Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Entity Registrant Name | TELUS Corporation |
Entity Central Index Key | 0000868675 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
condensed interim consolidated
condensed interim consolidated statements of income and other comprehensive income - CAD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
OPERATING REVENUES | |||||
Service | $ 3,250 | $ 3,086 | $ 6,495 | $ 6,106 | |
Equipment | 406 | 501 | 824 | 970 | |
Revenues arising from contracts with customers | 3,656 | 3,587 | 7,319 | 7,076 | |
Other operating income | 72 | 10 | 103 | 27 | |
Total | 3,728 | 3,597 | 7,422 | 7,103 | |
OPERATING EXPENSES | |||||
Goods and services purchased | 1,458 | 1,466 | 2,870 | 2,887 | |
Employee benefits expense | 911 | 758 | 1,784 | 1,464 | |
Depreciation | 505 | 470 | 1,028 | 940 | |
Amortization of intangible assets | 220 | 163 | 422 | 310 | |
Total | 3,094 | 2,857 | 6,104 | 5,601 | |
OPERATING INCOME | 634 | 740 | 1,318 | 1,502 | |
Financing costs | 202 | 189 | 394 | 357 | |
Income before income taxes | 432 | 551 | 924 | 1,145 | |
Income taxes | 117 | 31 | 256 | 188 | |
NET INCOME | 315 | 520 | 668 | 957 | |
Items that may subsequently be reclassified to income | |||||
Change in unrealized fair value of derivatives designated as cash flow hedges | (97) | 10 | 125 | (39) | |
Foreign currency translation adjustment arising from translating financial statements of foreign operations | (10) | 11 | 42 | 17 | |
Total items that may subsequently be reclassified to income | (107) | 21 | 167 | (22) | |
Items never subsequently reclassified to income | |||||
Employee defined benefit plan re-measurements | (669) | 8 | (353) | 32 | |
Total | (776) | 29 | (186) | 10 | |
COMPREHENSIVE INCOME | (461) | 549 | 482 | 967 | |
NET INCOME ATTRIBUTABLE TO: | |||||
Common Shares | 290 | 517 | 640 | 945 | |
Non-controlling interests | 25 | 3 | 28 | 12 | |
NET INCOME | 315 | 520 | 668 | 957 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO: | |||||
Common Shares | (477) | 543 | 451 | 949 | |
Non-controlling interests | 16 | 6 | 31 | 18 | |
COMPREHENSIVE INCOME | $ (461) | $ 549 | $ 482 | $ 967 | |
NET INCOME PER COMMON SHARE | |||||
Basic | [1] | $ 0.23 | $ 0.43 | $ 0.51 | $ 0.79 |
Diluted | [1] | $ 0.23 | $ 0.43 | $ 0.51 | $ 0.79 |
TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||
Basic | [1] | 1,278 | 1,203 | 1,263 | 1,202 |
Diluted | [1] | 1,280 | 1,203 | 1,264 | 1,202 |
[1] | Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). |
condensed interim consolidate_2
condensed interim consolidated statements of financial position - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and temporary investments, net | $ 971 | $ 535 |
Accounts receivable | 2,004 | 1,962 |
Income and other taxes receivable | 18 | 127 |
Inventories | 335 | 437 |
Contract assets | 538 | 737 |
Prepaid expenses | 544 | 547 |
Current derivative assets | 10 | 8 |
Total | 4,420 | 4,353 |
Non-current assets | ||
Property, plant and equipment, net | 14,559 | 14,232 |
Intangible assets, net | 13,630 | 12,844 |
Goodwill, net | 6,132 | 5,309 |
Contract assets | 212 | 328 |
Other long-term assets | 1,355 | 919 |
Total | 35,888 | 33,632 |
Total | 40,308 | 37,985 |
Current liabilities | ||
Short-term borrowings | 100 | 100 |
Accounts payable and accrued liabilities | 2,873 | 2,749 |
Income and other taxes payable | 155 | 55 |
Dividends payable | 372 | 352 |
Advance billings and customer deposits | 696 | 675 |
Provisions | 83 | 288 |
Current maturities of long-term debt | 562 | 1,332 |
Current derivative liabilities | 9 | 23 |
Total | 4,850 | 5,574 |
Non-current liabilities | ||
Provisions | 613 | 590 |
Long-term debt | 17,956 | 17,142 |
Other long-term liabilities | 1,157 | 806 |
Deferred income taxes | 3,352 | 3,214 |
Total | 23,078 | 21,752 |
Liabilities | 27,928 | 27,326 |
Owners' equity | ||
Common equity | 12,046 | 10,548 |
Non-controlling interests | 334 | 111 |
Total | 12,380 | 10,659 |
Total | 40,308 | 37,985 |
Contingent Liabilities |
condensed interim consolidate_3
condensed interim consolidated statements of changes in owners' equity - CAD ($) shares in Millions, $ in Millions | Equity contributed, Common shares | Contributed surplus | Retained earnings | Accumulated other comprehensive income | Common equity | Non-controlling interests | Total | |
Balance (in shares) at Dec. 31, 2018 | [1] | 1,197 | ||||||
Balance at Dec. 31, 2018 | $ 5,390 | $ 383 | $ 4,321 | $ 11 | $ 10,105 | $ 74 | $ 10,179 | |
Net income | 945 | 945 | 12 | 957 | ||||
Other comprehensive income | 32 | (28) | 4 | 6 | 10 | |||
Dividends | (668) | (668) | (668) | |||||
Dividends reinvested and optional cash payments (in shares) | [1] | 2 | ||||||
Dividends reinvested and optional cash payments | $ 46 | 46 | 46 | |||||
Equity accounted share-based compensation | 1 | (1) | ||||||
Issue of Common Shares in business combination | $ 72 | 72 | 72 | |||||
Issue of Common Shares in business combination (in shares) | [1] | 3 | ||||||
Balance (in shares) at Jun. 30, 2019 | [1] | 1,202 | ||||||
Balance at Jun. 30, 2019 | $ 5,509 | 382 | 4,630 | (17) | 10,504 | 92 | 10,596 | |
Balance (in shares) at Dec. 31, 2019 | [1] | 1,209 | ||||||
Balance at Dec. 31, 2019 | $ 5,660 | 398 | 4,371 | 119 | 10,548 | 111 | 10,659 | |
Dividends | (371) | |||||||
Balance (in shares) at Dec. 31, 2019 | [1] | 1,209 | ||||||
Balance at Dec. 31, 2019 | $ 5,660 | 398 | 4,371 | 119 | 10,548 | 111 | 10,659 | |
Net income | 640 | 640 | 28 | 668 | ||||
Other comprehensive income | (353) | 164 | (189) | 3 | (186) | |||
Dividends | (743) | (743) | (743) | |||||
Dividends reinvested and optional cash payments (in shares) | [1] | 11 | ||||||
Dividends reinvested and optional cash payments | $ 262 | 262 | 262 | |||||
Equity accounted share-based compensation | 58 | 58 | 58 | |||||
Common Shares issued | $ 1,453 | 1,453 | 1,453 | |||||
Change of ownership interests of subsidiary | 17 | 17 | 192 | 209 | ||||
Balance (in shares) at Jun. 30, 2020 | [1] | 1,278 | ||||||
Balance at Jun. 30, 2020 | $ 7,375 | 473 | 3,915 | 283 | 12,046 | 334 | $ 12,380 | |
Common Shares issued (in shares) | 58 | |||||||
Net income | $ 315 | |||||||
Other comprehensive income | (776) | |||||||
Dividends | (372) | |||||||
Balance (in shares) at Jun. 30, 2020 | [1] | 1,278 | ||||||
Balance at Jun. 30, 2020 | $ 7,375 | $ 473 | $ 3,915 | $ 283 | $ 12,046 | $ 334 | $ 12,380 | |
Common Shares issued (in shares) | [1] | 58 | ||||||
[1] | Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). |
condensed interim consolidate_4
condensed interim consolidated statements of cash flows - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||||
Net income | $ 315 | $ 520 | $ 668 | $ 957 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Depreciation and amortization | 725 | 633 | 1,450 | 1,250 |
Deferred income taxes | 36 | (39) | (25) | (8) |
Share-based compensation expense, net | 41 | 20 | 64 | 39 |
Net employee defined benefit plans expense | 25 | 19 | 52 | 39 |
Employer contributions to employee defined benefit plans | (12) | (12) | (27) | (28) |
Non-current contract assets | 51 | 15 | 116 | 36 |
Non-current unbilled customer finance receivables | (53) | 9 | (94) | 15 |
Loss from equity accounted investments | 5 | 1 | 13 | 1 |
Other | (75) | (22) | (42) | 51 |
Net change in non-cash operating working capital | 404 | 16 | 464 | (402) |
Cash provided by operating activities | 1,462 | 1,160 | 2,639 | 1,950 |
INVESTING ACTIVITIES | ||||
Cash payments for capital assets, excluding spectrum licences | (694) | (645) | (1,474) | (1,438) |
Cash payments for spectrum licences | (931) | (931) | ||
Cash payments for acquisitions, net | (107) | (26) | (1,211) | (188) |
Advances to, and investment in, real estate joint ventures and associate | (8) | (9) | (88) | (17) |
Real estate joint venture receipts | 1 | 1 | 3 | 2 |
Other | (15) | 10 | (12) | 10 |
Cash used by investing activities | (823) | (1,600) | (2,782) | (2,562) |
FINANCING ACTIVITIES | ||||
Common Shares issued | 1,495 | |||
Dividends paid to holders of Common Shares | (240) | (307) | (462) | (610) |
Issue (repayment) of short-term borrowings, net | (400) | |||
Long-term debt issued | 1,000 | 2,422 | 2,377 | 3,588 |
Redemptions and repayment of long-term debt | (1,479) | (1,617) | (2,967) | (2,534) |
Shares of subsidiary issued to non-controlling interests | 209 | |||
Other | (7) | (29) | (73) | (29) |
Cash provided (used) by financing activities | (726) | 69 | 579 | 415 |
CASH POSITION | ||||
Increase (decrease) in cash and temporary investments, net | (87) | (371) | 436 | (197) |
Cash and temporary investments, net, beginning of period | 1,058 | 588 | 535 | 414 |
Cash and temporary investments, net, end of period | 971 | 217 | 971 | 217 |
SUPPLEMENTAL DISCLOSURE OF OPERATING CASH FLOWS | ||||
Interest paid | (199) | (147) | (376) | (326) |
Interest received | 3 | 3 | 6 | 5 |
Income taxes paid, net | ||||
In respect of comprehensive income | (11) | (122) | (104) | (458) |
In respect of business acquisitions | (2) | (33) | (15) | |
Income taxes paid, net | $ (13) | $ (122) | $ (137) | $ (473) |
condensed interim consolidate_5
condensed interim consolidated financial statements | 6 Months Ended |
Jun. 30, 2020 | |
condensed interim consolidated financial statements | |
condensed interim consolidated financial statements | 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 condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2019. Our condensed interim consolidated financial statements are expressed in Canadian dollars and follow the same accounting policies and methods of their application as set out in our consolidated financial statements for the year ended December 31, 2019. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS-IASB) and Canadian generally accepted accounting principles. 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 consolidated financial statements for the three-month and six-month periods ended June 30, 2020, were authorized by our Board of Directors for issue on July 31, 2020. (b) Use of estimates and judgments The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates (including about the future effects of the COVID-19 pandemic), assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c) Inventories Our inventories primarily consist of wireless handsets, parts and accessories totalling $ 266 million at June 30, 2020 (December 31, 2019 – $375 million) and communications equipment held for resale. Costs of goods sold for the three-month and six-month periods ended June 30, 2020, totalled $384 million (2019- $484 million) and $786 million (2019 - $943 million), respectively. |
accounting policy developments
accounting policy developments | 6 Months Ended |
Jun. 30, 2020 | |
accounting policy developments | |
accounting policy developments | 2 accounting policy developments Initial application of standards, interpretations and amendments to standards and interpretations in the reporting period In October 2018, the International Accounting Standards Board amended IFRS 3, Business Combinations , seeking to clarify whether an acquisition transaction results in the acquisition of an asset or the acquisition of a business. The amendments are effective for acquisition transactions on or after January 1, 2020, although earlier application was permitted. The amended standard has a narrower definition of a business, which could result in the recognition of fewer business combinations than under the previous standard; the implication of this is that amounts which may have been recognized as goodwill in a business combination under the previous standard may now be recognized as allocations to net identifiable assets acquired under the amended standard (with an associated effect in an entity’s results of operations that would differ from the effect of goodwill having been recognized). We have applied the standard prospectively from January 1, 2020. The effects of the amended standard on our financial performance and disclosure will be dependent on the facts and circumstances of any future acquisition transactions and have not been material in the current fiscal year. |
capital structure financial pol
capital structure financial policies | 6 Months Ended |
Jun. 30, 2020 | |
capital structure financial policies | |
capital structure financial policies | 3 capital structure financial policies General Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk. In the management of capital and in its definition, we include common equity (excluding accumulated other comprehensive income), long-term debt (including long-term credit facilities, commercial paper backstopped by long-term credit facilities and any hedging assets or liabilities associated with long-term debt items, net of amounts recognized in accumulated other comprehensive income), cash and temporary investments, and short-term borrowings arising from securitized trade receivables. 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 adjust the amount of dividends paid to holders of Common Shares, purchase Common Shares for cancellation pursuant to normal course issuer bids, issue new shares, issue new debt, issue new debt to replace existing debt with different characteristics and/or increase or decrease the amount of trade receivables sold to an arm’s-length securitization trust. During 2020, our financial objectives, which are reviewed annually, were unchanged from 2019, excepting for a change in methodology of our dividend payout ratio. We believe that our financial objectives are supportive of our long-term strategy. We monitor capital utilizing a number of measures, including: net debt to earnings before interest, income taxes, depreciation and amortization (EBITDA*) – excluding restructuring and other costs ratio; coverage ratios; and dividend payout ratios. Debt and coverage ratios Net debt to EBITDA – excluding restructuring and other costs is calculated as net debt at the end of the period, divided by 12-month trailing EBITDA – excluding restructuring and other costs. This measure, historically, is substantially similar to the leverage ratio covenant in our credit facilities. Net debt and EBITDA – excluding restructuring and other costs are measures that do not have any standardized meanings prescribed by IFRS-IASB and are therefore unlikely to be comparable to similar measures presented by other companies. The calculation of these measures is set out in the following table. Net debt is one component of a ratio used to determine compliance with debt covenants. As at, or for the 12-month periods ended, June 30 ($ in millions) Objective 2020 2019 Components of debt and coverage ratios Net debt 1 $ 17,664 $ 16,602 EBITDA – excluding restructuring and other costs 2 $ 5,769 $ 5,649 Net interest cost 3 $ 797 $ 706 Debt ratio Net debt to EBITDA – excluding restructuring and other costs – 4 3.06 2.94 Coverage ratios Earnings coverage 5 3.6 4.2 EBITDA – excluding restructuring and other costs interest coverage 6 7.2 8.0 (1) Net debt and total capitalization are calculated as follows: As at June 30 Note 2020 2019 Long-term debt 26 $ 18,518 $ 16,579 Debt issuance costs netted against long-term debt 96 105 Derivative (assets) liabilities, net (392) 92 Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated long-term debt — excluding tax effects 313 (57) Cash and temporary investments, net (971) (217) Short-term borrowings 22 100 100 Net debt 17,664 16,602 Common equity 12,046 10,504 Less: accumulated other comprehensive income included in common equity above (283) 17 Total capitalization $ 29,427 $ 27,123 (2) EBITDA – excluding restructuring and other costs is calculated as follows: EBITDA — Restructuring excluding EBITDA and other costs restructuring (Note 5) (Note 16) and other costs Add Six-month period ended June 30, 2020 $ 2,768 $ 130 $ 2,898 Year ended December 31, 2019 5,554 134 5,688 Deduct Six-month period ended June 30, 2019 (2,752) (65) (2,817) EBITDA – excluding restructuring and other costs $ 5,570 $ 199 $ 5,769 (3) Net interest cost is defined as financing costs, excluding employee defined benefit plans net interest, recoveries on long-term debt prepayment premium and repayment of debt, calculated on a 12-month trailing basis (expenses recorded for long-term debt prepayment premium, if any, are included in net interest cost) (see Note 9 ). (4) Our long-term objective range for this ratio is 2.20 – 2.70 times. The ratio as at June 30, 2020, is outside the long-term objective range. We may permit, and have permitted, this ratio to go outside the objective range (for long-term investment opportunities), but we will endeavour to return this ratio to within the objective range in the medium term (following upcoming spectrum auctions), as we believe that this range is supportive of our long-term strategy. We are in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our net debt to operating cash flow ratio to exceed 4.00: 1.00 (see Note 26 (d) ); the calculation of the debt ratio is substantially similar to the calculation of the leverage ratio covenant in our credit facilities. (5) Earnings coverage is defined by Canadian Securities Administrators National Instrument 41-101 as net income before borrowing costs and income tax expense, divided by borrowing costs (interest on long-term debt; interest on short-term borrowings and other; long-term debt prepayment premium), and adding back capitalized interest , all such amounts excluding amounts attributable to non-controlling interests. (6) EBITDA – excluding restructuring and other costs interest coverage is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost. This measure is substantially similar to the coverage ratio covenant in our credit facilities. *EBITDA does not have any standardized meaning prescribed by IFRS-IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define EBITDA as operating revenues less goods and services purchased and employee benefits expense. We have issued guidance on, and report, EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized in measuring compliance with certain debt covenants. Net debt to EBITDA – excluding restructuring and other costs was 3.06 times as at June 30,2020, up from 2.94 times one year earlier. The effect of the increase in net debt was exceeded by the effect of growth in EBITDA – excluding restructuring and other costs. The earnings coverage ratio for the twelve-month period ended June 30, 2020, was 3.6 times, down from 4.2 times one year earlier. Higher borrowing costs reduced the ratio by 0.5 and a decrease in income before borrowing costs and income taxes decreased the ratio by 0.1. The EBITDA – excluding restructuring and other costs interest coverage ratio for the twelve-month period ended June 30,2020, was 7.2 times, down from 8.0 times one year earlier. Growth in EBITDA – excluding restructuring and other costs increased the ratio by 0.2, while an increase in net interest costs reduced the ratio by 1.0. Dividend payout ratio Commencing in 2020, so as to be consistent with the way we manage our business, we updated our revised dividend payout ratio presented to be a historical measure calculated as the sum of the last four quarters’ dividends declared for Common Shares as recorded in the financial statements, net of dividend reinvestment plan effects (see Note 13 ), divided by the sum of free cash flow* amounts for the most recent four quarters for interim reporting periods (divided by annual free cash flow if the reported amount is in respect of a fiscal year). For the 12-month periods ended June 30 Objective 2020 2019 Determined using management measures Dividend payout ratio – net of dividend reinvestment plan effects 60%–75% 1 61 % 133 % Determined using most comparable IFRS-IASB measures Ratio of dividends declared to cash provided by operating activities less capital expenditures (excluding spectrum licences) 84 % 122 % (1) Our objective range for the dividend payout ratio is 60%-75% of free cash flow on a prospective basis. 12-month periods ended June 30 (millions) 2020 2019 Dividends declared $ 1,433 $ 1,307 Amount of dividends declared reinvested in Common Shares (516) (90) Dividends declared, net of dividend reinvestment plan effects $ 917 $ 1,217 * Free cash flow does not have any standardized meaning prescribed by IFRS-IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define free cash flow as EBITDA (operating revenues less goods and services purchased and employee benefits expense) excluding certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as found in the consolidated statements of cash flows. We have issued guidance on, and report, free cash flow because it is a key measure that management, and investors, use to evaluate the performance of our business. Our calculation of free cash flow, and the reconciliation to cash provided by operating activities, is as follows: 12-month periods ended June 30 (millions) Note 2020 2019 EBITDA 5 $ 5,570 $ 5,336 Deduct non-cash gains from sale of property, plant and equipment (13) (43) Restructuring and other costs, net of disbursements 22 43 Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment device financing 43 (172) Effects of lease principal 31(b) (346) (152) Leases accounted for as finance leases prior to adoption of IFRS 16 136 26 Deduct non-recurring gains and equity income related to real estate joint ventures 21(b) — (171) Donation to TELUS Friendly Future Foundation in Common Shares — 100 Items from consolidated statements of cash flows: Share-based compensation, net 14 23 2 Net employee defined benefit plans expense 15 85 Employer contributions to employee defined benefit plans (40) (46) Interest paid (764) (654) Interest received 8 9 Capital expenditures (excluding spectrum licences) 5 (2,911) (2,889) Free cash flow before income taxes 1,819 1,474 Income taxes paid, net of refunds (308) (562) Free cash flow 1,511 912 Add (deduct): Capital expenditures (excluding spectrum licences) 5 2,911 2,889 Adjustments to reconcile to Cash provided by operating activities 194 163 Cash provided by operating activities $ 4,616 $ 3,964 |
financial instruments
financial instruments | 6 Months Ended |
Jun. 30, 2020 | |
financial instruments | |
financial instruments | 4 financial instruments (a) Credit risk Excluding credit risk, if any, arising from currency swaps settled on a gross basis, the best representation of our maximum exposure (excluding income tax effects) to credit risk, which is a worst-case scenario and does not reflect results we expect, is set out in the following table: June 30, December 31, As at (millions) 2020 2019 Cash and temporary investments, net $ 971 $ 535 Accounts receivable 2,323 2,187 Contract assets 750 1,065 Derivative assets 423 84 $ 4,467 $ 3,871 Cash and temporary investments, net Credit risk associated with cash and temporary investments is managed by ensuring that these financial assets are placed with: governments; major financial institutions that have been accorded strong investment grade ratings by a primary rating agency; and/or other creditworthy counterparties. An ongoing review evaluates changes in the status of counterparties. Accounts receivable Credit risk associated with accounts receivable is inherently managed by the size and diversity of our large customer base, which includes substantially all consumer and business sectors in Canada. We follow a program of credit evaluations of customers and limit the amount of credit extended when deemed necessary. Accounts are considered to be past due (in default) when customers have failed to make the contractually required payments when due, which is generally within 30 days of the billing date. Any late payment charges are levied at an industry-based market or negotiated rate on outstanding non-current customer account balances. June 30, 2020 December 31, 2019 As at (millions) Note Gross Allowance Net 1 Gross Allowance Net 1 Customer accounts receivable, net of allowance for doubtful accounts Less than 30 days past billing date $ 826 $ (22) $ 804 $ 803 $ (10) $ 793 30-60 days past billing date 262 (15) 247 331 (8) 323 61-90 days past billing date 129 (14) 115 74 (5) 69 More than 90 days past billing date 114 (27) 87 73 (14) 59 Unbilled customer finance receivables 717 (26) 691 523 (18) 505 $ 2,048 $ (104) $ 1,944 $ 1,804 $ (55) $ 1,749 Current $ 1,719 $ (94) $ 1,625 $ 1,570 $ (46) $ 1,524 Non-current 20 329 (10) 319 234 (9) 225 $ 2,048 $ (104) $ 1,944 $ 1,804 $ (55) $ 1,749 (1) Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b) ). 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 the 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; amounts charged to the customer accounts receivable allowance for doubtful accounts that were written off but were still subject to enforcement activity as at June 30, 2020, totalled $541 million (December 31, 2019 – $449 million). The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable above a specific balance threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable are written off directly to the doubtful accounts expense. The following table presents a summary of the activity related to our allowance for doubtful accounts. Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Balance, beginning of period $ 56 $ 43 $ 55 $ 53 Additions (doubtful accounts expense) 46 10 58 21 Accounts written off, net of recoveries (6) (11) (18) (33) Other 8 — 9 1 Balance, end of period $ 104 $ 42 $ 104 $ 42 Contract assets Credit risk associated with contract assets is inherently managed by the size and diversity of our large customer base, which includes substantially all consumer and business sectors in Canada. We follow a program of credit evaluations of customers and limit the amount of credit extended when deemed necessary. June 30, 2020 December 31, 2019 As at (millions) Gross Allowance Net (Note 6(c)) Gross Allowance Net (Note 6(c)) Contract assets, net of impairment allowance To be billed and thus reclassified to accounts receivable during: The 12-month period ending one year hence $ 730 $ (41) $ 689 $ 952 $ (42) $ 910 The 12-month period ending two years hence 209 (12) 197 322 (14) 308 Thereafter 16 (1) 15 21 (1) 20 $ 955 $ (54) $ 901 $ 1,295 $ (57) $ 1,238 We maintain allowances for lifetime expected credit losses related to contract assets. Current economic conditions, historical information (including credit agency reports, if available), and the line of business from which the contract asset arose are all considered when determining impairment allowances. The same factors are considered when determining whether to write off amounts charged to the impairment allowance for contract assets against contract assets. Derivative assets (and derivative liabilities) Counterparties to our share-based compensation cash-settled equity forward agreements and foreign exchange derivatives are major financial institutions that have been accorded investment grade ratings by a primary credit rating agency. The total dollar amount of credit exposure under contracts with any one financial institution is limited and counterparties’ credit ratings are monitored. We do not give or receive collateral on swap agreements and hedging items due to our credit rating and those of our counterparties. While we are exposed to the risk of potential credit losses due to the possible non-performance of our counterparties, we consider this risk remote. Our derivative liabilities do not have credit risk-related contingent features. (b) Liquidity risk As a component of our capital structure financial policies, discussed further in Note 3 , we manage liquidity risk by: · maintaining a daily cash pooling process that enables us to manage our available liquidity and our liquidity requirements according to our actual needs; · maintaining an agreement to sell trade receivables to an arm’s-length securitization trust and bilateral bank facilities ( Note 22 ), a commercial paper program ( Note 26(c) ) and syndicated credit facilities ( Note 26(d),(e) ); · maintaining an in-effect shelf prospectus; · continuously monitoring forecast and actual cash flows; and · managing maturity profiles of financial assets and financial liabilities. Our debt maturities in future years are as disclosed in Note 26(g) . As at June 30, 2020, we could offer $2.5 billion of debt or equity securities pursuant to a shelf prospectus that is in effect until June 2022 (December 31, 2019 – $2.0 billion pursuant to a shelf prospectus that was in effect until August 2021) . We believe that our investment grade credit ratings contribute to reasonable access to capital markets. We closely match the contractual maturities of our derivative financial liabilities with those of the risk exposures they are being used to manage. The expected maturities of our undiscounted financial liabilities do not differ significantly from the contractual maturities, other than as noted below. The contractual maturities of our undiscounted financial liabilities, including interest thereon (where applicable), are set out in the following tables: Non-derivative Derivative Composite long-term debt Long-term Non-interest debt, bearing excluding Currency swap agreement Currency swap agreement financial Short-term leases 1 Leases amounts to be exchanged 2 amounts to be exchanged As at June 30, 2020 (millions) liabilities borrowings 1 (Note 26) (Note 26) (Receive) Pay Other (Receive) Pay Total 2020 (balance of year) $ 2,329 $ — $ 352 $ 213 $ (80) $ 73 $ 4 $ (251) $ 244 $ 2,884 2021 161 101 867 398 (160) 151 1 (203) 205 1,521 2022 10 — 1,904 252 (160) 151 8 — — 2,165 2023 8 — 1,137 214 (160) 150 — — — 1,349 2024 8 — 1,694 177 (160) 150 — — — 1,869 2025-2029 20 — 9,153 475 (2,451) 2,393 — — — 9,590 Thereafter — — 10,975 418 (3,168) 3,020 — — — 11,245 Total $ 2,536 $ 101 $ 26,082 $ 2,147 $ (6,339) $ 6,088 $ 13 $ (454) $ 449 $ 30,623 Total ( Note 26(g) ) $ 27,978 (1) Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at June 30, 2020. (2) The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swaps receive column, have been determined based upon the currency exchange rates in effect as at June 30, 2020. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swaps pay column as gross cash flows are exchanged pursuant to the currency swap agreements. Non-derivative Derivative Composite long-term debt Non-interest Construction Long-term bearing credit facilities debt, Currency swap agreement Currency swap agreement As at December 31, financial Short-term commitment excluding amounts to be exchanged 2 amounts to be exchanged 2019 (millions) liabilities borrowings 1 (Note 21) leases 1 Leases (Receive) Pay Other (Receive) Pay Total 2020 $ $ 3 $ 10 $ 1,657 $ 373 $ (1,140) $ 1,153 $ — $ (917) $ 921 $ 4,699 2021 43 103 — 338 (119) 118 — — — 2,181 2022 7 — — 207 (119) 118 8 — — 2,456 2023 5 — — 189 (119) 118 — — — 1,214 2024 5 — — 157 (119) 118 — — — 1,756 2025-2029 4 — — 429 (1,919) 1,944 — — — 7,769 Thereafter — — — 388 (3,019) 3,020 — — — 10,491 Total $ 2,703 $ 106 $ 10 $ 25,619 $ 2,081 $ (6,554) $ 6,589 $ 8 $ (917) $ 921 $ 30,566 Total $ 27,735 (1) Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2019. (2) The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swaps receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2019. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swaps pay column as gross cash flows are exchanged pursuant to the currency swap agreements. (c) Market risks Net income and other comprehensive income for the six-month periods ended June 30, 2020 and 2019, could have varied if the Canadian dollar: U.S. dollar exchange rate, the U.S. dollar: European euro exchange rate, market interest rates and our Common Share price varied by reasonably possible amounts from their actual statement of financial position date amounts. The sensitivity analysis of our exposure to currency risk at the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. The U.S. dollar-denominated and European euro-denominated balances and derivative financial instrument notional amounts as at the statement of financial position dates have been used in the calculations. The sensitivity analysis of our exposure to interest rate risk at the reporting date has been determined based upon a hypothetical change taking place at the beginning of the relevant fiscal year and being held constant through to the statement of financial position date. The relevant statement of financial position date principal and notional amounts have been used in the calculations. The sensitivity analysis of our exposure to other price risk arising from share-based compensation at the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. The relevant notional number of Common Shares at the relevant statement of financial position date, which includes those in the cash-settled equity swap agreements, has been used in the calculations. Income tax expense, which is reflected net in the sensitivity analysis, reflects the applicable statutory income tax rates for the reporting periods. Six-month periods ended June 30 Net income Other comprehensive income Comprehensive income (increase (decrease) in millions) 2020 2019 2020 2019 2020 2019 Reasonably possible changes in market risks 1 10% change in C$: US$ exchange rate Canadian dollar appreciates $ 4 $ — $ (66) $ (55) $ (62) $ (55) Canadian dollar depreciates $ (4) $ — $ 66 $ 55 $ $ 55 10% change in US$: € exchange rate U.S. dollar appreciates $ — $ — $ (55) $ — $ (55) $ — U.S. dollar depreciates $ — $ — $ 55 $ — $ 55 $ — 25 basis point change in interest rates Interest rates increase Canadian interest rate $ — $ — $ $ 94 $ $ 94 US interest rate $ — $ — $ (129) $ (90) $ (129) $ (90) Combined $ — $ — $ (11) $ 4 $ (11) $ 4 Interest rates decrease Canadian interest rate $ — $ — $ (124) $ (99) $ (124) $ (99) US interest rate $ — $ — $ 137 $ 95 $ 137 $ 95 Combined $ — $ — $ $ (4) $ $ (4) 25% 2 change in Common Share price 3 Price increases $ (8) $ (4) $ 3 $ 1 $ (5) $ (3) Price decreases $ 13 $ 19 $ (3) $ (1) $ $ (1) These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. The sensitivity analysis assumes that we would realize the changes in exchange rates and market interest rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption. No consideration has been made for a difference in the notional number of Common Shares associated with share-based compensation awards made during the reporting period that may have arisen due to a difference in the Common Share price. (2) To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used. Reflecting a six-month data period and calculated on a monthly basis, the volatility of our Common Share price as at June 30, 2020, was 22.8% (2019 – 12.5%). (3) The hypothetical effects of changes in the price of our Common Shares are restricted to those which would arise from our share-based compensation awards that are accounted for as liability instruments and the associated cash-settled equity swap agreements. (d) Fair values Derivative The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are set out in the following table. June 30, 2020 December 31, 2019 Maximum Fair value 1 Maximum Fair value 1 maturity Notional and carrying Price or maturity Notional and carrying Price or As at (millions) Designation date amount value rate date amount value rate Current Assets 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated purchases HFH 3 2021 $ 249 $ 8 US$1.00: C$1.32 — $ — $ — — Currency risk arising from U.S. dollar revenues HFT 4 2021 $ 76 2 US$1.00: C$1.36 2020 $ 36 1 US$1.00: C$1.30 Changes in share-based compensation costs ( Note 14(b) ) HFH 3 — $ — — — 2020 $ 72 4 $24.40* Currency risk associated with European euro-denominated business acquisition HFH 3 — $ — — — 2020 $ 472 3 €1.00: US$1.12 $ 10 $ 8 Other Long-Term Assets 2 Derivatives used to manage Currency risks arising from U.S. dollar-denominated long-term debt 6 ( Note 26(b)-(c) ) HFH 3 2049 $ 5,495 $ 413 US$1.00: C$1.30 2048 $ 3,068 $ 76 US$1.00: C$1.28 Current Liabilities 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated purchases HFH 3 2021 $ 123 $ 3 US$1.00: C$1.40 2020 $ 412 $ 6 US$1.00: C$1.32 Changes in share-based compensation costs ( Note 14(b) ) HFH 3 2020 $ 72 4 $ 24.39 * — $ — — — Currency risk arising from U.S. dollar-denominated long-term debt ( Note 26(b)-(c) ) HFH 3 — $ — — — 2020 $ 1,037 17 US$1.00: C$1.32 Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 ( Notes 18(b), 26(e) ) HFH 5 2024 $ 33 2 €1.00: US$1.09 — $ — — — Interest rate risk associated with non-fixed rate credit facility amounts drawn ( Note 26(e) ) HFH 3 2022 $ 8 — 2022 $ 8 — $ 9 $ 23 Other Long-Term Liabilities 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated long-term debt 6 ( Note 26(b)-(c) ) HFH 3 — $ — $ — — 2049 $ 2,485 US$1.00: C$1.34 Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 ( Notes 18(b), 26(e) ) HFH 5 2025 $ 563 19 €1.00: US$1.09 — $ — — — Interest rate risk associated with non-fixed rate credit facility amounts drawn ( Note 26(e) ) HFH 3 2022 $ 133 8 2022 $ 130 $ 27 $ 26 * Amounts reflect retrospective application of March 17, 2020, share split (See Note 28(b) ). (1) Fair value measured at reporting date using significant other observable inputs (Level 2). (2) Derivative financial assets and liabilities are not set off. (3) Designated 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. (4) Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied. (5) Designated as a hedge of a net investment in a foreign operation and hedge accounting is applied. 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. (6) We designate only the spot element as the hedging item. As at June 30, 2020, the foreign currency basis spread included in the fair value of the derivative instruments, and which is used for purposes of assessing hedge ineffectiveness, was $92 (December 31, 2019 – $38). (7) We designate only the spot element as the hedging item. As at June 30, 2020, the foreign currency basis spread included in the fair value of the derivative instruments, and which is used for purposes of assessing hedge ineffectiveness was $2. Non-derivative Our long-term debt, which is measured at amortized cost, and the fair value thereof, are set out in the following table. June 30, 2020 December 31, 2019 Carrying Carrying As at (millions) value Fair value value Fair value Long-term debt, excluding leases ( Note 26 ) $ 16,797 $ 18,121 $ 16,813 $ 17,930 (e) Recognition of derivative gains and losses The following table sets out the gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items and their location within the Consolidated statements of income and other comprehensive income. Credit risk associated with such derivative instruments, as discussed further in (a) , would be the primary source of hedge ineffectiveness. There was no ineffective portion of the derivative instruments classified as cash flow hedging items for the periods presented. Amount of gain (loss) recognized in other Gain (loss) reclassified from other comprehensive comprehensive income income to income (effective portion) (Note 11) (effective portion) ( Note 11 ) Amount Periods ended June 30 (millions) Note 2020 2019 Location 2020 2019 THREE-MONTH Derivatives used to manage currency risk Arising from U.S. dollar-denominated purchases $ (13) $ (7) Goods and services purchased $ 5 $ 4 Arising from U.S. dollar-denominated long-term debt 1 26(b)-(c) (216) (29) Financing costs (129) (58) Arising from net investment in a foreign operation 2 (21) — Financing costs (3) — (250) (36) (127) (54) Derivatives used to manage other market risk Arising from changes in share-based compensation costs and other 14(b) — (5) Employee benefits expense 1 (1) $ (250) $ (41) $ (126) $ (55) SIX-MONTH Derivatives used to manage currency risk Arising from U.S. dollar-denominated purchases $ 18 $ (15) Goods and services purchased $ 7 $ 9 Arising from U.S. dollar-denominated long-term debt 1 26(b)-(c) 424 (151) Financing costs 223 (123) Arising from net investment in a foreign operation 2 (22) — Financing costs — — 420 (166) 230 (114) Derivatives used to manage other market risk Arising from changes in share-based compensation costs and other 14(b) (10) 5 Employee benefits expense (1) 6 $ 410 $ (161) $ 229 $ (108) (1) Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amount for the three-month and six-month periods ended June 30, 2020, were $(4) (2019 – $NIL) and $54 (2019 - $7), respectively. (2) Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amount for the three-month and six-month periods ended June 30, 2020, were $2 and $2, respectively. The following table sets out the gains and losses arising from derivative instruments that are classified as held for trading and that are not designated as being in a hedging relationship, and their location within the Consolidated statements of income and other comprehensive income. Gain recognized in income on derivatives Three months Six months Periods ended June 30 (millions) Location 2020 2019 2020 2019 Derivatives used to manage currency risk Financing costs $ 3 $ 3 $ 4 $ 5 |
segment information
segment information | 6 Months Ended |
Jun. 30, 2020 | |
segment information | |
segment information | 5 segment information General Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance. Effective January 1, 2020, we embarked upon modifying our internal and external reporting processes, systems and internal controls to accommodate the technology convergence-driven cessation of the historical distinction between our wireless and wireline operations at the level of regularly reported discrete performance measures that are provided to our chief operating decision-maker. Prior to the World Health Organization characterizing COVID-19 as a pandemic, we had anticipated transitioning to a new segment reporting structure during 2020, but did not, and do not, anticipate a substantive change to our products and services revenue reporting from such transition; we will continue to report wireless and wireline operations until such transition is substantially completed, but the timing of such transition may be impacted as we prioritize managing through the pandemic. The wireless segment includes network revenues and equipment sales arising from mobile technologies. The wireline segment includes data revenues (which include internet protocol; television; hosting, managed information technology and cloud-based services; customer care and business services; certain healthcare solutions; and home and business security), voice and other telecommunications services revenues (excluding wireless arising from mobile technologies), and equipment sales. Segmentation has been based on similarities in technology (mobile versus fixed), the technical expertise required to deliver the services and products, customer characteristics, the distribution channels used and regulatory treatment. Intersegment sales are recorded at the exchange value, which is the amount agreed to by the parties. The segment information regularly reported to our Chief Executive Officer (our chief operating decision-maker), and the reconciliations thereof to our products and services view of revenues, other revenues and income before income taxes, are set out in the following table. Wireless Wireline Eliminations Consolidated Three-month periods ended June 30 (millions) 2020 2019 2020 2019 2020 2019 2020 2019 Operating revenues External revenues Service $ 1,485 $ 1,534 $ 1,765 $ 1,552 $ — $ — $ 3,250 $ 3,086 Equipment 347 444 59 57 — — 406 501 Revenues arising from contracts with customers 1,832 1,978 1,824 1,609 — — 3,656 3,587 Other operating income (1) 5 73 5 — — 72 10 1,831 1,983 1,897 1,614 — — 3,728 3,597 Intersegment revenues 15 14 64 60 (79) (74) — — $ 1,846 $ 1,997 $ 1,961 $ 1,674 $ (79) $ (74) $ 3,728 $ 3,597 EBITDA 1 $ 870 $ 919 $ 489 $ 454 $ — $ — $ 1,359 $ 1,373 CAPEX, excluding spectrum licences 2 $ 234 $ 223 $ 522 $ 547 $ — $ — $ 756 $ 770 Operating revenues – external (above) $ 3,728 $ 3,597 Goods and services purchased 1,458 1,466 Employee benefits expense 911 758 EBITDA (above) 1,359 1,373 Depreciation 505 470 Amortization 220 163 Operating income 634 740 Financing costs 202 189 Income before income taxes $ 432 $ 551 Six-month periods ended June 30 Wireless Wireline Eliminations Consolidated (millions) 2020 2019 2020 2019 2020 2019 2020 2019 Operating revenues External revenues Service $ 3,008 $ 3,034 $ 3,487 $ 3,072 $ — $ — $ 6,495 $ 6,106 Equipment 709 863 115 107 — — 824 970 Revenues arising from contracts with customers 3,717 3,897 3,602 3,179 — — 7,319 7,076 Other operating income (2) 10 105 17 — — 103 27 3,715 3,907 3,707 3,196 — — 7,422 7,103 Intersegment revenues 29 27 127 116 (156) (143) — — $ 3,744 $ 3,934 $ 3,834 $ 3,312 $ (156) $ (143) $ 7,422 $ 7,103 EBITDA 1 $ 1,804 $ 1,827 $ 964 $ 925 $ — $ — $ 2,768 $ 2,752 CAPEX, excluding spectrum licences 2 $ 428 $ 400 $ 993 $ 1,016 $ — $ — $ 1,421 $ 1,416 Operating revenues – external (above) $ 7,422 $ 7,103 Goods and services purchased 2,870 2,887 Employee benefits expense 1,784 1,464 EBITDA (above) 2,768 2,752 Depreciation 1,028 940 Amortization 422 310 Operating income 1,318 1,502 Financing costs 394 357 Income before income taxes $ 924 $ 1,145 (1) Earnings before interest, income taxes, depreciation and amortization (EBITDA) does not have any standardized meaning prescribed by IFRS- IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define EBITDA as operating revenues less goods and services purchased and employee benefits expense. We have issued guidance on, and report, EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized in measuring compliance with certain debt covenants. (2) Total capital expenditures (CAPEX); see Note 31(a) for a reconciliation of capital expenditures, excluding spectrum licences to cash payments for capital assets, excluding spectrum licences reported in the Consolidated statements of cash flows. |
revenue from contracts with cus
revenue from contracts with customers | 6 Months Ended |
Jun. 30, 2020 | |
revenue from contracts with customers | |
revenue from contracts with customers | 6 revenue from contracts with customers (a) Revenues In the determination of the minimum transaction prices in contracts with customers, amounts are allocated to fulfilling, or completion of fulfilling, future contracted performance obligations. These unfulfilled, or partially unfulfilled, future contracted performance obligations are largely in respect of services to be provided over the duration of the contract. The following table sets out our aggregate estimated minimum transaction prices allocated to remaining unfulfilled, or partially unfulfilled, future contracted performance obligations and the timing of when we might expect to recognize the associated revenues; actual amounts could differ from these estimates due to a variety of factors, including the unpredictable nature of: customer behaviour; industry regulation; the economic environments in which we operate; and competitor behaviour. June 30, December 31, As at (millions) 2020 2019 Estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations to be recognized as revenue in a future period 1, 2 During the 12-month period ending one year hence $ 2,227 $ 2,405 During the 12-month period ending two years hence 748 930 Thereafter 33 40 $ 3,008 $ 3,375 (1) Excludes constrained variable consideration amounts, amounts arising from contracts originally expected to have a duration of one year or less and, as a permitted practical expedient, amounts arising from contracts that are not affected by revenue recognition timing differences arising from transaction price allocation or from contracts under which we may recognize and bill revenue in an amount that corresponds directly with our completed performance obligations. (2) IFRS-IASB requires the explanation of when we expect to recognize as revenue the amounts disclosed as the estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations. The estimated amounts disclosed are based upon contractual terms and maturities. Actual minimum transaction price revenues recognized, and the timing thereof, will differ from these estimates primarily due to the frequency with which the actual durations of contracts with customers do not match their contractual maturities. (b) Accounts receivable June 30, December 31, As at (millions) Note 2020 2019 Customer accounts receivable $ 1,719 $ 1,570 Accrued receivables – customer 220 180 Allowance for doubtful accounts 4(a) (94) (46) 1,845 1,704 Accrued receivables – other 159 258 Accounts receivable – current $ 2,004 $ 1,962 (c) Contract assets Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Balance, beginning of period $ 1,069 $ 1,449 $ 1,238 $ 1,475 Net additions arising from operations 176 350 347 671 Amounts billed in period and thus reclassified to accounts receivable 1 (343) (357) (688) (703) Change in impairment allowance, net 4(a) (2) (2) 3 (4) Other 1 1 1 2 Balance, end of period $ 901 $ 1,441 $ 901 $ 1,441 To be billed and thus reclassified to accounts receivable during: The 12-month period ending one year hence $ 689 $ 1,019 The 12-month period ending two years hence 197 407 Thereafter 15 15 Balance, end of period $ 901 $ 1,441 Reconciliation of contract assets presented in the Consolidated statements of financial position – current Gross contract assets $ 689 $ 1,019 Reclassification to contract liabilities of contracts with contract assets less than contract liabilities 24 (9) (5) Reclassification from contract liabilities of contracts with contract liabilities less than contract assets 24 (142) (155) $ 538 $ 859 (1) For the three-month and six-month periods ended June 30, 2020, amounts billed for our wireless products and services and reclassified to accounts receivable totalled $268 (2019 – $330) and $557 (2019 – $650), respectively. |
other operating income
other operating income | 6 Months Ended |
Jun. 30, 2020 | |
other operating income | |
other operating income | 7 other operating income Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Government assistance $ 3 $ 5 $ 6 $ 12 Other sublet revenue 19 — 1 1 1 Investment income, gain (loss) on disposal of assets and other 21 (3) 3 (9) 12 Interest income 21(b) 1 1 2 2 Changes in business combination-related provisions 25 71 — 103 — $ 72 $ 10 $ 103 $ 27 We receive government assistance, as defined by IFRS-IASB, from a number of sources and include such amounts received in Other operating income. We recognize such amounts on an accrual basis as the subsidized services are provided or as the subsidized costs are incurred. CRTC subsidy Local exchange carriers’ costs of providing the level of residential basic telephone services that the CRTC requires to be provided in high cost serving areas are greater than the amounts the CRTC allows the local exchange carriers to charge for the level of service. To ameliorate the situation, the CRTC directs the collection of contribution payments, in a central fund, from all registered Canadian telecommunications service providers (including voice, data and wireless service providers) that are then disbursed to incumbent local exchange carriers as subsidy payments to partially offset the costs of providing residential basic telephone services in non-forborne high cost serving areas. The subsidy payment disbursements are based upon a total subsidy requirement calculated on a per network access line/per band subsidy rate. For the three-month and six-month periods ended June 30, 2020, our subsidy receipts were $2 million (2019 – $4 million) and $5 million (2019 – $8 million), respectively. Government of Quebec Salaries for qualifying employment positions in the province of Quebec, mainly in the information technology sector, are eligible for tax credits. In respect of such tax credits, for the three-month and six-month periods ended June 30, 2020, we recorded $1 million (2019 – $4 million) and $1 million (2019 – $4 million), respectively. |
employee benefits expense
employee benefits expense | 6 Months Ended |
Jun. 30, 2020 | |
employee benefits expense | |
employee benefits expense | 8 employee benefits expense Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Employee benefits expense – gross Wages and salaries $ 901 $ 762 $ 1,781 $ 1,465 Share-based compensation 14 46 30 78 64 Pensions – defined benefit 15(a) 25 19 52 39 Pensions – defined contribution 15(b) 25 20 46 43 Restructuring costs 16(a) 10 19 20 34 Other 43 47 89 89 1,050 897 2,066 1,734 Capitalized internal labour costs, net Contract acquisition costs 20 Capitalized (16) (12) (33) (24) Amortized 13 11 26 23 Contract fulfilment costs 20 Capitalized (1) — (2) (1) Amortized 1 — 2 1 Property, plant and equipment (83) (90) (170) (175) Intangible assets subject to amortization (53) (48) (105) (94) (139) (139) (282) (270) $ 911 $ 758 $ 1,784 $ 1,464 |
financing costs
financing costs | 6 Months Ended |
Jun. 30, 2020 | |
financing costs | |
financing costs | 9 financing costs Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Interest expense Interest on long-term debt, excluding lease liabilities – gross $ 169 $ 161 $ 339 $ 311 Interest on long-term debt, excluding lease liabilities - capitalized 1 18(a) (9) (4) (17) (4) Interest on long-term debt, excluding lease liabilities 160 157 322 307 Interest on lease liabilities 19 17 16 35 32 Interest on short-term borrowings and other 2 3 4 8 Interest accretion on provisions 25 4 5 9 11 Long-term debt prepayment premium 26(a) 18 — 18 — 201 181 388 358 Employee defined benefit plans net interest 15 4 — 8 — Foreign exchange (1) 11 1 4 204 192 397 362 Interest income (2) (3) (3) (5) $ 202 $ 189 $ 394 $ 357 Net interest cost 3 $ $ Interest on long-term debt, excluding lease liabilities - capitalized 1 (17) (4) Employee defined benefit plans net interest — $ $ (1) Interest on long-term debt, excluding lease liabilities, interest at a composite rate of 4.33% was capitalized to intangible assets with indefinite lives in the period. |
income taxes
income taxes | 6 Months Ended |
Jun. 30, 2020 | |
income taxes | |
income taxes | 10 income taxes Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Current income tax expense For the current reporting period $ 83 $ 71 $ 285 $ 197 Adjustments recognized in the current period for income taxes of prior periods (2) (1) (4) (1) 81 70 281 196 Deferred income tax expense Arising from the origination and reversal of temporary differences 32 83 (28) 114 Revaluation of deferred income tax liability to reflect future income tax rates (2) (121) (5) (121) Adjustments recognized in the current period for income taxes of prior periods 6 (1) 8 (1) 36 (39) (25) (8) $ 117 $ 31 $ 256 $ 188 Our income tax expense and effective income tax rate differ from those calculated by applying the applicable statutory rates for the following reasons: Three-month periods ended June 30 ($ in millions) 2020 2019 Income taxes computed at applicable statutory rates $ 113 % $ 147 26.7 % Revaluation of deferred income tax liability to reflect future income tax rates (2) (121) (22.0) Adjustments recognized in the current period for income taxes of prior periods 4 (2) (0.3) Other 2 7 1.2 Income tax expense per Consolidated statements of income and other comprehensive income $ 117 % $ 31 5.6 % Six-month periods ended June 30 ($ in millions) 2020 2019 Income taxes computed at applicable statutory rates $ 243 % $ 308 26.9 % Revaluation of deferred income tax liability to reflect future income tax rates (5) (121) (10.6) Adjustments recognized in the current period for income taxes of prior periods 4 (2) (0.2) Other 14 3 0.3 Income tax expense per Consolidated statements of income and other comprehensive income $ 256 % $ 188 16.4 % |
other comprehensive income
other comprehensive income | 6 Months Ended |
Jun. 30, 2020 | |
other comprehensive income | |
other comprehensive income | 11 other comprehensive income Item never Item never reclassified reclassified Items that may subsequently be reclassified to income to income to income Change in unrealized fair value of derivatives designated as cash flow hedges in current period (Note 4(e)) Derivatives used to manage currency risk Derivatives used to manage other market risks Cumulative Change in Prior period Prior period foreign measurement Employee Gains (gains) losses Gains (gains) losses currency of investment Accumulated defined benefit (losses) transferred to (losses) transferred to translation financial other plan Other Periods ended June 30 (millions) arising net income Total arising net income Total Total adjustment assets comp. income re-measurements comp. income THREE-MONTH Accumulated balance as at April 1, 2019 $ (70) $ 2 $ (68) $ 28 $ — $ (40) Other comprehensive income (loss) Amount arising $ (36) $ 54 18 $ (5) $ 1 (4) 14 11 — 25 $ 16 $ 41 Income taxes $ (4) $ 9 5 $ (2) $ 1 (1) 4 — — 4 8 12 Net 13 (3) 10 11 — 21 $ 8 $ 29 Accumulated balance as at June 30, 2019 $ (57) $ (1) $ (58) $ 39 $ — $ (19) Accumulated balance as at April 1, 2020 $ 294 $ (7) $ 287 $ 94 $ 12 $ 393 Other comprehensive income (loss) Amount arising $ (250) $ 127 (123) $ — $ (1) (1) (124) (10) — (134) $ (901) $ (1,035) Income taxes $ (43) $ 16 (27) $ 1 $ (1) — (27) — — (27) (232) (259) Net (96) (1) (97) (10) — (107) $ (669) $ (776) Accumulated balance as at June 30, 2020 $ 198 $ (8) $ 190 $ 84 $ 12 $ 286 SIX-MONTH Accumulated balance as at January 1, 2019 $ (19) $ — $ (19) $ 22 $ — $ 3 Other comprehensive income (loss) Amount arising $ (166) $ 114 (52) $ 5 $ (6) (1) (53) 17 — (36) $ 49 $ 13 Income taxes $ (32) $ 18 (14) $ 1 $ (1) — (14) — — (14) 17 3 Net (38) (1) (39) 17 — (22) $ 32 $ 10 Accumulated balance as at June 30, 2019 $ (57) $ (1) $ (58) $ 39 $ — $ (19) Accumulated balance as at January 1, 2020 $ 66 $ (1) $ 65 $ 42 $ 12 $ 119 Other comprehensive income (loss) Amount arising $ $ (230) $ (10) $ (9) — $ (475) $ (252) Income taxes $ $ (42) $ (2) $ — (2) — — (122) (66) Net (7) — $ (353) $ (186) Accumulated balance as at June 30, 2020 $ 198 $ (8) $ 190 $ 84 $ 12 $ 286 Attributable to: Common Shares $ 283 Non-controlling interests 3 $ 286 |
per share amounts
per share amounts | 6 Months Ended |
Jun. 30, 2020 | |
per share amounts | |
per share amounts | 12 per share amounts Basic net income per Common Share is calculated by dividing net income attributable to Common Shares by the total weighted average number of Common Shares outstanding during the period. Diluted net income per Common Share is calculated to give effect to share option awards and restricted share units. The following table presents reconciliations of the denominators of the basic and diluted per share computations. Net income was equal to diluted net income for all periods presented. Three months Six months Periods ended June 30 (millions) 2020 2019* 2020 2019* Basic total weighted average number of Common Shares outstanding 1,278 1,203 1,263 1,202 Effect of dilutive securities - Restricted share units 2 — 1 — Diluted total weighted average number of Common Shares outstanding 1,280 1,203 1,264 1,202 * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). For the three-month and six-month periods ended June 30, 2020, no outstanding equity-settled restricted share unit awards were excluded in the computation of diluted income per common share. For the three-month and six-month periods ended June 30, 2020, NIL and 2 million, respectively, outstanding TELUS Corporation share option awards were excluded in the calculation of diluted net income per Common Share. |
dividends per share
dividends per share | 6 Months Ended |
Jun. 30, 2020 | |
dividends per share | |
dividends per share | 13 dividends per share (a) Dividends declared Six-month periods ended June 30 2020 2019 (millions except per share amounts) Declared Paid to Declared Paid to Common Share dividends Effective Per share * shareholders Total Effective Per share* shareholders Total Quarter 1 dividend Mar. 11, 2020 $ 0.29125 Apr. 1, 2020 $ Mar. 11, 2019 $ 0.27250 Apr. 1, 2019 $ 329 Quarter 2 dividend Jun. 10, 2020 0.29125 Jul. 2, 2020 Jun. 10, 2019 0.28125 Jul. 2, 2019 339 $ 0.58250 $ 743 $ 0.55375 $ 668 * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). On July 30, 2020, the Board of Directors declared a quarterly dividend of $0.29125 per share on our issued and outstanding Common Shares payable on October 1, 2020, to holders of record at the close of business on September 10, 2020. The final amount of the dividend payment depends upon the number of Common Shares issued and outstanding at the close of business on September 10, 2020. (b) Dividend Reinvestment and Share Purchase Plan We have a Dividend Reinvestment and Share Purchase Plan under which eligible holders of Common Shares may acquire additional Common Shares by reinvesting dividends and by making additional optional cash payments to the trustee. Under this plan, we have the option of offering Common Shares from Treasury or having the trustee acquire Common Shares in the stock market. We may, at our discretion, offer Common Shares at a discount of up to 5% from the market price under the plan. Effective with our dividends paid October 1, 2019, we offered Common Shares from Treasury at a discount of 2%. In respect of Common Shares held by eligible shareholders who have elected to participate in the plan, dividends declared during the three-month and six-month periods ended June 30, 2020, of $131 million (2019 - $15 million) and $253 million (2019- $28 million), respectively, were to be reinvested in Common Shares. |
share-based compensation
share-based compensation | 6 Months Ended |
Jun. 30, 2020 | |
share-based compensation | |
share-based compensation | 14 share-based compensation (a) Details of share-based compensation expense Reflected in the Consolidated statements of income and other comprehensive income as Employee benefits expense and in the Consolidated statements of cash flows are the following share-based compensation amounts: Periods ended June 30 (millions) 2020 2019 Associated Statement Associated Statement Employee operating of cash Employee operating of cash benefits cash flows benefits cash flows Note expense outflows adjustment expense outflows adjustment THREE-MONTH Restricted share units (b) $ $ — $ $ 17 $ (1) $ 16 Employee share purchase plan (c) (5) — 9 (9) — Share option awards (d) — 4 — 4 $ $ (5) $ 41 $ 30 $ (10) $ 20 SIX-MONTH Restricted share units (b) $ $ — $ $ 40 $ (7) $ 33 Employee share purchase plan (c) (14) — 18 (18) — Share option awards (d) — 6 — 6 $ $ (14) $ $ 64 $ (25) $ 39 For the three-month and six-month periods ended June 30, 2020, the associated operating cash outflows in respect of restricted share units were net of cash inflows arising from cash-settled equity forward agreements of $1 million (2019 – $2 million) and $2 million (2019 - $3 million), respectively. For the three-month and six-month periods ended June 30, 2020, the income tax benefit arising from share-based compensation was $11 million (2019 - $8 million) and $19 million (2019 - $17 million), respectively. (b) Restricted share units TELUS Corporation restricted share units We also award restricted share units that largely have the same features as our general restricted share units, but have a variable payout (0% – 200%) that depends upon the achievement of our total customer connections performance condition (with a weighting of 25%) and the total shareholder return on our Common Shares relative to an international peer group of telecommunications companies (with a weighting of 75%). The grant-date fair value of the notional subset of our restricted share units affected by the total customer connections performance condition equals the fair market value of the corresponding Common Shares at the grant date, and thus the notional subset has been included in the presentation of our restricted share units with only service conditions. The estimate, which reflects a variable payout, of the fair value of the notional subset of our restricted share units affected by the relative total shareholder return performance condition is determined using a Monte Carlo simulation. Grants of restricted share units in 2019 are accounted for as equity-settled as that was their expected manner of settlement when granted. The following table presents a summary of outstanding TELUS Corporation non-vested restricted share units. June 30, December 31, Number of non-vested restricted share units as at 2020* 2019* Restricted share units without market performance conditions Restricted share units with only service conditions Notional subset affected by total customer connections performance condition Restricted share units with market performance conditions Notional subset affected by relative total shareholder return performance condition The following table presents a summary of the activity related to TELUS Corporation restricted share units without market performance conditions. Periods ended June 30, 2020 Three months Six months Weighted Weighted Number of restricted average Number of restricted average share units 1 grant-date share units 1 grant-date Non-vested Vested fair value Non-vested Vested fair value Outstanding, beginning of period * Non-vested 9,060,044 — $ 24.06 6,468,954 — $ 23.37 Vested — 12,342 $ 19.10 — 30,800 $ 22.02 Issued Initial award 288,443 — $ 22.63 2,910,882 — $ 25.40 In lieu of dividends 121,198 308 $ 21.52 195,615 308 $ 22.92 Vested (17,008) 17,008 $ 24.00 (28,311) 28,311 $ 23.84 Settled in cash — (17,149) $ 24.01 — (46,910) $ 23.89 Forfeited and cancelled (71,853) — $ 24.29 (166,316) — $ 23.80 Outstanding, end of period Non-vested 9,380,824 — $ 23.98 9,380,824 — $ 23.98 Vested — 12,509 $ 19.15 — 12,509 $ 19.15 (1) Excluding the notional subset of restricted share units affected by the relative total shareholder return performance condition. *Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). With respect to 2.9 million TELUS Corporation restricted share units vesting in the year ending December 31, 2020, we have entered into cash-settled equity forward agreements that fix our cost at $24.39 per restricted share unit. TELUS International (Cda) Inc. restricted share units We also award restricted share units that largely have the same features as the TELUS Corporation restricted share units, but have a variable payout (0% – 150%) that depends upon the achievement of TELUS International (Cda) Inc. financial performance and non-market quality-of-service performance conditions. The following table presents a summary of the activity related to TELUS International (Cda) Inc. restricted share units. Periods ended June 30, 2020 Three months Six months Number of Weighted Number of Weighted non-vested average non-vested average restricted grant-date restricted grant-date share units fair value share units fair value Outstanding, beginning of period 463,978 US$ 27.55 465,245 US$ 27.49 Granted 59,929 US$ 52.85 59,929 US$ 52.85 Forfeited (1,475) US$ 27.81 (2,742) US$ 27.93 Outstanding, end of period 522,432 US$ 30.45 522,432 US$ 30.45 (c) Employee share purchase plan We have an employee share purchase plan under which eligible employees up to a certain job classification can purchase our Common Shares through regular payroll deductions. In respect of Common Shares held within the employee share purchase plan, Common Share dividends declared during the three-month and six-month periods ended June 30, 2020, of $9 million (2019 - $8 million) and $18 million (2019 – $17 million), respectively, were to be reinvested in Common Shares acquired by the trustee from Treasury, with no discount applicable prior to October 1, 2019; subsequent to that date, a discount was applicable as set out in Note 13(b) . (d) Share option awards TELUS Corporation share options Employees may be granted options to purchase Common Shares at an exercise price equal to the fair market value at the time of grant. Share option awards granted under the plan may be exercised over specific periods not to exceed seven years from the time of grant. No share option awards were granted in fiscal 2019. These share option awards have a net-equity settlement feature. The optionee does not have the choice of exercising the net-equity settlement feature; it is at our option whether the exercise of a share option award is settled as a share option or settled using the net-equity settlement feature. The following table presents a summary of the activity related to the TELUS Corporation share option plan. Periods ended June 30, 2020 Three months Six months Number of Weighted Number of Weighted share average share share average share options option price options option price 1 Outstanding, beginning of period* 2,522,700 $ 21.19 — $ — Granted 558,600 $ 22.88 3,081,300 $ 21.50 Forfeited (6,300) $ 21.19 (6,300) $ 21.19 Outstanding, end of period 3,075,000 $ 21.50 3,075,000 $ 21.50 (1) The weighted average remaining contractual life is 6.8 years. No options were exercisable as at the balance sheet date. *Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). The weighted average fair value of share option awards granted, and the weighted average assumptions used in the fair value estimation at the time of grant, calculated by using the Black-Scholes model (a closed-form option pricing model), are as follows: Periods ended June 30, 2020 Three months Six months Share option award fair value (per share option) $ 0.63 $ 0.65 Risk free interest rate 0.37 % 0.97 % Expected lives (1) (years) 4.25 4.25 Expected volatility 12.1 % 12.3 % Dividend yield 5.1 % 5.4 % (1) The maximum contractual term of the share option awards granted in 2020 was seven years. Share option awards have a net-equity settlement feature. The optionee does not have the choice of exercising the net-equity settlement feature; it is at our option whether the exercise of a share option award is settled as a share option or settled using the net-equity settlement feature. TELUS International (Cda) Inc. share options Employees may receive equity share options (equity-settled) to purchase TELUS International (Cda) Inc. common shares at a price equal to, or a multiple of, the fair market value at the time of grant and/or phantom share options (cash-settled) that provide them with exposure to TELUS International (Cda) Inc. common share price appreciation. Share option awards granted under the plan may be exercised over specific periods not to exceed ten years from the time of grant. All equity share option awards and most phantom share option awards have a variable payout (0% – 100%)that depends upon the achievement of TELUS International (Cda) Inc. financial performance and non‑market quality-of-service performance conditions. The following table presents a summary of the activity related to the TELUS International (Cda) Inc. share option plan. Periods ended June 30, 2020 Three months and six months US$ denominated Canadian $ denominated Weighted Number average Number Share of share option share of share option options price 1 options price 2 Outstanding, beginning and end of period 996,620 US$ 31.11 53,832 $ 21.36 (1) The range of share option prices is US $21.90 – US $40.26 per TELUS International (Cda) Inc. equity share and the weighted average remaining contractual life is 7.0 years. (2) The weighted average remaining contractual life is 5.9 years. |
employee future benefits
employee future benefits | 6 Months Ended |
Jun. 30, 2020 | |
employee future benefits | |
employee future benefits | 15 employee future benefits (a) Defined benefit pension plans – details Our defined benefit pension plan expense (recovery) was as follows: 2020 2019 Employee Other Employee Other benefits Financing comp. benefits Financing comp. Three-month periods ended June 30 (millions) expense costs income expense costs income Recognized in ( Note 8 ) ( Note 9 ) ( Note 11 ) Total ( Note 8 ) ( Note 9 ) ( Note 11 ) Total Current service cost $ 23 $ — $ — $ 23 $ 18 $ — $ — $ 18 Past service costs — — — — — — — — Net interest; return on plan assets Interest expense arising from defined benefit obligations accrued — 74 — 74 — 83 — 83 Return, including interest income, on plan assets 1 — (71) (467) (538) — (86) (131) (217) Interest effect on asset ceiling limit — 1 — 1 — 3 — 3 — 4 (467) (463) — — (131) (131) Administrative fees 2 — — 2 1 — — 1 Re-measurements arising from: Financial assumptions 2 — — 1,396 1,396 — — — — Changes in the effect of limiting net defined benefit assets to the asset ceiling — — (28) (28) — — 115 115 $ 25 $ 4 $ 901 $ 930 $ 19 $ — $ (16) $ 3 2020 2019 Employee Other Employee Other benefits Financing comp. benefits Financing comp. Six-month periods ended June 30 (millions) expense costs income expense costs income Recognized in (Note 8) (Note 9) (Note 11) Total (Note 8) (Note 9) (Note 11) Total Current service cost $ 46 $ — $ — $ 46 $ 36 $ — $ — $ 36 Past service costs 3 — — 3 — — — — Net interest; return on plan assets Interest expense arising from defined benefit obligations accrued — 148 — 148 — 167 — 167 Return, including interest income, on plan assets 1 — (142) (32) (174) — (172) (490) (662) Interest effect on asset ceiling limit — 2 — 2 — 5 — 5 — 8 (32) (24) — — (490) (490) Administrative fees 3 — — 3 3 — — 3 Re-measurements arising from: 2 — — 507 507 — — — — Changes in the effect of limiting net defined benefit assets to the asset ceiling — — — — — — 441 441 $ 52 $ 8 $ 475 $ 535 $ 39 $ — $ (49) $ (10) (1) The interest income on the plan assets portion of the employee defined benefit plans net interest amount included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued. (2) The discount rate used to estimate the defined benefit obligations accrued as at June 30, 2020, was 2.75% (December 31, 2019 – 3.10%). (b) Defined contribution plans – expense Our total defined contribution pension plan costs recognized were as follows: Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Union pension plan and public service pension plan contributions $ 5 $ 5 $ 10 $ 11 Other defined contribution pension plans 20 15 36 32 $ 25 $ 20 $ 46 $ 43 |
restructuring and other costs
restructuring and other costs | 6 Months Ended |
Jun. 30, 2020 | |
restructuring and other costs | |
restructuring and other costs | 16 restructuring and other costs (a) Details of restructuring and other costs With the objective of reducing ongoing costs, we incur associated incremental non-recurring restructuring costs, as discussed further in (b) following. We may also incur atypical charges when undertaking major or transformational changes to our business or operating models or post-acquisition business integration. In other costs, we include incremental atypical external costs incurred in connection with business acquisition or disposition activity, as well as significant litigation costs, in respect of losses or settlements, adverse retrospective regulatory decisions and certain incremental atypical costs incurred due to the COVID-19 pandemic. Restructuring and other costs are presented in the Consolidated statements of income and other comprehensive income, as set out in the following table: Restructuring (b) Other (c) Total Periods ended June 30 (millions) 2020 2019 2020 2019 2020 2019 THREE-MONTH Goods and services purchased $ 43 $ 7 $ 17 $ 1 $ 60 $ 8 Employee benefits expense 10 19 — 2 10 21 $ 53 $ 26 $ 17 $ 3 $ 70 $ 29 SIX-MONTH Goods and services purchased $ 89 $ 19 $ 21 $ 7 $ 110 $ 26 Employee benefits expense 20 34 — 5 20 39 $ 109 $ 53 $ 21 $ 12 $ 130 $ 65 (b) Restructuring provisions Employee-related provisions and other provisions, as presented in Note 25, include amounts in respect of restructuring activities. In 2020, restructuring activities included ongoing and incremental efficiency initiatives, some of which involved personnel-related costs and rationalization of real estate. These initiatives were intended to improve our long-term operating productivity and competitiveness. (c) Other During the three-month and six-month periods ended June 30, 2020, incremental external costs were incurred in connection with business acquisition activity. In connection with business acquisitions, non-recurring atypical business integration expenditures that would be considered neither restructuring costs nor part of the fair value of the net assets acquired have been included in other costs. Also during the three-month and six-month periods ended June 30, 2020, other costs were incurred in connection with the COVID-19 pandemic. Incremental costs were incurred due to proactive steps we elected to take to keep our customers and employees safe, including adjustments to real estate cleaning and maintenance frequency, among other items. As well, costs that have been incurred in the normal course but which are unable to contribute normally to the earning of revenues have been deemed atypical. |
property, plant and equipment
property, plant and equipment | 6 Months Ended |
Jun. 30, 2020 | |
property, plant and equipment | |
property, plant and equipment | 17 property, plant and equipment Owned assets Right-of-use lease assets ( Note 19 ) Buildings and Network leasehold Assets under Network Real (millions) Note assets improvements Other Land construction Total assets estate Other Total Total AT COST As at January 1, 2020 $ 31,713 $ 3,314 $ 1,373 $ 48 $ 421 $ 36,869 $ 219 $ 1,267 $ 60 $ 1,546 $ 38,415 Additions 393 15 24 5 666 1,103 54 131 7 192 1,295 Additions arising from business acquisitions 18(b ) 4 12 7 — — 23 — 41 1 42 65 Dispositions, retirements and other (379) 1 (122) — — (500) 1 (24) (9) (32) (532) Assets under construction put into service 263 39 55 — (357) — — — — — — Net foreign exchange differences 2 5 9 — — 16 — 13 — 13 29 As at June 30,2020 $ 31,996 $ 3,386 $ 1,346 $ 53 $ 730 $ 37,511 $ 274 $ 1,428 $ 59 $ 1,761 $ 39,272 ACCUMULATED DEPRECIATION As at January 1, 2020 $ 21,060 $ 2,052 $ 875 $ — $ — $ 23,987 $ 6 $ 174 $ 16 $ 196 $ 24,183 Depreciation 1 767 62 75 — — 904 14 101 9 124 1,028 Dispositions, retirements and other (387) (10) (106) — — (503) — (3) (3) (6) (509) Net foreign exchange differences 1 2 6 — — 9 — 2 — 2 11 As at June 30, 2020 $ 21,441 $ 2,106 $ 850 $ — $ — $ 24,397 $ 20 $ 274 $ 22 $ 316 $ 24,713 NET BOOK VALUE As at December 31, 2019 $ 10,653 $ 1,262 $ 498 $ 48 $ 421 $ 12,882 $ 213 $ 1,093 $ 44 $ 1,350 $ 14,232 As at June 30, 2020 $ 10,555 $ 1,280 $ 496 $ 53 $ 730 $ 13,114 $ 254 $ 1,154 $ 37 $ 1,445 $ 14,559 (1) For the six-month period ended June 30, 2020, depreciation includes $5 in respect of impairment of real estate right-of-use lease assets. As at June 30, 2020, our contractual commitments for the acquisition of property, plant and equipment totalled $205 million over a period ending December 31, 2022 (December 31, 2019 – $136 million over a period ending December 31, 2022). |
intangible assets and goodwill
intangible assets and goodwill | 6 Months Ended |
Jun. 30, 2020 | |
intangible assets and goodwill | |
intangible assets and goodwill | 18 intangible assets and goodwill (a) Intangible assets and goodwill, net Intangible assets with Intangible assets subject to amortization indefinite lives Customer contracts, Total related customer Access to Assets Total intangible relationships and rights-of-way under Spectrum intangible assets and (millions) Note subscriber base 1 Software and other construction Total licences assets Goodwill 1,2 goodwill AT COST As at January 1, 2020 $ 1,032 $ 5,870 $ 135 $ 254 $ 7,291 $ 9,937 $ 17,228 $ 5,673 $ 22,901 Additions — 42 1 281 324 — 324 — 324 Additions arising from business acquisitions (b) 735 20 47 — 802 9 811 772 1,583 Dispositions, retirements and other (including capitalized interest) 9 48 (333) (29) — (314) 17 (297) — (297) Assets under construction put into service — 232 — (232) — — — — — Net foreign exchange differences 37 2 — — 39 — 39 51 90 As at June 30, 2020 $ 1,852 $ 5,833 $ 154 $ 303 $ 8,142 $ 9,963 $ 18,105 $ 6,496 $ 24,601 ACCUMULATED AMORTIZATION As at January 1, 2020 $ 285 $ 4,028 $ 71 $ — $ 4,384 $ — $ 4,384 $ 364 $ 4,748 Amortization 97 322 3 — 422 — 422 — 422 Dispositions, retirements and other (13) (334) 3 — (344) — (344) — (344) Net foreign exchange differences 12 1 — — 13 — 13 — 13 As at June 30, 2020 $ 381 $ 4,017 $ 77 $ — $ 4,475 $ — $ 4,475 $ 364 $ 4,839 NET BOOK VALUE As at December 31, 2019 $ 747 $ 1,842 $ 64 $ 254 $ 2,907 $ 9,937 $ 12,844 $ 5,309 $ 18,153 As at June 30, 2020 $ 1,471 $ 1,816 $ 77 $ 303 $ 3,667 $ 9,963 $ 13,630 $ 6,132 $ 19,762 (1) The opening balance of software and goodwill have been adjusted as set out in (c). (2) Accumulated amortization of goodwill is amortization recorded prior to 2002; there are no accumulated impairment losses in the accumulated amortization of goodwill. As at June 30, 2020, our contractual commitments for the acquisition of intangible assets totalled $48 million over a period ending December 31, 2024 (December 31, 2019 – $45 million over a period ending December 31, 2024). (b) Business acquisitions Competence Call Center On January 31, 2020, we acquired 100% of Competence Call Center, a provider of higher-value-added business services with a focus on customer relationship management and content moderation. The acquisition is complementary to, and was made with a view to growing, our existing lines of business and has been consolidated with our TELUS International (Cda) Inc. subsidiary. The primary factor that contributed to the recognition of goodwill was the earnings capacity of the acquired business in excess of the net tangible and intangible assets acquired (such excess arising from the acquired workforce and the benefits of acquiring an established business). The amount assigned to goodwill is not expected to be deductible for income tax purposes. Individually immaterial transactions During the six-month period ended June 30, 2020, we acquired 100% ownership of businesses complementary to our existing lines of business. The primary factor that gave rise to the recognition of goodwill was the earnings capacity of the acquired businesses in excess of the net tangible and intangible assets acquired (such excess arising from the low level of tangible assets relative to the earnings capacities of the businesses). A portion of the amounts assigned to goodwill may be deductible for income tax purposes. Acquisition-date fair values Acquisition-date fair values assigned to the assets acquired and liabilities assumed are set out in the following table: Individually Competence immaterial Call Center transactions Total 1 Assets Current assets Cash $ 90 $ 1 $ 91 Accounts receivable 2 64 2 66 Other 2 1 3 156 4 160 Non-current assets Property, plant and equipment Owned assets 21 2 23 Right-of-use lease assets 40 2 42 Intangible assets subject to amortization 3 754 48 802 Intangible assets with indefinite lives — 9 9 Other 2 — 2 817 61 878 Total identifiable assets acquired 973 65 1,038 Liabilities Current liabilities Accounts payable and accrued liabilities 42 4 46 Income and other taxes payable 65 — 65 Advance billings and customer deposits — 5 5 Current maturities of long-term debt 11 5 16 118 14 132 Non-current liabilities Long-term debt 214 1 215 Deferred income taxes 218 10 228 432 11 443 Total liabilities assumed 550 25 575 Net identifiable assets acquired 423 40 463 Goodwill 724 48 772 Net assets acquired $ 1,147 $ 88 $ 1,235 Acquisition effected by way of: Cash consideration $ 1,147 $ 84 $ 1,231 Accounts payable and accrued liabilities — 4 4 $ 1,147 $ 88 $ 1,235 (1) The purchase price allocation, primarily in respect of customer contracts, related customer relationships and leasehold interests and deferred income taxes, had not been finalized as of the date of issuance of these consolidated financial statements. As is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of the acquired businesses. Upon having sufficient time to review the books and records of the acquired businesses, we expect to finalize our purchase price allocations. (2) The fair value of accounts receivable is equal to the gross contractual amounts receivable and reflects the best estimates at the acquisition dates of the contractual cash flows expected to be collected. (3) Customer contracts and customer relationships (including those related to customer contracts) are generally expected to be amortized over periods of 10 years; software is expected to be amortized over periods of 3-5 years. Pro forma disclosures The following pro forma supplemental information represents certain results of operations as if the business acquisitions noted above had been completed at the beginning of the fiscal 2020 year. Three months Six months Periods ended June 30, 2020 (millions except per share amounts) As reported 1 Pro forma 2 As reported 1 Pro forma 2 Operating revenues $ 3,728 $ 3,730 $ 7,422 $ 7,475 Net income $ 315 $ 315 $ 668 $ 668 Net income per Common Share * Basic $ 0.23 $ 0.23 $ 0.51 $ 0.51 Diluted $ 0.23 $ 0.23 $ 0.51 $ 0.51 (1) Operating revenues and net income for the three-month period ended June 30, 2020, include: $141 and $9, respectively, in respect of Competence Call Center. Operating revenues and net income (loss) for the six-month period ended June 30, 2020, include: $226 and $(11), respectively, in respect of Competence Call Center. (2) Pro forma amounts for the three-month and six-month periods ended June 30, 2020, reflect the acquired businesses. The results of the acquired businesses have been included in our Consolidated statements of income and other comprehensive income effective the dates of acquisition. * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). The pro forma supplemental information is based on estimates and assumptions that are believed to be reasonable. The pro forma supplemental information is not necessarily indicative of our consolidated financial results in future periods or the actual results that would have been realized had the business acquisitions been completed at the beginning of the periods presented. The pro forma supplemental information includes incremental property, plant and equipment depreciation, intangible asset amortization, financing and other charges as a result of the acquisitions, net of the related tax effects. (c) Business acquisitions – prior period In 2019, we acquired businesses that were complimentary to our existing lines of business. As at December 31, 2019, purchase price allocations had not been finalized. During the six-month period ended June 30, 2020, the preliminary acquisition-date values for software, goodwill and deferred income taxes were increased (decreased) by $32 million, $(22 million) and $10 million, respectively; as required by IFRS-IASB, comparative amounts have been adjusted so as to reflect those increases (decreases) effective the acquisition date. (d) Business acquisitions - subsequent to reporting period Mobile Klinik On July 1, 2020, we acquired 100% of Mobile Klinik, a storefront wireless device repair and sales business complementary to our existing wireless lines of business. Consideration of $165 million consisted of: cash of $138 million; working capital adjustments; and contingent consideration of $31 million, payment of which is dependent upon achieving revenue, profitability, store expansion and wireless subscriber addition targets through 2023. The investment was made with a view to growing our wireless business. As of July 31, 2020, our initial provision for the net identifiable assets is in the range of $65 million – $85 million; as is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of the acquired business. Upon having sufficient time to review the books and records of the acquired business, as well as obtaining new and additional information about the facts and circumstances as of the acquisition date, we will adjust the provisional amounts for identifiable assets acquired and liabilities assumed and thus finalize our purchase price allocation. |
leases
leases | 6 Months Ended |
Jun. 30, 2020 | |
leases | |
leases | 19 leases Maturity analyses of lease liabilities are set out in Note 4(b) and Note 26(g) ; the period interest expense in respect thereof is set out in Note 9 . The additions to, the depreciation charges for, and the carrying amount of, right-of-use lease assets are set out in Note 17 . We have not currently elected to exclude low-value and short-term leases from lease accounting. Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Income from subleasing right-of-use lease assets Co-location sublet revenue included in operating service revenues $ 5 $ 4 $ 9 $ 9 Other sublet revenue included in other operating income 7 $ — $ 1 $ 1 $ 1 Lease payments $ 98 $ 81 $ 200 $ 184 |
other long-term assets
other long-term assets | 6 Months Ended |
Jun. 30, 2020 | |
other long-term assets | |
other long-term assets | 20 other long-term assets June 30, December 31, As at (millions) Note 2020 2019 Pension assets $ 1 $ 155 Unbilled customer finance receivables 4(a) 319 225 Derivative assets 4(d) 413 76 Costs incurred to obtain or fulfill a contract with a customer 100 109 Real estate joint venture advances 21(b) 114 104 Investment in real estate joint venture 21(b) 2 3 Investment in associate 21 72 — Portfolio investments 1 122 110 Prepaid maintenance 61 55 Other 151 82 $ 1,355 $ 919 (1) Fair value measured at reporting date using significant other observable inputs (Level 2). The costs incurred to obtain and fulfill contracts with customers are set out in the following table: Three months Six months Costs incurred to Costs incurred to Obtain Obtain contracts with Fulfill contracts contracts with Fulfill contracts Periods ended June 30, 2020 (millions) customers with customers Total customers with customers Total Balance, beginning of period $ 331 $ 14 $ 345 $ 344 $ 14 $ 358 Additions 54 1 55 113 2 115 Amortization (71) (1) (72) Balance, end of period $ 314 $ 14 $ 328 $ 314 $ 14 $ 328 Current 1 $ 221 $ 7 $ 228 Non-current $ 314 $ 14 $ 328 (1) Presented on the Consolidated statements of financial position in prepaid expenses. |
real estate joint ventures and
real estate joint ventures and investment in associate | 6 Months Ended |
Jun. 30, 2020 | |
real estate joint ventures and investment in associate | |
real estate joint ventures and investment in associate | 21 real estate joint ventures and investment in associate (a) General Real estate joint ventures In 2013, we partnered, as equals, with two arm’s-length parties in a residential, retail and commercial real estate redevelopment project, TELUS Sky, in Calgary, Alberta. The new-build tower, scheduled for completion in 2020, is to be built to the LEED Platinum standard. Associate On January 13, 2020, for cash consideration of approximately $73 million, we acquired a 28% basic equity interest in Miovision Technologies Incorporated, an associate that is complementary to, and is viewed to grow, our existing Internet of Things business; our judgment is that we obtained significant influence over the associate concurrent with obtaining the newly acquired equity interest. (b) Real estate joint ventures Summarized financial information June 30, December 31, As at (millions) 2020 2019 ASSETS Current assets Cash and temporary investments, net $ 8 $ 15 Other 17 18 25 33 Non-current assets Investment property under development 331 318 Other 14 2 345 320 $ 370 $ 353 LIABILITIES AND OWNERS’ EQUITY Current liabilities Accounts payable and accrued liabilities $ 40 $ 25 Construction holdback liabilities — 15 40 40 Non-current liabilities Construction credit facilities 342 312 Other — 3 342 315 382 355 Owners’ equity TELUS 1 (3) 1 Other partners (9) (3) (12) (2) $ 370 $ 353 (1) The equity amounts recorded by the real estate joint venture differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint venture. Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Revenue $ — $ — $ — $ — Depreciation and amortization $ — $ — $ — $ — Interest expense 1 $ — $ — $ — $ — Net income (loss) and comprehensive income (loss) 2 $ (31) $ — $ (33) $ (1) (1) During the three-month and six-month periods ended June 30, 2020, the real estate joint venture capitalized $1 (2019 - $3) and $4 (2019 - $6), respectively, of financing costs. (2) As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income. Our real estate joint ventures activity Our real estate joint ventures investment activity is set out in the following table. 2020 2019 Loans and Loans and Three-month periods ended June 30 (millions) receivables 1 Equity 2 Total receivables 1 Equity 2 Total Related to real estate joint ventures’ statements Comprehensive income attributable to us 3 $ — $ (10) $ (10) $ — $ — $ — Related to real estate joint ventures’ statements of financial position Items not affecting currently reported cash flows Construction credit facilities financing costs charged by us and other (Note 7) 1 — 1 1 — 1 Cash flows in the current reporting period Construction credit facilities Amounts advanced 3 — 3 9 — 9 Financing costs paid to us (1) — (1) (1) — (1) Funds we advanced or contributed, excluding construction credit facilities — 5 5 — — — Net increase 3 (5) (2) 9 — 9 Real estate joint ventures carrying amounts Balance, beginning of period 111 (10) 101 77 5 82 Valuation provision recorded in beginning of period balance now recorded in joint venture — 6 6 — — — Balance, end of period $ 114 $ (9) $ 105 $ 86 $ 5 $ 91 2020 2019 Loans and Loans and Six-month periods ended June 30 (millions) receivables 1 Equity 2 Total receivables 1 Equity 2 Total Related to real estate joint ventures’ statements of income and other comprehensive income Comprehensive income attributable to us 3 $ — $ (11) $ (11) $ — $ — $ — Related to real estate joint ventures’ statements of financial position Items not affecting currently reported cash flows Construction credit facilities financing costs charged by us (Note 7) 2 — 2 2 — 2 Cash flows in the current reporting period Construction credit facilities Amounts advanced 10 — 10 17 — 17 Financing costs paid to us (2) — (2) (2) — (2) Funds we advanced or contributed, excluding construction credit facilities — 5 5 Funds repaid to us and earnings distributed — (1) (1) — — — Net increase 10 (7) 3 17 — 17 Real estate joint ventures carrying amounts Balance, beginning of period 104 (2) 102 69 5 74 Balance, end of period $ 114 $ (9) $ 105 $ 86 $ 5 $ 91 (1) Loans and receivables are included in our Consolidated statements of financial position as Real estate joint venture advances and are comprised of advances under construction credit facilities. (2) We account for our interests in the real estate joint ventures using the equity method of accounting. As at June 30, 2020, and December 31, 2019, we had recorded equity losses in excess of our recorded equity investment in respect of one of the real estate joint ventures; such resulting balance has been included in long-term liabilities ( Note 27 ). (3) As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income. We have entered into a lease agreement with the TELUS Sky real estate joint venture; for lease accounting purposes, the lease commenced during the three-month period ended March 31, 2019. Real estate joint ventures commitments and contingent liabilities Construction commitments The TELUS Sky real estate joint venture is expected to spend a total of approximately $475 million (December 31, 2019 – $450 million) on the construction of a mixed-use tower. As at June 30, 2020, the real estate joint venture’s construction-related contractual commitments were approximately $23 million through to 2020 (December 31, 2019 – $37 million through to 2020). Construction credit facilities The TELUS Sky real estate joint venture has a credit agreement, maturing August 31, 2021, with Canadian financial institutions (as 66‑2/3% lender) and TELUS Corporation (as 33‑1/3% lender) to provide $342 million of construction financing for the project. The construction credit facilities contain customary real estate construction financing representations, warranties and covenants and are secured by demand debentures constituting first fixed and floating charge mortgages over the underlying real estate assets. The construction credit facilities are available by way of bankers’ acceptance or prime loan and bear interest at rates in line with similar construction financing facilities. June 30, December 31, As at (millions) Note 2020 2019 Construction credit facilities commitment – TELUS Corporation Undrawn 4(b ) $ — $ 10 Advances 114 104 114 114 Construction credit facilities commitment – other 228 228 $ 342 $ 342 |
short-term borrowings
short-term borrowings | 6 Months Ended |
Jun. 30, 2020 | |
short-term borrowings | |
short-term borrowings | 22 short-term borrowings On July 26, 2002, one of our subsidiaries, TELUS Communications Inc., entered into an agreement with an arm’s-length securitization trust associated with a major Schedule I bank under which it is able to sell an interest in certain trade receivables up to a maximum of $500 million (December 31, 2019 – $500 million). The term of this revolving-period securitization agreement ends December 31, 2021, and it requires minimum cash proceeds of $100 million from monthly sales of interests in certain trade receivables. TELUS Communications Inc. is required to maintain a credit rating of at least BB (December 31, 2019 – BB) from DBRS Limited or the securitization trust may require the sale program to be wound down prior to the end of the term. Sales of trade receivables in securitization transactions are recognized as collateralized short-term borrowings and thus do not result in our de-recognition of the trade receivables sold. When we sell our trade receivables, we retain reserve accounts, which are retained interests in the securitized trade receivables, and servicing rights. As at June 30, 2020, we had sold to the trust (but continued to recognize) trade receivables of $118 million (December 31, 2019 – $124 million). Short-term borrowings of $100 million (December 31, 2019 – $100 million) are comprised of amounts advanced to us by the arm’s-length securitization trust pursuant to the sale of trade receivables. The balance of short-term borrowings (if any) is comprised of amounts drawn on our bilateral bank facilities. |
accounts payable and accrued li
accounts payable and accrued liabilities | 6 Months Ended |
Jun. 30, 2020 | |
accounts payable and accrued liabilities | |
accounts payable and accrued liabilities | 23 accounts payable and accrued liabilities June 30, December 31, As at (millions) 2020 2019 Accrued liabilities $ 1,102 $ 1,091 Payroll and other employee-related liabilities 482 422 Restricted share units liability 95 77 1,679 1,590 Trade accounts payable 834 892 Interest payable 170 160 Other 190 107 $ 2,873 $ 2,749 |
advance billings and customer d
advance billings and customer deposits | 6 Months Ended |
Jun. 30, 2020 | |
advance billings and customer deposits | |
advance billings and customer deposits | 24 advance billings and customer deposits June 30, December 31, As at (millions) 2020 2019 Advance billings $ 548 $ 522 Deferred customer activation and connection fees 8 9 Customer deposits 14 14 Contract liabilities 570 545 Other 126 130 $ 696 $ 675 Contract liabilities represent our future performance obligations to customers in respect of services and/or equipment and for which we have received consideration from the customer or for which an amount is due from the customer. Our contract liability balances, and the changes in those balances, are set out in the following table: Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Balance, beginning of period $ 824 $ 814 $ 801 $ 811 Revenue deferred in previous period and recognized in current period (593) (642) (577) (647) Net additions arising from operations 571 638 573 641 Additions arising from business acquisitions 18(b) — 1 5 6 Balance, end of period $ 802 $ 811 $ 802 $ 811 Current $ 721 $ 732 Non-current 27 Deferred revenues 70 65 Deferred customer activation and connection fees 11 14 $ 802 $ 811 Reconciliation of contract liabilities presented in the consolidated statements of financial position – current Gross contract liabilities $ 721 $ 732 Reclassification to contract assets for contracts with contract liabilities less than contract assets (142) (155) Reclassification from contract assets for contracts with contract assets less than contract liabilities (9) (5) $ 570 $ 572 |
provisions
provisions | 6 Months Ended |
Jun. 30, 2020 | |
provisions | |
provisions | 25 provisions Asset retirement Employee- Written put (millions) obligation related options Other Total As at April 1, 2020 $ 497 $ 41 $ 182 $ 122 $ 842 Additions — 10 — 75 85 Reversal — — (70) (2) (72) Use (1) (9) (103) (42) (155) Interest effect 4 — — — 4 Effects of foreign exchange, net — (1) (6) (1) (8) As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 As at January 1, 2020 $ 495 $ 64 $ 196 $ 123 $ 878 Additions — 20 — 95 115 Reversal — — (103) (16) (119) Use (2) (43) (104) (51) (200) Interest effect 7 — 2 — 9 Effects of foreign exchange, net — — 12 1 13 As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 Current $ 10 $ 35 $ — $ 38 $ 83 Non-current 490 6 3 114 613 As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 Asset retirement obligation We establish provisions for liabilities associated with the retirement of property, plant and equipment when those obligations result from the acquisition, construction, development and/or normal operation of the assets. We expect that the cash outflows in respect of the balance accrued as at the financial statement date will occur proximate to the dates these assets are retired. Employee-related The employee-related provisions are largely in respect of restructuring activities (as discussed further in Note 16(b) ). The timing of the cash outflows in respect of the balance accrued as at the financial statement date is substantially short‑term in nature. Written put options In connection with certain business acquisitions, we have established provisions for written put options in respect of non-controlling interests. Provisions for written put options are determined based on the net present value of estimated future earnings results and require us to make key economic assumptions about the future. No cash outflows for the written put options are expected prior to their initial exercisability. Other The provisions for other include: legal claims; non-employee-related restructuring activities; contract termination costs and onerous contracts related to business acquisitions; and costs incurred in connection with the COVID-19 pandemic. Other than as set out following, we expect that the cash outflows in respect of the balance accrued as at the financial statement date will occur over an indeterminate multi-year period. As discussed further in Note 29 , we are involved in a number of legal claims and we are aware of certain other possible legal claims. In respect of legal claims, we establish provisions, when warranted, after taking into account legal assessments, information presently available, and the expected availability of recourse. The timing of cash outflows associated with legal claims cannot be reasonably determined. In connection with business acquisitions, we have established provisions for contingent consideration, contract termination costs and onerous contracts acquired. |
long-term debt
long-term debt | 6 Months Ended |
Jun. 30, 2020 | |
long-term debt | |
long-term debt | 26 long-term debt (a) Details of long-term debt June 30, December 31, As at (millions) Note 2020 2019 Senior unsecured TELUS Corporation senior notes (b) $ 14,729 $ 14,479 TELUS Corporation commercial paper (c) — 1,015 TELUS Communications Inc. debentures 622 621 Secured TELUS International (Cda) Inc. credit facility (e) 1,167 431 Other 279 267 16,797 16,813 Lease liabilities (f) 1,721 1,661 Long-term debt $ 18,518 $ 18,474 Current $ 562 $ 1,332 Non-current 17,956 17,142 Long-term debt $ 18,518 $ 18,474 (b) TELUS Corporation senior notes The notes are senior unsecured and unsubordinated obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries. The indentures governing the notes contain certain covenants that, among other things, place limitations on our ability, and the ability of certain of our subsidiaries, to: grant security in respect of indebtedness; enter into sale-leaseback transactions; and incur new indebtedness. Interest is payable semi-annually. The notes require us to make an offer to repurchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase upon the occurrence of a change in control triggering event, as defined in the supplemental trust indenture. At any time prior to the respective maturity dates set out in the table below, the notes are redeemable at our option, in whole at any time, or in part from time to time, on not fewer than 30 days’ and not more than 60 days’ prior notice. On or after the respective redemption present value spread cessation dates set out in the table below, the notes are redeemable at our option, in whole but not in part, on not fewer than 30 days’ and not more than 60 days’ prior notice, at redemption prices equal to 100% of the principal amounts thereof. In addition, accrued and unpaid interest, if any, will be paid to the date fixed for redemption. Principal face amount Redemption present Effective Outstanding at value spread Issue interest Originally financial Basis Cessation Series Issued Maturity price rate 1 issued statement date points date 3.60% Notes, Series CM November 2013 January 2021 2 $ 997.15 3.65 % $ 400 million $ NIL 35 3 N/A 3.20% Notes, Series CO April 2014 April 2021 2 $ 997.39 3.24 % $ 500 million $ NIL 30 3 Mar. 5, 2021 2.35% Notes, Series CT March 2015 March 2022 $ 997.31 2.39 % $ 1.0 billion $ 1.0 billion 35.5 3 Feb. 28, 2022 3.35% Notes, Series CJ December 2012 March 2023 $ 998.83 3.36 % $ 500 million $ 500 million 40 3 Dec. 15, 2022 3.35% Notes, Series CK April 2013 April 2024 $ 994.35 3.41 % $ 1.1 billion $ 1.1 billion 36 3 Jan. 2, 2024 3.75% Notes, Series CQ September 2014 January 2025 $ 997.75 3.78 % $ 800 million $ 800 million 38.5 3 Oct. 17, 2024 3.75% Notes, Series CV December 2015 March 2026 $ 992.14 3.84 % $ 600 million $ 600 million 53.5 3 Dec. 10, 2025 2.75% Notes, Series CZ July 2019 July 2026 $ 998.73 2.77 % $ 800 million $ 800 million 33 3 May 8, 2026 2.80% U.S. Dollar Notes 4 September 2016 February 2027 US$ 991.89 2.89 % US$ 600 million US$ 600 million 20 5 Nov. 16, 2026 3.70% U.S. Dollar Notes 4 March 2017 September 2027 US$ 998.95 3.71 % US$ 500 million US$ 500 million 20 5 June 15, 2027 2.35% Notes, Series CAC May 2020 January 2028 $ 997.25 2.39 % $ 600 million $ 600 million 48 3 Nov. 27, 2027 3.625% Notes, Series CX March 2018 March 2028 $ 989.49 3.75 % $ 600 million $ 600 million 37 3 Dec. 1, 2027 3.30% Notes, Series CY April 2019 May 2029 $ 991.75 3.40 % $ 1.0 billion $ 1.0 billion 43.5 3 Feb. 2, 2029 3.15% Notes, Series CAA December 2019 February 2030 $ 996.49 3.19 % $ 600 million $ 600 million 39.5 3 Nov. 19, 2029 4.40% Notes, Series CL April 2013 April 2043 $ 997.68 4.41 % $ 600 million $ 600 million 47 3 Oct. 1, 2042 5.15% Notes, Series CN November 2013 November 2043 $ 995.00 5.18 % $ 400 million $ 400 million 50 3 May 26, 2043 4.85% Notes, Series CP Multiple 6 April 2044 $ 987.91 6 4.93 % 6 $ 500 million 6 $ 900 million 6 46 3 Oct. 5, 2043 4.75% Notes, Series CR September 2014 January 2045 $ 992.91 4.80 % $ 400 million $ 400 million 51.5 3 July 17, 2044 4.40% Notes, Series CU March 2015 January 2046 $ 999.72 4.40 % $ 500 million $ 500 million 60.5 3 July 29, 2045 4.70% Notes, Series CW Multiple 7 March 2048 $ 998.06 7 4.71 % 7 $ 325 million 7 $ 475 million 7 58.5 3 Sept. 6, 2047 4.60% U.S. Dollar Notes 4 June 2018 November 2048 US$ 987.60 4.68 % US$ 750 million US$ 750 million 25 5 May 16, 2048 4.30% U.S. Dollar Notes 4 May 2019 June 2049 US$ 990.48 4.36 % US$ 500 million US$ 500 million 25 5 Dec. 15, 2048 3.95% Notes, Series CAB Multiple 8 February 2050 $ 997.54 8 3.97 % 8 $ 400 million 8 $ 800 million 8 57.5 3 Aug. 16, 2049 (1) The effective interest rate is that which the notes would yield to an initial debt holder if held to maturity. (2) On May 22, 2020, we exercised our right to early redeem, on June 23, 2020, all of our 3.60% Notes, Series CM and all of our 3.20% Notes, Series CO. The long-term debt prepayment premium recorded in the three-month period ended June 30, 2020, was $18 million before income taxes (see Note 9 ). (3) The redemption price is equal to the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to maturity, other than in the case of the Series CT, Series CU, Series CV, Series CW, Series CX, Series CY, Series CZ, Series CAA, Series CAB and Series CAC notes, for which it is calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof. (4) We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively converted the principal payments and interest obligations to Canadian dollar obligations as follows: Canadian Interest rate dollar equivalent Exchange Series fixed at principal rate 2.80% U.S. Dollar Notes 2.95 % $ 792 million $ 1.3205 3.70% U.S. Dollar Notes 3.41 % $ 667 million $ 1.3348 4.60% U.S. Dollar Notes 4.41 % $ 974 million $ 1.2985 4.30% U.S. Dollar Notes 4.27 % $ 672 million $ 1.3435 (5) The redemption price is equal to the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate plus the redemption present value spread calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof. (6) $500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%. (7) $325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued at an issue price of $1,014.11 and an effective interest rate of 4.61% in March 2018. (8) $400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%. (c) TELUS Corporation commercial paper TELUS Corporation has an unsecured commercial paper program, which is backstopped by our $2.25 billion syndicated credit facility (see (d) ) and is to be used for general corporate purposes, including capital expenditures and investments. This program enables us to issue commercial paper, subject to conditions related to debt ratings, up to a maximum aggregate amount at any one time of $1.4 billion (December 31, 2019 – $1.4 billion). Foreign currency forward contracts are used to manage currency risk arising from issuing commercial paper denominated in U.S. dollars. Commercial paper debt is due within one year and is classified as a current portion of long-term debt, as the amounts are fully supported, and we expect that they will continue to be supported, by the revolving credit facility, which has no repayment requirements within the next year. As at June 30, 2020, we had $NIL (December 31, 2019 - $1,015 million) of commercial paper outstanding, which was denominated in U.S. dollars (US$NIL; December 31, 2019 - US$781 million). (d) TELUS Corporation credit facility As at June 30, 2020, TELUS Corporation had an unsecured revolving $2.25 billion bank credit facility, expiring on May 31, 2023, with a syndicate of financial institutions, which is to be used for general corporate purposes, including the backstopping of commercial paper. The TELUS Corporation credit facility bears interest at prime rate, U.S. Dollar Base Rate, a bankers’ acceptance rate or London interbank offered rate (LIBOR) (as such terms are 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. These tests are that our leverage ratio must not exceed 4.25:1.00 and our operating cash flow to interest expense ratio must not be less than 2.00:1.00, all as defined in the credit facility. Continued access to the TELUS Corporation credit facility is not contingent upon TELUS Corporation maintaining a specific credit rating. June 30, December 31, As at (millions) 2020 2019 Net available $ 2,250 $ 1,235 Backstop of commercial paper — 1,015 Gross available $ 2,250 $ 2,250 We had $191 million of letters of credit outstanding as at June 30, 2020 (December 31, 2019 – $184 million), issued under various uncommitted facilities; such letter of credit facilities are in addition to the ability to provide letters of credit pursuant to our committed bank credit facility. (e) TELUS International (Cda) Inc. credit facility As at June 30, 2020, TELUS International (Cda) Inc. had a credit facility, secured by its assets, expiring on January 28, 2025 (December 31, 2019 - December 20, 2022), with a syndicate of financial institutions (as 87.5% lender) and, joined in 2020, TELUS Corporation (as 12.5% lender). The credit facility is comprised of a US$600 million (December 31, 2019 – US$350 million) revolving component and an amortizing US$600 million (December 31, 2019 – US$120 million) term loan component. The credit facility is non-recourse to TELUS Corporation. The outstanding revolving component and term loan component had a weighted average interest rate of 2.68% as at June 30, 2020. In connection with the acquisition of Competence Call Center during the three-month period ended March 31, 2020, as discussed further in Note 18(b) , incremental amounts were drawn on the facility. June 30, 2020 December 31, 2019 Revolving Term loan Revolving Term loan As at (millions) component component 1 Total component component Total Available US$ 204 US$ N/A US$ 204 US$ 121 US$ N/A US$ 121 Outstanding Due to other 347 518 865 229 336 Due to TELUS Corporation 49 74 123 N/A N/A N/A US$ 600 US$ 592 US$ 1,192 US$ 350 US$ 107 US$ 457 (1) We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on US$103 of the debt to a fixed rate of 2.64%. Relative to amounts owed to the syndicate of financial institutions, excluding TELUS Corporation, we have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert an amortizing amount of US$415 of the principal payments and associated interest obligations to European euro obligations with an effective fixed interest rate of 0.65% and an effective fixed economic exchange rate of US$1.0932:€1.00. These have been accounted for as a net investment hedge in a foreign operation (see Note 4 ). TELUS International (Cda) Inc.’s 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. TELUS International (Cda) Inc.’s quarter-end net debt to operating cash flow ratio must not exceed: 4.75:1.00 during fiscal 2020; 4.25:1.00 during fiscal 2021; and 3.50:1.00 subsequently. The quarter-end operating cash flow 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. The term loan is subject to an amortization schedule which requires that 5% of the principal advanced be repaid each year of the term of the agreement, with the balance due at maturity. (f) Lease liabilities Lease liabilities are subject to amortization schedules, which results in the principal being repaid over various periods, including reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 4.37% as at June 30, 2020. (g) Long-term debt maturities Anticipated requirements to meet long-term debt repayments, calculated for long-term debts owing as at June 30, 2020, are as follows: Composite long-term debt Other denominated in Canadian dollars U.S. dollars currencies Long-term Long-term debt, debt, Currency swap agreement Years ending December 31 excluding Leases excluding Leases amounts to be exchanged Leases (millions) leases (Note 19) Total leases (Note 19) (Receive) 1 Pay Total (Note 19) Total 2020 (remainder of year) $ 7 $ 144 $ 151 $ 18 $ 11 $ (14) $ 14 $ 29 $ 23 $ 203 2021 188 267 455 36 23 (28) 28 59 44 558 2022 1,263 144 1,407 36 22 (28) 28 58 34 1,499 2023 529 122 651 36 18 (28) 28 54 29 734 2024 1,115 110 1,225 36 8 (28) 28 44 23 1,292 2025-2029 4,686 299 4,985 2,516 15 (1,935) 1,907 2,503 46 7,534 Thereafter 4,788 301 5,089 1,704 1 (1,703) 1,646 1,648 20 6,757 Future cash outflows in respect of composite long-term debt principal repayments 12,576 1,387 13,963 4,382 98 (3,764) 3,679 4,395 219 18,577 Future cash outflows in respect of associated interest and like carrying costs 2 6,452 375 6,827 2,672 19 (2,575) 2,409 2,525 49 9,401 Undiscounted contractual maturities ( Note 4(b) ) $ 19,028 $ 1,762 $ 20,790 $ 7,054 $ 117 $ (6,339) $ 6,088 $ 6,920 $ 268 $ 27,978 (1) Where applicable cash flows reflect foreign exchange rates as at June 30, 2020. (2) F uture cash outflows in respect of associated interest and like carrying costs for commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect as at June 30, 2020. |
other long-term liabilities
other long-term liabilities | 6 Months Ended |
Jun. 30, 2020 | |
other long-term liabilities | |
other long-term liabilities | 27 other long-term liabilities June 30, December 31, As at (millions) Note 2020 2019 Contract liabilities 24 $ 70 $ 70 Other 6 7 Deferred revenues 76 77 Pension benefit liabilities 934 580 Other post-employment benefit liabilities 58 53 Restricted share unit and deferred share unit liabilities 13 42 Derivative liabilities 4(d) 27 26 Investment in real estate joint ventures 21(b) 11 5 Other 27 10 1,146 793 Deferred customer activation and connection fees 24 11 13 $ 1,157 $ 806 |
owners' equity
owners' equity | 6 Months Ended |
Jun. 30, 2020 | |
owners' equity | |
owners' equity | 28 owners' equity (a) Common Share capital - general Our authorized share capital is as follows: June 30, December 31, As at 2020 2019 First Preferred Shares 1 billion 1 billion Second Preferred Shares 1 billion 1 billion Common Shares 4 billion 4 billion* * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). Only holders of Common Shares may vote at our general meetings, with each holder of Common Shares entitled to one vote per Common Share held at all such meetings so long as not less than 66‑2/3% of the issued and outstanding Common Shares are owned by Canadians. With respect to priority in payment of dividends and in the distribution of assets in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding up our affairs, preferences are as follows: First Preferred Shares; Second Preferred Shares; and finally Common Shares. During the three-month period ended March 31, 2020, we issued approximately 58 million * shares for gross proceeds of $1.5 billion. As at June 30, 2020, approximately 32 million* Common Shares were reserved for issuance, from Treasury, under a dividend reinvestment and share purchase plan (see Note 13(b) ), approximately 24 million* Common Shares were reserved for issuance, from Treasury, under a restricted share unit plan (see Note 14(b) ) and approximately 93 million* Common Shares were reserved for issuance, from Treasury, under a share option plan (see Note 14(d) ). (b) Common Share split On February 13, 2020, we announced a subdivision of our Common Shares on a two-for-one basis to be effected March 17, 2020. All references, unless otherwise indicated, to the number of shares authorized, the number of shares outstanding, the number of shares reserved; per share amounts and share-based compensation information in the consolidated financial statements have been retrospectively restated to reflect the impact of the subdivision. (c) Purchase of Common Shares for cancellation pursuant to normal course issuer bid As referred to in Note 3 , we may purchase a portion of our Common Shares for cancellation pursuant to normal course issuer bids in order to maintain or adjust our capital structure. In December 2019, we received approval for a normal course issuer bid to purchase and cancel up to 16 million * of our Common Shares (up to a maximum amount of $250 million) from January 2, 2020, to January 1, 2021. (d) Subsidiary with significant non-controlling interest Our TELUS International (Cda) Inc. subsidiary is incorporated under the Business Corporations Act (British Columbia) and has geographically dispersed operations with principal places of business in Asia, Central America, Europe and North America. During the three-month period ended March 31, 2020, non-controlling shareholders purchased TELUS International (Cda) Inc. shares from treasury for $209 million, which resulted in the non-controlling interests’ ownership interest increasing to 37.7% as at March 31, 2020, up from 35.9% as at December 31, 2019. Associated with the transaction, an adjustment reflecting the approximately 1.8% increase in the non-controlling interest in the net book value of the subsidiary was credited to non-controlling interests in our Consolidated statement of changes in owners’ equity, and the net balance of proceeds was credited to contributed surplus. On a continuing basis, we review our corporate organization and effect changes as appropriate so as to enhance the value of TELUS Corporation. This process can affect our subsidiaries, including TELUS International (Cda) Inc.; during the three-month period ended June 30, 2020, this process resulted in the non-controlling interests’ ownership interest decreasing to 36.2% as at June 30, 2020, with an adjustment reflecting the approximately 1.5% decrease in the non-controlling interest in the net book value of the subsidiary having been credited to non-controlling interests in our Consolidated statement of changes in owners’ equity, offset by an equal amount having been charged to contributed surplus. Summarized financial information Three months Six months As at, or for the three-month and six-month periods ended (millions) 1 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Statement of financial position Current assets $ 591 $ 437 Non-current assets $ 2,763 $ 1,057 Current liabilities $ 586 $ 531 Non-current liabilities $ 1,838 $ 647 Statement of income and other comprehensive income Revenue $ 611 $ 336 $ 1,077 $ 645 Net income $ 71 $ 8 $ 78 $ 33 Comprehensive income $ 45 $ 19 $ 85 $ 51 (1) As required by IFRS-IASB, this summarized financial information excludes inter-company eliminations. * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
contingent liabilities NTD - le
contingent liabilities NTD - legal edits not reflected | 6 Months Ended |
Jun. 30, 2020 | |
contingent liabilities NTD - legal edits not reflected | |
contingent liabilities NTD - legal edits not reflected | 29 contingent liabilities Claims and lawsuits General A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other wireless carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other wireless carriers and telecommunications service providers. It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands. However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the items enumerated following. Certified class actions Certified class actions against us include the following: Per minute billing class action In 2008 a class action was brought in Ontario against us alleging breach of contract, breach of the Ontario Consumer Protection Act , breach of the Competition Act and unjust enrichment, in connection with our practice of “rounding up” wireless airtime to the nearest minute and charging for the full minute. The action sought certification of a national class. In November 2014, an Ontario class only was certified by the Ontario Superior Court of Justice in relation to the breach of contract, breach of Consumer Protection Act , and unjust enrichment claims; all appeals of the certification decision have now been exhausted. At the same time, the Ontario Superior Court of Justice declined to stay the claims of our business customers notwithstanding an arbitration clause in our customer service agreements with those customers. This latter decision was appealed and on May 31, 2017, the Ontario Court of Appeal dismissed our appeal. The Supreme Court of Canada granted us leave to appeal this decision and on April 4, 2019, granted our appeal and stayed the claims of business customers. Call set-up time class actions In 2005 a class action was brought against us in British Columbia alleging that we have engaged in deceptive trade practices in charging for incoming calls from the moment the caller connects to the network, and not from the moment the incoming call is connected to the recipient. In 2011, the Supreme Court of Canada upheld a stay of all of the causes of action advanced by the plaintiff in this class action, with one exception, based on the arbitration clause that was included in our customer service agreements. The sole exception was the cause of action based on deceptive or unconscionable practices under the British Columbia Business Practices and Consumer Protection Act , which the Supreme Court of Canada declined to stay. In January 2016, the British Columbia Supreme Court certified this class action in relation to the claim under the Business Practices and Consumer Protection Act . The class is limited to residents of British Columbia who contracted wireless services with us in the period from January 21, 1999, to April 2010. We have appealed the certification decision. A companion class action was brought against us in Alberta at the same time as the British Columbia class action. The Alberta class action duplicates the allegations in the British Columbia action, but has not proceeded to date and is not certified. Subject to a number of conditions, including court approval, we have now settled both the British Columbia and the Alberta class actions. Uncertified class actions Uncertified class actions against us include: 9-1-1 class actions In 2008 a class action was brought in Saskatchewan against us and other Canadian telecommunications carriers alleging that, among other matters, we failed to provide proper notice of 9-1-1 charges to the public, have been deceitfully passing them off as government charges, and have charged 9-1-1 fees to customers who reside in areas where 9-1-1 service is not available. The plaintiffs advance causes of action in breach of contract, misrepresentation and false advertising and seek certification of a national class. A virtually identical class action was filed in Alberta at the same time, but the Alberta Court of Queen’s Bench declared that class action expired against us as of 2009. No steps have been taken in this proceeding since 2016. Public Mobile class actions In 2014 class actions were brought against us in Quebec and Ontario on behalf of Public Mobile’s customers, alleging that changes to the technology, services and rate plans made by us contravene our statutory and common law obligations. In particular, the Quebec action alleges that our actions constitute a breach of the Quebec Consumer Protection Act , the Quebec Civil Code , and the Ontario Consumer Protection Act . It has not yet proceeded to an authorization hearing. The Ontario class action alleges negligence, breach of express and implied warranty, breach of the Competition Act , unjust enrichment, and waiver of tort . No steps have been taken in this proceeding since it was filed and served. Handset subsidy class action In 2016 a class action was brought in Quebec against us and other telecommunications carriers alleging that we breached the Quebec Consumer Protection Act and the Civil Code of Quebec by making false or misleading representations relating to the handset subsidy provided to our wireless customers, and by charging our wireless customers inflated rate plan prices and termination fees higher than those permitted under the Act . The claim was later amended to also seek compensation for amounts paid by class members to unlock their mobile devices. The authorization hearing was held on April 30 and May 1, 2019, and on July 15, 2019, the Quebec Superior Court dismissed the authorization application. The Plaintiff has appealed this decision. Other claims Claims and possible claims received by us include: Area code 867 blocking claim In 2018 a claim was brought against us alleging breach of a Direct Connection Call Termination Services Agreement, breach of a duty of good faith, and intentional interference with economic relations. The plaintiffs allege that we have improperly blocked calls to area code 867 (including to customers of a plaintiff), for which a second plaintiff provides wholesale session initiation trunking services. The plaintiffs seek damages of $135 million. On April 23, 2019, the Ontario Superior Court stayed this claim on the ground that the court has no jurisdiction over, or is not the appropriate forum, for the subject matter of this action. Summary We believe that we have good defences to the above matters. Should the ultimate resolution of these matters differ from management’s assessments and assumptions, a material adjustment to our financial position and the results of our operations, including cash flows, could result. Management’s assessments and assumptions include that reliable estimates of any such exposure cannot be made considering the continued uncertainty about: the nature of the damages that may be sought by the plaintiffs; the causes of action that are being, or may ultimately be, pursued; and, in the case of the uncertified class actions, the causes of action that may ultimately be certified. |
related party transactions
related party transactions | 6 Months Ended |
Jun. 30, 2020 | |
related party transactions | |
related party transactions | 30 related party transactions (a) Transactions with key management personnel Our key management personnel have authority and responsibility for overseeing, planning, directing and controlling our activities and consist of our Board of Directors and our Executive Leadership Team. Total compensation expense for key management personnel, and the composition thereof, is as follows: Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Short-term benefits $ 2 $ 2 $ 4 $ 5 Post-employment pension 1 and other benefits 1 1 2 2 Share-based compensation 2 11 5 10 20 $ 14 $ 8 $ 16 $ 27 (1) Our Executive Leadership Team members are members of our Pension Plan for Management and Professional Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit pension plans. (2) In respect of restricted share units with neither an equity settlement feature nor market performance conditions, we accrue a liability equal to the product of the number of vesting restricted share units multiplied by the fair market value of the corresponding Common Shares at the end of the reporting period. Similarly, we accrue a liability for the notional subset of our restricted share units without an equity settlement feature and with market performance conditions using a Monte Carlo simulation-determined fair value. Restricted share units that have an equity settlement feature are accounted for as equity instruments. The expense for restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect. As disclosed in Note 14 , we made initial awards of share-based compensation in 2020 and 2019, including, as set out in the following table, to our key management personnel. As most of these awards are cliff-vesting or graded-vesting and have multi-year requisite service periods, the related expense will be recognized rateably over a period of years and thus only a portion of the 2020 and 2019 initial awards are included in the amounts in the table above. Six-month periods ended June 30 2020 2019 Number of Number of restricted Notional Grant-date restricted Notional Grant-date ($ in millions) share units* value 1 fair value 1 share units value 1 fair value 1 Awarded in period 811,954 $ 20 $ 28 — $ — $ — (1) Notional value is determined by multiplying the Common Share price at the time of award by the number of units awarded. The grant-date fair value differs from the notional value because the fair values of some awards have been determined using a Monte Carlo simulation (see Note 14(b) ). No share options were awarded to our key management personnel in fiscal 2020 or 2019. * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). The liability amounts accrued for share-based compensation awards to key management personnel are as follows: June 30, December 31, As at (millions) 2020 2019 Restricted share units $ 26 $ 25 Deferred share units 1 3 23 $ 29 $ 48 (1) Our Directors’ Deferred Share Unit Plan provides that, in addition to his or her annual equity grant of deferred share units, a director may elect to receive his or her annual retainer and meeting fees in deferred share units, Common Shares or cash. Deferred share units entitle directors to a specified number of, or a cash payment based on the value of, our Common Shares. Deferred share units are paid out when a director ceases to be a director, for any reason, at a time elected by the director in accordance with the Directors’ Deferred Share Unit Plan ; during the three-month and six-month periods ended June 30, 2020, $NIL (2019 – $3) and $NIL (2019 – $3), respectively, was paid out. Employment agreements with members of the Executive Leadership Team typically provide for severance payments if an executive’s employment is terminated without cause: generally 18–24 months of base salary, benefits and accrual of pension service in lieu of notice, and 50% of base salary in lieu of an annual cash bonus. In the event of a change in control, Executive Leadership Team members are not entitled to treatment any different than that given to our other employees with respect to non-vested share-based compensation. (b) Transactions with defined benefit pension plans During the three-month and six-month periods ended June 30, 2020, we provided management and administrative services to our defined benefit pension plans; the charges for these services were on a cost recovery basis and amounted to $1 million (2019 – $2 million) and $3 million (2019 – $3 million), respectively. (c) Transactions with real estate joint venture and associate During the three-month and six-month periods ended June 30, 2020 and 2019, we had transactions with the TELUS Sky real estate joint ventures, which is a related party, as set out in Note 21. As at June 30, 2020, we had recorded lease liabilities of $76 million (December 31, 2019 – $77 million) in respect of our TELUS Sky lease and monthly cash payments are made in accordance with the lease agreement; one-third of the amounts is due to our economic interest in the real estate joint venture. |
additional statement of cash fl
additional statement of cash flow information | 6 Months Ended |
Jun. 30, 2020 | |
additional statement of cash flow information | |
additional statement of cash flow information | 31 additional statement of cash flow information (a) Statements of cash flows – operating activities and investing activities Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 OPERATING ACTIVITIES Net change in non-cash operating working capital Accounts receivable $ (1) $ (197) $ 24 $ (223) Inventories 33 25 102 42 Contract assets 114 3 199 1 Prepaid expenses 52 (26) 5 (110) Accounts payable and accrued liabilities 210 253 90 190 Income and other taxes receivable and payable, net 67 (53) 145 (269) Advance billings and customer deposits 1 (3) 16 3 Provisions (72) 14 (117) (36) $ 404 $ 16 $ 464 $ (402) INVESTING ACTIVITIES Cash payments for capital assets, excluding spectrum licences Capital asset additions Gross capital expenditures Property, plant and equipment 17 $ (693) $ (718) $ (1,295) $ (1,357) Intangible assets subject to amortization 18 (174) (166) (324) (299) (867) (884) (1,619) (1,656) Additions arising from leases 17 110 110 192 232 Additions arising from non-monetary transactions 1 4 6 8 Capital expenditures 5 (756) (770) (1,421) (1,416) Change in associated non-cash investing working capital 62 125 (53) (22) $ (694) $ (645) $ (1,474) $ (1,438) (b) Changes in liabilities arising from financing activities Statement of cash flows Non-cash changes Foreign Redemptions, exchange Beginning Issued or repayments or movement End of (millions) of period received payments ( Note 4(e) ) Other period THREE-MONTH PERIOD ENDED JUNE 30, 2019 Dividends payable to holders of Common Shares $ 329 $ — $ (329) $ — $ 339 $ 339 Dividends reinvested in shares from Treasury — — 22 — (22) — $ 329 $ — $ (307) $ — $ 317 $ 339 Short-term borrowings $ 500 $ — $ (400) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 12,136 $ 1,674 $ — $ (70) $ (25) $ 13,715 TELUS Corporation commercial paper 1,105 748 (1,554) (6) — 293 TELUS Communications Inc. debentures 621 — — — — 621 TELUS International (Cda) Inc. credit facility 405 — (2) (8) 1 396 Lease liabilities 1,508 — (64) (8) 118 1,554 Derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt – liability (asset) 41 1,554 (1,551) 76 (28) 92 15,816 3,976 (3,171) (16) 66 16,671 To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt — (1,554) 1,554 — — — $ 15,816 $ 2,422 $ (1,617) $ (16) $ 66 $ 16,671 THREE-MONTH PERIOD ENDED JUNE 30, 2020 Dividends payable to holders of Common Shares $ 371 $ — $ (371) $ — $ 372 $ 372 Dividends reinvested in shares from Treasury — — 131 — (131) — $ 371 $ — $ (240) $ — $ 241 $ 372 Short-term borrowings $ 100 $ — $ — $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 14,763 $ 1,000 $ (900) $ (132) $ (2) $ 14,729 TELUS Corporation commercial paper 459 — (454) (5) — — TELUS Communications Inc. debentures 621 — — — 1 622 TELUS International (Cda) Inc. credit facility 1,285 — (68) (50) — 1,167 Other 281 — (3) — 1 279 Lease liabilities 1,699 — (81) (6) 109 1,721 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (655) 461 (434) 158 78 (392) 18,453 1,461 (1,940) (35) 187 18,126 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (461) 461 — — — $ 18,453 $ 1,000 $ (1,479) $ (35) $ 187 $ 18,126 Statement of cash flows Non-cash changes Foreign Redemptions, exchange Beginning Issued or repayments or movement (millions) of period received payments ( Note 4(e)) Other End of period SIX-MONTH PERIOD ENDED JUNE 30, 2019 Dividends payable to holders of Common Shares $ 326 $ — $ (655) $ — $ 668 $ 339 Dividends reinvested in shares from Treasury — — 45 — (45) — $ 326 $ — $ (610) $ — $ 623 $ 339 Short-term borrowings $ 100 $ 407 $ (407) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 12,186 $ 1,674 $ — $ (122) $ (23) $ 13,715 TELUS Corporation commercial paper 774 1,901 (2,363) (19) — 293 TELUS Communications Inc. debentures 620 — — — 1 621 TELUS International (Cda) Inc. credit facility 419 13 (21) (17) 2 396 Lease liabilities 1,483 — (152) (13) 236 1,554 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (73) 2,363 (2,361) 141 22 92 15,409 5,951 (4,897) (30) 238 16,671 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (2,363) 2,363 — — — $ 15,409 $ 3,588 $ (2,534) $ (30) $ 238 $ 16,671 SIX-MONTH PERIOD ENDED JUNE 30, 2020 Dividends payable to holders of Common Shares $ 352 $ — $ (723) $ — $ 743 $ 372 Dividends reinvested in shares from Treasury — — 261 — (261) — $ 352 $ — $ (462) $ — $ 482 $ 372 Short-term borrowings $ 100 $ 200 $ (200) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 14,479 $ 1,000 $ (900) $ 150 $ — $ 14,729 TELUS Corporation commercial paper 1,015 612 (1,692) 65 — — TELUS Communications Inc. debentures 621 — — — 1 622 TELUS International (Cda) Inc. credit facility 431 765 (68) 45 (6) 1,167 Other 267 — (191) — 203 279 Lease liabilities 1,661 — (165) 17 208 1,721 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (37) 1,699 (1,650) (194) (210) (392) 18,437 4,076 (4,666) 83 196 18,126 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (1,699) 1,699 — — — $ 18,437 $ 2,377 $ (2,967) $ 83 $ 196 $ 18,126 |
condensed interim consolidate_6
condensed interim consolidated financial statements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
condensed interim consolidated financial statements | |
Basis of presentation | (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 condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2019. Our condensed interim consolidated financial statements are expressed in Canadian dollars and follow the same accounting policies and methods of their application as set out in our consolidated financial statements for the year ended December 31, 2019. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS-IASB) and Canadian generally accepted accounting principles. 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 consolidated financial statements for the three-month and six-month periods ended June 30, 2020, were authorized by our Board of Directors for issue on July 31, 2020. |
Use of estimates and judgments | (b) Use of estimates and judgments The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates (including about the future effects of the COVID-19 pandemic), assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Inventories | (c) Inventories Our inventories primarily consist of wireless handsets, parts and accessories totalling $ 266 million at June 30, 2020 (December 31, 2019 – $375 million) and communications equipment held for resale. Costs of goods sold for the three-month and six-month periods ended June 30, 2020, totalled $384 million (2019- $484 million) and $786 million (2019 - $943 million), respectively. |
capital structure financial p_2
capital structure financial policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
capital structure financial policies | |
Disclosure of financial objectives that support the entity's long-term strategy | As at, or for the 12-month periods ended, June 30 ($ in millions) Objective 2020 2019 Components of debt and coverage ratios Net debt 1 $ 17,664 $ 16,602 EBITDA – excluding restructuring and other costs 2 $ 5,769 $ 5,649 Net interest cost 3 $ 797 $ 706 Debt ratio Net debt to EBITDA – excluding restructuring and other costs – 4 3.06 2.94 Coverage ratios Earnings coverage 5 3.6 4.2 EBITDA – excluding restructuring and other costs interest coverage 6 7.2 8.0 (1) Net debt and total capitalization are calculated as follows: As at June 30 Note 2020 2019 Long-term debt 26 $ 18,518 $ 16,579 Debt issuance costs netted against long-term debt 96 105 Derivative (assets) liabilities, net (392) 92 Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated long-term debt — excluding tax effects 313 (57) Cash and temporary investments, net (971) (217) Short-term borrowings 22 100 100 Net debt 17,664 16,602 Common equity 12,046 10,504 Less: accumulated other comprehensive income included in common equity above (283) 17 Total capitalization $ 29,427 $ 27,123 (2) EBITDA – excluding restructuring and other costs is calculated as follows: EBITDA — Restructuring excluding EBITDA and other costs restructuring (Note 5) (Note 16) and other costs Add Six-month period ended June 30, 2020 $ 2,768 $ 130 $ 2,898 Year ended December 31, 2019 5,554 134 5,688 Deduct Six-month period ended June 30, 2019 (2,752) (65) (2,817) EBITDA – excluding restructuring and other costs $ 5,570 $ 199 $ 5,769 (3) Net interest cost is defined as financing costs, excluding employee defined benefit plans net interest, recoveries on long-term debt prepayment premium and repayment of debt, calculated on a 12-month trailing basis (expenses recorded for long-term debt prepayment premium, if any, are included in net interest cost) (see Note 9 ). (4) Our long-term objective range for this ratio is 2.20 – 2.70 times. The ratio as at June 30, 2020, is outside the long-term objective range. We may permit, and have permitted, this ratio to go outside the objective range (for long-term investment opportunities), but we will endeavour to return this ratio to within the objective range in the medium term (following upcoming spectrum auctions), as we believe that this range is supportive of our long-term strategy. We are in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our net debt to operating cash flow ratio to exceed 4.00: 1.00 (see Note 26 (d) ); the calculation of the debt ratio is substantially similar to the calculation of the leverage ratio covenant in our credit facilities. (5) Earnings coverage is defined by Canadian Securities Administrators National Instrument 41-101 as net income before borrowing costs and income tax expense, divided by borrowing costs (interest on long-term debt; interest on short-term borrowings and other; long-term debt prepayment premium), and adding back capitalized interest , all such amounts excluding amounts attributable to non-controlling interests. (6) EBITDA – excluding restructuring and other costs interest coverage is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost. This measure is substantially similar to the coverage ratio covenant in our credit facilities. |
Disclosure of the dividend payout ratio | For the 12-month periods ended June 30 Objective 2020 2019 Determined using management measures Dividend payout ratio – net of dividend reinvestment plan effects 60%–75% 1 61 % 133 % Determined using most comparable IFRS-IASB measures Ratio of dividends declared to cash provided by operating activities less capital expenditures (excluding spectrum licences) 84 % 122 % (1) Our objective range for the dividend payout ratio is 60%-75% of free cash flow on a prospective basis. 12-month periods ended June 30 (millions) 2020 2019 Dividends declared $ 1,433 $ 1,307 Amount of dividends declared reinvested in Common Shares (516) (90) Dividends declared, net of dividend reinvestment plan effects $ 917 $ 1,217 * Free cash flow does not have any standardized meaning prescribed by IFRS-IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define free cash flow as EBITDA (operating revenues less goods and services purchased and employee benefits expense) excluding certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as found in the consolidated statements of cash flows. We have issued guidance on, and report, free cash flow because it is a key measure that management, and investors, use to evaluate the performance of our business. Our calculation of free cash flow, and the reconciliation to cash provided by operating activities, is as follows: 12-month periods ended June 30 (millions) Note 2020 2019 EBITDA 5 $ 5,570 $ 5,336 Deduct non-cash gains from sale of property, plant and equipment (13) (43) Restructuring and other costs, net of disbursements 22 43 Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment device financing 43 (172) Effects of lease principal 31(b) (346) (152) Leases accounted for as finance leases prior to adoption of IFRS 16 136 26 Deduct non-recurring gains and equity income related to real estate joint ventures 21(b) — (171) Donation to TELUS Friendly Future Foundation in Common Shares — 100 Items from consolidated statements of cash flows: Share-based compensation, net 14 23 2 Net employee defined benefit plans expense 15 85 Employer contributions to employee defined benefit plans (40) (46) Interest paid (764) (654) Interest received 8 9 Capital expenditures (excluding spectrum licences) 5 (2,911) (2,889) Free cash flow before income taxes 1,819 1,474 Income taxes paid, net of refunds (308) (562) Free cash flow 1,511 912 Add (deduct): Capital expenditures (excluding spectrum licences) 5 2,911 2,889 Adjustments to reconcile to Cash provided by operating activities 194 163 Cash provided by operating activities $ 4,616 $ 3,964 |
financial instruments (Tables)
financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
financial instruments | |
Schedule of maximum exposure (excluding income tax effects) to credit risk | June 30, December 31, As at (millions) 2020 2019 Cash and temporary investments, net $ 971 $ 535 Accounts receivable 2,323 2,187 Contract assets 750 1,065 Derivative assets 423 84 $ 4,467 $ 3,871 |
Analysis of the age of customer accounts receivable | June 30, 2020 December 31, 2019 As at (millions) Note Gross Allowance Net 1 Gross Allowance Net 1 Customer accounts receivable, net of allowance for doubtful accounts Less than 30 days past billing date $ 826 $ (22) $ 804 $ 803 $ (10) $ 793 30-60 days past billing date 262 (15) 247 331 (8) 323 61-90 days past billing date 129 (14) 115 74 (5) 69 More than 90 days past billing date 114 (27) 87 73 (14) 59 Unbilled customer finance receivables 717 (26) 691 523 (18) 505 $ 2,048 $ (104) $ 1,944 $ 1,804 $ (55) $ 1,749 Current $ 1,719 $ (94) $ 1,625 $ 1,570 $ (46) $ 1,524 Non-current 20 329 (10) 319 234 (9) 225 $ 2,048 $ (104) $ 1,944 $ 1,804 $ (55) $ 1,749 (1) Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b) ). |
Summary of activity related to the allowance for doubtful accounts | Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Balance, beginning of period $ 56 $ 43 $ 55 $ 53 Additions (doubtful accounts expense) 46 10 58 21 Accounts written off, net of recoveries (6) (11) (18) (33) Other 8 — 9 1 Balance, end of period $ 104 $ 42 $ 104 $ 42 |
Summary of contract assets and related impairment allowance activity | June 30, 2020 December 31, 2019 As at (millions) Gross Allowance Net (Note 6(c)) Gross Allowance Net (Note 6(c)) Contract assets, net of impairment allowance To be billed and thus reclassified to accounts receivable during: The 12-month period ending one year hence $ 730 $ (41) $ 689 $ 952 $ (42) $ 910 The 12-month period ending two years hence 209 (12) 197 322 (14) 308 Thereafter 16 (1) 15 21 (1) 20 $ 955 $ (54) $ 901 $ 1,295 $ (57) $ 1,238 |
Schedule of contractual maturities of undiscounted financial liabilities, Non-derivative | Non-derivative Derivative Composite long-term debt Long-term Non-interest debt, bearing excluding Currency swap agreement Currency swap agreement financial Short-term leases 1 Leases amounts to be exchanged 2 amounts to be exchanged As at June 30, 2020 (millions) liabilities borrowings 1 (Note 26) (Note 26) (Receive) Pay Other (Receive) Pay Total 2020 (balance of year) $ 2,329 $ — $ 352 $ 213 $ (80) $ 73 $ 4 $ (251) $ 244 $ 2,884 2021 161 101 867 398 (160) 151 1 (203) 205 1,521 2022 10 — 1,904 252 (160) 151 8 — — 2,165 2023 8 — 1,137 214 (160) 150 — — — 1,349 2024 8 — 1,694 177 (160) 150 — — — 1,869 2025-2029 20 — 9,153 475 (2,451) 2,393 — — — 9,590 Thereafter — — 10,975 418 (3,168) 3,020 — — — 11,245 Total $ 2,536 $ 101 $ 26,082 $ 2,147 $ (6,339) $ 6,088 $ 13 $ (454) $ 449 $ 30,623 Total ( Note 26(g) ) $ 27,978 (1) Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at June 30, 2020. (2) The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swaps receive column, have been determined based upon the currency exchange rates in effect as at June 30, 2020. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swaps pay column as gross cash flows are exchanged pursuant to the currency swap agreements. |
Schedule of contractual maturities of undiscounted financial liabilities, Derivative | Non-derivative Derivative Composite long-term debt Non-interest Construction Long-term bearing credit facilities debt, Currency swap agreement Currency swap agreement As at December 31, financial Short-term commitment excluding amounts to be exchanged 2 amounts to be exchanged 2019 (millions) liabilities borrowings 1 (Note 21) leases 1 Leases (Receive) Pay Other (Receive) Pay Total 2020 $ $ 3 $ 10 $ 1,657 $ 373 $ (1,140) $ 1,153 $ — $ (917) $ 921 $ 4,699 2021 43 103 — 338 (119) 118 — — — 2,181 2022 7 — — 207 (119) 118 8 — — 2,456 2023 5 — — 189 (119) 118 — — — 1,214 2024 5 — — 157 (119) 118 — — — 1,756 2025-2029 4 — — 429 (1,919) 1,944 — — — 7,769 Thereafter — — — 388 (3,019) 3,020 — — — 10,491 Total $ 2,703 $ 106 $ 10 $ 25,619 $ 2,081 $ (6,554) $ 6,589 $ 8 $ (917) $ 921 $ 30,566 Total $ 27,735 (1) Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2019. (2) The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swaps receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2019. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swaps pay column as gross cash flows are exchanged pursuant to the currency swap agreements. |
Sensitivity analysis of exposure to market risks | Six-month periods ended June 30 Net income Other comprehensive income Comprehensive income (increase (decrease) in millions) 2020 2019 2020 2019 2020 2019 Reasonably possible changes in market risks 1 10% change in C$: US$ exchange rate Canadian dollar appreciates $ 4 $ — $ (66) $ (55) $ (62) $ (55) Canadian dollar depreciates $ (4) $ — $ 66 $ 55 $ $ 55 10% change in US$: € exchange rate U.S. dollar appreciates $ — $ — $ (55) $ — $ (55) $ — U.S. dollar depreciates $ — $ — $ 55 $ — $ 55 $ — 25 basis point change in interest rates Interest rates increase Canadian interest rate $ — $ — $ $ 94 $ $ 94 US interest rate $ — $ — $ (129) $ (90) $ (129) $ (90) Combined $ — $ — $ (11) $ 4 $ (11) $ 4 Interest rates decrease Canadian interest rate $ — $ — $ (124) $ (99) $ (124) $ (99) US interest rate $ — $ — $ 137 $ 95 $ 137 $ 95 Combined $ — $ — $ $ (4) $ $ (4) 25% 2 change in Common Share price 3 Price increases $ (8) $ (4) $ 3 $ 1 $ (5) $ (3) Price decreases $ 13 $ 19 $ (3) $ (1) $ $ (1) These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. The sensitivity analysis assumes that we would realize the changes in exchange rates and market interest rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption. No consideration has been made for a difference in the notional number of Common Shares associated with share-based compensation awards made during the reporting period that may have arisen due to a difference in the Common Share price. (2) To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used. Reflecting a six-month data period and calculated on a monthly basis, the volatility of our Common Share price as at June 30, 2020, was 22.8% (2019 – 12.5%). (3) The hypothetical effects of changes in the price of our Common Shares are restricted to those which would arise from our share-based compensation awards that are accounted for as liability instruments and the associated cash-settled equity swap agreements. |
Schedule of derivative financial instruments measured at fair value on a recurring basis | June 30, 2020 December 31, 2019 Maximum Fair value 1 Maximum Fair value 1 maturity Notional and carrying Price or maturity Notional and carrying Price or As at (millions) Designation date amount value rate date amount value rate Current Assets 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated purchases HFH 3 2021 $ 249 $ 8 US$1.00: C$1.32 — $ — $ — — Currency risk arising from U.S. dollar revenues HFT 4 2021 $ 76 2 US$1.00: C$1.36 2020 $ 36 1 US$1.00: C$1.30 Changes in share-based compensation costs ( Note 14(b) ) HFH 3 — $ — — — 2020 $ 72 4 $24.40* Currency risk associated with European euro-denominated business acquisition HFH 3 — $ — — — 2020 $ 472 3 €1.00: US$1.12 $ 10 $ 8 Other Long-Term Assets 2 Derivatives used to manage Currency risks arising from U.S. dollar-denominated long-term debt 6 ( Note 26(b)-(c) ) HFH 3 2049 $ 5,495 $ 413 US$1.00: C$1.30 2048 $ 3,068 $ 76 US$1.00: C$1.28 Current Liabilities 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated purchases HFH 3 2021 $ 123 $ 3 US$1.00: C$1.40 2020 $ 412 $ 6 US$1.00: C$1.32 Changes in share-based compensation costs ( Note 14(b) ) HFH 3 2020 $ 72 4 $ 24.39 * — $ — — — Currency risk arising from U.S. dollar-denominated long-term debt ( Note 26(b)-(c) ) HFH 3 — $ — — — 2020 $ 1,037 17 US$1.00: C$1.32 Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 ( Notes 18(b), 26(e) ) HFH 5 2024 $ 33 2 €1.00: US$1.09 — $ — — — Interest rate risk associated with non-fixed rate credit facility amounts drawn ( Note 26(e) ) HFH 3 2022 $ 8 — 2022 $ 8 — $ 9 $ 23 Other Long-Term Liabilities 2 Derivatives used to manage Currency risk arising from U.S. dollar-denominated long-term debt 6 ( Note 26(b)-(c) ) HFH 3 — $ — $ — — 2049 $ 2,485 US$1.00: C$1.34 Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 ( Notes 18(b), 26(e) ) HFH 5 2025 $ 563 19 €1.00: US$1.09 — $ — — — Interest rate risk associated with non-fixed rate credit facility amounts drawn ( Note 26(e) ) HFH 3 2022 $ 133 8 2022 $ 130 $ 27 $ 26 * Amounts reflect retrospective application of March 17, 2020, share split (See Note 28(b) ). (1) Fair value measured at reporting date using significant other observable inputs (Level 2). (2) Derivative financial assets and liabilities are not set off. (3) Designated 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. (4) Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied. (5) Designated as a hedge of a net investment in a foreign operation and hedge accounting is applied. 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. (6) We designate only the spot element as the hedging item. As at June 30, 2020, the foreign currency basis spread included in the fair value of the derivative instruments, and which is used for purposes of assessing hedge ineffectiveness, was $92 (December 31, 2019 – $38). (7) We designate only the spot element as the hedging item. As at June 30, 2020, the foreign currency basis spread included in the fair value of the derivative instruments, and which is used for purposes of assessing hedge ineffectiveness was $2. |
Schedule of long-term debt amortized cost and fair value | June 30, 2020 December 31, 2019 Carrying Carrying As at (millions) value Fair value value Fair value Long-term debt, excluding leases ( Note 26 ) $ 16,797 $ 18,121 $ 16,813 $ 17,930 |
Schedule of gains and losses, excluding income tax effects, on derivative instruments classified as cash flow hedging items | Amount of gain (loss) recognized in other Gain (loss) reclassified from other comprehensive comprehensive income income to income (effective portion) (Note 11) (effective portion) ( Note 11 ) Amount Periods ended June 30 (millions) Note 2020 2019 Location 2020 2019 THREE-MONTH Derivatives used to manage currency risk Arising from U.S. dollar-denominated purchases $ (13) $ (7) Goods and services purchased $ 5 $ 4 Arising from U.S. dollar-denominated long-term debt 1 26(b)-(c) (216) (29) Financing costs (129) (58) Arising from net investment in a foreign operation 2 (21) — Financing costs (3) — (250) (36) (127) (54) Derivatives used to manage other market risk Arising from changes in share-based compensation costs and other 14(b) — (5) Employee benefits expense 1 (1) $ (250) $ (41) $ (126) $ (55) SIX-MONTH Derivatives used to manage currency risk Arising from U.S. dollar-denominated purchases $ 18 $ (15) Goods and services purchased $ 7 $ 9 Arising from U.S. dollar-denominated long-term debt 1 26(b)-(c) 424 (151) Financing costs 223 (123) Arising from net investment in a foreign operation 2 (22) — Financing costs — — 420 (166) 230 (114) Derivatives used to manage other market risk Arising from changes in share-based compensation costs and other 14(b) (10) 5 Employee benefits expense (1) 6 $ 410 $ (161) $ 229 $ (108) (1) Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amount for the three-month and six-month periods ended June 30, 2020, were $(4) (2019 – $NIL) and $54 (2019 - $7), respectively. (2) Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amount for the three-month and six-month periods ended June 30, 2020, were $2 and $2, respectively. |
Schedule of gains and losses arising from derivative instruments classified as held for trading | Gain recognized in income on derivatives Three months Six months Periods ended June 30 (millions) Location 2020 2019 2020 2019 Derivatives used to manage currency risk Financing costs $ 3 $ 3 $ 4 $ 5 |
segment information (Tables)
segment information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
segment information | |
Reconciliation of revenue and income before income taxes by segment | Wireless Wireline Eliminations Consolidated Three-month periods ended June 30 (millions) 2020 2019 2020 2019 2020 2019 2020 2019 Operating revenues External revenues Service $ 1,485 $ 1,534 $ 1,765 $ 1,552 $ — $ — $ 3,250 $ 3,086 Equipment 347 444 59 57 — — 406 501 Revenues arising from contracts with customers 1,832 1,978 1,824 1,609 — — 3,656 3,587 Other operating income (1) 5 73 5 — — 72 10 1,831 1,983 1,897 1,614 — — 3,728 3,597 Intersegment revenues 15 14 64 60 (79) (74) — — $ 1,846 $ 1,997 $ 1,961 $ 1,674 $ (79) $ (74) $ 3,728 $ 3,597 EBITDA 1 $ 870 $ 919 $ 489 $ 454 $ — $ — $ 1,359 $ 1,373 CAPEX, excluding spectrum licences 2 $ 234 $ 223 $ 522 $ 547 $ — $ — $ 756 $ 770 Operating revenues – external (above) $ 3,728 $ 3,597 Goods and services purchased 1,458 1,466 Employee benefits expense 911 758 EBITDA (above) 1,359 1,373 Depreciation 505 470 Amortization 220 163 Operating income 634 740 Financing costs 202 189 Income before income taxes $ 432 $ 551 Six-month periods ended June 30 Wireless Wireline Eliminations Consolidated (millions) 2020 2019 2020 2019 2020 2019 2020 2019 Operating revenues External revenues Service $ 3,008 $ 3,034 $ 3,487 $ 3,072 $ — $ — $ 6,495 $ 6,106 Equipment 709 863 115 107 — — 824 970 Revenues arising from contracts with customers 3,717 3,897 3,602 3,179 — — 7,319 7,076 Other operating income (2) 10 105 17 — — 103 27 3,715 3,907 3,707 3,196 — — 7,422 7,103 Intersegment revenues 29 27 127 116 (156) (143) — — $ 3,744 $ 3,934 $ 3,834 $ 3,312 $ (156) $ (143) $ 7,422 $ 7,103 EBITDA 1 $ 1,804 $ 1,827 $ 964 $ 925 $ — $ — $ 2,768 $ 2,752 CAPEX, excluding spectrum licences 2 $ 428 $ 400 $ 993 $ 1,016 $ — $ — $ 1,421 $ 1,416 Operating revenues – external (above) $ 7,422 $ 7,103 Goods and services purchased 2,870 2,887 Employee benefits expense 1,784 1,464 EBITDA (above) 2,768 2,752 Depreciation 1,028 940 Amortization 422 310 Operating income 1,318 1,502 Financing costs 394 357 Income before income taxes $ 924 $ 1,145 (1) Earnings before interest, income taxes, depreciation and amortization (EBITDA) does not have any standardized meaning prescribed by IFRS- IASB and is therefore unlikely to be comparable to similar measures presented by other issuers; we define EBITDA as operating revenues less goods and services purchased and employee benefits expense. We have issued guidance on, and report, EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized in measuring compliance with certain debt covenants. (2) Total capital expenditures (CAPEX); see Note 31(a) for a reconciliation of capital expenditures, excluding spectrum licences to cash payments for capital assets, excluding spectrum licences reported in the Consolidated statements of cash flows. |
revenue from contracts with c_2
revenue from contracts with customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
revenue from contracts with customers | |
Schedule of revenues | June 30, December 31, As at (millions) 2020 2019 Estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations to be recognized as revenue in a future period 1, 2 During the 12-month period ending one year hence $ 2,227 $ 2,405 During the 12-month period ending two years hence 748 930 Thereafter 33 40 $ 3,008 $ 3,375 (1) Excludes constrained variable consideration amounts, amounts arising from contracts originally expected to have a duration of one year or less and, as a permitted practical expedient, amounts arising from contracts that are not affected by revenue recognition timing differences arising from transaction price allocation or from contracts under which we may recognize and bill revenue in an amount that corresponds directly with our completed performance obligations. (2) IFRS-IASB requires the explanation of when we expect to recognize as revenue the amounts disclosed as the estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations. The estimated amounts disclosed are based upon contractual terms and maturities. Actual minimum transaction price revenues recognized, and the timing thereof, will differ from these estimates primarily due to the frequency with which the actual durations of contracts with customers do not match their contractual maturities. |
Schedule of accounts receivable | June 30, December 31, As at (millions) Note 2020 2019 Customer accounts receivable $ 1,719 $ 1,570 Accrued receivables – customer 220 180 Allowance for doubtful accounts 4(a) (94) (46) 1,845 1,704 Accrued receivables – other 159 258 Accounts receivable – current $ 2,004 $ 1,962 |
Schedule of contract assets | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Balance, beginning of period $ 1,069 $ 1,449 $ 1,238 $ 1,475 Net additions arising from operations 176 350 347 671 Amounts billed in period and thus reclassified to accounts receivable 1 (343) (357) (688) (703) Change in impairment allowance, net 4(a) (2) (2) 3 (4) Other 1 1 1 2 Balance, end of period $ 901 $ 1,441 $ 901 $ 1,441 To be billed and thus reclassified to accounts receivable during: The 12-month period ending one year hence $ 689 $ 1,019 The 12-month period ending two years hence 197 407 Thereafter 15 15 Balance, end of period $ 901 $ 1,441 Reconciliation of contract assets presented in the Consolidated statements of financial position – current Gross contract assets $ 689 $ 1,019 Reclassification to contract liabilities of contracts with contract assets less than contract liabilities 24 (9) (5) Reclassification from contract liabilities of contracts with contract liabilities less than contract assets 24 (142) (155) $ 538 $ 859 (1) For the three-month and six-month periods ended June 30, 2020, amounts billed for our wireless products and services and reclassified to accounts receivable totalled $268 (2019 – $330) and $557 (2019 – $650), respectively. |
other operating income (Tables)
other operating income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
other operating income | |
Schedule of other operating income | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Government assistance $ 3 $ 5 $ 6 $ 12 Other sublet revenue 19 — 1 1 1 Investment income, gain (loss) on disposal of assets and other 21 (3) 3 (9) 12 Interest income 21(b) 1 1 2 2 Changes in business combination-related provisions 25 71 — 103 — $ 72 $ 10 $ 103 $ 27 |
employee benefits expense (Tabl
employee benefits expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
employee benefits expense | |
Schedule of employee benefit expenses | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Employee benefits expense – gross Wages and salaries $ 901 $ 762 $ 1,781 $ 1,465 Share-based compensation 14 46 30 78 64 Pensions – defined benefit 15(a) 25 19 52 39 Pensions – defined contribution 15(b) 25 20 46 43 Restructuring costs 16(a) 10 19 20 34 Other 43 47 89 89 1,050 897 2,066 1,734 Capitalized internal labour costs, net Contract acquisition costs 20 Capitalized (16) (12) (33) (24) Amortized 13 11 26 23 Contract fulfilment costs 20 Capitalized (1) — (2) (1) Amortized 1 — 2 1 Property, plant and equipment (83) (90) (170) (175) Intangible assets subject to amortization (53) (48) (105) (94) (139) (139) (282) (270) $ 911 $ 758 $ 1,784 $ 1,464 |
financing costs (Tables)
financing costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
financing costs | |
Schedule of financing costs | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Interest expense Interest on long-term debt, excluding lease liabilities – gross $ 169 $ 161 $ 339 $ 311 Interest on long-term debt, excluding lease liabilities - capitalized 1 18(a) (9) (4) (17) (4) Interest on long-term debt, excluding lease liabilities 160 157 322 307 Interest on lease liabilities 19 17 16 35 32 Interest on short-term borrowings and other 2 3 4 8 Interest accretion on provisions 25 4 5 9 11 Long-term debt prepayment premium 26(a) 18 — 18 — 201 181 388 358 Employee defined benefit plans net interest 15 4 — 8 — Foreign exchange (1) 11 1 4 204 192 397 362 Interest income (2) (3) (3) (5) $ 202 $ 189 $ 394 $ 357 Net interest cost 3 $ $ Interest on long-term debt, excluding lease liabilities - capitalized 1 (17) (4) Employee defined benefit plans net interest — $ $ (1) Interest on long-term debt, excluding lease liabilities, interest at a composite rate of 4.33% was capitalized to intangible assets with indefinite lives in the period. |
income taxes (Tables)
income taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
income taxes | |
Expense composition | Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Current income tax expense For the current reporting period $ 83 $ 71 $ 285 $ 197 Adjustments recognized in the current period for income taxes of prior periods (2) (1) (4) (1) 81 70 281 196 Deferred income tax expense Arising from the origination and reversal of temporary differences 32 83 (28) 114 Revaluation of deferred income tax liability to reflect future income tax rates (2) (121) (5) (121) Adjustments recognized in the current period for income taxes of prior periods 6 (1) 8 (1) 36 (39) (25) (8) $ 117 $ 31 $ 256 $ 188 |
Rate reconciliations | Three-month periods ended June 30 ($ in millions) 2020 2019 Income taxes computed at applicable statutory rates $ 113 % $ 147 26.7 % Revaluation of deferred income tax liability to reflect future income tax rates (2) (121) (22.0) Adjustments recognized in the current period for income taxes of prior periods 4 (2) (0.3) Other 2 7 1.2 Income tax expense per Consolidated statements of income and other comprehensive income $ 117 % $ 31 5.6 % Six-month periods ended June 30 ($ in millions) 2020 2019 Income taxes computed at applicable statutory rates $ 243 % $ 308 26.9 % Revaluation of deferred income tax liability to reflect future income tax rates (5) (121) (10.6) Adjustments recognized in the current period for income taxes of prior periods 4 (2) (0.2) Other 14 3 0.3 Income tax expense per Consolidated statements of income and other comprehensive income $ 256 % $ 188 16.4 % |
other comprehensive income (Tab
other comprehensive income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
other comprehensive income | |
Schedule of other comprehensive income | Item never Item never reclassified reclassified Items that may subsequently be reclassified to income to income to income Change in unrealized fair value of derivatives designated as cash flow hedges in current period (Note 4(e)) Derivatives used to manage currency risk Derivatives used to manage other market risks Cumulative Change in Prior period Prior period foreign measurement Employee Gains (gains) losses Gains (gains) losses currency of investment Accumulated defined benefit (losses) transferred to (losses) transferred to translation financial other plan Other Periods ended June 30 (millions) arising net income Total arising net income Total Total adjustment assets comp. income re-measurements comp. income THREE-MONTH Accumulated balance as at April 1, 2019 $ (70) $ 2 $ (68) $ 28 $ — $ (40) Other comprehensive income (loss) Amount arising $ (36) $ 54 18 $ (5) $ 1 (4) 14 11 — 25 $ 16 $ 41 Income taxes $ (4) $ 9 5 $ (2) $ 1 (1) 4 — — 4 8 12 Net 13 (3) 10 11 — 21 $ 8 $ 29 Accumulated balance as at June 30, 2019 $ (57) $ (1) $ (58) $ 39 $ — $ (19) Accumulated balance as at April 1, 2020 $ 294 $ (7) $ 287 $ 94 $ 12 $ 393 Other comprehensive income (loss) Amount arising $ (250) $ 127 (123) $ — $ (1) (1) (124) (10) — (134) $ (901) $ (1,035) Income taxes $ (43) $ 16 (27) $ 1 $ (1) — (27) — — (27) (232) (259) Net (96) (1) (97) (10) — (107) $ (669) $ (776) Accumulated balance as at June 30, 2020 $ 198 $ (8) $ 190 $ 84 $ 12 $ 286 SIX-MONTH Accumulated balance as at January 1, 2019 $ (19) $ — $ (19) $ 22 $ — $ 3 Other comprehensive income (loss) Amount arising $ (166) $ 114 (52) $ 5 $ (6) (1) (53) 17 — (36) $ 49 $ 13 Income taxes $ (32) $ 18 (14) $ 1 $ (1) — (14) — — (14) 17 3 Net (38) (1) (39) 17 — (22) $ 32 $ 10 Accumulated balance as at June 30, 2019 $ (57) $ (1) $ (58) $ 39 $ — $ (19) Accumulated balance as at January 1, 2020 $ 66 $ (1) $ 65 $ 42 $ 12 $ 119 Other comprehensive income (loss) Amount arising $ $ (230) $ (10) $ (9) — $ (475) $ (252) Income taxes $ $ (42) $ (2) $ — (2) — — (122) (66) Net (7) — $ (353) $ (186) Accumulated balance as at June 30, 2020 $ 198 $ (8) $ 190 $ 84 $ 12 $ 286 Attributable to: Common Shares $ 283 Non-controlling interests 3 $ 286 |
per share amounts (Tables)
per share amounts (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
per share amounts | |
Schedule of the denominators of the basic and diluted per share computations | Three months Six months Periods ended June 30 (millions) 2020 2019* 2020 2019* Basic total weighted average number of Common Shares outstanding 1,278 1,203 1,263 1,202 Effect of dilutive securities - Restricted share units 2 — 1 — Diluted total weighted average number of Common Shares outstanding 1,280 1,203 1,264 1,202 * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
dividends per share (Tables)
dividends per share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
dividends per share | |
Dividends per share | Six-month periods ended June 30 2020 2019 (millions except per share amounts) Declared Paid to Declared Paid to Common Share dividends Effective Per share * shareholders Total Effective Per share* shareholders Total Quarter 1 dividend Mar. 11, 2020 $ 0.29125 Apr. 1, 2020 $ Mar. 11, 2019 $ 0.27250 Apr. 1, 2019 $ 329 Quarter 2 dividend Jun. 10, 2020 0.29125 Jul. 2, 2020 Jun. 10, 2019 0.28125 Jul. 2, 2019 339 $ 0.58250 $ 743 $ 0.55375 $ 668 * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). |
share-based compensation (Table
share-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
share-based compensation | |
Details of share-based compensation expense | Periods ended June 30 (millions) 2020 2019 Associated Statement Associated Statement Employee operating of cash Employee operating of cash benefits cash flows benefits cash flows Note expense outflows adjustment expense outflows adjustment THREE-MONTH Restricted share units (b) $ $ — $ $ 17 $ (1) $ 16 Employee share purchase plan (c) (5) — 9 (9) — Share option awards (d) — 4 — 4 $ $ (5) $ 41 $ 30 $ (10) $ 20 SIX-MONTH Restricted share units (b) $ $ — $ $ 40 $ (7) $ 33 Employee share purchase plan (c) (14) — 18 (18) — Share option awards (d) — 6 — 6 $ $ (14) $ $ 64 $ (25) $ 39 |
TELUS Corporation restricted share units | |
share-based compensation | |
Disclosure of restricted share units | The following table presents a summary of outstanding TELUS Corporation non-vested restricted share units. June 30, December 31, Number of non-vested restricted share units as at 2020* 2019* Restricted share units without market performance conditions Restricted share units with only service conditions Notional subset affected by total customer connections performance condition Restricted share units with market performance conditions Notional subset affected by relative total shareholder return performance condition The following table presents a summary of the activity related to TELUS Corporation restricted share units without market performance conditions. Periods ended June 30, 2020 Three months Six months Weighted Weighted Number of restricted average Number of restricted average share units 1 grant-date share units 1 grant-date Non-vested Vested fair value Non-vested Vested fair value Outstanding, beginning of period * Non-vested 9,060,044 — $ 24.06 6,468,954 — $ 23.37 Vested — 12,342 $ 19.10 — 30,800 $ 22.02 Issued Initial award 288,443 — $ 22.63 2,910,882 — $ 25.40 In lieu of dividends 121,198 308 $ 21.52 195,615 308 $ 22.92 Vested (17,008) 17,008 $ 24.00 (28,311) 28,311 $ 23.84 Settled in cash — (17,149) $ 24.01 — (46,910) $ 23.89 Forfeited and cancelled (71,853) — $ 24.29 (166,316) — $ 23.80 Outstanding, end of period Non-vested 9,380,824 — $ 23.98 9,380,824 — $ 23.98 Vested — 12,509 $ 19.15 — 12,509 $ 19.15 (1) Excluding the notional subset of restricted share units affected by the relative total shareholder return performance condition. *Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
TELUS International (Cda) Inc. restricted share units | |
share-based compensation | |
Disclosure of restricted share units | Periods ended June 30, 2020 Three months Six months Number of Weighted Number of Weighted non-vested average non-vested average restricted grant-date restricted grant-date share units fair value share units fair value Outstanding, beginning of period 463,978 US$ 27.55 465,245 US$ 27.49 Granted 59,929 US$ 52.85 59,929 US$ 52.85 Forfeited (1,475) US$ 27.81 (2,742) US$ 27.93 Outstanding, end of period 522,432 US$ 30.45 522,432 US$ 30.45 |
TELUS Corporation share options | |
share-based compensation | |
Disclosure of stock options | Periods ended June 30, 2020 Three months Six months Number of Weighted Number of Weighted share average share share average share options option price options option price 1 Outstanding, beginning of period* 2,522,700 $ 21.19 — $ — Granted 558,600 $ 22.88 3,081,300 $ 21.50 Forfeited (6,300) $ 21.19 (6,300) $ 21.19 Outstanding, end of period 3,075,000 $ 21.50 3,075,000 $ 21.50 (1) The weighted average remaining contractual life is 6.8 years. No options were exercisable as at the balance sheet date. *Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
Schedule of weighted average fair value of share option award granted | Periods ended June 30, 2020 Three months Six months Share option award fair value (per share option) $ 0.63 $ 0.65 Risk free interest rate 0.37 % 0.97 % Expected lives (1) (years) 4.25 4.25 Expected volatility 12.1 % 12.3 % Dividend yield 5.1 % 5.4 % (1) The maximum contractual term of the share option awards granted in 2020 was seven years. |
TELUS International (Cda) Inc. share options | |
share-based compensation | |
Disclosure of stock options | Periods ended June 30, 2020 Three months and six months US$ denominated Canadian $ denominated Weighted Number average Number Share of share option share of share option options price 1 options price 2 Outstanding, beginning and end of period 996,620 US$ 31.11 53,832 $ 21.36 (1) The range of share option prices is US $21.90 – US $40.26 per TELUS International (Cda) Inc. equity share and the weighted average remaining contractual life is 7.0 years. The weighted average remaining contractual life is 5.9 years. |
employee future benefits (Table
employee future benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
employee future benefits | |
Schedule of defined benefit pension plan expense (recovery) | 2020 2019 Employee Other Employee Other benefits Financing comp. benefits Financing comp. Three-month periods ended June 30 (millions) expense costs income expense costs income Recognized in ( Note 8 ) ( Note 9 ) ( Note 11 ) Total ( Note 8 ) ( Note 9 ) ( Note 11 ) Total Current service cost $ 23 $ — $ — $ 23 $ 18 $ — $ — $ 18 Past service costs — — — — — — — — Net interest; return on plan assets Interest expense arising from defined benefit obligations accrued — 74 — 74 — 83 — 83 Return, including interest income, on plan assets 1 — (71) (467) (538) — (86) (131) (217) Interest effect on asset ceiling limit — 1 — 1 — 3 — 3 — 4 (467) (463) — — (131) (131) Administrative fees 2 — — 2 1 — — 1 Re-measurements arising from: Financial assumptions 2 — — 1,396 1,396 — — — — Changes in the effect of limiting net defined benefit assets to the asset ceiling — — (28) (28) — — 115 115 $ 25 $ 4 $ 901 $ 930 $ 19 $ — $ (16) $ 3 2020 2019 Employee Other Employee Other benefits Financing comp. benefits Financing comp. Six-month periods ended June 30 (millions) expense costs income expense costs income Recognized in (Note 8) (Note 9) (Note 11) Total (Note 8) (Note 9) (Note 11) Total Current service cost $ 46 $ — $ — $ 46 $ 36 $ — $ — $ 36 Past service costs 3 — — 3 — — — — Net interest; return on plan assets Interest expense arising from defined benefit obligations accrued — 148 — 148 — 167 — 167 Return, including interest income, on plan assets 1 — (142) (32) (174) — (172) (490) (662) Interest effect on asset ceiling limit — 2 — 2 — 5 — 5 — 8 (32) (24) — — (490) (490) Administrative fees 3 — — 3 3 — — 3 Re-measurements arising from: 2 — — 507 507 — — — — Changes in the effect of limiting net defined benefit assets to the asset ceiling — — — — — — 441 441 $ 52 $ 8 $ 475 $ 535 $ 39 $ — $ (49) $ (10) (1) The interest income on the plan assets portion of the employee defined benefit plans net interest amount included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued. (2) The discount rate used to estimate the defined benefit obligations accrued as at June 30, 2020, was 2.75% (December 31, 2019 – 3.10%). |
Schedule of defined contribution pension plan expense | Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Union pension plan and public service pension plan contributions $ 5 $ 5 $ 10 $ 11 Other defined contribution pension plans 20 15 36 32 $ 25 $ 20 $ 46 $ 43 |
restructuring and other costs (
restructuring and other costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
restructuring and other costs | |
Schedule of restructuring and other costs presented in the Consolidated statements of income and other comprehensive income | Restructuring (b) Other (c) Total Periods ended June 30 (millions) 2020 2019 2020 2019 2020 2019 THREE-MONTH Goods and services purchased $ 43 $ 7 $ 17 $ 1 $ 60 $ 8 Employee benefits expense 10 19 — 2 10 21 $ 53 $ 26 $ 17 $ 3 $ 70 $ 29 SIX-MONTH Goods and services purchased $ 89 $ 19 $ 21 $ 7 $ 110 $ 26 Employee benefits expense 20 34 — 5 20 39 $ 109 $ 53 $ 21 $ 12 $ 130 $ 65 |
property, plant and equipment (
property, plant and equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
property, plant and equipment | |
Schedule of property, plant and equipment | Owned assets Right-of-use lease assets ( Note 19 ) Buildings and Network leasehold Assets under Network Real (millions) Note assets improvements Other Land construction Total assets estate Other Total Total AT COST As at January 1, 2020 $ 31,713 $ 3,314 $ 1,373 $ 48 $ 421 $ 36,869 $ 219 $ 1,267 $ 60 $ 1,546 $ 38,415 Additions 393 15 24 5 666 1,103 54 131 7 192 1,295 Additions arising from business acquisitions 18(b ) 4 12 7 — — 23 — 41 1 42 65 Dispositions, retirements and other (379) 1 (122) — — (500) 1 (24) (9) (32) (532) Assets under construction put into service 263 39 55 — (357) — — — — — — Net foreign exchange differences 2 5 9 — — 16 — 13 — 13 29 As at June 30,2020 $ 31,996 $ 3,386 $ 1,346 $ 53 $ 730 $ 37,511 $ 274 $ 1,428 $ 59 $ 1,761 $ 39,272 ACCUMULATED DEPRECIATION As at January 1, 2020 $ 21,060 $ 2,052 $ 875 $ — $ — $ 23,987 $ 6 $ 174 $ 16 $ 196 $ 24,183 Depreciation 1 767 62 75 — — 904 14 101 9 124 1,028 Dispositions, retirements and other (387) (10) (106) — — (503) — (3) (3) (6) (509) Net foreign exchange differences 1 2 6 — — 9 — 2 — 2 11 As at June 30, 2020 $ 21,441 $ 2,106 $ 850 $ — $ — $ 24,397 $ 20 $ 274 $ 22 $ 316 $ 24,713 NET BOOK VALUE As at December 31, 2019 $ 10,653 $ 1,262 $ 498 $ 48 $ 421 $ 12,882 $ 213 $ 1,093 $ 44 $ 1,350 $ 14,232 As at June 30, 2020 $ 10,555 $ 1,280 $ 496 $ 53 $ 730 $ 13,114 $ 254 $ 1,154 $ 37 $ 1,445 $ 14,559 (1) For the six-month period ended June 30, 2020, depreciation includes $5 in respect of impairment of real estate right-of-use lease assets. |
intangible assets and goodwill
intangible assets and goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
intangible assets and goodwill | |
Schedule of Intangible assets and goodwill, net | Intangible assets with Intangible assets subject to amortization indefinite lives Customer contracts, Total related customer Access to Assets Total intangible relationships and rights-of-way under Spectrum intangible assets and (millions) Note subscriber base 1 Software and other construction Total licences assets Goodwill 1,2 goodwill AT COST As at January 1, 2020 $ 1,032 $ 5,870 $ 135 $ 254 $ 7,291 $ 9,937 $ 17,228 $ 5,673 $ 22,901 Additions — 42 1 281 324 — 324 — 324 Additions arising from business acquisitions (b) 735 20 47 — 802 9 811 772 1,583 Dispositions, retirements and other (including capitalized interest) 9 48 (333) (29) — (314) 17 (297) — (297) Assets under construction put into service — 232 — (232) — — — — — Net foreign exchange differences 37 2 — — 39 — 39 51 90 As at June 30, 2020 $ 1,852 $ 5,833 $ 154 $ 303 $ 8,142 $ 9,963 $ 18,105 $ 6,496 $ 24,601 ACCUMULATED AMORTIZATION As at January 1, 2020 $ 285 $ 4,028 $ 71 $ — $ 4,384 $ — $ 4,384 $ 364 $ 4,748 Amortization 97 322 3 — 422 — 422 — 422 Dispositions, retirements and other (13) (334) 3 — (344) — (344) — (344) Net foreign exchange differences 12 1 — — 13 — 13 — 13 As at June 30, 2020 $ 381 $ 4,017 $ 77 $ — $ 4,475 $ — $ 4,475 $ 364 $ 4,839 NET BOOK VALUE As at December 31, 2019 $ 747 $ 1,842 $ 64 $ 254 $ 2,907 $ 9,937 $ 12,844 $ 5,309 $ 18,153 As at June 30, 2020 $ 1,471 $ 1,816 $ 77 $ 303 $ 3,667 $ 9,963 $ 13,630 $ 6,132 $ 19,762 (1) The opening balance of software and goodwill have been adjusted as set out in (c). (2) Accumulated amortization of goodwill is amortization recorded prior to 2002; there are no accumulated impairment losses in the accumulated amortization of goodwill. |
Schedule of acquisition-date fair values assigned to the assets acquired and liabilities assumed | Individually Competence immaterial Call Center transactions Total 1 Assets Current assets Cash $ 90 $ 1 $ 91 Accounts receivable 2 64 2 66 Other 2 1 3 156 4 160 Non-current assets Property, plant and equipment Owned assets 21 2 23 Right-of-use lease assets 40 2 42 Intangible assets subject to amortization 3 754 48 802 Intangible assets with indefinite lives — 9 9 Other 2 — 2 817 61 878 Total identifiable assets acquired 973 65 1,038 Liabilities Current liabilities Accounts payable and accrued liabilities 42 4 46 Income and other taxes payable 65 — 65 Advance billings and customer deposits — 5 5 Current maturities of long-term debt 11 5 16 118 14 132 Non-current liabilities Long-term debt 214 1 215 Deferred income taxes 218 10 228 432 11 443 Total liabilities assumed 550 25 575 Net identifiable assets acquired 423 40 463 Goodwill 724 48 772 Net assets acquired $ 1,147 $ 88 $ 1,235 Acquisition effected by way of: Cash consideration $ 1,147 $ 84 $ 1,231 Accounts payable and accrued liabilities — 4 4 $ 1,147 $ 88 $ 1,235 (1) The purchase price allocation, primarily in respect of customer contracts, related customer relationships and leasehold interests and deferred income taxes, had not been finalized as of the date of issuance of these consolidated financial statements. As is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of the acquired businesses. Upon having sufficient time to review the books and records of the acquired businesses, we expect to finalize our purchase price allocations. (2) The fair value of accounts receivable is equal to the gross contractual amounts receivable and reflects the best estimates at the acquisition dates of the contractual cash flows expected to be collected. (3) Customer contracts and customer relationships (including those related to customer contracts) are generally expected to be amortized over periods of 10 years; software is expected to be amortized over periods of 3-5 years. |
Schedule of pro forma information of business acquisition operating results | Three months Six months Periods ended June 30, 2020 (millions except per share amounts) As reported 1 Pro forma 2 As reported 1 Pro forma 2 Operating revenues $ 3,728 $ 3,730 $ 7,422 $ 7,475 Net income $ 315 $ 315 $ 668 $ 668 Net income per Common Share * Basic $ 0.23 $ 0.23 $ 0.51 $ 0.51 Diluted $ 0.23 $ 0.23 $ 0.51 $ 0.51 (1) Operating revenues and net income for the three-month period ended June 30, 2020, include: $141 and $9, respectively, in respect of Competence Call Center. Operating revenues and net income (loss) for the six-month period ended June 30, 2020, include: $226 and $(11), respectively, in respect of Competence Call Center. (2) Pro forma amounts for the three-month and six-month periods ended June 30, 2020, reflect the acquired businesses. The results of the acquired businesses have been included in our Consolidated statements of income and other comprehensive income effective the dates of acquisition. * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
leases (Tables)
leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
leases | |
Schedule of income from subleasing right-of-use lease assets and lease payments | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Income from subleasing right-of-use lease assets Co-location sublet revenue included in operating service revenues $ 5 $ 4 $ 9 $ 9 Other sublet revenue included in other operating income 7 $ — $ 1 $ 1 $ 1 Lease payments $ 98 $ 81 $ 200 $ 184 |
other long-term assets (Tables)
other long-term assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
other long-term assets | |
Schedule of other long-term assets | June 30, December 31, As at (millions) Note 2020 2019 Pension assets $ 1 $ 155 Unbilled customer finance receivables 4(a) 319 225 Derivative assets 4(d) 413 76 Costs incurred to obtain or fulfill a contract with a customer 100 109 Real estate joint venture advances 21(b) 114 104 Investment in real estate joint venture 21(b) 2 3 Investment in associate 21 72 — Portfolio investments 1 122 110 Prepaid maintenance 61 55 Other 151 82 $ 1,355 $ 919 (1) Fair value measured at reporting date using significant other observable inputs (Level 2). |
Schedule of costs incurred to obtain and fulfill contracts with customers | Three months Six months Costs incurred to Costs incurred to Obtain Obtain contracts with Fulfill contracts contracts with Fulfill contracts Periods ended June 30, 2020 (millions) customers with customers Total customers with customers Total Balance, beginning of period $ 331 $ 14 $ 345 $ 344 $ 14 $ 358 Additions 54 1 55 113 2 115 Amortization (71) (1) (72) Balance, end of period $ 314 $ 14 $ 328 $ 314 $ 14 $ 328 Current 1 $ 221 $ 7 $ 228 Non-current $ 314 $ 14 $ 328 (1) Presented on the Consolidated statements of financial position in prepaid expenses. |
real estate joint ventures an_2
real estate joint ventures and investment in associate (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
real estate joint ventures and investment in associate | |
Schedule of real estate joint ventures financial information | June 30, December 31, As at (millions) 2020 2019 ASSETS Current assets Cash and temporary investments, net $ 8 $ 15 Other 17 18 25 33 Non-current assets Investment property under development 331 318 Other 14 2 345 320 $ 370 $ 353 LIABILITIES AND OWNERS’ EQUITY Current liabilities Accounts payable and accrued liabilities $ 40 $ 25 Construction holdback liabilities — 15 40 40 Non-current liabilities Construction credit facilities 342 312 Other — 3 342 315 382 355 Owners’ equity TELUS 1 (3) 1 Other partners (9) (3) (12) (2) $ 370 $ 353 (1) The equity amounts recorded by the real estate joint venture differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint venture. Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Revenue $ — $ — $ — $ — Depreciation and amortization $ — $ — $ — $ — Interest expense 1 $ — $ — $ — $ — Net income (loss) and comprehensive income (loss) 2 $ (31) $ — $ (33) $ (1) (1) During the three-month and six-month periods ended June 30, 2020, the real estate joint venture capitalized $1 (2019 - $3) and $4 (2019 - $6), respectively, of financing costs. (2) As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income. |
Schedule of joint ventures investment activity | 2020 2019 Loans and Loans and Three-month periods ended June 30 (millions) receivables 1 Equity 2 Total receivables 1 Equity 2 Total Related to real estate joint ventures’ statements Comprehensive income attributable to us 3 $ — $ (10) $ (10) $ — $ — $ — Related to real estate joint ventures’ statements of financial position Items not affecting currently reported cash flows Construction credit facilities financing costs charged by us and other (Note 7) 1 — 1 1 — 1 Cash flows in the current reporting period Construction credit facilities Amounts advanced 3 — 3 9 — 9 Financing costs paid to us (1) — (1) (1) — (1) Funds we advanced or contributed, excluding construction credit facilities — 5 5 — — — Net increase 3 (5) (2) 9 — 9 Real estate joint ventures carrying amounts Balance, beginning of period 111 (10) 101 77 5 82 Valuation provision recorded in beginning of period balance now recorded in joint venture — 6 6 — — — Balance, end of period $ 114 $ (9) $ 105 $ 86 $ 5 $ 91 2020 2019 Loans and Loans and Six-month periods ended June 30 (millions) receivables 1 Equity 2 Total receivables 1 Equity 2 Total Related to real estate joint ventures’ statements of income and other comprehensive income Comprehensive income attributable to us 3 $ — $ (11) $ (11) $ — $ — $ — Related to real estate joint ventures’ statements of financial position Items not affecting currently reported cash flows Construction credit facilities financing costs charged by us (Note 7) 2 — 2 2 — 2 Cash flows in the current reporting period Construction credit facilities Amounts advanced 10 — 10 17 — 17 Financing costs paid to us (2) — (2) (2) — (2) Funds we advanced or contributed, excluding construction credit facilities — 5 5 Funds repaid to us and earnings distributed — (1) (1) — — — Net increase 10 (7) 3 17 — 17 Real estate joint ventures carrying amounts Balance, beginning of period 104 (2) 102 69 5 74 Balance, end of period $ 114 $ (9) $ 105 $ 86 $ 5 $ 91 (1) Loans and receivables are included in our Consolidated statements of financial position as Real estate joint venture advances and are comprised of advances under construction credit facilities. (2) We account for our interests in the real estate joint ventures using the equity method of accounting. As at June 30, 2020, and December 31, 2019, we had recorded equity losses in excess of our recorded equity investment in respect of one of the real estate joint ventures; such resulting balance has been included in long-term liabilities ( Note 27 ). (3) As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income. |
Schedule of construction credit facility | June 30, December 31, As at (millions) Note 2020 2019 Construction credit facilities commitment – TELUS Corporation Undrawn 4(b ) $ — $ 10 Advances 114 104 114 114 Construction credit facilities commitment – other 228 228 $ 342 $ 342 |
accounts payable and accrued _2
accounts payable and accrued liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
accounts payable and accrued liabilities | |
Schedule of accounts payable and accrued liabilities | June 30, December 31, As at (millions) 2020 2019 Accrued liabilities $ 1,102 $ 1,091 Payroll and other employee-related liabilities 482 422 Restricted share units liability 95 77 1,679 1,590 Trade accounts payable 834 892 Interest payable 170 160 Other 190 107 $ 2,873 $ 2,749 |
advance billings and customer_2
advance billings and customer deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
advance billings and customer deposits | |
Disclosure of advance billings and customer accounts | June 30, December 31, As at (millions) 2020 2019 Advance billings $ 548 $ 522 Deferred customer activation and connection fees 8 9 Customer deposits 14 14 Contract liabilities 570 545 Other 126 130 $ 696 $ 675 |
Schedule of changes in contract liabilities | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 Balance, beginning of period $ 824 $ 814 $ 801 $ 811 Revenue deferred in previous period and recognized in current period (593) (642) (577) (647) Net additions arising from operations 571 638 573 641 Additions arising from business acquisitions 18(b) — 1 5 6 Balance, end of period $ 802 $ 811 $ 802 $ 811 Current $ 721 $ 732 Non-current 27 Deferred revenues 70 65 Deferred customer activation and connection fees 11 14 $ 802 $ 811 Reconciliation of contract liabilities presented in the consolidated statements of financial position – current Gross contract liabilities $ 721 $ 732 Reclassification to contract assets for contracts with contract liabilities less than contract assets (142) (155) Reclassification from contract assets for contracts with contract assets less than contract liabilities (9) (5) $ 570 $ 572 |
provisions (Tables)
provisions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
provisions | |
Schedule of other provisions | Asset retirement Employee- Written put (millions) obligation related options Other Total As at April 1, 2020 $ 497 $ 41 $ 182 $ 122 $ 842 Additions — 10 — 75 85 Reversal — — (70) (2) (72) Use (1) (9) (103) (42) (155) Interest effect 4 — — — 4 Effects of foreign exchange, net — (1) (6) (1) (8) As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 As at January 1, 2020 $ 495 $ 64 $ 196 $ 123 $ 878 Additions — 20 — 95 115 Reversal — — (103) (16) (119) Use (2) (43) (104) (51) (200) Interest effect 7 — 2 — 9 Effects of foreign exchange, net — — 12 1 13 As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 Current $ 10 $ 35 $ — $ 38 $ 83 Non-current 490 6 3 114 613 As at June 30, 2020 $ 500 $ 41 $ 3 $ 152 $ 696 |
long-term debt (Tables)
long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
long-term debt | |
Schedule of details of long-term debt | June 30, December 31, As at (millions) Note 2020 2019 Senior unsecured TELUS Corporation senior notes (b) $ 14,729 $ 14,479 TELUS Corporation commercial paper (c) — 1,015 TELUS Communications Inc. debentures 622 621 Secured TELUS International (Cda) Inc. credit facility (e) 1,167 431 Other 279 267 16,797 16,813 Lease liabilities (f) 1,721 1,661 Long-term debt $ 18,518 $ 18,474 Current $ 562 $ 1,332 Non-current 17,956 17,142 Long-term debt $ 18,518 $ 18,474 |
Schedule of long-term debt maturities | Composite long-term debt Other denominated in Canadian dollars U.S. dollars currencies Long-term Long-term debt, debt, Currency swap agreement Years ending December 31 excluding Leases excluding Leases amounts to be exchanged Leases (millions) leases (Note 19) Total leases (Note 19) (Receive) 1 Pay Total (Note 19) Total 2020 (remainder of year) $ 7 $ 144 $ 151 $ 18 $ 11 $ (14) $ 14 $ 29 $ 23 $ 203 2021 188 267 455 36 23 (28) 28 59 44 558 2022 1,263 144 1,407 36 22 (28) 28 58 34 1,499 2023 529 122 651 36 18 (28) 28 54 29 734 2024 1,115 110 1,225 36 8 (28) 28 44 23 1,292 2025-2029 4,686 299 4,985 2,516 15 (1,935) 1,907 2,503 46 7,534 Thereafter 4,788 301 5,089 1,704 1 (1,703) 1,646 1,648 20 6,757 Future cash outflows in respect of composite long-term debt principal repayments 12,576 1,387 13,963 4,382 98 (3,764) 3,679 4,395 219 18,577 Future cash outflows in respect of associated interest and like carrying costs 2 6,452 375 6,827 2,672 19 (2,575) 2,409 2,525 49 9,401 Undiscounted contractual maturities ( Note 4(b) ) $ 19,028 $ 1,762 $ 20,790 $ 7,054 $ 117 $ (6,339) $ 6,088 $ 6,920 $ 268 $ 27,978 (1) Where applicable cash flows reflect foreign exchange rates as at June 30, 2020. (2) F uture cash outflows in respect of associated interest and like carrying costs for commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect as at June 30, 2020. |
TELUS Corporation senior notes | |
long-term debt | |
Schedule of long-term debt maturities | Principal face amount Redemption present Effective Outstanding at value spread Issue interest Originally financial Basis Cessation Series Issued Maturity price rate 1 issued statement date points date 3.60% Notes, Series CM November 2013 January 2021 2 $ 997.15 3.65 % $ 400 million $ NIL 35 3 N/A 3.20% Notes, Series CO April 2014 April 2021 2 $ 997.39 3.24 % $ 500 million $ NIL 30 3 Mar. 5, 2021 2.35% Notes, Series CT March 2015 March 2022 $ 997.31 2.39 % $ 1.0 billion $ 1.0 billion 35.5 3 Feb. 28, 2022 3.35% Notes, Series CJ December 2012 March 2023 $ 998.83 3.36 % $ 500 million $ 500 million 40 3 Dec. 15, 2022 3.35% Notes, Series CK April 2013 April 2024 $ 994.35 3.41 % $ 1.1 billion $ 1.1 billion 36 3 Jan. 2, 2024 3.75% Notes, Series CQ September 2014 January 2025 $ 997.75 3.78 % $ 800 million $ 800 million 38.5 3 Oct. 17, 2024 3.75% Notes, Series CV December 2015 March 2026 $ 992.14 3.84 % $ 600 million $ 600 million 53.5 3 Dec. 10, 2025 2.75% Notes, Series CZ July 2019 July 2026 $ 998.73 2.77 % $ 800 million $ 800 million 33 3 May 8, 2026 2.80% U.S. Dollar Notes 4 September 2016 February 2027 US$ 991.89 2.89 % US$ 600 million US$ 600 million 20 5 Nov. 16, 2026 3.70% U.S. Dollar Notes 4 March 2017 September 2027 US$ 998.95 3.71 % US$ 500 million US$ 500 million 20 5 June 15, 2027 2.35% Notes, Series CAC May 2020 January 2028 $ 997.25 2.39 % $ 600 million $ 600 million 48 3 Nov. 27, 2027 3.625% Notes, Series CX March 2018 March 2028 $ 989.49 3.75 % $ 600 million $ 600 million 37 3 Dec. 1, 2027 3.30% Notes, Series CY April 2019 May 2029 $ 991.75 3.40 % $ 1.0 billion $ 1.0 billion 43.5 3 Feb. 2, 2029 3.15% Notes, Series CAA December 2019 February 2030 $ 996.49 3.19 % $ 600 million $ 600 million 39.5 3 Nov. 19, 2029 4.40% Notes, Series CL April 2013 April 2043 $ 997.68 4.41 % $ 600 million $ 600 million 47 3 Oct. 1, 2042 5.15% Notes, Series CN November 2013 November 2043 $ 995.00 5.18 % $ 400 million $ 400 million 50 3 May 26, 2043 4.85% Notes, Series CP Multiple 6 April 2044 $ 987.91 6 4.93 % 6 $ 500 million 6 $ 900 million 6 46 3 Oct. 5, 2043 4.75% Notes, Series CR September 2014 January 2045 $ 992.91 4.80 % $ 400 million $ 400 million 51.5 3 July 17, 2044 4.40% Notes, Series CU March 2015 January 2046 $ 999.72 4.40 % $ 500 million $ 500 million 60.5 3 July 29, 2045 4.70% Notes, Series CW Multiple 7 March 2048 $ 998.06 7 4.71 % 7 $ 325 million 7 $ 475 million 7 58.5 3 Sept. 6, 2047 4.60% U.S. Dollar Notes 4 June 2018 November 2048 US$ 987.60 4.68 % US$ 750 million US$ 750 million 25 5 May 16, 2048 4.30% U.S. Dollar Notes 4 May 2019 June 2049 US$ 990.48 4.36 % US$ 500 million US$ 500 million 25 5 Dec. 15, 2048 3.95% Notes, Series CAB Multiple 8 February 2050 $ 997.54 8 3.97 % 8 $ 400 million 8 $ 800 million 8 57.5 3 Aug. 16, 2049 (1) The effective interest rate is that which the notes would yield to an initial debt holder if held to maturity. (2) On May 22, 2020, we exercised our right to early redeem, on June 23, 2020, all of our 3.60% Notes, Series CM and all of our 3.20% Notes, Series CO. The long-term debt prepayment premium recorded in the three-month period ended June 30, 2020, was $18 million before income taxes (see Note 9 ). (3) The redemption price is equal to the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to maturity, other than in the case of the Series CT, Series CU, Series CV, Series CW, Series CX, Series CY, Series CZ, Series CAA, Series CAB and Series CAC notes, for which it is calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof. (4) We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively converted the principal payments and interest obligations to Canadian dollar obligations as follows: Canadian Interest rate dollar equivalent Exchange Series fixed at principal rate 2.80% U.S. Dollar Notes 2.95 % $ 792 million $ 1.3205 3.70% U.S. Dollar Notes 3.41 % $ 667 million $ 1.3348 4.60% U.S. Dollar Notes 4.41 % $ 974 million $ 1.2985 4.30% U.S. Dollar Notes 4.27 % $ 672 million $ 1.3435 (5) The redemption price is equal to the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate plus the redemption present value spread calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof. (6) $500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%. (7) $325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued at an issue price of $1,014.11 and an effective interest rate of 4.61% in March 2018. (8) $400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%. |
TELUS Corporation credit facility | |
long-term debt | |
Schedule of long-term debt maturities | June 30, December 31, As at (millions) 2020 2019 Net available $ 2,250 $ 1,235 Backstop of commercial paper — 1,015 Gross available $ 2,250 $ 2,250 |
TELUS International (Cda) Inc. credit facility | |
long-term debt | |
Schedule of long-term debt maturities | June 30, 2020 December 31, 2019 Revolving Term loan Revolving Term loan As at (millions) component component 1 Total component component Total Available US$ 204 US$ N/A US$ 204 US$ 121 US$ N/A US$ 121 Outstanding Due to other 347 518 865 229 336 Due to TELUS Corporation 49 74 123 N/A N/A N/A US$ 600 US$ 592 US$ 1,192 US$ 350 US$ 107 US$ 457 (1) We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on US$103 of the debt to a fixed rate of 2.64%. Relative to amounts owed to the syndicate of financial institutions, excluding TELUS Corporation, we have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert an amortizing amount of US$415 of the principal payments and associated interest obligations to European euro obligations with an effective fixed interest rate of 0.65% and an effective fixed economic exchange rate of US$1.0932:€1.00. These have been accounted for as a net investment hedge in a foreign operation (see Note 4 ). |
other long-term liabilities (Ta
other long-term liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
other long-term liabilities | |
Schedule of other long-term liabilities | June 30, December 31, As at (millions) Note 2020 2019 Contract liabilities 24 $ 70 $ 70 Other 6 7 Deferred revenues 76 77 Pension benefit liabilities 934 580 Other post-employment benefit liabilities 58 53 Restricted share unit and deferred share unit liabilities 13 42 Derivative liabilities 4(d) 27 26 Investment in real estate joint ventures 21(b) 11 5 Other 27 10 1,146 793 Deferred customer activation and connection fees 24 11 13 $ 1,157 $ 806 |
owners' equity (Tables)
owners' equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
owners' equity | |
Schedule of authorized share capital | June 30, December 31, As at 2020 2019 First Preferred Shares 1 billion 1 billion Second Preferred Shares 1 billion 1 billion Common Shares 4 billion 4 billion* * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). |
Schedule of summarized financial information of Subsidiary with significant non-controlling interest | As at, or for the three-month and six-month periods ended (millions) 1 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Statement of financial position Current assets $ 591 $ 437 Non-current assets $ 2,763 $ 1,057 Current liabilities $ 586 $ 531 Non-current liabilities $ 1,838 $ 647 Statement of income and other comprehensive income Revenue $ 611 $ 336 $ 1,077 $ 645 Net income $ 71 $ 8 $ 78 $ 33 Comprehensive income $ 45 $ 19 $ 85 $ 51 (1) As required by IFRS-IASB, this summarized financial information excludes inter-company eliminations. |
related party transactions (Tab
related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
related party transactions | |
Summary of transactions with key management personnel | Three months Six months Periods ended June 30 (millions) 2020 2019 2020 2019 Short-term benefits $ 2 $ 2 $ 4 $ 5 Post-employment pension 1 and other benefits 1 1 2 2 Share-based compensation 2 11 5 10 20 $ 14 $ 8 $ 16 $ 27 (1) Our Executive Leadership Team members are members of our Pension Plan for Management and Professional Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit pension plans. (2) In respect of restricted share units with neither an equity settlement feature nor market performance conditions, we accrue a liability equal to the product of the number of vesting restricted share units multiplied by the fair market value of the corresponding Common Shares at the end of the reporting period. Similarly, we accrue a liability for the notional subset of our restricted share units without an equity settlement feature and with market performance conditions using a Monte Carlo simulation-determined fair value. Restricted share units that have an equity settlement feature are accounted for as equity instruments. The expense for restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect. As disclosed in Note 14 , we made initial awards of share-based compensation in 2020 and 2019, including, as set out in the following table, to our key management personnel. As most of these awards are cliff-vesting or graded-vesting and have multi-year requisite service periods, the related expense will be recognized rateably over a period of years and thus only a portion of the 2020 and 2019 initial awards are included in the amounts in the table above. Six-month periods ended June 30 2020 2019 Number of Number of restricted Notional Grant-date restricted Notional Grant-date ($ in millions) share units* value 1 fair value 1 share units value 1 fair value 1 Awarded in period 811,954 $ 20 $ 28 — $ — $ — (1) Notional value is determined by multiplying the Common Share price at the time of award by the number of units awarded. The grant-date fair value differs from the notional value because the fair values of some awards have been determined using a Monte Carlo simulation (see Note 14(b) ). No share options were awarded to our key management personnel in fiscal 2020 or 2019. * Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b) ). The liability amounts accrued for share-based compensation awards to key management personnel are as follows: June 30, December 31, As at (millions) 2020 2019 Restricted share units $ 26 $ 25 Deferred share units 1 3 23 $ 29 $ 48 (1) Our Directors’ Deferred Share Unit Plan provides that, in addition to his or her annual equity grant of deferred share units, a director may elect to receive his or her annual retainer and meeting fees in deferred share units, Common Shares or cash. Deferred share units entitle directors to a specified number of, or a cash payment based on the value of, our Common Shares. Deferred share units are paid out when a director ceases to be a director, for any reason, at a time elected by the director in accordance with the Directors’ Deferred Share Unit Plan ; during the three-month and six-month periods ended June 30, 2020, $NIL (2019 – $3) and $NIL (2019 – $3), respectively, was paid out. |
additional statement of cash _2
additional statement of cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
additional statement of cash flow information | |
Schedule of operating activities and investing activities | Three months Six months Periods ended June 30 (millions) Note 2020 2019 2020 2019 OPERATING ACTIVITIES Net change in non-cash operating working capital Accounts receivable $ (1) $ (197) $ 24 $ (223) Inventories 33 25 102 42 Contract assets 114 3 199 1 Prepaid expenses 52 (26) 5 (110) Accounts payable and accrued liabilities 210 253 90 190 Income and other taxes receivable and payable, net 67 (53) 145 (269) Advance billings and customer deposits 1 (3) 16 3 Provisions (72) 14 (117) (36) $ 404 $ 16 $ 464 $ (402) INVESTING ACTIVITIES Cash payments for capital assets, excluding spectrum licences Capital asset additions Gross capital expenditures Property, plant and equipment 17 $ (693) $ (718) $ (1,295) $ (1,357) Intangible assets subject to amortization 18 (174) (166) (324) (299) (867) (884) (1,619) (1,656) Additions arising from leases 17 110 110 192 232 Additions arising from non-monetary transactions 1 4 6 8 Capital expenditures 5 (756) (770) (1,421) (1,416) Change in associated non-cash investing working capital 62 125 (53) (22) $ (694) $ (645) $ (1,474) $ (1,438) |
Schedule of changes in liabilities arising from financing activities | Statement of cash flows Non-cash changes Foreign Redemptions, exchange Beginning Issued or repayments or movement End of (millions) of period received payments ( Note 4(e) ) Other period THREE-MONTH PERIOD ENDED JUNE 30, 2019 Dividends payable to holders of Common Shares $ 329 $ — $ (329) $ — $ 339 $ 339 Dividends reinvested in shares from Treasury — — 22 — (22) — $ 329 $ — $ (307) $ — $ 317 $ 339 Short-term borrowings $ 500 $ — $ (400) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 12,136 $ 1,674 $ — $ (70) $ (25) $ 13,715 TELUS Corporation commercial paper 1,105 748 (1,554) (6) — 293 TELUS Communications Inc. debentures 621 — — — — 621 TELUS International (Cda) Inc. credit facility 405 — (2) (8) 1 396 Lease liabilities 1,508 — (64) (8) 118 1,554 Derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt – liability (asset) 41 1,554 (1,551) 76 (28) 92 15,816 3,976 (3,171) (16) 66 16,671 To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt — (1,554) 1,554 — — — $ 15,816 $ 2,422 $ (1,617) $ (16) $ 66 $ 16,671 THREE-MONTH PERIOD ENDED JUNE 30, 2020 Dividends payable to holders of Common Shares $ 371 $ — $ (371) $ — $ 372 $ 372 Dividends reinvested in shares from Treasury — — 131 — (131) — $ 371 $ — $ (240) $ — $ 241 $ 372 Short-term borrowings $ 100 $ — $ — $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 14,763 $ 1,000 $ (900) $ (132) $ (2) $ 14,729 TELUS Corporation commercial paper 459 — (454) (5) — — TELUS Communications Inc. debentures 621 — — — 1 622 TELUS International (Cda) Inc. credit facility 1,285 — (68) (50) — 1,167 Other 281 — (3) — 1 279 Lease liabilities 1,699 — (81) (6) 109 1,721 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (655) 461 (434) 158 78 (392) 18,453 1,461 (1,940) (35) 187 18,126 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (461) 461 — — — $ 18,453 $ 1,000 $ (1,479) $ (35) $ 187 $ 18,126 Statement of cash flows Non-cash changes Foreign Redemptions, exchange Beginning Issued or repayments or movement (millions) of period received payments ( Note 4(e)) Other End of period SIX-MONTH PERIOD ENDED JUNE 30, 2019 Dividends payable to holders of Common Shares $ 326 $ — $ (655) $ — $ 668 $ 339 Dividends reinvested in shares from Treasury — — 45 — (45) — $ 326 $ — $ (610) $ — $ 623 $ 339 Short-term borrowings $ 100 $ 407 $ (407) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 12,186 $ 1,674 $ — $ (122) $ (23) $ 13,715 TELUS Corporation commercial paper 774 1,901 (2,363) (19) — 293 TELUS Communications Inc. debentures 620 — — — 1 621 TELUS International (Cda) Inc. credit facility 419 13 (21) (17) 2 396 Lease liabilities 1,483 — (152) (13) 236 1,554 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (73) 2,363 (2,361) 141 22 92 15,409 5,951 (4,897) (30) 238 16,671 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (2,363) 2,363 — — — $ 15,409 $ 3,588 $ (2,534) $ (30) $ 238 $ 16,671 SIX-MONTH PERIOD ENDED JUNE 30, 2020 Dividends payable to holders of Common Shares $ 352 $ — $ (723) $ — $ 743 $ 372 Dividends reinvested in shares from Treasury — — 261 — (261) — $ 352 $ — $ (462) $ — $ 482 $ 372 Short-term borrowings $ 100 $ 200 $ (200) $ — $ — $ 100 Long-term debt TELUS Corporation senior notes $ 14,479 $ 1,000 $ (900) $ 150 $ — $ 14,729 TELUS Corporation commercial paper 1,015 612 (1,692) 65 — — TELUS Communications Inc. debentures 621 — — — 1 622 TELUS International (Cda) Inc. credit facility 431 765 (68) 45 (6) 1,167 Other 267 — (191) — 203 279 Lease liabilities 1,661 — (165) 17 208 1,721 Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset) (37) 1,699 (1,650) (194) (210) (392) 18,437 4,076 (4,666) 83 196 18,126 To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt — (1,699) 1,699 — — — $ 18,437 $ 2,377 $ (2,967) $ 83 $ 196 $ 18,126 |
condensed interim consolidate_7
condensed interim consolidated financial statements (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
condensed interim consolidated financial statements | |||||
Wireless handsets, parts and accessories | $ 266 | $ 266 | $ 375 | ||
Costs of goods sold | $ 384 | $ 484 | $ 786 | $ 943 |
capital structure financial p_3
capital structure financial policies (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Components of debt and coverage ratios | |||||||||||
Net debt | $ 17,664 | $ 16,602 | $ 17,664 | $ 16,602 | $ 17,664 | $ 16,602 | $ 17,664 | ||||
EBITDA - excluding restructuring and other costs | 2,898 | 2,817 | 5,769 | $ 5,688 | 5,649 | ||||||
Net interest cost | 403 | 361 | $ 797 | $ 706 | |||||||
Debt ratio | |||||||||||
Net debt to EBITDA - excluding restructuring and other costs | 3.06 | 2.94 | |||||||||
Coverage ratios | |||||||||||
Earnings coverage ratio | 3.6 | 4.2 | |||||||||
EBITDA - excluding restructuring and other costs interest coverage ratio | 7.2 | 8 | |||||||||
Net debt and total capitalization | |||||||||||
Long-term debt | 18,518 | 16,579 | 18,518 | 16,579 | $ 18,518 | 18,474 | $ 16,579 | 18,518 | |||
Debt issuance costs netted against long-term debt | 96 | 105 | 96 | 105 | 96 | 105 | 96 | ||||
Derivative (assets) liabilities, net | (392) | 92 | (392) | 92 | (392) | 92 | (392) | ||||
Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated long-term debt - excluding tax effects | 313 | (57) | 313 | (57) | 313 | (57) | 313 | ||||
Cash and temporary investments, net | (971) | (217) | (971) | (217) | (971) | (535) | (217) | (971) | $ (1,058) | $ (588) | $ (414) |
Short-term borrowings | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |||
Net debt | 17,664 | 16,602 | 17,664 | 16,602 | 17,664 | 16,602 | 17,664 | ||||
Common equity | 12,046 | 10,504 | 12,046 | 10,504 | 12,046 | 10,548 | 10,504 | 12,046 | |||
Less: accumulated other comprehensive income included in common equity above | (286) | 19 | (286) | 19 | (286) | (119) | 19 | (286) | $ (393) | $ 40 | $ (3) |
Total capitalization | 29,427 | 27,123 | 29,427 | 27,123 | 29,427 | 27,123 | $ 29,427 | ||||
Calculation of EBITDA - excluding restructuring and other costs | |||||||||||
EBITDA | 1,359 | 1,373 | 2,768 | 2,752 | 5,570 | 5,554 | 5,336 | ||||
Restructuring and other costs | 70 | 29 | 130 | 65 | 199 | 134 | |||||
EBITDA - excluding restructuring and other costs | 2,898 | 2,817 | $ 5,769 | $ 5,688 | $ 5,649 | ||||||
Changes in debt and coverage ratios | |||||||||||
Net debt to EBITDA - excluding restructuring and other costs ratio | 3.06 | 2.94 | |||||||||
Net debt to operating cash flow ratio maximum | 4 | ||||||||||
Earnings Coverage Ratio | 3.6 | 4.2 | |||||||||
Increase (decrease) in earnings coverage ratio due to an (increase) decrease in borrowing costs | (0.5) | ||||||||||
Increase (decrease) in earnings coverage ratio due to an increase (decrease) in income before borrowing costs and income taxes | (0.1) | ||||||||||
EBITDA - excluding restructuring and other costs interest coverage ratio | 7.2 | 8 | |||||||||
Increase (decrease) in EBITDA - excluding restructuring and other costs interest coverage ratio due to an increase (decrease) in EBITDA | 0.2 | ||||||||||
Increase (decrease) in EBITDA - excluding restructuring and other costs interest coverage ratio due to an (increase) decrease in net interest costs | (1) | ||||||||||
Dividend payout ratio | |||||||||||
Dividend payout ratio - net of dividend reinvestment plan effects, (as a per cent) | 61.00% | 133.00% | |||||||||
Ratio of dividends declared as a percentage of cash provided by operating activities less capital expenditures (excluding spectrum licenses) | 84.00% | 122.00% | |||||||||
Dividends declared | $ 1,433 | $ 1,307 | |||||||||
Amount of dividends declared reinvested in Common Shares | (516) | (90) | |||||||||
Dividends declared, net of dividend reinvestment plan effects | $ 917 | 1,217 | |||||||||
Minimum | |||||||||||
Debt ratio | |||||||||||
Target Net debt to EBITDA - excluding restructuring and other costs | 2.20 | ||||||||||
Dividend payout ratio | |||||||||||
Target dividend payout ratio, (as a per cent) | 60.00% | ||||||||||
Target ratio from free cash flow | 60.00% | ||||||||||
Maximum | |||||||||||
Debt ratio | |||||||||||
Target Net debt to EBITDA - excluding restructuring and other costs | 2.70 | ||||||||||
Dividend payout ratio | |||||||||||
Target dividend payout ratio, (as a per cent) | 75.00% | ||||||||||
Target ratio from free cash flow | 75.00% | ||||||||||
Common equity | |||||||||||
Net debt and total capitalization | |||||||||||
Less: accumulated other comprehensive income included in common equity above | $ (283) | $ 17 | $ (283) | $ 17 | $ (283) | $ 17 | $ (283) |
capital structure financial p_4
capital structure financial policies - reconciliation (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
capital structure financial policies | |||||||
EBITDA | $ 1,359 | $ 1,373 | $ 2,768 | $ 2,752 | $ 5,570 | $ 5,554 | $ 5,336 |
Deduct non-cash gains from sale of property, plant and equipment | (13) | (43) | |||||
Restructuring and other costs, net of disbursements | 22 | 43 | |||||
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment device financing | 43 | (172) | |||||
Effects of lease principal | (346) | (152) | |||||
Leases accounted for as finance leases prior to adoption of IFRS 16 | 136 | 26 | |||||
Deduct non-recurring gains and equity income related to real estate joint ventures | (171) | ||||||
Donation to TELUS Friendly Future Foundation in Common Shares | 100 | ||||||
Share-based compensation expense, net | 41 | 20 | 64 | 39 | 23 | 2 | |
Net employee defined benefit plans expense | 25 | 19 | 52 | 39 | 91 | 85 | |
Employer contributions to employee defined benefit plans | (12) | (12) | (27) | (28) | (40) | (46) | |
Interest paid | (199) | (147) | (376) | (326) | (764) | (654) | |
Interest received | 3 | 3 | 6 | 5 | 8 | 9 | |
Capital expenditures (excluding spectrum licences) | (2,911) | (2,889) | |||||
Free cash flow before income taxes | 1,819 | 1,474 | |||||
Income taxes paid, net of refunds | 13 | 122 | 137 | 473 | (308) | (562) | |
Free cash flow | 1,511 | 912 | |||||
Adjustments to reconcile to Cash provided by operating activities | 404 | 16 | 464 | (402) | 194 | 163 | |
Cash provided by operating activities | $ 1,462 | $ 1,160 | $ 2,639 | $ 1,950 | $ 4,616 | $ 3,964 |
financial instruments - Credit
financial instruments - Credit risk (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | $ 4,467 | $ 3,871 |
Cash and temporary investments, net | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 971 | 535 |
Customer accounts receivable | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 2,323 | 2,187 |
Contract assets | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 750 | 1,065 |
Derivatives | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | $ 423 | $ 84 |
financial instruments - Account
financial instruments - Accounts receivable (Details) - CAD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Credit risk | ||||||
Receivable account balances - Non-current | $ 122 | $ 110 | ||||
Customer accounts receivable | ||||||
Credit risk | ||||||
Days after the billing date that accounts receivables are considered to be past due (in default) | 30 days | |||||
Receivable account balances | $ 1,944 | 1,749 | ||||
Receivable account balances - Current | 1,625 | 1,524 | ||||
Receivable account balances - Non-current | 319 | 225 | ||||
Written off amounts charged to allowance for doubtful accounts still subject to enforcement | 541 | 449 | ||||
Accounts receivable written off directly to doubtful accounts expense | 0 | |||||
Customer accounts receivable | Less than 30 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 804 | 793 | ||||
Customer accounts receivable | 30-60 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 247 | 323 | ||||
Customer accounts receivable | 61-90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 115 | 69 | ||||
Customer accounts receivable | More than 90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 87 | 59 | ||||
Customer accounts receivable | Unbilled customer finance receivables | ||||||
Credit risk | ||||||
Receivable account balances | 691 | 505 | ||||
Cost/Gross amount | Customer accounts receivable | ||||||
Credit risk | ||||||
Receivable account balances | 2,048 | 1,804 | ||||
Receivable account balances - Current | 1,719 | 1,570 | ||||
Receivable account balances - Non-current | 329 | 234 | ||||
Cost/Gross amount | Customer accounts receivable | Less than 30 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 826 | 803 | ||||
Cost/Gross amount | Customer accounts receivable | 30-60 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 262 | 331 | ||||
Cost/Gross amount | Customer accounts receivable | 61-90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 129 | 74 | ||||
Cost/Gross amount | Customer accounts receivable | More than 90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | 114 | 73 | ||||
Cost/Gross amount | Customer accounts receivable | Unbilled customer finance receivables | ||||||
Credit risk | ||||||
Receivable account balances | 717 | 523 | ||||
Allowance for doubtful accounts | Customer accounts receivable | ||||||
Credit risk | ||||||
Receivable account balances | (104) | $ (56) | (55) | $ (42) | $ (43) | $ (53) |
Receivable account balances - Current | (94) | (46) | ||||
Receivable account balances - Non-current | (10) | (9) | ||||
Allowance for doubtful accounts | Customer accounts receivable | Less than 30 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | (22) | (10) | ||||
Allowance for doubtful accounts | Customer accounts receivable | 30-60 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | (15) | (8) | ||||
Allowance for doubtful accounts | Customer accounts receivable | 61-90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | (14) | (5) | ||||
Allowance for doubtful accounts | Customer accounts receivable | More than 90 days past billing date | ||||||
Credit risk | ||||||
Receivable account balances | (27) | (14) | ||||
Allowance for doubtful accounts | Customer accounts receivable | Unbilled customer finance receivables | ||||||
Credit risk | ||||||
Receivable account balances | $ (26) | $ (18) |
financial instruments - Activit
financial instruments - Activity related to allowance for doubtful accounts (Details) - Customer accounts receivable - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of activity related to allowance for doubtful accounts | ||||
Balance, beginning of period | $ (1,749) | |||
Balance, end of period | $ (1,944) | (1,944) | ||
Allowance for doubtful accounts | ||||
Summary of activity related to allowance for doubtful accounts | ||||
Balance, beginning of period | 56 | $ 43 | 55 | $ 53 |
Additions (doubtful accounts expense) | 46 | 10 | 58 | 21 |
Accounts written off, net of recoveries | (6) | (11) | (18) | (33) |
Other | 8 | 9 | 1 | |
Balance, end of period | $ 104 | $ 42 | $ 104 | $ 42 |
financial instruments - Contrac
financial instruments - Contract assets (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Credit risk | ||||||
Contract assets | $ 901 | $ 1,069 | $ 1,238 | $ 1,441 | $ 1,449 | $ 1,475 |
Cost/Gross amount | ||||||
Credit risk | ||||||
Contract assets | 955 | 1,295 | ||||
Allowance for doubtful accounts | ||||||
Credit risk | ||||||
Contract assets | (54) | (57) | ||||
The 12-month period ending one year hence | ||||||
Credit risk | ||||||
Contract assets | 689 | 910 | 1,019 | |||
The 12-month period ending one year hence | Cost/Gross amount | ||||||
Credit risk | ||||||
Contract assets | 730 | 952 | ||||
The 12-month period ending one year hence | Allowance for doubtful accounts | ||||||
Credit risk | ||||||
Contract assets | (41) | (42) | ||||
The 12-month period ending two years hence | ||||||
Credit risk | ||||||
Contract assets | 197 | 308 | 407 | |||
The 12-month period ending two years hence | Cost/Gross amount | ||||||
Credit risk | ||||||
Contract assets | 209 | 322 | ||||
The 12-month period ending two years hence | Allowance for doubtful accounts | ||||||
Credit risk | ||||||
Contract assets | (12) | (14) | ||||
Thereafter | ||||||
Credit risk | ||||||
Contract assets | 15 | 20 | $ 15 | |||
Thereafter | Cost/Gross amount | ||||||
Credit risk | ||||||
Contract assets | 16 | 21 | ||||
Thereafter | Allowance for doubtful accounts | ||||||
Credit risk | ||||||
Contract assets | $ (1) | $ (1) |
financial instruments - Liquidi
financial instruments - Liquidity risk (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Liquidity risk | ||
Total | $ 30,623 | $ 30,566 |
Debt or equity securities pursuant to a shelf prospectus expiring June, 2022 | ||
Liquidity risk | ||
Debt or equity securities that may be offered pursuant to a shelf prospectus | 2,500 | |
Debt or equity securities pursuant to a shelf prospectus expiring August, 2021 | ||
Liquidity risk | ||
Debt or equity securities that may be offered pursuant to a shelf prospectus | 2,000 | |
Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 2,536 | 2,703 |
Short-term borrowings | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 101 | 106 |
Construction credit facility commitment | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 10 | |
Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 26,082 | 25,619 |
Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 2,147 | 2,081 |
Composite long-term debt | ||
Liquidity risk | ||
Total | 27,978 | |
Other | ||
Liquidity risk | ||
Contractual maturities, derivative liabilities | 13 | 8 |
First year | ||
Liquidity risk | ||
Total | 2,884 | 4,699 |
First year | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 2,329 | 2,639 |
First year | Short-term borrowings | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 3 | |
First year | Construction credit facility commitment | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 10 | |
First year | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 352 | 1,657 |
First year | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 213 | 373 |
First year | Other | ||
Liquidity risk | ||
Contractual maturities, derivative liabilities | 4 | |
2 years hence | ||
Liquidity risk | ||
Total | 1,521 | 2,181 |
2 years hence | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 161 | 43 |
2 years hence | Short-term borrowings | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 101 | 103 |
2 years hence | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 867 | 1,698 |
2 years hence | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 398 | 338 |
2 years hence | Other | ||
Liquidity risk | ||
Contractual maturities, derivative liabilities | 1 | |
3 years hence | ||
Liquidity risk | ||
Total | 2,165 | 2,456 |
3 years hence | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 10 | 7 |
3 years hence | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 1,904 | 2,235 |
3 years hence | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 252 | 207 |
3 years hence | Other | ||
Liquidity risk | ||
Contractual maturities, derivative liabilities | 8 | 8 |
4 years hence | ||
Liquidity risk | ||
Total | 1,349 | 1,214 |
4 years hence | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 8 | 5 |
4 years hence | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 1,137 | 1,021 |
4 years hence | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 214 | 189 |
5 years hence | ||
Liquidity risk | ||
Total | 1,869 | 1,756 |
5 years hence | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 8 | 5 |
5 years hence | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 1,694 | 1,595 |
5 years hence | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 177 | 157 |
5 years hence and 10 years before | ||
Liquidity risk | ||
Total | 9,590 | 7,769 |
5 years hence and 10 years before | Non-interest bearing financial liabilities | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 20 | 4 |
5 years hence and 10 years before | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 9,153 | 7,311 |
5 years hence and 10 years before | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 475 | 429 |
Thereafter | ||
Liquidity risk | ||
Total | 11,245 | 10,491 |
Thereafter | Long-term debt excluding leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 10,975 | 10,102 |
Thereafter | Leases | ||
Liquidity risk | ||
Contractual maturities, non-derivative liabilities | 418 | 388 |
Currency risk related to long-term debt | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (6,339) | (6,554) |
Amounts to be exchanged, Pay | 6,088 | 6,589 |
Currency risk related to long-term debt | Composite long-term debt | ||
Liquidity risk | ||
Total | 27,978 | 27,735 |
Currency risk related to long-term debt | First year | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (80) | (1,140) |
Amounts to be exchanged, Pay | 73 | 1,153 |
Currency risk related to long-term debt | 2 years hence | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (160) | (119) |
Amounts to be exchanged, Pay | 151 | 118 |
Currency risk related to long-term debt | 3 years hence | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (160) | (119) |
Amounts to be exchanged, Pay | 151 | 118 |
Currency risk related to long-term debt | 4 years hence | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (160) | (119) |
Amounts to be exchanged, Pay | 150 | 118 |
Currency risk related to long-term debt | 5 years hence | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (160) | (119) |
Amounts to be exchanged, Pay | 150 | 118 |
Currency risk related to long-term debt | 5 years hence and 10 years before | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (2,451) | (1,919) |
Amounts to be exchanged, Pay | 2,393 | 1,944 |
Currency risk related to long-term debt | Thereafter | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (3,168) | (3,019) |
Amounts to be exchanged, Pay | 3,020 | 3,020 |
Currency risk related to foreign currency transactions | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (454) | (917) |
Amounts to be exchanged, Pay | 449 | 921 |
Currency risk related to foreign currency transactions | First year | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (251) | (917) |
Amounts to be exchanged, Pay | 244 | $ 921 |
Currency risk related to foreign currency transactions | 2 years hence | Currency swap agreement | ||
Liquidity risk | ||
Amounts to be exchanged, (Receive) | (203) | |
Amounts to be exchanged, Pay | $ 205 |
financial instruments - Market
financial instruments - Market risks (Details) - CAD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Interest rate risk | ||
Market risks | ||
Percentage of reasonably possible changes in market risk variable | 0.25% | 0.25% |
Other comprehensive income sensitivity to increase in risk variable | $ (11) | $ 4 |
Comprehensive income sensitivity to increase in risk variable | (11) | 4 |
Other comprehensive income sensitivity to decrease in risk variable | 13 | (4) |
Comprehensive income sensitivity to decrease in risk variable | $ 13 | (4) |
Canadian Dollars | Currency risk | ||
Market risks | ||
Percentage of reasonably possible changes in market risk variable | 10.00% | |
Net income sensitivity to increase in risk variable | $ 4 | |
Other comprehensive income sensitivity to increase in risk variable | (66) | (55) |
Comprehensive income sensitivity to increase in risk variable | (62) | (55) |
Net income sensitivity to decrease in risk variable | (4) | |
Other comprehensive income sensitivity to decrease in risk variable | 66 | 55 |
Comprehensive income sensitivity to decrease in risk variable | 62 | 55 |
Canadian Dollars | Interest rate risk | ||
Market risks | ||
Other comprehensive income sensitivity to increase in risk variable | 118 | 94 |
Comprehensive income sensitivity to increase in risk variable | 118 | 94 |
Other comprehensive income sensitivity to decrease in risk variable | (124) | (99) |
Comprehensive income sensitivity to decrease in risk variable | $ (124) | (99) |
U.S. Dollars | Currency risk | ||
Market risks | ||
Percentage of reasonably possible changes in market risk variable | 10.00% | |
Other comprehensive income sensitivity to increase in risk variable | $ (55) | |
Comprehensive income sensitivity to increase in risk variable | (55) | |
Other comprehensive income sensitivity to decrease in risk variable | 55 | |
Comprehensive income sensitivity to decrease in risk variable | 55 | |
U.S. Dollars | Interest rate risk | ||
Market risks | ||
Other comprehensive income sensitivity to increase in risk variable | (129) | (90) |
Comprehensive income sensitivity to increase in risk variable | (129) | (90) |
Other comprehensive income sensitivity to decrease in risk variable | 137 | 95 |
Comprehensive income sensitivity to decrease in risk variable | $ 137 | $ 95 |
Equity contributed, Common shares | ||
Market risks | ||
Data period for share price volatility | 6 months | 6 months |
Share price volatility for sensitivity analysis (as a per cent) | 22.80% | 12.50% |
Equity contributed, Common shares | Other market risk | ||
Market risks | ||
Percentage of reasonably possible changes in market risk variable | 25.00% | 25.00% |
Net income sensitivity to increase in risk variable | $ (8) | $ (4) |
Other comprehensive income sensitivity to increase in risk variable | 3 | 1 |
Comprehensive income sensitivity to increase in risk variable | (5) | (3) |
Net income sensitivity to decrease in risk variable | 13 | 19 |
Other comprehensive income sensitivity to decrease in risk variable | (3) | (1) |
Comprehensive income sensitivity to decrease in risk variable | $ 10 | $ 18 |
financial instruments - Fair Va
financial instruments - Fair Values Derivatives (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020CAD ($)$ / €$ / $ | Dec. 31, 2019CAD ($)$ / €$ / $ | |
Disclosure of detailed information about financial instruments | ||
Current Assets, Fair value and carrying value | $ 10,000,000 | $ 8,000,000 |
Current Liabilities, Fair value and carrying value | $ 9,000,000 | $ 23,000,000 |
Derivatives | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Hedge ratio | 100.00% | 100.00% |
Current Asset derivatives | ||
Disclosure of detailed information about financial instruments | ||
Current Assets, Fair value and carrying value | $ 10,000,000 | $ 8,000,000 |
Current Asset derivatives | Currency risk related to purchases | Cash flow hedging item (HFH) | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2021 | - |
Current Assets, Notional amount | $ 249,000,000 | |
Current Assets, Fair value and carrying value | $ 8,000,000 | |
Rate | $ / $ | 1.32 | |
Current Asset derivatives | Currency risk related to revenues | HFT | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2021 | 2020 |
Current Assets, Notional amount | $ 76,000,000 | $ 36,000,000 |
Current Assets, Fair value and carrying value | $ 2,000,000 | $ 1,000,000 |
Rate | $ / $ | 1.36 | 1.30 |
Current Asset derivatives | Other market risk | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | - | 2020 |
Current Assets, Notional amount | $ 72,000,000 | |
Current Assets, Fair value and carrying value | 4,000,000 | |
Price | $ 24.40 | |
Current Asset derivatives | Currency risk related to business acquisition | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | - | 2020 |
Current Assets, Notional amount | $ 472,000,000 | |
Current Assets, Fair value and carrying value | $ 3,000,000 | |
Rate | $ / € | 1.12 | |
Other Long-Term Asset derivatives | Currency risk related to long-term debt | Cash flow hedging item (HFH) | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2049 | 2048 |
Rate | $ / $ | 1.30 | 1.28 |
Other Long-Term Assets, Notional amount | $ 5,495,000,000 | $ 3,068,000,000 |
Other Long-Term Assets, Fair value and carrying value | 413,000,000 | 76,000,000 |
Current Liabilities derivatives | ||
Disclosure of detailed information about financial instruments | ||
Current Liabilities, Fair value and carrying value | $ 9,000,000 | $ 23,000,000 |
Current Liabilities derivatives | Currency risk related to purchases | Cash flow hedging item (HFH) | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2021 | 2020 |
Rate | $ / $ | 1.40 | 1.32 |
Current Liabilities, Notional amount | $ 123,000,000 | $ 412,000,000 |
Current Liabilities, Fair value and carrying value | $ 3,000,000 | $ 6,000,000 |
Current Liabilities derivatives | Other market risk | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2020 | - |
Price | $ 24.39 | |
Current Liabilities, Notional amount | 72,000,000 | |
Current Liabilities, Fair value and carrying value | $ 4,000,000 | |
Current Liabilities derivatives | Currency risk related to long-term debt | Cash flow hedging item (HFH) | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | - | 2020 |
Rate | $ / $ | 1.32 | |
Current Liabilities, Notional amount | $ 1,037,000,000 | |
Current Liabilities, Fair value and carrying value | $ 17,000,000 | |
Current Liabilities derivatives | Currency risk related to long-term debt | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2024 | - |
Rate | $ / € | 1.09 | |
Current Liabilities, Notional amount | $ 33,000,000 | |
Current Liabilities, Fair value and carrying value | $ 2,000,000 | |
Current Liabilities derivatives | Interest rate risk | Cash flow hedging item (HFH) | 2.64% non-fixed rate credit facility | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2022 | 2022 |
Current Liabilities, Notional amount | $ 8,000,000 | $ 8,000,000 |
Interest rate on borrowings | 2.64% | 2.64% |
Other Long-Term Liabilities derivatives | ||
Disclosure of detailed information about financial instruments | ||
Other Long-Term Liabilities, Fair value and carrying value | $ 27,000,000 | $ 26,000,000 |
Other Long-Term Liabilities derivatives | Currency risk related to long-term debt | Cash flow hedging item (HFH) | U.S. Dollars | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | - | 2049 |
Rate | $ / $ | 1.34 | |
Other Long-Term Liabilities, Notional amount | $ 2,485,000,000 | |
Other Long-Term Liabilities, Fair value and carrying value | 22,000,000 | |
Spread included in fair value of derivative instruments | $ 92,000,000 | $ 38,000,000 |
Other Long-Term Liabilities derivatives | Currency risk related to long-term debt | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2025 | - |
Rate | $ / € | 1.09 | |
Other Long-Term Liabilities, Notional amount | $ 563,000,000 | |
Other Long-Term Liabilities, Fair value and carrying value | 19,000,000 | |
Spread included in fair value of derivative instruments | $ 2,000,000 | |
Other Long-Term Liabilities derivatives | Interest rate risk | Cash flow hedging item (HFH) | 2.64% non-fixed rate credit facility | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2022 | 2022 |
Other Long-Term Liabilities, Notional amount | $ 133,000,000 | $ 130,000,000 |
Other Long-Term Liabilities, Fair value and carrying value | $ 8,000,000 | $ 4,000,000 |
Interest rate on borrowings | 2.64% | 2.64% |
financial instruments - Fair _2
financial instruments - Fair values Non-derivative (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments | ||
Long-term debt, excluding leases | $ 16,797 | $ 16,813 |
Measured at amortized cost but fair value disclosed | ||
Disclosure of detailed information about financial instruments | ||
Long-term debt, excluding leases | 18,121 | 17,930 |
Carrying value | ||
Disclosure of detailed information about financial instruments | ||
Long-term debt, excluding leases | $ 16,797 | $ 16,813 |
financial instruments - Derivat
financial instruments - Derivative gains and losses (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Currency risk | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | $ (250) | $ (36) | $ 420 | $ (166) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | (127) | (54) | 230 | (114) |
Derivatives | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (250) | (41) | 410 | (161) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | (126) | (55) | 229 | (108) |
Derivatives | Currency risk | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (250) | (36) | 420 | (166) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | (127) | (54) | 230 | (114) |
Derivatives held for hedging | Currency risk related to purchases | U.S. Dollars | Goods and services purchased | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (13) | (7) | 18 | (15) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | 5 | 4 | 7 | 9 |
Derivatives held for hedging | Currency risk related to long-term debt | U.S. Dollars | Financing costs | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (216) | (29) | 424 | (151) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | (129) | (58) | 223 | (123) |
Spread included in fair value of derivative instruments | (4) | (4) | 54 | 7 |
Derivatives held for hedging | Currency risk related to investment in a foreign operation | Financing costs | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (21) | (22) | ||
Gain (loss) reclassified from other comprehensive income to income (effective portion) | (3) | |||
Spread included in fair value of derivative instruments | 2 | 2 | ||
Derivatives held for hedging | Other market risk | Employee benefits expense | ||||
Disclosure of detailed information about financial instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (5) | (10) | 5 | |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | 1 | (1) | (1) | 6 |
Derivatives held for trading | Currency risk | Financing costs | ||||
Disclosure of detailed information about financial instruments | ||||
Gain recognized in income on derivatives | $ 3 | $ 3 | 4 | 5 |
Cash flow hedging item (HFH) | Derivatives held for hedging | ||||
Disclosure of detailed information about financial instruments | ||||
Ineffective portion of derivative instruments classified as cash flow hedging items | $ 0 | $ 0 |
segment information - Operating
segment information - Operating revenue (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Operating revenues | |||||||
Revenues arising from contracts with customers | $ 3,656 | $ 3,587 | $ 7,319 | $ 7,076 | |||
Other operating income | 72 | 10 | 103 | 27 | |||
Total | 3,728 | 3,597 | 7,422 | 7,103 | |||
EBITDA | 1,359 | 1,373 | 2,768 | 2,752 | $ 5,570 | $ 5,554 | $ 5,336 |
Capital expenditures (excluding spectrum licences) | $ (2,911) | $ (2,889) | |||||
Wireless | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 1,832 | 1,978 | 3,717 | 3,897 | |||
Other operating income | (1) | 5 | (2) | 10 | |||
Total external revenues | 1,831 | 1,983 | 3,715 | 3,907 | |||
Intersegment revenues | 15 | 14 | 29 | 27 | |||
Total | 1,846 | 1,997 | 3,744 | 3,934 | |||
EBITDA | 870 | 919 | 1,804 | 1,827 | |||
Capital expenditures (excluding spectrum licences) | 234 | 223 | 428 | 400 | |||
Wireless | Service | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 1,485 | 1,534 | 3,008 | 3,034 | |||
Wireless | Equipment | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 347 | 444 | 709 | 863 | |||
Wireline | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 1,824 | 1,609 | 3,602 | 3,179 | |||
Other operating income | 73 | 5 | 105 | 17 | |||
Total external revenues | 1,897 | 1,614 | 3,707 | 3,196 | |||
Intersegment revenues | 64 | 60 | 127 | 116 | |||
Total | 1,961 | 1,674 | 3,834 | 3,312 | |||
EBITDA | 489 | 454 | 964 | 925 | |||
Capital expenditures (excluding spectrum licences) | 522 | 547 | 993 | 1,016 | |||
Wireline | Service | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 1,765 | 1,552 | 3,487 | 3,072 | |||
Wireline | Equipment | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 59 | 57 | 115 | 107 | |||
Consolidated | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 3,656 | 3,587 | 7,319 | 7,076 | |||
Other operating income | 72 | 10 | 103 | 27 | |||
Total external revenues | 3,728 | 3,597 | 7,422 | 7,103 | |||
Total | 3,728 | 3,597 | 7,422 | 7,103 | |||
EBITDA | 1,359 | 1,373 | 2,768 | 2,752 | |||
Capital expenditures (excluding spectrum licences) | 756 | 770 | 1,421 | 1,416 | |||
Consolidated | Service | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 3,250 | 3,086 | 6,495 | 6,106 | |||
Consolidated | Equipment | |||||||
Operating revenues | |||||||
Revenues arising from contracts with customers | 406 | 501 | 824 | 970 | |||
Eliminations | |||||||
Operating revenues | |||||||
Intersegment revenues | (79) | (74) | (156) | (143) | |||
Total | $ (79) | $ (74) | $ (156) | $ (143) |
segment information - Income be
segment information - Income before income taxes (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Income before income taxes | |||||||
Operating revenues external | $ 3,728 | $ 3,597 | $ 7,422 | $ 7,103 | |||
Goods and services purchased | 1,458 | 1,466 | 2,870 | 2,887 | |||
Employee benefits expense | 911 | 758 | 1,784 | 1,464 | |||
EBITDA | 1,359 | 1,373 | 2,768 | 2,752 | $ 5,570 | $ 5,554 | $ 5,336 |
Depreciation | 505 | 470 | 1,028 | 940 | |||
Amortization | 220 | 163 | 422 | 310 | |||
Operating income | 634 | 740 | 1,318 | 1,502 | |||
Financing costs | 202 | 189 | 394 | 357 | |||
Income before income taxes | $ 432 | $ 551 | $ 924 | $ 1,145 |
revenue from contracts with c_3
revenue from contracts with customers - Revenues (Details) - Minimum - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of transaction price allocated to remaining performance obligations | ||
Transaction price allocated to remaining performance obligations | $ 3,008 | $ 3,375 |
The 12-month period ending one year hence | ||
Disclosure of transaction price allocated to remaining performance obligations | ||
Transaction price allocated to remaining performance obligations | 2,227 | 2,405 |
The 12-month period ending two years hence | ||
Disclosure of transaction price allocated to remaining performance obligations | ||
Transaction price allocated to remaining performance obligations | 748 | 930 |
Thereafter | ||
Disclosure of transaction price allocated to remaining performance obligations | ||
Transaction price allocated to remaining performance obligations | $ 33 | $ 40 |
revenue from contracts with c_4
revenue from contracts with customers - Accounts receivable (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
revenue from contracts with customers | ||
Customer accounts receivable | $ 1,719 | $ 1,570 |
Accrued receivables - customer | 220 | 180 |
Allowance for doubtful accounts | (94) | (46) |
Total | 1,845 | 1,704 |
Accrued receivables - other | 159 | 258 |
Accounts receivable - current | $ 2,004 | $ 1,962 |
revenue from contracts with c_5
revenue from contracts with customers - Contract assets (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Contract assets | |||||
Contract assets at beginning of period | $ 1,069 | $ 1,449 | $ 1,238 | $ 1,475 | |
Net additions arising from operations | 176 | 350 | 347 | 671 | |
Amounts billed in period and thus reclassified to accounts receivable | (343) | (357) | (688) | (703) | |
Change in impairment allowance, net | (2) | (2) | 3 | (4) | |
Other | 1 | 1 | 1 | 2 | |
Contract assets at end of period | 901 | 1,441 | 901 | 1,441 | |
Reconciliation of contract assets presented in the Consolidated statements of financial position - current | |||||
Gross contract assets | 689 | 1,019 | 689 | 1,019 | |
Reclassification to contract liabilities of contracts with contract assets less than contract liabilities | (9) | (5) | (9) | (5) | |
Reclassification from contract liabilities of contracts with contract liabilities less than contract assets | (142) | (155) | (142) | (155) | |
Current contract assets | 538 | 859 | 538 | 859 | $ 737 |
Wireless segment | |||||
Contract assets | |||||
Amounts billed in period and thus reclassified to accounts receivable | (268) | (330) | (557) | (650) | |
The 12-month period ending one year hence | |||||
Contract assets | |||||
Contract assets at beginning of period | 910 | ||||
Contract assets at end of period | 689 | 1,019 | 689 | 1,019 | |
The 12-month period ending two years hence | |||||
Contract assets | |||||
Contract assets at beginning of period | 308 | ||||
Contract assets at end of period | 197 | 407 | 197 | 407 | |
Thereafter | |||||
Contract assets | |||||
Contract assets at beginning of period | 20 | ||||
Contract assets at end of period | $ 15 | $ 15 | $ 15 | $ 15 |
other operating income (Details
other operating income (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
other operating income | ||||
Government assistance | $ 3 | $ 5 | $ 6 | $ 12 |
Other sublet revenue | 1 | 1 | 1 | |
Investment income, gain (loss) on disposal of assets and other | (3) | 3 | (9) | 12 |
Interest income | 1 | 1 | 2 | 2 |
Changes in business combination-related accrued receivables and provisions | 71 | 103 | ||
Total | 72 | 10 | 103 | 27 |
Subsidy receipts | 2 | 4 | 5 | 8 |
Quebec employment positions tax credit | $ 1 | $ 4 | $ 1 | $ 4 |
employee benefits expense (Deta
employee benefits expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee benefits expense - gross | ||||
Wages and salaries | $ 901 | $ 762 | $ 1,781 | $ 1,465 |
Share-based compensation | 46 | 30 | 78 | 64 |
Pensions - defined benefit | 25 | 19 | 52 | 39 |
Pensions - defined contribution | 25 | 20 | 46 | 43 |
Restructuring costs | 10 | 19 | 20 | 34 |
Other | 43 | 47 | 89 | 89 |
Total | 1,050 | 897 | 2,066 | 1,734 |
Capitalized internal labour costs, net | ||||
Capitalized contract acquisition costs | (16) | (12) | (33) | (24) |
Amortized contract acquisition costs | 13 | 11 | 26 | 23 |
Capitalized contract fulfilment costs | (1) | (2) | (1) | |
Amortized contract fulfilment costs | 1 | 2 | 1 | |
Property, plant and equipment | (83) | (90) | (170) | (175) |
Intangible assets subject to amortization | (53) | (48) | (105) | (94) |
Total | (139) | (139) | (282) | (270) |
Net | $ 911 | $ 758 | $ 1,784 | $ 1,464 |
financing costs (Details)
financing costs (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest expense | ||||||
Interest on long-term debt, excluding lease liabilities - gross | $ 169 | $ 161 | $ 339 | $ 311 | ||
Interest on long-term debt, excluding lease liabilities - capitalized | (9) | (4) | (17) | (4) | ||
Interest on long-term debt, excluding lease liabilities | 160 | 157 | 322 | 307 | ||
Interest on lease liabilities | 17 | 16 | 35 | 32 | ||
Interest on short-term borrowings and other | 2 | 3 | 4 | 8 | ||
Interest accretion on provisions | 4 | 5 | 9 | 11 | ||
Long-term debt prepayment premium | 18 | 18 | ||||
Total | 201 | 181 | 388 | 358 | ||
Employee defined benefit plans net interest | 4 | 8 | ||||
Foreign exchange | (1) | 11 | 1 | 4 | ||
Total | 204 | 192 | 397 | 362 | ||
Interest income | (2) | (3) | (3) | (5) | ||
Net | 202 | 189 | 394 | 357 | ||
Net interest cost | 403 | 361 | $ 797 | $ 706 | ||
Interest on long-term debt, excluding lease liabilities - capitalized | (9) | $ (4) | (17) | $ (4) | ||
Employee defined benefit plans net interest | $ 4 | $ 8 | ||||
Composite interest rate on long-term debt, excluding lease liabilities (as a percent) | 4.33% |
income taxes - Expense composit
income taxes - Expense composition (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Current income tax expense | ||||
For the current reporting period | $ 83 | $ 71 | $ 285 | $ 197 |
Adjustments recognized in the current period for income taxes of prior periods | (2) | (1) | (4) | (1) |
Total | 81 | 70 | 281 | 196 |
Deferred income tax expense | ||||
Arising from the origination and reversal of temporary differences | 32 | 83 | (28) | 114 |
Revaluation of deferred income tax liability to reflect future income tax rates | (2) | (121) | (5) | (121) |
Adjustments recognized in the current period for income taxes of prior periods | 6 | (1) | 8 | (1) |
Total | 36 | (39) | (25) | (8) |
Income taxes | $ 117 | $ 31 | $ 256 | $ 188 |
income taxes - Rate reconciliat
income taxes - Rate reconciliations (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reconciliation of effective tax rate | ||||
Income taxes computed at applicable statutory rates | $ 113 | $ 147 | $ 243 | $ 308 |
Revaluation of deferred income tax liability to reflect future income tax rates | (2) | (121) | (5) | (121) |
Adjustments recognized in the current period for income taxes of prior periods | 4 | (2) | 4 | (2) |
Other | 2 | 7 | 14 | 3 |
Income taxes | $ 117 | $ 31 | $ 256 | $ 188 |
Reconciliation of effective tax rate (as a percent) | ||||
Applicable statutory rate (as a percent) | 26.20% | 26.70% | 26.30% | 26.90% |
Tax rate effect for revaluation of deferred income tax liability to reflect future income tax rates (as a percent) | (0.50%) | (22.00%) | (0.50%) | (10.60%) |
Tax rate effect for adjustments recognized in the current period for income taxes of prior periods (as a percent) | 0.90% | (0.30%) | 0.40% | (0.20%) |
Tax rate effect for other (as a percent) | 0.50% | 1.20% | 1.50% | 0.30% |
Tax rate for Income tax expense per Consolidated statements of income and other comprehensive income (as a percent) | 27.10% | 5.60% | 27.70% | 16.40% |
other comprehensive income (Det
other comprehensive income (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Items that may subsequently be reclassified to income | ||||
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance beginning | $ 287 | $ (68) | $ 65 | $ (19) |
Changes in unrealized fair value of derivatives designated as cash flow hedges total, before tax | (124) | 14 | 181 | (53) |
Income tax relating to changes in unrealized fair value of derivatives designated as cash flow hedges total | (27) | 4 | 56 | (14) |
Changes in unrealized fair value of derivatives designated as cash flow hedges total, net | (97) | 10 | 125 | (39) |
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance ending | 190 | (58) | 190 | (58) |
Accumulated foreign currency translation balance beginning | 94 | 28 | 42 | 22 |
Cumulative foreign currency translation adjustment, before tax | (10) | 11 | 42 | 17 |
Cumulative foreign currency translation adjustment, net | (10) | 11 | 42 | 17 |
Accumulated foreign currency translation balance ending | 84 | 39 | 84 | 39 |
Accumulated other comprehensive income balance beginning | 393 | (40) | 119 | 3 |
Accumulated other comprehensive income excluding employee defined benefit plan re-measurements, before tax | (134) | 25 | 223 | (36) |
Income tax relating to accumulated other comprehensive income | (27) | 4 | 56 | (14) |
Accumulated other comprehensive income excluding employee defined benefit plan re-measurements, net | (107) | 21 | 167 | (22) |
Accumulated other comprehensive income balance ending | 286 | (19) | 286 | (19) |
Item never reclassified to income | ||||
Accumulated available-for-sale financial assets balance beginning | 12 | 12 | ||
Accumulated available-for-sale financial assets balance ending | 12 | 12 | ||
Employee defined benefit plans re-measurements, before tax | (901) | 16 | (475) | 49 |
Income tax relating to employee defined benefit plan re-measurements | (232) | 8 | (122) | 17 |
Employee defined benefit plans re-measurements, net | (669) | 8 | (353) | 32 |
Other comp. income, before tax | (1,035) | 41 | (252) | 13 |
Aggregated income tax relating to components of other comprehensive income | (259) | 12 | (66) | 3 |
Total | (776) | 29 | (186) | 10 |
Attributable to: | ||||
Accumulated other comprehensive income | 286 | (19) | 286 | (19) |
Currency risk | ||||
Items that may subsequently be reclassified to income | ||||
Changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) arising, before tax | (250) | (36) | 420 | (166) |
Income tax relating to changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) arising | (43) | (4) | 100 | (32) |
Changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) transferred to net income, before tax | (127) | (54) | 230 | (114) |
Income tax relating to change in unrealized fair value of derivatives designated as cash flow hedges (gains) losses transferred to net income | 16 | 9 | (42) | 18 |
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance beginning | 294 | (70) | 66 | (19) |
Changes in unrealized fair value of derivatives designated as cash flow hedges total, before tax | (123) | 18 | 190 | (52) |
Income tax relating to changes in unrealized fair value of derivatives designated as cash flow hedges total | (27) | 5 | 58 | (14) |
Changes in unrealized fair value of derivatives designated as cash flow hedges total, net | (96) | 13 | 132 | (38) |
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance ending | 198 | (57) | 198 | (57) |
Other market risk | ||||
Items that may subsequently be reclassified to income | ||||
Changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) arising, before tax | (5) | (10) | 5 | |
Income tax relating to changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) arising | 1 | (2) | (2) | 1 |
Changes in unrealized fair value of derivatives designated as cash flow hedges gains (losses) transferred to net income, before tax | 1 | (1) | 1 | 6 |
Income tax relating to change in unrealized fair value of derivatives designated as cash flow hedges (gains) losses transferred to net income | (1) | 1 | (1) | |
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance beginning | (7) | 2 | (1) | |
Changes in unrealized fair value of derivatives designated as cash flow hedges total, before tax | (1) | (4) | (9) | (1) |
Income tax relating to changes in unrealized fair value of derivatives designated as cash flow hedges total | (1) | (2) | ||
Changes in unrealized fair value of derivatives designated as cash flow hedges total, net | (1) | (3) | (7) | (1) |
Accumulated change in unrealized fair value of derivatives designated as cash flow hedge balance ending | (8) | (1) | (8) | (1) |
Common equity | ||||
Items that may subsequently be reclassified to income | ||||
Accumulated other comprehensive income balance ending | 283 | (17) | 283 | (17) |
Item never reclassified to income | ||||
Total | (189) | 4 | ||
Attributable to: | ||||
Accumulated other comprehensive income | 283 | $ (17) | 283 | (17) |
Non-controlling interests | ||||
Items that may subsequently be reclassified to income | ||||
Accumulated other comprehensive income balance ending | 3 | 3 | ||
Item never reclassified to income | ||||
Total | 3 | $ 6 | ||
Attributable to: | ||||
Accumulated other comprehensive income | $ 3 | $ 3 |
per share amounts (Details)
per share amounts (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Effect of dilutive securities | |||||
Basic total weighted average number of Common Shares outstanding | [1] | 1,278 | 1,203 | 1,263 | 1,202 |
Effect of dilutive securities - Restricted share units | 2 | 1 | |||
Diluted total weighted average number of Common Shares outstanding | 1,280 | 1,203 | 1,264 | 1,202 | |
Restricted share units | |||||
Effect of dilutive securities | |||||
Outstanding share awards excluded in the calculation of diluted net income per Common Share | 0 | 0 | |||
Share option awards | |||||
Effect of dilutive securities | |||||
Outstanding share awards excluded in the calculation of diluted net income per Common Share | 0 | 2 | |||
[1] | Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). |
dividends per share (Details)
dividends per share (Details) - CAD ($) $ / shares in Units, $ in Millions | Jul. 30, 2020 | Oct. 01, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Dividends per share | ||||||||
Dividends per share | $ 0.29125 | $ 0.29125 | $ 0.29125 | $ 0.28125 | $ 0.27250 | $ 0.58250 | $ 0.55375 | |
Dividends Declared | $ 372 | $ 371 | $ 339 | $ 329 | $ 743 | $ 668 | ||
Dividend reinvestment and share purchase plan | ||||||||
Dividends per share | ||||||||
Maximum discount on common shares (as a percent) | 5.00% | |||||||
Offering price discount on Common Shares from Treasury (as a percent) | 2.00% | |||||||
Dividend reinvestment in Common Shares | $ 131 | $ 15 | $ 253 | $ 28 |
share-based compensation - Expe
share-based compensation - Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
share-based compensation | ||||||
Employee benefits expense | $ 46 | $ 30 | $ 78 | $ 64 | ||
Associated operating cash outflows | (5) | (10) | (14) | (25) | ||
Statement of cash flows adjustment | 41 | 20 | 64 | 39 | $ 23 | $ 2 |
Income tax benefit arising from share-based compensation | 11 | 8 | 19 | 17 | ||
Restricted share units | ||||||
share-based compensation | ||||||
Employee benefits expense | 38 | 17 | 60 | 40 | ||
Associated operating cash outflows | (1) | (7) | ||||
Statement of cash flows adjustment | 38 | 16 | 60 | 33 | ||
Cash inflows from cash-settled equity forward agreements | 1 | 2 | 2 | 3 | ||
Employee share purchase plan | ||||||
share-based compensation | ||||||
Employee benefits expense | 5 | 9 | 14 | 18 | ||
Associated operating cash outflows | (5) | (9) | (14) | (18) | ||
Share option awards | ||||||
share-based compensation | ||||||
Employee benefits expense | 3 | 4 | 4 | 6 | ||
Statement of cash flows adjustment | $ 3 | $ 4 | $ 4 | $ 6 |
share-based compensation - Rest
share-based compensation - Restricted share units (Details) - EquityInstruments | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
TELUS Corporation restricted share units | |||
share-based compensation | |||
Outstanding | 10,730,373 | 7,315,252 | |
Restricted share units with performance condition | Maximum | |||
share-based compensation | |||
Variable payout (as a percent) | 200.00% | ||
Restricted share units with performance condition | Minimum | |||
share-based compensation | |||
Variable payout (as a percent) | 0.00% | ||
Restricted share units with total customer connections performance condition | |||
share-based compensation | |||
Total customer connection payout weight (as a per cent) | 25.00% | ||
Outstanding | 449,850 | 282,100 | |
Restricted share units with relative total shareholder return performance condition | |||
share-based compensation | |||
Relative total shareholder return payout weight (as a per cent) | 75.00% | ||
Outstanding | 1,349,549 | 846,298 | |
Restricted share units with only service conditions | |||
share-based compensation | |||
Outstanding | 8,930,974 | 6,186,854 | |
Restricted share units without market performance conditions | |||
share-based compensation | |||
Outstanding | 9,380,824 | 9,060,044 | 6,468,954 |
share-based compensation - TELU
share-based compensation - TELUS Corp restricted share units activity (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020EquityInstruments$ / shares | Jun. 30, 2020EquityInstruments$ / shares | Dec. 31, 2020EquityInstruments$ / shares | |
Restricted share units without market performance conditions | |||
Number of restricted share units - Non-vested | |||
Outstanding, beginning of period | 9,060,044 | 6,468,954 | |
Granted | 288,443 | 2,910,882 | |
In lieu of dividends | 121,198 | 195,615 | |
Forfeited and cancelled | (71,853) | (166,316) | |
Outstanding, end of period | 9,380,824 | 9,380,824 | |
Number of restricted share units - vested | |||
Outstanding, beginning of period | 12,342 | 30,800 | |
In lieu dividends | 308 | 308 | |
Vested | 17,008 | 28,311 | |
Settled in cash | (17,149) | (46,910) | |
Outstanding, end of period | 12,509 | 12,509 | |
Weighted average grant-date fair value | |||
Outstanding, beginning of period, non-vested | $ / shares | $ 24.06 | $ 23.37 | |
Outstanding, beginning of period, vested | $ / shares | 19.10 | 22.02 | |
Issued - initial award | $ / shares | 22.63 | 25.40 | |
In lieu of dividends | $ / shares | 21.52 | 22.92 | |
Vested | $ / shares | 24 | 23.84 | |
Settled in cash | $ / shares | 24.01 | 23.89 | |
Forfeited and cancelled | $ / shares | 24.29 | 23.80 | |
Outstanding, end of period, non-vested | $ / shares | 23.98 | 23.98 | |
Outstanding, end of period, vested | $ / shares | $ 19.15 | $ 19.15 | |
Number of Rsu's | 12,509 | 12,509 | |
Next six months | |||
Weighted average grant-date fair value | |||
Number of Rsu's | 2,900,000 | ||
Cash settled for cost of share | $ / shares | $ 24.39 |
share-based compensation - TE_2
share-based compensation - TELUS International (Cda) Inc. restricted share units (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020EquityInstruments$ / shares | Jun. 30, 2020EquityInstruments$ / shares | |
TELUS International (Cda) Inc. restricted share units | Maximum | ||
share-based compensation | ||
Variable payout (as a percent) | 150.00% | 150.00% |
TELUS International (Cda) Inc. restricted share units | Minimum | ||
share-based compensation | ||
Variable payout (as a percent) | 0.00% | 0.00% |
TELUS International (Cda) Inc. Restricted Share Units US Dollar Denominated | ||
Number of restricted share units - Non-vested | ||
Outstanding, beginning of period | EquityInstruments | 463,978 | 465,245 |
Granted | EquityInstruments | 59,929 | 59,929 |
Forfeited | EquityInstruments | (1,475) | (2,742) |
Outstanding, end of period | EquityInstruments | 522,432 | 522,432 |
Weighted average grant-date fair value | ||
Outstanding, beginning of period, non-vested | $ / shares | $ 27.55 | $ 27.49 |
Granted | $ / shares | 52.85 | 52.85 |
Forfeited and cancelled | $ / shares | 27.81 | 27.93 |
Outstanding, end of period, non-vested | $ / shares | $ 30.45 | $ 30.45 |
share-based compensation - Empl
share-based compensation - Employee share purchase plan (Details) - Employee share purchase plan - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
share-based compensation | |||||
Dividend reinvestment in Common Shares | $ 9 | $ 8 | $ 18 | $ 17 | |
Purchase plan discount | 0.00% |
share-based compensation - TE_3
share-based compensation - TELUS Corporation share options (Details) - TELUS Corporation share options | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020EquityInstruments$ / shares | Jun. 30, 2020EquityInstruments$ / shares | Dec. 31, 2019EquityInstruments | Mar. 31, 2020EquityInstruments | |
share-based compensation | ||||
Number of share options outstanding, beginning of period | 2,522,700 | |||
Share options granted | 558,600 | 3,081,300 | 0 | |
Number of share options forfeited | (6,300) | (6,300) | ||
Number of share options outstanding, end of period | 3,075,000 | 3,075,000 | ||
Weighted average share price of options outstanding, beginning of period | $ / shares | $ 21.19 | |||
Weighted average share price of options granted | $ / shares | 22.88 | $ 21.50 | ||
Weighted average share price of options forfeited | $ / shares | 21.19 | 21.19 | ||
Weighted average share price of options outstanding, end of period | $ / shares | $ 21.50 | $ 21.50 | ||
Weighted average remaining contractual life (years) | 6 years 9 months 18 days | |||
Number of options exercisable | 0 | 0 | 0 | 0 |
Maximum | ||||
share-based compensation | ||||
Exercise period | 7 years | 7 years |
share-based compensation - Weig
share-based compensation - Weighted average assumptions used (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020Y$ / shares | Jun. 30, 2020Y$ / shares | Dec. 31, 2020CAD ($) | |
share-based compensation | |||
Share option award fair value (per share option) | $ 0.63 | $ 0.65 | |
Risk free interest rate | 0.37% | 0.97% | |
Expected lives(1) (years) | 4.25 | 4.25 | 7 |
Expected volatility | 12.10% | 12.30% | |
Dividend yield | 5.10% | 5.40% |
share-based compensation - TE_4
share-based compensation - TELUS International (Cda) Inc. share options (Details) | 6 Months Ended | |||
Jun. 30, 2020Options$ / shares | Jun. 30, 2020Options$ / shares | Mar. 31, 2020Options$ / shares | Mar. 31, 2020Options$ / shares | |
Telus International (Cda) Inc. share options, U.S. $ denominated | ||||
share-based compensation | ||||
Number of options outstanding | Options | 996,620 | 996,620 | 996,620 | 996,620 |
Weighted average share price of options outstanding | $ 31.11 | $ 31.11 | ||
Weighted average remaining contractual life (years) | 7 years | |||
TELUS International (Cda) Inc. share options, Canadian $ denominated | ||||
share-based compensation | ||||
Number of options outstanding | Options | 53,832 | 53,832 | 53,832 | 53,832 |
Weighted average share price of options outstanding | $ 21.36 | $ 21.36 | ||
Weighted average remaining contractual life (years) | 5 years 10 months 24 days | |||
Minimum | TELUS International (Cda) Inc. share options | ||||
share-based compensation | ||||
Variable payout (as a percent) | 0.00% | 0.00% | ||
Minimum | Telus International (Cda) Inc. share options, U.S. $ denominated | ||||
share-based compensation | ||||
Option price | $ 21.90 | |||
Maximum | TELUS International (Cda) Inc. share options | ||||
share-based compensation | ||||
Exercise period | 10 years | |||
Variable payout (as a percent) | 100.00% | 100.00% | ||
Maximum | Telus International (Cda) Inc. share options, U.S. $ denominated | ||||
share-based compensation | ||||
Option price | $ 40.26 |
employee future benefits - Defi
employee future benefits - Defined benefit pension plans expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Defined benefit pension plan expense (recovery) | |||||
Total | $ 25 | $ 19 | $ 52 | $ 39 | |
Pension plans | Pension plan | |||||
Defined benefit pension plan expense (recovery) | |||||
Current service cost | 23 | 18 | 46 | 36 | |
Past service costs | 3 | ||||
Interest expense arising from defined benefit obligations accrued | 74 | 83 | 148 | 167 | |
Return, including interest income, on plan assets | (538) | (217) | (174) | (662) | |
Interest effect on asset ceiling limit | 1 | 3 | 2 | 5 | |
Total | (463) | (131) | (24) | (490) | |
Administrative fees | 2 | 1 | 3 | 3 | |
Re-measurements arising from financial assumptions | 1,396 | 507 | |||
Changes in the effect of limiting net defined benefit assets to the asset ceiling | (28) | 115 | 441 | ||
Total | $ 930 | 3 | $ 535 | (10) | |
Discount rate used to determine defined benefit obligations | 2.75% | 2.75% | 3.10% | ||
Pension plans | Pension plan | Employee benefits expense | |||||
Defined benefit pension plan expense (recovery) | |||||
Current service cost | $ 23 | 18 | $ 46 | 36 | |
Past service cost | 3 | ||||
Administrative fees | 2 | 1 | 3 | 3 | |
Total | 25 | 19 | 52 | 39 | |
Pension plans | Pension plan | Financing costs | |||||
Defined benefit pension plan expense (recovery) | |||||
Interest expense arising from defined benefit obligations accrued | 74 | 83 | 148 | 167 | |
Return, including interest income, on plan assets | (71) | (86) | (142) | (172) | |
Interest effect on asset ceiling limit | 1 | 3 | 2 | 5 | |
Total | 4 | 8 | |||
Total | 4 | 8 | |||
Pension plans | Pension plan | Other comprehensive income | |||||
Defined benefit pension plan expense (recovery) | |||||
Re-measurements arising from financial assumptions | 1,396 | 507 | |||
Return, including interest income, on plan assets | (467) | (131) | (32) | (490) | |
Total | (467) | (131) | (32) | (490) | |
Changes in the effect of limiting net defined benefit assets to the asset ceiling | (28) | 115 | 441 | ||
Defined benefit pension plan expense (recovery) | $ 901 | $ (16) | $ 475 | $ (49) |
employee future benefits - De_2
employee future benefits - Defined contribution pension plans expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
employee future benefits | ||||
Union pension plan and public service pension plan contributions | $ 5 | $ 5 | $ 10 | $ 11 |
Other defined contribution pension plans | 20 | 15 | 36 | 32 |
Total | $ 25 | $ 20 | $ 46 | $ 43 |
restructuring and other costs_2
restructuring and other costs (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
restructuring and other costs | ||||||
Goods and services purchased | $ 60 | $ 8 | $ 110 | $ 26 | ||
Employee benefits expense | 10 | 21 | 20 | 39 | ||
Total | 70 | 29 | 130 | 65 | $ 199 | $ 134 |
Restructuring | ||||||
restructuring and other costs | ||||||
Goods and services purchased | 43 | 7 | 89 | 19 | ||
Employee benefits expense | 10 | 19 | 20 | 34 | ||
Total | 53 | 26 | 109 | 53 | ||
Other | ||||||
restructuring and other costs | ||||||
Goods and services purchased | 17 | 1 | 21 | 7 | ||
Employee benefits expense | 2 | 5 | ||||
Total | $ 17 | $ 3 | $ 21 | $ 12 |
property, plant and equipment_2
property, plant and equipment (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | $ 14,232 | ||||
Depreciation | $ 505 | $ 470 | 1,028 | $ 940 | |
Property, plant and equipment at end of period | 14,559 | 14,559 | |||
Contractual commitments for the acquisition of property, plant and equipment | 205 | 205 | $ 136 | ||
Owned assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 12,882 | ||||
Property, plant and equipment at end of period | 13,114 | 13,114 | |||
Owned assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 10,653 | ||||
Property, plant and equipment at end of period | 10,555 | 10,555 | |||
Owned assets | Buildings and leasehold improvements | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,262 | ||||
Property, plant and equipment at end of period | 1,280 | 1,280 | |||
Owned assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 498 | ||||
Property, plant and equipment at end of period | 496 | 496 | |||
Owned assets | Land | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 48 | ||||
Property, plant and equipment at end of period | 53 | 53 | |||
Owned assets | Assets under construction | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 421 | ||||
Property, plant and equipment at end of period | 730 | 730 | |||
Right-of-use lease assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,350 | ||||
Property, plant and equipment at end of period | 1,445 | 1,445 | |||
Right-of-use lease assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 213 | ||||
Property, plant and equipment at end of period | 254 | 254 | |||
Right-of-use lease assets | Real estate | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,093 | ||||
Property, plant and equipment at end of period | 1,154 | 1,154 | |||
Impairment of assets | 5 | ||||
Right-of-use lease assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 44 | ||||
Property, plant and equipment at end of period | 37 | 37 | |||
Cost/Gross amount | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 38,415 | ||||
Additions | 1,295 | ||||
Additions arising from business acquisitions | 65 | ||||
Dispositions, retirements and other | (532) | ||||
Net foreign exchange differences | 29 | ||||
Property, plant and equipment at end of period | 39,272 | 39,272 | |||
Cost/Gross amount | Owned assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 36,869 | ||||
Additions | 1,103 | ||||
Additions arising from business acquisitions | 23 | ||||
Dispositions, retirements and other | (500) | ||||
Net foreign exchange differences | 16 | ||||
Property, plant and equipment at end of period | 37,511 | 37,511 | |||
Cost/Gross amount | Owned assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 31,713 | ||||
Additions | 393 | ||||
Additions arising from business acquisitions | 4 | ||||
Dispositions, retirements and other | (379) | ||||
Assets under construction put into service | 263 | 263 | |||
Net foreign exchange differences | 2 | ||||
Property, plant and equipment at end of period | 31,996 | 31,996 | |||
Cost/Gross amount | Owned assets | Buildings and leasehold improvements | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 3,314 | ||||
Additions | 15 | ||||
Additions arising from business acquisitions | 12 | ||||
Dispositions, retirements and other | 1 | ||||
Assets under construction put into service | 39 | 39 | |||
Net foreign exchange differences | 5 | ||||
Property, plant and equipment at end of period | 3,386 | 3,386 | |||
Cost/Gross amount | Owned assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,373 | ||||
Additions | 24 | ||||
Additions arising from business acquisitions | 7 | ||||
Dispositions, retirements and other | (122) | ||||
Assets under construction put into service | 55 | 55 | |||
Net foreign exchange differences | 9 | ||||
Property, plant and equipment at end of period | 1,346 | 1,346 | |||
Cost/Gross amount | Owned assets | Land | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 48 | ||||
Additions | 5 | ||||
Property, plant and equipment at end of period | 53 | 53 | |||
Cost/Gross amount | Owned assets | Assets under construction | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 421 | ||||
Additions | 666 | ||||
Assets under construction put into service | (357) | (357) | |||
Property, plant and equipment at end of period | 730 | 730 | |||
Cost/Gross amount | Right-of-use lease assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,546 | ||||
Additions | 192 | ||||
Additions arising from business acquisitions | 42 | ||||
Dispositions, retirements and other | (32) | ||||
Net foreign exchange differences | 13 | ||||
Property, plant and equipment at end of period | 1,761 | 1,761 | |||
Cost/Gross amount | Right-of-use lease assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 219 | ||||
Additions | 54 | ||||
Dispositions, retirements and other | 1 | ||||
Property, plant and equipment at end of period | 274 | 274 | |||
Cost/Gross amount | Right-of-use lease assets | Real estate | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 1,267 | ||||
Additions | 131 | ||||
Additions arising from business acquisitions | 41 | ||||
Dispositions, retirements and other | (24) | ||||
Net foreign exchange differences | 13 | ||||
Property, plant and equipment at end of period | 1,428 | 1,428 | |||
Cost/Gross amount | Right-of-use lease assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | 60 | ||||
Additions | 7 | ||||
Additions arising from business acquisitions | 1 | ||||
Dispositions, retirements and other | (9) | ||||
Property, plant and equipment at end of period | 59 | 59 | |||
Accumulated depreciation | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (24,183) | ||||
Depreciation | 1,028 | ||||
Dispositions, retirements and other | (509) | ||||
Net foreign exchange differences | 11 | ||||
Property, plant and equipment at end of period | (24,713) | (24,713) | |||
Accumulated depreciation | Owned assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (23,987) | ||||
Depreciation | 904 | ||||
Dispositions, retirements and other | (503) | ||||
Net foreign exchange differences | 9 | ||||
Property, plant and equipment at end of period | (24,397) | (24,397) | |||
Accumulated depreciation | Owned assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (21,060) | ||||
Depreciation | 767 | ||||
Dispositions, retirements and other | (387) | ||||
Net foreign exchange differences | 1 | ||||
Property, plant and equipment at end of period | (21,441) | (21,441) | |||
Accumulated depreciation | Owned assets | Buildings and leasehold improvements | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (2,052) | ||||
Depreciation | 62 | ||||
Dispositions, retirements and other | (10) | ||||
Net foreign exchange differences | 2 | ||||
Property, plant and equipment at end of period | (2,106) | (2,106) | |||
Accumulated depreciation | Owned assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (875) | ||||
Depreciation | 75 | ||||
Dispositions, retirements and other | (106) | ||||
Net foreign exchange differences | 6 | ||||
Property, plant and equipment at end of period | (850) | (850) | |||
Accumulated depreciation | Right-of-use lease assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (196) | ||||
Depreciation | 124 | ||||
Dispositions, retirements and other | (6) | ||||
Net foreign exchange differences | 2 | ||||
Property, plant and equipment at end of period | (316) | (316) | |||
Accumulated depreciation | Right-of-use lease assets | Network assets | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (6) | ||||
Depreciation | 14 | ||||
Property, plant and equipment at end of period | (20) | (20) | |||
Accumulated depreciation | Right-of-use lease assets | Real estate | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (174) | ||||
Depreciation | 101 | ||||
Dispositions, retirements and other | (3) | ||||
Net foreign exchange differences | 2 | ||||
Property, plant and equipment at end of period | (274) | (274) | |||
Accumulated depreciation | Right-of-use lease assets | Other | |||||
property, plant and equipment | |||||
Property, plant and equipment at beginning of period | (16) | ||||
Depreciation | 9 | ||||
Dispositions, retirements and other | (3) | ||||
Property, plant and equipment at end of period | $ (22) | $ (22) |
intangible assets and goodwil_2
intangible assets and goodwill (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
intangible assets and goodwill | |||||
Balance at beginning of the period | $ 18,153 | ||||
Amortization | $ (220) | $ (163) | (422) | $ (310) | |
Net foreign exchange differences | 13 | ||||
Balance at end of the period | 19,762 | 19,762 | |||
Accumulated impairment losses of goodwill | 6,132 | 6,132 | $ 5,309 | ||
Contractual commitments for the acquisition of intangible assets | 48 | 48 | $ 45 | ||
Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 22,901 | ||||
Additions | 324 | ||||
Additions arising from business acquisitions | 1,583 | ||||
Dispositions, retirements and other | (297) | ||||
Net foreign exchange differences | 90 | ||||
Balance at end of the period | 24,601 | 24,601 | |||
Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (4,748) | ||||
Amortization | 422 | ||||
Dispositions, retirements and other | (344) | ||||
Balance at end of the period | (4,839) | (4,839) | |||
Allowance for doubtful accounts | |||||
intangible assets and goodwill | |||||
Accumulated impairment losses of goodwill | 0 | 0 | |||
Spectrum licences | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 9,937 | ||||
Balance at end of the period | 9,963 | 9,963 | |||
Spectrum licences | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 9,937 | ||||
Additions arising from business acquisitions | 9 | ||||
Dispositions, retirements and other | 17 | ||||
Balance at end of the period | 9,963 | 9,963 | |||
Total intangible assets | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 12,844 | ||||
Net foreign exchange differences | 13 | ||||
Balance at end of the period | 13,630 | 13,630 | |||
Total intangible assets | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 17,228 | ||||
Additions | 324 | ||||
Additions arising from business acquisitions | 811 | ||||
Dispositions, retirements and other | (297) | ||||
Net foreign exchange differences | 39 | ||||
Balance at end of the period | 18,105 | 18,105 | |||
Total intangible assets | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (4,384) | ||||
Amortization | 422 | ||||
Dispositions, retirements and other | (344) | ||||
Balance at end of the period | (4,475) | (4,475) | |||
Intangible assets subject to amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 2,907 | ||||
Net foreign exchange differences | 13 | ||||
Balance at end of the period | 3,667 | 3,667 | |||
Intangible assets subject to amortization | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 7,291 | ||||
Additions | 324 | ||||
Additions arising from business acquisitions | 802 | ||||
Dispositions, retirements and other | (314) | ||||
Net foreign exchange differences | 39 | ||||
Balance at end of the period | 8,142 | 8,142 | |||
Intangible assets subject to amortization | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (4,384) | ||||
Amortization | 422 | ||||
Dispositions, retirements and other | (344) | ||||
Balance at end of the period | (4,475) | (4,475) | |||
Customer contracts, related customer relationships and leasehold interests | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 747 | ||||
Net foreign exchange differences | 12 | ||||
Balance at end of the period | 1,471 | 1,471 | |||
Customer contracts, related customer relationships and leasehold interests | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 1,032 | ||||
Additions arising from business acquisitions | 735 | ||||
Dispositions, retirements and other | 48 | ||||
Net foreign exchange differences | 37 | ||||
Balance at end of the period | 1,852 | 1,852 | |||
Customer contracts, related customer relationships and leasehold interests | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (285) | ||||
Amortization | 97 | ||||
Dispositions, retirements and other | (13) | ||||
Balance at end of the period | (381) | (381) | |||
Software | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 1,842 | ||||
Net foreign exchange differences | 1 | ||||
Balance at end of the period | 1,816 | 1,816 | |||
Software | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 5,870 | ||||
Additions | 42 | ||||
Additions arising from business acquisitions | 20 | ||||
Dispositions, retirements and other | (333) | ||||
Assets under construction put into service | 232 | ||||
Net foreign exchange differences | 2 | ||||
Balance at end of the period | 5,833 | 5,833 | |||
Software | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (4,028) | ||||
Amortization | 322 | ||||
Dispositions, retirements and other | (334) | ||||
Balance at end of the period | (4,017) | (4,017) | |||
Access to rights-of-way and other | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 64 | ||||
Balance at end of the period | 77 | 77 | |||
Access to rights-of-way and other | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 135 | ||||
Additions | 1 | ||||
Additions arising from business acquisitions | 47 | ||||
Dispositions, retirements and other | (29) | ||||
Balance at end of the period | 154 | 154 | |||
Access to rights-of-way and other | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (71) | ||||
Amortization | 3 | ||||
Dispositions, retirements and other | 3 | ||||
Balance at end of the period | (77) | (77) | |||
Assets under construction | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 254 | ||||
Balance at end of the period | 303 | 303 | |||
Assets under construction | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 254 | ||||
Additions | 281 | ||||
Assets under construction put into service | (232) | ||||
Balance at end of the period | 303 | 303 | |||
Goodwill | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 5,309 | ||||
Balance at end of the period | 6,132 | 6,132 | |||
Goodwill | Cost/Gross amount | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | 5,673 | ||||
Additions arising from business acquisitions | 772 | ||||
Net foreign exchange differences | 51 | ||||
Balance at end of the period | 6,496 | 6,496 | |||
Goodwill | Accumulated amortization | |||||
intangible assets and goodwill | |||||
Balance at beginning of the period | (364) | ||||
Balance at end of the period | $ (364) | $ (364) |
intangible assets and goodwil_3
intangible assets and goodwill - Business acquisitions (Details) - CAD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jan. 31, 2020 | |
Acquisition effected by way of: | ||
Shares issued | $ 1,453 | |
Customer contracts and related customer relationships | ||
Acquisition effected by way of: | ||
Useful life of intangible assets | 10 years | |
Software | Minimum | ||
Acquisition effected by way of: | ||
Useful life of intangible assets | 3 years | |
Software | Maximum | ||
Acquisition effected by way of: | ||
Useful life of intangible assets | 5 years | |
Combined acquisitions | ||
Current assets | ||
Cash | $ 91 | |
Accounts receivable | 66 | |
Other | 3 | |
Total current assets | 160 | |
Non-current assets | ||
Intangible assets subject to amortization | 802 | |
Intangible assets with indefinite lives | 9 | |
Other | 2 | |
Total non-current assets | 878 | |
Total identifiable assets acquired | 1,038 | |
Current liabilities | ||
Accounts payable and accrued liabilities | 46 | |
Income and other taxes payable | 65 | |
Advance billings and customer deposits | 5 | |
Current maturities of long-term debt | 16 | |
Total current liabilities | 132 | |
Non-current liabilities | ||
Long-term debt | 215 | |
Deferred income taxes | 228 | |
Total non-current liabilities | 443 | |
Total liabilities assumed | 575 | |
Net assets acquired | 463 | |
Goodwill | 772 | |
Net assets acquired | 1,235 | |
Acquisition effected by way of: | ||
Cash consideration | 1,231 | |
Accounts payable and accrued liabilities | 4 | |
Total consideration transferred | 1,235 | |
Combined acquisitions | Owned assets | ||
Non-current assets | ||
Property, plant and equipment | 23 | |
Combined acquisitions | Right-of-use lease assets | ||
Non-current assets | ||
Property, plant and equipment | $ 42 | |
Individually immaterial transactions | ||
Business acquisition | ||
Ownership interest in businesses acquired (as a percentage) | 100.00% | |
Current assets | ||
Cash | $ 1 | |
Accounts receivable | 2 | |
Other | 1 | |
Total current assets | 4 | |
Non-current assets | ||
Intangible assets subject to amortization | 48 | |
Intangible assets with indefinite lives | 9 | |
Total non-current assets | 61 | |
Total identifiable assets acquired | 65 | |
Current liabilities | ||
Accounts payable and accrued liabilities | 4 | |
Advance billings and customer deposits | 5 | |
Current maturities of long-term debt | 5 | |
Total current liabilities | 14 | |
Non-current liabilities | ||
Long-term debt | 1 | |
Deferred income taxes | 10 | |
Total non-current liabilities | 11 | |
Total liabilities assumed | 25 | |
Net assets acquired | 40 | |
Goodwill | 48 | |
Net assets acquired | 88 | |
Acquisition effected by way of: | ||
Cash consideration | 84 | |
Accounts payable and accrued liabilities | 4 | |
Total consideration transferred | 88 | |
Individually immaterial transactions | Owned assets | ||
Non-current assets | ||
Property, plant and equipment | 2 | |
Individually immaterial transactions | Right-of-use lease assets | ||
Non-current assets | ||
Property, plant and equipment | $ 2 | |
Competence Call Center | ||
Business acquisition | ||
Ownership interest in businesses acquired (as a percentage) | 100.00% | |
Current assets | ||
Cash | $ 90 | |
Accounts receivable | 64 | |
Other | 2 | |
Total current assets | 156 | |
Non-current assets | ||
Intangible assets subject to amortization | 754 | |
Other | 2 | |
Total non-current assets | 817 | |
Total identifiable assets acquired | 973 | |
Current liabilities | ||
Accounts payable and accrued liabilities | 42 | |
Income and other taxes payable | 65 | |
Current maturities of long-term debt | 11 | |
Total current liabilities | 118 | |
Non-current liabilities | ||
Long-term debt | 214 | |
Deferred income taxes | 218 | |
Total non-current liabilities | 432 | |
Total liabilities assumed | 550 | |
Net assets acquired | 423 | |
Goodwill | 724 | |
Net assets acquired | 1,147 | |
Acquisition effected by way of: | ||
Cash consideration | 1,147 | |
Total consideration transferred | 1,147 | |
Competence Call Center | Owned assets | ||
Non-current assets | ||
Property, plant and equipment | 21 | |
Competence Call Center | Right-of-use lease assets | ||
Non-current assets | ||
Property, plant and equipment | $ 40 |
intangible assets and goodwil_4
intangible assets and goodwill - Business acquisition pro forma information (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Pro forma Information | |||||
Reported Operating revenues | $ 3,728 | $ 3,597 | $ 7,422 | $ 7,103 | |
Reported Net income | 315 | $ 520 | 668 | $ 957 | |
Pro forma Operating revenues | 3,730 | 7,475 | |||
Pro forma Net income | $ 315 | $ 668 | |||
Net income per Common Share | |||||
Basic | [1] | $ 0.23 | $ 0.43 | $ 0.51 | $ 0.79 |
Diluted | [1] | 0.23 | $ 0.43 | 0.51 | $ 0.79 |
Pro forma Basic | 0.23 | 0.51 | |||
Pro forma Diluted | $ 0.23 | $ 0.51 | |||
Competence Call Center | |||||
Net income per Common Share | |||||
Reported Operating revenues of acquiree | $ 141 | $ 226 | |||
Reported Net income of acquiree | $ 9 | $ (11) | |||
[1] | Amounts reflect retrospective application of March 17, 2020, share split (see Note 28(b)). |
intangible assets and goodwil_5
intangible assets and goodwill - Business acquisitions - prior period (Details) - Business that is complimentary to existing lines $ in Millions | 6 Months Ended |
Jun. 30, 2020CAD ($) | |
Business acquisition | |
Increase (decrease) in software | $ 32 |
Increase (decrease) in goodwill | (22) |
Increase (decrease) in deferred income taxes | $ 10 |
intangible assets and goodwil_6
intangible assets and goodwill - Business acquisition - subsequent to reporting period (Details) - Mobile Klinik - CAD ($) $ in Thousands | Jul. 31, 2020 | Jul. 01, 2020 |
Business acquisition | ||
Percentage of voting equity interests acquired | 100.00% | |
Cash consideration | $ 138,000 | |
Contingent consideration | 31,000 | |
Consideration for acquisition | $ 165,000 | |
Minimum | ||
Business acquisition | ||
Initial provision for the net identifiable assets acquired | $ 65,000 | |
Maximum | ||
Business acquisition | ||
Initial provision for the net identifiable assets acquired | $ 85,000 |
leases (Details)
leases (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income from subleasing right-of-use lease assets | ||||
Co-location sublet revenue included in operating service revenues | $ 5 | $ 4 | $ 9 | $ 9 |
Other sublet revenue included in other operating income | 1 | 1 | 1 | |
Lease payments | $ 98 | $ 81 | $ 200 | $ 184 |
other long-term assets (Details
other long-term assets (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
other long-term assets | ||
Pension assets | $ 1 | $ 155 |
Unbilled customer finance receivables | 319 | 225 |
Derivative assets | 413 | 76 |
Costs incurred to obtain or fulfill a contract with a customer | 100 | 109 |
Real estate joint venture advances | 114 | 104 |
Investment in real estate joint venture | 2 | 3 |
Investment in associate | 72 | |
Portfolio investments | 122 | 110 |
Prepaid maintenance | 61 | 55 |
Other | 151 | 82 |
Total | $ 1,355 | $ 919 |
other long-term assets - Costs
other long-term assets - Costs incurred to obtain and fulfill contracts with customers (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Balance, beginning of period | $ 345 | $ 358 | ||
Additions | 55 | 115 | ||
Amortization | (72) | (145) | ||
Balance, end of period | 328 | 328 | ||
Current | $ 228 | |||
Non-current | 100 | $ 109 | ||
Total | 328 | 328 | 328 | 358 |
Costs incurred to obtain contracts with customers | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Balance, beginning of period | 331 | 344 | ||
Additions | 54 | 113 | ||
Amortization | (71) | (143) | ||
Balance, end of period | 314 | 314 | ||
Current | 221 | |||
Non-current | 93 | |||
Total | 314 | 314 | 314 | 344 |
Costs incurred to fulfill contracts with customers | ||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||||
Balance, beginning of period | 14 | 14 | ||
Additions | 1 | 2 | ||
Amortization | (1) | (2) | ||
Balance, end of period | 14 | 14 | ||
Current | 7 | |||
Non-current | 7 | |||
Total | $ 14 | $ 14 | $ 14 | $ 14 |
real estate joint ventures an_3
real estate joint ventures and investment in associate - Summarized financial information (Details) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2013item | Jun. 30, 2020CAD ($) | Mar. 31, 2020CAD ($) | Jan. 13, 2020CAD ($) | Dec. 31, 2019CAD ($) | Jun. 30, 2019CAD ($) | Mar. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | |
Current assets | ||||||||
Cash and temporary investments, net | $ 971 | $ 1,058 | $ 535 | $ 217 | $ 588 | $ 414 | ||
Total | 4,420 | 4,353 | ||||||
Non-current assets | ||||||||
Other | 1,355 | 919 | ||||||
Total | 35,888 | 33,632 | ||||||
Total | 40,308 | 37,985 | ||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | 2,873 | 2,749 | ||||||
Total | 4,850 | 5,574 | ||||||
Non-current liabilities | ||||||||
Non-current | 17,956 | 17,142 | ||||||
Other | 1,157 | 806 | ||||||
Total | 23,078 | 21,752 | ||||||
Liabilities | 27,928 | 27,326 | ||||||
Owners' equity | ||||||||
TELUS | 12,046 | 10,548 | 10,504 | |||||
Other partners | 334 | 111 | ||||||
Total | 12,380 | 10,659 | $ 10,596 | $ 10,179 | ||||
Total | 40,308 | 37,985 | ||||||
Miovision Technologies Incorporated | ||||||||
Disclosure of associates | ||||||||
Consideration in cash | $ 73 | |||||||
Ownership interest in businesses acquired (as a percentage) | 28.00% | |||||||
Real estate joint ventures | ||||||||
Current assets | ||||||||
Cash and temporary investments, net | 8 | 15 | ||||||
Other | 17 | 18 | ||||||
Total | 25 | 33 | ||||||
Non-current assets | ||||||||
Investment property under development | 331 | 318 | ||||||
Other | 14 | 2 | ||||||
Total | 345 | 320 | ||||||
Total | 370 | 353 | ||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | 40 | 25 | ||||||
Construction holdback liabilities | 15 | |||||||
Total | 40 | 40 | ||||||
Non-current liabilities | ||||||||
Other | 3 | |||||||
Total | 342 | 315 | ||||||
Liabilities | 382 | 355 | ||||||
Owners' equity | ||||||||
TELUS | (3) | 1 | ||||||
Other partners | (9) | (3) | ||||||
Total | (12) | (2) | ||||||
Total | 370 | 353 | ||||||
Real estate joint ventures | Construction credit facility commitment | ||||||||
Non-current liabilities | ||||||||
Non-current | $ 342 | $ 312 | ||||||
TELUS Sky real estate joint venture | ||||||||
Real estate joint ventures | ||||||||
Number of other partners in the transaction | item | 2 |
real estate joint ventures an_4
real estate joint ventures and investment in associate - Net income (loss) and comprehensive income (loss) (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Real estate joint ventures | |||||
Interest expense | $ 204 | $ 192 | $ 397 | $ 362 | |
Net income | 315 | 520 | 668 | 957 | |
Comprehensive income | (461) | 549 | 482 | 967 | |
Real estate joint ventures | |||||
Real estate joint ventures | |||||
Net income | (31) | (33) | (1) | ||
Comprehensive income | 0 | 0 | 0 | 0 | |
Capitalized financing costs | 1 | 3 | 4 | 6 | |
Provision for income taxes of the partners recognized in net income and comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
real estate joint ventures an_5
real estate joint ventures and investment in associate - Investment activity (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related to real estate joint ventures' statements of income and other comprehensive income | ||||
Comprehensive income attributable to us | $ (477) | $ 543 | $ 451 | $ 949 |
Real estate joint ventures | ||||
Related to real estate joint ventures' statements of income and other comprehensive income | ||||
Comprehensive income attributable to us | 10 | 11 | ||
Items not affecting currently reported cash flows | ||||
Construction credit facilities financing costs charged by us and other | 1 | 1 | 2 | 2 |
Cash flows in the current reporting period | ||||
Construction credit facilities amounts advanced | 3 | 9 | 10 | 17 |
Financing costs paid to us | (1) | (1) | (2) | (2) |
Funds we advanced or contributed, excluding construction credit facilities | 5 | 5 | ||
Funds repaid to us and earnings distributed | (1) | |||
Net increase | (2) | 9 | 3 | 17 |
Real estate joint ventures carrying amounts | ||||
Balance, beginning of period | 101 | 82 | 102 | 74 |
Valuation provision recorded in beginning of period balance now recorded in joint venture | 6 | |||
Balance, end of period | 105 | 91 | 105 | 91 |
Real estate joint ventures | Equity | ||||
Related to real estate joint ventures' statements of income and other comprehensive income | ||||
Comprehensive income attributable to us | 10 | 11 | ||
Cash flows in the current reporting period | ||||
Funds we advanced or contributed, excluding construction credit facilities | 5 | 5 | ||
Funds repaid to us and earnings distributed | (1) | |||
Net increase | (5) | (7) | ||
Real estate joint ventures carrying amounts | ||||
Balance, beginning of period | (10) | 5 | (2) | 5 |
Valuation provision recorded in beginning of period balance now recorded in joint venture | 6 | |||
Balance, end of period | (9) | 5 | (9) | 5 |
Real estate joint ventures | Loans and receivables | ||||
Items not affecting currently reported cash flows | ||||
Construction credit facilities financing costs charged by us and other | 1 | 1 | 2 | 2 |
Cash flows in the current reporting period | ||||
Construction credit facilities amounts advanced | 3 | 9 | 10 | 17 |
Financing costs paid to us | (1) | (1) | (2) | (2) |
Net increase | 3 | 9 | 10 | 17 |
Real estate joint ventures carrying amounts | ||||
Balance, beginning of period | 111 | 77 | 104 | 69 |
Balance, end of period | $ 114 | $ 86 | $ 114 | $ 86 |
real estate joint ventures an_6
real estate joint ventures and investment in associate - Commitments and contingent liabilities (Details) - CAD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
real estate joint venture | |||
Advances | $ 18,518 | $ 18,474 | $ 16,579 |
Real estate joint ventures | |||
real estate joint venture | |||
Construction financing amount | 342 | 342 | |
Real estate joint ventures | TELUS Corporation Construction Credit Facility | |||
real estate joint venture | |||
Construction financing amount | 114 | 114 | |
Undrawn | 10 | ||
Advances | 114 | 104 | |
Real estate joint ventures | Construction Credit Facility - Other | |||
real estate joint venture | |||
Construction financing amount | 228 | 228 | |
TELUS Sky real estate joint venture | |||
real estate joint venture | |||
Real estate joint venture approximate total capital spending | 475 | 450 | |
Contractual capital commitments | $ 23 | $ 37 | |
Percentage of financing provided | 33.333% | ||
Construction financing amount | $ 342 | ||
TELUS Sky real estate joint venture | Three Canadian financial institutions | |||
real estate joint venture | |||
Percentage of financing provided | 66.667% |
short-term borrowings (Details)
short-term borrowings (Details) - CAD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Disclosure of detailed information about borrowings | |||
Short-term borrowings | $ 100 | $ 100 | $ 100 |
TELUS Communications Inc. | Revolving period securitization agreement | |||
Disclosure of detailed information about borrowings | |||
Cash proceeds from monthly sales | 100 | 100 | |
Trade receivables sold | 118 | 124 | |
Short-term borrowings | 100 | 100 | |
TELUS Communications Inc. | Revolving period securitization agreement | Maximum | |||
Disclosure of detailed information about borrowings | |||
Trade receivables that can be sold under the securitization agreement | $ 500 | $ 500 |
accounts payable and accrued _3
accounts payable and accrued liabilities (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
accounts payable and accrued liabilities | ||
Accrued liabilities | $ 1,102 | $ 1,091 |
Payroll and other employee-related liabilities | 482 | 422 |
Restricted share units liability | 95 | 77 |
Total | 1,679 | 1,590 |
Trade accounts payable | 834 | 892 |
Interest payable | 170 | 160 |
Other | 190 | 107 |
Total | $ 2,873 | $ 2,749 |
advance billings and customer_3
advance billings and customer deposits (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
advance billings and customer deposits | |||
Advance billings | $ 548 | $ 522 | |
Deferred customer activation and connection fees | 8 | 9 | |
Customer deposits | 14 | 14 | |
Contract liabilities | 570 | 545 | $ 572 |
Other | 126 | 130 | |
Total | $ 696 | $ 675 |
advance billings and customer_4
advance billings and customer deposits - Contract liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
advance billings and customer deposits | ||||
Contract liabilities at beginning of period | $ 824 | $ 814 | $ 801 | $ 811 |
Revenue deferred in previous period and recognized in current period | (593) | (642) | (577) | (647) |
Net additions arising from operations | 571 | 638 | 573 | 641 |
Additions arising from business acquisitions | 1 | 5 | 6 | |
Contract liabilities at end of period | 802 | 811 | 802 | 811 |
Current | 721 | 732 | 721 | 732 |
Non-current | ||||
Deferred revenues | 70 | 65 | 70 | 65 |
Deferred customer activation and connection fees | $ 11 | $ 14 | $ 11 | $ 14 |
advance billings and customer_5
advance billings and customer deposits - Reconciliation of contract liabilities (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
advance billings and customer deposits | |||
Gross contract liabilities | $ 721 | $ 732 | |
Reclassification to contract assets for contracts with contract liabilities less than contract assets | (142) | (155) | |
Reclassification from contract assets for contracts with contract assets less than contract liabilities | (9) | (5) | |
Contract liabilities | $ 570 | $ 545 | $ 572 |
provisions (Details)
provisions (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | |
provisions reconciliation | |||
Balance at beginning of period | $ 842 | $ 878 | |
Additions | 85 | 115 | |
Reversal | (72) | (119) | |
Use | (155) | (200) | |
Interest effect | 4 | 9 | |
Effects of foreign exchange, net | (8) | 13 | |
Balance at end of period | 696 | 696 | |
Current | $ 83 | ||
Non-current | 613 | ||
Total | 696 | 696 | 696 |
Asset retirement obligation | |||
provisions reconciliation | |||
Balance at beginning of period | 497 | 495 | |
Use | (1) | (2) | |
Interest effect | 4 | 7 | |
Balance at end of period | 500 | 500 | |
Current | 10 | ||
Non-current | 490 | ||
Total | 500 | 500 | 500 |
Employee-related | |||
provisions reconciliation | |||
Balance at beginning of period | 41 | 64 | |
Additions | 10 | 20 | |
Use | (9) | (43) | |
Effects of foreign exchange, net | (1) | ||
Balance at end of period | 41 | 41 | |
Current | 35 | ||
Non-current | 6 | ||
Total | 41 | 41 | 41 |
Written put options | |||
provisions reconciliation | |||
Balance at beginning of period | 182 | 196 | |
Reversal | (70) | (103) | |
Use | (103) | (104) | |
Interest effect | 2 | ||
Effects of foreign exchange, net | (6) | 12 | |
Balance at end of period | 3 | 3 | |
Non-current | 3 | ||
Total | 3 | 3 | 3 |
Other | |||
provisions reconciliation | |||
Balance at beginning of period | 122 | 123 | |
Additions | 75 | 95 | |
Reversal | (2) | (16) | |
Use | (42) | (51) | |
Effects of foreign exchange, net | (1) | 1 | |
Balance at end of period | 152 | 152 | |
Current | 38 | ||
Non-current | 114 | ||
Total | $ 152 | $ 152 | $ 152 |
long-term debt (Details)
long-term debt (Details) $ in Millions, $ in Millions | Jun. 30, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Jun. 30, 2019CAD ($) |
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | $ 16,797 | $ 16,813 | ||
Lease liabilities | 1,721 | 1,661 | ||
Long-term debt | 18,518 | 18,474 | $ 16,579 | |
Current liabilities | 562 | 1,332 | ||
Non-current | 17,956 | 17,142 | ||
TELUS Corporation senior notes | ||||
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | 14,729 | 14,479 | ||
TELUS Corporation commercial paper | ||||
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | 1,015 | |||
Long-term debt | $ 781 | 1,015 | ||
TELUS Communications Inc. debentures | ||||
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | 622 | 621 | ||
TELUS International (Cda) Inc. credit facility | ||||
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | 1,167 | 431 | ||
Other | ||||
Details of long-term debt | ||||
Long-term debt excluding Lease liabilities | $ 279 | $ 267 |
long-term debt - TELUS Corporat
long-term debt - TELUS Corporation senior notes (Details) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2020CAD ($) | Jun. 30, 2020CAD ($) | Jun. 30, 2020USD ($)$ / NotesSeries$ / NotesSeries$ / $ | Jun. 30, 2020CAD ($)$ / NotesSeries$ / NotesSeries$ / $ | Jun. 23, 2020 | May 31, 2020CAD ($)$ / NotesSeries | Dec. 31, 2019CAD ($)$ / NotesSeries | Jun. 30, 2019CAD ($) | Mar. 31, 2018 | Feb. 28, 2018CAD ($)$ / NotesSeries | Mar. 31, 2017CAD ($)$ / NotesSeries | Dec. 31, 2015CAD ($)$ / NotesSeries | Apr. 30, 2014CAD ($)$ / NotesSeries | |
TELUS Corporation notes | |||||||||||||
Long-term debt | $ 18,518 | $ 18,474 | $ 16,579 | ||||||||||
Long-term debt prepayment premium | $ 18 | $ 18 | |||||||||||
TELUS Corporation senior notes | |||||||||||||
TELUS Corporation notes | |||||||||||||
Repurchase offer price, expressed as percentage of principal | 101.00% | ||||||||||||
Redemption price percentage | 100.00% | ||||||||||||
3.60% Notes, Series CM | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.60% | 3.60% | 3.60% | ||||||||||
Issued | November 2013 | ||||||||||||
Maturity | January 2021 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.15 | 997.15 | |||||||||||
Effective interest rate | 3.65% | 3.65% | |||||||||||
Principal face amount: Originally issued | $ 400 | ||||||||||||
Redemption present value spread - Basis points | 0.35% | 0.35% | |||||||||||
Redemption present value spread - Cessation date | N/A | ||||||||||||
3.20% Notes, Series CO | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.20% | 3.20% | 3.20% | ||||||||||
Issued | April 2014 | ||||||||||||
Maturity | April 2021 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.39 | 997.39 | |||||||||||
Effective interest rate | 3.24% | 3.24% | |||||||||||
Principal face amount: Originally issued | $ 500 | ||||||||||||
Redemption present value spread - Basis points | 0.30% | 0.30% | |||||||||||
Redemption present value spread - Cessation date | Mar. 5, 2021 | ||||||||||||
2.35% Notes, Series CT | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 2.35% | 2.35% | |||||||||||
Issued | March 2015 | ||||||||||||
Maturity | March 2022 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.31 | 997.31 | |||||||||||
Effective interest rate | 2.39% | 2.39% | |||||||||||
Principal face amount: Originally issued | $ 1,000 | ||||||||||||
Long-term debt | $ 1,000 | ||||||||||||
Redemption present value spread - Basis points | 0.355% | 0.355% | |||||||||||
Redemption present value spread - Cessation date | Feb. 28, 2022 | ||||||||||||
3.35% Notes, Series CJ | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.35% | 3.35% | |||||||||||
Issued | December 2012 | ||||||||||||
Maturity | March 2023 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 998.83 | 998.83 | |||||||||||
Effective interest rate | 3.36% | 3.36% | |||||||||||
Principal face amount: Originally issued | $ 500 | ||||||||||||
Long-term debt | $ 500 | ||||||||||||
Redemption present value spread - Basis points | 0.40% | 0.40% | |||||||||||
Redemption present value spread - Cessation date | Dec. 15, 2022 | ||||||||||||
3.35% Notes, Series CK | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.35% | 3.35% | |||||||||||
Issued | April 2013 | ||||||||||||
Maturity | April 2024 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 994.35 | 994.35 | |||||||||||
Effective interest rate | 3.41% | 3.41% | |||||||||||
Principal face amount: Originally issued | $ 1,100 | ||||||||||||
Long-term debt | $ 1,100 | ||||||||||||
Redemption present value spread - Basis points | 0.36% | 0.36% | |||||||||||
Redemption present value spread - Cessation date | Jan. 2, 2024 | ||||||||||||
3.75% Notes, Series CQ | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.75% | 3.75% | |||||||||||
Issued | September 2014 | ||||||||||||
Maturity | January 2025 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.75 | 997.75 | |||||||||||
Effective interest rate | 3.78% | 3.78% | |||||||||||
Principal face amount: Originally issued | $ 800 | ||||||||||||
Long-term debt | $ 800 | ||||||||||||
Redemption present value spread - Basis points | 0.385% | 0.385% | |||||||||||
Redemption present value spread - Cessation date | Oct. 17, 2024 | ||||||||||||
3.75% Notes, Series CV | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.75% | 3.75% | |||||||||||
Issued | December 2015 | ||||||||||||
Maturity | March 2026 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 992.14 | 992.14 | |||||||||||
Effective interest rate | 3.84% | 3.84% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.535% | 0.535% | |||||||||||
Redemption present value spread - Cessation date | Dec. 10, 2025 | ||||||||||||
2.75% Notes, Series CZ | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 2.75% | 2.75% | |||||||||||
Issued | July 2019 | ||||||||||||
Maturity | July 2026 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 998.73 | 998.73 | |||||||||||
Effective interest rate | 2.77% | 2.77% | |||||||||||
Principal face amount: Originally issued | $ 800 | ||||||||||||
Long-term debt | $ 800 | ||||||||||||
Redemption present value spread - Basis points | 0.33% | 0.33% | |||||||||||
Redemption present value spread - Cessation date | May 8, 2026 | ||||||||||||
2.80% U.S. Dollar Notes | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 2.80% | 2.80% | |||||||||||
Issued | September 2016 | ||||||||||||
Maturity | February 2027 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 991.89 | 991.89 | |||||||||||
Effective interest rate | 2.89% | 2.89% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.20% | 0.20% | |||||||||||
Redemption present value spread - Cessation date | Nov. 16, 2026 | ||||||||||||
2.80% U.S. Dollar Notes | Foreign exchange derivative | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 2.95% | 2.95% | |||||||||||
Principal face amount: Originally issued | $ 792 | ||||||||||||
Fixed exchange rate | $ / $ | 1.3205 | 1.3205 | |||||||||||
3.70% U.S. Dollar Notes | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.70% | 3.70% | |||||||||||
Issued | March 2017 | ||||||||||||
Maturity | September 2027 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 998.95 | 998.95 | |||||||||||
Effective interest rate | 3.71% | 3.71% | |||||||||||
Principal face amount: Originally issued | $ 500 | ||||||||||||
Long-term debt | $ 500 | ||||||||||||
Redemption present value spread - Basis points | 0.20% | 0.20% | |||||||||||
Redemption present value spread - Cessation date | June 15, 2027 | ||||||||||||
3.70% U.S. Dollar Notes | Foreign exchange derivative | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.41% | 3.41% | |||||||||||
Principal face amount: Originally issued | $ 667 | ||||||||||||
Fixed exchange rate | $ / $ | 1.3348 | 1.3348 | |||||||||||
2.35% Notes, Series CAC | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 2.35% | 2.35% | |||||||||||
Issued | May 2020 | ||||||||||||
Maturity | January 2028 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.25 | 997.25 | |||||||||||
Effective interest rate | 2.39% | 2.39% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.48% | 0.48% | |||||||||||
Redemption present value spread - Cessation date | Nov. 27, 2027 | ||||||||||||
3.625% Notes, Series CX | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.625% | 3.625% | |||||||||||
Issued | March 2018 | ||||||||||||
Maturity | March 2028 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 989.49 | 989.49 | |||||||||||
Effective interest rate | 3.75% | 3.75% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.37% | 0.37% | |||||||||||
Redemption present value spread - Cessation date | Dec. 1, 2027 | ||||||||||||
3.30% Notes, Series CY | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.30% | 3.30% | |||||||||||
Issued | April 2019 | ||||||||||||
Maturity | May 2029 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 991.75 | 991.75 | |||||||||||
Effective interest rate | 3.40% | 3.40% | |||||||||||
Principal face amount: Originally issued | $ 1,000 | ||||||||||||
Long-term debt | $ 1,000 | ||||||||||||
Redemption present value spread - Basis points | 0.435% | 0.435% | |||||||||||
Redemption present value spread - Cessation date | Feb. 2, 2029 | ||||||||||||
3.15% Notes, Series CAA | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.15% | 3.15% | |||||||||||
Issued | December 2019 | ||||||||||||
Maturity | February 2030 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 996.49 | 996.49 | |||||||||||
Effective interest rate | 3.19% | 3.19% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.395% | 0.395% | |||||||||||
Redemption present value spread - Cessation date | Nov. 19, 2029 | ||||||||||||
4.40% Notes, Series CL | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.40% | 4.40% | |||||||||||
Issued | April 2013 | ||||||||||||
Maturity | April 2043 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.68 | 997.68 | |||||||||||
Effective interest rate | 4.41% | 4.41% | |||||||||||
Principal face amount: Originally issued | $ 600 | ||||||||||||
Long-term debt | $ 600 | ||||||||||||
Redemption present value spread - Basis points | 0.47% | 0.47% | |||||||||||
Redemption present value spread - Cessation date | Oct. 1, 2042 | ||||||||||||
5.15% Notes, Series CN | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 5.15% | 5.15% | |||||||||||
Issued | November 2013 | ||||||||||||
Maturity | November 2043 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 995 | 995 | |||||||||||
Effective interest rate | 5.18% | 5.18% | |||||||||||
Principal face amount: Originally issued | $ 400 | ||||||||||||
Long-term debt | $ 400 | ||||||||||||
Redemption present value spread - Basis points | 0.50% | 0.50% | |||||||||||
Redemption present value spread - Cessation date | May 26, 2043 | ||||||||||||
4.85% Notes, Series CP | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.85% | 4.85% | 4.85% | ||||||||||
Issued | Multiple | ||||||||||||
Maturity | April 2044 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 987.91 | 987.91 | 974.38 | 998.74 | |||||||||
Effective interest rate | 4.93% | 4.93% | 5.02% | 4.86% | |||||||||
Principal face amount: Originally issued | $ 500 | $ 400 | $ 500 | ||||||||||
Long-term debt | $ 900 | ||||||||||||
Redemption present value spread - Basis points | 0.46% | 0.46% | |||||||||||
Redemption present value spread - Cessation date | Oct. 5, 2043 | ||||||||||||
4.75% Notes, Series CR | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.75% | 4.75% | |||||||||||
Issued | September 2014 | ||||||||||||
Maturity | January 2045 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 992.91 | 992.91 | |||||||||||
Effective interest rate | 4.80% | 4.80% | |||||||||||
Principal face amount: Originally issued | $ 400 | ||||||||||||
Long-term debt | $ 400 | ||||||||||||
Redemption present value spread - Basis points | 0.515% | 0.515% | |||||||||||
Redemption present value spread - Cessation date | July 17, 2044 | ||||||||||||
4.40% Notes, Series CU | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.40% | 4.40% | |||||||||||
Issued | March 2015 | ||||||||||||
Maturity | January 2046 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 999.72 | 999.72 | |||||||||||
Effective interest rate | 4.40% | 4.40% | |||||||||||
Principal face amount: Originally issued | $ 500 | ||||||||||||
Long-term debt | $ 500 | ||||||||||||
Redemption present value spread - Basis points | 0.605% | 0.605% | |||||||||||
Redemption present value spread - Cessation date | July 29, 2045 | ||||||||||||
4.70% Notes, Series CW | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.70% | 4.70% | 4.70% | ||||||||||
Issued | Multiple | ||||||||||||
Maturity | March 2048 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 998.06 | 998.06 | 1,014.11 | 990.65 | |||||||||
Effective interest rate | 4.71% | 4.71% | 4.61% | 4.76% | |||||||||
Principal face amount: Originally issued | $ 325 | $ 150 | $ 325 | ||||||||||
Long-term debt | $ 475 | ||||||||||||
Redemption present value spread - Basis points | 0.585% | 0.585% | |||||||||||
Redemption present value spread - Cessation date | Sept. 6, 2047 | ||||||||||||
4.60% U.S. Dollar Notes | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.60% | 4.60% | |||||||||||
Issued | June 2018 | ||||||||||||
Maturity | November 2048 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 987.60 | 987.60 | |||||||||||
Effective interest rate | 4.68% | 4.68% | |||||||||||
Principal face amount: Originally issued | $ 750 | ||||||||||||
Long-term debt | $ 750 | ||||||||||||
Redemption present value spread - Basis points | 0.25% | 0.25% | |||||||||||
Redemption present value spread - Cessation date | May 16, 2048 | ||||||||||||
4.60% U.S. Dollar Notes | Foreign exchange derivative | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.41% | 4.41% | |||||||||||
Principal face amount: Originally issued | $ 974 | ||||||||||||
Fixed exchange rate | $ / $ | 1.2985 | 1.2985 | |||||||||||
4.30% U.S. Dollar Notes | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.30% | 4.30% | |||||||||||
Issued | May 2019 | ||||||||||||
Maturity | June 2049 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 990.48 | 990.48 | |||||||||||
Effective interest rate | 4.36% | 4.36% | |||||||||||
Principal face amount: Originally issued | $ 500 | ||||||||||||
Long-term debt | $ 500 | ||||||||||||
Redemption present value spread - Basis points | 0.25% | 0.25% | |||||||||||
Redemption present value spread - Cessation date | Dec. 15, 2048 | ||||||||||||
4.30% U.S. Dollar Notes | Foreign exchange derivative | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 4.27% | 4.27% | |||||||||||
Principal face amount: Originally issued | $ 672 | ||||||||||||
Fixed exchange rate | $ / $ | 1.3435 | 1.3435 | |||||||||||
3.95% Notes, Series CAB | |||||||||||||
TELUS Corporation notes | |||||||||||||
Fixed interest rate | 3.95% | 3.95% | 3.95% | ||||||||||
Issued | Multiple | ||||||||||||
Maturity | February 2050 | ||||||||||||
Issue price per $1000 increment of debt | $ / NotesSeries | 997.54 | 997.54 | 1,003.53 | 991.54 | |||||||||
Effective interest rate | 3.97% | 3.97% | 3.93% | 4.00% | |||||||||
Principal face amount: Originally issued | $ 400 | $ 400 | $ 400 | ||||||||||
Long-term debt | $ 800 | ||||||||||||
Redemption present value spread - Basis points | 0.575% | 0.575% | |||||||||||
Redemption present value spread - Cessation date | Aug. 16, 2049 | ||||||||||||
Prior to maturity date | Foreign exchange derivative | |||||||||||||
TELUS Corporation notes | |||||||||||||
Redemption price percentage | 100.00% | ||||||||||||
Prior to maturity date | TELUS Corporation senior notes | Minimum | |||||||||||||
TELUS Corporation notes | |||||||||||||
Redemption period | 30 days | ||||||||||||
Prior to maturity date | TELUS Corporation senior notes | Maximum | |||||||||||||
TELUS Corporation notes | |||||||||||||
Redemption period | 60 days | ||||||||||||
On or after the redemption cessation date | TELUS Corporation senior notes | Minimum | |||||||||||||
TELUS Corporation notes | |||||||||||||
Redemption period | 30 days | ||||||||||||
On or after the redemption cessation date | TELUS Corporation senior notes | Maximum | |||||||||||||
TELUS Corporation notes | |||||||||||||
Redemption period | 60 days |
long-term debt - TELUS Corpor_2
long-term debt - TELUS Corporation commercial paper (Details) $ in Millions, $ in Millions | Jun. 30, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Jun. 30, 2019CAD ($) |
TELUS Corporation commercial paper | ||||
Maximum aggregate amount of credit facility | $ 2,250 | $ 2,250 | ||
Current portion of non-current borrowings | 562 | 1,332 | ||
Long-term debt | 18,518 | 18,474 | $ 16,579 | |
TELUS Corporation commercial paper | ||||
TELUS Corporation commercial paper | ||||
Maximum aggregate amount of credit facility | 1,400 | 1,400 | ||
Long-term debt | $ 781 | $ 1,015 | ||
TELUS Corporation credit facility | ||||
TELUS Corporation commercial paper | ||||
Maximum aggregate amount of credit facility | 2,250 | |||
Current portion of non-current borrowings | $ 0 |
long-term debt - TELUS Corpor_3
long-term debt - TELUS Corporation credit facility (Details) $ in Millions, $ in Millions | Jun. 30, 2020CAD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Jun. 30, 2019CAD ($) |
TELUS Corporation credit facility | ||||
Net available | $ 2,250 | $ 1,235 | ||
Gross available | 2,250 | 2,250 | ||
Long-term debt | $ 18,518 | 18,474 | $ 16,579 | |
TELUS Corporation credit facility | ||||
TELUS Corporation credit facility | ||||
Number of financial ratio tests | item | 2 | |||
Gross available | $ 2,250 | |||
Letters of credit outstanding | $ 191 | 184 | ||
TELUS Corporation credit facility | Maximum | ||||
TELUS Corporation credit facility | ||||
Leverage ratio | 4.25 | |||
TELUS Corporation credit facility | Minimum | ||||
TELUS Corporation credit facility | ||||
Operating cash flow to interest expense ratio | 2 | |||
TELUS Corporation commercial paper | ||||
TELUS Corporation credit facility | ||||
Gross available | $ 1,400 | 1,400 | ||
Long-term debt | $ 781 | $ 1,015 |
long-term debt - TELUS Internat
long-term debt - TELUS International (Cda) Inc. credit facility, Other and Lease Liabilities (Details) $ in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020USD ($)item | Jun. 30, 2020CAD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Jun. 30, 2019CAD ($) | |
long-term debt | |||||
Maximum aggregate amount of credit facility | $ 2,250 | $ 2,250 | |||
Long-term debt | 18,518 | 18,474 | $ 16,579 | ||
Undrawn borrowing facilities | 2,250 | 1,235 | |||
Interest obligations | $ 170 | $ 160 | |||
TELUS Corporation, share of lending, as a percent | 87.50% | ||||
Lease liabilities | |||||
long-term debt | |||||
Weighted average interest rate | 4.37% | 4.37% | |||
Minimum | First year | |||||
long-term debt | |||||
Leverage ratio | 4.75 | 4.75 | |||
Minimum | 2021 | |||||
long-term debt | |||||
Leverage ratio | 4.25 | 4.25 | |||
Minimum | Thereafter | |||||
long-term debt | |||||
Leverage ratio | 3.50 | 3.50 | |||
TELUS International (Cda) Inc. credit facility | |||||
long-term debt | |||||
Maximum aggregate amount of credit facility | $ 1,192 | $ 457 | |||
Undrawn borrowing facilities | $ 204 | 121 | |||
Number of financial ratio tests | item | 2 | 2 | |||
Percentage of principal advance required to be repaid each year of the term of the agreement | 5.00% | ||||
TELUS International (Cda) Inc. credit facility | Minimum | |||||
long-term debt | |||||
Operating cash flow to debt service ratio | 1.50 | 1.50 | |||
TELUS International (Cda) Inc. credit facility | Foreign exchange derivative | |||||
long-term debt | |||||
Fixed interest rate | 0.65% | 0.65% | |||
Amortizing amount, convertible | $ 415 | ||||
TELUS International (Cda) Inc. credit facility | Foreign exchange derivative | U.S. Dollars | |||||
long-term debt | |||||
Derivative Exchange Rate | 1.0932 | ||||
TELUS International (Cda) Inc. credit facility | Foreign exchange derivative | European euro | |||||
long-term debt | |||||
Derivative Exchange Rate | 1 | ||||
Revolving component | |||||
long-term debt | |||||
Maximum aggregate amount of credit facility | $ 600 | 350 | |||
Undrawn borrowing facilities | $ 204 | 121 | |||
Weighted average interest rate | 2.68% | 2.68% | |||
Term loan component | |||||
long-term debt | |||||
Maximum aggregate amount of credit facility | $ 600 | 120 | |||
Outstanding | $ 592 | 107 | |||
Weighted average interest rate | 2.68% | 2.68% | |||
Term loan component | Fixed interest rate | |||||
long-term debt | |||||
Interest obligations | $ 103 | ||||
Fixed interest rate | 2.64% | 2.64% | |||
Other | TELUS International (Cda) Inc. credit facility | |||||
long-term debt | |||||
Outstanding | $ 865 | 336 | |||
Other | Revolving component | |||||
long-term debt | |||||
Outstanding | 347 | 229 | |||
Other | Term loan component | |||||
long-term debt | |||||
Outstanding | $ 518 | $ 107 | |||
TELUS Corporation | |||||
long-term debt | |||||
TELUS Corporation, share of lending, as a percent | 12.50% | ||||
TELUS Corporation | TELUS International (Cda) Inc. credit facility | |||||
long-term debt | |||||
Outstanding | $ 123 | ||||
TELUS Corporation | Revolving component | |||||
long-term debt | |||||
Outstanding | 49 | ||||
TELUS Corporation | Term loan component | |||||
long-term debt | |||||
Outstanding | $ 74 |
long-term debt - Long-term debt
long-term debt - Long-term debt maturities (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | $ 1,721 | $ 1,661 |
Total | 30,623 | 30,566 |
Composite long-term debt | ||
Long-term debt maturities | ||
Total | 18,577 | |
Total | 9,401 | |
Total | 27,978 | |
Canadian Dollars | ||
Long-term debt maturities | ||
Total | 13,963 | |
Future cash outflows in respect of associated interest and like carrying costs | 6,827 | |
Undiscounted contractual maturities | 20,790 | |
Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 12,576 | |
Future cash outflows in respect of associated interest and like carrying costs | 6,452 | |
Undiscounted contractual maturities | 19,028 | |
Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 1,387 | |
Future cash outflows in respect of associated interest and like carrying costs - Finance leases | 375 | |
Undiscounted contractual maturities - Finance leases | 1,762 | |
U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 4,382 | |
Future cash outflows in respect of associated interest and like carrying costs | 2,672 | |
Undiscounted contractual maturities | 7,054 | |
U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 98 | |
Future cash outflows in respect of associated interest and like carrying costs - Finance leases | 19 | |
Undiscounted contractual maturities - Finance leases | 117 | |
U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (3,764) | |
Future cash outflows in respect of associated interest and like carrying costs - Derivative Liabilities | (2,575) | |
Undiscounted contractual maturities - Derivative Liabilities, Receive | (6,339) | |
U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 3,679 | |
Future cash outflows in respect of associated interest and like carrying costs - Derivative Liabilities | 2,409 | |
Undiscounted contractual maturities - Derivative Liabilities, Pay | 6,088 | |
U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 4,395 | |
Total | 2,525 | |
Total | 6,920 | |
Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 219 | |
Future cash outflows in respect of associated interest and like carrying costs - Finance leases | 49 | |
Undiscounted contractual maturities - Finance leases | 268 | |
First year | ||
Long-term debt maturities | ||
Total | 2,884 | 4,699 |
First year | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 203 | |
First year | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 151 | |
First year | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 7 | |
First year | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 144 | |
First year | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 18 | |
First year | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 11 | |
First year | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (14) | |
First year | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 14 | |
First year | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 29 | |
First year | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 23 | |
2 years hence | ||
Long-term debt maturities | ||
Total | 1,521 | 2,181 |
2 years hence | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 558 | |
2 years hence | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 455 | |
2 years hence | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 188 | |
2 years hence | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 267 | |
2 years hence | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 36 | |
2 years hence | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 23 | |
2 years hence | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (28) | |
2 years hence | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 28 | |
2 years hence | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 59 | |
2 years hence | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 44 | |
3 years hence | ||
Long-term debt maturities | ||
Total | 2,165 | 2,456 |
3 years hence | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 1,499 | |
3 years hence | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 1,407 | |
3 years hence | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 1,263 | |
3 years hence | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 144 | |
3 years hence | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 36 | |
3 years hence | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 22 | |
3 years hence | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (28) | |
3 years hence | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 28 | |
3 years hence | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 58 | |
3 years hence | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 34 | |
4 years hence | ||
Long-term debt maturities | ||
Total | 1,349 | 1,214 |
4 years hence | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 734 | |
4 years hence | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 651 | |
4 years hence | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 529 | |
4 years hence | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 122 | |
4 years hence | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 36 | |
4 years hence | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 18 | |
4 years hence | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (28) | |
4 years hence | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 28 | |
4 years hence | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 54 | |
4 years hence | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 29 | |
5 years hence | ||
Long-term debt maturities | ||
Total | 1,869 | 1,756 |
5 years hence | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 1,292 | |
5 years hence | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 1,225 | |
5 years hence | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 1,115 | |
5 years hence | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 110 | |
5 years hence | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 36 | |
5 years hence | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 8 | |
5 years hence | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (28) | |
5 years hence | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 28 | |
5 years hence | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 44 | |
5 years hence | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 23 | |
5 years hence and 10 years before | ||
Long-term debt maturities | ||
Total | 9,590 | 7,769 |
5 years hence and 10 years before | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 7,534 | |
5 years hence and 10 years before | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 4,985 | |
5 years hence and 10 years before | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 4,686 | |
5 years hence and 10 years before | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 299 | |
5 years hence and 10 years before | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 2,516 | |
5 years hence and 10 years before | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 15 | |
5 years hence and 10 years before | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (1,935) | |
5 years hence and 10 years before | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 1,907 | |
5 years hence and 10 years before | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 2,503 | |
5 years hence and 10 years before | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 46 | |
Thereafter | ||
Long-term debt maturities | ||
Total | 11,245 | $ 10,491 |
Thereafter | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 6,757 | |
Thereafter | Canadian Dollars | ||
Long-term debt maturities | ||
Total | 5,089 | |
Thereafter | Canadian Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 4,788 | |
Thereafter | Canadian Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 301 | |
Thereafter | U.S. Dollars | Long-term debt | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments | 1,704 | |
Thereafter | U.S. Dollars | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | 1 | |
Thereafter | U.S. Dollars | Derivative Liability Receive | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | (1,703) | |
Thereafter | U.S. Dollars | Derivative Liability Pay | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Derivative Liabilities | 1,646 | |
Thereafter | U.S. Dollars | Composite long-term debt | ||
Long-term debt maturities | ||
Total | 1,648 | |
Thereafter | Other currencies | Lease liabilities | ||
Long-term debt maturities | ||
Future cash outflows in respect of composite long-term debt principal repayments - Leases | $ 20 |
other long-term liabilities (De
other long-term liabilities (Details) - CAD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
other long-term liabilities | ||
Contract liabilities | $ 70 | $ 70 |
Other | 6 | 7 |
Deferred revenues | 76 | 77 |
Pension benefit liabilities | 934 | 580 |
Other post-employment benefit liabilities | 58 | 53 |
Restricted share unit and deferred share unit liabilities | 13 | 42 |
Derivative liabilities | 27 | 26 |
Investment in real estate joint ventures | 11 | 5 |
Other | 27 | 10 |
Subtotal | 1,146 | 793 |
Deferred customer activation and connection fees | 11 | 13 |
Other long-term liabilities | $ 1,157 | $ 806 |
owners' equity (Details)
owners' equity (Details) shares in Millions, $ in Millions | Mar. 17, 2020EquityInstruments | Dec. 31, 2019CAD ($)shares | Mar. 31, 2020CAD ($)shares | Jun. 30, 2020CAD ($)shares | Jun. 30, 2019Vote |
Common Share capital | |||||
Minimum percentage of common shares issued and outstanding owned by Canadians | 66.67% | ||||
Common Shares issued (in shares) | 58 | ||||
Gross proceeds of shares issued | $ | $ 1,500 | $ 1,495 | |||
Share split ratio | EquityInstruments | 2 | ||||
Dividend reinvestment and share purchase plan | |||||
Common Share capital | |||||
Shares reserved for issuance | 32 | ||||
Restricted share units | |||||
Common Share capital | |||||
Shares reserved for issuance | 24 | ||||
TELUS Corporation share options | |||||
Common Share capital | |||||
Shares reserved for issuance | 93 | ||||
First Preferred Shares | |||||
Common Share capital | |||||
Shares authorized | 1,000 | 1,000 | |||
Second Preferred Shares | |||||
Common Share capital | |||||
Shares authorized | 1,000 | 1,000 | |||
Common Shares | |||||
Common Share capital | |||||
Shares authorized | 4,000 | 4,000 | |||
Number of votes per common share | Vote | 1 | ||||
Common Shares | Maximum | |||||
Common Share capital | |||||
Purchase of common shares related to normal course issuer bid | 16 | ||||
Cost of purchase of common shares related to normal course issuer bid | $ | $ 250 |
owners' equity - Subsidiary wit
owners' equity - Subsidiary with significant non-controlling interest (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Statement of financial position | ||||||
Current assets | $ 4,420 | $ 4,420 | $ 4,353 | |||
Non-current assets | 35,888 | 35,888 | 33,632 | |||
Current liabilities | 4,850 | 4,850 | 5,574 | |||
Non-current liabilities | 23,078 | 23,078 | $ 21,752 | |||
Statement of income and other comprehensive income | ||||||
Revenue | 3,728 | $ 3,597 | 7,422 | $ 7,103 | ||
Net income | 315 | 520 | 668 | 957 | ||
Comprehensive income | $ (461) | 549 | 482 | 967 | ||
Subsidiary with significant non-controlling interest | ||||||
Subsidiary with significant non-controlling interest | ||||||
Treasury shares value purchased | $ 209 | |||||
Ownership interest percentage | 36.20% | 37.70% | 35.90% | |||
Percentage of increase in non-controlling interests | 1.80% | |||||
Percentage of decrease in non-controlling interests | 1.50% | |||||
Statement of financial position | ||||||
Current assets | $ 591 | 591 | $ 437 | |||
Non-current assets | 2,763 | 2,763 | 1,057 | |||
Current liabilities | 586 | 586 | 531 | |||
Non-current liabilities | 1,838 | 1,838 | $ 647 | |||
Statement of income and other comprehensive income | ||||||
Revenue | 611 | 336 | 1,077 | 645 | ||
Net income | 71 | 8 | 78 | 33 | ||
Comprehensive income | $ 45 | $ 19 | $ 85 | $ 51 |
contingent liabilities NTD - _2
contingent liabilities NTD - legal edits not reflected (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020CAD ($) | |
Claims and lawsuits | Area Code 867 blocking claim | |
Claims and lawsuits | |
Damages sought | $ 135 |
related party transactions (Det
related party transactions (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020CAD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2020CAD ($)EquityInstruments | Jun. 30, 2019CAD ($) | Dec. 31, 2019CAD ($) | |
Transactions with defined benefit pension plans | |||||
Charges for management and administrative services to our defined benefit pension plans | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 | $ 3,000,000 | |
Transactions with real estate joint venture and associate | |||||
Lease liabilities | 1,721,000,000 | 1,721,000,000 | $ 1,661,000,000 | ||
Key management personnel | |||||
Transactions with key management personnel | |||||
Short-term benefits | 2,000,000 | 2,000,000 | 4,000,000 | 5,000,000 | |
Post-employment pension and other benefits | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 | |
Share-based compensation | 11,000,000 | 5,000,000 | 10,000,000 | 20,000,000 | |
Total | 14,000,000 | 8,000,000 | $ 16,000,000 | 27,000,000 | |
Share options awarded | 0 | 0 | |||
Liability amounts accrued for share-based compensation awards to key management personnel | |||||
Restricted share units | 26,000,000 | $ 26,000,000 | $ 25,000,000 | ||
Deferred share units | 3,000,000 | 3,000,000 | 23,000,000 | ||
Total | 29,000,000 | $ 29,000,000 | 48,000,000 | ||
Annual cash bonus as a percentage of base salary upon termination without cause | 50.00% | ||||
Minimum | Key management personnel | |||||
Liability amounts accrued for share-based compensation awards to key management personnel | |||||
Number of months base salary considered for severance payments | 18 months | ||||
Maximum | Key management personnel | |||||
Liability amounts accrued for share-based compensation awards to key management personnel | |||||
Number of months base salary considered for severance payments | 24 months | ||||
Restricted share units | Key management personnel | |||||
Transactions with key management personnel | |||||
Number of restricted share units Awarded in period (in shares) | EquityInstruments | 811,954 | ||||
Notional value Awarded in period | $ 20,000,000 | ||||
Grant-date fair value Awarded in period | 28,000,000 | 28,000,000 | |||
Directors' Deferred Share Unit Plan | Key management personnel | |||||
Liability amounts accrued for share-based compensation awards to key management personnel | |||||
Deferred share units paid out | $ 3,000,000 | $ 3,000,000 | |||
TELUS Sky | |||||
Transactions with real estate joint venture and associate | |||||
Lease liabilities | $ 76,000,000 | $ 76,000,000 | $ 77,000,000 |
additional statement of cash _3
additional statement of cash flow information (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net change in non-cash operating working capital | ||||||
Accounts receivable | $ (1) | $ (197) | $ 24 | $ (223) | ||
Inventories | 33 | 25 | 102 | 42 | ||
Contract assets | 114 | 3 | 199 | 1 | ||
Prepaid expenses | 52 | (26) | 5 | (110) | ||
Accounts payable and accrued liabilities | 210 | 253 | 90 | 190 | ||
Income and other taxes receivable and payable, net | 67 | (53) | 145 | (269) | ||
Advance billings and customer deposits | 1 | (3) | 16 | 3 | ||
Provisions | (72) | 14 | (117) | (36) | ||
Total | 404 | 16 | 464 | (402) | $ 194 | $ 163 |
Cash payments for capital assets, excluding spectrum licences | ||||||
Property, plant and equipment | (693) | (718) | (1,295) | (1,357) | ||
Intangible assets subject to amortization | (174) | (166) | (324) | (299) | ||
Total | (867) | (884) | (1,619) | (1,656) | ||
Additions arising from leases | 110 | 110 | 192 | 232 | ||
Additions arising from non-monetary transactions | 1 | 4 | 6 | 8 | ||
Capital expenditures | (756) | (770) | (1,421) | (1,416) | ||
Change in associated non-cash investing working capital | 62 | 125 | (53) | (22) | ||
Total | $ (694) | $ (645) | $ (1,474) | $ (1,438) |
additional statement of cash _4
additional statement of cash flow information - Financing activities (Details) - CAD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in liabilities arising from financing activities | ||
Beginning | $ 352 | |
Redemptions, repayments or payments | (462) | |
Other | 482 | |
Ending | 372 | |
Dividends payable to holders of Common Shares | ||
Changes in liabilities arising from financing activities | ||
Beginning | 352 | $ 326 |
Redemptions, repayments or payments | (723) | (655) |
Other | 743 | 668 |
Ending | 372 | 339 |
Dividends reinvested in shares from Treasury | ||
Changes in liabilities arising from financing activities | ||
Redemptions, repayments or payments | 261 | 45 |
Other | (261) | (45) |
Dividends payable to holders of Common Shares net of dividends reinvested in shares from treasury | ||
Changes in liabilities arising from financing activities | ||
Beginning | 326 | |
Redemptions, repayments or payments | (610) | |
Other | 623 | |
Ending | 339 | |
Short-term borrowings | ||
Changes in liabilities arising from financing activities | ||
Beginning | 100 | 100 |
Issued or received | 200 | 407 |
Redemptions, repayments or payments | (200) | (407) |
Ending | 100 | 100 |
Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 18,437 | 15,409 |
Issued or received | 4,076 | 5,951 |
Redemptions, repayments or payments | (4,666) | (4,897) |
Foreign exchange movement (Note 4(e)) | 83 | (30) |
Other | 196 | 238 |
Ending | 18,126 | 16,671 |
Long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 18,437 | 15,409 |
Issued or received | 2,377 | 3,588 |
Redemptions, repayments or payments | (2,967) | (2,534) |
Foreign exchange movement (Note 4(e)) | 83 | (30) |
Other | 196 | 238 |
Ending | 18,126 | 16,671 |
TELUS Corporation senior notes | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 14,479 | 12,186 |
Issued or received | 1,000 | 1,674 |
Redemptions, repayments or payments | (900) | |
Foreign exchange movement (Note 4(e)) | 150 | (122) |
Other | (23) | |
Ending | 14,729 | 13,715 |
TELUS Corporation commercial paper | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 1,015 | 774 |
Issued or received | 612 | 1,901 |
Redemptions, repayments or payments | (1,692) | (2,363) |
Foreign exchange movement (Note 4(e)) | 65 | (19) |
Ending | 293 | |
TELUS Communications Inc. debentures | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 621 | 620 |
Other | 1 | 1 |
Ending | 622 | 621 |
TELUS International (Cda) Inc. credit facility | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 431 | 419 |
Issued or received | 765 | 13 |
Redemptions, repayments or payments | (68) | (21) |
Foreign exchange movement (Note 4(e)) | 45 | (17) |
Other | (6) | 2 |
Ending | 1,167 | 396 |
Other | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 267 | |
Redemptions, repayments or payments | (191) | |
Other | 203 | |
Ending | 279 | |
Lease liabilities | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | 1,661 | 1,483 |
Redemptions, repayments or payments | (165) | (152) |
Foreign exchange movement (Note 4(e)) | 17 | (13) |
Other | 208 | 236 |
Ending | 1,721 | 1,554 |
Derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt - liability (asset) | Long-term debt including derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Beginning | (37) | (73) |
Issued or received | 1,699 | 2,363 |
Redemptions, repayments or payments | (1,650) | (2,361) |
Foreign exchange movement (Note 4(e)) | (194) | 141 |
Other | (210) | 22 |
Ending | (392) | 92 |
To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar-denominated long-term debt | ||
Changes in liabilities arising from financing activities | ||
Issued or received | (1,699) | (2,363) |
Redemptions, repayments or payments | $ 1,699 | $ 2,363 |