Pearson

Annual Report and Accounts 2010

Consolidated statement of changes in equity Year ended 31 December 2010

All figures in £ millions Equity attributable to equity holders of the company Non-
controlling interest
Total
equity
Share
capital
Share
premium
Treasury
shares
Translation
reserve
Retained
earnings
Total
At 1 January 2010 203 2,512 (226) 227 1,629 4,345 291 4,636
Profit for the year 1,297 1,297 3 1,300
Other comprehensive income 175 30 205 11 216
Equity-settled transactions 50 50 50
Tax on equity-settled transactions 4 4 4
Issue of ordinary shares under share option schemes 12 12 12
Purchase of treasury shares (77) (77) (77)
Release/cancellation of treasury shares 166 (166)
Changes in non-controlling shareholding (6) (6) (231) (237)
Dividends (292) (292) (7) (299)
At 31 December 2010 203 2,524 (137) 402 2,546 5,538 67 5,605
All figures in £ millions Equity attributable to equity holders of the company Non-
controlling interest
Total
equity
Share
capital
Share
premium
Treasury
shares
Translation
reserve
Retained
earnings
Total
At 1 January 2009 202 2,505 (222) 586 1,679 4,750 274 5,024
Profit for the year 425 425 37 462
Other comprehensive expense (359) (193) (552) (29) (581)
Equity-settled transactions 37 37 37
Tax on equity-settled transactions 6 6 6
Issue of ordinary shares under share option schemes 1 7 8 8
Purchase of treasury shares (33) (33) (33)
Release of treasury shares 29 (29)
Put option over non-controlling interest (23) (23) (23)
Changes in non-controlling shareholding 24 24
Dividends (273) (273) (15) (288)
At 31 December 2009 203 2,512 (226) 227 1,629 4,345 291 4,636

The translation reserve includes exchange differences arising from the translation of the net investment in foreign operations and of borrowings and other currency instruments designated as hedges of such investments.