None of the disposals met the criteria to be considered a discontinued operation on the basis that they did not represent major lines of business or geographical areas of operations. In February 2021, the Group completed the sale of its interests in the Pearson Institute of Higher Education (PIHE) in South Africa resulting in a pre-tax In October 2021, the sale of the Group’s interests in K12 Sistemas in Brazil was also completed for consideration of £108 million, resulting in a gain on sale of £84m. There were no other business disposals in 2021 and additional losses of £ m relate to other disposal costs including costs related to the wind-down of certain businesses under strategic review. In April 2020, the Group completed the sale of the remaining % interest in Penguin Random House resulting in a pre-tax profit of £ m. In 2019, the only material disposal was the sale of the US K-12 business. The table below shows a summary of the assets and liabilities disposed of: All figures in £ millions Notes 2021 2020 2019 Disposal of subsidiaries and associates Intangible assets (3 ) — (101 ) Property, plant and equipment (48 ) — — Investments in joint ventures and associates — (418 ) — Intangible assets – product development (6 ) — (238 ) Inventories (2 ) — (64 ) Trade and other receivables (6 ) — (70 ) Cash and cash equivalents (excluding overdrafts) (24 ) — (104 ) Net deferred income tax assets — — (100 ) Provisions for other liabilities and charges 3 — — Trade and other liabilities 4 — 520 Financial liabilities – borrowings 67 — — Cumulative currency translation adjustment 29 (4 ) 70 (4 ) Net assets disposed (19 ) (348 ) (161 ) Cash proceeds 108 531 20 Deferred proceeds — — 180 Costs of disposal (24 ) 1 (23 ) Gain on disposal 65 184 16 All figures in £ millions 2021 2020 2019 Cash flow from disposals Proceeds – current year disposals 108 531 20 Proceeds – prior year disposals 16 105 — Cash and cash equivalents disposed (24 ) — (104 ) Costs and other disposal liabilities paid (17 ) (5 ) (17 ) Net cash inflow 83 631 (101 ) Analysed as: Cash inflow from sale of subsidiaries 83 100 (101 ) Cash inflow from disposal of joint ventures and associates — 531 — |
Held for sale
Held for sale | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Held for sale | 32. Held for sale Following the announcement of the sale of the Group’s interests in K12 Sistemas (included within the Strategic Review segment) in March 2021, the business was classified as held for sale until the disposal completed in October 2021. At 31 December 2021, only one property, which is expected to be disposed of in 2022, was classified as held for sale. The businesses that are included in the Strategic Review segment did not meet the criteria for classification as held for sale as at 31 December 2021 on the basis that the Group was not sufficiently advanced in the sales process as at 31 December 2021 for the sale to be considered highly probable. The held for sale assets and liabilities in 2020 are the Group’s interests in the Pearson Institute of Higher Education in South Africa, which was completed on 5 February 2021. The held for sale balances are analysed as follows: 2021 2020 All figures in £ millions Total Total Non-current Property, plant and equipment 7 48 7 48 Current assets Trade and other receivables — 6 Cash and cash equivalents — 19 — 25 Assets classified as held for sale 7 73 Non-current Financial liabilities – borrowings — (66 ) — (66 ) Current liabilities Trade and other liabilities — (5 ) Financial liabilities – borrowings — (3 ) — (8 ) Liabilities classified as held for sale — (74 ) Net assets/(liabilities) classified as held for sale 7 (1 ) |
Cash generated from operations
Cash generated from operations | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Cash generated from operations | 33. Cash generated from operations All figures in £ millions Notes 2021 2020 2019 Profit 160 310 266 Adjustments for: Income tax (3 ) 44 (34 ) Depreciation and impairment of property, plant and equipment 10 241 125 123 Amortisation and impairment of acquired intangibles and goodwill 11 50 80 151 Amortisation and impairment of software 11 117 112 115 Net finance costs 6 26 57 43 Share of results of joint ventures and associates 12 (1 ) (5 ) (54 ) Profit on disposal of subsidiaries, associates, investments and fixed assets (61 ) (182 ) (9 ) Other net gains and losses 2 6 — Net profit on disposal of right-of-use — (6 ) (4 ) Net foreign exchange adjustment from transactions 9 (34 ) (21 ) Investment income — — (2 ) Share-based payment costs 26 28 29 25 Product development assets (6 ) (56 ) (55 ) Inventories 22 35 (20 ) Trade and other receivables (71 ) (1 ) 59 Trade and other liabilities 37 (26 ) (157 ) Retirement benefit obligations 6 (1 ) 5 Provisions for other liabilities and charges 14 (37 ) 49 Net cash generated from operations 570 450 480 Net cash generated from operations is translated at an exchange rate approximating the rate at the date of cash flow. The difference between this rate and the average rate used to translate profit gives rise to a currency adjustment in the reconciliation between net profit and net cash generated from operations. This adjustment reflects the timing difference between recognition of profit and the related cash receipts or payments. In the cash flow statement, proceeds from sale of property, plant and equipment comprise: All figures in £ millions 2021 2020 2019 Net book amount 4 2 3 Loss on sale of property, plant and equipment (4 ) (2 ) (2 ) Proceeds from sale of property, plant and equipment — — 1 The movements in the Group’s current and non-current All figures in £ millions 2020 New leases/ Transfer from non-current Financing Foreign Fair value 2021 Financial liabilities Non-current 1,458 (36 ) (160 ) — 3 (20 ) 1,245 Current borrowings 248 (1 ) 160 (255 ) (4 ) 9 157 Total 1,706 (37 ) — (255 ) (1 ) (11 ) 1,402 All figures in £ millions 2019 New leases/ Transfer from Financing Foreign Fair value 2020 Financial liabilities Non-current borrowings 1,567 30 (260 ) 116 (22 ) 27 1,458 Current borrowings 79 (6 ) 260 (92 ) 5 2 248 Total 1,646 24 — 24 (17 ) 29 1,706 All figures in £ millions 2018 IFRS 16 Transition New leases/ disposal of Transfer from Financing Foreign Fair value 2019 Financial liabilities Non-current 643 792 61 (88 ) 230 (80 ) 9 1,567 Current borrowings 25 89 — 88 (139 ) 16 — 79 Total 668 881 61 — 91 (64 ) 9 1,646 Non-current |
Contingencies and commitments
Contingencies and commitments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Commitments And Contingent Liabilities [Abstract] | |
Contingencies and commitments | 34. Contingencies and commitments Key judgements Key areas of estimation There are contingent Group liabilities that arise in the normal course of business in respect of indemnities, warranties and guarantees in relation to former subsidiaries and in respect of guarantees in relation to subsidiaries, joint ventures and associates. In addition, there are contingent liabilities of the Group in respect of unsettled or disputed tax liabilities, legal claims, contract disputes, royalties, copyright fees, permissions and other rights. None of these claims are expected to result in a material gain or loss to the Group. On 25 April 2019, the European Commission published the full decision that the United Kingdom controlled foreign company group financing partial exemption (FCPE) partially constitutes State Aid. The Group has lodged an appeal. The Group has benefited from the FCPE in 2018 and prior years by approximately £116m (which does not include any additional interest that would be due if the appeal is lost). In February 2021, the Group received Charging Notices requiring a payment on account of materially all of the alleged State Aid to be made. Payments totalling £105m (comprising tax and interest) were made during 2021 and the Group expects to recover the funds in due course. The Group continues to be of the view that no provision is required in respect of this issue. The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2017. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,079m (£143m) up to 31 December 2021, with additional potential exposure of BRL 98m (£13m) in relation to deductions expected to be taken in future periods. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group’s position is strong. At present, the Group believes no provision is required. At the balance sheet date there were no commitments for capital expenditure contracted for but not yet incurred. Commitments in respect of leases are shown in note 35. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Presentation of leases for lessee [abstract] | |
Leases | 35. Leases The Group’s lease portfolio consists of approximately 730 property leases, mainly offices and test centres, together with a number of vehicle and equipment leases. The Group adopted IFRS 16 ‘Leases’ at 1 January 2019 and applied the modified retrospective approach. The Group has elected not to recognise right-of-use low-value As a lessee: The amounts recognised in the income statement are as follows: All figures in £ millions Note 2021 2020 2019 Interest on lease liabilities (27 ) (41 ) (45 ) Expenses relating to short-term leases — (1 ) (2 ) Depreciation of right-of-use 10 (49 ) (68 ) (64 ) Impairment of right-of-use 10 (119 ) (4 ) — Lease liabilities are included within financial liabilities – borrowings in the balance sheet, see note 18. The maturities of the Group’s lease liabilities are as follows: All figures in £ millions 2021 2020 Less than one year 92 100 One to five years 318 333 More than five years 394 441 Total undiscounted lease liabilities 804 874 Lease liabilities included in the balance sheet 633 683 Analysed as: Current 68 73 Non-current 565 610 In addition to the above, there are current lease liabilities of £nil (2020: £3m) and non-current The amounts recognised in the cash flow statement are as follows: All figures in £ millions 2021 2020 2019 Total cash outflow for leases as a lessee 115 133 136 At the balance sheet date commitments for capital leases contracted for but not yet incurred were £3m (2020: £3m). Extension and termination options and variable lease payments are not significant within the lease portfolio. Short-term leases to which the Group is committed at the balance sheet date are similar to the portfolio of short-term leases to which the short-term lease expense is disclosed above. As a lessor: In the event that the Group has excess capacity in its leased offices and warehouses, the Group subleases some of its properties under operating and finance leases. The amounts recognised in the income statement are as follows: All figures in £ millions 2021 2020 2019 Interest on lease receivables 6 9 11 Income from subleasing right-of-use 2 7 17 The amounts recognised in the cash flow statement are as follows: All figures in £ millions 2021 2020 2019 Total cash inflow for leases as a lessor 27 50 37 The following table sets out the maturity analysis of lease payments receivable for subleases classified as operating leases, showing the undiscounted lease payments to be received after the reporting date, and subleases classified as finance leases showing the undiscounted lease payments to be received after the reporting date and the net investment in the finance lease receivable. During the year the investment in finance lease receivable decreased by £15m (2020: decreased £66m), primarily due to payments received. All figures in £ millions Operating leases Finance leases 2021 Total 2020 Total Less than one year 1 20 21 24 One to two years — 18 18 24 Two to three years 1 19 20 18 Three to four years 2 19 21 18 Four to five years 1 19 20 18 More than five years 2 39 41 56 Total undiscounted lease payments receivable 7 134 141 158 Unearned finance income (19 ) Net investment in finance lease receivable 115 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Related party transactions | 36. Related party transactions Joint ventures and associates In 2021, the Group acquired a 40% interest in Academy of Pop and is accounting for the investment as an associate. At 31 December 2021, the Group had a current liability payable to Academy of Pop of £7m which relates to the Group’s initial capital contribution that has not yet been paid. This balance is expected to be paid in the first half of 2022. In 2020, the Group disposed of its interests in Penguin Random House and therefore Penguin Random House is no longer a related party. Prior to the completion of the sale of Penguin Random House, the Group received dividends of £1m (2019: £64m) and repaid loans to Penguin Random House at the point of disposal. Key management personnel Key management personnel are deemed to be the members of the Pearson Executive Management team. It is this committee which had responsibility for planning, directing and controlling the activities of the Group in 2021. Key management personnel compensation is disclosed below: All figures in £ millions 2021 2020 Short-term employee benefits 6 6 Retirement benefits 1 1 Share-based payment costs 8 6 Total 15 13 There were no other material related party transactions. No guarantees have been provided to related parties. |
Events after the balance sheet
Events after the balance sheet date | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Events after the balance sheet date | 37. Events after the balance sheet date On 28 January 2022, the Group acquired 100% of the share capital in Credly Inc, having previously held a 19.9% interest in the company. Total consideration is c$200m comprising upfront cash consideration of c$142m, Pearson’s existing interest valued at c$42m and c$16m of deferred consideration. Net assets acquired will mainly comprise of acquired intangible assets. The full acquisition accounting disclosures have not been provided as the valuation of acquired intangibles has not yet been completed. In January 2022, the Group received $117m in relation to full and final payment of the remaining receivable balance which arose on the disposal of the US K-12 In February 2022, the Group renegotiated its revolving credit facility, extending the maturity of $1bn of the facility by one year to 2026. On 24 February 2022, the Board approved a £350m share buyback programme in order to return capital to shareholders. The programme will commence in 2022. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Statement [LineItems] | |
Basis of preparation | Basis of preparation These consolidated financial statements have been prepared on the going concern basis (see note 1b) and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and in accordance with UK-adopted UK-adopted UK-adopted UK-adopted These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities (including derivative financial instruments) at fair value. These accounting policies have been consistently applied to all years presented, unless otherwise stated. 1. Interpretations and amendments to published standards effective 2021 ‘Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)’ is effective from 1 January 2021 (see note 19) and in addition, the Group has early adopted the amendment to IFRS 16 ‘COVID-19 The Group has also considered the IFRIC agenda decision on ‘Configuration and Customisation costs in a Cloud Computing Arrangement’, and concluded that it does not have a material impact on the consolidated financial statements. 2. Standards, interpretations and amendments to published standards that are not yet effective • IFRS 17 ‘Insurance contracts’; • Amendments to IFRS 3 ’Reference to the conceptual framework’; • Amendments to IAS 1 ‘Disclosure of accounting policies’; • Amendments to IAS 1 ‘Classification of liabilities as current or non-current’; • Amendments to IAS 8 ‘Definition of accounting estimates’; • Amendments to IAS 12 ‘Deferred tax related to assets and liabilities arising from a single transaction’; • Amendments to IAS 16 ‘Proceeds before intended use’; • Amendments to IAS 37 ‘Onerous contracts - costs of fulfilling a contract’; and • Annual improvements to IFRS 2018-2020. The Group is currently assessing the impact of the above changes, but they are not expected to have a material impact. The Group has not adopted any other standard, amendment or interpretation that has been issued but is not yet effective. 3. Critical accounting assumptions and judgements All assumptions and estimates constitute management’s best judgement at the date of the financial statements, however, in the future, actual experience may deviate from these estimates and assumptions. The areas requiring a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are: • Intangible assets: Goodwill • Taxation • Revenue: Provisions for returns • Employee benefits: Pensions • Property, plant and equipment: Right-of-use The recoverability of product development assets and in particular, the assessment of the useful economic lives of the product development assets, is no longer considered to be a key area of estimation uncertainty as the impact of COVID-19 The key judgements and key areas of estimation are set out below, as well as in the relevant accounting policies and in the notes to the accounts where appropriate. Key judgements • The application of tax legislation in relation to provisions for uncertain tax positions (see notes 7 and 34). • The allocation of goodwill to the cash-generating units and groups of cash-generating units (see note 11). • Whether the Group will be eligible to receive the surplus associated with the UK Group Pension Plan in recognising a pension asset (see note 25). Key areas of estimation • The recoverability of goodwill balances. Key assumptions used in goodwill impairment testing are discount rates, perpetuity growth rates, forecast sales growth rates and forecast operating profits. See note 11 for further details. • The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. See notes 7 and 34 for further details. • The level of provisions required for anticipated returns is estimated based on historical experience, customer buying patterns and retailer behaviours including stock levels. See note 3 for further details. • The determination of the pension cost and defined benefit obligation of the Group’s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity. See note 25 for further details. • The recoverability of right-of-use The Group has assessed the impact of the uncertainty presented by the continued COVID-19 • Recoverable value of right-of-use • Financial instruments in particular counterparty risk and hedge effectiveness; • Working capital provisions including expected credit losses on trade and other debtors and inventory obsolescence; and • The assessment of the useful economic lives of product development assets. No material accounting impacts relating to the areas assessed above were recognised in the year. The Group will continue to monitor these areas of increased judgement, estimation and risk. |
Consolidation | Consolidation 1. Business combinations The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred in the operating expenses line of the income statement. Identifiable assets acquired and identifiable liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The determination of fair values often requires significant judgements and the use of estimates, and, for material acquisitions, the fair value of the acquired intangible assets is determined by an independent valuer. The excess of the consideration transferred, the amount of any non-controlling See the ‘Intangible assets’ policy for the accounting policy on goodwill. If this is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in the income statement. On an acquisition-by-acquisition non-controlling non-controlling IFRS 3 ‘Business Combinations’ has not been applied retrospectively Management exercises judgement in determining the classification of its investments in its businesses, in line with the following: 2. Subsidiaries 3. Transactions with non-controlling non-controlling non-controlling non-controlling 4. Joint ventures and associates The Group’s share of its joint ventures’ and associates’ post-acquisition profits or losses is recognized in the income statement and its share of post-acquisition movements in reserves is recognised in reserves. The Group’s share of its joint ventures’ and associates’ results is recognized as a component of operating profit as these operations form part of the core publishing business of the Group and are an integral part of existing wholly-owned businesses. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in a joint venture or associate equals or exceeds its interest in the joint venture or associate, the Group does not recognise further losses unless the Group has incurred obligations or made payments on behalf of the joint venture or associate. Unrealised gains and losses on transactions between the Group and its joint ventures and associates are eliminated to the extent of the Group’s interest in these entities. 5. Contribution of a subsidiary to an associate or joint venture |
Foreign currency translation | Foreign currency translation 1. Functional and presentation currency 2. Transactions and balances year-end 3. Group companies a. Assets and liabilities are translated at the closing rate at the date of the balance sheet b. Income and expenses are translated at average exchange rates c. All resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency instruments designated as hedges of such investments, are taken to shareholders’ equity. The Group treats specific inter-company loan balances, which are not intended to be repaid in the foreseeable future, as part of its net investment. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. The principal overseas currency for the Group is the US dollar. The average rate for the year against sterling was $1.38 (2020: $1.28) and the year-end |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for intended use. Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives as follows: Buildings (freehold): 20 – 50 years Buildings (leasehold): over the period of the lease Plant and equipment: 3 – 10 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. The carrying value of an asset is written down to its recoverable amount if the carrying value of the asset is greater than its estimated recoverable amount. |
Intangible assets | Intangible assets 1. Goodwill non-controlling Goodwill on acquisitions of associates and joint ventures is included in investments in associates and joint ventures. Goodwill is tested at least annually for impairment and carried at cost less accumulated impairment losses. An impairment loss is recognised to the extent that the carrying value of goodwill exceeds the recoverable amount. The recoverable amount is the higher of fair value less costs of disposal and value in use. These calculations require the use of estimates in respect of forecast cash flows and discount rates and significant management judgement in respect of cash-generating unit (CGU) and cost allocation; impairment is a key source of estimat ion Goodwill is allocated to aggregated CGUs for the purpose of impairment testing. The allocation is made to those aggregated CGUs that are expected to benefit from the business combination in which the goodwill arose. Where there are changes to CGUs, goodwill is reallocated to the new CGUs and aggregation of CGUs using a relative value method. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. 2. Acquired software three 3. Internally developed software once the Group can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Internally developed software is amortised on a straight-line basis over its estimated useful life of between three 4. Acquired intangible assets two 5. Product development assets Product development assets relating to content are amortised upon publication of the title over estimated economic lives of seven years or less, being an estimate of the expected operating lifecycle of the title, with a higher proportion of the amortisation taken in the earlier years. Product development assets relating to product platforms are amortised over 10 years or less, being an estimate of the expected useful life. The assessment of the useful economic life and the recoverability of product development assets involves judgement and is based on historical trends and management estimation of future potential sales. Product development assets are assessed for impairment triggers on an annual basis or when triggering events occur. The carrying amount of product development assets is set out in note 20. The investment in product development assets has been disclosed as part of cash generated from operations in the cash flow statement (see note 33). |
Other financial assets | Other financial assets Other financial assets are non-derivative Marketable securities and cash deposits with maturities of greater than three months are classified and subsequently measured at fair value through profit and loss (FVTPL). They are remeasured at each balance sheet date by using market data and the use of established valuation techniques. Any movement in the fair value is immediately recognised in finance income or finance costs in the income statement. Investments in the equity instruments of other entities are classified and subsequently measured at fair value through other comprehensive income (FVOCI). Changes in fair value are recorded in equity in the fair value reserve via other comprehensive income. On subsequent disposal of the asset, the net fair value gains or losses are reclassified from the fair value reserve to retained earnings. Any dividends received from equity investments classified as FVOCI are recognised in the income statement unless they represent a return of capital. |
Inventories | Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average method or an approximation thereof, such as the first in first out (FIFO) method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale. Provisions are made for slow-moving and obsolete stock. |
Royalty advances | Royalty advances Advances of royalties to authors are included within trade and other receivables when the advance is paid less any provision required to adjust the advance to its net realisable value. The realisable value of royalty advances relies on a degree of management estimation in determining the profitability of individual author contracts. If the estimated realisable value of author contracts is overstated, this will have an adverse effect on operating profits as these excess amounts will be written off. The recoverability of royalty advances is based upon an annual detailed management review of the age of the advance, the future sales projections for new authors and prior sales history of repeat authors. The royalty advance is expensed at the contracted or effective royalty rate as the related revenues are earned. Royalty advances which will be consumed within one year are held in current assets. Royalty advances which will be consumed after one year are held in non-current |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents in the cash flow statement include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are included in borrowings in current liabilities in the balance sheet. Short-term deposits and marketable securities with maturities of greater than three months do not qualify as cash and cash equivalents and are reported as financial assets. Movements on these financial assets are classified as cash flows from financing activities in the cash flow statement where these amounts are used to offset the borrowings of the Group or as cash flows from investing activities where these amounts are held to generate an investment return. |
Share capital | Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs, net of income taxes, is deducted from equity attributable to the company’s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly attributable transaction costs and the related income tax effects, is included in equity attributable to the company’s equity holders. Ordinary shares purchased under a buyback programme are cancelled and the nominal value of the shares is transferred to a capital redemption reserve. |
Borrowings | Borrowings Borrowings are recognised initially at fair value, which is proceeds received net of transaction costs incurred. Borrowings are subsequently stated at amortised cost with any difference between the proceeds (net of transaction costs) and the redemption value being recognised in the income statement over the period of the borrowings using the effective interest method. Accrued interest is included as part of borrowings. Where a debt instrument is in a fair value hedging relationship, an adjustment is made to its carrying value in the income statement to reflect the hedged risk. Where a debt instrument is in a net investment hedge relationship, gains and losses on the effective portion of the hedge are recognised in other comprehensive income. |
Derivative financial instruments | Derivative financial instruments Derivatives are recognised at fair value and remeasured at each balance sheet date. The fair value of derivatives is determined by using market data and the use of established estimation techniques such as discounted cash flow and option valuation models. For derivatives in a hedge relationship, the currency basis spread is excluded from the designation as a hedging instrument. Changes in the fair value of derivatives are recognised immediately in finance income or costs. However, derivatives relating to borrowings and certain foreign exchange contracts are designated as part of a hedging transaction. The accounting treatment is summarised as follows: Typical reason for designation Reporting of gains and losses on Reporting of gains and Net investment hedge The derivative creates a foreign currency liability which is used to hedge changes in the value of a subsidiary which transacts in that currency. Recognised in other comprehensive income. On the disposal of foreign operations or subsidiaries, the accumulated value of gains and losses reported in other comprehensive income is transferred to the income statement. Fair value hedges The derivative transforms the interest profile on debt from fixed Gains and losses on the derivative are reported in finance income or finance costs However, an equal and opposite change is made to the carrying value of the debt (a ‘fair value adjustment’) with the benefit/cost reported in finance income or finance costs. The net result should be a zero charge on a perfectly effective hedge. If the debt and derivative are disposed of, the value of the derivative and the debt (including the fair value adjustment) are reset to zero. Any resultant gain or loss is recognised in finance income or finance costs. Non-hedge These are not designated as hedging instruments. Typically, these are short-term contracts to convert debt back to fixed rates or foreign exchange contracts where a natural offset exists. Recognised in the income statement. No hedge accounting applies. |
Taxation | Taxation Current tax is recognised at the amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income tax is provided, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred income tax is provided in respect of the undistributed earnings of subsidiaries, associates and joint ventures other than where it is intended that those undistributed earnings will not be remitted in the foreseeable future. Current and deferred tax are recognised in the income statement, except when the tax relates to items charged or credited directly to equity or other comprehensive income, in which case the tax is also recognised in equity or other comprehensive income. The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the estimates in relation to the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises tax provisions when it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are based on management’s best judgement of the application of tax legislation and best estimates of future settlement amounts (see note 7). Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Deferred tax assets and liabilities require management judgement and estimation in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised, significant judgement is used when considering the timing of the recognition and estimation is used to determine the level of future taxable income together with any future tax planning strategies (see note 13). |
Employee benefits | Employee benefits 1. Pensions When the calculation results in a potential asset, the recognition of that asset is limited to the asset ceiling – that is the present value of any economic benefits available in the form of refunds from the plan or a reduction in future contributions. Management uses judgement to determine the level of refunds available from the plan in recognising an asset. The determination of the pension cost and defined benefit obligation of the Group’s defined benefit pension schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth and longevity (see note 25). Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. The service cost, representing benefits accruing over the year, is included in the income statement as an operating cost. Net interest is calculated by applying the discount rate to the net defined benefit obligation and is presented as finance costs or finance income. Obligations for contributions to defined contribution pension plans are recognised as an operating expense in the income statement as incurred. 2. Other post-retirement obligations 3. Share-based payments |
Provisions | Provisions Provisions are recognised if the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are discount ed |
Revenue recognition | Revenue recognition The Group’s revenue streams are courseware, assessments and services. Courseware includes curriculum materials provided in book form and/or via access to digital content. Assessments includes test development, processing and scoring services provided to governments, educational institutions, corporations and professional bodies. Services includes the operation of schools, colleges and universities, including sistemas in Brazil, as well as the provision of online learning services in partnership with universities and other academic institutions. Revenue is recognised in order to depict the transfer of control of promised goods and services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. This process begins with the identification of our contract with a customer, which is generally through a master services agreement, customer purchase order, or a combination thereof. Within each contract, judgement is applied to determine the extent to which activities within the contract represent distinct performance obligations to be delivered and the total amount of transaction price to which we expect to be entitled. The transaction price determined is net of sales taxes, rebates and discounts, and after eliminating sales within the Group. Where a contract contains multiple performance obligations such as the provision of supplementary materials or online access with textbooks, revenue is allocated on the basis of relative standalone selling prices. Where a contract contains variable consideration, significant estimation is required to determine the amount to which the Group is expected to be entitled. Revenue is recognised on contracts with customers when or as performance obligations are satisfied, which is the period or the point in time where control of goods or services transfers to the customer. Judgement is applied to determine first whether control passes over time and if not, then the point in time at which control passes. Where revenue is recognised over time, judgement is used to determine the method which best depicts the transfer of control. Where an input method is used, significant estimation is required to determine the progress towards delivering the performance obligation. Revenue from the sale of books is recognised net of a provision for anticipated returns. This provision is based primarily on historical return rates, customer buying patterns and retailer behaviours including stock levels (see note 24). If these estimates do not reflect actual returns in future periods then revenues could be understated or overstated for a particular period. When the provision for returns is remeasured at each reporting date to reflect changes in estimates, a corresponding adjustment is also recorded to revenue. The Group may enter into contracts with another party in addition to our customer. In making the determination as to whether revenue should be recognised on a gross or net basis, the contract with the customer is analysed to understand which party controls the relevant good or service prior to transferring to the customer. This judgement is informed by facts and circumstances of the contract in determining whether the Group has promised to provide the specified good or service or whether the Group is arranging for the transfer of the specified good or service, including which party is responsible for fulfilment, has discretion to set the price to the customer and is responsible for inventory risk. On certain contracts, where the Group acts as an agent, only commissions and fees receivable for services rendered are recognised as revenue. Any third-party costs incurred on behalf of the principal that are rechargeable under the contractual arrangement are not included in revenue. Income from recharges of freight and other activities which are incidental to the normal revenue-generating activities is included in other income. Additional details on the Group’s revenue streams are also included |
Leases | Leases The Group as a lessee The Group assesses whether a contract is or contains a lease at the inception of the contract. A contract is, or contains a lease, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognises a right-of-use low-value The right-of-use right-of-use right-of-use the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate or a change in the Group’s assessment of whether it will exercise an extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the right-of-use Management uses judgement to determine the lease term where extension and termination options are available within the lease. The Group as a lessor When the Group is an intermediate lessor, the head lease and sublease are accounted for as two separate contracts. The head lease is accounted for as per the lessee policy above. The sublease is classified as a finance lease or operating lease by reference to the right-of-use Policy applicable from 1 January 2019: IFRS 16 The Group adopted IFRS 16 ‘Leases’ at 1 January 2019 and applied the modified retrospective approach. Comparatives for 2018 have not been restated and the cumulative impact of adoption has been recognised as a decrease of £83m to net assets with a corresponding decrease in retained earnings at 1 January 2019. The net impact on the balance sheet has been assessed after taking into account existing liabilities relating to onerous lease provisions, lease incentives, prepayments, adjustments to tax and the net impact on the associates. Adoption of IFRS 16 had a material impact on the Group. The lease liability brought onto the balance sheet at transition was £881m with the corresponding right-of-use asset valued at £424m. In addition, certain subleases have been reclassified as finance leases resulting in an additional lease receivable of £215m being brought on balance sheet. The impact on the income statement for 2019 was to reduce profit before tax by £9m. The weighted average incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 5%. |
Dividends | Dividends Final dividends are recorded in the Group’s financial statements in the period in which they are approved by the company’s shareholders. Interim dividends are recorded when paid. |
Discontinued operations | Discontinued operations A discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical area of operations that has been disposed of or meets the criteria to be classified as held for sale. When applicable, discontinued operations are presented in the income statement as a separate line and are shown net of tax. |
Assets and liabilities held for sale | Assets and liabilities held for sale Assets and liabilities are classified as held for sale and stated at the lower of carrying amount and fair value less costs to sell if it is highly probable that the carrying amount will be recovered principally through a sale non-current non-current |
Trade receivables | Trade receivables Trade receivables are stated at fair value after provision for bad and doubtful debts. Provisions for bad and doubtful debts are based on the expected credit loss model. The ‘simplified approach’ is used with the expected loss allowance measured at an amount equal to the lifetime expected credit losses. A provision for anticipated future sales returns is included within trade and other liabilities (also see Revenue recognition policy). |
Going concern | 1b. Going concern In assessing the Group’s ability to continue as a going concern for the period to 30 June 2023, the Board analysed a variety of downside scenarios including a severe but plausible scenario where the Group is impacted by a combination of all principal risks from 2022 as well as reverse stress testing to identify what would be required to either breach covenants or run out of liquidity. The severe but plausible scenario modelled a severe reduction in revenue, profit and operating cash flow from risks which in aggregate were significantly greater than seen in 2021 continuing throughout 2022 to 2023. At 31 December 2021, the Group had available liquidity of c£1.6bn, comprising central cash balances and its undrawn $1.19bn Revolving Credit Facility (RCF). In February 2022, the Group renegotiated its revolving credit facility, extending the maturity of $1bn of the facility by one year to February 2026. Even under a severe downside case, the Group would maintain comfortable liquidity headroom and sufficient headroom against covenant requirements during the period under assessment even before modelling the mitigating effect of actions that management would take in the event that these downside risks were to crystallise. The directors have confirmed that there are no material uncertainties that cast doubt on the Group’s going concern status and that they have a reasonable expectation that the Group has adequate resources to continue in operational existence for a minimum of the next 12 months. |
Climate change | 1c. Climate change The Group has assessed the impacts of climate change on the Group’s financial statements of our commitment to achieving net zero by 2030, and the actions the Group intends to take to achieve those targets. The assessment did not identify any material impact on the Group’s significant judgements or estimates at 31 December 2021, or the assessment of going concern for the period to June 2023 and the Group’s viability over the next five years, Specifically, we have considered the following areas: • The physical and transition risks associated with climate change; and • The actions the Group is taking to meet its carbon reduction and net zero targets. As a result, the Group has assessed the impacts of climate change on the financial statements, and in particular, on the following areas: • The impact on the Group’s future cash flows, and the resulting impact that such adjustments to our future cash flows would have on the outcome of the annual impairment testing of our goodwill balances (see note 11 for further details), the recognition of deferred tax assets and our assessment of going concern; • The carrying value of the Group’s assets, in particular the recoverable amounts of inventories, product development assets, intangible assets and property, plant and equipment; and • Any changes to our estimates of the useful economic lives of product development assets, intangible assets and property, plant and equipment. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Depreciation on other assets is calculated using the straight-line method to allocate their cost less their residual values over their estimated useful lives as follows: Buildings (freehold): 20 – 50 years Buildings (leasehold): over the period of the lease Plant and equipment: 3 – 10 years |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Segment Reporting Information | 2021 All figures in £ millions Notes Assessment & Virtual English Workforce Higher Strategic Penguin Group Sales 3 1,204 713 238 172 849 252 — 3,428 Adjusted operating profit 216 32 15 27 73 22 — 385 Cost of major restructuring (48 ) (48 ) (27 ) (28 ) (63 ) — — (214 ) Intangible charges (13 ) (25 ) (3 ) (7 ) (2 ) (1 ) — (51 ) Other net gains and losses — — — (2 ) — 65 — 63 Operating profit/(loss) 155 (41 ) (15 ) (10 ) 8 86 — 183 Finance costs 6 (68 ) Finance income 6 42 Profit before tax 157 Income tax 7 3 Profit for the year 160 Other segment items Share of results of joint ventures and associates 12 — (1 ) 3 (1 ) — — — 1 Depreciation and impairment 10 92 48 14 9 63 15 — 241 Amortisation and impairment 11, 20 129 67 34 25 165 26 — 446 2019 All figures in £ millions Notes Assessment & Virtual English Workforce Higher Strategic Penguin Group Sales 3 1,280 584 320 185 1,102 398 — 3,869 Adjusted operating profit 252 13 59 31 134 27 65 581 Costs of major restructuring (38 ) (13 ) (10 ) (7 ) (68 ) (21 ) (2 ) (159 ) Intangible charges (23 ) (36 ) (80 ) (9 ) — (3 ) (12 ) (163 ) Other net gains and losses — — — — — 16 — 16 Operating profit / (loss) 191 (36 ) (31 ) 15 66 19 51 275 Finance costs 6 (84 ) Finance income 6 41 Profit before tax 232 Income tax 7 34 Profit for the year 266 Share of results of joint ventures and associates — — 3 — — — 51 54 Depreciation and impairment 49 18 8 5 29 14 — 123 Amortisation and impairment 135 62 104 24 172 40 — 537 |
Summary of Operating Segments in Geographic Areas | The Group operates in the following main geographic areas: Sales Non-current assets All figures in £ millions 2021 2020 2019 2021 2020 UK 355 319 385 582 669 Other European countries 249 216 244 123 129 US 2,182 2,335 2,417 2,146 2,362 Canada 111 91 105 225 147 Asia Pacific 359 251 441 192 149 Other countries 172 185 277 20 30 Total 3,428 3,397 3,869 3,288 3,486 |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of transfer of goods and services over time and at a point in time | The Group derived revenue from the transfer of goods and services over time and at a point in time in the following major product lines: 2021 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 44 — 109 — 283 198 634 Products and services transferred over time 14 — 26 — 558 33 631 58 — 135 — 841 231 1,265 Assessments Products transferred at a point in time 173 — 6 16 — — 195 Products and services transferred over time 973 — 72 119 — — 1,164 1,146 — 78 135 — — 1,359 Services Products transferred at a point in time — — 22 — — 14 36 Products and services transferred over time — 713 3 37 8 7 768 — 713 25 37 8 21 804 Total 1,204 713 238 172 849 252 3,428 2020 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 43 — 106 — 313 208 670 Products and services transferred over time 14 — 24 — 630 28 696 57 — 130 — 943 236 1,366 Assessments Products transferred at a point in time 138 — 3 7 — — 148 Products and services transferred over time 887 — 61 123 — — 1,071 1,025 — 64 130 — — 1,219 Services Products transferred at a point in time — — 22 — — 22 44 Products and services transferred over time — 692 2 33 13 28 768 — 692 24 33 13 50 812 Total 1,082 692 218 163 956 286 3,397 2019 All figures in £ millions Assessment & Virtual English Workforce Higher Strategic Total Courseware Products transferred at a point in time 50 — 152 — 492 260 954 Products and services transferred over time 14 — 22 — 594 66 696 64 — 174 — 1,086 326 1,650 Assessments Products transferred at a point in time 162 — 4 8 — — 174 Products and services transferred over time 1,054 — 91 145 — — 1,290 1,216 — 95 153 — — 1,464 Services Products transferred at a point in time — — 48 — — 38 86 Products and services transferred over time — 584 3 32 16 34 669 — 584 51 32 16 72 755 Total 1,280 584 320 185 1,102 398 3,869 |
Summary of remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers | The below table depicts the remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers. 2021 All figures in £ millions Sales Deferred Committed Total remaining 2022 2023 2024 Courseware Products transferred at a point in time 634 1 — 1 1 — — Products and services transferred over time 631 93 — 93 60 11 22 Assessments Products transferred at a point in time 195 — — — — — — Products and services transferred over time 1,164 255 442 697 503 191 3 Services Products transferred at a point in time 36 — — — — — — Products and services transferred over time – subscriptions 290 13 10 23 23 — — Products and services transferred over time – other ongoing performance obligations 478 24 220 244 244 — — Total 3,428 386 672 1,058 831 202 25 2020 All figures in £ millions Sales Deferred Committed Total remaining 2021 2022 2023 Courseware Products transferred at a point in time 670 — — — — — — Products and services transferred over time 696 105 14 119 84 14 21 Assessments Products transferred at a point in time 148 1 — 1 1 — — Products and services transferred over time 1,071 217 413 630 426 203 1 Services Products transferred at a point in time 44 — — — — — — Products and services transferred over time – subscriptions 323 18 10 28 27 1 — Products and services transferred over time – other ongoing performance obligations 445 18 195 213 213 — — Total 3,397 359 632 991 751 218 22 2019 All figures in £ millions Sales Deferred Committed Total remaining 2020 2021 2022 Courseware Products transferred at a point in time 954 2 — 2 2 — — Products and services transferred over time 696 118 — 118 82 13 23 Assessments Products transferred at a point in time 174 — — — — — — Products and services transferred over time 1,290 206 375 581 433 146 2 Services 1 Products transferred at a point in time 86 2 — 2 2 — — Products and services transferred over time – subscriptions 310 11 — 11 11 — — Products and services transferred over time – other ongoing performance obligations 359 21 106 127 126 1 — Total 3,869 360 481 841 656 160 25 |
Operating expenses (Tables)
Operating expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Operating Expenses by Function | All figures in £ millions 2021 2020 2019 By function: Cost of goods sold 1,747 1,767 1,858 Operating expenses Distribution costs 62 59 73 Selling, marketing and product development costs 521 572 631 Administrative and other expenses 802 816 999 Restructuring costs 214 — 157 Other income (37 ) (45 ) (54 ) Total net operating expenses 1,562 1,402 1,806 Other net gains and losses (63 ) (178 ) (16 ) Total 3,246 2,991 3,648 |
Summary of Analysis of Restructuring Costs | All figures in £ millions 2021 2020 2019 By nature: Product costs 19 — 16 Employee costs 32 — 90 Impairment of non-current 145 — 14 Property and facilities 11 — 12 Technology and communications 3 — 2 Professional and outsourced services 4 — 17 General and administrative costs — — 6 Total restructuring – operating expenses 214 — 157 Share of associate restructuring — — 2 Total 214 — 159 |
Summary of Operating Expenses by Nature | All figures in £ millions Notes 2021 2020 2019 By nature: Royalties expensed 185 191 242 Other product costs 353 349 466 Employee benefit expense 5 1,365 1,337 1,452 Contract labour 69 67 139 Employee-related expense 21 30 94 Promotional costs 239 233 254 Depreciation and impairment of property, plant and equipment 10 241 125 123 Amortisation and impairment of intangible assets – product development 20 279 280 271 Amortisation and impairment of intangible assets – software 11 117 112 115 Amortisation and impairment of intangible assets – other 11 50 80 151 Property and facilities 124 85 96 Technology and communications 215 216 196 Professional and outsourced services 477 498 480 Other general and administrative costs 58 71 104 Costs capitalised (447 ) (460 ) (465 ) Other net gains and losses (63 ) (178 ) (16 ) Other income (37 ) (45 ) (54 ) Total 3,246 2,991 3,648 |
Summary of Services From the Group's Auditors | All figures in £ millions 2021 2020 2019 The audit of parent company and consolidated financial statements 5 5 5 The audit of the company’s subsidiaries 2 2 2 Total audit fees 7 7 7 Audit-related and other assurance services — — — Other non-audit — — — Total other services — — — Total non-audit — — — Total 7 7 7 |
Summary of Reconciliation Between Audit and Non-Audit Service Fees | Reconciliation between audit and non-audit All figures in £ millions 2021 2020 2019 Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act 7 7 7 Non-audit — — — Total 7 7 7 |
Employee information (Tables)
Employee information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Classification of Employee Benefit | All figures in £ millions Notes 2021 2020 2019 Employee benefit expense Wages and salaries (including termination costs) 1,180 1,152 1,258 Social security costs 95 96 100 Share-based payment costs 26 28 29 25 Retirement benefits – defined contribution plans 25 37 47 57 Retirement benefits – defined benefit plans 25 25 13 13 Other post-retirement medical benefits 25 — — (1 ) Total 1,365 1,337 1,452 |
Summary of Average Number of Employees | The details of the emoluments of the Directors of Pearson plc are shown in the report on Directors’ remuneration. Average number employed 2021 2020 2019 Employee numbers UK 3,395 3,304 3,309 Other European countries 878 886 927 US 11,757 11,432 12,286 Canada 593 648 694 Asia Pacific 2,738 2,812 2,800 Other countries 1,383 2,109 2,227 Total 20,744 21,191 22,243 |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Information About Finance Income and Costs | All figures in £ millions Notes 2021 2020 2019 Interest payable on financial liabilities at amortised cost and associated derivatives (41 ) (38 ) (22 ) Interest on lease liabilities (27 ) (41 ) (45 ) Net foreign exchange losses — (6 ) (5 ) Derivatives not in a hedge relationship — (22 ) (12 ) Finance costs (68 ) (107 ) (84 ) Interest receivable on financial assets at amortised cost 5 9 15 Interest on lease receivables 6 9 11 Net finance income in respect of retirement benefits 25 4 6 13 Fair value remeasurement of disposal proceeds 6 26 — Net foreign exchange gains 1 — — Derivatives not in a hedge relationship 20 — 2 Finance income 42 50 41 Net finance costs (26 ) (57 ) (43 ) |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Components of Current Tax Expense Income and Adjustments for Current Tax of Prior Periods | All figures in £ millions Notes 2021 2020 2019 Current tax Charge in respect of current year (96 ) (18 ) (51 ) Adjustments in respect of prior years (12 ) 4 21 Total current tax charge (108 ) (14 ) (30 ) Deferred tax In respect of temporary differences 98 (28 ) 59 Other adjustments in respect of prior years 13 (2 ) 5 Total deferred tax credit/(charge) 13 111 (30 ) 64 Total tax credit/(charge) 3 (44 ) 34 |
Summary of Profit Before Tax Differences Calculated | The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the UK tax rate as follows: All figures in £ millions 2021 2020 2019 Profit before tax 157 354 232 Tax calculated at UK rate (2021: 19%, 2020: 19%: 2019: 19%) (30 ) (67 ) (44 ) Effect of overseas tax rates (23 ) (6 ) (2 ) Effect of UK rate change 25 (5 ) — Joint venture and associate income reported net of tax — 1 10 Intra-group financing benefit 7 14 11 Movement in provisions for tax uncertainties — 24 3 Net expense not subject to tax (9 ) (7 ) (10 ) Gains and losses on sale of businesses not subject to tax 4 21 57 Unrecognised tax losses 6 (21 ) (17 ) Benefit from changes in local tax law 11 — — Benefit from US accounting method changes 11 — — Adjustments in respect of prior years 1 2 26 Total tax credit/(charge) 3 (44 ) 34 UK 27 23 (12 ) Overseas (24 ) (67 ) 46 Total tax credit/(charge) 3 (44 ) 34 Tax rate reflected in earnings (1.8 )% 12.5 % (14.7 )% |
Summary of Tax (Charge)/Benefit Recognised in Other Comprehensive Income | The tax benefit/(charge) recognised in other comprehensive income is as follows: All figures in £ millions 2021 2020 2019 Net exchange differences on translation of foreign operations 10 (13 ) 5 Fair value gain on other financial assets (3 ) (6 ) (4 ) Remeasurement of retirement benefit obligations (61 ) 2 22 (54 ) (17 ) 23 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Earnings Per Share | All figures in £ millions 2021 2020 2019 Earnings for the year 160 310 266 Non-controlling (1 ) — (2 ) Earnings attributable to equity shareholders 159 310 264 Weighted average number of shares (millions) 754.1 755.4 777.0 Effect of dilutive shares options (millions) 5.0 — 0.5 Weighted average number of shares (millions) for diluted earnings 759.1 755.4 777.5 Earnings per share (in pence per share) Basic 21.1 41.0 34.0 Diluted 20.9 41.0 34.0 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Dividends Declared | All figures in £ millions 2021 2020 2019 Final paid in respect of prior year 13.5 13.5 13.5 102 101 101 Interim paid in respect of current year 6.3 6.0 6.0 47 45 46 149 146 147 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Property, plant and equipment | Right-of-use assets Owned assets All figures in £ millions Land and Plant and Land and Plant and Assets in Total Cost At 1 January 2020 460 23 300 325 36 1,144 Exchange differences (11 ) (2 ) (7 ) (11 ) (1 ) (32 ) Additions 62 — 7 5 37 111 Disposals and retirements (13 ) (9 ) (23 ) (29 ) (1 ) (75 ) Reclassifications and transfers — — 20 21 (50 ) (9 ) Transfer to assets classified as held for sale (59 ) — (1 ) (3 ) — (63 ) At 31 December 2020 439 12 296 308 21 1,076 Exchange differences — — 2 (3 ) — (1 ) Additions 32 — 8 17 39 96 Disposals and retirements (6 ) (7 ) (100 ) (72 ) — (185 ) Reclassifications and transfers — — 35 — (31 ) 4 Transfer to assets classified as held for sale — — (15 ) — — (15 ) At 31 December 2021 465 5 226 250 29 975 Right-of-use Owned assets All figures in £ millions Land and Plant and Land and Plant and Assets in Total Depreciation and impairment At 1 January 2020 (58 ) (16 ) (200 ) (252 ) — (526 ) Exchange differences 2 1 6 9 — 18 Charge for the year (65 ) (3 ) (25 ) (32 ) — (125 ) Disposals and retirements 1 9 22 29 — 61 Reclassifications and transfers — — (2 ) 2 — — Impairment of assets to be classified as held for sale (4 ) — — — — (4 ) Transfer to assets classified as held for sale 14 — — 1 — 15 At 31 December 2020 (110 ) (9 ) (199 ) (243 ) — (561 ) Exchange differences (1 ) 1 (1 ) 1 — — Charge for the year (46 ) (3 ) (16 ) (30 ) — (95 ) Disposals and retirements 7 6 99 71 — 183 Reclassifications and transfers — — (5 ) 7 — 2 Impairment (119 ) — (22 ) (5 ) — (146 ) Transfer to assets classified as held for sale — — 8 — — 8 At 31 December 2021 (269 ) (5 ) (136 ) (199 ) — (609 ) Carrying amounts At 1 January 2020 402 7 100 73 36 618 At 31 December 2020 329 3 97 65 21 515 At 31 December 2021 196 — 90 51 29 366 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Intangible Assets | All figures in £ millions Goodwill Software Acquired Acquired Acquired Other Total Cost At 1 January 2020 2,139 1,039 793 238 179 413 4,801 Exchange differences (45 ) (24 ) (25 ) (19 ) (2 ) (48 ) (163 ) Additions – internal development — 80 — — — — 80 Additions – purchased — 1 — — — — 1 Disposals and retirements — (6 ) (17 ) (21 ) (80 ) (16 ) (140 ) Transfers — 14 — — — — 14 At 31 December 2020 2,094 1,104 751 198 97 349 4,593 Exchange differences 8 5 4 (2 ) — (2 ) 13 Additions – internal development — 110 — — — — 110 Additions – purchased — 2 — — — — 2 Disposals and retirements — (135 ) — (25 ) — (43 ) (203 ) Acquisition of subsidiary 43 — — — — 27 70 Disposal of subsidiary — — (14 ) (3 ) — (10 ) (27 ) Transfers — 1 — — — — 1 At 31 December 2021 2,145 1,087 741 168 97 321 4,559 All figures in £ millions Goodwill Software Acquired Acquired Acquired Other Total Amortisation and impairment At 1 January 2020 — (588 ) (588 ) (178 ) (176 ) (371 ) (1,901 ) Exchange differences — 18 23 13 2 46 102 Charge for the year — (112 ) (44 ) (14 ) (2 ) (8 ) (180 ) Impairment charge — — (2 ) — — (10 ) (12 ) Disposals — 6 17 21 81 15 140 At 31 December 2020 — (676 ) (594 ) (158 ) (95 ) (328 ) (1,851 ) Exchange differences — (5 ) (4 ) 1 (1 ) 4 (5 ) Charge for the year — (113 ) (34 ) (8 ) — (8 ) (163 ) Impairment charge — (4 ) — — — — (4 ) Disposals and retirements — 135 — 25 — 43 203 Disposal of subsidiary — — 12 2 — 10 24 Transfers — 6 — — — — 6 At 31 December 2021 — (657 ) (620 ) (138 ) (96 ) (279 ) (1,790 ) Carrying amounts At 1 January 2020 2,139 451 205 60 3 42 2,900 At 31 December 2020 2,094 428 157 40 2 21 2,742 At 31 December 2021 2,145 430 121 30 1 42 2,769 |
Summary of Useful Economic Life of Intangible Assets | The range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: 2021 Useful economic life Class of intangible asset Acquired customer lists, contracts and relationships 3-20 years Acquired trademarks and brands 2-20 years Acquired publishing rights 5-20 years Other intangibles acquired 2-20 years |
Summary of Amortisation Profile of Intangible Assets | The expected amortisation profile of acquired intangible assets i s 2021 All figures in £ millions One to Six to Total Class of intangible asset Acquired customer lists, contracts and relationships 92 29 121 Acquired trademarks and brands 24 6 30 Acquired publishing rights 1 — 1 Other intangibles acquired 27 15 42 |
Summary of Carrying Value of Goodwill | 2021 CGUs 2021 All figures in £ millions Goodwill Assessment & Qualifications 1,198 Virtual Learning 395 English Language Learning 153 Workforce Skills 223 Higher Education 68 Strategic Review (includes the separate CGUs of China, India, South Africa, Canada and Other Strategic Review) 108 Total 2,145 2020 CGUs 2020 All figures in £ millions Goodwill North American Courseware — OPM 18 Virtual Schools 374 Assessments 1,002 International (includes the separate CGUs of Brazil, China, India and South Africa) 700 Total 2,094 |
Summary of Detailed Information About In Carrying Value Of Goodwill | The table below shows the key assumptions used by management in the value in use calculations. Discount rate Perpetuity Assessment & Qualifications 11.2 % 2.0 % Virtual Learning 10.9 % 2.0 % English Language Learning 9.1 % 3.0 % Workforce Skills 8.9 % 2.0 % Higher Education 11.1 % 2.0 % Strategic Review 8.9 - 17.1 % 2.0 - 5.0 % |
Investments in joint ventures_2
Investments in joint ventures and associates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Amounts Recognized in Financial Statements | The amounts recognised in the balance sheet are as follows: All figures in £ millions 2021 2020 Associates 24 6 Total 24 6 The amounts recognised in the income statement are as follows: All figures in £ millions 2021 2020 Associates 1 5 Total 1 5 |
Deferred income tax (Tables)
Deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Deferred Income Tax | All figures in £ millions 2021 2020 Deferred income tax assets 57 32 Deferred income tax liabilities (40 ) (62 ) Net deferred income tax asset/(liability) 17 (30 ) |
Schedule of Movement on Net Deferred Income Assets and Liabilities | The movement in deferred income tax assets and liabilities during the year is as follows: All figures in £ millions Trading Accruals Retirement Deferred Goodwill and Interest Other Total Deferred income tax assets/ (liabilities) At 1 January 2020 89 34 (38 ) 41 (199 ) 57 27 11 Exchange differences 2 (3 ) (1 ) (2 ) 2 (4 ) (2 ) (8 ) Income statement (charge)/benefit (44 ) 4 (12 ) 6 (12 ) 23 5 (30 ) Tax benefit/(charge) in other comprehensive income — — 2 — — — (5 ) (3 ) At 31 December 2020 47 35 (49 ) 45 (209 ) 76 25 (30 ) Exchange differences — (1 ) — — (2 ) — 2 (1 ) Acquisition of subsidiaries 1 — — — 4 — — 5 Income statement benefit/(charge) 34 30 2 7 29 (21 ) 30 111 Tax charge in other comprehensive income — — (61 ) — — — (7 ) (68 ) At 31 December 2021 82 64 (108 ) 52 (178 ) 55 50 17 |
Classification of financial i_2
Classification of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Classification of Each Class of Financial Assets and their Carrying Values | The accounting classification of each class of the Group’s financial assets, and their carrying values, is as follows: 2021 2020 Fair value Amortised Fair value Amortised All figures in £ Notes Fair value Fair value Fair value Financial Total Fair value Fair value Fair value Financial Total Investments in unlisted securities 15 113 — — — 113 138 — — — 138 Cash and cash equivalents 17 — 84 — 853 937 — 93 — 1,004 1,097 Derivative financial instruments 16 — — 32 — 32 — 2 61 — 63 Trade receivables 22 — — — 854 854 — — — 803 803 Investment in finance lease receivable 22 — — — 115 115 — — — 130 130 Other receivable — 87 — — 87 — 96 — — 96 Total financial assets 113 171 32 1,822 2,138 138 191 61 1,937 2,327 |
Schedule of Accounting Classification of Class of Financial Liabilities, Together with their Carrying Values and Market Values | The accounting classification of each class of the Group’s financial liabilities, together with their carrying values and market values, is as follows: 2021 2020 Fair value Amortised Fair value Amortised All figures in £ millions Notes Fair value Fair value Other Total Total Fair value Fair value Other Total Total Derivative financial instruments 16 (12 ) (22 ) — (34 ) (34 ) (30 ) (22 ) — (52 ) (52 ) Trade payables 24 — — (351 ) (351 ) (351 ) — — (340 ) (340 ) (340 ) Bank loans and overdrafts 18 — — — — — — — (3 ) (3 ) (3 ) Other borrowings due within one year 18 — — (155 ) (155 ) (155 ) — — (251 ) (251 ) (249 ) Borrowings due after more than one year 18 — — (1,245 ) (1,245 ) (1,276 ) — — (1,397 ) (1,397 ) (1,451 ) Total financial liabilities (12 ) (22 ) (1,751 ) (1,785 ) (1,816 ) (30 ) (22 ) (1,991 ) (2,043 ) (2,095 ) |
Schedule of Analysis of the Movements in Level 3 Fair Value Remeasurements | The following table analyses the movements in level 3 fair value remeasurements: 2021 2020 All figures in £ millions Other Investments Total Total At beginning of year 96 138 234 304 Exchange differences 1 1 2 (11 ) Acquisition of investments and other receivable — 4 4 6 Disposal of investments and other payables (16 ) (54 ) (70 ) (105 ) Fair value movements 6 24 30 40 At end of year 87 113 200 234 |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Other Financial Assets | All figures in £ millions 2021 2020 At beginning of year 138 122 Exchange differences 1 (4 ) Acquisition of investments 4 6 Disposal of investments (54 ) — Fair value movements 24 14 At end of year 113 138 |
Derivative financial instrume_2
Derivative financial instruments and hedge accounting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Outstanding Derivative Financial Instruments | The Group’s approach to the management of financial risks is set out in note 19. The Group’s outstanding derivative financial instruments are as follows: 2021 2020 All figures in £ millions Gross notional Assets Liabilities Gross notional Assets Liabilities Interest rate derivatives – in a fair value hedge relationship 168 5 — 354 12 — Interest rate derivatives – not in a hedge relationship 217 — (9 ) 550 — (27 ) Cross-currency rate derivatives – in a hedge relationship 331 24 (21 ) 516 44 (20 ) FX derivatives – in a hedge relationship 237 3 (1 ) 193 5 (2 ) FX derivatives – not in a hedge relationship 193 — (3 ) 361 2 (3 ) Total 1,146 32 (34 ) 1,974 63 (52 ) Analysed as expiring: In less than one year 393 2 (4 ) 1,238 18 (12 ) Later than one year and not later than five years 679 30 (26 ) 663 45 (32 ) Later than five years 74 — (4 ) 73 — (8 ) Total 1,146 32 (34 ) 1,974 63 (52 ) |
Summary of Instruments to Hedge Exposures to Changes in Interest Rates and Foreign Currency Risk Associated with Borrowings | The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings: 2021 All figures in £ millions Carrying amount of hedging instruments Change in fair value of hedging instrument used to determine hedge ineffectiveness Nominal amounts of Derivative financial instruments for interest rate risk 5 (5 ) 168 Derivative financial instruments for currency risk 24 (20 ) 168 2020 All figures in £ millions Carrying amount of Change in fair value of hedging instrument Nominal amounts of Derivative financial instruments for interest rate risk 12 — 354 Derivative financial instruments for currency risk 44 19 354 |
Summary of Amounts at the Reporting Rate Relating to Items Designated as Hedge Items | The amounts at the reporting date relating to items designated as hedge items were as follows: 2021 All figures in £ millions Carrying amount of hedged items Accumulated amount of fair value hedge Change in fair value Hedge Line item in profit or loss that includes hedge ineffectiveness Interest rate risk Financial liabilities – borrowings (173 ) (4 ) 5 — n/a Currency risk Financial liabilities – borrowings (173 ) n/a 20 — n/a 2020 All figures in £ millions Carrying amount of hedged items Accumulated amount of fair value hedge Change in fair value Hedge Line item in profit or loss that includes hedge Interest rate risk Financial liabilities – borrowings (367 ) (9 ) — — n/a Currency risk Financial liabilities – borrowings (367 ) n/a (19 ) — n/a |
Summary of Amounts Related to Items Designated as Hedging Instruments | The amounts related to items designated as hedging instruments were as follows: 2021 All figures in £ millions Carrying amount of Change in value of hedging instrument used Nominal amounts of Hedging Hedge profit or loss Derivative financial instruments (19 ) (2 ) (400 ) (2 ) — Financial liabilities – borrowings (240 ) 4 (240 ) 4 — 2020 All figures in £ millions Carrying amount of hedging Change in value to determine hedge Nominal amounts of Hedging OCI Hedge profit or loss Derivative financial instruments (17 ) 3 (355 ) 3 — Financial liabilities – borrowings (246 ) 1 (246 ) 1 — |
Disclosure of Derivative Financial Assets and Liabilities Subject to Offsetting Arrangements | Derivative financial assets and liabilities subject to offsetting arrangements are as follows: 2021 2020 All figures in £ millions Gross Gross Net Gross Gross Net Counterparties in an asset position 17 (12 ) 5 35 (10 ) 25 Counterparties in a liability position 15 (22 ) (7 ) 28 (42 ) (14 ) Total as presented in the balance sheet 32 (34 ) (2 ) 63 (52 ) 11 |
Cash and cash equivalents (ex_2
Cash and cash equivalents (excluding overdrafts) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | All figures in £ millions 2021 2020 Cash at bank and in hand 660 599 Short-term bank deposits 277 498 937 1,097 |
Summary of Cash and Cash Equivalents for Purpose of CashFlow Statement | Cash and cash equivalents include the following for the purpose of the cash flow statement: All figures in £ millions 2021 2020 Cash and cash equivalents 937 1,116 Bank overdrafts — (3 ) 937 1,113 |
Financial liabilities - borro_2
Financial liabilities - borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Current and Non - Current Borrowings | The Group’s current and non-current All figures in £ millions 2021 2020 Non-current 3.75% US dollar notes 2022 117 — 86 3.25% US dollar notes 2023 (nominal amount $94m) 70 69 1.375% euro notes 2025 (nominal amount €300m) 257 279 3.75% GBP notes 2030 (nominal amount £350m) 353 353 Lease liabilities (see note 35) 565 610 1,245 1,397 Current (due within one year or on demand) Bank loans and overdrafts — 3 1.875% euro notes 2021 (nominal amount €195m) — 178 3.75% US dollar notes 2022 (nominal amount $117m) 87 — Lease liabilities (see note 35) 68 73 155 254 Total borrowings 1,400 1,651 |
Summary of Maturities of the Group's Non-Current Borrowings | The maturities of the Group’s non-current All figures in £ millions 2021 2020 Between one and two years 140 160 Between two and five years 435 531 Over five years 670 706 1,245 1,397 |
Summary of Carrying Amounts and Market Value of Borrowings | 2021 2020 All figures in £ millions Effective Carrying Market Effective Carrying Market Bank loans and overdrafts n/a — — n/a 3 3 1.875% euro notes 2021 n/a — — 2.04 % 178 176 3.75% US dollar notes 2022 3.94 % 87 87 3.94 % 86 88 3.25% US dollar notes 2023 3.36 % 70 71 3.36 % 69 71 1.375% euro notes 2025 1.44 % 257 260 1.44 % 279 278 3.75% GBP notes 2030 3.93 % 353 380 3.93 % 353 404 767 798 968 1,020 |
Summary of Carrying Amounts of Borrowings which Denominated in Currencies | The carrying amounts of the Group’s borrowings before the effect of derivatives (see notes 16 and 19 for further information on the impact of derivatives) are denominated in the following currencies: All figures in £ millions 2021 2020 US dollar 434 458 Sterling 674 686 Euro 268 472 Other 24 35 1,400 1,651 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Net Debt Position | The Group’s net debt position is set out below: All figures in £ millions 2021 2020 Cash and cash equivalents 937 1,116 Derivative financial instruments (2 ) 11 Bank loans and overdrafts — (3 ) Bonds (767 ) (965 ) Investment in finance lease receivable 115 130 Lease liabilities (633 ) (752 ) Net debt (350 ) (463 ) |
Summary of Sensitivity of The Carrying Value of Financial Instruments to Fluctuations in Interest Rates and Exchange Rates | As at 31 December 2021, the sensitivity of the carrying value of the Group’s financial instruments to fluctuations in interest rates and exchange rates is as follows: 2021 All figures in £ millions Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 113 — — (9 ) 11 Other receivable 87 — — (8 ) 10 Cash and cash equivalents 937 — — (43 ) 53 Derivative financial instruments (2 ) 6 (6 ) (1 ) 1 Bonds (767 ) 5 (5 ) 37 (45 ) Other borrowings (633 ) — — 57 (70 ) Investment in finance lease receivable 115 — — (11 ) 13 Other net financial assets 503 — — (42 ) 51 Total 353 11 (11 ) (20 ) 24 2020 All figures in £ millions Carrying value Impact of 1% increase in interest rates Impact of 1% decrease in interest rates Impact of 10% strengthening in sterling Impact of 10% weakening in sterling Investments in unlisted securities 138 — — (11 ) 13 Other receivable 96 — — (9 ) 11 Cash and cash equivalents 1,097 — — (55 ) 25 Derivative financial instruments 11 17 (19 ) 3 1 Bonds (965 ) 9 (9 ) 54 (67 ) Other borrowings (686 ) — — 62 (76 ) Investment in finance lease receivable 130 — — (12 ) 14 Other net financial assets 463 — — (44 ) 40 Total 284 26 (28 ) (12 ) (39 ) |
Schedule of Contractual Undiscounted Cash Flows Analysed by Maturity and Currency | Analysed by maturity Analysed by currency All figures in £ millions Greater than Later than Five years Total USD GBP Other Total At 31 December 2021 Bonds 107 386 403 896 162 468 266 896 Rate derivatives – inflows (7 ) (331 ) — (338 ) (9 ) (150 ) (179 ) (338 ) Rate derivatives – outflows 12 339 4 355 203 150 2 355 FX forwards – inflows (148 ) — — (148 ) — (148 ) — (148 ) FX forwards – outflows 148 — — 148 90 — 58 148 Total 112 394 407 913 446 320 147 913 At 31 December 2020 Bonds 200 497 416 1,113 166 481 466 1,113 Rate derivatives – inflows (186 ) (350 ) (1 ) (537 ) (12 ) (152 ) (373 ) (537 ) Rate derivatives – outflows 180 350 12 542 209 330 3 542 FX forwards – inflows (68 ) — — (68 ) — (68 ) — (68 ) FX forwards – outflows 68 — — 68 36 — 32 68 Total 194 497 427 1,118 399 591 128 1,118 |
Intangible assets - product d_2
Intangible assets - product development (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Intangible Assets Product Development | All figures in £ millions 2021 2020 Cost At 1 January 2,514 2,275 Exchange differences — (48 ) Additions 287 323 Disposals and retirements (92 ) (31 ) Disposal of subsidiary (9 ) — Transfers (2 ) (5 ) At 31 December 2,698 2,514 Amortisation At 1 January (1,609 ) (1,405 ) Exchange differences (3 ) 45 Charge for the year (260 ) (280 ) Impairment (19 ) — Disposals and retirements 92 31 Disposal of subsidiary 3 — Transfers (8 ) — At 31 December (1,804 ) (1,609 ) Carrying amounts at 31 December 2021 894 905 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Current Inventories | All figures in £ millions 2021 2020 Raw materials 7 5 Work in progress 2 2 Finished goods 84 116 Returns asset 5 6 98 129 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Trade and Other Receivables | All figures in £ millions 2021 2020 Current Trade receivables 853 795 Royalty advances 2 2 Prepayments 198 189 Investment in finance lease receivable 15 18 Accrued income 14 12 Other receivables 175 102 1,257 1,118 Non-current Trade receivables 1 8 Royalty advances 5 3 Prepayments 10 13 Investment in finance lease receivable 100 112 Accrued income 1 1 Interest receivable 8 — Other receivables 4 86 129 223 |
Summary of Movements on Provision for Bad and Doubtful Debts | The movements in the provision for bad and doubtful debts are as follows: All figures in £ millions 2021 2020 At beginning of year (74 ) (92 ) Exchange differences — 6 Income statement movements (15 ) (26 ) Utilised 26 32 Disposal of subsidiary — 6 At end of year (63 ) (74 ) |
Summary of Ageing of Group's Trade Receivables | The ageing of the Group’s gross trade receivables is as follows: All figures in £ millions 2021 2020 Within due date 766 687 Up to three months past due date 58 73 Three to six months past due date 20 12 Six to nine months past due date 13 30 Nine to 12 months past due date 5 18 More than 12 months past due date 55 57 Gross trade receivables 917 877 |
Provisions for other liabilit_2
Provisions for other liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Provisions for Other Liabilities and Charges | All figures in £ millions Property Disposals Legal Total At 1 January 2021 8 4 21 33 Exchange differences — — 2 2 Provisions made during the year 9 1 36 46 Provisions reversed during the year (2 ) — (2 ) (4 ) Provisions used during the year — — (27 ) (27 ) Disposal of subsidiary — (3 ) — (3 ) At 31 December 2021 15 2 30 47 |
Summary of Analysis of Provisions | Analysis of provisions: 2021 All figures in £ millions Property Disposals Legal Total Current 11 2 27 40 Non-current 4 — 3 7 15 2 30 47 2020 Current 2 4 19 25 Non-current 6 — 2 8 8 4 21 33 |
Trade and other liabilities (Ta
Trade and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Trade and Other Liabilities | All figures in £ millions 2021 2020 Trade payables 351 340 Sales return liability 83 86 Social security and other taxes 13 17 Accruals 317 290 Deferred income 386 356 Interest payable 42 30 Other liabilities 159 157 1,351 1,276 Less: non-current portion Accruals 1 — Deferred income 56 52 Other liabilities 38 28 95 80 Current portion 1,256 1,196 |
Retirement benefit and other _2
Retirement benefit and other post-retirement obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Defined Plan Analysis | At 31 December 2021, the UK Group plan had approximately 26,500 members, analysed in the following table: All figures in% Active Deferred Pensioners Total Defined benefit — 18 33 51 Defined contribution 11 38 — 49 Total 11 56 33 100 |
Summary of Principal Assumptions Used for UK Group Plan and US PRMB | The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the other plans, which primarily relate to US pension plans. 2021 2020 2019 All figures in % UK Group Other plans PRMB UK Group Other plans PRMB UK Group Other plans PRMB Inflation 3.3 1.4 — 2.9 0.6 — 3.0 1.7 1.5 Rate used to discount plan liabilities 1.9 2.8 2.6 1.4 2.2 2.1 2.0 3.0 3.1 Expected rate of increase in salaries 3.8 2.7 — 3.4 2.2 — 3.5 2.9 3.0 Expected rate of increase for pensions in payment and deferred pensions 2.35 to 5.10 — — 2.05 to 5.05 — — 1.85 to 5.05 — — Initial rate of increase in healthcare rate — — 6.3 — — 6.5 — — 6.8 Ultimate rate of increase in healthcare rate — — 5.0 — — 5.0 — — 5.0 |
Summary of Remaining Average Life Expectancy in Years of Pensioner Retiring at Age 65 | Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the UK Group plan and US plans is as follows: UK US All figures in years 2021 2020 2021 2020 Male 22.6 24.0 20.5 20.4 Female 24.8 24.3 22.5 22.4 The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans is as follows: UK US All figures in years 2021 2020 2021 2020 Male 24.2 25.6 22.0 21.9 Female 26.5 26.1 23.9 23.8 |
Summary of Amounts Recognised in Income Statement | The amounts recognised in the income statement are as follows: 2021 All figures in £ millions UK Defined Sub-total Defined contribution PRMB Total Current service cost 17 2 19 37 — 56 Past service cost — — — — — — Curtailments — — — — — — Administration expenses 6 — 6 — — 6 Total operating expense 23 2 25 37 — 62 Interest on plan assets (55 ) (2 ) (57 ) — — (57 ) Interest on plan liabilities 49 3 52 — 1 53 Net finance (income)/expense (6 ) 1 (5 ) — 1 (4 ) Net income statement charge 17 3 20 37 1 58 2020 All figures in £ millions UK Defined Sub-total Defined contribution PRMB Total Current service cost 6 2 8 47 — 55 Past service cost 1 — 1 — — 1 Curtailments — (1 ) (1 ) — — (1 ) Administration expenses 5 — 5 — — 5 Total operating expense 12 1 13 47 — 60 Interest on plan assets (66 ) (3 ) (69 ) — — (69 ) Interest on plan liabilities 57 5 62 — 1 63 Net finance (income)/expense (9 ) 2 (7 ) — 1 (6 ) Net income statement charge 3 3 6 47 1 54 2019 All figures in £ millions UK Defined Sub-total Defined PRMB Total Current service cost 6 3 9 57 — 66 Past service cost — — — — — — Curtailments (2 ) — (2 ) — (1 ) (3 ) Administration expenses 6 — 6 — — 6 Total operating expense 10 3 13 57 (1 ) 69 Interest on plan assets (89 ) (5 ) (94 ) — — (94 ) Interest on plan liabilities 73 6 79 — 2 81 Net finance (income)/expense (16 ) 1 (15 ) — 2 (13 ) Net income statement charge (6 ) 4 (2 ) 57 1 56 |
Summary of Amounts Recognised in Balance Sheet | The amounts recognised in the balance sheet are as follows: 2021 2020 All figures in £ millions UK plan Other plans Other Total UK Other plans Other Total Fair value of plan assets 4,125 120 — 4,245 3,588 119 — 3,707 Present value of defined benefit obligation (3,588 ) (123 ) (20 ) (3,731 ) (3,178 ) (135 ) (21 ) (3,334 ) Net pension asset/(liability) 537 (3 ) (20 ) 514 410 (16 ) (21 ) 373 Other post-retirement medical benefit obligation (34 ) (39 ) Other pension accruals (9 ) (9 ) Net retirement benefit asset 471 325 Analysed as: Retirement benefit assets 537 410 Retirement benefit obligations (66 ) (85 ) |
Summary of Gains (Losses) Recognised in Other Comprehensive Income | The following gains/(losses) have been recognised in other comprehensive income: All figures in £ millions 2021 2020 2019 Amounts recognised for defined benefit plans 145 (24 ) (148 ) Amounts recognised for post-retirement medical benefit plans 4 1 3 Total recognised in year 149 (23 ) (145 ) |
Summary of Fair Value of Plan Assets | The fair value of plan assets comprises the following: 2021 2020 All figures in % UK Group Other Total UK Group Other Total Insurance 35 — 35 42 — 42 Equities 11 1 12 1 1 2 Fixed interest securities 7 2 9 5 1 6 Property 5 — 5 5 — 5 Pooled asset investment funds 30 — 30 34 — 34 Other 9 — 9 11 — 11 |
Summary of Quoted and Non Quoted Market Price | The plan assets do not include any of the Group’s own financial instruments, or any property occupied by the Group. The table below further disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not: 2021 2020 All figures in % Quoted market price No quoted market price Quoted market price No quoted market price Insurance 35 — 42 — Equities 11 1 — 2 Fixed-interest securities 9 — 6 — Property — 5 — 5 Pooled asset investment funds 30 — 34 — Other — 9 — 11 Total 85 15 82 18 |
Summary of Liquidity Profile of UK Group Plan Assets | The liquidity profile of the UK Group plan assets is as follows: All figures in % 2021 2020 Liquid – call <1 month 51 39 Less liquid – call 1–3 months — — Illiquid – call >3 months 49 61 |
Summary of Changes in Values of Plan Assets and Liabilities | Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows: All figures in £ millions 2021 2020 UK Group Other plans Total UK Group Other plans Total Fair value of plan assets Opening fair value of plan assets 3,588 119 3,707 3,341 120 3,461 Recognition of Money Purchase assets 513 — 513 — — — Exchange differences — 2 2 — (3 ) (3 ) Interest on plan assets 55 2 57 66 3 69 Return on plan assets excluding interest 71 6 77 297 8 305 Contributions by employer 14 1 15 3 5 8 Benefits paid (123 ) (10 ) (133 ) (119 ) (14 ) (133 ) Contributions by employees 7 — 7 — — — Closing fair value of plan assets 4,125 120 4,245 3,588 119 3,707 Present value of defined benefit obligation Opening defined benefit obligation (3,178 ) (156 ) (3,334 ) (2,912 ) (157 ) (3,069 ) Recognition of Money Purchase liabilities (513 ) — (513 ) — — — Exchange differences — (1 ) (1 ) — 3 3 Current service cost (17 ) (2 ) (19 ) (6 ) (2 ) (8 ) Past service cost — — — (1 ) — (1 ) Curtailments — — — — 1 1 Administration expenses (6 ) — (6 ) (5 ) — (5 ) Interest on plan liabilities (49 ) (3 ) (52 ) (57 ) (5 ) (62 ) Actuarial (losses)/gains – experience (100 ) 3 (97 ) (18 ) (2 ) (20 ) Actuarial (losses)/gains – demographic (1 ) — (1 ) 1 1 2 Actuarial gains/(losses) – financial 160 6 166 (299 ) (11 ) (310 ) Contributions by employee (7 ) — (7 ) — 2 2 Benefits paid 123 10 133 119 14 133 Closing defined benefit obligation (3,588 ) (143 ) (3,731 ) (3,178 ) (156 ) (3,334 ) |
Summary of Changes in Value of US PRMB | Changes in the value of the US PRMB are as follows: All figures in £ millions 2021 2020 Opening defined benefit obligation (39 ) (43 ) Exchange differences (1 ) 1 Interest on plan liabilities (1 ) (1 ) Actuarial gains – experience 2 3 Actuarial gains – demographic — 1 Actuarial gains/(losses) – financial 2 (3 ) Benefits paid 3 3 Closing defined benefit obligation (34 ) (39 ) |
Summary of Effect Percentage of Discount Rate Increase (Decrease) on Defined Benefit Obligation and Total Pension Expense | The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense is as follows: 2021 All figures in £ millions 1% 1% Effect: (Decrease)/increase in defined benefit obligation – UK Group plan (450 ) 616 (Decrease)/increase in defined benefit obligation – US plan (9 ) 11 The effect of members living one year more or one year less on the defined benefit obligation is as follows: 2021 All figures in £ millions One year One year Effect: Increase/(decrease) in defined benefit obligation – UK Group plan 107 (108 ) Increase/(decrease) in defined benefit obligation – US plan 4 (3 ) The effect of a half percentage point increase and decrease in the inflation rate is as follows: 2021 All figures in £ millions 0.5% 0.5% Effect: Increase/(decrease) in defined benefit obligation – UK Group plan 142 (141 ) Increase/(decrease) in defined benefit obligation – US plan — — |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Charges in Income Statement in Respect of Equity-settled Share-based Payment Plans | The Group recognised the following charges in the income statement in respect of its equity-settled share-based payment plans: All figures in £ millions 2021 2020 2019 Pearson plans 28 29 25 |
Summary of Weighted Average Estimated Fair Values and Inputs into Black-Scholes Model | 2021 2020 Number of Weighted average Number of Weighted average Long-Term Incentive Plan 6,394 7.27 5,598 4.94 Management Incentive Plan 630 7.71 696 5.29 |
Share capital and share premi_2
Share capital and share premium (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Share Capital and Share Premium | Number of Share £m Share At 1 January 2020 782,099 195 2,614 Issue of ordinary shares – share option schemes 1,236 — 6 Purchase of own shares (30,077 ) (7 ) — At 31 December 2020 753,258 188 2,620 Issue of ordinary shares – share option schemes 3,544 1 6 Purchase of own shares — — — At 31 December 2021 756,802 189 2,626 |
Treasury shares (Tables)
Treasury shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Treasury Shares | Number of £m At 1 January 2020 3,258 24 Purchase of treasury shares 1,105 6 Release of treasury shares (3,460 ) (23 ) At 31 December 2020 903 7 Purchase of treasury shares 2,158 16 Newly issued treasury shares 2,500 1 Release of treasury shares (3,990 ) (12 ) At 31 December 2021 1,571 12 |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Other Comprehensive Income | 2021 Attributable to equity holders of the company Non- controlling Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (6 ) — (6 ) — (6 ) Currency translation adjustment disposed — 4 — 4 — 4 Attributable tax — — 10 10 — 10 Items that are not reclassified to the income statement Fair value gain on other financial assets 24 — — 24 — 24 Attributable tax — — (3 ) (3 ) — (3 ) Remeasurement of retirement benefit obligations - Group — — 149 149 — 149 Attributable tax — — (61 ) (61 ) — (61 ) Other comprehensive income/(expense) for the year 24 (2 ) 95 117 — 117 2020 Attributable to equity holders of the company Non- Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (109 ) — (109 ) — (109 ) Currency translation adjustment disposed — (70 ) — (70 ) — (70 ) Attributable tax — — (13 ) (13 ) — (13 ) Items that are not reclassified to the income statement Fair value gain on other financial assets 14 — — 14 — 14 Attributable tax — — (6 ) (6 ) — (6 ) Remeasurement of retirement benefit obligations - Group — — (23 ) (23 ) — (23 ) Attributable tax — — 2 2 — 2 Other comprehensive income/(expense) for the year 14 (179 ) (40 ) (205 ) — (205 ) 2019 Attributable to equity holders of the company Non- Total All figures in £ millions Fair value Translation Retained Total Items that may be reclassified to the income statement Net exchange differences on translation of foreign operations – Group — (113 ) — (113 ) — (113 ) Net exchange differences on translation of foreign operations – associates — (2 ) — (2 ) — (2 ) Currency translation adjustment disposed — 4 — 4 — 4 Attributable tax — — 5 5 — 5 Items that are not reclassified to the income statement Fair value gain on other financial assets 20 — — 20 — 20 Attributable tax — — (4 ) (4 ) — (4 ) Remeasurement of retirement benefit obligations – Group — — (145 ) (145 ) — (145 ) Remeasurement of retirement benefit obligations – associates — — (4 ) (4 ) — (4 ) Attributable tax — — 22 22 — 22 Other comprehensive (expense)/income for the year 20 (111 ) (126 ) (217 ) — (217 ) |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of the Assets Acquired, and the Associated Consideration | All figures in £ millions 2021 Faethm 2021 2021 2020 Total 2019 Total Intangible assets 21 6 27 — 23 Deferred tax asset 11 — 11 — — Trade and other receivables 1 1 2 — 1 Cash 4 — 4 — — Trade and other liabilities (4 ) (1 ) (5 ) — (2 ) Deferred tax liabilities (6 ) — (6 ) — — Net assets acquired 27 6 33 — 22 Goodwill 38 5 43 — 18 Total 65 11 76 — 40 Satisfied by: Cash consideration 49 5 54 — 40 Contingent consideration 10 6 16 — — Fair value of existing investment 6 — 6 — — Total consideration 65 11 76 — 40 |
Schedule of Cash Flow on Acquisitions | The net cash outflows related to the acquisitions are set out in the table below. In addition to the current year acquisitions, the other net cash outflows on acquisition of subsidiaries in 2021, 2020 and 2019 relate to deferred payments for prior year acquisitions. All figures in £ millions 2021 Faethm 2021 2021 2020 Total 2019 Total Cash flow on acquisitions Cash – current year acquisitions (49 ) (5 ) (54 ) — (40 ) Cash and cash equivalents acquired 4 — 4 — — Deferred payments for prior year acquisitions and other items — (4 ) (4 ) (6 ) (5 ) Acquisition costs paid (1 ) — (1 ) — — Net cash outflow (46 ) (9 ) (55 ) (6 ) (45 ) |
Disposals and business closur_2
Disposals and business closures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Schedule of Disposals Including Business Closures | All figures in £ millions Notes 2021 2020 2019 Disposal of subsidiaries and associates Intangible assets (3 ) — (101 ) Property, plant and equipment (48 ) — — Investments in joint ventures and associates — (418 ) — Intangible assets – product development (6 ) — (238 ) Inventories (2 ) — (64 ) Trade and other receivables (6 ) — (70 ) Cash and cash equivalents (excluding overdrafts) (24 ) — (104 ) Net deferred income tax assets — — (100 ) Provisions for other liabilities and charges 3 — — Trade and other liabilities 4 — 520 Financial liabilities – borrowings 67 — — Cumulative currency translation adjustment 29 (4 ) 70 (4 ) Net assets disposed (19 ) (348 ) (161 ) Cash proceeds 108 531 20 Deferred proceeds — — 180 Costs of disposal (24 ) 1 (23 ) Gain on disposal 65 184 16 All figures in £ millions 2021 2020 2019 Cash flow from disposals Proceeds – current year disposals 108 531 20 Proceeds – prior year disposals 16 105 — Cash and cash equivalents disposed (24 ) — (104 ) Costs and other disposal liabilities paid (17 ) (5 ) (17 ) Net cash inflow 83 631 (101 ) Analysed as: Cash inflow from sale of subsidiaries 83 100 (101 ) Cash inflow from disposal of joint ventures and associates — 531 — |
Held for sale (Tables)
Held for sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Assets and Liabilities | The held for sale assets and liabilities in 2020 are the Group’s interests in the Pearson Institute of Higher Education in South Africa, which was completed on 5 February 2021. The held for sale balances are analysed as follows: 2021 2020 All figures in £ millions Total Total Non-current Property, plant and equipment 7 48 7 48 Current assets Trade and other receivables — 6 Cash and cash equivalents — 19 — 25 Assets classified as held for sale 7 73 Non-current Financial liabilities – borrowings — (66 ) — (66 ) Current liabilities Trade and other liabilities — (5 ) Financial liabilities – borrowings — (3 ) — (8 ) Liabilities classified as held for sale — (74 ) Net assets/(liabilities) classified as held for sale 7 (1 ) |
Cash generated from operations
Cash generated from operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Cash Generated from Operations | All figures in £ millions Notes 2021 2020 2019 Profit 160 310 266 Adjustments for: Income tax (3 ) 44 (34 ) Depreciation and impairment of property, plant and equipment 10 241 125 123 Amortisation and impairment of acquired intangibles and goodwill 11 50 80 151 Amortisation and impairment of software 11 117 112 115 Net finance costs 6 26 57 43 Share of results of joint ventures and associates 12 (1 ) (5 ) (54 ) Profit on disposal of subsidiaries, associates, investments and fixed assets (61 ) (182 ) (9 ) Other net gains and losses 2 6 — Net profit on disposal of right-of-use — (6 ) (4 ) Net foreign exchange adjustment from transactions 9 (34 ) (21 ) Investment income — — (2 ) Share-based payment costs 26 28 29 25 Product development assets (6 ) (56 ) (55 ) Inventories 22 35 (20 ) Trade and other receivables (71 ) (1 ) 59 Trade and other liabilities 37 (26 ) (157 ) Retirement benefit obligations 6 (1 ) 5 Provisions for other liabilities and charges 14 (37 ) 49 Net cash generated from operations 570 450 480 |
Summary of Proceeds from Sale of Property, Plant and Equipment | In the cash flow statement, proceeds from sale of property, plant and equipment comprise: All figures in £ millions 2021 2020 2019 Net book amount 4 2 3 Loss on sale of property, plant and equipment (4 ) (2 ) (2 ) Proceeds from sale of property, plant and equipment — — 1 |
Summary of Current and Non-current Borrowings | The movements in the Group’s current and non-current All figures in £ millions 2020 New leases/ Transfer from non-current Financing Foreign Fair value 2021 Financial liabilities Non-current 1,458 (36 ) (160 ) — 3 (20 ) 1,245 Current borrowings 248 (1 ) 160 (255 ) (4 ) 9 157 Total 1,706 (37 ) — (255 ) (1 ) (11 ) 1,402 All figures in £ millions 2019 New leases/ Transfer from Financing Foreign Fair value 2020 Financial liabilities Non-current borrowings 1,567 30 (260 ) 116 (22 ) 27 1,458 Current borrowings 79 (6 ) 260 (92 ) 5 2 248 Total 1,646 24 — 24 (17 ) 29 1,706 All figures in £ millions 2018 IFRS 16 Transition New leases/ disposal of Transfer from Financing Foreign Fair value 2019 Financial liabilities Non-current 643 792 61 (88 ) 230 (80 ) 9 1,567 Current borrowings 25 89 — 88 (139 ) 16 — 79 Total 668 881 61 — 91 (64 ) 9 1,646 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Presentation of leases for lessee [abstract] | |
Summary of information about leases in income statement | The amounts recognised in the income statement are as follows: All figures in £ millions Note 2021 2020 2019 Interest on lease liabilities (27 ) (41 ) (45 ) Expenses relating to short-term leases — (1 ) (2 ) Depreciation of right-of-use 10 (49 ) (68 ) (64 ) Impairment of right-of-use 10 (119 ) (4 ) — |
Summary of maturities of operating lease payments | Lease liabilities are included within financial liabilities – borrowings in the balance sheet, see note 18. The maturities of the Group’s lease liabilities are as follows: All figures in £ millions 2021 2020 Less than one year 92 100 One to five years 318 333 More than five years 394 441 Total undiscounted lease liabilities 804 874 Lease liabilities included in the balance sheet 633 683 Analysed as: Current 68 73 Non-current 565 610 |
Summary of information about leases in cash flow statement | The amounts recognised in the cash flow statement are as follows: All figures in £ millions 2021 2020 2019 Total cash outflow for leases as a lessee 115 133 136 |
Summary of information about leases of lessor in income statement | The amounts recognised in the income statement are as follows: All figures in £ millions 2021 2020 2019 Interest on lease receivables 6 9 11 Income from subleasing right-of-use 2 7 17 |
Summary of information about leases of lessor in cash flow statement | The amounts recognised in the cash flow statement are as follows: All figures in £ millions 2021 2020 2019 Total cash inflow for leases as a lessor 27 50 37 |
Summary of detailed information about undiscounted lease payments to be received after the reporting date | The following table sets out the maturity analysis of lease payments receivable for subleases classified as operating leases, showing the undiscounted lease payments to be received after the reporting date, and subleases classified as finance leases showing the undiscounted lease payments to be received after the reporting date and the net investment in the finance lease receivable. During the year the investment in finance lease receivable decreased by £15m (2020: decreased £66m), primarily due to payments received. All figures in £ millions Operating leases Finance leases 2021 Total 2020 Total Less than one year 1 20 21 24 One to two years — 18 18 24 Two to three years 1 19 20 18 Three to four years 2 19 21 18 Four to five years 1 19 20 18 More than five years 2 39 41 56 Total undiscounted lease payments receivable 7 134 141 158 Unearned finance income (19 ) Net investment in finance lease receivable 115 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Text block [abstract] | |
Summary of Key Management Personnel Compensation | Key management personnel are deemed to be the members of the Pearson Executive Management team. It is this committee which had responsibility for planning, directing and controlling the activities of the Group in 2021. Key management personnel compensation is disclosed below: All figures in £ millions 2021 2020 Short-term employee benefits 6 6 Retirement benefits 1 1 Share-based payment costs 8 6 Total 15 13 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) £ in Millions | Jan. 01, 2019GBP (£) | Feb. 28, 2022GBP (£) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) |
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Lease liabilities | £ 633 | £ 752 | |||
Profit before tax | 157 | 354 | £ 232 | ||
Liquid Assets | 1,600 | ||||
Notional amount | 1,146 | £ 1,974 | |||
Revolving credit facility [Member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Undrawn borrowing capacity on revolving credit facility | £ 1,190 | ||||
Revolving credit facility [Member] | Major Borrowing Amendments [Member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Notional amount | £ 1,000 | ||||
Borrowings, maturity year | 2026 | ||||
IFRS 16 [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Lease liabilities | £ 881 | ||||
Profit before tax | £ 9 | ||||
Weighted avaerage incremental borrowing rate | 5.00% | ||||
Cumulative impact of adoption of IFRS for leases | £ 83 | ||||
Right-of-use assets | 424 | ||||
Additional lease receivable | £ 215 | ||||
Sterling [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Average foreign exchange rate | 1.38 | 1.28 | |||
Year end foreign exchange rate | 1.35 | 1.37 | |||
Bottom of range [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Percentage of voting rights held in associate | 20.00% | ||||
Bottom of range [member] | Software [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 3 years | ||||
Bottom of range [member] | Internally developed software [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 3 years | ||||
Bottom of range [member] | Acquired intangible assets [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 2 years | ||||
Top of range [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Percentage of voting rights held in associate | 50.00% | ||||
Top of range [member] | Software [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 8 years | ||||
Top of range [member] | Internally developed software [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 10 years | ||||
Top of range [member] | Acquired intangible assets [member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 20 years | ||||
Top of range [member] | Product Development Assets [Member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 7 years | ||||
Top of range [member] | Platform Assets [Member] | Product Development Assets [Member] | |||||
Disclosure of Summary of Significant Accounting Policies [Line items] | |||||
Useful lives of intangible assets | 10 years |
Accounting Policies - Estimated
Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings (freehold) [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20 years |
Buildings (freehold) [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 50 years |
Buildings (leasehold) [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | over the period of the lease |
Plant and equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 3 years |
Plant and equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Sales | £ 3,428 | £ 3,397 | £ 3,869 |
Adjusted operating profit | 385 | 313 | 581 |
Costs of major restructuring | (214) | (159) | |
Intangible charges | (51) | (80) | (163) |
Other net gains and losses | 63 | 178 | 16 |
Operating profit | 183 | 411 | 275 |
Finance costs | (68) | (107) | (84) |
Finance income | 42 | 50 | 41 |
Profit before tax | 157 | 354 | 232 |
Income tax | 3 | (44) | 34 |
Profit for the year | 160 | 310 | 266 |
Share of results of joint ventures and associates | 1 | 5 | 54 |
Depreciation And Impairment | 241 | 125 | 123 |
Amortisation And Impairment | 446 | 472 | 537 |
Penguin Random House [member] | |||
Disclosure of operating segments [line items] | |||
Other net gains and losses | 180 | ||
Continuing operation [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 3,428 | 3,397 | 3,869 |
Continuing operation [member] | Penguin Random House [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Adjusted operating profit | 1 | 65 | |
Costs of major restructuring | (2) | ||
Intangible charges | (12) | ||
Other net gains and losses | 180 | ||
Operating profit | 181 | 51 | |
Share of results of joint ventures and associates | 1 | 51 | |
Assessments And Qualifications [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 1,204 | 1,082 | 1,280 |
Assessments And Qualifications [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 1,204 | 1,082 | 1,280 |
Adjusted operating profit | 216 | 147 | 252 |
Costs of major restructuring | (48) | (38) | |
Intangible charges | (13) | (29) | (23) |
Operating profit | 155 | 118 | 191 |
Depreciation And Impairment | 92 | 53 | 49 |
Amortisation And Impairment | 129 | 148 | 135 |
Virtual Learning [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 713 | 692 | 584 |
Virtual Learning [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 713 | 692 | 584 |
Adjusted operating profit | 32 | 29 | 13 |
Costs of major restructuring | (48) | (13) | |
Intangible charges | (25) | (30) | (36) |
Operating profit | (41) | (1) | (36) |
Share of results of joint ventures and associates | (1) | ||
Depreciation And Impairment | 48 | 21 | 18 |
Amortisation And Impairment | 67 | 64 | 62 |
English Language Learning [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 238 | 218 | 320 |
English Language Learning [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 238 | 218 | 320 |
Adjusted operating profit | 15 | 1 | 59 |
Costs of major restructuring | (27) | (10) | |
Intangible charges | (3) | (7) | (80) |
Operating profit | (15) | (6) | (31) |
Share of results of joint ventures and associates | 3 | 4 | 3 |
Depreciation And Impairment | 14 | 7 | 8 |
Amortisation And Impairment | 34 | 34 | 104 |
Workforce Skills [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 172 | 163 | 185 |
Workforce Skills [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 172 | 163 | 185 |
Adjusted operating profit | 27 | 26 | 31 |
Costs of major restructuring | (28) | (7) | |
Intangible charges | (7) | (8) | (9) |
Other net gains and losses | (2) | ||
Operating profit | (10) | 18 | 15 |
Share of results of joint ventures and associates | (1) | ||
Depreciation And Impairment | 9 | 5 | 5 |
Amortisation And Impairment | 25 | 24 | 24 |
Higher Education [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 849 | 956 | 1,102 |
Higher Education [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 849 | 956 | 1,102 |
Adjusted operating profit | 73 | 93 | 134 |
Costs of major restructuring | (63) | (68) | |
Intangible charges | (2) | (3) | |
Operating profit | 8 | 90 | 66 |
Depreciation And Impairment | 63 | 28 | 29 |
Amortisation And Impairment | 165 | 167 | 172 |
Strategic Review [Member] | |||
Disclosure of operating segments [line items] | |||
Sales | 252 | 286 | 398 |
Strategic Review [Member] | Continuing operation [member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Sales | 252 | 286 | 398 |
Adjusted operating profit | 22 | 16 | 27 |
Costs of major restructuring | (21) | ||
Intangible charges | (1) | (3) | (3) |
Other net gains and losses | 65 | (2) | 16 |
Operating profit | 86 | 11 | 19 |
Depreciation And Impairment | 15 | 11 | 14 |
Amortisation And Impairment | £ 26 | £ 35 | £ 40 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Sales | £ 3,428 | £ 3,397 | £ 3,869 |
Cost of major restructuring incurred | 214 | ||
Intangible amortisation charges | 51 | 80 | 163 |
Other gains and losses | 63 | 178 | 16 |
Impairment charges | 0 | 12 | 65 |
Penguin Random House [member] | |||
Disclosure of operating segments [line items] | |||
Other gains and losses | 180 | ||
Inter-segment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Sales | £ 0 | £ 0 | £ 0 |
Segment Information - Summary o
Segment Information - Summary of Operating Segments in Geographic Areas (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of geographical areas [line items] | |||
Sales | £ 3,428 | £ 3,397 | £ 3,869 |
Continuing operation [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 3,428 | 3,397 | 3,869 |
Non-current assets | 3,288 | 3,486 | |
Continuing operation [member] | UK [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 355 | 319 | 385 |
Non-current assets | 582 | 669 | |
Continuing operation [member] | Other European countries [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 249 | 216 | 244 |
Non-current assets | 123 | 129 | |
Continuing operation [member] | US [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 2,182 | 2,335 | 2,417 |
Non-current assets | 2,146 | 2,362 | |
Continuing operation [member] | Canada [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 111 | 91 | 105 |
Non-current assets | 225 | 147 | |
Continuing operation [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 359 | 251 | 441 |
Non-current assets | 192 | 149 | |
Continuing operation [member] | Other countries [member] | |||
Disclosure of geographical areas [line items] | |||
Sales | 172 | 185 | £ 277 |
Non-current assets | £ 20 | £ 30 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Summary of transfer of goods and services over time and at a point in time (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 3,428 | £ 3,397 | £ 3,869 |
Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,265 | 1,366 | 1,650 |
Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,359 | 1,219 | 1,464 |
Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 804 | 812 | 755 |
Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 634 | 670 | 954 |
Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 195 | 148 | 174 |
Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 36 | 44 | 86 |
Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 631 | 696 | 696 |
Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,164 | 1,071 | 1,290 |
Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 768 | 768 | 669 |
Assessments And Qualifications [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,204 | 1,082 | 1,280 |
Assessments And Qualifications [Member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 58 | 57 | 64 |
Assessments And Qualifications [Member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 1,146 | 1,025 | 1,216 |
Assessments And Qualifications [Member] | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 44 | 43 | 50 |
Assessments And Qualifications [Member] | Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 173 | 138 | 162 |
Assessments And Qualifications [Member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 14 | 14 | 14 |
Assessments And Qualifications [Member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 973 | 887 | 1,054 |
Virtual Learning [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 713 | 692 | 584 |
Virtual Learning [Member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 713 | 692 | 584 |
Virtual Learning [Member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 713 | 692 | 584 |
English Language Learning [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 238 | 218 | 320 |
English Language Learning [Member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 135 | 130 | 174 |
English Language Learning [Member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 78 | 64 | 95 |
English Language Learning [Member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 25 | 24 | 51 |
English Language Learning [Member] | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 109 | 106 | 152 |
English Language Learning [Member] | Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 6 | 3 | 4 |
English Language Learning [Member] | Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 22 | 22 | 48 |
English Language Learning [Member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 26 | 24 | 22 |
English Language Learning [Member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 72 | 61 | 91 |
English Language Learning [Member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 3 | 2 | 3 |
Workforce Skills [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 172 | 163 | 185 |
Workforce Skills [Member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 135 | 130 | 153 |
Workforce Skills [Member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 37 | 33 | 32 |
Workforce Skills [Member] | Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 16 | 7 | 8 |
Workforce Skills [Member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 119 | 123 | 145 |
Workforce Skills [Member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 37 | 33 | 32 |
Higher Education [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 849 | 956 | 1,102 |
Higher Education [Member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 841 | 943 | 1,086 |
Higher Education [Member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8 | 13 | 16 |
Higher Education [Member] | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 283 | 313 | 492 |
Higher Education [Member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 558 | 630 | 594 |
Higher Education [Member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 8 | 13 | 16 |
Strategic Review [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 252 | 286 | 398 |
Strategic Review [Member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 231 | 236 | 326 |
Strategic Review [Member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 21 | 50 | 72 |
Strategic Review [Member] | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 198 | 208 | 260 |
Strategic Review [Member] | Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 14 | 22 | 38 |
Strategic Review [Member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 33 | 28 | 66 |
Strategic Review [Member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | £ 7 | £ 28 | £ 34 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Summary of remaining transaction price on unsatisfied or partially unsatisfied performance obligations from contracts with customers (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | £ 3,428 | £ 3,397 | £ 3,869 |
Deferred income | 386 | 359 | 360 |
Committed Sales | 672 | 632 | 481 |
Remaining transaction price | 1,058 | 991 | 841 |
Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 1,265 | 1,366 | 1,650 |
Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 1,359 | 1,219 | 1,464 |
Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 804 | 812 | 755 |
Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 634 | 670 | 954 |
Deferred income | 1 | 0 | 2 |
Remaining transaction price | 1 | 0 | 2 |
Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 195 | 148 | 174 |
Deferred income | 0 | 1 | |
Remaining transaction price | 0 | 1 | |
Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 36 | 44 | 86 |
Deferred income | 0 | 0 | 2 |
Remaining transaction price | 0 | 0 | 2 |
Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 631 | 696 | 696 |
Deferred income | 93 | 105 | 118 |
Committed Sales | 0 | 14 | |
Remaining transaction price | 93 | 119 | 118 |
Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 1,164 | 1,071 | 1,290 |
Deferred income | 255 | 217 | 206 |
Committed Sales | 442 | 413 | 375 |
Remaining transaction price | 697 | 630 | 581 |
Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 768 | 768 | 669 |
Subscriptions [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 290 | 323 | 310 |
Deferred income | 13 | 18 | 11 |
Committed Sales | 10 | 10 | |
Remaining transaction price | 23 | 28 | 11 |
Other ongoing performance obligations [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Revenue | 478 | 445 | 359 |
Deferred income | 24 | 18 | 21 |
Committed Sales | 220 | 195 | 106 |
Remaining transaction price | 244 | 213 | 127 |
2020 [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 656 | ||
2020 [member] | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 2 | ||
2020 [member] | Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 2 | ||
2020 [member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 82 | ||
2020 [member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 433 | ||
2020 [member] | Subscriptions [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 11 | ||
2020 [member] | Other ongoing performance obligations [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 126 | ||
2021 | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 751 | 160 | |
2021 | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 0 | ||
2021 | Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 1 | ||
2021 | Goods or services transferred at point in time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 0 | ||
2021 | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 84 | 13 | |
2021 | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 426 | 146 | |
2021 | Subscriptions [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 27 | ||
2021 | Other ongoing performance obligations [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 213 | 1 | |
2022 | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 831 | 218 | |
2022 | Goods or services transferred at point in time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 1 | ||
2022 | Goods or services transferred at point in time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 0 | ||
2022 | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 60 | 14 | |
2022 | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 503 | 203 | |
2022 | Subscriptions [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 23 | 1 | |
2022 | Other ongoing performance obligations [member] | Goods or services transferred over time [member] | Services [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 244 | 0 | |
2022 and Later [Member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 25 | ||
2022 and Later [Member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 23 | ||
2022 and Later [Member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | £ 2 | ||
2023 | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 202 | ||
2023 | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 11 | ||
2023 | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 191 | ||
2023 and later [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 22 | ||
2023 and later [member] | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 21 | ||
2023 and later [member] | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | £ 1 | ||
2024 and later | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 25 | ||
2024 and later | Goods or services transferred over time [member] | Courseware [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | 22 | ||
2024 and later | Goods or services transferred over time [member] | Assessments [member] | |||
Disclosure of transaction price allocated to remaining performance obligations [line items] | |||
Remaining transaction price | £ 3 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement [line items] | |||
Liability for sales return | £ 83 | £ 86 | £ 122 |
Deferred contract costs | £ 0 | £ 0 | |
Sales Return [Member] | |||
Statement [line items] | |||
Percentage of entities sales | 13.00% |
Operating Expenses - Summary of
Operating Expenses - Summary of Operating Expenses by Function (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Expenses 1 [abstract] | |||
Cost of goods sold | £ 1,747 | £ 1,767 | £ 1,858 |
Distribution costs | 62 | 59 | 73 |
Selling, marketing and product development costs | 521 | 572 | 631 |
Administrative and other expenses | 802 | 816 | 999 |
Restructuring costs | 214 | 157 | |
Other income | (37) | (45) | (54) |
Total net operating expenses | 1,562 | 1,402 | 1,806 |
Other net gains and losses | (63) | (178) | (16) |
Total | £ 3,246 | £ 2,991 | £ 3,648 |
Operating Expenses - Additional
Operating Expenses - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expense [line items] | |||
Research and efficacy costs | £ 12 | £ 11 | £ 13 |
Penguin Random House [member] | |||
Operating expense [line items] | |||
Service fee income | £ 4 | ||
Other gains and losses | £ 180 |
Operating expenses - Summary _2
Operating expenses - Summary of Analysis of Restructuring Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of restructuring costs [line items] | |||
Property and facilities | £ 124 | £ 85 | £ 96 |
Technology and communications | 215 | 216 | 196 |
Professional and outsourced services | 477 | 498 | 480 |
Total restructuring - operating expenses | 214 | 157 | |
Total | 214 | 159 | |
Restructuring Costs [member] | |||
Disclosure of restructuring costs [line items] | |||
Product costs | 19 | 0 | 16 |
Employee costs | 32 | 0 | 90 |
Impairment of non-current assets | 145 | 14 | |
Property and facilities | 11 | 0 | 12 |
Technology and communications | 3 | 0 | 2 |
Professional and outsourced services | 4 | 0 | 17 |
General and administrative costs | 6 | ||
Total restructuring - operating expenses | 214 | 0 | 157 |
Share of associate restructuring | 0 | 0 | 2 |
Total | £ 214 | £ 0 | £ 159 |
Operating Expenses - Summary _3
Operating Expenses - Summary of Operating Expenses by Nature (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expense by nature [line items] | |||
Royalties expensed | £ 185 | £ 191 | £ 242 |
Other product costs | 353 | 349 | 466 |
Employee benefit expense | 1,365 | 1,337 | 1,452 |
Contract labour | 69 | 67 | 139 |
Employee-related expense | 21 | 30 | 94 |
Promotional costs | 239 | 233 | 254 |
Depreciation of property, plant and equipment | 241 | 125 | 123 |
Property and facilities | 124 | 85 | 96 |
Technology and communications | 215 | 216 | 196 |
Professional and outsourced services | 477 | 498 | 480 |
Other general and administrative costs | 58 | 71 | 104 |
Costs capitalised | (447) | (460) | (465) |
Other net gains and losses | (63) | (178) | (16) |
Other income | (37) | (45) | (54) |
Total | 3,246 | 2,991 | 3,648 |
Product development assets [member] | |||
Expense by nature [line items] | |||
Amortisation and impairment of intangible assets – other | 279 | 280 | 271 |
Software [member] | |||
Expense by nature [line items] | |||
Amortisation and impairment of intangible assets – other | 117 | 112 | 115 |
Other acquired intangibles [member] | |||
Expense by nature [line items] | |||
Amortisation and impairment of intangible assets – other | £ 50 | £ 80 | £ 151 |
Operating Expenses - Summary _4
Operating Expenses - Summary of Services From the Group's Auditors (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Auditors Remuneration [line items] | |||
Total audit fees | £ 7 | £ 7 | £ 7 |
Audit-related and other assurance services | 0 | ||
Other non-audit services | 0 | ||
Total other services | 0 | ||
Total non-audit services | 0 | ||
Total | 7 | 7 | 7 |
Parent [member] | |||
Auditors Remuneration [line items] | |||
Total audit fees | 5 | 5 | 5 |
Subsidiaries [member] | |||
Auditors Remuneration [line items] | |||
Total audit fees | £ 2 | £ 2 | £ 2 |
Operating Expenses - Summary _5
Operating Expenses - Summary of Reconciliation Between Audit and Non-Audit Service Fees (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Auditor's remuneration [abstract] | |||
Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act | £ 7 | £ 7 | £ 7 |
Non-audit fees | 0 | ||
Total | £ 7 | £ 7 | £ 7 |
Employee Information - Summary
Employee Information - Summary of Classification of Employee Benefit (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee benefit expense | |||
Wages and salaries (including termination costs) | £ 1,180 | £ 1,152 | £ 1,258 |
Social security costs | 95 | 96 | 100 |
Share-based payment costs | 28 | 29 | 25 |
Retirement benefits - defined contribution plans | 37 | 47 | 57 |
Retirement benefits - defined benefit plans | 25 | 13 | 13 |
Other post-retirement medical benefits | (1) | ||
Total | £ 1,365 | £ 1,337 | £ 1,452 |
Employee Information - Summar_2
Employee Information - Summary of Average Number of Employees (Detail) - Continuing operation [member] - Employee | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of number of employees [line items] | |||
Average number of employees | 20,744 | 21,191 | 22,243 |
UK [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 3,395 | 3,304 | 3,309 |
Other European countries [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 878 | 886 | 927 |
US [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 11,757 | 11,432 | 12,286 |
Canada [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 593 | 648 | 694 |
Asia Pacific [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 2,738 | 2,812 | 2,800 |
Other countries [member] | |||
Disclosure of number of employees [line items] | |||
Average number of employees | 1,383 | 2,109 | 2,227 |
Net Finance Costs - Schedule of
Net Finance Costs - Schedule of Information About Finance Income and Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of finance income and costs [line items] | |||
Interest payable on financial liabilities at amortised cost and associated derivatives | £ (41) | £ (38) | £ (22) |
Interest on lease liabilities | (27) | (41) | (45) |
Net foreign exchange losses | 0 | (6) | (5) |
Finance costs | (68) | (107) | (84) |
Interest receivable on financial assets at amortised cost | 5 | 9 | 15 |
Interest on lease receivables | 6 | 9 | 11 |
Net finance income in respect of retirement benefits | 4 | 6 | 13 |
Fair value remeasurement of disposal proceeds | 6 | 26 | |
Net foreign exchange gains | 1 | ||
Finance income | 42 | 50 | 41 |
Net finance costs | (26) | (57) | (43) |
Not designated in hedging relationship [member] | |||
Disclosure of finance income and costs [line items] | |||
Finance costs | 0 | (22) | (12) |
Finance income | £ 20 | £ 0 | £ 2 |
Income Tax - Summary of Compone
Income Tax - Summary of Components of Current Tax Expense Income and Adjustments for Current Tax of Prior Periods (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Charge in respect of current year | £ (96) | £ (18) | £ (51) |
Adjustments in respect of prior years | (12) | 4 | 21 |
Total current tax charge | (108) | (14) | (30) |
Deferred tax | |||
In respect of temporary differences | 98 | (28) | 59 |
Other adjustments in respect of prior years | 13 | (2) | 5 |
Total deferred tax credit/(charge) | 111 | (30) | 64 |
Total tax credit/(charge) | £ 3 | £ (44) | £ 34 |
Income Tax - Summary of Profit
Income Tax - Summary of Profit Before Tax Differences Calculated (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Effective Tax Rate [Line Items] | |||
Profit before tax | £ 157 | £ 354 | £ 232 |
Tax calculated at UK rate (2021: 19%, 2020: 19%: 2019: 19%) | (30) | (67) | (44) |
Effect of overseas tax rates | (23) | (6) | (2) |
Effect of UK rate change | 25 | (5) | |
Joint venture and associate income reported net of tax | 0 | 1 | 10 |
Intra-group financing benefit | 7 | 14 | 11 |
Movement in provisions for tax uncertainties | 0 | 24 | 3 |
Net expense not subject to tax | (9) | (7) | (10) |
Gains and losses on sale of businesses not subject to tax | 4 | 21 | 57 |
Unrecognised tax losses | 6 | (21) | (17) |
Benefit from changes in local tax law | 11 | ||
Benefit from US accounting method changes | 11 | ||
Adjustments in respect of prior years | 1 | 2 | 26 |
Total tax credit/(charge) | £ 3 | £ (44) | £ 34 |
Tax rate reflected in earnings | (1.80%) | 12.50% | (14.70%) |
UK [member] | |||
Reconciliation of Effective Tax Rate [Line Items] | |||
Total tax credit/(charge) | £ 27 | £ 23 | £ (12) |
Overseas [member] | |||
Reconciliation of Effective Tax Rate [Line Items] | |||
Total tax credit/(charge) | £ (24) | £ (67) | £ 46 |
Income Tax - Summary of Profi_2
Income Tax - Summary of Profit Before Tax Differences Calculated (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Effective Tax Rate [Line Items] | |||
Applicable tax rate | 25.00% | ||
UK [member] | |||
Reconciliation of Effective Tax Rate [Line Items] | |||
Applicable tax rate | 19.00% | 19.00% | 19.00% |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income tax [line items] | ||||||
Current tax liability | £ 125 | £ 84 | £ 55 | |||
Provisions for tax uncertainties | 104 | 104 | 152 | |||
2017 and earlier [member] | ||||||
Income tax [line items] | ||||||
Provisions for tax uncertainties | 104 | £ 80 | ||||
2018 tax year [member] | ||||||
Income tax [line items] | ||||||
Provisions for tax uncertainties | £ 3 | |||||
2019 tax year [member] | ||||||
Income tax [line items] | ||||||
Provisions for tax uncertainties | £ 13 | |||||
2020 tax year [member] | ||||||
Income tax [line items] | ||||||
Provisions for tax uncertainties | £ 6 | |||||
2021 tax year [member] | ||||||
Income tax [line items] | ||||||
Provisions for tax uncertainties | £ 2 | |||||
Amount of Liabilities decrease | £ 70 |
Income Tax - Summary of Tax (Ch
Income Tax - Summary of Tax (Charge)/Benefit Recognised in Other Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax relating to components of other comprehensive income [abstract] | |||
Net exchange differences on translation of foreign operations | £ 10 | £ (13) | £ 5 |
Fair value gain on other financial assets | (3) | (6) | (4) |
Remeasurement of retirement benefit obligations | (61) | 2 | 22 |
Tax benefit/(charge) recognised in other comprehensive income | £ (54) | £ (17) | £ 23 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | |||
Profit for the year | £ 160 | £ 310 | £ 266 |
Non-controlling interest | (1) | 0 | (2) |
Earnings attributable to equity shareholders | £ 159 | £ 310 | £ 264 |
Weighted average number of shares (millions) | 754.1 | 755.4 | 777 |
Effect of dilutive share options (millions) | 5 | 0 | 0.5 |
Weighted average number of shares (millions) for diluted earnings | 759.1 | 755.4 | 777.5 |
Earnings per share (in pence per share) | |||
Basic | £ 0.211 | £ 0.410 | £ 0.340 |
Diluted | £ 0.209 | £ 0.410 | £ 0.340 |
Dividends - Summary of Dividend
Dividends - Summary of Dividends Declared (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of dividends [line items] | |||
Dividends paid | £ 149 | £ 146 | £ 147 |
Final dividend [member] | |||
Disclosure of dividends [line items] | |||
Dividends paid | 102 | 101 | 101 |
Interim dividend [member] | |||
Disclosure of dividends [line items] | |||
Dividends paid | £ 47 | £ 45 | £ 46 |
Dividends - Summary of Divide_2
Dividends - Summary of Dividends Declared (Parenthetical) (Detail) - £ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Final dividend [member] | |||
Disclosure of dividends [line items] | |||
Dividends paid per share | £ 0.135 | £ 0.135 | £ 0.135 |
Interim dividend [member] | |||
Disclosure of dividends [line items] | |||
Dividends paid per share | £ 0.063 | £ 0.060 | £ 0.060 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) £ / shares in Units, £ in Millions | 12 Months Ended |
Dec. 31, 2021GBP (£)£ / shares | |
Disclosure of Dividends [abstract] | |
Dividends proposed per share | £ / shares | £ 0.142 |
Dividends proposed estimated effect on shareholders' funds | £ | £ 107 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, plant and equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | £ 515 | £ 618 |
Ending Balance | 366 | 515 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 1,076 | 1,144 |
Exchange differences | (1) | (32) |
Additions | 96 | 111 |
Disposals and retirements | (185) | (75) |
Reclassifications and transfers | 4 | (9) |
Transfer to assets classified as held for sale | (15) | (63) |
Ending Balance | 975 | 1,076 |
Depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (561) | (526) |
Exchange differences | 0 | 18 |
Charge for the year | (95) | (125) |
Disposals and retirements | 183 | 61 |
Reclassifications and transfers | 2 | 0 |
Impairment of assets to be classified as held for sale | (4) | |
Impairment | (146) | |
Transfer to assets classified as held for sale | 8 | 15 |
Ending Balance | (609) | (561) |
Land and buildings [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 329 | 402 |
Ending Balance | 196 | 329 |
Land and buildings [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 97 | 100 |
Ending Balance | 90 | 97 |
Land and buildings [member] | Cost [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 439 | 460 |
Exchange differences | 0 | (11) |
Additions | 32 | 62 |
Disposals and retirements | (6) | (13) |
Reclassifications and transfers | 0 | 0 |
Transfer to assets classified as held for sale | 0 | (59) |
Ending Balance | 465 | 439 |
Land and buildings [member] | Cost [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 296 | 300 |
Exchange differences | 2 | (7) |
Additions | 8 | 7 |
Disposals and retirements | (100) | (23) |
Reclassifications and transfers | 35 | 20 |
Transfer to assets classified as held for sale | (15) | (1) |
Ending Balance | 226 | 296 |
Land and buildings [member] | Depreciation [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (110) | (58) |
Exchange differences | (1) | 2 |
Charge for the year | (46) | (65) |
Disposals and retirements | 7 | 1 |
Reclassifications and transfers | 0 | 0 |
Impairment of assets to be classified as held for sale | (4) | |
Impairment | (119) | |
Transfer to assets classified as held for sale | 0 | 14 |
Ending Balance | (269) | (110) |
Land and buildings [member] | Depreciation [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (199) | (200) |
Exchange differences | (1) | 6 |
Charge for the year | (16) | (25) |
Disposals and retirements | 99 | 22 |
Reclassifications and transfers | (5) | (2) |
Impairment of assets to be classified as held for sale | 0 | |
Impairment | (22) | |
Transfer to assets classified as held for sale | 8 | 0 |
Ending Balance | (136) | (199) |
Plant and equipment [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3 | 7 |
Ending Balance | 0 | 3 |
Plant and equipment [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 65 | 73 |
Ending Balance | 51 | 65 |
Plant and equipment [member] | Cost [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 12 | 23 |
Exchange differences | 0 | (2) |
Additions | 0 | 0 |
Disposals and retirements | (7) | (9) |
Reclassifications and transfers | 0 | 0 |
Transfer to assets classified as held for sale | 0 | 0 |
Ending Balance | 5 | 12 |
Plant and equipment [member] | Cost [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 308 | 325 |
Exchange differences | (3) | (11) |
Additions | 17 | 5 |
Disposals and retirements | (72) | (29) |
Reclassifications and transfers | 0 | 21 |
Transfer to assets classified as held for sale | 0 | (3) |
Ending Balance | 250 | 308 |
Plant and equipment [member] | Depreciation [member] | Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (9) | (16) |
Exchange differences | 1 | 1 |
Charge for the year | (3) | (3) |
Disposals and retirements | 6 | 9 |
Reclassifications and transfers | 0 | 0 |
Impairment of assets to be classified as held for sale | 0 | |
Impairment | 0 | |
Transfer to assets classified as held for sale | 0 | 0 |
Ending Balance | (5) | (9) |
Plant and equipment [member] | Depreciation [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (243) | (252) |
Exchange differences | 1 | 9 |
Charge for the year | (30) | (32) |
Disposals and retirements | 71 | 29 |
Reclassifications and transfers | 7 | 2 |
Impairment of assets to be classified as held for sale | 0 | |
Impairment | (5) | |
Transfer to assets classified as held for sale | 0 | 1 |
Ending Balance | (199) | (243) |
Assets in course of construction [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 21 | 36 |
Ending Balance | 29 | 21 |
Assets in course of construction [member] | Cost [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 21 | 36 |
Exchange differences | 0 | (1) |
Additions | 39 | 37 |
Disposals and retirements | 0 | (1) |
Reclassifications and transfers | (31) | (50) |
Transfer to assets classified as held for sale | 0 | 0 |
Ending Balance | 29 | 21 |
Assets in course of construction [member] | Depreciation [member] | Owned assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 0 | 0 |
Exchange differences | 0 | 0 |
Charge for the year | 0 | 0 |
Disposals and retirements | 0 | 0 |
Reclassifications and transfers | 0 | 0 |
Impairment of assets to be classified as held for sale | 0 | |
Impairment | 0 | |
Transfer to assets classified as held for sale | 0 | 0 |
Ending Balance | £ 0 | £ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Increase/Decrease in the discount rate,right of use assets | 1.00% | |
Increase Decrease In The Recoverable Value Of Right Of Use Assets Due To Increase Decrease IN Discount Rate | £ 10 | |
Increase Decrease In The Recoverable Value Of Right Of Use Assets Due To Increase Decrease In The Net Sublet Income | 6 | |
Cost of goods sold [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation expense | 40 | £ 44 |
Operating expense [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Depreciation expense | 55 | 81 |
Impairment charge | 146 | £ 0 |
Costs Of Major Restructuring [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment charge | £ 141 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | £ 2,742 | £ 2,900 |
Ending balance | 2,769 | 2,742 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 4,593 | 4,801 |
Exchange differences | 13 | (163) |
Disposals | (203) | (140) |
Ending balance | 4,559 | 4,593 |
Cost [member] | Internally generated [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Additions | 110 | 80 |
Acquisition through business combination | 70 | |
Disposal through business disposal | (27) | |
Transfers | 1 | |
Cost [member] | Not internally generated [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Additions | 2 | 1 |
Transfers | 14 | |
Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (1,851) | (1,901) |
Exchange differences | (5) | 102 |
Charge for the year | (163) | (180) |
Impairment charge | (4) | (12) |
Disposals | 203 | 140 |
Disposal through business disposal | 24 | |
Transfers | 6 | |
Ending balance | (1,790) | (1,851) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 2,094 | 2,139 |
Ending balance | 2,145 | 2,094 |
Goodwill [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 2,094 | 2,139 |
Exchange differences | 8 | (45) |
Acquisition through business combination | 43 | |
Ending balance | 2,145 | 2,094 |
Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 428 | 451 |
Ending balance | 430 | 428 |
Software [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 1,104 | 1,039 |
Exchange differences | 5 | (24) |
Disposals | (135) | (6) |
Transfers | 1 | 14 |
Ending balance | 1,087 | 1,104 |
Software [member] | Cost [member] | Internally generated [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Additions | 110 | 80 |
Software [member] | Cost [member] | Not internally generated [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Additions | 2 | 1 |
Software [member] | Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (676) | (588) |
Exchange differences | (5) | 18 |
Charge for the year | (113) | (112) |
Impairment charge | (4) | |
Disposals | 135 | 6 |
Transfers | 6 | |
Ending balance | (657) | (676) |
Acquired customer lists, contracts and relationships [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 157 | 205 |
Ending balance | 121 | 157 |
Acquired customer lists, contracts and relationships [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 751 | 793 |
Exchange differences | 4 | (25) |
Disposals | 0 | (17) |
Disposal through business disposal | (14) | |
Ending balance | 741 | 751 |
Acquired customer lists, contracts and relationships [member] | Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (594) | (588) |
Exchange differences | (4) | 23 |
Charge for the year | (34) | (44) |
Impairment charge | 0 | (2) |
Disposals | 17 | |
Disposal through business disposal | 12 | |
Ending balance | (620) | (594) |
Acquired trademarks and brands [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 40 | 60 |
Ending balance | 30 | 40 |
Acquired trademarks and brands [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 198 | 238 |
Exchange differences | (2) | (19) |
Disposals | (25) | (21) |
Disposal through business disposal | (3) | |
Ending balance | 168 | 198 |
Acquired trademarks and brands [member] | Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (158) | (178) |
Exchange differences | 1 | 13 |
Charge for the year | (8) | (14) |
Disposals | 25 | 21 |
Disposal through business disposal | 2 | |
Ending balance | (138) | (158) |
Acquired publishing rights [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 2 | 3 |
Ending balance | 1 | 2 |
Acquired publishing rights [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 97 | 179 |
Exchange differences | 0 | (2) |
Disposals | 0 | (80) |
Ending balance | 97 | 97 |
Acquired publishing rights [member] | Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (95) | (176) |
Exchange differences | (1) | 2 |
Charge for the year | 0 | (2) |
Disposals | 81 | |
Ending balance | (96) | (95) |
Other intangibles acquired [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 21 | 42 |
Ending balance | 42 | 21 |
Other intangibles acquired [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 349 | 413 |
Exchange differences | (2) | (48) |
Disposals | (43) | (16) |
Acquisition through business combination | 27 | |
Disposal through business disposal | (10) | |
Ending balance | 321 | 349 |
Other intangibles acquired [member] | Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (328) | (371) |
Exchange differences | 4 | 46 |
Charge for the year | (8) | (8) |
Impairment charge | 0 | (10) |
Disposals | 43 | 15 |
Disposal through business disposal | 10 | |
Ending balance | £ (279) | £ (328) |
Intangible assets - Additional
Intangible assets - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||
Carrying value of goodwill | £ 2,145 | £ 2,094 |
Description of valuation techniques used to measure fair value less costs of disposal | Goodwill is tested at least annually for impairment. The recoverable amount of each aggregated CGU is based on the higher of value in use and fair value less costs of disposal. The value in use was higher than the fair value less costs of disposal in each of the CGUs. | |
Description of key assumptions | For the purpose of estimating the value in use of the CGUs, management has used an income approach based on present value techniques. The calculations use cash flow projections based on financial budgets approved by management covering a five-year period. | |
Perpetuity growth rate | 2.00% | 2.00% |
Description of management's approach to determining values assigned to key assumptions | Forecast sales growth rates are based on past experience adjusted for the strategic direction and near-term investment priorities within each CGU. Key assumptions include continued growth in Virtual Learning, post COVID-19 recovery in Assessment & Qualifications and English Language Learning, growth driven by recent acquisitions in Workforce Skills, and ongoing pressures in Higher Education partially offset by recapture of the secondary market. The sales forecasts use average nominal growth rates of low-mid single digits for mature businesses in mature markets, mid-high single digits for emerging businesses in mature markets, low-high single digits for mature businesses in emerging markets, and low double digits for Workforce Skills where there is significant organic investment and inorganic investment related to the acquisition of Faethm. | |
Impairment of intangible assets | £ 12 | |
Cost of sales [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Amortisation expense | £ 25 | 22 |
Operating expense [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Amortisation expense | 138 | 158 |
Impairment | 4 | 12 |
Computer software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment | 4 | 0 |
Goodwill [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Carrying value of goodwill | £ 2,145 | 2,094 |
Description of accounting of goodwill prior to adoption of IFRS | For acquisitions completed between 1 January 1998 and 31 December 2002, no value was ascribed to intangibles other than goodwill which was amortised over a period of up to 20 years. On adoption of IFRS on 1 January 2003, the Group chose not to restate the goodwill balance and at that date the balance was frozen (i.e. amortisation ceased) | |
Customer Lists Contracts And Relationships [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment | 2 | |
Other Intangibles Acquired [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Impairment | £ 10 | |
Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
CGU growth rate | 2.00% | 2.20% |
Pretax discount rate | 8.90% | 9.30% |
Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
CGU growth rate | 5.00% | 4.50% |
Pretax discount rate | 17.10% | 17.20% |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Amortisation Profile of Intangible Assets (Detail) £ in Millions | Dec. 31, 2021GBP (£) |
Acquired customer lists, contracts and relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | £ 121 |
Acquired trademarks and brands [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 30 |
Acquired publishing rights [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 1 |
Other acquired intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 42 |
One to five years [member] | Acquired customer lists, contracts and relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 92 |
One to five years [member] | Acquired trademarks and brands [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 24 |
One to five years [member] | Acquired publishing rights [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 1 |
One to five years [member] | Other acquired intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 27 |
Six to ten years [member] | Acquired customer lists, contracts and relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 29 |
Six to ten years [member] | Acquired trademarks and brands [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | 6 |
Six to ten years [member] | Other acquired intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Acquired intangible assets are included within non-current Intangible assets | £ 15 |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Useful Economic Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Bottom of range [member] | Acquired customer lists, contracts and relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 3 years |
Bottom of range [member] | Acquired trademarks and brands [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 2 years |
Bottom of range [member] | Acquired publishing rights [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 5 years |
Bottom of range [member] | Other acquired intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 2 years |
Top of range [member] | Acquired customer lists, contracts and relationships [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 20 years |
Top of range [member] | Acquired trademarks and brands [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 20 years |
Top of range [member] | Acquired publishing rights [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 20 years |
Top of range [member] | Other acquired intangibles [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life of intangible assets | 20 years |
Intangible Assets - Summary o_4
Intangible Assets - Summary of Carrying Value of Goodwill (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | £ 2,145 | £ 2,094 |
OPM [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 18 | |
Virtual Schools [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 374 | |
Assessments [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 1,002 | |
International [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | £ 700 | |
Assessment & Qualifications [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 1,198 | |
Virtual Learning [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 395 | |
English Language Learning [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 153 | |
Workforce Skills [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 223 | |
Higher Education [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 68 | |
Strategic Review [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | £ 108 |
Intangible assets - Summary o_5
Intangible assets - Summary of Detailed Information About In Carrying Value Of Goodwill (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Perpetuity growth rate | 2.00% | 2.00% |
Assessment & Qualifications [Member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 11.20% | |
Perpetuity growth rate | 2.00% | |
English Language Learning [Member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 9.10% | |
Perpetuity growth rate | 3.00% | |
Workforce Skills [Member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 8.90% | |
Perpetuity growth rate | 2.00% | |
Higher Education [Member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 11.10% | |
Perpetuity growth rate | 2.00% | |
Strategic Review [Member] | Bottom of range [member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 8.90% | |
Perpetuity growth rate | 2.00% | |
Strategic Review [Member] | Top of range [member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 17.10% | |
Perpetuity growth rate | 5.00% | |
Virtual Learning [Member] | ||
Disclosure of Detailed Information About In Carrying Value Of Goodwill [Line Items] | ||
Discount rate | 10.90% | |
Perpetuity growth rate | 2.00% |
Investments in Joint Ventures_3
Investments in Joint Ventures and Associates - Summary of Financial Statements (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 03, 2021 | |
Investments in subsidiaries, joint ventures and associates [abstract] | ||||
Associates | £ 24 | £ 6 | £ 10 | |
Total | 24 | 6 | ||
Associates | 1 | 5 | ||
Total | £ 1 | £ 5 | £ 54 |
Investments in Joint Ventures_4
Investments in Joint Ventures and Associates - Additional Information (Detail) - GBP (£) £ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Aug. 03, 2021 | |
Investments in associates and joint ventures [line items] | |||||
Percentage of voting equity interests acquired | 40.00% | ||||
Investments in associates reported in separate financial statements | £ 6 | £ 24 | £ 10 | ||
Contingent consideration recognised as of acquisition date | £ 7 | ||||
Penguin Random House [member] | |||||
Investments in associates and joint ventures [line items] | |||||
Proportion of sales of voting power held in associate | 25.00% | ||||
Dividends received from joint ventures, classified as investing activities | £ 1 | £ 64 |
Deferred Income Tax - Schedule
Deferred Income Tax - Schedule of Deferred Income Tax (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets and liabilities [abstract] | |||
Deferred income tax assets | £ 57 | £ 32 | |
Deferred income tax liabilities | (40) | (62) | |
Net deferred income tax (liability)/asset | £ 17 | £ (30) | £ 11 |
Deferred Income Tax - Additiona
Deferred Income Tax - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | £ 57 | £ 32 | |
Applicable tax rate | 25.00% | ||
Assets and liabilities classified as held for sale [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | £ 0 | 0 | |
UK [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognised deferred income tax assets | £ 166 | £ 166 | |
Applicable tax rate | 19.00% | 19.00% | 19.00% |
US [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognised deferred income tax assets | £ 391 | £ 369 | |
All other countries [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognised deferred income tax assets | 164 | 300 | |
Trading losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 19 | 20 | |
Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible temporary differences for which no deferred tax asset is recognised | 22 | £ 56 | |
Top of range [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Increase (decrease) in deferred tax liability (asset) | £ 27 | ||
Top of range [member] | US [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Expiry periods | 5 years | ||
Bottom of range [member] | US [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Expiry periods | 20 years |
Deferred Income Tax - Schedul_2
Deferred Income Tax - Schedule of Movement on Net Deferred Income Tax Account (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | £ (30) | £ 11 | |
Exchange differences | (1) | (8) | |
Acquisition of subsidiaries | 5 | ||
Income statement benefit/(charge) | 111 | (30) | |
Tax benefit/(charge) in other comprehensive income | (54) | (17) | £ 23 |
Ending balance | 17 | (30) | 11 |
Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax benefit/(charge) in other comprehensive income | (68) | (3) | |
Trading losses [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 47 | 89 | |
Exchange differences | 2 | ||
Acquisition of subsidiaries | 1 | ||
Income statement benefit/(charge) | 34 | (44) | |
Ending balance | 82 | 47 | 89 |
Returns provisions [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 35 | 34 | |
Exchange differences | (1) | (3) | |
Income statement benefit/(charge) | 30 | 4 | |
Ending balance | 64 | 35 | 34 |
Retirement benefit obligations [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | (49) | (38) | |
Exchange differences | (1) | ||
Income statement benefit/(charge) | 2 | (12) | |
Tax benefit/(charge) in other comprehensive income | (61) | 2 | |
Ending balance | (108) | (49) | (38) |
Deferred revenue [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 45 | 41 | |
Exchange differences | (2) | ||
Income statement benefit/(charge) | 7 | 6 | |
Ending balance | 52 | 45 | 41 |
Goodwill and intangible [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | (209) | (199) | |
Exchange differences | (2) | 2 | |
Acquisition of subsidiaries | 4 | ||
Income statement benefit/(charge) | 29 | (12) | |
Ending balance | (178) | (209) | (199) |
Interest limitations [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 76 | 57 | |
Exchange differences | (4) | ||
Income statement benefit/(charge) | (21) | 23 | |
Ending balance | 55 | 76 | 57 |
Other [member] | Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Beginning balance | 25 | 27 | |
Exchange differences | 2 | (2) | |
Income statement benefit/(charge) | 30 | 5 | |
Tax benefit/(charge) in other comprehensive income | (7) | (5) | |
Ending balance | £ 50 | £ 25 | £ 27 |
Classification of Financial I_3
Classification of Financial Instruments - Schedule of Classification of Each Class of Financial Assets and their Carrying Values (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Financial assets | £ 2,138 | £ 2,327 |
Investments in unlisted securities [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 113 | 138 |
Cash and cash equivalents [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 937 | 1,097 |
Derivative financial instruments [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 32 | 63 |
Trade receivables [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854 | 803 |
Investment in finance lease receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 115 | 130 |
Other receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 87 | 96 |
Financial assets at fair value [member] | FVOCI [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 113 | 138 |
Financial assets at fair value [member] | FVOCI [member] | Investments in unlisted securities [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 113 | 138 |
Financial assets at fair value [member] | FVTPL [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 171 | 191 |
Financial assets at fair value [member] | FVTPL [member] | Cash and cash equivalents [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 84 | 93 |
Financial assets at fair value [member] | FVTPL [member] | Derivative financial instruments [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 2 |
Financial assets at fair value [member] | FVTPL [member] | Investment in finance lease receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Financial assets at fair value [member] | FVTPL [member] | Other receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 87 | 96 |
Financial assets at fair value [member] | Fair value - hedging instrument [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 32 | 61 |
Financial assets at fair value [member] | Fair value - hedging instrument [member] | Derivative financial instruments [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 32 | 61 |
Financial assets at amortised cost [member] | Financial assets, class [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,822 | 1,937 |
Financial assets at amortised cost [member] | Financial assets, class [member] | Cash and cash equivalents [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 853 | 1,004 |
Financial assets at amortised cost [member] | Financial assets, class [member] | Trade receivables [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854 | 803 |
Financial assets at amortised cost [member] | Financial assets, class [member] | Investment in finance lease receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | 115 | £ 130 |
Financial assets at amortised cost [member] | Financial assets, class [member] | Other receivable [member] | ||
Disclosure of financial assets [line items] | ||
Financial assets | £ 0 |
Classification of Financial I_4
Classification of Financial Instruments - Schedule of Accounting Classification of Class of Financial Liabilities, Together with their Carrying Values and Market Values (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial liabilities [line items] | ||
Financial liabilities | £ (1,785) | £ (2,043) |
Total market value | (1,816) | (2,095) |
Derivative financial instruments [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (34) | (52) |
Total market value | (34) | (52) |
Trade payables [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (351) | (340) |
Total market value | (351) | (340) |
Bank loans and overdrafts [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | (3) |
Total market value | 0 | (3) |
Borrowings [member] | In less than one year [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (155) | (251) |
Total market value | (155) | (249) |
Borrowings [member] | More than 12 months past due date [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (1,245) | (1,397) |
Total market value | (1,276) | (1,451) |
Financial liabilities derivatives in hedging relationship [member] | Financial liabilities at fair value [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (22) | (22) |
Financial liabilities derivatives in hedging relationship [member] | Derivative financial instruments [member] | Financial liabilities at fair value [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (22) | (22) |
Other Financial Liability [member] | Financial liabilities at amortised cost [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (1,751) | (1,991) |
Other Financial Liability [member] | Trade payables [member] | Financial liabilities at amortised cost [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (351) | (340) |
Other Financial Liability [member] | Bank loans and overdrafts [member] | Financial liabilities at amortised cost [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | (3) |
Other Financial Liability [member] | Borrowings [member] | Financial liabilities at amortised cost [member] | In less than one year [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (155) | (251) |
Other Financial Liability [member] | Borrowings [member] | Financial liabilities at amortised cost [member] | More than 12 months past due date [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (1,245) | (1,397) |
FVTPL [member] | Financial liabilities at fair value [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | (12) | (30) |
FVTPL [member] | Derivative financial instruments [member] | Financial liabilities at fair value [member] | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | £ (12) | £ (30) |
Classification of financial i_5
Classification of financial instruments - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [line items] | |||
Derivative assets | £ 32 | £ 63 | |
Derivative liabilities | (34) | (52) | |
Financial assets | 2,138 | 2,327 | |
Other financial assets | 113 | 138 | £ 122 |
Cash and cash equivalents | 937 | 1,097 | |
Proceeds from reclassification of fair value assets | 16 | ||
Money market funds [Member] | |||
Disclosure of financial liabilities [line items] | |||
Group Bonds | 767 | 965 | |
Investments in unlisted securities [member] | |||
Disclosure of financial liabilities [line items] | |||
Financial assets | 113 | 138 | |
Level 2 of fair value hierarchy [member] | |||
Disclosure of financial liabilities [line items] | |||
Derivative assets | 32 | 63 | |
Derivative liabilities | 34 | 52 | |
Level 3 of fair value hierarchy [member] | |||
Disclosure of financial liabilities [line items] | |||
Financial assets | 87 | 96 | |
Other financial assets | 200 | 234 | £ 304 |
Level 3 of fair value hierarchy [member] | Investments in unlisted securities [member] | |||
Disclosure of financial liabilities [line items] | |||
Other financial assets | 113 | 138 | |
Level 1 of fair value hierarchy [member] | Money market funds [Member] | |||
Disclosure of financial liabilities [line items] | |||
Cash and cash equivalents | £ 84 | £ 93 |
Classification of Financial I_6
Classification of Financial Instruments - Schedule of Analysis of the Movements in Level 3 Fair Value Remeasurements (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | ||
At beginning of year | £ 138 | £ 122 |
Exchange differences | 1 | (4) |
Acquisition of investments and other receivable | 4 | 6 |
Fair value movements | 24 | 14 |
Disposal of investments | (54) | |
At end of year | 113 | 138 |
Level 3 of fair value hierarchy [member] | ||
Disclosure of financial assets [line items] | ||
At beginning of year | 234 | 304 |
Exchange differences | 2 | (11) |
Acquisition of investments and other receivable | 4 | 6 |
Fair value movements | 30 | 40 |
Disposal of investments | (70) | (105) |
At end of year | 200 | 234 |
Level 3 of fair value hierarchy [member] | Investments in unlisted securities [member] | ||
Disclosure of financial assets [line items] | ||
At beginning of year | 138 | |
Exchange differences | 1 | |
Acquisition of investments and other receivable | 4 | |
Fair value movements | 24 | |
Disposal of investments | (54) | |
At end of year | 113 | 138 |
Level 3 of fair value hierarchy [member] | Other receivable [member] | ||
Disclosure of financial assets [line items] | ||
At beginning of year | 96 | |
Exchange differences | 1 | |
Fair value movements | 6 | |
Disposal of investments | (16) | |
At end of year | £ 87 | £ 96 |
Other Financial Assets - Summar
Other Financial Assets - Summary of Other Financial Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [abstract] | ||
At beginning of year | £ 138 | £ 122 |
Exchange differences | 1 | (4) |
Acquisition of investments | 4 | 6 |
Fair value movements | 24 | 14 |
Disposal of investments | (54) | |
At end of year | £ 113 | £ 138 |
Other financial assets - Additi
Other financial assets - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | |||
Other financial assets | £ 113 | £ 138 | £ 122 |
Investments in unlisted securities [member] | |||
Disclosure of financial assets [line items] | |||
Other financial assets | £ 113 | £ 138 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedge Accounting - Summary of Outstanding Derivative Financial Instruments (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | £ 1,146 | £ 1,974 |
Assets | 32 | 63 |
Liabilities | (34) | (52) |
In less than one year [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 393 | 1,238 |
Assets | 2 | 18 |
Liabilities | (4) | (12) |
One to five years [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 679 | 663 |
Assets | 30 | 45 |
Liabilities | (26) | (32) |
Later than five years [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 74 | 73 |
Liabilities | (4) | (8) |
Interest rate derivatives [member] | Fair value hedges [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 168 | 354 |
Assets | 5 | 12 |
Interest rate derivatives [member] | Not designated in hedging relationship [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 217 | 550 |
Liabilities | (9) | (27) |
Cross currency rate derivatives [member] | Fair value hedges [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 331 | 516 |
Assets | 24 | 44 |
Liabilities | (21) | (20) |
FX derivatives [member] | Fair value hedges [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 237 | 193 |
Assets | 3 | 5 |
Liabilities | (1) | (2) |
FX derivatives [member] | Not designated in hedging relationship [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Gross notional amounts | 193 | 361 |
Assets | 2 | |
Liabilities | £ (3) | £ (3) |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedge Accounting - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Jan. 31, 2021GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||
Interest rate swap contracts to fix debt outstanding amount | £ 217 | ||
Contracts to fix debt amount, net | 590 | ||
Value of fixed rate debt | £ 807 | ||
Outstanding contracts rate | 1.46 | ||
Outstanding contracts average rate | 0.72 | ||
Hedging gains/(losses) recognised in OCI | £ 9 | £ 15 | |
Cost of hedging reserve | £ 14 | ||
Reserve Of Gains And Losses On Hedging Instruments | 1 | £ 1 | |
Hedged item, liabilities | £ 173 | ||
Hedges of net investment in foreign operations [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Weighted average rate Bonds | 1.59 | ||
Euro [member] | Hedges of net investment in foreign operations [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Weighted average rate Bonds | 0.86 | ||
Floating interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings interest rate | 2.00% | ||
Euro 2025 senior notes [member] | Libor [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Marginal interest rate on reference rate | 1.36% | ||
Synthetic BRL Debt [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Outstanding contracts rate | 7.71 | ||
Bottom of range [member] | Euro 2025 senior notes [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings interest rate | 1.375% | ||
Top of range [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings interest rate | 3.60% |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedge Accounting - Summary of Instruments to Hedge Exposures to Changes in Interest Rates and Foreign Currency Risk Associated with Borrowings (Detail) - Financial assets - derivative financial instruments [member] - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative financial instruments for interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Carrying amount of hedging instruments | £ 5 | £ 12 |
Change in fair value of hedging instrument used to determine hedge ineffectiveness | (5) | |
Nominal amounts of hedging instruments | 168 | 354 |
Derivative financial instruments for currency risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Carrying amount of hedging instruments | 24 | 44 |
Change in fair value of hedging instrument used to determine hedge ineffectiveness | (20) | 19 |
Nominal amounts of hedging instruments | £ 168 | £ 354 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedge Accounting - Summary of Amounts at the Reporting Rate Relating to Items Designated as Hedge Items (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of hedged items | £ (173) | |
Financial liabilities - borrowings [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Hedge ineffectiveness | 0 | £ 0 |
Financial liabilities - borrowings [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of hedged items | (173) | (367) |
Accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount | (4) | (9) |
Change in fair value of hedged item used to determine hedge ineffectiveness | 5 | 0 |
Hedge ineffectiveness | £ 0 | £ 0 |
Line item in profit or loss that includes hedge ineffectiveness | ||
Financial liabilities - borrowings [member] | Currency risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of hedged items | £ (173) | £ (367) |
Change in fair value of hedged item used to determine hedge ineffectiveness | 20 | (19) |
Hedge ineffectiveness | £ 0 | £ 0 |
Line item in profit or loss that includes hedge ineffectiveness |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedge Accounting - Summary of Amounts Related to Items Designated as Hedging Instruments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedges [line items] | ||
Hedging gains/(losses) recognised in OCI | £ 9 | £ 15 |
Financial liabilities - derivative financial instruments [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Carrying amount of hedging instruments | (19) | (17) |
Change in value of hedging instrument used to determine hedge ineffectiveness | (2) | 3 |
Nominal amounts of hedging instruments | (400) | (355) |
Hedging gains/(losses) recognised in OCI | (2) | 3 |
Hedge ineffectiveness recognised in profit or loss | 0 | 0 |
Financial liabilities - borrowings [member] | ||
Disclosure of detailed information about hedges [line items] | ||
Carrying amount of hedging instruments | (240) | (246) |
Change in value of hedging instrument used to determine hedge ineffectiveness | 4 | 1 |
Nominal amounts of hedging instruments | (240) | (246) |
Hedging gains/(losses) recognised in OCI | 4 | 1 |
Hedge ineffectiveness recognised in profit or loss | £ 0 | £ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments and Hedge Accounting - Disclosure of Derivative Financial Assets and Liabilities Subject to Offsetting Arrangements (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of derivative financial asset and liabilities offsetting arrangements [line items] | ||
Gross derivative assets | £ 32 | £ 63 |
Gross derivative liabilities | (34) | (52) |
Net derivative assets/ liabilities | (2) | 11 |
Asset position [member] | ||
Disclosure of derivative financial asset and liabilities offsetting arrangements [line items] | ||
Gross Derivative assets | 17 | 35 |
Gross derivative liabilities | (12) | (10) |
Net derivative assets/ liabilities | 5 | 25 |
Counterparties in a liability position [member] | ||
Disclosure of derivative financial asset and liabilities offsetting arrangements [line items] | ||
Gross derivative assets | 15 | 28 |
Gross derivative liabilities | (22) | (42) |
Net derivative assets/ liabilities | £ (7) | £ (14) |
Cash and Cash Equivalents (Ex_3
Cash and Cash Equivalents (Excluding Overdrafts) - Summary of Cash and Cash Equivalents (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [line items] | ||
Cash at bank and in hand | £ 660 | £ 599 |
Short-term bank deposits | 277 | 498 |
Total | £ 937 | £ 1,097 |
Cash and Cash Equivalents (Ex_4
Cash and Cash Equivalents (Excluding Overdrafts) - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [line items] | ||
Cash and cash equivalents classified as assets held for sale | £ 0 | £ 19 |
US Dollars [member] | ||
Cash and cash equivalents [line items] | ||
Cash and cash equivalents currency split | 37.00% | 14.00% |
Sterling [member] | ||
Cash and cash equivalents [line items] | ||
Cash and cash equivalents currency split | 24.00% | 64.00% |
Other currency [member] | ||
Cash and cash equivalents [line items] | ||
Cash and cash equivalents currency split | 39.00% | 22.00% |
Cash and Cash Equivalents (Ex_5
Cash and Cash Equivalents (Excluding Overdrafts) - Summary of Cash and Cash Equivalents for Purpose of Cash Flow Statement (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | £ 937 | £ 1,116 | ||
Bank overdrafts | (3) | |||
Total cash and cash equivalents | £ 937 | £ 1,113 | £ 434 | £ 525 |
Financial Liabilities - Borro_3
Financial Liabilities - Borrowings - Summary of Current and Non - Current Borrowings (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Finance lease liabilities | £ 565 | £ 610 |
Non-current borrowings | 1,245 | 1,397 |
Finance lease liabilities | 68 | 73 |
Current borrowings | 155 | 254 |
Borrowings | 1,400 | 1,651 |
1.875% Euro notes 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 178 | |
3.75% US dollar notes 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 86 | |
Current borrowings | 87 | |
3.25% US dollar notes 2023 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 70 | 69 |
1.375% Euro notes 2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 257 | 279 |
3.75% gbp notes 2030 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 353 | 353 |
Bank loans and overdrafts [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 3 |
Financial Liabilities - Borro_4
Financial Liabilities - Borrowings - Summary of Current and Non - Current Borrowings (Parenthetical) (Detail) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Nominal amount | £ | £ 1,146 | £ 1,974 | ||||
1.875% Euro notes 2021 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings, interest rate | 1.875% | 1.875% | 1.875% | |||
Borrowings, maturity year | 2021 | |||||
Nominal amount | € | € 195 | |||||
3.75% US dollar notes 2022 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings, interest rate | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
Borrowings, maturity year | 2022 | 2022 | ||||
Nominal amount | $ | $ 117 | $ 117 | ||||
3.25% US dollar notes 2023 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% |
Borrowings, maturity year | 2023 | 2023 | ||||
Nominal amount | $ | $ 94 | $ 94 | ||||
1.375% Euro notes 2025 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings, interest rate | 1.375% | 1.375% | 1.375% | 1.375% | 1.375% | 1.375% |
Borrowings, maturity year | 2025 | 2025 | ||||
Nominal amount | € | € 300 | € 300 | ||||
3.75% gbp notes 2030 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings, interest rate | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
Borrowings, maturity year | 2030 | 2030 | ||||
Nominal amount | £ | £ 350 | £ 350 |
Financial Liabilities - Borro_5
Financial Liabilities - Borrowings - Additional Information (Detail) £ in Millions, $ in Millions | Dec. 31, 2021GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Accrued interest included in non-current borrowings | £ 10 | £ 11 | ||
Accrued interest included in current borrowings | 0.5 | 2 | ||
Non-current borrowings | 1,245 | 1,397 | ||
Current borrowings | 155 | 254 | ||
Disposal groups classified as held for sale [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Non-current borrowings | 66 | |||
Current borrowings | 3 | |||
Undrawn borrowing capacity [Member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Undrawn borrowing capacity on revolving credit facility | £ 900 | $ 1,190 | £ 900 | $ 1,190 |
Financial Liabilities - Borro_6
Financial Liabilities - Borrowings - Summary of Maturities of the Group's Non-Current Borrowings (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 1,245 | £ 1,397 |
Later than one year and not later than two years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 140 | 160 |
Between two and five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 435 | 531 |
Later than five years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 670 | £ 706 |
Financial Liabilities - Borro_7
Financial Liabilities - Borrowings - Summary of Carrying Amounts and Market Value of Borrowings (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 155 | £ 254 |
Non-current borrowings | 1,245 | 1,397 |
Borrowings | 1,400 | 1,651 |
Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 767 | 968 |
Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 798 | 1,020 |
Bank loans and overdrafts [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 3 | |
Bank loans and overdrafts [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 3 | |
Bank loans and overdrafts [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 3 | |
1.875% Euro notes 2021 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 178 | |
Effective interest rate | 2.04% | |
1.875% Euro notes 2021 [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 178 | |
1.875% Euro notes 2021 [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 176 | |
3.75% US dollar notes 2022 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 87 | |
Non-current borrowings | £ 86 | |
Effective interest rate | 3.94% | 3.94% |
3.75% US dollar notes 2022 [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | £ 87 | |
Non-current borrowings | £ 86 | |
3.75% US dollar notes 2022 [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current borrowings | 87 | |
Non-current borrowings | 88 | |
3.25% US dollar notes 2023 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 70 | £ 69 |
Effective interest rate | 3.36% | 3.36% |
3.25% US dollar notes 2023 [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 70 | £ 69 |
3.25% US dollar notes 2023 [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 71 | 71 |
1.375% Euro notes 2025 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 257 | £ 279 |
Effective interest rate | 1.44% | 1.44% |
1.375% Euro notes 2025 [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 257 | £ 279 |
1.375% Euro notes 2025 [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | 260 | 278 |
3.75% gbp notes 2030 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 353 | £ 353 |
Effective interest rate | 3.93% | 3.93% |
3.75% gbp notes 2030 [member] | Carrying value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 353 | £ 353 |
3.75% gbp notes 2030 [member] | Market value [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Non-current borrowings | £ 380 | £ 404 |
Financial Liabilities - Borro_8
Financial Liabilities - Borrowings - Summary of Carrying Amounts of Borrowings which Denominated in Currencies (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | £ 1,400 | £ 1,651 |
US Dollars [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 434 | 458 |
Sterling [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 674 | 686 |
Euro [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 268 | 472 |
Other currency [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | £ 24 | £ 35 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) £ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disclosure of gross debt [Line Items] | ||||
Borrowings | £ 1,400 | £ 1,651 | ||
Adjusted operating profit | 385 | 313 | ||
Adjusted operating profit translated at year end closing rates | 391 | 288 | ||
(Increase) decrease in EBITDA translated at year end closing rates | (8) | 38 | ||
EBITDA | 598 | 550 | ||
EBITDA translated at year end closing rates | 606 | 512 | ||
Cash and cash equivalents (excluding overdrafts) | 937 | 1,097 | ||
Outstanding drawing | 0 | 0 | ||
(Increase) decrease in adjusted operating profit translated at year end closing rates | (6) | 25 | ||
Fair value assets hedge relationships | 29 | |||
Fair value liabilities hedge relationships | 29 | |||
Fair value net investments hedge relationships | £ 21 | |||
Disposal groups classified as held for sale [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Borrowings | 69 | |||
Cash and cash equivalents (excluding overdrafts) | £ 19 | |||
Investment grade bank counterparties [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Percentage of cash and cash equivalents held with counter parties | 81.00% | 88.00% | ||
AAA money market fund counterparties [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Percentage of cash and cash equivalents held with counter parties | 10.00% | 3.00% | ||
Non-investment grade bank counterparties [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Percentage of cash and cash equivalents held with counter parties | 9.00% | 9.00% | ||
US Dollars [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Percentage of currency exposure to sales | 60.00% | |||
Borrowings | £ 434 | £ 458 | ||
Trade payables | 199 | 195 | ||
Sterling [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Borrowings | 674 | 686 | ||
Trade payables | 76 | 76 | ||
Other currency [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Borrowings | 24 | 35 | ||
Trade payables | 76 | 69 | ||
Due in 2025 | ||||
Disclosure of gross debt [Line Items] | ||||
Undrawn borrowing capacity on revolving credit facility | $ | $ 1,190 | $ 1,190 | ||
Fixed interest rate [member] | ||||
Disclosure of gross debt [Line Items] | ||||
Borrowings | £ 1,400 | £ 1,651 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Net Debt Position (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of net debt [line items] | ||
Cash and cash equivalents | £ 937 | £ 1,116 |
Derivative financial instruments | (2) | 11 |
Financial liabilities | (1,785) | (2,043) |
Investment in finance lease receivable | 115 | 130 |
Lease liabilities | (633) | (752) |
Net debt | (350) | (463) |
Bank loans and overdrafts [member] | ||
Disclosure of net debt [line items] | ||
Financial liabilities | 0 | (3) |
Bonds [member] | ||
Disclosure of net debt [line items] | ||
Financial liabilities | £ (767) | £ (965) |
Financial Risk Management - S_2
Financial Risk Management - Summary of Sensitivity of Carrying Value of Financial Instruments to Fluctuations in Interest Rates and Exchange Rates (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | £ 2,138 | £ 2,327 |
Cash and cash equivalents | 937 | 1,097 |
Derivative financial instruments | (2) | 11 |
Financial liabilities | (1,785) | (2,043) |
Other borrowings | (633) | (686) |
Investment in finance lease receivable | 115 | 130 |
Other net financial assets | 503 | 463 |
Total financial instruments | 353 | 284 |
Impact of 1% increase in interest rates | 11 | 26 |
Impact of 1% decrease in interest rates | (11) | (28) |
Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (20) | (12) |
Impact of 10% weakening in exchange rates | 24 | (39) |
Investments in unlisted securities [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | 113 | 138 |
Investments in unlisted securities [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (9) | (11) |
Impact of 10% weakening in exchange rates | 11 | 13 |
Other receivable [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | 87 | 96 |
Impact of 10% strengthening in exchange rates | (8) | (9) |
Other receivable [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% weakening in exchange rates | 10 | 11 |
Cash and cash equivalents [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | 937 | 1,097 |
Cash and cash equivalents | 937 | 1,097 |
Cash and cash equivalents [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (43) | (55) |
Impact of 10% weakening in exchange rates | 53 | 25 |
Derivative financial instruments [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | 32 | 63 |
Derivative financial instruments | (2) | 11 |
Impact of 1% increase in interest rates | 6 | 17 |
Impact of 1% decrease in interest rates | (6) | (19) |
Derivative financial instruments [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (1) | 3 |
Impact of 10% weakening in exchange rates | 1 | 1 |
Bonds [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial liabilities | (767) | (965) |
Impact of 1% increase in interest rates | 5 | 9 |
Impact of 1% decrease in interest rates | (5) | (9) |
Bonds [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | 37 | 54 |
Impact of 10% weakening in exchange rates | (45) | (67) |
Other borrowings [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | 57 | 62 |
Impact of 10% weakening in exchange rates | (70) | (76) |
Investment in finance lease receivable [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Financial assets | 115 | 130 |
Investment in finance lease receivable | 115 | 130 |
Investment in finance lease receivable [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (11) | (12) |
Impact of 10% weakening in exchange rates | 13 | 14 |
Other net financial assets [member] | Sterling [member] | ||
Disclosure of financial instruments carrying value [line items] | ||
Impact of 10% strengthening in exchange rates | (42) | (44) |
Impact of 10% weakening in exchange rates | £ 51 | £ 40 |
Financial Risk Management - Sch
Financial Risk Management - Schedule of Contractual Undiscounted Cash Flows Analysed by Maturity and Currency (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | £ 896 | £ 1,113 |
Rate derivatives - inflows | (338) | (537) |
Rate derivatives - outflows | 355 | 542 |
FX forwards - inflows | (148) | (68) |
FX forwards - outflows | 148 | 68 |
Total | 913 | 1,118 |
US Dollars [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 162 | 166 |
Rate derivatives - inflows | (9) | (12) |
Rate derivatives - outflows | 203 | 209 |
FX forwards - outflows | 90 | 36 |
Total | 446 | 399 |
Sterling [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 468 | 481 |
Rate derivatives - inflows | (150) | (152) |
Rate derivatives - outflows | 150 | 330 |
FX forwards - inflows | (148) | (68) |
Total | 320 | 591 |
Other currency [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 266 | 466 |
Rate derivatives - inflows | (179) | (373) |
Rate derivatives - outflows | 2 | 3 |
FX forwards - outflows | 58 | 32 |
Total | 147 | 128 |
In less than one year [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 107 | 200 |
Rate derivatives - inflows | (7) | (186) |
Rate derivatives - outflows | 12 | 180 |
FX forwards - inflows | (148) | (68) |
FX forwards - outflows | 148 | 68 |
Total | 112 | 194 |
One to five years [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 386 | 497 |
Rate derivatives - inflows | (331) | (350) |
Rate derivatives - outflows | 339 | 350 |
Total | 394 | 497 |
Later than five years [member] | ||
Disclosure of undiscounted cash flows financial assets liabilities [line items] | ||
Bonds | 403 | 416 |
Rate derivatives - inflows | (1) | |
Rate derivatives - outflows | 4 | 12 |
Total | £ 407 | £ 427 |
Intangible Assets - Product D_3
Intangible Assets - Product Development - Summary of Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | £ 905 | |
Impairment | (19) | |
Ending Balance | 894 | £ 905 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | 2,514 | 2,275 |
Exchange differences | (48) | |
Additions | 287 | 323 |
Disposals and retirements | (92) | (31) |
Disposal of subsidiary | (9) | 0 |
Transfers | (2) | (5) |
Ending Balance | 2,698 | 2,514 |
Depreciation [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Beginning balance | (1,609) | (1,405) |
Exchange differences | (3) | 45 |
Disposals and retirements | 92 | 31 |
Disposal of subsidiary | 3 | |
Transfers | (8) | |
Charge for the year | (260) | (280) |
Impairment | (19) | |
Ending Balance | £ (1,804) | £ (1,609) |
Intangible Assets - Product D_4
Intangible Assets - Product Development - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets product development | £ 894 | £ 905 | |
Impairment | 19 | ||
Additional Impairment charges | 0 | 0 | £ 0 |
Asset Writeoffs Related To The Major Restructuring Programme [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Impairment | 14 | ||
More than 12 months past due date [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets product development | £ 601 | £ 607 |
Inventories - Summary of Curren
Inventories - Summary of Current Inventories (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Classes of current inventories [abstract] | ||
Raw materials | £ 7 | £ 5 |
Work in progress | 2 | 2 |
Finished goods | 84 | 116 |
Returns asset | 5 | 6 |
Inventories | £ 98 | £ 129 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Classes of current inventories [abstract] | ||
Cost of inventories relating to continuing operations recognised as expense | £ 171 | £ 219 |
Inventory provisions charged in income statement | 22 | 41 |
Inventories pledged as security | 0 | |
Impairment charges against the inventory returns asset | £ 0 | £ 0 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||
Trade receivables | £ 853 | £ 795 |
Royalty advances | 2 | 2 |
Prepayments | 198 | 189 |
Investment in finance lease receivable current | 15 | 18 |
Accrued income | 14 | 12 |
Other receivables | 175 | 102 |
Trade and other current receivables | 1,257 | 1,118 |
Non-current | ||
Trade receivables | 1 | 8 |
Royalty advances | 5 | 3 |
Prepayments | 10 | 13 |
Investment in finance lease receivable noncurrent | 100 | 112 |
Accrued income | 1 | 1 |
Interest receivable | 8 | |
Other receivables | 4 | 86 |
Trade and other non current receivables | £ 129 | £ 223 |
Trade and Other Receivables - A
Trade and Other Receivables - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Impairment charges on accrued income assets | £ 0 | £ 0 |
Trade and other receivables | 1,257 | 1,118 |
Disposal groups classified as held for sale [member] | ||
Disclosure of other provisions [line items] | ||
Trade and other receivables | £ 0 | £ 6 |
Trade and Other Receivables -_2
Trade and Other Receivables - Summary of Movements on Provision for Bad and Doubtful Debts (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [abstract] | ||
At beginning of year | £ (74) | £ (92) |
Exchange differences | 6 | |
Income statement movements | (15) | (26) |
Utilised | 26 | 32 |
Disposal of subsidiary | 6 | |
At end of year | £ (63) | £ (74) |
Trade and Other Receivables -_3
Trade and Other Receivables - Summary of Ageing of Group's Trade Receivables (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [line items] | ||
Net trade receivables | £ 917 | £ 877 |
Cost [member] | In less than one year [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 766 | 687 |
Cost [member] | Up to three months past due date [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 58 | 73 |
Cost [member] | Three to six months past due date [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 20 | 12 |
Cost [member] | Six to nine months past due date [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 13 | 30 |
Cost [member] | Nine to 12 months past due date [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 5 | 18 |
Cost [member] | More than 12 months past due date [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | £ 55 | £ 57 |
Provisions for Other Liabilit_3
Provisions for Other Liabilities and Charges - Summary of Provisions for Other Liabilities and Charges (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2021GBP (£) | |
Disclosure of other provisions [line items] | |
Beginning balance | £ 33 |
Exchange differences | 2 |
Provisions made during the year | 46 |
Provisions reversed during the year | (4) |
Provisions used during the year | (27) |
Disposal of subsidiary | (3) |
Ending balance | 47 |
Property [member] | |
Disclosure of other provisions [line items] | |
Beginning balance | 8 |
Provisions made during the year | 9 |
Provisions reversed during the year | (2) |
Ending balance | 15 |
Disposals and closures [member] | |
Disclosure of other provisions [line items] | |
Beginning balance | 4 |
Provisions made during the year | 1 |
Disposal of subsidiary | (3) |
Ending balance | 2 |
Legal and other [member] | |
Disclosure of other provisions [line items] | |
Beginning balance | 21 |
Exchange differences | 2 |
Provisions made during the year | 36 |
Provisions reversed during the year | (2) |
Provisions used during the year | (27) |
Ending balance | £ 30 |
Provisions for Other Liabilit_4
Provisions for Other Liabilities and Charges - Summary of Analysis of Provisions (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of other provisions [line items] | ||
Current | £ 40 | £ 25 |
Non-current | 7 | 8 |
Total | 47 | 33 |
Property [member] | ||
Disclosure of other provisions [line items] | ||
Current | 11 | 2 |
Non-current | 4 | 6 |
Total | 15 | 8 |
Disposals and closures [member] | ||
Disclosure of other provisions [line items] | ||
Current | 2 | 4 |
Total | 2 | 4 |
Legal and other [member] | ||
Disclosure of other provisions [line items] | ||
Current | 27 | 19 |
Non-current | 3 | 2 |
Total | £ 30 | £ 21 |
Trade and Other Liabilities - S
Trade and Other Liabilities - Summary of Trade and Other Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other payables [abstract] | ||
Trade payables | £ 351 | £ 340 |
Sales return liability | 83 | 86 |
Social security and other taxes | 13 | 17 |
Accruals | 317 | 290 |
Deferred income | 386 | 356 |
Interest payable | 42 | 30 |
Other liabilities | 159 | 157 |
Trade and other payables | 1,351 | 1,276 |
Less: non-current portion | ||
Accruals | 1 | |
Deferred income | 56 | 52 |
Other liabilities | 38 | 28 |
Non-current payables | 95 | 80 |
Current portion | £ 1,256 | £ 1,196 |
Trade and Other Liabilities - A
Trade and Other Liabilities - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other payables [line items] | ||
Accruals current and non current classified as held for sale | £ 317 | £ 290 |
Deferred income current and non current classified as held for sale | £ 386 | 356 |
Disposal groups classified as held for sale [member] | ||
Trade and other payables [line items] | ||
Accruals current and non current classified as held for sale | 2 | |
Deferred income current and non current classified as held for sale | £ 3 |
Retirement Benefit and Other _3
Retirement Benefit and Other Post-retirement Obligations - Additional Information (Detail) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021GBP (£)Member | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2020 | |
Disclosure of defined benefit plans [line items] | ||||
Percentage of long-term rate improvement on CMI model | 1.50% | |||
UK [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | 16 years | |||
US [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Weighted average duration of defined benefit obligation | 7 years | |||
CPI rate [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Inflation rate | 2.60% | 2.00% | 2.20% | |
UK Group plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Number of members under plan | Member | 26,500 | |||
Inflation rate | 3.30% | 3.00% | 2.90% | |
Expected rate of increase in salaries | 3.80% | 3.50% | 3.40% | |
Allocated percentage of fund to matching assets | 95.00% | |||
Allocated percentage of fund to return seeking assets | 5.00% | |||
Expected contributions in 2022 | £ 3 | |||
Impact of recognition of money purchase assets And liabilities on balance sheet | ||||
Recognition of money purchase assets And liabilities defined benefit pension plan | £ 513 | |||
Aviva and legal and general [member] | Buy-in policies [member] | UK Group plan [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of pensioner liabilities matched with buy in policies | 95.00% | 95.00% |
Retirement Benefit and Other _4
Retirement Benefit and Other Post-retirement Obligations - Summary of Defined Plan Analysis (Detail) - UK Group plan [member] | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | |
Defined benefit | 51.00% |
Defined contribution | 49.00% |
Total | 100.00% |
Active [member] | |
Disclosure of defined benefit plans [line items] | |
Defined contribution | 11.00% |
Total | 11.00% |
Deferred [member] | |
Disclosure of defined benefit plans [line items] | |
Defined benefit | 18.00% |
Defined contribution | 38.00% |
Total | 56.00% |
Pensioners [member] | |
Disclosure of defined benefit plans [line items] | |
Defined benefit | 33.00% |
Defined contribution | 0.00% |
Total | 33.00% |
Retirement Benefit and Other _5
Retirement Benefit and Other Post-retirement Obligations - Summary of Principal Assumptions Used for UK Group Plan and US PRMB (Detail) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
UK Group plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 3.30% | 2.90% | 3.00% |
Rate used to discount plan liabilities | 1.90% | 1.40% | 2.00% |
Expected rate of increase in salaries | 3.80% | 3.40% | 3.50% |
Other plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 1.40% | 0.60% | 1.70% |
Rate used to discount plan liabilities | 2.80% | 2.20% | 3.00% |
Expected rate of increase in salaries | 2.70% | 2.20% | 2.90% |
PRMB [member] | |||
Disclosure of defined benefit plans [line items] | |||
Inflation | 0.00% | 0.00% | 1.50% |
Rate used to discount plan liabilities | 2.60% | 2.10% | 3.10% |
Expected rate of increase in salaries | 0.00% | 0.00% | 3.00% |
Bottom of range [member] | UK Group plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Expected rate of increase for pensions in payment and deferred pensions | 2.35% | 2.05% | 1.85% |
Top of range [member] | UK Group plan [member] | |||
Disclosure of defined benefit plans [line items] | |||
Expected rate of increase for pensions in payment and deferred pensions | 5.10% | 5.05% | 5.05% |
Initial rate of increase in healthcare rate [member] | PRMB [member] | |||
Disclosure of defined benefit plans [line items] | |||
Rate of increase in healthcare rate | 6.30% | 6.50% | 6.80% |
Ultimate rate of increase in healthcare rate [member] | PRMB [member] | |||
Disclosure of defined benefit plans [line items] | |||
Rate of increase in healthcare rate | 5.00% | 5.00% | 5.00% |
Retirement Benefit and Other _6
Retirement Benefit and Other Post-retirement Obligations - Summary of Remaining Average Life Expectancy in Years of Pensioner Retiring at Age 65 (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
UK [member] | ||
Disclosure of defined benefit plans [line items] | ||
Male | 22 years 7 months 6 days | 24 years |
Female | 24 years 9 months 18 days | 24 years 3 months 18 days |
Male | 24 years 2 months 12 days | 25 years 7 months 6 days |
Female | 26 years 6 months | 26 years 1 month 6 days |
US [member] | ||
Disclosure of defined benefit plans [line items] | ||
Male | 20 years 6 months | 20 years 4 months 24 days |
Female | 22 years 6 months | 22 years 4 months 24 days |
Male | 22 years | 21 years 10 months 24 days |
Female | 23 years 10 months 24 days | 23 years 9 months 18 days |
Retirement Benefit and Other _7
Retirement Benefit and Other Post-retirement Obligations - Summary of Amounts Recognised in Income Statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Current service cost | £ 56 | £ 55 | £ 66 |
Past service cost | 1 | ||
Curtailments | (1) | (3) | |
Administration expenses | 6 | 5 | 6 |
Total operating expenses | 62 | 60 | 69 |
Interest on plan assets | (57) | (69) | (94) |
Interest on plan liabilities | 53 | 63 | 81 |
Net finance (income)/expense | (4) | (6) | (13) |
Net income statement charge | 58 | 54 | 56 |
UK Group plan [member] | |||
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Current service cost | 17 | 6 | 6 |
Past service cost | 1 | ||
Curtailments | (2) | ||
Administration expenses | 6 | 5 | 6 |
Total operating expenses | 23 | 12 | 10 |
Interest on plan assets | (55) | (66) | (89) |
Interest on plan liabilities | 49 | 57 | 73 |
Net finance (income)/expense | (6) | (9) | (16) |
Net income statement charge | 17 | 3 | (6) |
Defined benefit other [member] | |||
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Current service cost | 2 | 2 | 3 |
Curtailments | (1) | ||
Total operating expenses | 2 | 1 | 3 |
Interest on plan assets | (2) | (3) | (5) |
Interest on plan liabilities | 3 | 5 | 6 |
Net finance (income)/expense | 1 | 2 | 1 |
Net income statement charge | 3 | 3 | 4 |
Sub-total [member] | |||
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Current service cost | 19 | 8 | 9 |
Past service cost | 1 | ||
Curtailments | (1) | (2) | |
Administration expenses | 6 | 5 | 6 |
Total operating expenses | 25 | 13 | 13 |
Interest on plan assets | (57) | (69) | (94) |
Interest on plan liabilities | 52 | 62 | 79 |
Net finance (income)/expense | (5) | (7) | (15) |
Net income statement charge | 20 | 6 | (2) |
Defined contribution [member] | |||
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Current service cost | 37 | 47 | 57 |
Total operating expenses | 37 | 47 | 57 |
Net income statement charge | 37 | 47 | 57 |
PRMB [member] | |||
Disclosure of defined benefit plans expense recognized in income statement [line items] | |||
Curtailments | (1) | ||
Total operating expenses | (1) | ||
Interest on plan liabilities | 1 | 1 | 2 |
Net finance (income)/expense | 1 | 1 | 2 |
Net income statement charge | £ 1 | £ 1 | £ 1 |
Retirement Benefit and Other _8
Retirement Benefit and Other Post-retirement Obligations - Summary of Amounts Recognised in Balance Sheet (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of net defined benefit (liability) asset [line items] | ||
Fair value of plan assets | £ 4,245 | £ 3,707 |
Present value of defined benefit obligation | (3,731) | (3,334) |
Net pension asset/(liability) | 514 | 373 |
Other post-retirement medical benefit obligation | (34) | (39) |
Other pension accruals | (9) | (9) |
Net retirement benefit asset | 471 | 325 |
Retirement benefit assets | 537 | 410 |
Retirement benefit obligations | (66) | (85) |
UK Group plan [member] | ||
Disclosure of net defined benefit (liability) asset [line items] | ||
Fair value of plan assets | 4,125 | 3,588 |
Present value of defined benefit obligation | (3,588) | (3,178) |
Net pension asset/(liability) | 537 | 410 |
Other funded plans [member] | ||
Disclosure of net defined benefit (liability) asset [line items] | ||
Fair value of plan assets | 120 | 119 |
Present value of defined benefit obligation | (123) | (135) |
Net pension asset/(liability) | (3) | (16) |
Other unfunded plans [member] | ||
Disclosure of net defined benefit (liability) asset [line items] | ||
Present value of defined benefit obligation | (20) | (21) |
Net pension asset/(liability) | £ (20) | £ (21) |
Retirement Benefit and Other _9
Retirement Benefit and Other Post-retirement Obligations - Summary of Gains (Losses) Recognised in Other Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans gain loss recognised [line items] | |||
Gains (losses) recognised for benefit plans | £ 149 | £ (23) | £ (145) |
Defined benefit plan [member] | |||
Disclosure of defined benefit plans gain loss recognised [line items] | |||
Gains (losses) recognised for benefit plans | 145 | (24) | (148) |
PRMB [member] | |||
Disclosure of defined benefit plans gain loss recognised [line items] | |||
Gains (losses) recognised for benefit plans | £ 4 | £ 1 | £ 3 |
Retirement Benefit and Other_10
Retirement Benefit and Other Post-retirement Obligations - Summary of Fair Value of Plan Assets (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 35.00% | 42.00% |
Insurance [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 35.00% | 42.00% |
Equities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 12.00% | 2.00% |
Equities [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 11.00% | 1.00% |
Equities [member] | Other plans [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 1.00% | 1.00% |
Property [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 5.00% | 5.00% |
Property [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 5.00% | 5.00% |
Pooled asset investment funds [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 30.00% | 34.00% |
Pooled asset investment funds [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 30.00% | 34.00% |
Other [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 9.00% | 11.00% |
Other [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 9.00% | 11.00% |
Fixed Interest Securities [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 9.00% | 6.00% |
Fixed Interest Securities [member] | UK Group plan [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 7.00% | 5.00% |
Fixed Interest Securities [member] | Other plans [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fair value of plan assets | 2.00% | 1.00% |
Retirement Benefit and Other_11
Retirement Benefit and Other Post-retirement Obligations - Summary of of Quoted and Non Quoted Market Price (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 85.00% | 82.00% |
No quoted market price | 15.00% | 18.00% |
Insurance [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 35.00% | 42.00% |
No quoted market price | 0.00% | 0.00% |
Fixed-interest securities [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 9.00% | 6.00% |
No quoted market price | 0.00% | 0.00% |
Property [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 0.00% | 0.00% |
No quoted market price | 5.00% | 5.00% |
Pooled asset investment funds [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 30.00% | 34.00% |
No quoted market price | 0.00% | 0.00% |
Other [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 0.00% | 0.00% |
No quoted market price | 9.00% | 11.00% |
Equities [member] | ||
Disclosure of quoted and non quoted plane asset [line items] | ||
Quoted market price | 11.00% | 0.00% |
No quoted market price | 1.00% | 2.00% |
Retirement Benefit and Other_12
Retirement Benefit and Other Post-retirement Obligations - Summary of Liquidity Profile of UK Group Plan Assets (Detail) - UK Group plan [member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Later than 3 months [member] | ||
Disclosure of liquidity profile [line items] | ||
Liquidity percentage of plan asset | 49.00% | 61.00% |
Not later than 1 month [member] | ||
Disclosure of liquidity profile [line items] | ||
Liquidity percentage of plan asset | 51.00% | 39.00% |
Retirement Benefit and Other_13
Retirement Benefit and Other Post-retirement Obligations - Summary of Changes in Values of Plan Assets and Liabilities (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening fair value of plan assets | £ 3,707 | ||
Interest on plan assets | (57) | £ (69) | £ (94) |
Interest on plan liabilities | 53 | 63 | 81 |
Closing fair value of plan assets | 4,245 | 3,707 | |
Curtiailments | 1 | ||
Fair value of plan assets [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Recognition of Money Purchase assets | 513 | ||
Opening fair value of plan assets | 3,707 | 3,461 | |
Exchange differences | 2 | (3) | |
Interest on plan assets | 57 | 69 | |
Return on plan assets excluding interest | 77 | 305 | |
Contributions by employer | 15 | 8 | |
Contributions by employee | 7 | ||
Benefits paid | (133) | (133) | |
Closing fair value of plan assets | 4,245 | 3,707 | 3,461 |
Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening defined benefit obligation | (3,334) | (3,069) | |
Exchange differences | (1) | 3 | |
Current service cost | (19) | (8) | |
Past service cost | (1) | ||
Administration expenses | (6) | (5) | |
Recognition of Money Purchase liabilities | (513) | ||
Interest on plan liabilities | (52) | (62) | |
Actuarial gains/(losses) - experience | (97) | (20) | |
Actuarial gains/(losses) - demographic | (1) | 2 | |
Actuarial gains/(losses) - financial | 166 | (310) | |
Contributions by employee | (7) | 2 | |
Benefits paid | 133 | 133 | |
Closing defined benefit obligation | (3,731) | (3,334) | (3,069) |
UK Group plan [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening fair value of plan assets | 3,588 | ||
Interest on plan assets | (55) | (66) | (89) |
Interest on plan liabilities | 49 | 57 | 73 |
Closing fair value of plan assets | 4,125 | 3,588 | |
UK Group plan [member] | Fair value of plan assets [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Recognition of Money Purchase assets | 513 | ||
Opening fair value of plan assets | 3,588 | 3,341 | |
Interest on plan assets | 55 | 66 | |
Return on plan assets excluding interest | 71 | 297 | |
Contributions by employer | 14 | 3 | |
Contributions by employee | 7 | ||
Benefits paid | (123) | (119) | |
Closing fair value of plan assets | 4,125 | 3,588 | 3,341 |
UK Group plan [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening defined benefit obligation | (3,178) | (2,912) | |
Exchange differences | 0 | ||
Current service cost | (17) | (6) | |
Past service cost | (1) | ||
Administration expenses | (6) | (5) | |
Recognition of Money Purchase liabilities | (513) | ||
Interest on plan liabilities | (49) | (57) | |
Actuarial gains/(losses) - experience | (100) | (18) | |
Actuarial gains/(losses) - demographic | (1) | 1 | |
Actuarial gains/(losses) - financial | 160 | (299) | |
Contributions by employee | (7) | 0 | |
Benefits paid | 123 | 119 | |
Closing defined benefit obligation | (3,588) | (3,178) | (2,912) |
Other plans [member] | Fair value of plan assets [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening fair value of plan assets | 119 | 120 | |
Exchange differences | 2 | (3) | |
Interest on plan assets | 2 | 3 | |
Return on plan assets excluding interest | 6 | 8 | |
Contributions by employer | 1 | 5 | |
Contributions by employee | 0 | ||
Benefits paid | (10) | (14) | |
Closing fair value of plan assets | 120 | 119 | 120 |
Other plans [member] | Present value of defined benefit obligation [member] | |||
Disclosure of net defined benefit (liability) asset [line items] | |||
Opening defined benefit obligation | (156) | (157) | |
Exchange differences | (1) | 3 | |
Current service cost | (2) | (2) | |
Past service cost | 0 | ||
Administration expenses | 0 | 0 | |
Interest on plan liabilities | (3) | (5) | |
Actuarial gains/(losses) - experience | 3 | (2) | |
Actuarial gains/(losses) - demographic | 0 | 1 | |
Actuarial gains/(losses) - financial | 6 | (11) | |
Contributions by employee | 0 | 2 | |
Benefits paid | 10 | 14 | |
Closing defined benefit obligation | £ (143) | (156) | £ (157) |
Curtiailments | £ 1 |
Retirement Benefit and Other_14
Retirement Benefit and Other Post-retirement Obligations - Summary of Changes in Value of US PRMB (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | |||
Opening defined benefit obligation | £ (39) | ||
Interest on plan liabilities | 53 | £ 63 | £ 81 |
Closing defined benefit obligation | (34) | (39) | |
PRMB [member] | |||
Disclosure of defined benefit plans [line items] | |||
Interest on plan liabilities | 1 | 1 | 2 |
Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Exchange differences | (1) | 3 | |
Interest on plan liabilities | (52) | (62) | |
Actuarial gains/(losses) - experience | (97) | (20) | |
Actuarial gains/(losses) - demographic | (1) | 2 | |
Actuarial gains/(losses) - financial | 166 | (310) | |
Benefits paid | 133 | 133 | |
Present value of defined benefit obligation [member] | PRMB [member] | |||
Disclosure of defined benefit plans [line items] | |||
Opening defined benefit obligation | (39) | (43) | |
Exchange differences | (1) | 1 | |
Interest on plan liabilities | (1) | (1) | |
Actuarial gains/(losses) - experience | 2 | 3 | |
Actuarial gains/(losses) - demographic | 0 | 1 | |
Actuarial gains/(losses) - financial | 2 | (3) | |
Benefits paid | 3 | 3 | |
Closing defined benefit obligation | £ (34) | £ (39) | £ (43) |
Retirement Benefit and Other_15
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect Percentage of Discount Rate Increase (Decrease) on Defined Benefit Obligation and Total Pension Expense (Detail) - Rate used to discount plan liabilities [member] £ in Millions | Dec. 31, 2021GBP (£) |
UK Group plan [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
(Decrease) /increase in defined benefit obligation, 1% increase in discount rate | £ (450) |
(Decrease) /increase in defined benefit obligation, 1% decrease in discount rate | 616 |
US defined benefit pension plans [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
(Decrease) /increase in defined benefit obligation, 1% increase in discount rate | (9) |
US defined benefit pension plans [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
(Decrease) /increase in defined benefit obligation, 1% decrease in discount rate | £ 11 |
Retirement Benefit and Other_16
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect Percentage of Discount Rate Increase (Decrease) on Defined Benefit Obligation and Total Pension Expense (Parenthetical) (Detail) - Rate used to discount plan liabilities [member] | Dec. 31, 2021 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage movement in discount rate sensitivity analysis | 1.00% |
Percentage movement in discount rate sensitivity analysis | 1.00% |
Retirement Benefit and Other_17
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect of Members Living One Year More or One Year Less on the Defined Benefit Obligation (Detail) - Actuarial Assumption of Longevity [member] £ in Millions | Dec. 31, 2021GBP (£) |
UK Group plan [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in defined benefit obligation, 1 year increase | £ 107 |
Increase/(decrease) in defined benefit obligation, 1 year decrease | (108) |
US defined benefit pension plans [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase/(decrease) in defined benefit obligation, 1 year increase | 4 |
Increase/(decrease) in defined benefit obligation, 1 year decrease | £ (3) |
Retirement Benefit and Other_18
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect of Members Living One Year More or One Year Less on the Defined Benefit Obligation (Parenthetical) (Detail) - Actuarial Assumption of Longevity [member] | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Movement in mortality sensitivity analysis | 1 year |
Movement in mortality sensitivity analysis | 1 year |
Retirement Benefit and Other_19
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect of a Half Percentage Point Increase and Decrease in the Inflation Rate (Detail) - UK Group plan [member] - Inflation [member] £ in Millions | Dec. 31, 2021GBP (£) |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
(Decrease) /increase in defined benefit obligation, 0.5% increase | £ 142 |
(Decrease) /increase in defined benefit obligation, 0.5% decrease | £ (141) |
Retirement Benefit and Other_20
Retirement Benefit and Other Post-retirement Obligations - Summary of Effect of a Half Percentage Point Increase and Decrease in the Inflation Rate (Parenthetical) (Detail) - Inflation [member] | Dec. 31, 2021 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Movement in inflation sensitivity analysis | 0.50% |
Movement in inflation sensitivity analysis | 0.50% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Charges in Income Statement in Respect of Equity-Settled Share-Based Payment Plans (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |||
Share-based payment charges | £ 28 | £ 29 | £ 25 |
Share-based payments - Addition
Share-based payments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
length of share-based plans | 3 years | ||
Worldwide Save for Shares Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Stock option percentage of market price | 80.00% | ||
Option expiration period | 6 months | ||
Worldwide Save for Shares Plan [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
length of share-based plans | 5 years | ||
Employee Stock Purchase Plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
length of share-based plans | 6 months | ||
Percentage of market price considering in share-based plans | 85.00% | ||
Long-term incentive plan [member] | Restricted shares [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | 3 years | 3 years | 3 years |
Long-term incentive plan [member] | Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | 3 years | 3 years | 3 years |
Long-term incentive plan [member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | 5 years | ||
Management incentive plan [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vesting period | 3 years | 3 years | 3 years |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Shares Granted under Restricted Share Arrangements (Detail) - Restricted shares [member] Unit_pure in Thousands | 12 Months Ended | |
Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | |
Long-term incentive plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares | 6,394 | 5,598 |
Weighted average fair value | £ 7.27 | £ 4.94 |
Management incentive plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares | 630 | 696 |
Weighted average fair value | £ 7.71 | £ 5.29 |
Share Capital and Share Premi_3
Share Capital and Share Premium - Summary of Share Capital and Share Premium (Detail) - GBP (£) shares in Thousands, £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | |||
Beginning Balance | £ 4,134 | £ 4,323 | £ 4,525 |
Issue of ordinary shares - share option schemes | 6 | 6 | 7 |
Ending balance | £ 4,280 | £ 4,134 | £ 4,323 |
Beginning Balance | 753,258 | 782,099 | |
Issue of ordinary shares - share option schemes | 3,544 | 1,236 | |
Purchase of own shares | (30,077) | ||
Ending Balance | 756,802 | 753,258 | 782,099 |
Share premium [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning Balance | £ 2,620 | £ 2,614 | £ 2,607 |
Issue of ordinary shares - share option schemes | 6 | 6 | 7 |
Ending balance | 2,626 | 2,620 | 2,614 |
Share capital [member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning Balance | 188 | 195 | |
Issue of ordinary shares - share option schemes | 1 | ||
Purchase of own shares | (7) | ||
Ending balance | £ 189 | £ 188 | £ 195 |
Share Capital and Share Premi_4
Share Capital and Share Premium - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 24, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | |||
Par value per share | £ 0.25 | £ 0.25 | |
Number of shares repurchased | 30 | ||
Value of shares repurchased and cancelled | £ 176 | ||
Non-adjusting Events After Reporting Period [Member] | |||
Disclosure of classes of share capital [line items] | |||
Amount of shares authorized for repurchase | £ 350 | ||
Capital redemption reserve [member] | |||
Disclosure of classes of share capital [line items] | |||
Reduction of issued capital | £ 7 |
Treasury shares - Schedule of T
Treasury shares - Schedule of Treasury Shares (Detail) - GBP (£) shares in Thousands, £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [abstract] | ||
Beginning Balance | 903 | 3,258 |
Purchase of treasury shares | 2,158 | 1,105 |
Newly issued treasury shares | 2,500 | |
Release of treasury shares | (3,990) | (3,460) |
Ending Balance | 1,571 | 903 |
Beginning Balance | £ 7 | £ 24 |
Purchase of treasury shares | 16 | 6 |
Newly issued treasury shares | 1 | |
Release of treasury shares | (12) | (23) |
Ending Balance | £ 12 | £ 7 |
Treasury shares - Additional In
Treasury shares - Additional Information (Detail) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Treasury shares transaction [line items] | ||
Percentage of called up share capital | 0.20% | 0.10% |
Treasury shares held, par value | £ 0.25 | £ 0.25 |
Treasury shares, nominal value | £ 0.4 | £ 0.2 |
Treasury shares, market value | £ 10 | £ 6 |
Treasury shares [member] | ||
Treasury shares transaction [line items] | ||
Treasury shares held, par value | £ 0.25 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Other Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | £ (6) | £ (109) | £ (113) |
Currency translation adjustment disposed | 4 | (70) | 4 |
Attributable tax | 10 | (13) | 5 |
Items that are not reclassified to the income statement | |||
Fair value gain on other financial assets | 24 | 14 | 20 |
Attributable tax | (3) | (6) | (4) |
Remeasurement of retirement benefit obligations | 149 | (23) | (145) |
Attributable tax | (61) | 2 | 22 |
Other comprehensive income/(expense) for the year | 117 | (205) | (217) |
Associates [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (2) | ||
Items that are not reclassified to the income statement | |||
Remeasurement of retirement benefit obligations | (4) | ||
Fair value reserve [member] | |||
Items that are not reclassified to the income statement | |||
Fair value gain on other financial assets | 24 | 14 | 20 |
Other comprehensive income/(expense) for the year | 24 | 14 | 20 |
Translation reserve [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (6) | (109) | (113) |
Currency translation adjustment disposed | 4 | (70) | 4 |
Items that are not reclassified to the income statement | |||
Other comprehensive income/(expense) for the year | (2) | (179) | (111) |
Translation reserve [member] | Associates [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (2) | ||
Retained earnings [member] | |||
Items that may be reclassified to the income statement | |||
Attributable tax | 10 | (13) | 5 |
Items that are not reclassified to the income statement | |||
Attributable tax | (3) | (6) | (4) |
Remeasurement of retirement benefit obligations | 149 | (23) | (145) |
Attributable tax | (61) | 2 | 22 |
Other comprehensive income/(expense) for the year | 95 | (40) | (126) |
Retained earnings [member] | Associates [member] | |||
Items that are not reclassified to the income statement | |||
Remeasurement of retirement benefit obligations | (4) | ||
Equity attributable to equity holders of the company [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (6) | (109) | (113) |
Currency translation adjustment disposed | 4 | (70) | 4 |
Attributable tax | 10 | (13) | 5 |
Items that are not reclassified to the income statement | |||
Fair value gain on other financial assets | 24 | 14 | 20 |
Attributable tax | (3) | (6) | (4) |
Remeasurement of retirement benefit obligations | 149 | (23) | (145) |
Attributable tax | (61) | 2 | 22 |
Other comprehensive income/(expense) for the year | £ 117 | £ (205) | (217) |
Equity attributable to equity holders of the company [member] | Associates [member] | |||
Items that may be reclassified to the income statement | |||
Net exchange differences on translation of foreign operations | (2) | ||
Items that are not reclassified to the income statement | |||
Remeasurement of retirement benefit obligations | £ (4) |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) £ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021GBP (£) | Dec. 31, 2021GBP (£)Acquisitions | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | Aug. 03, 2021 | Jul. 31, 2021 | Feb. 28, 2021 | |
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of total voting equity interests acquired | 40.00% | |||||||
Contingent consideration | £ 7 | £ 7 | ||||||
Period in which contingent consideration is paid | 2 years | |||||||
Total acquisition-related costs | 28 | £ 29 | £ 25 | |||||
Lumerit Education and Smart Sparrow [member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Total purchase consideration | £ 40 | |||||||
Faethm Holdings Pty Limited [Member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of total voting equity interests acquired | 100.00% | |||||||
Percentage of equity interest held before business combination | 9.00% | |||||||
Total purchase consideration | £ 65 | 65 | 65 | |||||
Contingent consideration | £ 10 | 10 | 10 | |||||
Revenue of acquiree since acquisition date | 1 | |||||||
Profit (loss) of acquiree since acquisition date | 1 | |||||||
Total acquisition-related costs | 2 | |||||||
Other Business Combination [Member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Total purchase consideration | 11 | 11 | ||||||
Contingent consideration | £ 6 | £ 6 | ||||||
Number Of additional business acquisitions completed | Acquisitions | 2 | |||||||
Opinion Interactive LLC [Member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of total voting equity interests acquired | 100.00% | |||||||
MZ Development Inc [Member] | ||||||||
Disclosure of detailed information about business combination [line items] | ||||||||
Percentage of total voting equity interests acquired | 100.00% |
Business Combinations - Schedul
Business Combinations - Schedule of Cash Flow on Acquisitions (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | |
Disclosure of detailed information about business combination [line items] | ||||
Net cash outflow | £ (55) | £ (6) | £ (45) | |
Goodwill | 2,145 | 2,094 | ||
Contingent consideration | 7 | |||
Business combinations [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash - current year acquisitions | (54) | (40) | ||
Cash and cash equivalents acquired | 4 | |||
Deferred payments for prior year acquisitions and other items | (4) | (6) | (5) | |
Acquisition costs paid | (1) | |||
Net cash outflow | (55) | (6) | (45) | |
Intangible assets | 27 | 23 | ||
Deferred tax asset | 11 | |||
Trade and other receivables | 2 | 1 | ||
Cash | 4 | |||
Trade and other liabilities | (5) | (2) | ||
Deferred tax liabilities | (6) | |||
Net assets acquired | 33 | 22 | ||
Goodwill | 43 | 18 | ||
Total | 76 | 40 | ||
Cash consideration | 54 | 40 | ||
Contingent consideration | 16 | |||
Fair value of existing investment | 6 | |||
Total consideration | 76 | £ 40 | ||
Faethm Holdings Pty Limited [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash - current year acquisitions | (49) | |||
Cash and cash equivalents acquired | 4 | |||
Acquisition costs paid | (1) | |||
Net cash outflow | (46) | |||
Intangible assets | 21 | |||
Deferred tax asset | 11 | |||
Trade and other receivables | 1 | |||
Cash | 4 | |||
Trade and other liabilities | (4) | |||
Deferred tax liabilities | (6) | |||
Net assets acquired | 27 | |||
Goodwill | 38 | |||
Total | 65 | |||
Cash consideration | 49 | |||
Contingent consideration | 10 | £ 10 | ||
Fair value of existing investment | 6 | |||
Total consideration | 65 | £ 65 | ||
Other Business Combination [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash - current year acquisitions | (5) | |||
Deferred payments for prior year acquisitions and other items | (4) | |||
Net cash outflow | (9) | |||
Intangible assets | 6 | |||
Trade and other receivables | 1 | |||
Trade and other liabilities | (1) | |||
Net assets acquired | 6 | |||
Goodwill | 5 | |||
Total | 11 | |||
Cash consideration | 5 | |||
Contingent consideration | 6 | |||
Total consideration | £ 11 |
Disposals - Additional Informat
Disposals - Additional Information (Detail) - GBP (£) £ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2021 | Feb. 28, 2021 | Apr. 30, 2020 | Dec. 31, 2021 | |
Disclosure of disposal of subsidiaries [line items] | ||||
Other disposal costs | £ 14 | |||
Repayment percentage entitled for equity holders in future cash flow | 25.00% | |||
Disposal of major subsidiary [member] | ||||
Disclosure of disposal of subsidiaries [line items] | ||||
Pre-tax gain on sale of subsidiaries and associates | £ 180 | |||
Disposal of Pearson Institute Of Higher Education [Member] | ||||
Disclosure of disposal of subsidiaries [line items] | ||||
Losses on disposals of subsidiary | £ 5 | |||
Disposal of K12 Sistemas [Member] | ||||
Disclosure of disposal of subsidiaries [line items] | ||||
Proceeds from disposal of subsidiary | £ 108 | |||
Gains on disposals of subsidiary | £ 84 |
Disposals - Schedule of Disposa
Disposals - Schedule of Disposals Including Business Closures (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disposal of subsidiaries [line items] | |||
Property, plant and equipment | £ (366) | £ (515) | £ (618) |
Inventories | (98) | (129) | |
Trade and other receivables | (1,257) | (1,118) | |
Cash and cash equivalents (excluding overdrafts) | (937) | (1,097) | |
Deferred income tax assets | (57) | (32) | |
Provisions for other liabilities and charges | 7 | 8 | |
Trade and other liabilities | 1,256 | 1,196 | |
Financial liabilities – borrowings | 1,400 | 1,651 | |
Net assets disposed | 4,280 | 4,134 | |
Proceeds – current year disposals | 108 | 531 | 20 |
Proceeds – prior year disposals | 16 | 105 | |
Cash and cash equivalents disposed | (24) | (104) | |
Costs and other disposal liabilities paid | (17) | (5) | (17) |
Net cash inflow/(outflow) | 83 | 631 | (101) |
Cash inflow/(outflow) from sale of subsidiaries | 83 | 100 | (101) |
Cash inflow from sale of joint ventures and associates | 531 | ||
Disposal of subsidiaries and associates [member] | |||
Disclosure of disposal of subsidiaries [line items] | |||
Intangible assets | (3) | (101) | |
Property, plant and equipment | (48) | ||
Investments in joint ventures and associates | (418) | ||
Intangible assets – product development | (6) | (238) | |
Inventories | (2) | (64) | |
Trade and other receivables | (6) | (70) | |
Cash and cash equivalents (excluding overdrafts) | (24) | (104) | |
Deferred income tax assets | (100) | ||
Provisions for other liabilities and charges | 3 | ||
Trade and other liabilities | 4 | 520 | |
Financial liabilities – borrowings | 67 | ||
Cumulative currency translation adjustment | (4) | 70 | (4) |
Net assets disposed | (19) | (348) | (161) |
Proceeds – current year disposals | 108 | 531 | 20 |
Deferred proceeds | 180 | ||
Costs of disposals | (24) | 1 | (23) |
Gain on disposal | £ 65 | £ 184 | £ 16 |
Held for sale - Summary of Asse
Held for sale - Summary of Assets and Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | |||
Property, plant and equipment | £ 366 | £ 515 | £ 618 |
Total non-current assets | 4,122 | 4,111 | |
Current assets | |||
Trade and other receivables | 1,257 | 1,118 | |
Cash and cash equivalents | 937 | 1,097 | |
Non-current liabilities | |||
Financial liabilities – borrowings | (1,245) | (1,397) | |
Non-current liabilities | (1,483) | (1,672) | |
Current liabilities | |||
Trade and other liabilities | (1,256) | (1,196) | |
Financial liabilities – borrowings | (155) | (254) | |
Total liabilities | (3,063) | (3,317) | |
Net assets | 4,280 | 4,134 | |
Disposal groups classified as held for sale [member] | |||
Non-current assets | |||
Property, plant and equipment | 7 | 48 | |
Total non-current assets | 7 | 48 | |
Current assets | |||
Trade and other receivables | 0 | 6 | |
Cash and cash equivalents | 19 | ||
Total current assets | 25 | ||
Assets classified as held for sale | 7 | 73 | |
Non-current liabilities | |||
Financial liabilities – borrowings | (66) | ||
Non-current liabilities | (66) | ||
Current liabilities | |||
Trade and other liabilities | (5) | ||
Financial liabilities – borrowings | (3) | ||
Current liabilities | (8) | ||
Total liabilities | (74) | ||
Net assets | £ 7 | £ (1) |
Cash Generated from Operation_2
Cash Generated from Operations - Summary of Cash Generated from Operations (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from (used in) operating activities [abstract] | |||
Profit for the year | £ 160 | £ 310 | £ 266 |
Adjustments for: | |||
Income tax | (3) | 44 | (34) |
Depreciation and impairment of property, plant and equipment | 241 | 125 | 123 |
Amortisation and impairment of acquired intangibles and goodwill | 50 | 80 | 151 |
Amortisation and impairment of software | 117 | 112 | 115 |
Net finance costs | 26 | 57 | 43 |
Share of results of joint ventures and associates | (1) | (5) | (54) |
Profit on disposal of subsidiaries, associates, investments and fixed assets | (61) | (182) | (9) |
Other net gains and losses | 2 | 6 | |
Net profit on disposal of right-of-use assets including transfers to investment in finance lease receivable | (6) | (4) | |
Net foreign exchange adjustment from transactions | 9 | (34) | (21) |
Investment income | (2) | ||
Share-based payment costs | 28 | 29 | 25 |
Product development assets | (6) | (56) | (55) |
Inventories | 22 | 35 | (20) |
Trade and other receivables | (71) | (1) | 59 |
Trade and other liabilities | 37 | (26) | (157) |
Retirement benefit obligations | 6 | (1) | 5 |
Provisions for other liabilities and charges | 14 | (37) | 49 |
Net cash generated from operations | £ 570 | £ 450 | £ 480 |
Cash Generated from Operation_3
Cash Generated from Operations - Summary of Proceeds from Sale of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |||
Net book amount | £ 4 | £ 2 | £ 3 |
Loss on sale of property, plant and equipment | (4) | (2) | (2) |
Proceeds from sale of property, plant and equipment | £ 0 | £ 0 | £ 1 |
Cash generated from operation_4
Cash generated from operations - Summary of Current and Non-current Borrowings (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | £ 1,706 | £ 1,646 | £ 668 |
IFRS 16 Transition | 881 | ||
New leases/ disposal of leases | (37) | 24 | 61 |
Transfer from non-current to current | 0 | 0 | 0 |
Financing cash flows | (255) | 24 | 91 |
Foreign exchange movements | (1) | (17) | (64) |
Fair value and other movements | (11) | 29 | 9 |
Ending balance | 1,402 | 1,706 | 1,646 |
Long-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 1,458 | 1,567 | 643 |
IFRS 16 Transition | 792 | ||
New leases/ disposal of leases | (36) | 30 | 61 |
Transfer from non-current to current | (160) | (260) | (88) |
Financing cash flows | 116 | 230 | |
Foreign exchange movements | 3 | (22) | (80) |
Fair value and other movements | (20) | 27 | 9 |
Ending balance | 1,245 | 1,458 | 1,567 |
Short-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Beginning balance | 248 | 79 | 25 |
IFRS 16 Transition | 89 | ||
New leases/ disposal of leases | (1) | (6) | |
Transfer from non-current to current | 160 | 260 | 88 |
Financing cash flows | (255) | (92) | (139) |
Foreign exchange movements | (4) | 5 | 16 |
Fair value and other movements | 9 | 2 | |
Ending balance | £ 157 | £ 248 | £ 79 |
Contingencies and commitme
Contingencies and commitments - Additional Information (Detail) £ in Millions, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021GBP (£) | Dec. 31, 2021BRL (R$) | Dec. 31, 2018GBP (£) | |
Disclosure of commitments and contingent liabilities [line items] | |||
Benefit from FCPE | £ 116 | ||
Repayment of finance company partial exemption Funds under charging notice | £ 105 | ||
Current Brazil [Member] | |||
Disclosure of commitments and contingent liabilities [line items] | |||
Total Potential exposure | 143 | R$ 1079 | |
Additional potential exposure | £ 13 | R$ 98 |
Leases - Summary of information
Leases - Summary of information about leases in income statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | |||
Interest on lease liabilities | £ (27) | £ (41) | £ (45) |
Expenses relating to short-term leases | (1) | (2) | |
Depreciation of right-of-use assets | (49) | (68) | £ (64) |
Impairment of right-of-use assets | £ (119) | £ (4) |
Leases - Summary of maturities
Leases - Summary of maturities of operating lease payments (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted lease liabilities | £ 804 | £ 874 |
Lease liabilities included in the balance sheet | 633 | 683 |
Current | 68 | 73 |
Non-current | 565 | 610 |
Less than one year [member] | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted lease liabilities | 92 | 100 |
One to five years [member] | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted lease liabilities | 318 | 333 |
More than five years [member] | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted lease liabilities | £ 394 | £ 441 |
Leases - Additional information
Leases - Additional information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Presentation Of Leases For Lessee [Line Items] | ||
Contractual capital commitments | £ 3 | £ 3 |
Finance lease receivable decreased | 15 | 66 |
Current lease liabilities | 68 | 73 |
Non-current lease liabilities | 565 | 610 |
Disposal groups classified as held for sale [member] | ||
Presentation Of Leases For Lessee [Line Items] | ||
Current lease liabilities | 0 | 3 |
Non-current lease liabilities | £ 0 | £ 66 |
Leases - Summary of informati_2
Leases - Summary of information about leases in cash flow statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessee [abstract] | |||
Cash outflow for leases as a lessee | £ 115 | £ 133 | £ 136 |
Leases - Summary of informati_3
Leases - Summary of information about leases of lessor in income statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessor [abstract] | |||
Interest on lease receivables | £ 6 | £ 9 | £ 11 |
Income from sub-leasing right-of-use assets (within other income) | £ 2 | £ 7 | £ 17 |
Leases - Summary of informati_4
Leases - Summary of information about leases of lessor in cash flow statement (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about leases for lessor [abstract] | |||
Cash inflow for leases as a lessor | £ 27 | £ 50 | £ 37 |
Leases - Summary of detailed in
Leases - Summary of detailed information about undiscounted lease payments to be received after the reporting date (Detail) - GBP (£) £ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | £ 7 | |
Finance leases | 134 | |
Undiscounted lease payments receivable | 141 | £ 158 |
Unearned finance income | (19) | |
Net investment in finance lease receivable | 115 | |
Less than one year [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | 1 | |
Finance leases | 20 | |
Undiscounted lease payments receivable | 21 | 24 |
One to two years [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Finance leases | 18 | |
Undiscounted lease payments receivable | 18 | 24 |
Two to three years [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | 1 | |
Finance leases | 19 | |
Undiscounted lease payments receivable | 20 | 18 |
Three to four years [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | 2 | |
Finance leases | 19 | |
Undiscounted lease payments receivable | 21 | 18 |
Four to five years [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | 1 | |
Finance leases | 19 | |
Undiscounted lease payments receivable | 20 | 18 |
More than five years [member] | ||
Disclosure of undiscounted lease payments to net investment in finance lease [line items] | ||
Operating leases | 2 | |
Finance leases | 39 | |
Undiscounted lease payments receivable | £ 41 | £ 56 |
Related Party Transactions - Su
Related Party Transactions - Summary of Key Management Personnel Compensation (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | ||
Short-term employee benefits | £ 6 | £ 6 |
Retirement benefits | 1 | 1 |
Share-based payment costs | 8 | 6 |
Total | £ 15 | £ 13 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Penguin Random House [member] | |||
Disclosure of transactions between related parties [line items] | |||
Dividends received from joint ventures and associates | £ 1 | £ 64 | |
Academy of Pop [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in associate | 40.00% | ||
Amounts payable, related party transactions | £ 7 |
Events after the balance shee_2
Events after the balance sheet date - Additional Informations (Detail) £ in Millions, $ in Millions | Feb. 28, 2022USD ($) | Jan. 31, 2022USD ($) | Feb. 24, 2022GBP (£) | Jan. 28, 2022USD ($) | Dec. 31, 2021GBP (£) | Aug. 03, 2021 | Dec. 31, 2020GBP (£) |
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Percentage of total voting equity interests acquired | 40.00% | ||||||
Nominal amount | £ | £ 1,146 | £ 1,974 | |||||
Major Borrowing Amendments [Member] | Revolving credit facilities [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Nominal amount | $ 1,000 | ||||||
Borrowings, maturity year | 2026 | ||||||
Nonadjusting Events After Reporting Period [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Proceeds from disposal of business | $ 117 | ||||||
Shares authorised for repurchase amount | £ | £ 350 | ||||||
Major business combination [member] | Credly Inc [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Percentage of total voting equity interests acquired | 100.00% | ||||||
Percentage of equity interest held before business combination | 19.90% | ||||||
Total purchase consideration | $ 200 | ||||||
Cash consideration | 142 | ||||||
Fair value of existing investment | 42 | ||||||
Business acquisition deferred consideration | $ 16 |