Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
(unaudited)
3. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (Continued)
The acquisition is summarized as follows:
Net assets acquired:
Net working capital (including bank indebtedness acquired of $57.5 million) ........... $ (644.6)
Property and equipment ................................................. 2,531.4
Intangible assets ...................................................... 4,033.3
Goodwill ............................................................ 403.1
Deferred income tax asset ............................................... 587.8
Other assets ......................................................... 284.8
Long-term debt ....................................................... (667.7)
Deferred income tax liability ............................................. (1,855.3)
Other liabilities .......................................................
Financed by:
(10.4)
$ 4,662.4
Issuance of shares and replacement options ................................... $4,609.2
Repurchase of partial shares .............................................. 1.3
Transaction costs ...................................................... 51.9
$ 4,662.4
The results of TELUS prior to the merger date of January 31, 1999 would not be included in the results of
the Company under U.S. GAAP. Therefore, $15.3 million for the month ended January 31, 1999 has been
deducted from the net income under Canadian GAAP for the year ended December 31, 1999.
(b) Restructuring Charge
A charge of $466.3 million was recorded for the expected costs to complete merger-related restructuring
activities. Under U.S. GAAP, costs incurred to:
• exit an activity of an acquired company,
• involuntarily terminate employees of an acquired company, or
• relocate employees of an acquired company
are recognized as liabilities assumed in a purchase business combination. Therefore, qualifying merger
related restructuring costs (after tax) of $144.6 million associated with TELUS have been recorded as
liabilities assumed at the time of purchase.
(c) Depreciation
As TELUS capital assets on acquisition have been recorded at their fair value, depreciation of such assets
will be different under U.S. GAAP.
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