Reliant FORM 10-K manual Investment at cost net, Wireless, Wireline Optical, Networks

Plant and equipment — net:

			2003	2002
Cost:
Land and buildings			104,810	114,660
Leasehold improvements			31,243	38,310
Machinery and equipment			219,818	203,553
Furniture and fixtures			44,058	37,146
Computers			6,893	22,130
Other			1,430	15,885
			408,252	431,684
Less accumulated depreciation:
Buildings			(15,943)	(16,681)
Leasehold improvements			(21,872)	(34,356)
Machinery and equipment			(141,072)	(115,201)
Furniture and fixtures			(38,604)	(19,355)
Computers			(5,700)	(19,340)
Other			(892)	(8,630)
			(224,083)	(213,563)
Plant and equipment — net(a)(b)			184,169	218,121
(a)	Included assets held for sale with a carrying value of	10,897 and	14,799 as of December 31, 2003 and 2002, respectively, related to owned facilities that were
	being actively marketed. These assets were written down in previous periods to their estimated fair values less costs to sell. The write downs were included in
	special charges. Nortel Networks S.A. expects to dispose of all of these facilities by mid-2005.
(b)	Included leased assets as required by SFAS No. 98 of	75,927 and	79,028 as of December 31, 2003 and 2002, respectively.

Goodwill:

The following table outlines goodwill by reportable segment:

		Wireless		Enterprise	Wireline	Optical
		Networks		Networks	Networks	Networks	Other	Total
Balance — net as of December 31, 2001 and 2002			–	–	–	–	–	–
Change:
Additions(a)				8,857	8,070	2,756		19,683
Foreign exchange			–	–	–	–	–	–
Balance — net as of December 31, 2003	€€	€€	–	8,857	8,070	2,756	–	19,683

(a)See note 9 for additional information.

During the year ended December 31, 2003, Nortel Networks S.A. performed its annual goodwill impairment test and concluded that there was no impairment.

Intangible assets — net:

		2003	2002
Other intangible assets — net(a)		8,929	3,454
(a)	Other intangible assets are being amortized over their estimated useful lives. Amortization expense is expected to be	1,020 for each of the next eight years
	commencing in 2004 and 769 thereafter.
Investment at cost — net:

				2003	2002
European Aeronautic Defense & Space Telecom S.A.S				–	15,871
Matra Nortel Communication Distribution S.A.S			€	–	305
Investment at cost — net	€			–	16,176
		205