Offer to purchase CLEARNET.pdf - About TELUS

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TELUS CORPORATION (FORMERLY BCT.TELUS COMMUNICATIONS INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 1999 19. UNCERTAINTY DUE TO THE YEAR 2000 Issue The Year 2000 Issue arises because many computerized systems use two digits rather than four to identify a year. Date-sensitive systems may recognize the year 2000 as 1900 or some other date, resulting in errors when information using year 2000 dates is processed. In addition, similar problems may arise in some systems which use certain dates in 1999 to represent something other than a date. Although the change in date has occurred, it is not possible to conclude that all aspects of the Year 2000 Issue that may affect the entity, including those related to customers, suppliers, or other third parties, have been fully resolved. 20. PRIOR YEAR PRESENTATION The 1998 amounts have been reclassified, where applicable, to conform with the 1999 presentation. 21. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES The consolidated financial statements have been prepared in accordance with generally accepted accounting principles (‘‘GAAP’’) in Canada. The principles adopted in these financial statements conform in all material respects to those generally accepted in the United States except as summarized below. Significant differences between Canadian GAAP and U.S. GAAP would have the following effect on reported net income of the Company: 1999 1998 (millions) (except per share amounts) Net income in accordance with Canadian GAAP ........................... Adjustments, net of tax: $349.7 $ 66.9 Net income of acquired company prior to acquisition (a) .................... (15.3) (249.3) TELUS portion of the restructuring charge (b) ........................... 144.6 — Decrease in depreciation expense (c) .................................. 17.7 — Decrease in interest expense (d) ..................................... 14.2 — Amortization of intangible assets (e) .................................. (59.2) — Goodwill amortization (f) .......................................... (11.6) — Change in accounting policy (g) ...................................... (30.8) 5.5 Asset impairment (h) ............................................. — (232.2) Asset impairment — decrease in depreciation (h) ......................... 40.0 40.0 Net income (loss) in accordance with U.S. GAAP .......................... Earnings (loss) per share under U.S. GAAP (basic and diluted): $449.3 $(369.1) Before extra-ordinary items ......................................... $ 1.88 $ (3.00) Extra-ordinary items .............................................. — — After extra-ordinary items .......................................... $ 1.88 $ (3.00) I-25
TELUS CORPORATION (FORMERLY BCT.TELUS COMMUNICATIONS INC.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) December 31, 1999 21. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (Continued) The following is a restatement of major balance sheet categories to reflect the application of U.S. GAAP: 1999 (millions) 1998 Current assets .................................................. $ 1,246.3 $ 568.4 Property, plant & equipment ....................................... 5,449.7 2,792.3 Goodwill ..................................................... 400.2 29.1 Intangible assets ................................................ 3,923.7 — Deferred income taxes ........................................... 603.5 355.7 Other assets ................................................... 332.4 167.6 $11,955.8 $3,913.1 Current liabilities ............................................... $ 1,794.5 $ 952.5 Long-term debt ................................................. 1,664.7 1,054.6 Other long-term liabilities ......................................... 141.0 84.7 Deferred income taxes ........................................... 1,804.9 — Non-controlling interest ........................................... 12.4 9.6 Shareholders’ equity ............................................. 6,538.3 1,811.7 $11,955.8 $3,913.1 The following is a reconciliation of shareholders’ equity incorporating the differences between Canadian and U.S. GAAP: 1999 1998 (millions) Shareholders’ Equity under Canadian GAAP ........................... Adjustments: $4,307.7 $ 4,343.0 Purchase versus Pooling Accounting (a)–(f) ........................... 2,382.8 (2,369.9) Change in Accounting Policy (g) ................................... — 30.8 Asset Impairment (h) ........................................... (152.2) (192.2) Shareholders’ Equity under U.S. GAAP ............................... $6,538.3 $ 1,811.7 I-26
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No securities commission or similar
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QUESTIONS AND ANSWERS ABOUT THE OFF
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outstanding voting shares of Clearn
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WHERE YOU CAN OBTAIN MORE INFORMATI
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SUMMARY The following is a summary
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Commitment to Accept the Offers by
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Selected Historical and Pro Forma C
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DEFINITIONS In the accompanying Sum
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‘‘Governmental Entity’’ mea
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‘‘Shareholders Agreements’’
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Shares and the amount of cash recei
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shares into the Depositary’s acco
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the person or persons specified by
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(l) neither TELUS nor the Banks bec
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condition of the Offers specified u
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(f) the Holdco Shareholder properly
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Notice of any determination regardi
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The Offers are not being made to, n
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On July 14, 2000, Darren Entwistle,
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espect of such Acquisition Proposal
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etter positioned to take advantage
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The funds obtained pursuant to the
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part of its national strategy, TELU
Page 47 and 48: to require holders of TELUS Non-Vot
Page 49 and 50: ‘‘Dividends’’ in TELUS’ A
Page 51 and 52: systems. Change in the regulation o
Page 53 and 54: (b) the management proxy circular o
Page 55 and 56: COMMITMENTS TO ACQUIRE SECURITIES O
Page 57 and 58: the proposed transaction is likely
Page 59 and 60: ACQUISITION OF CLEARNET SHARES NOT
Page 61 and 62: least equal in value to the conside
Page 63 and 64: Beneficial owners of Clearnet Conve
Page 65 and 66: separately dispose of the balance o
Page 67 and 68: also be taxable Canadian property w
Page 69 and 70: No brokerage fees or commissions wi
Page 71 and 72: CONSENT OF AUDITORS To: British Col
Page 73 and 74: CERTIFICATE OF 612459 B.C. LTD. The
Page 75 and 76: MANAGEMENT’S REPORT Management is
Page 77 and 78: TELUS CORPORATION (FORMERLY BCT.TEL
Page 87 and 88: 4. FINANCING COSTS TELUS CORPORATIO
Page 97: TELUS CORPORATION (FORMERLY BCT.TEL
Page 105 and 106: SCHEDULE II TELUS CORPORATION UNAUD
Page 107 and 108: COMPILATION REPORT To the Directors
Page 109 and 110: TELUS CORPORATION PRO FORMA CONSOLI
Page 111 and 112: TELUS CORPORATION NOTES TO THE PRO
Page 119 and 120: TELUS CORPORATION PRO FORMA CONSOLI
Page 127 and 128: SCHEDULE III TELUS CORPORATION U.S.
Page 129 and 130: The following table restates the ma
Page 131 and 132: ANNEX A ADDITIONAL INFORMATION ADDI
Page 133 and 134: Fares F. Salloum President — Inte
Page 135 and 136: Officers Name and Position held wit
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