In accordance with these agreements Nortel Networks S.A. recorded related party revenues of approximately 35,903, 3,000, and 28,963 in the years 2003, 2002, and 2001 respectively. No cost of revenues to related parties are directly linked to these transactions.
Nortel Networks France is acting as the representative of certain of its affiliates in certain transactions with a French based customer. The benefit of these transactions is not retained by Nortel Networks France and is transferred back to the affiliates having actually performed the transaction. No revenue is recognized by Nortel Networks France on these transactions. The amounts billed to Nortel Networks
France under these agreements were 15,365, 33,755 and 21,905 for 2003, 2002 and 2001, respectively.
percent (3.1 percent at December 31,€2003). Interest€is payable€at the end of each interest period, subject to Nortel Networks S.A. having positive net earnings and the interest payments not exceeding 40 percent of the positive net earnings. The amount outstanding under that loan as of December 31, 2003 and 2002 was 50,000 and 200.000, respectively. The loan is payable upon the discretion of Nortel
Royalties
Nortel Networks France pays royalties amounting to seven percent of its revenue to certain of its affiliates in remuneration for the right to market Nortel Networks products in the French market. The amounts billed to Nortel Networks France under these agreements were
6,527, 9,997 and 21,694 for 2003, 2002 and 2001, respectively.
Sale of investment
Through a series of complex transactions taking place from July 2003 to September 2003, Nortel Networks S.A. sold the interest it was holding in EADS Telecom to NNIF&H B.V. and EADS. As these transactions were part of a greater transaction between Nortel
Networks S.A.’s affiliates and EADS the resulting gain of | 43,070 has been recorded as paid in capital (see note 9). | € |
Financing transactions | € |
On December 31, 2002, Nortel Networks provided Nortel Networks S.A. with a subordinated loan in the aggregate amount of 200,000.
This loan is classified as a
This loan is classified as a
liquidation, is subordinated to the prior repayment of any of Nortel Networks S.A. existing or future secured and unsecured creditors.
Nortel Networks S.A. may repay the whole or any part of the outstanding amount of the loan subject to notifying Nortel Networks in
advance of its irrevocable decision to make the repayment. The loan bears interest at a rate per annum equal to Euribor rate plus one
Networks S.A. and has been classified as
On December 19, 2002, Nortel Networks S.A. provided Nortel Networks with a revolving loan in the amount of 200,000. This loan is | |
classified€as a | note receivable to a related party. The loan bears interest at a rate per annum equal to Euribor plus one percent. |
Interest is accrued and due unless an amount larger than the outstanding amount of advances is outstanding under the subordinated loan. The term of the loan is two year and can be accelerated at the request of Nortel Networks S.A. The amount outstanding under that loan as
of December 31, 2003 and 2002 was 48,573 and | 140,010 respectively. |
At December 31, 2001, Nortel Networks S.A. had a revolving note payable with an affiliated company in the amount of 106,048. This | |
payable was settled in full in 2002. | € |
On December 31, 2002, Nortel Networks provided Nortel Networks France with a subordinated loan in the aggregate amount of 20,000. | |
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