Telus 2010 Annual Report Download - page 159

TELUS 2010 annual report . 155
FINANCIAL STATEMENTS & NOTES: 17
Pro forma disclosures: The following pro forma supplemental
information represents certain results of operations as if the business
acquisition noted above had been completed as at the beginning
of the fiscal year presented.
Year ended December 31, 2009
(millions except per share amounts) As reported(1) Pro forma(2)
Operating revenues $ß9,606 $ß9,668
Net income $ß1,002 $ 993
Net income per Common Share
and Non-Voting Share
Basic $ß 3.14 $ß 3.12
Diluted $ß 3.14 $ß 3.11
(1) Operating revenues and net income (loss) for the year ended December 31, 2009,
include $44 and $(1), respectively, in respect of the acquisition of Black’s Photo
Corporation.
(2) Pro forma amounts for the year ended December 31, 2009 reflect Black’s Photo
Corporation. Black’s Photo Corporation was acquired on September 3, 2009;
its results have been included in the Company’s Consolidated Statement of Income
and Other Comprehensive Income effective the same date.
The pro forma supplemental information is based on estimates
and assumptions which are believed to be reasonable. The pro forma
supplemental information is not necessarily indicative of the Company’s
consolidated financial results in future periods or the results that
actually would have been realized had the business acquisitions been
completed at the beginning of the periods presented. The pro forma
supplemental information includes incremental intangible asset amor-
tization, financing and other charges as a result of the acquisitions,
net of the related tax effects.
Black’s Photo Corporation: On September 3, 2009 (the acquisition
date), the Company acquired a 100% economic and voting interest in
Black’s Photo Corporation, a national imaging and digital retail company
for $28 million cash ($26 million net of cash acquired). There was no
con tingent consideration in the transaction. This investment was made
with a view to enhancing the Company’s distribution of wireless products
and services across Canada.
The primary factors that contributed to a purchase price that resulted
in the recognition of goodwill are: the existing Black’s Photo Corporation
business; the acquired workforce; and the time-to-market benefits
of acquiring an established multi-location retailer to distribute wireless
products. Black’s Photo Corporation’s results of operations are included
in the Company’s Wireless segment effective September 3, 2009.
The amount assigned to goodwill is not expected to be deductible
for tax purposes.
Purchase price: The purchase price amounts assigned to assets
acquired and liabilities assumed are as set out in the following table:
Black’s Photo
As at September 3, 2009 (millions) Corporation
Assets
Current assets $ß22
Non-current assets
Property, plant and equipment 9
Intangible assets with indefinite life (brand) 7
Other long-term assets 1
Total non-current assets 17
Total identifiable assets acquired 39
Liabilities
Current liabilities (19)
Net identifiable assets acquired 20
Goodwill 8
Net assets acquired $ß28
Acquisition effected by way of:
Cash consideration $ß28
17 SHORT-TERM OBLIGATIONS
Summary review of bilateral bank facilities
The Company’s bilateral bank facilities are as follows:
As at December 31 (millions) 2010 2009
Net available $ß56 $ß53
Drawn 2 6
Outstanding, undrawn letters of credit 3 3
Gross available $ß61 $ß62