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## 7 PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment were as follows as at January 31: 

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Included in the above are assets under construction and development amounting to $210 million and $634 million, respectively as at January 31, 2004 and 2003. Interest capitalized to assets under construction and development amounted to $18 million and $35 million, respectively, for the years ended January 31, 2004 and 2003. 

## 8 GOODWILL 

Goodwill is related to the DaimlerChrysler Rail Systems GmbH (Adtranz) acquisition. The change in the carrying amount of goodwill relates mainly to foreign exchange fluctuations. 

## 9 TRANSACTIONS WITH RELATED PARTIES 

In the ordinary course of business, BC purchases receivables from BRP, a company with common significant shareholders with Bombardier Inc., from which it earns financing revenues. In addition, BC also earns financing revenues related to sales incentive programs in connection with retailer financing provided by BC. These transactions are measured at exchange amounts which approximate fair value. 

Total transactions with BRP were as follows during the period between December 19, 2003 and January 31, 2004: 

<img src='content_image/108284.jpg'>

BRP and BC have entered into a retail floorplan inventory financing agreement for retailers of BRP products and a receivables financing agreement. 

The inventory financing agreement is for a maximum amount of $750 million US ($995 million) for a renewable period of five years. Under the agreement, BC acts as the exclusive provider of floorplan financing to retailers of BRP-manufactured products (excluding outboard engine products). During the term of the agreement, BC has agreed not to provide retailer floorplan financing related to products of direct competitors of BRP (excluding outboard engine products). 

The receivable financing agreement is for a maximum of $115 million US ($153 million) and expires in June 2005. BC funds receivables subject to certain eligibility criteria for BRP’s U.S. and European subsidiaries. Funding occurs in U.S. dollars and currency risk is retained by BRP. 

