Offer to purchase CLEARNET.pdf - About TELUS

United States Generally Accepted Accounting Principles
Reconciliation of TELUS Interim Financial Information
The unaudited interim consolidated financial statements of the Company for the three months ended
March 31, 2000 and the six months ended June 30, 2000, incorporated by reference in this circular, have been
prepared by management in accordance with generally accepted accounting principles (‘‘GAAP’’) in Canada.
The material differences between Canadian GAAP and U.S. GAAP are fully described in
III-2
note 21 of the
Company’s audited consolidated financial statements contained in Schedule I to this Circular, except for the
difference arising from accounting for future employee benefits which is described in note (a) below.
The following table reconciles net income, as reported in the Company’s unaudited interim consolidated
financial statements, to net income that would have been reported under U.S. GAAP:
Six Months Ended Three Months
June 30 Ended March 31
2000 1999 2000 1999
(unaudited) (unaudited)
(millions)
(except per share amounts)
Net income (loss) in accordance with Canadian GAAP .............
Adjustments, net of tax:
$327.4 $ 4.7 $162.4 $(129.6)
Net income of TELUS prior to acquisition .................... — (15.3) — (15.3)
TELUS portion of the restructuring charge .................... — 144.6 — 144.6
Decrease in depreciation expense ........................... 9.7 8.0 4.8 3.2
Decrease in interest expense .............................. 16.0 6.5 8.0 2.6
Increase in future employee benefits (a) ...................... (4.6) — (2.3) —
Amortization of intangible assets ........................... (32.3) (26.9) (16.1) (10.8)
Goodwill amortization ................................... (10.1) (5.3) (5.0) (2.1)
Change in accounting policy ............................... — (30.8) — (30.8)
Asset impairment difference ............................... 20.0 20.0 10.0 10.0
Net income (loss) in accordance with U.S. GAAP .................
Earnings (loss) per share under U.S. GAAP (basic and diluted):
$326.1 $105.5 $161.8 $ (28.2)
Before extra-ordinary items ............................... $ 1.37 $ 0.44 $ 0.68 $ (0.12)
Extra-ordinary items .................................... — — — —
After extra-ordinary items ................................ $ 1.37 $ 0.44 $ 0.68 $ (0.12)