Exhibit 99.1
TELUS INTERNATIONAL (CDA) INC. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2022 |
TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Income and Other Comprehensive Income (Loss)
(unaudited)
Three months | ||||||||||||||||||||
Periods ended March 31 (US$ millions except earnings per share) | Note | 2022 | 2021 | |||||||||||||||||
REVENUE | 3 | $ | 599 | $ | 505 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Salaries and benefits | 342 | 282 | ||||||||||||||||||
Goods and services purchased | 115 | 94 | ||||||||||||||||||
Share-based compensation | 4 | 7 | 26 | |||||||||||||||||
Acquisition, integration and other | 4 | 5 | ||||||||||||||||||
Depreciation | 10 | 29 | 27 | |||||||||||||||||
Amortization of intangible assets | 11 | 36 | 36 | |||||||||||||||||
533 | 470 | |||||||||||||||||||
OPERATING INCOME | 66 | 35 | ||||||||||||||||||
OTHER EXPENSES | ||||||||||||||||||||
Interest expense | 5 | 9 | 14 | |||||||||||||||||
Foreign exchange loss | — | 3 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 57 | 18 | ||||||||||||||||||
Income tax expense | 6 | 23 | 15 | |||||||||||||||||
NET INCOME | 34 | 3 | ||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
Items that may subsequently be reclassified to income | ||||||||||||||||||||
Change in unrealized fair value of derivatives designated as held-for-hedging | 19 | 21 | ||||||||||||||||||
Exchange differences arising from translation of foreign operations | (31) | (33) | ||||||||||||||||||
(12) | (12) | |||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 22 | $ | (9) | ||||||||||||||||
EARNINGS PER SHARE | 7 | |||||||||||||||||||
Basic | $ | 0.13 | $ | 0.01 | ||||||||||||||||
Diluted | $ | 0.13 | $ | 0.01 | ||||||||||||||||
TOTAL WEIGHTED AVERAGE SHARES OUTSTANDING (millions) | ||||||||||||||||||||
Basic | 7 | 266 | 257 | |||||||||||||||||
Diluted | 7 | 269 | 259 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Financial Position
(unaudited)
As at (US$ millions) | Note | March 31, 2022 | December 31, 2021 | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 161 | $ | 115 | ||||||||||||||||
Accounts receivable | 8 | 424 | 414 | |||||||||||||||||
Due from affiliated companies | 15(a) | 44 | 53 | |||||||||||||||||
Income and other taxes receivable | 1 | 6 | ||||||||||||||||||
Prepaid expenses | 52 | 36 | ||||||||||||||||||
Current derivative assets | 9 | 8 | 3 | |||||||||||||||||
690 | 627 | |||||||||||||||||||
Non-current assets | ||||||||||||||||||||
Property, plant and equipment, net | 10 | 397 | 405 | |||||||||||||||||
Intangible assets, net | 11 | 1,117 | 1,158 | |||||||||||||||||
Goodwill | 11 | 1,364 | 1,380 | |||||||||||||||||
Deferred income taxes | 18 | 23 | ||||||||||||||||||
Other long-term assets | 32 | 33 | ||||||||||||||||||
2,928 | 2,999 | |||||||||||||||||||
Total assets | $ | 3,618 | $ | 3,626 | ||||||||||||||||
LIABILITIES AND OWNERS’ EQUITY | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | 16(b) | $ | 345 | $ | 336 | |||||||||||||||
Due to affiliated companies | 15(a) | 80 | 71 | |||||||||||||||||
Income and other taxes payable | 76 | 67 | ||||||||||||||||||
Current maturities of long-term debt | 12 | 322 | 328 | |||||||||||||||||
Current portion of derivative liabilities | 9 | 4 | 5 | |||||||||||||||||
827 | 807 | |||||||||||||||||||
Non-current liabilities | ||||||||||||||||||||
Long-term debt | 12 | 775 | 820 | |||||||||||||||||
Derivative liabilities | 9 | 4 | 17 | |||||||||||||||||
Deferred income taxes | 298 | 305 | ||||||||||||||||||
Other long-term liabilities | 23 | 22 | ||||||||||||||||||
1,100 | 1,164 | |||||||||||||||||||
Total liabilities | 1,927 | 1,971 | ||||||||||||||||||
Owners’ equity | 1,691 | 1,655 | ||||||||||||||||||
Total liabilities and owners’ equity | $ | 3,618 | $ | 3,626 | ||||||||||||||||
Contingent liabilities | 14 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Changes in Owners’ Equity
(unaudited)
(millions) | Note | Number of shares | Share capital | Contributed surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total | |||||||||||||||||||||||||||||||||||||
Balance as at January 1, 2021 | 245 | $ | 989 | $ | — | $ | 33 | $ | 89 | $ | 1,111 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (12) | (12) | ||||||||||||||||||||||||||||||||||||||
Class A to E shares exchanged or redesignated | (245) | (994) | — | — | — | (994) | ||||||||||||||||||||||||||||||||||||||
Multiple Voting Shares redesignated from Class A to D shares | 236 | 884 | — | — | — | 884 | ||||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares redesignated from Class C to E shares | 9 | 110 | — | — | — | 110 | ||||||||||||||||||||||||||||||||||||||
Multiple Voting Shares converted to Subordinate Voting Shares | (22) | (81) | — | — | — | (81) | ||||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares converted from Multiple Voting Shares | 22 | 81 | — | — | — | 81 | ||||||||||||||||||||||||||||||||||||||
Subordinate Voting Shares issued in public offering | 21 | 525 | — | — | — | 525 | ||||||||||||||||||||||||||||||||||||||
Share issuance costs, net of taxes | — | (24) | — | — | — | (24) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | 4 | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||||||||
Balance as at March 31, 2021 | 266 | $ | 1,490 | $ | 2 | $ | 36 | $ | 77 | $ | 1,605 | |||||||||||||||||||||||||||||||||
Balance as at January 1, 2022 | 266 | $ | 1,490 | $ | 24 | $ | 107 | $ | 34 | $ | 1,655 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (12) | (12) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | 4 | — | 5 | 9 | — | — | 14 | |||||||||||||||||||||||||||||||||||||
Balance as at March 31, 2022 | 266 | 1,495 | 33 | 141 | 22 | 1,691 | ||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Condensed Interim Consolidated Statements of Cash Flows
(unaudited)
Three months | ||||||||||||||||||||
Periods ended March 31 (US$ millions) | Note | 2022 | 2021 | |||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net income | $ | 34 | $ | 3 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||
Depreciation and amortization | 10,11 | 65 | 63 | |||||||||||||||||
Interest expense | 5 | 9 | 14 | |||||||||||||||||
Income tax expense | 6 | 23 | 15 | |||||||||||||||||
Share-based compensation | 4 | 7 | 26 | |||||||||||||||||
Change in market value of derivatives and other | (1) | 29 | ||||||||||||||||||
Net change in non-cash operating working capital | 16(c) | 3 | (53) | |||||||||||||||||
Share-based compensation payments | 4 | (5) | (17) | |||||||||||||||||
Interest paid | (5) | (9) | ||||||||||||||||||
Income taxes paid, net | (6) | (35) | ||||||||||||||||||
Cash provided by operating activities | 124 | 36 | ||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Cash payments for capital assets | 16(c) | (21) | (14) | |||||||||||||||||
Cash used in investing activities | (21) | (14) | ||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Shares issued | 1 | 525 | ||||||||||||||||||
Share issuance costs | — | (32) | ||||||||||||||||||
Repayment of long-term debt | 16(d) | (56) | (547) | |||||||||||||||||
Cash used in financing activities | (55) | (54) | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (2) | (4) | ||||||||||||||||||
CASH POSITION | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 46 | (36) | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 115 | 153 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 161 | $ | 117 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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TELUS International (Cda) Inc.
Notes to Condensed Interim Consolidated Financial Statements
(unaudited)
TELUS International (Cda) Inc. (TELUS International) is a leading digital customer experience innovator that designs, builds and delivers next-generation solutions, including AI and content moderation, for global and disruptive brands. TELUS International was incorporated under the Business Corporations Act (British Columbia) on January 2, 2016, and is a subsidiary of TELUS Corporation. TELUS International maintains its registered office at 510 West Georgia Street, Vancouver, British Columbia. The terms we, us, our or ourselves are used to refer to TELUS International and, where the context of the narrative permits or requires, its subsidiaries. Additionally, the term TELUS Corporation is a reference to TELUS Corporation, and where the context of the narrative permits or requires, its subsidiaries, excluding TELUS International. | Notes to the condensed interim consolidated financial statements | Page | ||||||||||||
General application | ||||||||||||||
1. | Condensed interim consolidated financial statements | |||||||||||||
2. | Capital structure financial policies | |||||||||||||
Consolidated results of operations focused | ||||||||||||||
3. | Revenue | |||||||||||||
4. | Share-based compensation | |||||||||||||
5. | Interest expense | |||||||||||||
6. | Income taxes | |||||||||||||
7. | Earnings per share | |||||||||||||
Consolidated financial position focused | ||||||||||||||
8. | Accounts receivable | |||||||||||||
9. | Financial instruments | |||||||||||||
10. | Property, plant and equipment | |||||||||||||
11. | Intangible assets and goodwill | |||||||||||||
12. | Long-term debt | |||||||||||||
13. | Share capital | |||||||||||||
14. | Contingent liabilities | |||||||||||||
Other | ||||||||||||||
15. | Related party transactions | |||||||||||||
16. | Additional financial information | |||||||||||||
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1. Condensed interim consolidated financial statements
(a) Basis of presentation
The notes presented in our condensed interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our interim consolidated financial statements are referred to as condensed. Our financial results may vary from period to period during any fiscal year. The seasonality in our business, and consequently, our financial performance, mirrors that of our clients. Our revenues are typically higher in the third and fourth quarters than in other quarters.
These condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2021, and are expressed in United States dollars and follow the same accounting policies and methods of their application as set out in our audited consolidated financial statements for the year ended December 31, 2021, other than as described in the section “Change in presentation” below. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS-IASB). Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented.
These condensed interim consolidated financial statements for the three-month period ended March 31, 2022 were authorized by our Board of Directors for issue on May 6, 2022.
(b) Change in presentation
In our condensed interim consolidated statements of financial position, we have reclassified certain current and non-current liabilities and grouped these amounts in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, as they are not material to these condensed interim consolidated financial statements. All amounts presented for the comparative period has been reclassified to conform with current period presentation.
(c) Accounting policy development
Standards, interpretations and amendments to standards not yet effective and not yet applied
In February 2021, the International Accounting Standards Board issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, IFRS Practice Statement 2, Making Materiality Judgements and IAS 8, Accounting Polices, Changes in Accounting Estimates and Errors. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. The amendments will require the disclosure of material accounting policy information rather than disclosing significant accounting policies and clarify how to distinguish changes in accounting policies from changes in accounting estimates. We are currently assessing the impacts of the amended standards, but do not expect that our financial disclosure will be materially affected by the application of the amendments.
In May 2021, the International Accounting Standards Board issued targeted amendments to IAS 12, Income Taxes. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. With a view to reducing diversity in reporting, the amendments will clarify that companies are required to recognize deferred taxes on transactions where both assets and liabilities are recognized, such as with leases and asset retirement (decommissioning) obligations. Based upon our current facts and circumstances, we do not expect our financial performance or disclosure to be materially affected by the application of the amended standard.
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2. Capital structure financial policies
Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk levels.
In the management of capital and in its definition, we include owners’ equity (excluding accumulated other comprehensive income), long-term debt (including long-term credit facilities and any hedging assets or liabilities associated with our long-term debt, net of amounts recognized in accumulated other comprehensive income and excluding lease liabilities) and cash and cash equivalents. We manage capital by monitoring the financial covenants in our credit facility (Note 12).
We manage our capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our capital structure, we may issue new shares, issue new debt with different terms or characteristics, which may be used to replace existing debt, or pay down our debt balance with cash flows from operations.
3. Revenue
We earn revenue pursuant to contracts with our clients, who operate in various industry verticals. During the three months ended March 31, 2022, we revised our revenue by vertical disaggregation to include our top strategic and growth verticals, including Banking, Financial Services and Insurance vertical, and we have grouped our Healthcare vertical as part of Other. The following presents our earned revenue disaggregation by strategic industry vertical for the periods presented:
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Tech and Games | $ | 280 | $ | 224 | ||||||||||
Communications and Media | 139 | 129 | ||||||||||||
eCommerce and FinTech | 77 | 55 | ||||||||||||
Banking, Financial Services and Insurance | 35 | 21 | ||||||||||||
Travel and Hospitality | 17 | 14 | ||||||||||||
Other | 51 | 62 | ||||||||||||
$ | 599 | $ | 505 |
We serve our clients, who are primarily domiciled in North America, from multiple delivery locations across four geographic regions. In addition, our TIAI Data Solutions business has clients that are largely supported by crowdsourced contractors that are globally dispersed and not limited to the physical locations of our delivery centres. The following table presents our earned revenue disaggregated by geographic region, based on location of our delivery centre or where service was provided, for the following periods:
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Europe | $ | 234 | $ | 210 | ||||||||||
North America | 140 | 115 | ||||||||||||
Asia-Pacific | 141 | 104 | ||||||||||||
Central America | 84 | 76 | ||||||||||||
$ | 599 | $ | 505 |
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4. Share-based compensation
(a) Restricted share unit plan
Restricted share units
We have various restricted share unit award types, including equity-accounted restricted share units (RSUs) and performance restricted share units (PSUs), and liability-accounted restricted share units (Phantom RSUs) and performance restricted share units (Phantom PSUs). All restricted share units are nominally equal in value to one TELUS International subordinate voting share, and liability-accounted restricted share units are settled in cash. Beginning January 1, 2021, restricted share unit awards granted were equity-accounted. The following table presents a summary of the activity related to our restricted share units:
Three months | ||||||||||||||||||||
Number of units | Weighted average grant-date | |||||||||||||||||||
Period ended March 31, 2022 | Non-vested | Vested | fair value | |||||||||||||||||
Outstanding, January 1, 2022 | 1,850,807 | — | $ | 21.94 | ||||||||||||||||
Granted | 789,710 | — | 26.38 | |||||||||||||||||
Vested | (153,972) | 153,972 | 25.00 | |||||||||||||||||
Exercised1 | — | (153,972) | 25.00 | |||||||||||||||||
Forfeited | (143,016) | — | 14.22 | |||||||||||||||||
Outstanding, March 31, 2022 | 2,343,529 | — | $ | 23.71 |
1Exercised awards were equity-accounted and settled with subordinate voting shares issued from treasury.
During the three-month period ended March 31, 2022, we granted 560,083 RSUs which generally vest in four equal annual instalments, and 229,627 PSUs which vest in three years and are subject to TELUS International revenue and earnings per share performance growth targets. These RSUs and PSUs are eligible for dividend reinvestment units, if declared and paid by TELUS International, as such the fair value was determined to be equal to the market price of a subordinate voting share of TELUS International on the date of grant of $26.38.
As at March 31, 2022, the outstanding restricted share units were comprised of 1,405,494 RSUs, 408,321 PSUs, 280,872 Phantom RSUs, and 248,842 Phantom PSUs, and the carrying amount for the liability-accounted awards was $17 million (December 31, 2021 - $22 million).
Phantom TELUS Corporation restricted share units (Phantom TELUS Corporation RSU)
Each Phantom TELUS Corporation RSU is nominally equal in value to the market price of one TELUS Corporation common share. The Phantom TELUS Corporation RSUs are historic grants made to certain employees, and no new awards are expected to be made. The following table presents a summary of the activity related to Phantom TELUS Corporation RSUs:
Three months | ||||||||||||||||||||
Period ended March 31, 2022 | Number of units | Weighted average grant-date fair value | ||||||||||||||||||
Canadian $ denominated | Non-vested | Vested | ||||||||||||||||||
Outstanding, January 1, 2022 | 78,011 | — | $ | 24.20 | ||||||||||||||||
Dividends | 858 | — | 32.66 | |||||||||||||||||
Forfeited | (13,680) | — | 25.28 | |||||||||||||||||
Outstanding, March 31, 2022 | 65,189 | — | $ | 24.08 |
(b) Share option award plan
We have equity-accounted share option awards (Share Options), and liability-accounted share option awards (Phantom Share Options). Share Options grant the right to the employee recipient to purchase and receive a subordinate voting share of TELUS International for a pre-determined exercise price. Phantom Share Options grant the right to the employee recipient to receive
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cash equal to the intrinsic value of the share option award, determined as the difference between the market price of a subordinate voting share of TELUS International and the exercise price. Share option awards are generally exercisable for a period of ten years from the time of grant. Beginning January 1, 2021, share option awards granted were equity-accounted.
The following table presents a summary of the activity related to our share option awards:
U.S.$ denominated | ||||||||||||||||||||||||||||||||||||||
Number of share option award units | Weighted average exercise price | |||||||||||||||||||||||||||||||||||||
Period ended March 31, 2022 | Non-vested | Vested | ||||||||||||||||||||||||||||||||||||
Outstanding, January 1, 2022 | 1,084,185 | 2,096,582 | $ | 10.74 | ||||||||||||||||||||||||||||||||||
Forfeited | (152,133) | — | 6.74 | |||||||||||||||||||||||||||||||||||
Outstanding, March 31, 20221 | 932,052 | 2,096,582 | $ | 10.94 | ||||||||||||||||||||||||||||||||||
Exercisable, March 31, 2022 | — | 2,096,582 | $ | 7.45 |
1The exercise price for options outstanding as at March 31, 2022 ranged from $4.87 to $8.95 for 2,532,534 options with a weighted-average remaining contractual life of 5.3 years, and $25.00 for 496,100 options with a weighted-average remaining contractual life of 8.9 years.
5. Interest expense
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Interest expense | ||||||||||||||
Interest on long-term debt, excluding lease liabilities | $ | 5 | $ | 9 | ||||||||||
Interest on lease liabilities | 3 | 4 | ||||||||||||
Amortization of financing fees and other | 1 | 1 | ||||||||||||
$ | 9 | $ | 14 |
6. Income taxes
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Current income tax expense | ||||||||||||||
For current reporting period | $ | 22 | $ | 21 | ||||||||||
22 | 21 | |||||||||||||
Deferred income tax expense (recovery) | ||||||||||||||
Arising from the origination and reversal of temporary differences | 1 | (6) | ||||||||||||
1 | (6) | |||||||||||||
$ | 23 | $ | 15 |
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Our income tax expense and effective income tax rate differs from that calculated by applying the applicable statutory rates for the following reasons:
Three months | ||||||||||||||||||||||||||
Periods ended March 31 (millions except percentages) | 2022 | 2021 | ||||||||||||||||||||||||
Income taxes computed at applicable statutory income tax rates | $ | 13 | 22.4 | % | $ | 4 | 21.5 | % | ||||||||||||||||||
Non-deductible items | 3 | 6 | ||||||||||||||||||||||||
Withholding and other taxes | 7 | 4 | ||||||||||||||||||||||||
Losses not recognized | 2 | 2 | ||||||||||||||||||||||||
Foreign tax differential | (2) | — | ||||||||||||||||||||||||
Other | — | (1) | ||||||||||||||||||||||||
Income tax expense | $ | 23 | 40.4 | % | $ | 15 | 81.8 | % |
7. Earnings per share
(a)Basic earnings per share
Basic earnings per share is calculated by dividing net income by the total weighted average number of equity shares outstanding during the period.
Three months | ||||||||||||||
Periods ended March 31 (millions except earnings per share) | 2022 | 2021 | ||||||||||||
Net income for the period | $ | 34 | $ | 3 | ||||||||||
Weighted average number of equity shares outstanding | 266 | 257 | ||||||||||||
Basic earnings per share | $ | 0.13 | $ | 0.01 |
(b)Diluted earnings per share
Diluted earnings per share is calculated to give effect to the potential dilutive effect that could occur if additional equity shares were assumed to be issued under securities or instruments that may entitle their holders to obtain equity shares in the future, such as share option awards and restricted share units. The number of additional shares for inclusion in the diluted earnings per share calculation was determined using the treasury stock method.
Three months | ||||||||||||||
Periods ended March 31 (millions except earnings per share) | 2022 | 2021 | ||||||||||||
Net income for the period | $ | 34 | $ | 3 | ||||||||||
Weighted average number of equity shares outstanding | 266 | 257 | ||||||||||||
Dilutive effect of share-based compensation | 3 | 2 | ||||||||||||
Weighted average number of diluted equity shares outstanding | 269 | 259 | ||||||||||||
Diluted earnings per share | $ | 0.13 | $ | 0.01 |
During the three months ended March 31, 2022, 328,407 equity-accounted share option awards were anti-dilutive and excluded from the calculation of diluted earnings per share (March 31, 2021 - $nil awards excluded).
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8. Accounts receivable
(a)Accounts receivable
As at (millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Accounts receivable – billed | $ | 192 | $ | 213 | ||||||||||
Accounts receivable – unbilled | 193 | 175 | ||||||||||||
Other receivables | 40 | 28 | ||||||||||||
425 | 416 | |||||||||||||
Allowance for doubtful accounts | (1) | (2) | ||||||||||||
Total | $ | 424 | $ | 414 |
The following table presents an analysis of the age of customer accounts receivable. Any late payment charges are levied at a negotiated rate on outstanding non-current customer account balances.
As at (millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Customer accounts receivable – billed, net of allowance for doubtful accounts | ||||||||||||||
Less than 30 days past billing date | $ | 139 | $ | 162 | ||||||||||
30-60 days past billing date | 35 | 39 | ||||||||||||
61-90 days past billing date | 10 | 3 | ||||||||||||
More than 90 days past billing date | 7 | 7 | ||||||||||||
191 | 211 | |||||||||||||
Accounts receivable – unbilled | 193 | 175 | ||||||||||||
Other receivables | 40 | 28 | ||||||||||||
Total | $ | 424 | $ | 414 |
We maintain allowances for lifetime expected credit losses related to doubtful accounts. Current economic conditions (including forward-looking macroeconomic data), historical information (including credit agency reports, if available), reasons for the accounts being past due and line of business from which the customer accounts receivable arose are all considered when determining whether to make allowances for past-due accounts. The same factors are considered when determining whether to write off amounts charged to the allowance for doubtful accounts against the customer accounts receivable. The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable over a specific balance threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable balances are written off directly to bad debt expense.
The following table presents a summary of the activity related to our allowance for doubtful accounts:
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Balance, beginning of period | $ | 2 | $ | 5 | ||||||||||
Write-off | (1) | — | ||||||||||||
Balance, end of period | $ | 1 | $ | 5 |
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9. Financial instruments
General
The carrying values of cash and cash equivalents, accounts receivable, accounts payable and certain provisions approximate their fair values due to the immediate or short-term maturity of these financial instruments. The fair values are determined directly by reference to quoted market prices in active markets.
The fair values of the derivative financial instruments we use to manage our exposure to currency risks are estimated based upon quoted market prices in active markets for the same or similar financial instruments or on the current rates offered to us for financial instruments of the same maturity, as well as discounted future cash flows determined using current rates for similar financial instruments subject to similar risks and maturities (such fair value estimates being largely based on the European euro: US$ and Philippine peso: US$ forward exchange rates as at the statement of financial position dates).
Derivative
The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are as set out in the following table; all such items use significant other observable inputs (Level 2) for measuring fair value at the reporting date.
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
As at (millions) | Designation | Maximum maturity date | Notional amount | Fair value and carrying value | Price or rate | Maximum maturity date | Notional amount | Fair value and carrying value | Price or rate | |||||||||||||||||||||||||||||||||||||||||||||||
Current assets1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives used to manage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Indian rupee denominated purchases | HFT2 | 2022 | $ | 4 | $ | — | USD:1.00 INR:76.79 | 2022 | $ | 10 | $ | — | USD:1.00 INR:76.21 | |||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Philippine peso denominated purchases | HFH3 | 2023 | $ | 23 | $ | — | USD:1.00 PHP:52.31 | — | $ | — | $ | — | — | |||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Euro business acquisition | HFH3 | 2023 | $ | 21 | $ | 8 | USD:1.00 EUR:0.86 | 2022 | $ | 21 | $ | 3 | USD:1.00 EUR:0.86 | |||||||||||||||||||||||||||||||||||||||||||
Current liabilities1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives used to manage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Indian rupee denominated purchases | HFT2 | 2022 | $ | 2 | $ | — | USD:1.00 INR:76.45 | 2022 | $ | 2 | $ | — | USD:1.00 INR:74.99 | |||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Philippine peso denominated purchases | HFH3 | 2023 | $ | 91 | $ | 3 | USD:1.00 PHP:49.39 | 2022 | $ | 92 | $ | 3 | USD:1.00 PHP:50.1 | |||||||||||||||||||||||||||||||||||||||||||
Interest rate risk associated with non-fixed rate credit facility amounts drawn | HFH3 | 2022 | $ | 93 | $ | 1 | 2.64 | % | 2022 | $ | 95 | $ | 2 | 2.64 | % | |||||||||||||||||||||||||||||||||||||||||
Non-current liabilities1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives used to manage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency risks arising from Euro business acquisition | HFT2 | 2025 | $ | 357 | $ | 4 | USD:1.00 EUR:0.86 | 2025 | $ | 362 | $ | 17 | USD:1.00 EUR:0.86 | |||||||||||||||||||||||||||||||||||||||||||
1Notional amounts of derivative financial assets and liabilities are not set off.
2Foreign currency hedges are designated as held for trading (HFT) upon initial recognition; hedge accounting is not applied.
3Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.
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10. Property, plant and equipment
Owned assets | Right-of-use lease assets | |||||||||||||||||||||||||||||||||||||||||||
(millions) | Computer hardware and network assets | Buildings and leasehold improvements | Furniture and equipment | Assets under construction | Total | Buildings | Total | |||||||||||||||||||||||||||||||||||||
At cost | ||||||||||||||||||||||||||||||||||||||||||||
As at January 1, 2022 | $ | 48 | $ | 119 | $ | 231 | $ | 26 | $ | 424 | $ | 317 | $ | 741 | ||||||||||||||||||||||||||||||
Additions | 1 | 1 | 5 | 13 | 20 | 3 | 23 | |||||||||||||||||||||||||||||||||||||
Dispositions, retirements and other | (1) | (4) | (3) | — | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||
Transfers | 1 | 5 | 6 | (12) | — | — | — | |||||||||||||||||||||||||||||||||||||
Foreign exchange | — | (1) | (1) | — | (2) | (5) | (7) | |||||||||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 49 | $ | 120 | $ | 238 | $ | 27 | $ | 434 | $ | 315 | $ | 749 | ||||||||||||||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||||||||||||||||||||||
As at January 1, 2022 | $ | 26 | $ | 45 | $ | 138 | $ | — | $ | 209 | $ | 127 | $ | 336 | ||||||||||||||||||||||||||||||
Depreciation | 2 | 3 | 10 | — | 15 | 14 | 29 | |||||||||||||||||||||||||||||||||||||
Dispositions, retirements and other | — | (4) | (3) | — | (7) | — | (7) | |||||||||||||||||||||||||||||||||||||
Foreign exchange | — | (1) | (1) | — | (2) | (4) | (6) | |||||||||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 28 | $ | 43 | $ | 144 | $ | — | $ | 215 | $ | 137 | $ | 352 | ||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2021 | $ | 22 | $ | 74 | $ | 93 | $ | 26 | $ | 215 | $ | 190 | $ | 405 | ||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 21 | $ | 77 | $ | 94 | $ | 27 | $ | 219 | $ | 178 | $ | 397 |
11. Intangible assets and goodwill
(millions) | Customer relationships | Crowdsource assets | Software | Brand and other | Total intangible assets | Goodwill | Total intangible assets and goodwill | |||||||||||||||||||||||||||||||||||||
At cost | ||||||||||||||||||||||||||||||||||||||||||||
As at January 1, 2022 | $ | 1,182 | $ | 120 | $ | 57 | $ | 37 | $ | 1,396 | $ | 1,380 | $ | 2,776 | ||||||||||||||||||||||||||||||
Additions | — | — | 5 | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||
Dispositions, retirements and other | — | — | (8) | — | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||
Foreign exchange | (12) | — | — | (1) | (13) | (16) | (29) | |||||||||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 1,170 | $ | 120 | $ | 54 | $ | 36 | $ | 1,380 | $ | 1,364 | $ | 2,744 | ||||||||||||||||||||||||||||||
Accumulated amortization | ||||||||||||||||||||||||||||||||||||||||||||
As at January 1, 2022 | $ | 173 | $ | 15 | $ | 31 | $ | 19 | $ | 238 | $ | — | $ | 238 | ||||||||||||||||||||||||||||||
Amortization | 24 | 4 | 5 | 3 | 36 | — | 36 | |||||||||||||||||||||||||||||||||||||
Dispositions, retirements and other | — | — | (8) | — | (8) | — | (8) | |||||||||||||||||||||||||||||||||||||
Foreign exchange | (2) | — | — | (1) | (3) | — | (3) | |||||||||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 195 | $ | 19 | $ | 28 | $ | 21 | $ | 263 | $ | — | $ | 263 | ||||||||||||||||||||||||||||||
Net book value | ||||||||||||||||||||||||||||||||||||||||||||
As at December 31, 2021 | $ | 1,009 | $ | 105 | $ | 26 | $ | 18 | $ | 1,158 | $ | 1,380 | $ | 2,538 | ||||||||||||||||||||||||||||||
As at March 31, 2022 | $ | 975 | $ | 101 | $ | 26 | $ | 15 | $ | 1,117 | $ | 1,364 | $ | 2,481 |
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12. Long-term debt
As at (millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Credit facility | $ | 901 | $ | 941 | ||||||||||
Deferred debt transaction costs | (8) | (8) | ||||||||||||
893 | 933 | |||||||||||||
Lease liabilities | 204 | 215 | ||||||||||||
Long-term debt | $ | 1,097 | $ | 1,148 | ||||||||||
Current | $ | 322 | $ | 328 | ||||||||||
Non-current | 775 | 820 | ||||||||||||
Long-term debt | $ | 1,097 | $ | 1,148 |
(a) Credit facility
As at March 31, 2022, we had a credit facility secured by our assets with a syndicate of financial institutions, expiring on January 28, 2025. The credit facility is comprised of $850 million revolving components, and amortizing $797 million term loan components (comprised of term loans with $563 million and $234 million outstanding balances). The outstanding revolving and term loan components had an effective interest rate of 2.16% as at March 31, 2022 (December 31, 2021 - 1.87%).
As at (millions) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
Revolving component | Term loan component1 | Total | Revolving component | Term loan component1 | Total | |||||||||||||||||||||||||||||||||
Available | $ | 746 | N/A | $ | 746 | $ | 716 | N/A | $ | 716 | ||||||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||||||||||||||||
Due to TELUS Corporation | $ | 13 | $ | 70 | $ | 83 | $ | 16 | $ | 71 | $ | 87 | ||||||||||||||||||||||||||
Due to Other | 91 | 727 | 818 | 118 | 736 | 854 | ||||||||||||||||||||||||||||||||
$ | 104 | $ | 797 | $ | 901 | $ | 134 | $ | 807 | $ | 941 | |||||||||||||||||||||||||||
Total | $ | 850 | $ | 797 | $ | 1,647 | $ | 850 | $ | 807 | $ | 1,657 |
1 We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on the debt to a fixed rate of 2.64% plus applicable margins.
The credit facility bears interest at prime rate, U.S. dollar base rate, a bankers’ acceptance rate or London interbank offered rate (LIBOR) (all such terms as used or defined in the credit facility), plus applicable margins. The credit facility contains customary representations, warranties and covenants, including two financial quarter-end ratio tests. Net debt to EBITDA ratio must not exceed 4.50:1.00 for each quarter in fiscal 2022 and 3.75:1.00 subsequently. The EBITDA to debt service (interest and scheduled principal repayment) ratio must not be less than 1.50:1.00, all as defined in the credit facility. If an acquisition with an aggregate cash consideration in excess of $60 million occurs in any twelve-month period, the maximum permitted net debt to EBITDA ratio per credit agreement may be increased to 4.50:1.00 and shall return to 3.75:1.00 after eight fiscal quarters.
The term loan component of our credit facility are subject to an amortization schedule requiring that 1.25% of the principal advanced be repaid each quarter of the term of the agreement, with the balance due at maturity. The $234 million term loan matures on December 22, 2022 and the $563 million term loan matures on January 28, 2025.
As at March 31, 2022, we were in compliance with all financial covenants, financial ratios and all of the terms and conditions of our long-term debt agreements.
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(b) Long-term debt maturities
Anticipated requirements to meet long-term debt repayments, calculated upon such long-term debts owing as at March 31, 2022, are as follows:
Composite long-term debt denominated in | U.S dollars | European euros | Other currencies | |||||||||||||||||||||||||||||||||||
For each fiscal year ending December 31(millions) | Long-term debt, excluding leases | Leases | Total | Leases | Leases | Total | ||||||||||||||||||||||||||||||||
2022 (remainder of the year) | 257 | 15 | 272 | 9 | 14 | 295 | ||||||||||||||||||||||||||||||||
2023 | 30 | 21 | 51 | 10 | 18 | 79 | ||||||||||||||||||||||||||||||||
2024 | 30 | 10 | 40 | 8 | 15 | 63 | ||||||||||||||||||||||||||||||||
2025 | 584 | 9 | 593 | 6 | 9 | 608 | ||||||||||||||||||||||||||||||||
2026 and thereafter | — | 15 | 15 | 31 | 14 | 60 | ||||||||||||||||||||||||||||||||
Future cash outflows in respect of composite long-term debt principal repayments | 901 | 70 | 971 | 64 | 70 | 1,105 | ||||||||||||||||||||||||||||||||
Future cash outflows in respect of associated interest and like carrying costs1 | 43 | 13 | 56 | 11 | 13 | 80 | ||||||||||||||||||||||||||||||||
Undiscounted contractual maturities | $ | 944 | $ | 83 | $ | 1,027 | $ | 75 | $ | 83 | $ | 1,185 |
1 Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at March 31, 2022.
13. Share capital
Our authorized and issued share capital as at March 31, 2022 is as follows:
Authorized | Issued | |||||||||||||||||||||||||
As at (millions) | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Preferred Shares | unlimited | unlimited | — | — | ||||||||||||||||||||||
Equity Shares | ||||||||||||||||||||||||||
Multiple Voting Shares | unlimited | unlimited | 200 | 200 | ||||||||||||||||||||||
Subordinate Voting Shares | unlimited | unlimited | 66 | 66 |
As at March 31, 2022, there were 18 million authorized but unissued subordinate voting shares reserved for issuance under
our share-based compensation plans, and 5 million authorized but unissued subordinate voting shares reserved for issuance
under our employee share purchase plan.
14. Contingent liabilities
(a)Indemnification obligations
In the normal course of operations, we provide indemnification in conjunction with certain transactions. The terms of these indemnification obligations range in duration. These indemnifications would require us to compensate the indemnified parties for costs incurred as a result of failure to comply with contractual obligations or litigation claims or statutory sanctions or damages that may be suffered by an indemnified party. In some cases, there is no maximum limit on these indemnification obligations. The overall maximum amount of an indemnification obligation will depend on future events and conditions and therefore cannot be reasonably estimated. Where appropriate, an indemnification obligation is recorded as a liability. Other than obligations recorded as liabilities at the time of such transactions, historically we have not made significant payments under these indemnifications. As at March 31, 2022, we had no liability recorded in respect of indemnification obligations (December 31, 2021 - $nil).
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(b)Claims and lawsuits
We are party to various legal proceedings and claims that arise in the ordinary course of business. The ultimate outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, or if any outcome becomes more likely than not and estimable, our results of operations and financial condition could be adversely affected.
15. Related party transactions
(a)Transactions with TELUS Corporation
General
TELUS Corporation produces consolidated financial statements available for public use and is the ultimate parent and controlling party of TELUS International.
Recurring transactions
TELUS Corporation and its subsidiaries receive customer care, integrated business process outsourcing and information technology outsourcing services from us, and provide services (including people, network, finance, communications, and regulatory) to us. We also participate in defined benefit pension plans that share risks between TELUS Corporation and its subsidiaries.
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Three-month periods ended March 31 (millions) | TELUS Corporation (parent) | Subsidiaries of TELUS Corporation | Total | TELUS Corporation (parent) | Subsidiaries of TELUS Corporation | Total | |||||||||||||||||||||||||||||
Transactions with TELUS Corporation and subsidiaries | |||||||||||||||||||||||||||||||||||
Revenues from services provided to | $ | — | $ | 93 | $ | 93 | $ | — | $ | 82 | $ | 82 | |||||||||||||||||||||||
Goods and services purchased from | — | (10) | (10) | — | (10) | (10) | |||||||||||||||||||||||||||||
— | 83 | 83 | — | 72 | 72 | ||||||||||||||||||||||||||||||
Receipts from related parties | — | (112) | (112) | — | (82) | (82) | |||||||||||||||||||||||||||||
Payments to related parties | — | — | — | 5 | — | 5 | |||||||||||||||||||||||||||||
Payments (made) collected by related parties on our behalf1 | (19) | 30 | 11 | (24) | 21 | (3) | |||||||||||||||||||||||||||||
Change in balance | (19) | 1 | (18) | (19) | 11 | (8) | |||||||||||||||||||||||||||||
Accounts with TELUS Corporation and subsidiaries | |||||||||||||||||||||||||||||||||||
Balance, beginning of period | (44) | 26 | (18) | 27 | (9) | 18 | |||||||||||||||||||||||||||||
Balance, end of period | $ | (63) | $ | 27 | $ | (36) | $ | 8 | $ | 2 | $ | 10 | |||||||||||||||||||||||
Accounts with TELUS Corporation and subsidiaries | |||||||||||||||||||||||||||||||||||
Due from affiliated companies | $ | — | $ | 44 | $ | 44 | $ | 8 | $ | 41 | $ | 49 | |||||||||||||||||||||||
Due to affiliated companies | (63) | (17) | (80) | — | (39) | (39) | |||||||||||||||||||||||||||||
$ | (63) | 27 | (36) | $ | 8 | $ | 2 | $ | 10 |
1Certain key management personnel at TELUS International participate in the Pension Plan for Management and Professional Employees of TELUS Corporation, a defined benefit pension plan. During the three-month period ended March 31, 2022, TELUS Corporation incurred $2 million (March 31, 2021 - $nil) for these individuals, which are excluded from the table above.
In the condensed interim consolidated statement of financial position, amounts due from affiliates and amounts due to affiliates are generally due 30 days from billing and are cash-settled on a gross basis.
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(b)Transactions with Baring Private Equity Asia
General
Baring Private Equity Asia exercises significant influence over TELUS International.
Recurring transactions
As at, and during the three-month periods ended March 31, 2022 and 2021, there were no balances due to or due from, or recurring transactions with, Baring Private Equity Asia (December 31, 2021 – $nil).
(c)Transactions with key management personnel
Our key management personnel have the authority and responsibility for overseeing, planning, directing and controlling our activities and consist of our Board of Directors and our Executive Leadership Team.
During the three-month period ended March 31, 2022, share-based compensation expense of $6 million was attributable to our key management personnel. We granted 292,427 RSUs and 229,627 PSUs to our key management personnel, with a grant-date fair value of $8 million and $6 million, respectively.
16. Additional financial information
(a)Statements of income and other comprehensive income
We have three customers which account for more than 10% of our operating revenues for the three-month periods ended March 31, 2022, and 2021. Our largest client for the three-month period ended March 31, 2022 was a leading social media company, accounting for approximately 17.5% and 15.7% of our revenue during the three months ended March 31, 2022 and 2021, respectively. TELUS Corporation, our controlling shareholder, was our second largest client for the three months ended March 31, 2022, accounting for approximately 15.6% of our revenue and was our largest client for the three months ended March 31, 2021, accounting for 16.2% of our revenue. Our third largest client, Google, accounted for approximately 11.3% and 11.8% of our revenue for the three months ended March 31, 2022 and 2021, respectively.
(b)Statements of financial position
As at (millions) | March 31, 2022 | December 31, 2021 | ||||||||||||
Other long-term assets | ||||||||||||||
Prepaid lease deposits and other | $ | 25 | $ | 26 | ||||||||||
Other | 7 | 7 | ||||||||||||
$ | 32 | $ | 33 | |||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Trade accounts payable | $ | 55 | $ | 79 | ||||||||||
Accrued liabilities | 126 | 75 | ||||||||||||
Payroll and other employee-related liabilities | 140 | 144 | ||||||||||||
Share-based compensation liability | 17 | 22 | ||||||||||||
Other | 7 | 16 | ||||||||||||
$ | 345 | $ | 336 |
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(c)Statements of cash flows—operating activities and investing activities
Three months | ||||||||||||||
Periods ended March 31 (millions) | 2022 | 2021 | ||||||||||||
Net change in non-cash operating working capital | ||||||||||||||
Accounts receivable | $ | (13) | $ | (43) | ||||||||||
Due to and from affiliated companies, net | 18 | 8 | ||||||||||||
Prepaid expenses | (16) | (17) | ||||||||||||
Other long-term assets | 1 | 9 | ||||||||||||
Accounts payable and accrued liabilities | 17 | 11 | ||||||||||||
Income and other taxes receivable and payable, net | (5) | (8) | ||||||||||||
Other long-term liabilities | 1 | (13) | ||||||||||||
$ | 3 | $ | (53) | |||||||||||
Cash payments for capital assets | ||||||||||||||
Capital asset additions | ||||||||||||||
Capital expenditures | ||||||||||||||
Property, plant and equipment, excluding right-of-use assets | $ | (20) | $ | (17) | ||||||||||
Intangible assets | (5) | (1) | ||||||||||||
(25) | (18) | |||||||||||||
Change in accrued payables related to the purchase of capital assets | 4 | 4 | ||||||||||||
$ | (21) | $ | (14) | |||||||||||
(d)Changes in liabilities arising from financing activities
Statements of cash flows | Non-cash changes | |||||||||||||||||||||||||||||||||||||
Three-month period ended March 31, 2022 (millions) | Beginning of Period | Issued or received | Redemptions, repayments or payments | Foreign exchange movement | Other | End of period | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||||||||
Credit facility | $ | 941 | $ | — | $ | (40) | $ | — | $ | — | $ | 901 | ||||||||||||||||||||||||||
Lease liabilities | 215 | — | (16) | (1) | 6 | 204 | ||||||||||||||||||||||||||||||||
Deferred debt transaction costs | (8) | — | — | — | — | (8) | ||||||||||||||||||||||||||||||||
$ | 1,148 | $ | — | $ | (56) | $ | (1) | $ | 6 | $ | 1,097 | |||||||||||||||||||||||||||
Statements of cash flows | Non-cash changes | |||||||||||||||||||||||||||||||||||||
Three-month period ended March 31, 2021 (millions) | Beginning of Period | Issued or received | Redemptions, repayments or payments | Foreign exchange movement | Other | End of period | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||||||||
Credit facility | $ | 1,568 | — | $ | (530) | — | — | $ | 1,038 | |||||||||||||||||||||||||||||
Lease liabilities | 209 | — | (17) | (2) | 13 | 203 | ||||||||||||||||||||||||||||||||
Deferred debt transaction costs | (11) | — | — | — | 1 | (10) | ||||||||||||||||||||||||||||||||
$ | 1,766 | — | $ | (547) | (2) | 14 | $ | 1,231 |
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