REED ELSEVIER PLC > NOTES TO THE FINANCIAL STATEMENTS Share option schemes 18 Details of shares held in treasury are provided in note 26 to the combined financial statements. REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 85 These amounts are denominated in sterling and earn interest at a fixed rate of 10.5% (2002: 10.5%) for a remaining duration of two years (2002: three years). At 31 December 2003 these amounts had a fair value of £40m (2002: £42m). During the year a total of 2,737,010 ordinary shares in the company, having a nominal value of £0.3m, were allotted in connection with the exercise of share options. The consideration received by the company was £11.5m. Options were granted during the year under the Reed Elsevier Group plc Executive Share Option Scheme to subscribe for 15,004,082 ordinary shares, at prices between 431p and 540p per share. Options were also granted during the year under the Reed Elsevier Group plc SAYE Share Option Scheme to subscribe for 1,825,263 ordinary shares at a price of 399.6p per share. Options outstanding at 31 December 2003 over the company’s ordinary share capital were: The above entitlements are expected, upon exercise, to be met principally by the issue of new ordinary shares. Options to subscribe for 3,539,646 ordinary shares in the company lapsed during the year. Excluded from above are 2,407,064 options at subscription prices ranging between 424p and 537.5p and 232,461 nil cost options which, upon exercise, will be met by the Reed Elsevier Group plc Employee Benefit Trust from shares purchased in the market. Consolidated Company 2003 2002 2003 2002 £m £m £m £m Amounts owed to Reed Elsevier Group plc group 36 36 36 36 Creditors: amounts falling due after more than one year 16 Authorised Issued and fully paid 2003 2002 No. of No. of No. of shares £m shares £m shares £m Ordinary shares of 12.5p each  1,271,111,509 159 1,271,111,509 159 1,268,374,499 159 Unclassified shares of 12.5p each 200,341,667 25 – – – – Total 184 159 159 Called up share capital 17 Details of shares issued under share option schemes are set out in note 18. Number of Range of ordinary shares subscription prices Exercisable UK and overseas executive share option schemes 45,311,222 400.75p-700.0p 2004-2013 Senior Executive Long Term Incentive Scheme 12,385,458 436.50p-700.0p 2005 UK SAYE share option scheme 3,675,932 336.2p-543.2p 2004-2009 Consolidated Share Shares Capital Profit premium held in redemption and loss account treasury reserve reserve Total £m £m £m £m £m At 1 January 2003 as originally reported 951 – 4 293 1,248 Prior year adjustment (note 21) – (10) – – (10) At 1 January 2003 as restated 951 (10) 4 293 1,238 Profit attributable to ordinary shareholders – – – 169 169 Equity dividends paid and proposed – – – (152) (152) Issue of ordinary shares, net of expenses 12 – – – 12 Increase in shares held in treasury – (10) – – (10) Exchange translation differences – – – (123) (123) Equalisation adjustments – – – (5) (5) At 31 December 2003 963 (20) 4 182 1,129 Reserves 19