Reliant FORM 10-K manual Schedule Consolidated, Additions, Charged, Beginning To costs End

Schedule II

Consolidated

NORTEL NETWORKS CORPORATION

Valuation and Qualifying Accounts and Reserves

Provision For Uncollectibles (a)

(millions of U.S. dollars)

				Additions
		Balance at		charged			Balance at
	beginning of			to costs				end of
U.S. GAAP		year	and expenses		Deductions(b)			year(c)
Year 2003	$	1,282	$	(180)	$	611	$	491
Year 2002(d)	$	1,540	$	291	$	549	$	1,282
Year 2001(d)	$	809	$	1,791	$	1,060	$	1,540

(a)Excludes Discontinued Operations.

(b)Includes acquisitions and disposals of subsidiaries and divisions and amounts written off, and foreign exchange translation adjustments.

(c)Includes provisions for uncollectibles on long-term accounts receivable of $297, $780, and $761 as of December 31, 2003, 2002, and 2001, respectively.

(d)As restated (see note 3 to the accompanying consolidated financial statements).

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