Reliant FORM 10-K manual First, second and third quarters, Reclassifications, Dis operations

The adjustment to income tax benefit, substantially all as a result of the Second Restatement adjustments, was an increase of $15 and a decrease of $401 for the years ended December 31, 2002 and 2001, respectively. The adjustment to minority interests as a result of the Second Restatement adjustments was an increase of $26 and a decrease of $12 for the years ended December 31, 2002 and 2001, respectively.

Reclassifications

As a result of the restatement process, various presentation inconsistencies were identified. Adjustments were made to appropriately reflect certain items in the statement of operations. The reclassifications were made for royalty expense, gain (loss) on sale of businesses and assets, minority interests — net of tax (now reported separately), and other items including certain functional spending and specific expenses.

Discontinued operations

As a result of the restatement process, the initial provision for loss on disposal of the access solutions discontinued operations recorded in June 2001, and the subsequent activity during 2001 through 2004 were re-examined. We concluded that the net loss on disposal of operations recognized in the second quarter of 2001 was overstated by $738, of which $520 comprised items that should have been charged to continuing operations. In addition, other adjustments were necessary to correct certain items that were either initially recorded incorrectly, or not properly released or adjusted for changes in estimates in the appropriate periods subsequent to the second quarter of 2001. The net impact of all of these changes on net loss from discontinued operations — net of tax was an increase of $121 and a decrease of $529 for the years ended December 31, 2002 and 2001, respectively, and an increase to net loss of $121 and $7 for the years ended December 31, 2002 and 2001, respectively.

First, second and third quarters of 2003

The following tables present the impact of the Second Restatement adjustments on our previously reported consolidated statements of operations data for the first, second and third quarters of 2003 (the fourth quarter of 2003 had not been previously reported). The Second Restatement adjustments are described in the paragraphs following the tables below.

Consolidated Statement of Operations data for the three months ended March 31, 2003

	As previously
		reported	Adjustments		As restated
Revenues	$	2,377	$	(79)	$	2,298
Gross profit		1,044		(149)		895
Operating earnings (loss)		(133)		(120)		(253)
Earnings (loss) from continuing operations before income taxes, minority interests and equity in net loss of associated companies		(182)		(31)		(213)
Net earnings (loss) from continuing operations		(171)		(63)		(234)
Net earnings (loss) from discontinued operations — net of tax		190		(68)		122
Net earnings (loss)		11		(135)		(124)
Basic and diluted earnings (loss) per common share
— from continuing operations	$	(0.04)	$	(0.02)	$	(0.06)
— from discontinued operations		0.04		(0.01)		0.03
Basic and diluted earnings (loss) per common share	$	0.00	$	(0.03)	$	(0.03)

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