Three months
Nine months
Periods ended September 30 (millions except per share amounts) Note
2015
2014
2015
2014
OPERATING REVENUES
Service
$ 2,934
$ 2,801
$ 8,647
$ 8,252
Equipment
207
199
597
560
Revenues arising from contracts with customers
3,141
3,000
9,244
8,812
Other operating income
6
14
28
41
62
3,155
3,028
9,285
8,874
OPERATING EXPENSES
Goods and services purchased
1,394
1,333
4,050
3,823
Employee benefits expense
7
693
630
1,951
1,836
Depreciation
16
361
363
1,069
1,057
Amortization of intangible assets
17
110
96
322
309
2,558
2,422
7,392
7,025
OPERATING INCOME
597
606
1,893
1,849
Financing costs
8
106
124
333
341
INCOME BEFORE INCOME TAXES
491
482
1,560
1,508
Income taxes
9
126
127
439
395
NET INCOME
365
355
1,121
1,113
OTHER COMPREHENSIVE INCOME
10
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as
cash flow hedges
1
(4)
(1)
(4)
Foreign currency translation adjustment arising from translating
financial statements of foreign operations
12
3
17
4
Change in unrealized fair value of available-for-sale financial assets
1
2
(2)
(2)
14
1
14
(2)
Item never subsequently reclassified to income
Employee defined benefit plan re-measurements
(156)
(14)
(41)
207
(142)
(13)
(27)
205
COMPREHENSIVE INCOME
$ 223
$ 342
$ 1,094
$ 1,318
NET INCOME PER COMMON SHARE
11
Basic
$ 0.61
$ 0.58
$ 1.85
$ 1.80
Diluted
$ 0.61
$ 0.58
$ 1.85
$ 1.80
TOTAL WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic
601
613
605
617
Diluted
603
615
606
619
September 30,
2015
December 31,
2014
As at (millions)
Note
ASSETS
Current assets
Cash and temporary investments, net
$ 141
$ 60
Accounts receivable
25(a)
1,430
1,483
Income and other taxes receivable
17
97
Inventories
25(a)
407
320
Prepaid expenses
331
199
Real estate joint venture advances
18(c)
57
-
Current derivative assets
4(e)
40
27
2,423
2,186
Non-current assets
Property, plant and equipment, net
16
9,592
9,123
Intangible assets, net
17
9,873
7,797
Goodwill, net
17
3,761
3,757
Real estate joint venture advances
18(c)
-
120
Real estate joint ventures
18(c)
25
21
Other long-term assets
25(a)
262
213
23,513
21,031
$ 25,936
$ 23,217
LIABILITIES AND OWNERS' EQUITY
Current liabilities
Short-term borrowings
19
$ 101
$ 100
Accounts payable and accrued liabilities
25(a)
2,100
2,019
Income and other taxes payable
11
2
Dividends payable
12
252
244
Advance billings and customer deposits
25(a)
753
753
Provisions
20
133
126
Current maturities of long-term debt
21
1,512
255
Current derivative liabilities
4(e)
1
-
4,863
3,499
Non-current liabilities
Provisions
20
384
342
Long-term debt
21
10,200
9,055
Other long-term liabilities
25(a)
1,081
931
Deferred income taxes
1,988
1,936
13,653
12,264
Liabilities
18,516
15,763
Owners' equity
Common equity
22
7,420
7,454
$ 25,936
$ 23,217
Three-month periods ended
September 30 (millions)
Wireless
Wireline
Eliminations
Consolidated
2015
2014
2015
2014
2015
2014
2015
2014
Operating revenues
External revenue
$ 1,767
$ 1,684
$ 1,388
$ 1,344
$ -
$ -
$ 3,155
$ 3,028
Intersegment revenue
16
13
44
46
(60)
(59)
-
-
$ 1,783
$ 1,697
$ 1,432
$ 1,390
$ (60)
$ (59)
$ 3,155
$ 3,028
EBITDA1
$ 715
$ 700
$ 353
$ 365
$ -
$ -
$ 1,068
$ 1,065
CAPEX, excluding spectrum
licences2
$ 209
$ 251
$ 414
$ 406
$ -
$ -
$ 623
$ 657
EBITDA less CAPEX, excluding
spectrum licences
$ 506
$ 449
$ (61)
$ (41)
$ -
$ -
$ 445
$ 408
Operating revenues (above)
$ 3,155
$ 3,028
Goods and services purchased
1,394
1,333
Employee benefits expense
693
630
EBITDA (above)
1,068
1,065
Depreciation
361
363
Amortization
110
96
Operating income
597
606
Financing costs
106
124
Income before income taxes
$ 491
$ 482
Three months
Nine months
Periods ended September 30 (millions)
Note
2015
2014
2015
2014
Employee benefits expense - gross
Wages and salaries
$ 653
$ 614
$ 1,873
$ 1,799
Share-based compensation 1
13
35
29
99
86
Pensions - defined benefit
14(a)
27
21
81
65
Pensions - defined contribution
14(b)
24
22
69
64
Restructuring costs 1
15(b)
34
16
68
34
Other
38
36
115
113
811
738
2,305
2,161
Capitalized internal labour costs
Property, plant and equipment
(82)
(73)
(241)
(220)
Intangible assets subject to amortization
(36)
(35)
(113)
(105)
(118)
(108)
(354)
(325)
$ 693
$ 630
$ 1,951
$ 1,836
Three months
Nine months
Periods ended September 30 ($ in millions)
Note
2015
2014
2015
2014
Interest expense
Interest on long-term debt - gross
$ 128
$ 111
$ 368
$ 318
Capitalized long-term debt interest 1
(18)
-
(27)
-
Interest on long-term debt - net
110
111
341
318
Interest on short-term borrowings and other
2
1
5
5
Interest accretion on provisions
20
3
2
9
6
Long-term debt prepayment premium
-
13
-
13
115
127
355
342
Employee defined benefit plans net interest
14(a)
7
1
20
2
Foreign exchange
(16)
(4)
(21)
(2)
106
124
354
342
Interest income
Interest on income tax refunds
-
-
(20)
-
Other
-
-
(1)
(1)
-
-
(21)
(1)
$ 106
$ 124
$ 333
$ 341
Three months
Nine months
Periods ended September 30 (millions)
2015
2014
2015
2014
Current income tax expense (recovery)
For current reporting period
$ 118
$ 90
$ 462
$ 307
Adjustments recognized in the current period for income tax of prior periods
(23)
-
(100)
-
95
90
362
307
Deferred income tax expense (recovery)
Arising from the origination and reversal of temporary differences
12
37
(48)
90
Revaluation of deferred income tax liability to reflect future statutory income tax rates
-
-
48
-
Adjustments recognized in the current period for income tax of prior periods
19
-
77
(2)
31
37
77
88
$ 126
$ 127
$ 439
$ 395
Three months
Nine months
Periods ended September 30 (millions)
2015
2014
2015
2014
Goods and services purchased
$ 17
$ 14
$ 59
$ 15
Employee benefits expense
34
16
68
34
$ 51
$ 30
$ 127
$ 49
Three-month periods ended September 30 (millions)
2015
2014
Employee
related1
Other1
Total1
Employee
related1
Other1
Total1
Restructuring costs
Additions
$ 38
$ 18
$ 56
$ 16
$ 14
$ 30
Reversal
(4)
(1)
(5)
-
-
-
Expense
34
17
51
16
14
30
Use
(17)
(17)
(34)
(9)
(12)
(21)
Expenses greater (less) than disbursements
17
-
17
7
2
9
Restructuring accruals and provisions
Balance, beginning of period
40
64
104
23
26
49
Balance, end of period
$ 57
$ 64
$ 121
$ 30
$ 28
$ 58
Nine-month periods ended September 30 (millions)
2015
2014
Employee
related1
Other1
Total1
Employee
related1
Other1
Total1
Restructuring costs
Additions
$ 72
$ 60
$ 132
$ 34
$ 16
$ 50
Reversal
(4)
(1)
(5)
-
(1)
(1)
Expense
68
59
127
34
15
49
Use
(52)
(23)
(75)
(39)
(20)
(59)
Expenses greater (less) than disbursements
16
36
52
(5)
(5)
(10)
Restructuring accruals and provisions
Balance, beginning of period
41
28
69
35
33
68
Balance, end of period
$ 57
$ 64
$ 121
$ 30
$ 28
$ 58