Telus 2010 Annual Report Download - page 157

TELUS 2010 annual report . 153
FINANCIAL STATEMENTS & NOTES: 15–16
(a) Intangible assets and goodwill, net
Customer
Intangible assets subject to amortization
contracts and Intangible assets To t a l
the related Access to Assets with indefinite lives To t a l intangible
Subscriber customer rights-of-way under Spectrum Acquired intangible assets and
(millions) base relationships Software and other construction To t a l licences(1) brand To t a l assets Goodwill(1) goodwill
At cost
As at January 1, 2009 $ 245 $ 138 $ 2,082 $ 103 $ 197 $ 2,765 $ 4,867 $ ß– $ 4,867 $ 7,632 $ 3,928 $ 11,560
Additions – – 32 – 319 351 – – – 351 – 351
Additions arising from
business acquisitions – – – – – – – 7 7 7 8 15
Dispositions and retirements – (1) (63) – – (64) – – – (64) – (64)
Reclassifications
– – 357 1 (358) – – – – – – –
As at December 31, 2009 245 137 2,408 104 158 3,052 4,867 7 4,874 7,926 3,936 11,862
Additions – – 38 8 344 390 – – – 390 – 390
Dispositions and retirements – – (213) – – (213) – – – (213) – (213)
Reclassifications – – 262 – (262) – – – – – – –
As at December 31, 2010 $ß245 $ß137 $ß2,495 $ß112 $ß240 $ß3,229 $ß4,867 $ß7 $ß4,874 $ß8,103 $ß3,936 $ß12,039
Accumulated amortization
As at January 1, 2009 $ 46 $ 13 $ 1,314 $ 75 $ – $ 1,448 $ 1,018 $ ß– $ 1,018 $ 2,466 $ß 364 $ 2,830
Amortization 6 14 360 1 – 381 – – – 381 – 381
Dispositions and retirements – – (69) – – (69) – – – (69) – (69)
As at December 31, 2009 52 27 1,605 76 – 1,760 1,018 – 1,018 2,778 364 3,142
Amortization 6 14 378 4 – 402 – – – 402 – 402
Dispositions and retirements – – (211) – – (211) – – – (211) – (211)
As at December 31, 2010 $ß 58 $ß 41 $ß1,772 $ß 80 $ß – $ß1,951 $ß1,018 $ ß– $ß1,018 $ß2,969 $ 364 $ß 3,333
Net book value
As at December 31, 2009 $ 193 $ 110 $ß 803 $ 28 $ 158 $ 1,292 $ 3,849 $ß7 $ 3,856 $ 5,148 $ 3,572 $ 8,720
As at December 31, 2010 $ß187 $ß 96 $ 723 $ß 32 $ß240 $ß1,278 $ß3,849 $ß7 $ß3,856 $ß5,134 $ß3,572 $ß 8,706
(1) Accumulated amortization of spectrum licences and goodwill is amortization recorded prior to 2002.
16 INTANGIBLE ASSETS AND GOODWILL
Summary schedule of intangible assets, including goodwill and review of reported
fiscal year acquisitions from which goodwill arose
(c) Intangible assets with indefinite lives –
spectrum licences
The Company’s intangible assets with indefinite lives include spectrum
licences granted by Industry Canada. Industry Canada’s spectrum licence
policy terms indicate that the spectrum licences will likely be renewed.
The Company’s spectrum licences are expected to be renewed either
every five years or every ten years following a review by Industry Canada
of the Company’s compliance with licence terms and suitability for con-
tinued operation of the licences at terms to be established by Industry
Canada. In addition to current usage, the Company’s spectrum licensed
can be used for planned and new technologies. As a result of the com-
bination of the significant roles of these factors, the Company’s spectrum
licences are currently considered to have indefinite lives.
(b) Intangible assets subject to amortization
Estimated aggregate amortization expense for intangible assets subject to
amortization, calculated upon such assets held as at December 31, 2010,
for each of the next five fiscal years is as follows:
Years ending December 31 (millions)
2 011 $ 373
2012 254
2013 89
2014 39
2015 25