Reliant FORM 10-K manual Nortel Non Networks

Supplemental Consolidating Statements of Cash Flows 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
Cash flows from (used in) operating activities
Net earnings (loss) from continuing operations	$	250	$	422	$	594	$	135	$	(1,139)	$	262
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		–		75		249		217		–		541
Non-cash portion of special charges and related asset write
downs		–		9		76		2		–		87
Equity in net loss of associated companies		(304)		(351)		(404)		(9)		1,104		36
Current and deferred stock option compensation		15		4		19		4		–		42
Deferred income taxes		14		5		(82)		13		–		(50)
Other liabilities		–		83		74		4		–		161
(Gain) loss on repurchases of outstanding debt securities		–		(4)		–		–		–		(4)
(Gain) loss on sale or write-down of investments and businesses		–		(7)		(4)		(40)		–		(51)
Other — net		766		291		(904)		(974)		35		(786)
Change in operating assets and liabilities		2		190		(741)		396		–		(153)
Intercompany/related party activity		(836)		(831)		1,506		161		–		–
Net cash from (used in) operating activities of continuing operations		(93)		(114)		383		(91)		–		85
Cash flows from (used in) investing activities
Expenditures for plant and equipment		–		(41)		(85)		(46)		–		(172)
Proceeds on disposals of plant and equipment		–		7		28		3		–		38
Acquisitions of investments and businesses — net of cash acquired		–		(60)		(6)		8		–		(58)
Proceeds on sale of investments and businesses		–		6		101		–		–		107
Net cash from (used in) investing activities of continuing operations		–		(88)		38		(35)		–		(85)
Cash flows from (used in) financing activities
Dividends on preferred shares		–		(35)		–		–		35		–
Dividends paid by subsidiaries to minority interests		–		–		–		–		(35)		(35)
Increase (decrease) in notes payable — net		–		–		4		(49)		–		(45)
Proceeds from long-term debt		–		–		–		–		–		–
Repayments of long-term debt		–		(199)		(2)		(69)		–		(270)
Repayments of capital leases payable		–		–		(12)		–		–		(12)
Issuance of common shares		3		–		–		–		–		3
Net cash from (used in) financing activities of continuing operations		3		(234)		(10)		(118)		–		(359)
Effect of foreign exchange rate changes on cash and cash equivalents		3		2		137		34		–		176
Net cash from (used in) continuing operations		(87)		(434)		548		(210)		–		(183)
Net cash from (used in) discontinued operations		120		175		224		(129)		–		390
Net increase (decrease) in cash and cash equivalents		33		(259)		772		(339)		–		207
Cash and cash equivalents at beginning of year		35		251		2,392		1,112		–		3,790
Cash and cash equivalents at end of year	$	68	$	(8)	$	3,164	$	773	$	–	$	3,997

F-90