Reliant FORM 10-K manual Accruals, Interest Pooled Reported

Summary of Restatement Adjustments for the year ended December 31, 2002:

	Accruals and		Related party	Plant and			Total
		provisions	transactions	equipment		adjustments
Revenues — external		–	–		–		–
Revenues — related parties		–	(5,362)		–		(5,362)
		–	(5,362)		–	(5,362)
Cost of revenues	9,030		(54,524)	483		(45,011)
Gross profit	(9,030)		49,162	(483)		39,649
Selling, general and administrative expense	(420)		–	(3,280)		(3,700)
Research and development expense	6,690		–		–	6,690
Special charges — other special charges	2,646		–		–	2,646
Other income (expense) — net	(1,541)		184	(129)		(1,486)
Foreign exchange gain (loss)	306		25		–	331
Interest expense		–	–	(3,280)		(3,280)
Total restatement adjustments	(19,181)		49,371	(612)		29,578

Consolidated Statements of Operations for the year ended December 31, 2001

		As	Second	Pooling of	As
	previously		Restatement	interest	pooled and
	reported		Adjustments	Adjustments	restated
Revenues — external		275,915	–	491,798	767,713
— related parties		429,643	9,800	(371)	439,072
	705,558		9,800	491,427	1,206,785
Cost of revenues	809,472		(74,439)	381,733	1,116,766
Gross profit (loss)	(103,914)		84,239	109,694	90,019
Selling, general and administrative expense	74,617		(2,876)	103,692	175,433
Research and development expense	253,327		(13,677)	9,953	249,603
Amortization of goodwill		–	–	3,434	3,434
Special charges
Goodwill impairment		–	–	20,607	20,607
Other special charges	74,463		(8,095)	8,404	74,772
(Gain) loss on sale of businesses and assets		–	–	(10,243)	(10,243)
Operating earnings (loss)	(506,321)		108,887	(26,153)	(423,587)
Other income (expense) — net	46,240		(266)	8,024	53,998
Foreign exchange gain (loss)	4,442		–	(6,152)	(1,710)
Interest expense	(5,033)		(2,821)	(3,432)	(11,286)
Earnings (loss) before income taxes and minority interest	(460,672)		105,800	(27,713)	(382,585)
Minority interest — net of tax		–	–	8,973	8,973
Income tax benefit	26,198		–	7,875	34,073
Net earnings (loss)	(434,474)		105,800	(10,865)	(339,539)

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