Telus 2011 Annual Report Download - page 134

130 . TELUS 2011 ANNUAL REPORT
6OTHER OPERATING INCOME
Summary schedule and review of items comprising other operating income
incumbent local exchange carriers as portable subsidy payments to
subsidize the costs of providing residential basic telephone services in
non-forborne high cost serving areas. The portable subsidy payments
are paid based upon a total subsidy requirement calculated on a
per network access line/per band subsidy rate. For the year ended
December 31, 2011, the Company’s portable subsidy receipts were
$32 million (2010 – $37 million).
The CRTC currently determines, at a national level, the total annual
contribution requirement necessary to pay the portable subsidies and
then collects contribution payments from the Canadian telecommu-
nications service providers, calculated as a percentage of their CRTC-
defined telecommunications service revenue. The final contribution
expense rate for 2011 was 0.66% and the interim rate for 2012 has
been similarly set at 0.66%. For the year ended December 31, 2011, the
Company’s contributions to the central fund, which are accounted for
as goods and services purchased, were $40 million (2010 – $46 million).
Government of Québec
Salaries for qualifying employment positions in the province of Quebec,
mainly in the information technology sector, are eligible for tax credits.
In respect of such tax credits, for the year ended December 31, 2011,
the Company recorded $14 million (2010 – $11 million).
Years ended December 31 (millions) 2 0 11 2010
Government assistance, including deferral
account amortization (Note 1(e)) $ß54 $ß48
Investment income (loss) (2) (2)
Gain on disposal of assets 3 4
Gain on 51% Transactel (Barbados) Inc. interest
re-measured at acquisition-date fair value
and subsequent adjustment to contingent
consideration (Notes 16(e), 19(a)) 17 –
$ß72 $ß50
The Company receives government assistance, as defined by
IFRS-IASB, from a number of sources and includes such receipts
in Other operating income.
CRTC portable subsidy
Local exchange carriers’ costs of providing the level of residential basic
telephone services that the CRTC requires to be provided in high cost
serving areas are more than the CRTC allows the local exchange carriers
to charge for the level of service. To ameliorate the situation, the CRTC
directs the collection of contribution payments, in a central fund, from
all registered Canadian telecommunications service providers (including
voice, data and wireless service providers) that are then disbursed to
7EMPLOYEE BENEFITS EXPENSE
Summary schedule of employee benefits expense
Years ended December 31 (millions) 2 0 11 2010
(adjusted –
Note 25(c))
Employee benefits expense – gross
Wages and salaries $ß2,049 $ß1,964
Share-based compensation (Note 13) 51 57
Pensions – defined benefit (Note 14(b)) (34) (13)
Pensions – defined contribution (Note 14(g)) 66 61
Other defined benefits (Note 14(c)) 2 4
Restructuring costs (Note 19(b)) 13 64
Other 124 132
2,271 2,269
Capitalized internal labour costs
Property, plant and equipment (284) (271)
Intangible assets subject to amortization (94) (92)
(378) (363)
$ß1,893 $ß1,906