Reliant FORM 10-K manual Sale of Clarify, Closures, Long-term debt, credit and support facilities

Sale of Clarify

On November 28, 2001, Nortel Networks sold substantially all of the assets of its then wholly owned subsidiary, Clarify, including patents, intellectual property and trademarks, to Amdocs Limited for approximately $200 in cash, resulting in a gain of $16.

Closures

As part of its restructuring work plan initiated in 2001, Nortel Networks closed the operations of CoreTek and Xros in 2002. In 2001, Nortel Networks closed the operations of EPiCON, Photonic and Dimension (see note 7).

As described in note 7, the amount of goodwill and acquired technology associated with a number of Nortel Networks prior acquisitions was written down by $622 and $11,833, during the years ended December 31, 2002 and 2001, respectively.

11. Long-term debt, credit and support facilities

Long-term debt

The following table shows the components of long-term debt as of December 31:

				2003		2002
6.00%	Notes due September 1, 2003		$	–	$	164
6.125%		Notes due February 15, 2006		1,275		1,314
7.40%	Notes due June 15, 2006(a)			150		150
4.25%	Convertible Senior Notes due September 1, 2008			1,800		1,800
6.875%		Notes due September 1, 2023		200		200
7.875%		Notes due June 15, 2026(a)		150		150
Other long-term debt with various repayment terms and a weighted-average interest rate of 3.49% for 2003 and 4.60% for 2002				20		88
Fair value adjustment attributable to hedged debt obligations				53		72
Obligations associated with consolidated VIEs(b)				184		–
Obligations under capital leases and sale leasebacks(c)				178		265
				4,010		4,203
Less: Long-term debt due within one year				119		243
Long-term debt			$	3,891	$	3,960

(a)Notes were issued by Nortel Networks Capital Corporation, an indirect wholly owned finance subsidiary of NNL, and are fully and unconditionally guaranteed by NNL.

(b)Represents obligations of certain VIEs consolidated prospectively, as required by FIN 46R, of $184 as of December 31, 2003 (see note 4(d)).

(c)Included lease obligations recorded prospectively, in accordance with EITF 01-8, of $2 as of December 31, 2003 (see note 4(h)).

As of December 31, 2003, the amounts of long-term debt payable for each of the years ending December 31 consisted of:

2004	$	119
2005		16
2006		1,492
2007		15
2008		1,816
Thereafter		552
Total long-term debt payable	$	4,010

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