Reliant FORM 10-K manual Consolidated balance sheets, Accounts receivable net, Inventories net

Consolidated balance sheets

Accounts receivable — net:

		2003		2002
Trade receivables	$	2,117	$	1,863
Contracts in process		582		867
		2,699		2,730
Less: provision for doubtful accounts		(194)		(502)
Accounts receivable — net	$	2,505	$	2,228

Inventories — net:

		2003		2002
Raw materials	$	249	$	339
Work in process		172		256
Finished goods		769		911
Inventories — net(a)	$	1,190	$	1,506

(a)Net of inventory provisions of $1,226 and $1,180 as of December 31, 2003 and 2002, respectively. Other reserves for claims related to contract manufacturers and suppliers of $120 and $171 as of December 31, 2003 and 2002, respectively, were included in other accrued liabilities. These accruals were related to cancellation charges, contracted-for inventory in excess of future demand and the settlement of certain other claims.

Other current assets:

		2003		2002
Prepaid expenses	$	176	$	162
Current assets of discontinued operations(a)		28		209
Other		111		279
Other current assets	$	315	$	650

(a)See note 20 for additional information.

Plant and equipment — net:

		2003		2002
Cost:
Land	$	62	$	63
Buildings		1,483		1,433
Machinery and equipment		2,749		3,492
		4,294		4,988
Less accumulated depreciation:
Buildings		(457)		(532)
Machinery and equipment		(2,181)		(2,764)
		(2,638)		(3,296)
Plant and equipment — net(a)(b)(c)	$	1,656	$	1,692

(a)Included assets held for sale with a carrying value of $30 and $73 as of December 31, 2003 and 2002, respectively, related to owned facilities that were being actively marketed. These assets were written down in previous periods to their estimated fair values less costs to sell. The write downs were included in special charges. Nortel Networks expects to dispose of all of these facilities by mid-2005.

(b)Included VIE assets consolidated prospectively, as required by FIN 46R, of $183 as of December 31, 2003 (see note 4(d)).

(c)Included embedded leases recorded prospectively, as required by EITF 01-8, of $2 as of December 31, 2003 (see note 4(h)).

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