Reliant FORM 10-K manual Supplemental Consolidating Balance Sheets as of December 31

Supplemental Consolidating Balance Sheets as of December 31, 2003:

		Nortel		Nortel				Non-
		Networks	Networks			Guarantor		Guarantor
(millions of U.S. dollars)	Corporation			Limited	Subsidiaries		Subsidiaries		Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	68	$	(8)	$	3,164	$	773	$	–	$	3,997
Restricted cash and cash equivalents		–		25		37		1		–		63
Accounts receivable — net		–		314		1,671		520		–		2,505
Intercompany/related party accounts receivable		50		345		1,053		1,099		(2,547)		–
Inventories — net		–		302		565		323		–		1,190
Income taxes recoverable		–		13		52		25		–		90
Deferred income taxes — net		–		67		302		–		–		369
Other current assets		–		31		178		106		–		315
Total current assets		118		1,089		7,022		2,847		(2,547)		8,529
Investments		5,728		1,995		(7,568)		285		(196)		244
Intercompany advances		–		166		537		1,487		(2,190)		–
Plant and equipment — net		–		475		817		364		–		1,656
Goodwill		–		–		1,962		343		–		2,305
Intangible assets — net		–		40		1		45		–		86
Deferred income taxes — net		–		1,673		1,655		69		–		3,397
Other assets		37		102		60		175		–		374
Total assets	$	5,883	$	5,540	$	4,486	$	5,615	$	(4,933)	$	16,591
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Notes payable	$	–	$	2	$	3	$	12	$	–	$	17
Trade and other accounts payable		1		347		406		107		–		861
Intercompany/related party accounts payable		109		(4,071)		3,211		3,298		(2,547)		–
Payroll and benefit-related liabilities		2		137		479		146		–		764
Contractual liabilities		–		26		309		195		–		530
Restructuring		–		52		138		16		–		206
Other accrued liabilities		26		356		1,660		463		–		2,505
Long-term debt due within one year		–		11		101		7		–		119
Total current liabilities		138		(3,140)		6,307		4,244		(2,547)		5,002
Long-term debt		1,800		1,549		127		415		–		3,891
Deferred income taxes — net		–		–		173		18		–		191
Other liabilities		–		930		1,811		204		–		2,945
Intercompany advances		–		11		297		1,882		(2,190)		–
Total liabilities		1,938		(650)		8,715		6,763		(4,737)		12,029
Minority interests in subsidiary companies		–		–		–		81		536		617
SHAREHOLDERS’ EQUITY
Preferred shares		–		536		237		47		(820)		–
Common shares		33,674		1,211		6,089		1,560		(8,860)		33,674
Additional paid-in capital		3,341		22,031		1,081		19,342		(42,454)		3,341
Deferred stock option compensation		–		–		–		(9)		9		–
Accumulated deficit		(32,532)		(17,066)		(12,661)		(22,139)		51,866		(32,532)
Accumulated other comprehensive income (loss)		(538)		(522)		1,025		(30)		(473)		(538)
Total shareholders’ equity		3,945		6,190		(4,229)		(1,229)		(732)		3,945
Total liabilities and shareholders’ equity	$	5,883	$	5,540	$	4,486	$	5,615	$	(4,933)	$	16,591

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