page 67 Bombardier Inc. Annual Report 2003-04 In April 2003, the Corporation issued 370 mil- lion Class B Shares (Subordinate Voting) at a price of $3.25 per share, for total net proceeds of $1.2 billion. Deferred translation adjustment included  in shareholders’ equity was a debit amount of $236 million as at January 31, 2004, compared to a credit amount of $157 million at the end of the previous fiscal year. This variation results mainly from the strengthening of the Canadian dollar compared to the U.S. dollar and the  sterling pound in fiscal year 2004. Property, plant and equipment as at January 31, 2004 amounted to $4.6 billion, compared to $5.2 billion as at January 31, 2003. This decrease results mainly from the write-downs of property, plant and equipment, amounting  to $211 million, related to the restructuring ini- tiative in the transportation segment, disposals of property, plant and equipment for $147 mil- lion, as well as the weakening of the U.S. dollar compared to the Canadian dollar, which had an impact of approximately $130 million.  Goodwill amounted to $3.0 billion as at January 31, 2004, compared to $3.2 billion as at January 31, 2003. This decrease is mainly due to foreign exchange fluctuations. Consolidated assets for the manufacturing  segments amounted to $20.4 billion as at January 31, 2004, compared to $20.8 billion  as at January 31, 2003, for a decrease of  $356 million. This decrease results from the sale of the recreational products segment and a decrease in property, plant and equipment, partially offset by an increase in cash and cash equivalents and inventories.  Inventories are presented net of the related advances and progress billings on contracts and programs. However, advances and progress billings in excess of related costs, determined on a contract-by-contract basis, are reported  as liabilities. Gross inventories as at January 31, 2004 were $9.6 billion ($5.8 billion net of advances and progress billings), compared to $9.9 bil- lion ($5.3 billion net of advances and progress billings) as at January 31, 2003. Total advances and progress billings amounted to $7.4 billion as at January 31, 2004, compared to $8.4 bil- lion as at January 31, 2003, $3.6 billion and $3.8 billion of which, respectively, are shown as liabilities as at January 31, 2004 compared  to January 31, 2003. The reduction in gross inventories as at January 31, 2004 compared to January 31, 2003 is mainly due to lower  finished goods in the aerospace segment and the effect of the strengthening of the Canadian dollar compared to the U.S. dollar, which had a net impact of approximately $425 million, partially offset by higher inventories in the transportation segment, due to the timing of work performed on contracts. The decrease  in total advances as at January 31, 2004  compared to January 31, 2003 is mainly due  to a different mix of contracts in the transpor- tation segment. Long-term debt amounted to $2.8 billion as at January 31, 2004, compared to $3.1 billion as at January 31, 2003. This decrease is mainly due to the repayment of long-term debt of $192 million and the weakening of the U.S. dollar and the sterling pound compared to the Canadian dollar, which had an impact of approx- imately $180 million.  Accounts payable and accrued liabilities amounted to $8.7 billion as at January 31, 2004, compared to $8.5 billion as at January 31, 2003. This increase is mainly due to higher sales incentives and related provisions in  the aerospace segment, as well as severance  provisions recorded in connection with the restructuring initiative in the transportation segment, partially offset by the weakening of the U.S. dollar compared to the Canadian  dollar, which had an impact of approximately $200 million.  Other assets amounted to $1.0 billion as at January 31, 2004, compared to $758 million as at January 31, 2003. This increase is mainly due to increases in loans and investments related to financing structures in the aerospace segment. Bombardier decreased its investment in equity and subordinated debt in BC from $1.3 billion to $1.1 billion during fiscal year 2004.  Finance receivables before allowance for  credit losses amounted to $4.2 billion as at January 31, 2004, compared to $7.2 billion as at January 31, 2003. This decrease is mainly due to the continued reduction in the wind- down portfolios and a decrease in the inventory finance portfolio. It also reflects the impact of a stronger Canadian dollar compared to the U.S. dollar, which resulted in a reduction of approximately $590 million. Assets under operating leases amounted  to $626 million as at January 31, 2004, com- pared to $1.4 billion as at January 31, 2003. This decrease is mainly due to the continued reduction in the business aircraft portfolio, as well as a decrease in the commercial aircraft portfolio. It is also due to the strengthening of the Canadian dollar relative to the U.S. dollar, which had an impact of approximately $90 million. Bombardier’s cash flows used in operating activities amounted to $746 million for fiscal year 2004, compared to cash flows from oper- ating activities of $1.3 billion the previous fiscal year, for a change of $2.1 billion. This change results from cash flows from operating activi- ties before net changes in non-cash balances Liquidity and  capital resources Financial position Bombardier BC Cash flows Bombardier