Intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Text block1 [abstract]

Summary of Intangible Assets

All figures in £ millions	Goodwill			Software			Acquired customer lists, contracts and relationships			Acquired trademarks and brands			Acquired publishing rights			Other intangibles acquired			Total
Cost
At 1 January 2016		4,134			619			860			281			180			509			6,583
Exchange differences		752			85			157			65			31			135			1,225
Impairment		(2,548	)		—			—			—			—			—			(2,548	)
Additions – internal development		—			132			—			—			—			—			132
Additions – purchased		—			25			—			—			—			—			25
Disposals		—			(49	)		(37	)		—			—			—			(86	)
Acquisition through business combination		3			—			—			7			—			3			13
Disposal through business disposal		—			—			(6	)		—			—			(47	)		(53	)
Transfer to intangible assets – pre-publication		—			(14	)		—			—			—			—			(14	)
At 31 December 2016		2,341			798			974			353			211			600			5,277
Exchange differences		(148	)		(46	)		(74	)		(26	)		(6	)		(50	)		(350	)
Impairment		—			—			—			—			—			—			—
Additions – internal development		—			133			—			—			—			—			133
Additions – purchased		—			17			—			—			—			—			17
Disposals		—			(23	)		—			—			—			—			(23	)
Disposal through business disposal		—			(4	)		(9	)		(19	)		—			(27	)		(59	)
Transfer from property, plant and equipment		—			11			—			—			—			—			11
Transfer to assets classified as held for sale		(163	)		(4	)		(2	)		(27	)		(21	)		(34	)		(251	)
At 31 December 2017		2,030			882			889			281			184			489			4,755

All figures in £ millions	Goodwill		Software			Acquired customer lists, contracts and relationships			Acquired trademarks and brands			Acquired publishing rights			Other intangibles acquired			Total
Amortisation
At 1 January 2016		—		(357	)		(430	)		(155	)		(163	)		(314	)		(1,419	)
Exchange differences		—		(60	)		(83	)		(32	)		(27	)		(75	)		(277	)
Charge for the year		—		(84	)		(85	)		(22	)		(8	)		(70	)		(269	)
Disposals		—		38			37			—			—			—			75
Disposal through business disposal		—		—			6			—			—			47			53
Transfer to intangible assets – pre-publication		—		2			—			—			—			—			2
At 31 December 2016		—		(461	)		(555	)		(209	)		(198	)		(412	)		(1,835	)
Exchange differences		—		30			43			13			4			36			126
Charge for the year		—		(85	)		(77	)		(18	)		(3	)		(40	)		(223	)
Disposals		—		21			—			—			—			—			21
Disposal through business disposal		—		2			8			18			—			22			50
Transfer to assets classified as held for sale		—		—			1			16			19			34			70
At 31 December 2017		—		(493	)		(580	)		(180	)		(178	)		(360	)		(1,791	)
Carrying amounts
At 1 January 2016		4,134		262			430			126			17			195			5,164
At 31 December 2016		2,341		337			419			144			13			188			3,442
At 31 December 2017		2,030		389			309			101			6			129			2,964

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:

	2017
Class of intangible asset	Useful economic life
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 is shown below:

	2017
All figures in £ millions	One to five years		Six to ten years		More than ten years		Total
Class of intangible asset
Acquired customer lists, contracts and relationships		215		75		19		309
Acquired trademarks and brands		56		31		14		101
Acquired publishing rights		5		1		—		6
Other intangibles acquired		97		32		—		129

Summary of Carrying Value of Goodwill

The carrying value of the goodwill in each of the CGUs is summarised below:

All figures in £ millions	2017		2016
North America		1,013		1,295
Core		641		633
Growth (includes Brazil, China, India and South Africa)		—		—
Pearson VUE		376		413
Total		2,030		2,341