Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
(unaudited)
2. ASSUMPTIONS AND ADJUSTMENTS (Continued)
• Common equity increased by:
(1) $2,304.4 million from the TELUS equity issue; and
(2) $609.1 million for the elimination of Clearnet common share capital and retained deficit
• Goodwill and other intangibles have been recorded for the purchase price in excess of net tangible assets.
Income Statement
• Financing costs have increased by:
(1) $186.7 million as a result of interest expense on debt issued to affect the purchase, and
(2) $13.9 million for amortization of the deferred financing charge.
• The income tax adjustment reflects the recording of future income tax benefit on the current year loss, as
well as a reduction in taxes associated with the increased financing costs. The effective tax rate assumed
was 45.2%.
• Amortization of goodwill of $241.6 million associated with the purchase has been recorded based upon
an amortization period of 20 years.
(c) Other
• No other adjustments have been made to operating revenues and expenses for any changes expected to
occur in future years as a result of this reorganization.
• The purchase of QuebecTel by TELUS effective June 1, 2000 has not been reflected in these pro forma
statements.
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