Reliant FORM 10-K manual Consolidated Balance Sheets as of December 31, Guarantees

Consolidated Balance Sheets as of December 31, 2002

			As	Second	Pooling of	As
		previously		Restatement	interest	pooled and
		reported		Adjustments	Adjustments	restated
	ASSETS
	Current assets
	Cash and cash equivalents		66,687	897	82,835	150,419
	Accounts receivable		45,665	164	38,126	83,955
	Inventories — net	58,385		838	20,847	80,070
	Receivables from related parties	123,272		115,237	(4,438)	234,071
	Other current assets	99,490		(2,972)	9,846	106,364
	Total current assets	393,499		114,164	147,216	654,879
	Long-term receivable from related party	140,010		–	–	140,010
	Investments at cost	5,632		–	10,544	16,176
	Plant and equipment — net	126,948		82,629	8,544	218,121
	Goodwill		–	–	–	–
	Intangible assets — net		–	–	3,454	3,454
	Deferred income taxes — net	35,304		–	7,964	43,268
	Other assets	6		–	–	6
	Total assets	701,399		196,793	177,722	1,075,914
	LIABILITIES AND SHAREHOLDERS’ EQUITY
	Current liabilities
	Trade and other accounts payable		80,257	1,406	9,488	91,151
	Payables to related parties		52,023	(7,531)	44,834	89,326
	Payroll and benefit-related liabilities	44,503		333	5,973	50,809
	Contractual Liabilities	33,818		(1,488)	5,488	37,818
	Restructuring	15,231		(3,401)	1,516	13,346
	Other accrued liabilities	161,005		(4,500)	17,755	174,260
	Long-term debt due within one year		–	3,073	–	3,073
	Total current liabilities	386,837		(12,108)	85,054	459,783
	Other liabilities	1,837		268	732	2,837
	Long-term deferred Income		–	–	17,231	17,231
	Long-term debt		–	76,457	–	76,457
	Long-term note payable to related party	200,000		–	20,000	220,000
	Total liabilities	588,674		64,617	123,017	776,308
	Minority interest		–	–	9,757	9,757
	SHAREHOLDERS’ EQUITY
	Common shares, 0.005 par value	306,544		–	–	306,544
	€		–	–	43,997	43,997
	Additional paid-in capital
	Accumulated deficit	(193,819)		132,176	951	(60,692)
	Total shareholders’ equity	112,725		132,176	44,948	289,849
	Total liabilities and shareholders’ equity	701,399		196,793	177,722	1,075,914
4.	Accounting changes
	(a) Guarantees

In November 2002, the FASB issued FIN 45, “Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others — an interpretation of FASB Statements No. 5, 57 and 107 and rescission of FASB interpretation No. 34” (“FIN 45”). FIN 45 defines a guarantee as a contract that contingently requires a guarantor to pay a guaranteed party as a result of changes in an underlying economic characteristic (such as interest rates or market value) that is related to an asset, a liability or an equity security of the guaranteed party or a third party’s failure to perform under a specified agreement. FIN 45 requires that a liability be recognized for the estimated fair value of the guarantee at its inception. Guarantees issued prior to January 1, 2003 are not subject to the recognition and measurement provisions, but are subject to expanded disclosure requirements. Nortel Networks S.A. has entered into agreements that contain features which meet the definition of a guarantee under FIN 45. Effective December 31, 2002, Nortel Networks S.A. adopted the disclosure requirements of FIN 45. In addition, effective January 1, 2003, Nortel Networks S.A. adopted the initial recognition and measurement provisions of FIN 45 which apply on a prospective basis to certain guarantees

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