Telus 2010 Annual Report Download - page 59

TELUS 2010 annual report . 55
MANAGEMENT’S DISCUSSION & ANALYSIS: 5
Deloitte & Touche LLP, the Company’s auditor, has audited
internal controls over financial reporting of TELUS Corporation as
at December 31, 2010.
Changes in internal control over financial reporting
There were no changes in internal control over financial reporting that
have materially affected, or are reasonably likely to materially affect,
the Company’s internal control over financial reporting.
Framework, issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). Based on this assessment,
TELUS’ CEO and CFO have determined that the Company’s internal
control over financial reporting is effective as at December 31, 2010,
and expect to certify TELUS’ annual filings with the U.S. Securities
and Exchange Commission on Form 40-F, as required by the
United States Sarbanes-Oxley Act, and with Canadian securities
regulatory authorities.
As at December 31
($ millions) 2010 2009 2008
Total assets 19,599 19,219 19,021
Current portion of long-term debt 743 82 4
Current portion of derivative liabilities 419 62 75
Non-current financial liabilities
Long-term debt 5,313 6,090 6,348
Derivative and other non-current
financial liabilities 397 1,108 1,103
5,710 7,198 7,451
Future income taxes 1,498 1,319 1,213
Owners’ equity
Common equity 8,179 7,554 7,085
Non-controlling interests 22 21 23
Differences among the three
2010 REVENUE MIX –
74% WIRELESS AND DATA
wireless voice
wireless data
wireline voice
wireline data
40%
11%
26%
23%
years presented:
.Revenues increased by 1.8% in
2010 after decreasing by 0.5%
in 2009 and growing by 6% in
2008. Wireless revenue and
wireline data revenue combined
represent approximately 74% of
consolidated revenues in 2010,
as compared to 71% in 2009
and 69% in 2008. Legacy wire-
line voice revenues continue to
be eroded by competition and
technological substitution.
.Net income includes income tax-related adjustments resulting from
legislated income tax changes, settlements and tax reassessments
for prior years, including any related interest. These adjustments
positively affected Net income by approximately $30 million (nine cents
per share) in 2010, $165 million (52 cents per share) in 2009 and
$41 million (13 cents per share) in 2008.
.The decrease in Non-current financial liabilities at December 31, 2010,
is principally due to the remaining U.S. dollar Notes maturing June 1,
2011, and associated derivative liability becoming current liabilities,
as well as debt reduction during 2010. (See Section 6.)
The discussion in this section is qualified in its entirety by the Caution
regarding forward-looking statements at the beginning of the MD&A.
5.1 Selected annual information
The selected three-year consolidated financial information presented
as currently reported according to Canadian GAAP has been derived
from, and should be read in conjunction with, the Consolidated financial
statements of TELUS for the year ended December 31, 2010, and its
annual Consolidated financial statements for previous years. For infor-
mation on the Company’s changeover to IFRS on January 1, 2011,
and the transition effects on 2010, see Section 8.2.
Selected annual information
Years ended December 31
($ in millions, except per share amounts) 2010 2009 2008
Operating revenues 9,779 9,606 9,653
Net income 1,038 1,002 1,131
Income per Common Share
and Non-Voting Share
– basic 3.23 3.14 3.52
– diluted 3.22 3.14 3.51
Cash dividends declared
per Common Share
and Non-Voting Share 2.00 1.90 1.825
5DISCUSSION OF OPERATIONS
A detailed discussion of operating performance for 2010