Reliant FORM 10-K Results of operations continuing operations, Customer financing arrangements

Customer financing arrangements

On December 15 and 16, 2004, we sold certain notes receivable and convertible notes receivable that had been received as a result of the restructuring of a customer financing arrangement for cash proceeds of $116. The net carrying amount of the notes receivable and convertible notes receivable was $56.

On December 23, 2004, a customer financing arrangement was restructured. The notes receivable that were restructured had a net carrying amount as of December 31, 2003 of $13, net of provisions for doubtful accounts of $147 ($55 of the provision is included in discontinued operations). We are currently assessing the value of the restructured notes receivable and expect that an increase in value from the net carrying amount has occurred.

Results of operations — continuing operations

Segment revenues

The following table summarizes our revenues for 2003, 2002 and 2001 by segment:

		For the years ended December 31,						2003 vs 2002			2002 vs 2001
		2003		2002		2001	$	Change	% Change	$	Change	% Change
Wireless Networks	$	4,389	$	4,161	$	5,699	$	228	5	$	(1,538)	(27)
Enterprise Networks		2,589		2,422		3,222		167	7		(800)	(25)
Wireline Networks		2,005		2,572		4,328		(567)	(22)		(1,756)	(41)
Optical Networks		1,179		1,820		5,050		(641)	(35)		(3,230)	(64)
Other (a)		31		33		601		(2)	(6)		(568)	(95)
Consolidated	$	10,193	$	11,008	$	18,900	$	(815)	(7)	$	(7,892)	(42)

“Other” represented miscellaneous business activities and corporate functions.

Geographic revenues

The following table summarizes our geographic revenues based on the location of the customer:

		For the years ended December 31,						2003 vs 2002			2002 vs 2001
		2003		2002		2001	$	Change	% Change	$	Change	% Change
United States	$	5,424	$	5,823	$	10,136	$	(399)	(7)	$	(4,313)	(43)
EMEA (a)		2,366		2,500		4,380		(134)	(5)		(1,880)	(43)
Canada		587		648		1,076		(61)	(9)		(428)	(40)
Asia Pacific		1,307		1,483		2,289		(176)	(12)		(806)	(35)
CALA (b)		509		554		1,019		(45)	(8)		(465)	(46)
Consolidated	$	10,193	$	11,008	$	18,900	$	(815)	(7)	$	(7,892)	(42)

(a)The Europe, Middle East and Africa region, or EMEA.

(b)The Caribbean and Latin America region, or CALA.

Consolidated revenues

The following chart summarizes our quarterly revenues during 2003 and 2002:

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