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  pearson annual report 2000    

Notes to the Accounts

   
 

24. Other provisions for liabilities and charges

all figures in millions post
retirement
deferred
consideration
integration reorganisations leases other total


At 31 December 1999 95 29 24 6 25 27 206
Exchange differences 7 2 1 1 11
Subsidiary undertakings acquired/disposed 1 5 14 8 (3) 1 26
Deferred consideration arising on acquisitions 39 39  
Television assets contributed (2) (14) (1) (2) (19)
Transfer from creditors 1 3 1 1 (1) 5
Released (2) (1) (3) (6)
Provided 24 21 6 51
Utilised (15) (5) (24) (4) (3) (5) (56)


At 31 December 2000 109 56 39 16 20 17 257


note

a. Post-retirement provisions are in respect of pensions, 46m and post-retirement medical benefits, 63m.

b. Deferred consideration. Included within the balance is 30m which relates to the purchase of Forum in 2000 which will be paid in 2001.

c. Integration. During the year 21m has been provided (see note 2) mainly in respect of the acquisitions of Dorling Kindersley and NCS. 24m has been utilised mainly in respect of the integration of Simon & Schuster following its acquisition in 1998. The balance is expected to be utilised in the year ended 31 December 2001.

d. Reorganisations. Included in the balance is 7m in respect of the acquisition of Forum which is expected to be utilised in the year ended 31 December 2001.

e. Lease commitments. These relate primarily to onerous lease contracts, acquired as part of the purchase of subsidiary undertakings, which have expiry dates up to 2010. The provision is based on current occupancy estimates and it has been assumed that the properties will not be sub-let.

f. Other. Included within other is 9m (1999:12m)in respect of warranty and legal claims, the timing of the settlement of which is unknown. The balance, which relates to a number of small items, is expected to be utilised over varying time periods.

2000 Annual Report
* Introduction
* Chairman's letter
* Chief executive's review
* The Pearson Goals
* Internet Enterprises
* The Results
* Pearson Education
* The Penguin Group
* The Financial Times Group
* Recoletos
* Financial Review
* The Board
* Directors' Report
* Personnel Committee Report
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Reconciliation of movements in equity shareholders' funds
* Report to the Auditors to the Members of Pearson plc
* Principal subsidiaries and associates
* Five year summary
* Corporate and Operating Measures
* Shareholder information
* Notes to the accounts
 

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