Reliant FORM 10-K manual Nortel Networks S.A

NORTEL NETWORKS S.A.

(a Subsidiary of Nortel Networks Limited)

Consolidated Statements of Cash Flows for the years ended December 31

(thousands of Euros)	2003	2002	2001
		As restated*	As restated*
Cash flows from (used in) operating activities
Net loss	(138,889)	(206,174)	(339,539)
Adjustments to reconcile net loss to net cash from (used in) operating activities:
Amortization and depreciation	63,536	45,964	50,060
Non-cash portion of special charges and related assets write down	–	–	20,607
Deferred income taxes	(4,242)	(3,728)	(37,249)
(Gain) loss on disposal of assets	13,883	16,171	5,997
(Gain) loss on disposal of investments	–	–	(16,240)
Current and deferred stock option compensation	1,333	–	–
Changes in operating assets and liabilities:
Accounts receivable	(29,456)	22,451	124,235
Receivables from related parties	27,947	246,248	24,699
Inventories	13,873	31,612	40,672
Accounts payable and accrued liabilities	(17,843)	(25,908)	(179,972)
Payables to related parties	(57,165)	(437,236)	257,754
Income taxes	4	(161)	(27,416)
Other operating assets and liabilities	89,510	(36,488)	44,679
Net cash used in operating activities	(37,509)	(347,249)	(31,713)
Cash flows from (used in) investing activities
Expenditures for plant and equipment	(41,246)	(57,631)	(108,601)
Expenditure for investments	(154,192)	(2,490)	(9,296)
Proceeds on disposal of investments	58,940	9,909	23,834
Proceeds on disposal of plant and equipment	596	754	8,855
Divestiture of investments & businesses — net cash divested	–	–	(6,614)
Increase (decrease) in other financial assets	9,147	(7,147)	–
Net cash used in investing activities	(126,755)	(56,605)	(91,822)
Cash flows from (used in) financing activities
Issuance of common shares	–	204,363	–
(Increase) decrease in receivables from related parties — net	91,437	(142,329)	2,319
Increase (decrease) in notes payable to related parties — net	–	320,000	181,000
(Increase) decrease in long-term receivables	–	–	531
Increase (decrease) in notes payable	(3,240)	(3,295)	4,750
Dividend paid	–	–	(29,736)
Net cash from financing activities	88,197	378,739	158,864
Net increase (decrease) in cash and cash equivalents	(76,067)	(25,115)	35,329
Cash and cash equivalents, beginning of year	150,419	175,534	140,205
Cash and cash equivalents, end of year	74,352	150,419	175,534

* See note 3

The accompanying notes are an integral part of these financial statements

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