COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS Financial instruments  (continued) Interest Non interest Interest Non interest bearing bearing bearing bearing financial financial financial financial assets assets assets assets £m £m € m € m 2002 US dollar 81 67 124 95 Sterling 207 – 317 – Euro 246 5 376 7 Other currencies 36 7 55 10 Total 570 79 872 112 22 Non interest bearing financial assets reflect the prior year adjustment in respect of other investments, as described in note 27. At 31 December 2003 there were interest rate swaps in place with a principal amount totalling £100m/ € 142m (2002: £nil/ € nil) and interest rate floors in place with a principal amount totalling £50m/ € 71m (2002: £150m/ € 230m) denominated in sterling that mature within one year. Floating rate interest rates payable on US commercial paper are based on US dollar commercial paper rates. Other financial assets and liabilities bear interest by reference to LIBOR or other national LIBOR equivalent interest rates. Included within non interest bearing financial assets are £41m/ € 58m (2002: £59m/ € 90m) of investments denominated principally in sterling and US dollars which have no maturity date. At 31 December 2003, agreements totalling £653m/ € 927m (2002: £187m/ € 286m) were in place to enter into interest rate swaps at future dates. Of these, individual swap agreements totalling £449m/ € 638m (2002: £125m/ € 191m) were to fix the interest expense on US dollar borrowings commencing in 2004 and 2006 for periods of up to 30 months, at a weighted average interest rate of 2.5%. A further £104m/ € 148m (2002: £nil/ € nil) interest rate swap agreement starting in 2004 was to swap a US dollar fixed rate debt issue, to be drawn down in 2004, to floating rate debt for a period of 10 years. Interest rate swap agreements totalling £100m/ € 142m (2002: £nil/ € nil) and starting in 2004 were to fix the interest income on sterling short term investments for one year, at a weighted average interest rate of 3.6%. There were no forward starting interest rate options (2002: £62m/ € 95m) or interest rate floors (2002: £nil/ € nil). At 31 December 2003, forward rate agreements totalling £253m/ € 359m (2002: £780m/ € 1,193m) were in place. These comprised a succession of agreements to fix the interest expense on short term US dollar borrowings commencing in 2004 and 2006 for periods of three months only, at a weighted average interest rate of 3.2%. Financial liabilities repayable within one year include US commercial paper and euro commercial paper. Short term borrowings are supported by committed facilities and by centrally managed cash and short term investments. As at  31 December 2003, a total of £1,684m/ € 2,372m (2002: £2,188m/ € 3,348m) of committed facilities were available, of which £51m/ € 72m (2002: £63m/ € 96m) was drawn and is included in financial liabilities repayable within one year. Of the total committed facilities, £421m/ € 598m (2002: £1,788m/ € 2,736m) matures within one year, £nil/ € nil (2002: £400m/ € 612m) within two to three years and £1,263m/ € 1,794m (2002: £nil/ € nil) within four to five years. Secured borrowings under finance leases were £23m/ € 33m (2002: £22m/ € 34m). The business policy is to hedge all significant transaction exposures on monetary assets and liabilities fully and consequently there are no material currency exposures that would give rise to gains and losses in the profit and loss account in the functional currencies of the operating units. Currency exposure Maturity profile of financial liabilities 2003 2002 2003 2002 £m £m € m € m Repayable: Within one year 1,198 1,367 1,701 2,091 Within one to two years 107 35 152 53 Within two to five years 1,099 944 1,561 1,445 After five years 670 1,045 951 1,599 Total 3,074 3,391 4,365 5,188 The maturity profile of financial liabilities at 31 December comprised: REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 63 Forward starting interest rate derivatives