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  pearson annual report 2000    

Notes to the Accounts

   
 

29. Notes to consolidated statement of cash flows

  2000 1999



all figures in millions continuing discontinued total continuing discontinued total



a. Reconciliation of operating profit to net cash inflow from operating activities            
Operating profit 203 8 211 270 48 318
Share of operating loss/(profit) of joint ventures and associates 19 (8) 11 (23) (48) (71)
Depreciation charges 100 100 82 82
Goodwill amortisation 188 188 130 130
(Increase) in stocks (97) (97) (57) (57)
Decrease/(increase) in debtors 53 53 (71) (71)
(Decrease)/increase in creditors (119) (119) 127 127
(Decrease) in operating provisions (4) (4) (33) (33)
Other and non-cash items 18 18 8 8



Net cash inflow from operating activities 361 361 433 433



Purchase of fixed assets and finance lease payments (149) (149) (113) (113)
Sale of operating tangible fixed assets 22 22 24 24
Dividends from associates 11 38 49 12 32 44
Other (8) (8) 8 8



Operating cash 237 38 275 364 32 396



Analysed between:            
Operating cash flow before internet enterprises and other items 542 38 580 508 32 540
Cash effect of other items:            
Dorling Kindersley exceptional payments (46) (46)
Integration costs:            
Simon & Schuster (27) (27) (110) (110)
Dorling Kindersley (25) (25)
NCS (9) (9)
Cash effect of internet enterprises (198) (198) (34) (34)



Operating cash 237 38 275 364 32 396



note The Dorling Kindersley exceptional payments are in respect of creditors on the acquisition balance sheet beyond normal trading terms.

all figures in millions cash over-drafts sub-total short-term deposits debt due
within one year
debt due
after one year
finance leases total


b. Analysis of net debt                
At 31 December 288 (38) 250 40 (9) (2,276) (15) (2,010)
Exchange differences 14 (7) 7 (1) (1) (122) (1) (118)
Acquired with subsidiary* (11) (11)
Television assets contributed* (82) 60 2 (20)
Debt issue costs 4 4
Other non-cash items (17) (1) (18)
Net cash 123 (65) 58 134 8 (354) 10 (144)


At 31 December 2000 425 (110) 315 91 (2) (2,705) (16) (2,317)


At 31 December 1998 305 (67) 238 40 (5) (2,552) (19) (2,298)
Exchange differences (23) 3 (20) 1 (30) (1) (50)
Disposed with subsidiary* 1 1
Debt issue costs 5 5
Other non-cash items (5) (7) (12)
Net cash flow 6 26 32 (1) (4) 306 11 344


At 31 December 1999 288 (38) 250 40 (9) (2,276) (15) (2,010)


* Excluding cash and overdrafts.

note Finance leases are included within other creditors in the balance sheet (see note 22).

all figures in millions 2000 1999



c. Reconciliation of net cash flow to movement in net debt    
Decrease in net debt from net cash flow 58 32
Decrease/(increase) in net debt from management of liquid resources 134 (1)
(Increase)/decrease in net debt from other borrowings (346) 302
Decrease in finance leases 10 11
Television assets contributed (20)
Acquired with subsidiary (11)
Disposed with subsidiary 1
Debt issue costs 4 5
Other non-cash items (18) (12)
Exchange differences (118) (50)



Movement in net debt in one year (307) 288
Net debt at beginning of the year (2,010) (2,298)



Net debt at end of the year (2,317) (2,010)



d. Tax paid includes 30m (1999: 100m) relating to items excluded from operating profit.

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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