Telus 2011 Annual Report Download - page 70

66 . TELUS 2011 ANNUAL REPORT
Financial position at December 31 Changes Changes
($ millions) 2 0 11 2010 ($ millions) (%) Explanation of changes
Current assets
Cash and temporary investments, net 46 17 29 171 See Section 7: Liquidity and capital resources
Accounts receivable 1,428 1,318 110 8 Includes an increase in wireless receivables due to
growth in postpaid ARPU and subscribers, an increase
in accrued vendor rebates earned and amounts from
the consolidation of Transactel beginning February 2011
Income and other taxes receivable 66 62 4 6 Primarily reflects instalments for 2011, net of current
income tax expense including adjustments for
reassessments for prior years
Inventories 353 283 70 25
Primarily an increase in average cost and volume of wireless
handsets due to a greater proportion of smartphones
Prepaid expenses 144 113 31 27 Mainly an increase in prepaid maintenance contracts
and deposits related to building an Internet data centre
Derivative assets 14 4 10 n/m Primarily fair value adjustments to hedges for restricted
share units and wireless handsets
Current liabilities
Short-term borrowings 404 400 4 1 Comprised of $400 million received by TELUS from the
arm’s-length securitization trust in respect of securitized
trade receivables (see Section 7.6), as well as a draw
on bank facilities at December 31, 2011
Accounts payable and accrued liabilities 1,419 1,477 (58) (4) Primarily a decrease in trade payables resulting from
lower fourth quarter capital expenditures in 2011 when
compared to the fourth quarter of 2010
Income and other taxes payable 25 6 19 n/m Primarily reflects a difference in instalments and income
tax expense in 2011
Dividends payable 188 169 19 11 The dividend payable at December 31, 2011 (paid
January 3, 2012) reflects an increase in the dividend
rate and a small increase in shares outstanding, as
compared to the dividend payable at December 31, 2010
(paid January 4, 2011)
Advance billings and customer deposits 655 658 (3) – Reflects payment of $53 million of rebates in respect
of the price cap deferral account (see Section 7.1) and
recognition in revenues of deferral account amounts for
approved broadband build and disability access initiatives,
net of an increase in advance billings from wireless sub-
scriber growth, and a reclassification of $23 million from
non-current Provisions
Provisions 88 122 (34) (28) Includes a $48 million net reduction in restructuring
provisions as payments for past initiatives exceeded
new obligations
Current maturities of long-term debt 1,066 847 219 26 Includes the $300 million Series CC 4.5% Notes
becoming current (maturing March 2012) and a
$662 million increase in commercial paper, net of
repayment of matured U.S. dollar Notes on June 1
(December 31, 2010 balance of $736 million)
Derivative liabilities – 419 (419) (100) Includes settlement of derivative liabilities associated with
the June 2011 maturity of U.S. dollar Notes (December 31
balance of $404 million), fair value adjustments for share
options and unwinding option hedges
6CHANGES IN FINANCIAL POSITION
A discussion of changes in the Consolidated statements of financial position
for the year ended December 31, 2011