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Notes to the
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2a Analysis of sales
All figures in millions           2004 2003
Business sectors
Pearson Education           2,356 2,451
FT Group           587 588
The Penguin Group           786 840
Continuing operations           3,729 3,879
Discontinued operations           190 169
            3,919 4,048
Geographical markets supplied
United Kingdom           545 474
Continental Europe           300 294
North America           2,505 2,742
Asia Pacific           261 255
Rest of world           118 114
Continuing operations           3,729 3,879
Discontinued operations           190 169
            3,919 4,048
 
  2004   2003
All figures in millions Total by
source
Inter-
regional
Total
sales
  Total by
source
Inter-
regional
Total
sales
Geographical source of sales              
United Kingdom 802 (57) 745   751 (60) 691
Continental Europe 174 (1) 173   166 - 166
North America 2,499 (2) 2,497   2,721 (2) 2,719
Asia Pacific 225 (2) 223   230 (1) 229
Rest of world 93 (2) 91   74 - 74
Continuing operations 3,793 (64) 3,729   3,942 (63) 3,879
Discontinued operations 190 - 190   169 - 169
  3,983 (64) 3,919   4,111 (63) 4,048

Note The table above analyses sales by the geographical region from which the products and services originate. Inter-regional sales are those made between Group companies in different regions.

Included within sales for 2004 is an amount of 10m attributable to acquisitions made during the year.

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2b Analysis of total operating profit
  2004
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit
Business sectors
Pearson Education 293 (174) 119
FT Group 86 (20) 66
The Penguin Group 54 (21) 33
Continuing operations 433 (215) 218
Discontinued operations 22 (9) 13
  455 (224) 231
Geographical markets supplied
United Kingdom (26) (30) (56)
Continental Europe 21 (2) 19
North America 393 (177) 216
Asia Pacific 31 (5) 26
Rest of world 14 (1) 13
Continuing operations 433 (215) 218
Discontinued operations 22 (9) 13
  455 (224) 231
 
  2003
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit
Business sectors
Pearson Education 313 (207) 106
FT Group 58 (30) 28
The Penguin Group 91 (21) 70
Continuing operations 462 (258) 204
Discontinued operations 28 (6) 22
  490 (264) 226
Geographical markets supplied
United Kingdom (46) (31) (77)
Continental Europe 1 (4) (3)
North America 466 (218) 248
Asia Pacific 33 (5) 28
Rest of world 8 - 8
Continuing operations 462 (258) 204
Discontinued operations 28 (6) 22
  490 (264) 226

Note Discontinued operations relate to the disposal of the Group's interest in Recoletos, see note 31. Included within operating profit for 2004 is an amount of 1m attributable to acquisitions made during the year.

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2c Share of operating loss of joint ventures
  2004
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit/(loss)
Business sectors
Pearson Education - - -
FT Group (8) - (8)
The Penguin Group 1 - 1
Continuing operations (7) - (7)
 
  2003
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit/(loss)
Business sectors
Pearson Education - - -
FT Group (11) - (11)
The Penguin Group 1 - 1
Continuing operations (10) - (10)

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2d Share of operating profit of associates
  2004
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit
Business sectors
Pearson Education 1 - 1
FT Group 14 - 14
The Penguin Group - - -
Continuing operations 15 - 15
Discontinued operations 2 - 2
  17 - 17
 
  2003
All figures in millions Results from
operations
Goodwill
amortisation
Operating
profit
Business sectors
Pearson Education 1 - 1
FT Group 14 (7) 7
The Penguin Group - - -
Continuing operations 15 (7) 8
Discontinued operations 2 - 2
  17 (7) 10

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2e Analysis of capital employed
All figures in millions Note 2004 2003
restated
Business sectors
Pearson Education   3,059 3,457
FT Group   198 256
The Penguin Group   593 591
Continuing operations   3,850 4,304
Discontinued operations   130 152
    3,980 4,456
Geographical location
United Kingdom   410 425
Continental Europe   58 62
North America   3,245 3,676
Asia Pacific   114 120
Rest of world   23 21
Continuing operations   3,850 4,304
Discontinued operations   130 152
    3,980 4,456
Reconciliation of capital employed to net assets
Capital employed   3,980 4,456
Add: deferred taxation 21 165 145
Less: provisions for liabilities and charges 22 (123) (152)
Less: net debt excluding finance leases 27 (1,206) (1,361)
Net assets   2,816 3,088

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