page 55 Bombardier Inc. Annual Report 2003-04 Bombardier Transportation Restructuring initiative Segmented revenues by geographic region  On March 16, 2004, the Board of Directors approved a proposed restructuring initiative  to reduce the cost structure in the Corporation’s transportation segment. This restructuring ini- tiative was launched as a result of significant plant manufacturing overcapacity.  As a result of an in-depth assessment of global industrial locations, which covered workload, operating efficiency, technical capability, prospects for future contracts and detailed economic evaluations, Bombardier proposes to reduce its global workforce by approximately 6,600 positions, 1,500 of which are contractual employees. In addition, seven production sites in five European countries have been identified for closure over the  next two years and the initial phase of a site improvement program will be launched at five other European locations to increase opera- tional efficiency by reducing inventory levels. Bombardier Transportation will also pursue a procurement integration initiative to increase synergies, reduce costs and better coordinate  materials procurement.  Bombardier Transportation’s restructuring initiative will result in restructuring charges  and net cash outflows expected to be as  follows for the fiscal years ended January 31: $^{(1)}$Includes lease termination costs and environmental costs, as well as other costs. $^{(1)}$Includes all maintenance, operations and service contracts, excluding those for heavy overhaul. $^{(2)}$Includes selling, general and administrative and research and development expenses. Analysis of results 2004 2005 2006 TOTAL Severance and other involuntary  termination costs $ 212 $105 $ 35 $ 352 Property, plant and equipment  write-downs 211 – – 211 Other (1) 34 110 70 214 Accounting charge $ 457 $215 $105 $ 777 Net cash outflows $ – $240 $326 $ 566 2004 2003 Segmented revenues Manufacturing $8,718 $8,629 Services (1) 868 793 9,586 9,422 Cost of sales 8,443 8,127 Operating expenses (2) 855 886 Depreciation and amortization 218 202 Interest income (34) (103) 9,482 9,112 EBT before special items 104 310 Special items (457) – EBT $( 353) $ 310 2004 2003 Europe $7,524 79% $6,724 71% North America 1,475 15% 2,252 24% Asia-Pacific  518 5% 372 4% Other 69 1% 74 1% $9,586 $9,422