Telus 2010 Annual Report Download - page 142

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138 . TELUS 2010 annual report
The following segmented information is regularly reported to the Company’s Chief Executive Officer (the Company’s chief operating decision-maker).
Wireless Wireline Eliminations Consolidated
Years ended December 31
(millions) 2010 2009 2010 2009 2010 2009 2010 2009
Operating revenues
External revenue $ß5,014 $ß4,707 $ß4,765 $ß4,899 $ – $ – $ß9,779 $ß9,606
Intersegment revenue 33 28 155 134 (188) (162) – –
$ß5,047 $ß4,735 $ß4,920 $ß5,033 $ß(188) $ß(162) $ß9,779 $ß9,606
EBITDA(1) $ß2,031 $ß1,933 $ß1,612 $ß1,558 $ – $ – $ß3,643 $ß3,491
CAPEX(2) $ 463 $ 770 $ß1,258 $ß1,333 $ – $ – $ß1,721 $ß2,103
EBITDA less CAPEX $ß1,568 $ß1,163 $ 354 $ 225 $ – $ – $ß1,922 $ß1,388
Operating revenues (above) $ß9,779 $ß9,606
Operations 6,062 5,925
Restructuring costs 74 190
EBITDA (above) 3,643 3,491
Depreciation 1,333 1,341
Amortization 402 381
Operating income 1,908 1,769
Other expense, net 32 32
Financing costs 510 532
Income before income taxes 1,366 1,205
Income taxes 328 203
Net income $ß1,038 $ß1,002
(1) Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely
to be comparable to similar measures presented by other issuers; EBITDA is defined by the Company as operating revenues less operations expense and restructuring costs.
The Company has issued guidance on, and reports, EBITDA because it is a key measure used by management to evaluate performance of its business segments and is utilized
in measuring compliance with certain debt covenants.
(2) Total capital expenditures (CAPEX).
6SEGMENTED INFORMATION
Summary disclosure of segmented information regularly reported to the Company’s
chief operating decision-maker
the technical expertise required to deliver the products and services,
customer characteristics, the distribution channels used and regulatory
treatment. Intersegment sales are recorded at the exchange value,
which is the amount agreed to by the parties.
The Company does not have material revenues attributed, or capital
assets and goodwill located, outside of Canada.
The Company’s operating segments and reportable segments are
Wireless and Wireline. The Wireless segment includes digital personal
communications services, equipment sales and wireless Internet services.
The Wireline segment includes voice local, voice long distance, data
(which includes TELUS TV) and other telecommunications services
excluding wireless. Segmentation is based on similarities in technology,