Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
16. PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Continued)
The Company provides certain disability and group life insurance benefits for all eligible employees.
The cost of these benefits is determined by an independent actuary and the annual funding
requirements are paid into specific trusts. The cost of these employee benefits is included in
Operations Expense.
17. RELATED PARTY TRANSACTIONS
Transactions with related parties included purchases and sales of telecommunications technology,
equipment and supplies, directory advertising commissions and payments for services rendered under
cost-sharing agreements. During the year the Company purchased goods and services from related parties
amounting to $139.9 million ($75.9 million — 1998). Sales to related parties amounted to $7.2 million
($7.7 million — 1998). These transactions were conducted in the normal course of business at prices
established and agreed to by both parties.
18. SEGMENTED INFORMATION
The Company’s reportable segments, which are used to manage the business, are:
• TELUS Communications (Wireline) — local access, long distance, and other voice services;
• Advanced Communications (Adv. Com.) — digital services, services on dedicated or specialized facilities,
internet, Ubiquity network (fibre) and ISM-BC;
• Mobility (Wireless) — cellular and paging services;
• Other — national operations, directory and advertising services.
Segmentation is based on similarities in technology, the technical expertise required to deliver the products
and services, and the distribution channels used.
The accounting policies used for segmented reporting are the same as described in the Summary of
Significant Accounting Policies, Note 1.
BCT.TELUS COMMUNICATIONS INC.
SEGMENTED DISCLOSURE
Wireline Wireless Adv. Com. Other Eliminations Totals
1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998
(millions)
External revenue . . . . . $3,783.0 $3,827.0 $960.2 $ 989.0 $800.9 $697.3 $328.2 $320.6 $ — $ — $5,872.3 $5,833.9
Inter-segment revenue . . 259.0 267.1 14.2 12.9 170.5 240.5 14.2 18.7 (457.9) (539.2) — —
Total operating revenue . 4,042.0 4,094.1 974.4 1,001.9 971.4 937.8 342.4 339.3 (457.9) (539.2) 5,872.3 5,833.9
Operations expenses . . . 2,388.4 2,407.6 595.0 626.6 799.3 785.9 218.9 224.4 (456.7) (529.3) 3,544.9 3,515.2
EBITDA* . . . . . . . . $1,653.6 $1,686.5 $379.4 $ 375.3 $172.1 $151.9 $123.5 $114.9 $ (1.2) $ (9.9) $2,327.4 $2,318.7
Capital additions . . . . . $ 617.5 $ 677.0 $165.2 $ 192.6 $147.3 $104.4 $269.2 $119.2 $ — $ — $1,199.2 $1,093.2
* EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization.
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