intangible assets and goodwill (Tables)

6 Months Ended

Jun. 30, 2024

intangible assets and goodwill

Schedule of Intangible assets and goodwill, net


																			Intangible
																			assets with
				Intangible assets subject to amortization															indefinite lives
				Customer contracts,						Access to																		Total
				related customer						rights-of-way,			Assets									Total						intangible
				relationships and						crowdsource assets			under						Spectrum			intangible						assets and
(millions)		Note		subscriber base			Software			and other			construction			Total			licences			assets			Goodwill ^1,2			goodwill
AT COST
Balance as at January 1, 2024				$	5,360		$	7,915		$	582		$	530		$	14,387		$	12,250		$	26,637		$	10,422		$	37,059
Additions					28			55			40			411			534			918			1,452			—			1,452
Additions arising from business acquisitions		(b)			85			13			3			—			101			—			101			151			252
Assets under construction put into service					—			383			—			(383)			—			—			—			—			—
Dispositions, retirements and other (including capitalized interest)		9			(2)			(243)			3			—			(242)			4			(238)			—			(238)
Net foreign exchange differences					61			1			10			—			72			—			72			64			136
Balance as at June 30, 2024				$	5,532		$	8,124		$	638		$	558		$	14,852		$	13,172		$	28,024		$	10,637		$	38,661
ACCUMULATED AMORTIZATION
Balance as at January 1, 2024				$	1,533		$	5,136		$	247		$	—		$	6,916		$	—		$	6,916		$	364		$	7,280
Amortization					236			477			46			—			759			—			759			—			759
Dispositions, retirements and other					(5)			(248)			(10)			—			(263)			—			(263)			—			(263)
Net foreign exchange differences					11			—			3			—			14			—			14			—			14
Balance as at June 30, 2024				$	1,775		$	5,365		$	286		$	—		$	7,426		$	—		$	7,426		$	364		$	7,790
NET BOOK VALUE
Balance as at December 31, 2023				$	3,827		$	2,779		$	335		$	530		$	7,471		$	12,250		$	19,721		$	10,058		$	29,779
Balance as at June 30, 2024				$	3,757		$	2,759		$	352		$	558		$	7,426		$	13,172		$	20,598		$	10,273		$	30,871

1	Accumulated amortization of goodwill is amortization recorded prior to 2002; there are no accumulated impairment losses in the accumulated amortization of goodwill.

2

As at June 30, 2024, relevant events and circumstances were such that it was considered appropriate to test the carrying value of the TELUS digital experience cash-generating unit (formerly the Digitally-led customer experiences – TELUS International cash-generating unit) goodwill. As at June 30, 2024, the recoverable amount of the TELUS digital experience cash-generating unit was in excess of its carrying amount by approximately $100 million (approximately 2% of its carrying amount). Such recoverable amount was determined based on a fair value less costs of disposal method (such method categorized as a Level 3 fair value measure) and used a discount rate of 9.9%, a perpetual growth rate of 3.0% and cash flow projections through the end of 2029. We validated the results of the recoverable amount through a market-comparable approach and an analytical review of industry facts and facts that are specific to us.

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


		Individually
		immaterial
(millions)		transactions ¹
Assets
Current assets
Cash		$	4
Accounts receivable²			11
Other			1
			16
Non-current assets
Property plant and equipment
Owned assets			1
Right-of-use lease assets			1
Intangible assets subject to amortization ³			101
			103
Total identifiable assets acquired			119
Liabilities
Current liabilities
Accounts payable and accrued liabilities			8
Income and other taxes payable			15
Advance billings and customer deposits			15
Provisions			7
			45
Non-current liabilities
Long-term debt			1
Deferred income taxes			22
			23
Total liabilities assumed			68
Net identifiable assets acquired			51
Goodwill			151
Net assets acquired		$	202
Acquisition effected by way of:
Cash consideration		$	171
Accounts payable and accrued liabilities			5
Provisions			19
Issue of TELUS Corporation Common Shares ⁴			7
		$	202

1

The purchase price allocation, primarily in respect of customer contracts, related customer relationships 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 the acquired businesses. Upon having sufficient time to review the books and records of the acquired businesses, we expect to finalize our purchase price allocations.

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

3	Customer contracts and customer relationships (including those related to customer contracts) are generally expected to be amortized over a period of 10-15 years, and other intangible assets are expected to be amortized over a period of 5-15 years.

4	The fair value of TELUS Corporation Common Shares was measured based upon market prices observed at the date of acquisition of control.