Reliant FORM 10-K manual Nortel Non

Supplemental Consolidating Statements of Operations for the year ended December 31, 2003:

			Nortel		Nortel				Non-
			Networks	Networks			Guarantor		Guarantor
(millions of U.S. dollars)	Corporation				Limited	Subsidiaries		Subsidiaries		Eliminations			Total
Revenues	$	–	$	3,182	$	7,566	$	2,804	$	(3,359)	$	10,193
Cost of revenues			–		1,995		5,106		2,110		(3,359)		5,852
Gross profit			–		1,187		2,460		694		–		4,341
Selling, general and administrative expense			–		430		1,327		182		–		1,939
Research and development expense			–		814		878		268		–		1,960
Amortization of acquired technology and other			–		–		–		101		–		101
Deferred stock option compensation			–		–		–		16		–		16
Special charges			–		66		246		(28)		–		284
(Gain) loss on sale of businesses and assets			–		4		(3)		(5)		–		(4)
Operating earnings (loss)			–		(127)		12		160		–		45
Other income (expense) — net		24			86		301		34		–		445
Interest expense
Long-term debt		(83)			(68)		(4)		(26)		–		(181)
Other			–		(4)		(69)		45		–		(28)
Earnings (loss) from continuing operations before income taxes,
minority interests and equity in net loss of associated companies		(59)			(113)		240		213		–		281
Income tax benefit (expense)		5			184		(50)		(59)		–		80
		(54)			71		190		154		–		361
Minority interests — net of tax			–		–		–		(28)		(35)		(63)
Equity in net earnings (loss) of associated companies — net of tax		304			351		404		9		(1,104)		(36)
Net earnings (loss) from continuing operations		250			422		594		135		(1,139)		262
Net earnings (loss) from discontinued operations — net of tax		184			147		95		37		(279)		184
Net earnings (loss) before cumulative effect of accounting change		434			569		689		172		(1,418)		446
Cumulative effect of accounting change — net of tax			–		(4)		(8)		–		–		(12)
Net earnings (loss)	$	434		$	565	$	681	$	172	$	(1,418)	$	434

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