Telus 2005 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2005 Telus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 55

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55

16
Capital assets and goodwill
The principal capital assets of TELUS consist of telecommunications property, plant and
equipment and intangible assets and do not lend themselves to description by exact location. As
at December 31, 2005, the total investment of TELUS in capital assets was recorded at a net
book value of $10.9 billion on a consolidated basis. Such assets, located principally in Alberta,
B.C., Ontario and Québec, include network facilities, relay and transmission towers, switching
equipment, terminal devices, computers, motor vehicles, tools and test equipment, furniture,
office equipment and intangible assets. Spectrum licenses, which had a net book value of
$3.0 billion as at December 31, 2005, comprise the majority of identifiable intangible assets.
With the exception of terminal devices located at customer premises, most of the Company’s
communications plant and equipment are located on land owned or leased, or on rights-of-way
obtained, by TELUS.
The properties of TELUS include: (i) office space; (ii) work centres for field service and
materials management personnel; and (iii) space for exchange, toll and mobile radio equipment.
A small number of buildings are constructed on leasehold land and the majority of the relay
stations for TELUS’ public service radio-telephone network are situated on lands held under
leases or licenses for varying terms. The network facilities of TELUS are constructed under or
along streets or highways pursuant to rights-of-way granted by the owners of land including
municipalities and on land owned by the Crown or on freehold land owned by TELUS. Other
communications property, plant and equipment consist of plant under construction and materials
and supplies used for construction and repair purposes. Identifiable intangible assets include
wireless spectrum licenses, subscriber base and computer software.
As at December 31, 2005, goodwill had a net book value of $3.2 billion. Goodwill represents
the excess of cost of acquired businesses over the fair value attributed to the net identifiable
assets.
TELUS monitors its operations for compliance with applicable environmental requirements and
standards, and implements preventative and remedial actions as required. TELUS’ business of
telecommunications services does not generate significant waste products that would be
considered hazardous. For these reasons, remedial action has not been significant to the ongoing
operations and expenditures of TELUS.