Reliant FORM 10-K manual Cash flows from used in operating activities

NORTEL NETWORKS CORPORATION

Consolidated Statements of Cash Flows for the years ended December 31

(millions of U.S. dollars)		2003		2002		2001
			As restated *		As restated *
Cash flows from (used in) operating activities
Net earnings (loss) from continuing operations	$	262	$	(2,893)	$	(23,270)
Adjustments to reconcile net earnings (loss) from continuing operations to net cash from (used in) operating activities, net
of effects from acquisitions and divestitures of businesses:
Amortization and depreciation		541		701		5,665
In-process research and development expense		–		–		15
Non-cash portion of special charges and related asset write downs		87		1,142		12,760
Equity in net loss of associated companies		36		17		150
Current and deferred stock option compensation		42		110		248
Deferred income taxes		(50)		(425)		(1,513)
Other liabilities		161		(2)		(9)
(Gain) loss on repurchases of outstanding debt securities		(4)		(60)		–
(Gain) loss on sale or write down of investments and businesses		(51)		18		506
Other — net		(786)		(191)		(1,529)
Change in operating assets and liabilities		(153)		815		7,183
Net cash from (used in) operating activities of continuing operations		85		(768)		206
Cash flows from (used in) investing activities
Expenditures for plant and equipment		(172)		(352)		(1,302)
Proceeds on disposals of plant and equipment		38		406		208
Acquisitions of investments and businesses — net of cash acquired		(58)		(29)		(79)
Proceeds on sale of investments and businesses		107		104		604
Net cash from (used in) investing activities of continuing operations		(85)		129		(569)
Cash flows from (used in) financing activities
Dividends on common shares		–		–		(123)
Dividends paid by subsidiaries to minority interests		(35)		(26)		(27)
Increase (decrease) in notes payable — net		(45)		(333)		(230)
Proceeds from long-term debt		–		33		3,286
Repayments of long-term debt		(270)		(611)		(470)
Repayments of capital leases payable		(12)		(17)		(26)
Issuance of common shares		3		863		146
Issuance of prepaid forward purchase contracts		–		623		–
Net cash from (used in) financing activities of continuing operations		(359)		532		2,556
Effect of foreign exchange rate changes on cash and cash equivalents		176		74		(10)
Net cash from (used in) continuing operations		(183)		(33)		2,183
Net cash from (used in) discontinued operations		390		349		(331)
Net increase (decrease) in cash and cash equivalents		207		316		1,852
Cash and cash equivalents at beginning of year		3,790		3,474		1,622
Cash and cash equivalents at end of year	$	3,997	$	3,790	$	3,474

* See note 3

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

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