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 |