REED ELSEVIER PLC > NOTES TO THE FINANCIAL STATEMENTS 2003 2002 Note £m £m Share of operating profit before amortisation and exceptional items (based on 52.9% economic interest in the Reed Elsevier combined businesses) 623 599 Effect of tax credit equalisation on distributed earnings 2 (8) (7) Items consolidated within Reed Elsevier PLC group 1 1 Total 616 593 Income from interests in joint ventures 1 Segmental analysis of the Reed Elsevier combined results is shown in the Reed Elsevier combined financial statements. Effect of tax credit equalisation on distributed earnings 2 The tax credit equalisation adjustment arises on dividends paid by Reed Elsevier PLC to its shareholders and reduces the earnings of the company by 47.1% of the total amount of the tax credit, as set out in the accounting policies on page 76. Operating loss 3 The operating loss comprises administrative expenses and includes £330,000 (2002: £318,000) paid in the year to Reed Elsevier Group plc under a contract for the services of directors and administrative support. The company has no employees (2002: nil). Auditors’ remuneration 4 Audit fees payable for the group were £23,000 (2002: £23,000). Directors’ emoluments 5 Information on directors’ remuneration, share options, longer term incentive plans, pension contributions and entitlements is set out in the Directors’ Remuneration Report on pages 29 to 38. 2003 2002 £m £m Interest receivable and similar income On loans to Reed Elsevier Group plc group 3 3 Net interest income 3 3 Net interest 6 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 81