Telus 2008 Annual Report Download - page 19

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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.
Value of intangible assets and goodwill
The carrying value of intangible assets with indefinite lives, and goodwill, are periodically
tested for impairment using a two-step impairment test. The frequency of the
impairment test generally is the reciprocal of the stability of the relevant events and
circumstances, but intangible assets with indefinite lives and goodwill must, at a
minimum, be tested annually. The Company has selected December as its annual test
time. No impairment amounts arose from the December 2008, 2007 and 2006 annual
tests. The test is applied to each of the Company’s two reporting units: wireline and
wireless, which reporting units are identified in accordance with the criteria in the
Canadian Institute of Chartered Accountants (CICA) Handbook section for intangible
assets and goodwill.
Intangible assets with finite lives (intangible assets subject to amortization) are
amortized on a straight-line basis over their estimated lives; estimated lives are reviewed
at least annually and are adjusted as appropriate.
RISK FACTORS
The risk factors in TELUS’ 2008 Annual Report and Management’s Discussion and
Analysis are hereby incorporated by reference. The 2008 Annual Report and
Management’s Discussion and Analysis are available at sedar.com.
ALLIANCES
Verizon software and related technology and services
Concurrently with the 2004 sale by Verizon Inc. of its equity interest in TELUS (the
Verizon Sale), Verizon and TELUS adjusted their business relationships to reflect
changes in their business requirements since their business alliance was first
established.
In particular, there were significant amendments to the January 1, 2001 alliance
agreement between TELUS and Verizon (the Verizon Agreement) under which TELUS
retained exclusive rights to a limited set of specified Verizon trademarks and service
marks, software and other technology in connection with the provision of
Telecommunications Services (as defined in the Verizon Agreement) in Canada, and
Verizon remained subject to a non-compete covenant on the provision of
Telecommunications Services in Canada.
The Verizon Agreement expired on December 31, 2008. In most instances, TELUS has
a right to use the specified Verizon software and technology on a non-exclusive basis
following the expiry of the agreement.
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