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Annual report - About TELUS

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The Company’s net benefit plan expense is as follows:<br />

Pension Other<br />

Benefit Plans Benefit Plans<br />

(millions) 2000 2000<br />

Current service cost $ 61.8 $ 18.1<br />

Interest cost 262.5 4.9<br />

Expected return on plan assets (339.1) (2.9)<br />

Amortization of past service costs 1.9 –<br />

Amortization of transitional obligation (asset) (20.0) 0.8<br />

18. SEGMENTED INFORMATION<br />

The Company’s <strong>report</strong>able segments, which are used to manage the business, are:<br />

° <strong>TELUS</strong> Communications – local access, long distance, and other voice services;<br />

$ (32.9) $ 20.9<br />

° Advanced Communications – digital services, services on dedicated or specialized facilities, Internet, Ubiquity<br />

network (fibre) and ISM-BC;<br />

° Mobility – cellular and paging services; and<br />

° Other – national operations (including local access, long distance and other voice services provided by the<br />

QuébecTel Group), directory and advertising services.<br />

Segmentation is based on similarities in technology, the technical expertise required to deliver the products and<br />

services, and the distribution channels used.<br />

The accounting policies used for segmented <strong>report</strong>ing are the same as described in the Summary of Significant<br />

Accounting Policies, Note 2.<br />

Advanced<br />

(millions) Communications Mobility Communications Other Eliminations Totals<br />

2000 1999 2000 1999 2000 1999 2000 1999 2000 1999 2000 1999<br />

External revenue $3,753.7 $3,795.0 $1,257.0 $ 960.3 $ 882.0 $ 802.7 $ 540.5 $ 314.3 $ – $ – $6,433.2 $5,872.3<br />

Inter-segment revenue 278.2 279.5 16.1 14.2 195.3 181.1 13.5 9.0 (503.1) (483.8) – –<br />

Total operating revenue 4,031.9 4,074.5 1,273.1 974.5 1,077.3 983.8 554.0 323.3 (503.1) (483.8) 6,433.2 5,872.3<br />

Operations expenses 2,178.5 2,364.6 965.7 594.8 876.8 844.7 450.5 224.3 (503.1) (483.5) 3,968.4 3,544.9<br />

EBITDA $1,853.4 $1,709.9 $ 307.4 $ 379.7 $ 200.5 $ 139.1 $ 103.5 $ 99.0 $ – $ (0.3) $2,464.8 $2,327.4<br />

Capital additions $ 627.3 $ 660.0 $ 222.9 $ 165.2 $ 236.1 $ 146.8 $ 355.0 $227.2 $ – $ – $1,441.3 $1,199.2<br />

19. RELATED PARTY TRANSACTIONS<br />

Transactions with related parties included purchases and sales of telecommunications technology, equipment and supplies,<br />

directory advertising commissions and payments for services rendered under cost-sharing agreements. During the year, the<br />

Company purchased goods and services from related parties amounting to $157.0 million ($139.9 million in 1999). Sales to<br />

related parties amounted to $20.4 million ($7.2 million – 1999). These transactions were conducted in the normal course of<br />

business at prices established and agreed to by both parties.<br />

> 81

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