Pearson

Annual Report and Accounts 2010

Company statement of changes in equity Year ended 31 December 2010

All figures in £ millions Equity attributable to equity holders of the company
Share capital Share premium Treasury shares Special reserve Retained earnings Total
At 1 January 2010 203 2,512 (47) 447 766 3,881
Profit for the year 289 289
Issue of ordinary shares under share option schemes 12 12
Net purchase of treasury shares (71) (71)
Release of treasury shares 36 (36)
Dividends (292) (292)
At 31 December 2010 203 2,524 (82) 447 727 3,819
All figures in £ millions Equity attributable to equity holders of the company
Share capital Share premium Treasury shares Special reserve Retained earnings Total
At 1 January 2009 202 2,505 (63) 447 835 3,926
Profit for the year 233 233
Issue of ordinary shares under share option schemes 1 7 8
Purchase of treasury shares (13) (13)
Release of treasury shares 29 (29)
Dividends (273) (273)
At 31 December 2009 203 2,512 (47) 447 766 3,881

The special reserve represents the cumulative effect of cancellation of the company’s share premium account.

Included within retained earnings is an amount of £131m (2009: £131m) relating to profit on intra-group disposals that is not distributable.