COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS Financial instruments  22 Obligations under leases 23 (continued) Unrecognised Deferred Gains Losses Gains Losses € m € m € m € m On hedges at 1 January 2003 12 (193) 89 (23) Arising in previous years included in 2003 profit and loss account (12) 84 (49) 13 Arising in previous years not included in 2003 profit and loss account – (109) 40 (10) Arising in 2003 not included in 2003 profit and loss account 10 (2) 58 (26) On hedges at 31 December 2003 10 (111) 98 (36) Of which: Expected to be included in 2004 profit and loss account 6 (50) 62 (20) Expected to be included in 2005 profit and loss account or later 4 (61) 36 (16) Of the above annual commitments, £100m/ € 142m relates to land and buildings (2002: £99m/ € 152m) and £6m/ € 9m to other leases (2002: £4m/ € 6m). Future finance lease obligations are: 2003 2002 2003 2002 Note £m £m € m € m Repayable: Within one year 17 9 24 14 Within one to two years 4 6 6 9 Within two to five years 4 3 6 5 After five years – 7 – 11 Less: interest charges allocated to future periods (2) (3) (3) (5) Total 23 22 33 34 Obligations falling due within one year 20 16 8 23 12 Obligations falling due after more than one year 21 7 14 10 22 Total 23 22 33 34 Annual commitments under operating leases are: 2003 2002 2003 2002 £m £m € m € m On leases expiring: Within one year 9 7 13 11 Within two to five years 38 37 54 57 After five years 59 59 84 90 Total 106 103 151 158 66 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003