Segment information (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Schedule of Segment Reporting Information

For more detail on the services and products included in each business segment refer to Item 4.

			2017
All figures in £ millions	Notes		North America			Core			Growth			Penguin Random House			Corporate		Discontinued operations		Group
Continuing operations
Sales				2,929			815			769			—			—				4,513
Adjusted operating profit				394			50			38			94			—				576
Cost of major restructuring				(60	)		(11	)		(8	)		—			—				(79	)
Intangible charges				(89	)		(12	)		(37	)		(28	)		—				(166	)
Other net gains and losses				(3	)		—			35			96			—				128
Impact of US tax reform				—			—			—			(8	)		—				(8	)
Operating profit				242			27			28			154			—				451
Finance costs		6																		(110	)
Finance income		6																		80
Profit before tax																				421
Income tax		7																		(13	)
Profit for the year from continuing operations																				408
Segment assets				4,116			1,914			667			—			793				7,490
Joint ventures		12		—			—			3			—			—				3
Associates		12		4			3			—			388			—				395
Total assets				4,120			1,917			670			388			793				7,888
Other segment items
Share of results of joint ventures and associates		12		5			1			1			71			—		—		78
Capital expenditure		10, 11		162			35			43			—			—		—		240
Pre-publication investment		20		218			84			59			—			—		—		361
Depreciation		10		56			13			21			—			—		—		90
Amortisation		11, 20		348			103			110			—			—		—		561
Impairment		11		—			—			—			—			—		—		—

			2016
All figures in £ millions	Notes		North America			Core			Growth			Penguin Random House			Corporate		Discontinued operations		Group
Continuing operations
Sales				2,981			803			768			—			—				4,552
Adjusted operating profit				420			57			29			129			—				635
Cost of major restructuring				(172	)		(62	)		(95	)		(9	)		—				(338	)
Intangible charges				(2,684	)		(16	)		(33	)		(36	)		—				(2,769	)
Other net gains and losses				(12	)		(12	)		(1	)		—			—				(25	)
Operating (loss)/profit				(2,448	)		(33	)		(100	)		84			—				(2,497	)
Finance costs		6																		(97	)
Finance income		6																		37
Loss before tax																				(2,557	)
Income tax		7																		222
Loss for the year from continuing operations																				(2,335	)
Segment assets				4,859			1,461			859			—			1,640				8,819
Joint ventures		12		—			—			2			—			—				2
Associates		12		1			4			—			1,240			—				1,245
Total assets				4,860			1,465			861			1,240			1,640				10,066
Other segment items
Share of results of joint ventures and associates		12		(1	)		1			(1	)		98			—		—		97
Capital expenditure		10, 11		153			42			51			—			—		—		246
Pre-publication investment		20		235			92			68			—			—		—		395
Depreciation		10		56			12			27			—			—		—		95
Amortisation		11, 20		394			109			116			—			—		—		619
Impairment		11		2,548			—			—			—			—		—		2,548

			2015
All figures in £ millions	Notes		North America			Core			Growth			PRH			Corporate		Discontinued operations		Group
Continuing operations
Sales				2,940			815			713			—			—				4,468
Adjusted operating profit/(loss)				480			105			(3	)		90			—				672
Intangible charges				(386	)		(79	)		(583	)		(41	)		—				(1,089	)
Cost of major restructuring				—			—			—			—			—				—
Acquisition costs				—			—			—			—			—				—
Other net gains and losses				19			(5	)		—			(1	)		—				13
Operating (loss)/profit				113			21			(586	)		48			—				(404	)
Finance costs		6																		(100	)
Finance income		6																		71
Loss before tax																				(433	)
Income tax		7																		81
Loss for the year from continuing operations																				(352	)
Segment assets				6,399			1,573			719			—			1,841				10,532
Joint ventures		12		1			—			3			—			—				4
Associates		12		—			6			—			1,093			—				1,099
Total assets				6,400			1,579			722			1,093			1,841				11,635
Other segment items
Share of results of joint ventures and associates		12		(9	)		—			(3	)		64			—		16		68
Capital expenditure		10, 11		136			42			50			—			—		15		243
Pre-publication investment		20		218			63			66			—			—		—		347
Depreciation		10		42			9			18			—			—		6		75
Amortisation		11, 20		338			95			109			—			—		15		557
Impairment		11		282			37			530			—			—		—		849

Analysis of Group's Revenue Streams

The following tables analyse the Group’s revenue streams. 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 and English language teaching centres around the world as well as the provision of online learning services in partnership with universities and other academic institutions.

All figures in £ millions	2017
	North America		Core		Growth		Group
Sales:
Courseware
School Courseware		394		171		139		704
Higher Education Courseware		1,146		93		63		1,302
English Courseware		20		60		102		182
		1,560		324		304		2,188
Assessments
School and Higher Education Assessments		355		256		23		634
Clinical Assessments		146		46		—		192
Professional and English Certification		341		138		60		539
		842		440		83		1,365
Services
School Services		274		5		54		333
Higher Education Services		253		34		32		319
English Services		—		12		296		308
		527		51		382		960
Total		2,929		815		769		4,513
	2016
All figures in £ millions	North America		Core		Growth		Group
Sales:
Courseware
School Courseware		418		173		127		718
Higher Education Courseware		1,147		92		60		1,299
English Courseware		21		65		97		183
		1,586		330		284		2,200
Assessments
School and Higher Education Assessments		378		268		21		667
Clinical Assessments		143		40		–		183
Professional and English Certification		333		112		49		494
		854		420		70		1,344
Services
School Services		259		6		54		319
Higher Education Services		269		29		46		344
English Services		13		18		314		345
		541		53		414		1,008
Total		2,981		803		768		4,552

	2015
All figures in £ millions	North America		Core		Growth		Group
Courseware
School Courseware		406		178		112		696
Higher Education Courseware		1,207		94		57		1,358
English Courseware		22		65		84		171
		1,635		337		253		2,225
Assessments
School and Higher Education Assessments		420		296		20		736
Clinical Assessments		126		32		—		158
Professional and English Certification		269		95		37		401
		815		423		57		1,295
Services
School Services		209		1		47		257
Higher Education Services		223		26		70		319
English Services		18		28		286		332
School Systems		40		—		—		40
		490		55		403		948
Total		2,940		815		713		4,468

Summary of Operating Segments in Geographic Areas

The Group operates in the following main geographic areas:

	Sales						Non-current assets
All figures in £ millions	2017		2016		2015		2017		2016
Continuing operations
UK		384		393		421		796		946
Other European countries		262		255		246		128		134
US		2,770		2,829		2,800		2,247		3,351
Canada		126		118		107		240		268
Asia Pacific		643		632		590		151		205
Other countries		328		325		304		184		232
Total continuing		4,513		4,552		4,468		3,746		5,136
Discontinued operations
UK		—		—		134		—		—
Other European countries		—		—		64		—		—
US		—		—		72		—		—
Canada		—		—		2		—		—
Asia Pacific		—		—		35		—		—
Other countries		—		—		5		—		—
Total discontinued		—		—		312		—		—
Total		4,513		4,552		4,780		3,746		5,136

Summary of Analysis of the Results and Cash Flows of Discontinued Operations

An analysis of the results and cash flows of discontinued operations is as follows:

	2017		2016		2015
All figures in £ millions	Total		Total		FT Group			Total
Sales		—		—		312			312
Operating profit		—		—		48			48
Finance income/(costs)		—		—		—			—
Profit before tax		—		—		48			48
Income tax		—		—		(8	)		(8	)
Profit after tax		—		—		40			40
Profit on disposal of Penguin		—		—		—			—
Attributable tax benefit		—		—		—			—
Profit on disposal of The Economist		—		—		473			473
Profit on disposal of Financial Times		—		—		711			711
Attributable tax expense		—		—		(49	)		(49	)
Mergermarket transaction costs		—		—		—			—
Profit on disposal of Mergermarket		—		—		—			—
Attributable tax expense		—		—		—			—
Profit for the year from discontinued operations		—		—		1,175			1,175
Operating cash flows		—		—		31			31
Investing cash flows		—		—		3			3
Financing cash flows		—		—		—			—
Total cash flows		—		—		34			34