Reliant FORM 10-K manual Total comprehensive income loss for the year

NORTEL NETWORKS CORPORATION

Consolidated Statements of Changes in Equity and Comprehensive Income (Loss)

(millions of U.S. dollars)		2003		2002		2001
			As restated *		As restated *
Common shares
Balance at the beginning of the year	$	33,234	$	32,245	$	29,141
Common shares issued (cancelled) — net		3		863		207
Conversion of prepaid forward purchase contracts		413		1		–
Common shares issued (cancelled) related to acquisitions — net		(11)		(12)		2,509
Fair value and costs associated with assumed options and stock purchase plans		35		137		388
Balance at the end of the year		33,674		33,234		32,245
Additional paid-in capital
Balance at the beginning of the year		3,753		3,256		3,637
Adjustments as of January 1, 2001 due to restatement *		–		–		(10)
Additions resulting from acquisition related share cancellations		11		12		10
Prepaid forward purchase contracts issued		–		623		–
Prepaid forward purchase contracts settled		(413)		(1)		–
Fair value and costs associated with assumed options and stock purchase plans		(35)		(137)		(401)
Stock option compensation		26		–		–
Cancellation of deferred stock options		(1)		(13)		(85)
Tax benefit associated with stock options		–		13		105
Balance at the end of the year		3,341		3,753		3,256
Deferred stock option compensation
Balance at the beginning of the year		(17)		(140)		(413)
Adjustments as of January 1, 2001 due to restatement *		–		–		(56)
Additions resulting from acquisitions		–		–		(8)
Amortization of deferred stock option compensation		16		110		252
Cancellation of deferred stock options		1		13		85
Balance at the end of the year		–		(17)		(140)
Accumulated deficit
Balance at the beginning of the year		(32,966)		(29,972)		(2,695)
Adjustments as of January 1, 2001 due to restatement *		–		–		(1,432)
Net earnings (loss)		434		(2,994)		(25,722)
Dividends on common shares		–		–		(123)
Balance at the end of the year		(32,532)		(32,966)		(29,972)
Accumulated other comprehensive loss
Balance at the beginning of the year		(951)		(581)		(499)
Adjustments as of January 1, 2001 due to restatement *		–		–		189
Foreign currency translation adjustment		529		157		(134)
Unrealized gain (loss) on investments — net		57		19		(39)
Unrealized derivative gain (loss) on cash flow hedges — net		15		11		(7)
Minimum pension liability adjustment — net		(188)		(557)		(84)
Cumulative effect of accounting change — net		–		–		(7)
Other comprehensive income (loss)		413		(370)		(271)
Balance at the end of the year		(538)		(951)		(581)
Total shareholders’ equity	$	3,945	$	3,053	$	4,808
Total comprehensive income (loss) for the year
Net earnings (loss)	$	434	$	(2,994)	$	(25,722)
Other comprehensive income (loss)		413		(370)		(271)
Total comprehensive income (loss) for the year	$	847	$	(3,364)	$	(25,993)

* See note 3

The accompanying notes are an integral part of these consolidated financial statements

F-4