Offer to purchase CLEARNET.pdf - About TELUS

The following is a restatement of the statement of cash flows to reflect the application of U.S. GAAP:
Six Months Ended Three Months
June 30 Ended June 30
2000 1999 2000 1999
(unaudited) (unaudited)
(millions)
Operating Activities
Net income (loss) ................................... $ 326.1 $ 105.5 $ 161.8 $ (28.2)
Depreciation and amortization .......................... 567.4 490.4 280.3 219.1
Deferred income taxes ................................ 141.3 108.6 73.0 61.9
Non-cash restructuring related write-offs .................. — 7.2 — 7.4
Sinking fund earnings ................................ (4.1) (5.1) (2.9) (2.0)
Other, net ........................................ (48.0) 5.9 (29.7) 21.4
Operating cash flow ................................. 982.7 712.5 482.5 279.6
Provision for future cash restructuring costs ................ — 147.8 — 147.8
Changes in working capital ............................ (221.4) (168.1) (93.7) (73.5)
Cash from operations ................................ 761.3 692.2 388.8 353.9
Less — dividends to shareholders ........................ (167.6) (167.4) (83.8) (83.9)
Investing Activities
593.7 524.8 305.0 270.0
Purchase of TELUS ................................. — (110.7) — (110.7)
Purchase of QuebecTel ............................... (593.7) — — —
Capital expenditures, net .............................. (499.2) (477.4) (184.0) (182.8)
Other ............................................ (11.2) 16.9 (13.3) (6.8)
Financing Activities
(1,104.1) (571.2) (197.3) (300.3)
Common shares issued ............................... 9.7 1.9 5.9 1.1
Sinking fund withdrawal .............................. 109.5 — — —
Long-term debt issued ................................ 211.2 14.0 5.2 12.7
Increase (decrease) in short-term notes payable ............. 595.6 2.1 73.1 (106.9)
Redemptions of long-term debt ......................... (279.1) (122.0) (5.2) (17.2)
Other ............................................ (2.8) 1.1 (3.2) —
644.1 (102.9) 75.8 (110.3)
Increase (decrease) in cash ............................
Cash and temporary investments (bank indebtedness), beginning
133.7 (149.3) 183.5 (140.6)
of year .........................................
Cash and temporary investments (bank indebtedness),
(32.3) 125.9 (32.3) 125.9
end of year ...................................... $ 101.4 $ (23.4) $ 151.2 $ (14.7)
(a) Future Employee Benefits
Under U.S. GAAP, TELUS future employee benefit assets and obligations have been recorded at their fair
values on acquisition. Accounting for Future Employee Benefits under Canadian GAAP changed to become
more consistent with U.S. GAAP effective January 1, 2000. Canadian GAAP provides that the transitional
balances can be accounted for prospectively. Therefore, to conform to U.S. GAAP, the amortization of the
transitional amount needs to be removed from the future employee benefit expense.
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