The Group operates in four segments which reflect the internal organisation and management structure according to the nature of the products and services provided:

Civil aerospace

development, manufacture, marketing and sales of commercial aero engines and aftermarket services.

Defence aerospace

development, manufacture, marketing and sales of military aero engines and aftermarket services.

Marine

development, manufacture, marketing and sales of marine propulsion systems and aftermarket services.

Energy

development, manufacture, marketing and sales of power systems for the offshore oil and gas industry, electrical power generation and aftermarket services.

Following an internal reorganisation, financial services is no longer reported as a separate segment. Aircraft and engine leasing activities are incorporated in civil aerospace (the Group's investment in Pembroke Group, its aircraft leasing joint venture, was sold in July 2006). Electrical power development activities are incorporated in energy.

Details for these primary reporting segments are shown below:

	Civil aerospace £m	Defence aerospace £m	Marine £m	Energy £m	Central items £m	Eliminations £m	Group £m
Analysis by business segments for the year ended December 31, 2006
Total revenue	3,775	1,569	1,300	512	—	—	7,156
Operating profit excluding share of profit of joint ventures	442	181	102	(33)	(47)	—	645
Share of profit of joint ventures	36	5	1	5	—	—	47
Profit on sale of businesses	1	—	—	—	—	—	1
Profit/(loss) before financing income/(costs)	479	186	103	(28)	(47)	—	693
Financing income					1,196		1,196
Financing costs					(498)		(498)
Taxation					(397)		(397)
Profit for the year							994
Other information
Segment assets	5,224	904	1,242	640	—	(264)	7,746
Investments in joint ventures	184	24	4	28	—	—	240
Cash and short-term investments					2,219		2,219
Fair value of swaps hedging fixed rate borrowings					27		27
Income tax assets					146		146
Total assets							10,378
Segment liabilities	(3,243)	(908)	(627)	(281)	—	264	(4,795)
Borrowings					(1,390)		(1,390)
Fair value of swaps hedging fixed rate borrowings					(30)		(30)
Income tax liabilities					(443)		(443)
Post-retirement benefit obligations					(995)		(995)
Total liabilities							(7,653)
Expenditure on intangible assets and property, plant and equipment	437	52	24	15			528
Depreciation and amortisation	162	30	20	19			231
Impairments	(10)	—	—	—			(10)

	Civil aerospace £m	Defence aerospace £m	Marine £m	Energy £m	Central items £m	Eliminations £m	Group £m
1 The segmental analysis has been restated to put it on a comparable basis to the current year.
Analysis by business segments for the year ended December 31, 2005 1
Total revenue	3,561	1,413	1,097	532	—	—	6,603
Operating profit excluding share of profit of joint ventures	625	170	86	(3)	(45)	—	833
Share of profit of joint ventures	34	7	1	4	—	—	46
Loss on sale of businesses	—	—	—	(2)	—	—	(2)
Profit/(loss) before financing income/(costs)	659	177	87	(1)	(45)	—	877
Financing income					472		472
Financing costs					(872)		(872)
Taxation					(130)		(130)
Profit for the year							347
Other information
Segment assets	4,386	798	1,114	718	—	(254)	6,762
Investments in joint ventures	187	28	1	31	—	—	247
Cash and short-term investments					1,794		1,794
Fair value of swaps hedging fixed rate borrowings					74		74
Income tax assets					442		442
Total assets							9,319
Segment liabilities	(2,956)	(771)	(441)	(359)	—	254	(4,273)
Borrowings					(1,533)		(1,533)
Income tax liabilities					(349)		(349)
Post-retirement benefit obligations					(1,659)		(1,659)
Total liabilities							(7,814)
Expenditure on intangible assets and property, plant and equipment	270	48	29	17			364
Depreciation and amortisation	173	32	19	19			243
Impairments	11	—	—	—			11

Geographical segments
The Group's revenue by destination is shown below:

	2006 £m	2005 £m
United Kingdom	944	886
Rest of Europe	1,159	1,059
USA	2,458	2,408
Canada	207	191
Asia	1,902	1,516
Africa	78	152
Australasia	146	96
Other	262	295
	7,156	6,603

The following analysis shows the carrying amounts of the Group’s assets, and additions to
intangible assets and property, plant and equipment, by the geographical area in which the
assets are located:

	Segment assets			Additions to intangible assets and property, plant and equipment
	2006	2005		2006	2005
	£m	£m		£m	£m
United Kingdom	7,563	6,730		467	316
North America	1,268	1,265		22	24
Nordic countries	931	832		15	11
Germany	565	652		19	5
Other	331	310		5	8
Eliminations	(280)	(470)		—	—
	10,378	9,319		528	364

Underlying profit reconciliation

	2006				2005
	£m	Underlying adjustments £m	Underlying results £m		£m	Underlying adjustments £m	Underlying results £m
Profit before net financing income/(costs)
Civil aerospace	479	40	519		659	(205)	454
Defence aerospace	186	7	193		177	3	180
Marine	103	(2)	101		87	2	89
Energy	(28)	10	(18)		(1)	2	1
Central items	(47)	—	(47)		(45)	—	(45)
	693	55	748		877	(198)	679
Net financing income/(costs)	698	(741)	(43)		(400)	314	(86)
Profit before tax	1,391	(686)	705		477	116	593

Underlying adjustments

	2006			2005
	Profit before financing income/(costs) £m	Profit before tax £m		Profit before financing income/(costs) £m	Profit before tax £m
The reconciliation of underlying earnings per ordinary share is provided in note 7. * An underlying adjustment in respect of the net post-retirement scheme financing costs has been included in the 2005 adjustments to put them on a comparable basis to the current year.
Release of transition hedge reserve	(289)	(289)		(452)	(452)
Realised gains on settled derivative contracts	343	370		328	396
Realised gains carried forward in contract balances	(27)	(27)		(32)	(32)
Net unrealised fair value changes to derivative contracts	—	(730)		—	345
Unrealised gains recognised in contract balances	28	28		(42)	(42)
Revaluation of trading assets and liabilities	—	4		—	(78)
Financial RRSPs – foreign exchange differences and changes in forecast payments	—	(39)		—	(30)
Net post-retirement scheme financing (income)/costs*	—	(3)		—	9
	55	(686)		(198)	116