intangible assets and goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of intangible assets and goodwill


	Intangible assets subject to amortization										Intangible
	Customer contracts,				Access to						assets with						Total
	related customer				rights- of-		Assets				indefinite lives		Total				intangible
	relationships and				way and		under				Spectrum		intangible				assets and
(millions)	subscriber base		Software		other		construction		Total		licences		assets		Goodwill 1		goodwill
At cost
As at January 1, 2017	$	485	$	4,295	$	93	$	212	$	5,085	$	8,693	$	13,778	$	4,151	$	17,929
Additions		—		74		5		538		617		—		617		—		617
Additions arising from business acquisitions		134		101		—		—		235		—		235		452		687
Dispositions, retirements and other		(61)		(209)		(1)		—		(271)		—		(271)		—		(271)
Assets under construction put into service		—		406		—		(406)		—		—		—		—		—
Net foreign exchange differences		—		—		—		—		—		—		—		(3)		(3)
As at December 31, 2017		558		4,667		97		344		5,666		8,693		14,359		4,600		18,959
Additions		—		69		5		582		656		1		657		—		657
Additions arising from business acquisitions (b)		219		19		—		—		238		—		238		456		694
Dispositions, retirements and other		(138)		(248)		1		—		(385)		—		(385)		—		(385)
Assets under construction put into service		—		585		—		(585)		—		—		—		—		—
Net foreign exchange differences		(1)		—		—		—		(1)		—		(1)		41		40
As at December 31, 2018	$	638	$	5,092	$	103	$	341	$	6,174	$	8,694	$	14,868	$	5,097	$	19,965
Accumulated amortization
As at January 1, 2017	$	323	$	3,032	$	59	$	—	$	3,414	$	—	$	3,414	$	364	$	3,778
Amortization		48		500		4		—		552		—		552		—		552
Dispositions, retirements and other		(61)		(202)		(2)		—		(265)		—		(265)		—		(265)
As at December 31, 2017		310		3,330		61		—		3,701		—		3,701		364		4,065
Amortization		56		538		4		—		598		—		598		—		598
Dispositions, retirements and other		(140)		(247)		—		—		(387)		—		(387)		—		(387)
As at December 31, 2018	$	226	$	3,621	$	65	$	—	$	3,912	$	—	$	3,912	$	364	$	4,276
Net book value
As at December 31, 2017	$	248	$	1,337	$	36	$	344	$	1,965	$	8,693	$	10,658	$	4,236	$	14,894
As at December 31, 2018	$	412	$	1,471	$	38	$	341	$	2,262	$	8,694	$	10,956	$	4,733	$	15,689

Accumulated amortization of goodwill is amortization recorded prior to 2002; there are no accumulated impairment losses in the accumulated amortization of goodwill. The goodwill additions arising from business acquisitions for the year ended December 31, 2017, have been adjusted as set out in (c).

Summary of acquisition-date fair values assigned to the assets acquired and liabilities assumed


	Home and business security-related								TELUS Health-related
			Individually				Xavient		Medisys		Individually				Individually
	AlarmForce		immaterial				Information		Health		immaterial				immaterial
As at acquisition-date fair values (millions)	Industries		transactions		Total		Systems		Group Inc. 1		transactions		Total		transactions		Total
Assets
Current assets
Cash	$	—	$	1	$	1	$	8	$	3	$	—	$	3	$	—	$	12
Accounts receivable 2		—		—		—		33		15		2		17		4		54
Other		1		—		1		3		2		—		2		—		6
		1		1		2		44		20		2		22		4		72
Non-current assets
Property, plant and equipment
Buildings and leasehold improvements		—		—		—		1		12		—		12		—		13
Other		1		—		1		5		3		—		3		4		13
Intangible assets subject to amortization 3
Customer contracts and related customer relationships		13		13		26		100		72		10		82		11		219
Software		—		—		—		—		4		10		14		5		19
Other		—		—		—		4		1		—		1		—		5
		14		13		27		110		92		20		112		20		269
Total identifiable assets acquired		15		14		29		154		112		22		134		24		341
Liabilities
Current liabilities
Short-term borrowings		—		—		—		6		62		—		62		—		68
Accounts payable and accrued liabilities		—		—		—		29		13		—		13		4		46
Advance billings and customer deposits		1		1		2		—		5		1		6		1		9
Provisions		—		—		—		—		2		—		2		—		2
		1		1		2		35		82		1		83		5		125
Non-current liabilities
Provisions		—		—		—		—		1		—		1		—		1
Other long-term liabilities		—		—		—		2		8		—		8		—		10
Deferred income taxes		1		3		4		—		20		—		20		—		24
		1		3		4		2		29		—		29		—		35
Total liabilities assumed		2		4		6		37		111		1		112		5		160
Net identifiable assets acquired		13		10		23		117		1		21		22		19		181
Goodwill		55		47		102		244		83		16		99		11		456
Net assets acquired	$	68	$	57	$	125	$	361	$	84	$	37	$	121	$	30	$	637
Acquisition effected by way of:
Cash consideration	$	68	$	54	$	122	$	125	$	3	$	29	$	32	$	11	$	290
Accounts payable and accrued liabilities		—		3		3		15		2		3		5		—		23
Provisions		—		—		—		202		—		5		5		—		207
Issue of TELUS Corporation Common Shares		—		—		—		—		79		—		79		19		98
Issue of shares by a subsidiary to a non-controlling interest		—		—		—		19		—		—		—		—		19
	$	68	$	57	$	125	$	361	$	84	$	37	$	121	$	30	$	637

The purchase price allocation, primarily in respect of customer contracts, related customer relationships and leasehold interests and deferred income taxes, had not been finalized as of the date of issuance of these consolidated financial statements. As is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of Medisys Health Group Inc.Upon having sufficient time to review the books and records of Medisys Health Group Inc.,we expect to finalize our purchase price allocation.

The fair value of accounts receivable is equal to the gross contractual amounts receivable and reflects the best estimates at the acquisition dates of the contractual cash flows expected to be collected.

Customer contracts and customer relationships (including those related to customer contracts) are expected to be amortized over periods of 6 to 10 years; software is expected to be amortized over a period of 5 years.

Summary of pro forma information of business acquisition operating results


Year ended December 31, 2018 (millions except per share amounts)	As reported 1		Pro forma 2
Operating revenues	$	14,368	$	14,468
Net income	$	1,624	$	1,628
Net income per Common Share
Basic	$	2.68	$	2.68
Diluted	$	2.68	$	2.68

Operating revenues and net income for the year ended December 31, 2018, include: $17 and $NIL, respectively, in respect of AlarmForce Industries; $166 and $2, respectively, in respect of Xavient Information Systems; and $48 and $NIL, respectively, in respect of Medisys Health Group Inc.

Pro forma amounts for the year ended December 31, 2018, reflect the acquired businesses. The results of the acquired businesses have been included in our Consolidated statements of income and other comprehensive income effective the dates of acquisition.

Schedule of carrying values of intangible assets with indefinite lives and goodwill


	Intangible assets with
	indefinite lives				Goodwill				Total
As at December 31 (millions)	2018		2017		2018		2017 1		2018		2017
Wireless	$	8,694	$	8,693	$	2,861	$	2,860	$	11,555	$	11,553
Wireline		—		—		1,872		1,376		1,872		1,376
	$	8,694	$	8,693	$	4,733	$	4,236	$	13,427	$	12,929