Telus 2010 Annual Report Download - page 68

64 . TELUS 2010 annual report
Changes in the Consolidated statements of financial position for the year ended December 31, 2010, are as follows:
6CHANGES IN FINANCIAL POSITION
A discussion of changes in the Consolidated statements of financial position
for the year ended December 31, 2010
Financial position as at December 31 Change Change
($ millions) 2010 2009 ($ millions) (%) Explanation of the change
Current assets
Cash and temporary investments, net 17 41 (24) (59) See Section 7: Liquidity and capital resources
Accounts receivable 917 694 223 32 The increase includes a $100 million reduction in proceeds
from securitized accounts receivable (see Section 7.6), as
well as increased receivables due to the growing wireless
postpaid subscriber base and increase in postpaid ARPU
Income and other taxes receivable 56 16 40 n/m Reflects an increase in accrued recoveries for income
and other taxes receivable, net of refunds received
Inventories 283 270 13 5 Mainly an increase in wireless dealer inventories
Prepaid expenses 113 105 8 8 Mainly an increase in prepaid maintenance contracts net
of amortization
Derivative assets 4 1 3 n/m –
Current liabilities
Accounts payable and accrued liabilities 1,495 1,385 110 8 Reflects an increase in fourth quarter capital and operating
expenditures payable, and increased semi-annual interest
payable
Income and other taxes payable 6 182 (176) (97) Primarily reflects final income tax payments in the first
quarter of 2010 for the 2009 tax year and 2010 instalments
substantially paid during the year
Restructuring accounts payable 111 135 (24) (18) Payments exceeded new obligations from
and accrued liabilities restructuring initiatives
Dividends payable 169 150 19 13 Primarily reflects the 10.5% increase in the dividend rate
for the fourth quarter 2010 dividend, as compared to the
fourth quarter of 2009
Advance billings and customer deposits 658 674 (16) (2) Includes reclassification of $81 million of the price cap
deferral account to Non-current liabilities, net of increased
billings due to subscriber growth
Current maturities of long-term debt 743 82 661 n/m The balance at December 31, 2010, includes $736 million
for 8% U.S. dollar Notes maturing in June 2011 after partial
redemption of the Notes outstanding on September 2.
Two smaller issues totalling $80 million that were current
at December 31, 2009, matured and were repaid in 2010.
See Section 7.3. The residual amounts are capital leases
Derivative liabilities 419 62 357 n/m The December 31, 2010, balance and net change from
December 31, 2009, includes $404 million for derivative
liabilities associated with the June 2011 maturity of U.S.
dollar Notes after fair value adjustments and termination
of the portion associated with the partial redemption of
Notes on September 2. This was partly offset by fair value
adjustments for share option and restricted share unit
hedges, and unwinding option hedges
Current portion of future income taxes 348 294 54 18 Primarily due to changes in the accounting classification
of related liabilities between current and long-term,
reduction in reserves for income tax purposes and
changes in partnership income that will be allocated
over the next 12 months