Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2020 | Feb. 23, 2021 | |
Document and Entity Information | ||
Document Type | 20-F | |
Document Period End Date | Dec. 31, 2020 | |
Entity Registrant Name | TELUS International (Cda) Inc. | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Shell Company Report | false | |
Document Transition Report | false | |
ICFR Auditor Attestation Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 51,932,214 | |
Entity Central Index Key | 0001825155 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Shell Company | false |
Consolidated Statements of Inco
Consolidated Statements of Income and Other Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Income and Other Comprehensive Income | |||
Revenue arising from contracts with customers | $ 1,581.6 | $ 1,019.6 | $ 834.6 |
OPERATING EXPENSES | |||
Goods and services purchased | 299 | 182.9 | 174.9 |
Employee benefits expense | 979.5 | 630.4 | 522.5 |
Depreciation | 99.4 | 73.1 | 31.3 |
Amortization of intangible assets | 82.8 | 19.1 | 18.2 |
Total | 1,460.7 | 905.5 | 746.9 |
OPERATING INCOME | 120.9 | 114.1 | 87.7 |
OTHER (INCOME) EXPENSES | |||
Changes in business combination-related provisions | (73.5) | (14.6) | (12.6) |
Interest expense | 45.4 | 36.3 | 23.2 |
Foreign exchange (gain) loss | (1.5) | (2.6) | 8.1 |
INCOME BEFORE INCOME TAXES | 150.5 | 95 | 69 |
Income taxes | 47.6 | 26 | 21.9 |
NET INCOME | 102.9 | 69 | 47.1 |
Items that may subsequently be reclassified to income | |||
Change in unrealized fair value of derivatives designated as cash flow hedges | (49.9) | 0.1 | (0.7) |
Exchange differences arising from translation of foreign operations | 124.1 | (3.3) | (9.9) |
Total items that may subsequently be reclassified to income | 74.2 | (3.2) | (10.6) |
Item that will not be subsequently reclassified to income | |||
Employee defined benefit plan re-measurements | (0.2) | (2.7) | 0.5 |
Total items never subsequently reclassified to income | 74 | (5.9) | (10.1) |
COMPREHENSIVE INCOME | $ 176.9 | $ 63.1 | $ 37 |
EARNINGS PER SHARE | |||
Basic | $ 0.46 | $ 0.36 | $ 0.25 |
Diluted | $ 0.46 | $ 0.36 | $ 0.25 |
TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||
Basic | 224,156,034 | 189,681,394 | 188,693,316 |
Diluted | 225,522,972 | 190,310,498 | 189,095,213 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 152.5 | $ 79.5 |
Accounts receivable | 303.3 | 176.6 |
Due from affiliated companies | 49.1 | 30.2 |
Income and other taxes receivable | 17.8 | 10.9 |
Prepaid expenses | 23.7 | 27.9 |
Current derivative assets | 1.8 | 3.3 |
Total | 548.2 | 328.4 |
Non-current assets | ||
Property, plant and equipment, net | 362.1 | 301 |
Intangible assets, net | 1,294.3 | 89.7 |
Goodwill | 1,500 | 418.4 |
Deferred income taxes | 6.5 | 4.7 |
Other long-term assets | 33.7 | 26.8 |
Total | 3,196.6 | 840.6 |
Total assets | 3,744.8 | 1,169 |
Current liabilities | ||
Accounts payable and accrued liabilities | 254.7 | 152.2 |
Due to affiliated companies | 31 | 26 |
Income and other taxes payable | 101 | 40.6 |
Advance billings and customer deposits | 7.6 | 4 |
Provisions | 17.4 | 10.3 |
Current maturities of long-term debt | 92.3 | 42.8 |
Current portion of derivative liabilities | 1.1 | |
Total | 505.1 | 275.9 |
Non-current liabilities | ||
Provisions | 19.7 | 160.5 |
Long-term debt | 1,673.4 | 477.7 |
Derivative liabilities | 57.2 | 3.2 |
Deferred income taxes | 366.2 | 1.7 |
Other long-term liabilities | 12.3 | 4.2 |
Total | 2,128.8 | 647.3 |
Total liabilities | 2,633.9 | 923.2 |
Owners' equity | 1,110.9 | 245.8 |
Total liabilities and owners' equity | 3,744.8 | 1,169 |
Contingent Liabilities |
Consolidated Statements of Chan
Consolidated Statements of Changes in Owners' Equity - USD ($) $ in Millions | Common sharesClass A common shares | Common sharesClass B common shares | Common sharesClass C common shares | Common sharesClass D common shares | Common sharesClass E common shares | Common shares | Retained earnings | Accumulated other comprehensive income | Class A common shares | Class B common shares | Class C common shares | Class D common shares | Class E common shares | Total |
Balance (in shares) at Dec. 31, 2017 | 180,000,000 | |||||||||||||
Balance at Dec. 31, 2017 | $ 223.9 | $ (155.4) | $ 31.3 | $ 99.8 | ||||||||||
Balance adjusted (in shares) | 189,681,394 | |||||||||||||
Net income | 47.1 | 47.1 | ||||||||||||
Other comprehensive income (loss) | (10.1) | (10.1) | ||||||||||||
Common Shares issued | $ 25.7 | $ 13.9 | $ 20 | $ 25.7 | $ 13.9 | $ 20 | ||||||||
Common Shares issued (in shares) | 4,180,995 | 2,251,305 | 3,249,094 | |||||||||||
Share option awards | $ 0.3 | 0.3 | ||||||||||||
Balance (in shares) (As previously reported) at Dec. 31, 2018 | 189,681,394 | |||||||||||||
Balance (in shares) at Dec. 31, 2018 | 189,681,394 | |||||||||||||
Balance (As previously reported) at Dec. 31, 2018 | $ 283.8 | (108.3) | 21.2 | 196.7 | ||||||||||
Balance (IFRS 16 effects) at Dec. 31, 2018 | (14.7) | 0.1 | (14.6) | |||||||||||
Balance at Dec. 31, 2018 | 283.8 | (108.3) | 21.2 | 196.7 | ||||||||||
Balance as adjusted | 283.8 | (123) | 21.3 | 182.1 | ||||||||||
Net income | 69 | 69 | ||||||||||||
Other comprehensive income (loss) | (5.9) | (5.9) | ||||||||||||
Share option awards | $ 0.6 | 0.6 | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 189,681,394 | |||||||||||||
Balance at Dec. 31, 2019 | $ 284.4 | (54) | 15.4 | 245.8 | ||||||||||
Net income | 102.9 | 102.9 | ||||||||||||
Other comprehensive income (loss) | 74 | 74 | ||||||||||||
Excess of fair value of consideration paid over the carrying value of business acquired | (16.4) | (16.4) | ||||||||||||
Common Shares issued | $ 348.8 | $ 214.8 | $ 50.7 | $ 90 | $ 348.8 | $ 214.8 | $ 50.7 | $ 90 | ||||||
Common Shares issued (in shares) | 27,659,481 | 16,892,881 | 3,760,469 | 6,520,517 | ||||||||||
Share option awards | $ 0.3 | 0.3 | ||||||||||||
Balance (in shares) at Dec. 31, 2020 | 244,514,742 | |||||||||||||
Balance at Dec. 31, 2020 | $ 989 | $ 32.5 | $ 89.4 | $ 1,110.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | |||
Net income | $ 102.9 | $ 69 | $ 47.1 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 182.2 | 92.2 | 49.5 |
Interest expense | 45.4 | 36.3 | 23.2 |
Income taxes | 47.6 | 26 | 21.9 |
Share-based compensation expense, net of payments made | 15 | 1.8 | 4.1 |
Changes in business combination-related provisions | (73.3) | (13.5) | (12.6) |
Change in market value of derivatives and other adjustments | 31.6 | 0.7 | 4.3 |
Cash provided by operating activities before net change in non-cash working capital, interest paid, and income taxes paid | 351.4 | 212.5 | 137.5 |
Net change in non-cash operating working capital | 1.1 | (28.2) | (13.9) |
Interest paid | (32.7) | (14.7) | (15.3) |
Income taxes paid, net | (56.8) | (28) | (14.8) |
Cash provided by operating activities | 263 | 141.6 | 93.5 |
INVESTING ACTIVITIES | |||
Cash payments for capital assets | (59.2) | (52.7) | (47.5) |
Cash payments for acquisitions, net | (1,741.9) | (115.4) | |
Payment to acquire non-controlling interest in subsidiary | (70) | (50.8) | |
Cash used by investing activities | (1,871.1) | (103.5) | (162.9) |
FINANCING ACTIVITIES | |||
Shares issued, net of financing costs | 655.6 | 18.9 | |
Repayment of short-term borrowings, net | (4.6) | ||
Repayment of long-term debt | (819) | (96) | (38.6) |
Long-term debt issued | 1,854 | 72 | 75 |
Cash provided (used) by financing activities | 1,690.6 | (24) | 50.7 |
Effect of exchange rate changes on cash and cash equivalents | (9.5) | (0.2) | (1.1) |
CASH POSITION | |||
Increase (decrease) in cash and cash equivalents | 73 | 13.9 | (19.8) |
Cash and cash equivalents, beginning of year | 79.5 | 65.6 | 85.4 |
Cash and cash equivalents, end of year | $ 152.5 | $ 79.5 | $ 65.6 |
Notes to Consolidated Financial
Notes to Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Consolidated Financial Statements | |
Notes to Consolidated Financial Statements | TELUS International (Cda) Inc. is a global provider of customer experience and digital business services. TELUS International (Cda) Inc. was incorporated under the Business Corporations Act (British Columbia) on January 2, 2016, and is a subsidiary of TELUS Corporation. TELUS International (Cda) Inc. maintains its registered office at 510 West Georgia Street, Vancouver, British Columbia. The terms we , us , our or ourselves are used to refer to TELUS International (Cda) Inc. and, where the context of the narrative permits or requires, its subsidiaries. Additionally, the term TELUS Corporation is a reference to TELUS Corporation, and where the context of the narrative permits or requires, its subsidiaries, excluding TELUS International (Cda) Inc. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significant accounting policies (a) Basis of presentation Our consolidated financial statements are expressed in United States dollars. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS-IASB”). Generally accepted accounting principles require that we disclose the accounting policies we have selected in those instances where we have been obligated to choose from among various generally accepted accounting principle-compliant accounting policies. In certain other instances, including where no selection among policies is allowed, we are also required to disclose how we have applied certain accounting policies. In our assessment, all of our required accounting policy disclosures are not equally significant for us, as set out in the accompanying table; their relative significance to us will evolve over time as we do. In addition, in connection with TELUS International (Cda) Inc.'s initial public offering on February 3, 2021 and related 4.5-for-one share subdivision, we have retrospectively adjusted all per share and number of share amounts presented in these consolidated financial statements (see Note 17 ). Accounting policy requiring a more Accounting policy Yes No General application (a) Basis of presentation X (b) Consolidation X (c) Use of estimates and judgments X (d) Financial instruments–recognition and measurement X (e) Hedge accounting X Results of operations focused (f) Revenue recognition X (g) Depreciation, amortization and impairment X (h) Translation of foreign currencies X (i) Income and other taxes X (j) Share-based compensation X (k) Employee future benefit plans X Financial position focused (l) Cash and cash equivalents X (m) Property, plant and equipment; intangible assets X (n) Leases X These consolidated financial statements were authorized by our Board of Directors for issue on February 22, 2021. (b) Consolidation Our consolidated financial statements include our accounts and the accounts of all of our subsidiaries. The principal ones are: TELUS International (U.S.) Corp.; CallPoint New Europe EAD; CallPoint New Europe S.R.L.; Transactel International Services Limited; Transactel S.A.; Transactel El Salvador S.A. DE C.V.; TELUS International Philippines Inc.; Voxpro Limited; Xavient Digital LLC; TELUS International Germany GmbH; and LBT Intermediate Holdings, Inc. Our financing arrangements and those of our subsidiaries do not impose restrictions on inter-corporate dividends, but external dividends are restricted based upon total net debt to earnings before interest, income taxes, depreciation and amortization (“EBITDA”) ratios, all as defined by our financing arrangements. On a continuing basis, we review our corporate organization and effect changes as appropriate so as to enhance the value of TELUS International (Cda) Inc. This process can, and does, affect which of our subsidiaries are considered principal subsidiaries at any particular point in time. (c) Use of estimates and judgments The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates (including about the future effects of the COVID-19 pandemic), assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates Examples of the significant estimates and assumptions that we make and their relative significance and degree of difficulty are as follows: Judgments Examples of our significant judgments, apart from those involving estimation, include the following: · Assessments about whether line items are sufficiently material to warrant separate presentation in the primary financial statements and, if not, whether they are sufficiently material to warrant separate presentation in the financial statement notes. In the normal course, we make changes to our assessments regarding presentation materiality so that they reflect current economic conditions. Due consideration is given to the view that it is reasonable to expect differing opinions of what is, and is not, material. · In respect of revenue-generating transactions, generally we must make judgments that affect the timing of the recognition of revenue as it relates to assessing when we have satisfied our performance obligations to our customers, either at a point in time or over a period of time. · The preparation of our financial statements in accordance with generally accepted accounting principles requires management to make judgments that affect the financial statement disclosure of information regularly reviewed by our chief operating decision maker used to make resource allocation decisions and to assess performance, as further discussed in Note 21 . A significant judgment we make is that our cash flows are sufficiently indistinguishable given our global operating model, resulting in a single operating and reporting segment. · Determination of the functional currency of each subsidiary involves significant judgment. The determination of functional currency affects the carrying value of non-current assets included in the statement of financial position and, as a consequence, the amortization of those assets, as well as the exchange gains and losses recorded in the consolidated statement of comprehensive income and the consolidated statement of equity. · The decision to depreciate and amortize any property, plant, equipment and intangible assets that are subject to amortization on a straight-line basis, as we believe that this method reflects the consumption of resources related to the economic lifespan of those assets better than an accelerated method and is more representative of the economic substance of the underlying use of those assets. · In connection with the annual impairment testing of goodwill, there are instances where we must exercise judgment in the determination of our cash generating unit. A significant judgment that we make is that each geographic area in which we operate is insufficiently distinct, making it impractical to objectively distinguish the cash flows of each region. As such, each region is not an individual cash generating unit. · In respect of claims and lawsuits, as discussed further in Note 18(b) , the determination of whether an item is a contingent liability or whether an outflow of resources is probable and thus needs to be accounted for as a provision. (d) Financial instruments—recognition and measurement In respect of the recognition and measurement of financial instruments, we have adopted the following policies: · Derivatives that are part of an established and documented cash flow hedging relationship are accounted for as held for hedging. We believe that classification as held for hedging results in a better matching of the change in the fair value of the derivative financial instrument with the risk exposure being hedged. · Derivatives that are not part of a documented cash flow hedging relationship are accounted for as held for trading and thus are measured at fair value through net income. · Transaction costs, other than in respect of items held for trading, are added to the initial fair value of the acquired financial asset or financial liability. We have selected this method as we believe that it results in a better matching of the transaction costs with the periods in which we benefit from the transaction costs. (e) Hedge accounting Hedge accounting The purpose of hedge accounting, in respect of our designated hedging relationships, is to ensure that counterbalancing gains and losses are recognized in the same periods. We have chosen to apply hedge accounting as we believe that it is more representative of the economic substance of the underlying transactions. In order to apply hedge accounting, a high correlation (which indicates effectiveness) is required in the offsetting changes in the risk-associated values of the financial instruments (the hedging items) used to establish the designated hedging relationships and all, or a part, of the asset, liability or transaction having an identified risk exposure that we have taken steps to modify (the hedged items). We assess the anticipated effectiveness of designated hedging relationships at inception and their actual effectiveness for each reporting period thereafter. We consider a designated hedging relationship to be effective if the following critical terms match between the hedging item and the hedged item: the notional amount of the hedging item and the principal amount of the hedged item; maturity dates; payment dates; and interest rate index (if, and as, applicable). Any ineffectiveness, such as would result from a difference between the notional amount of the hedging item and the principal amount of the hedged item, or from a previously effective designated hedging relationship becoming ineffective, is reflected in the consolidated statements of income and other comprehensive income as Interest expense if in respect of long-term debt, as Goods and services purchased if in respect of future purchase commitments, or as Employee benefits expense if in respect of share-based compensation. Hedging assets and liabilities In the application of hedge accounting, an amount (the hedge value) is recorded in the consolidated statement of financial position in respect of the fair value of the hedging items. The net difference, if any, between the amounts recognized in the determination of net income and the amounts necessary to reflect the fair value of the designated cash flow hedging items recorded in the consolidated statement of financial position is recognized as a component of Other comprehensive income, as set out in Note 8 . In the application of hedge accounting to the finance costs arising from interest paid on our long-term debt, the amount recognized in the determination of net income is the amount that counterbalances the difference between interest calculated at a variable interest rate, and the fixed interest rate as per our credit facility ( Note 16(b) ). (f) Revenue recognition General Our solutions involve delivery of multiple services and products that occur at different points in time and/or over different periods of time. As appropriate, these arrangements contain multiple performance obligations and the transaction price is measured and allocated among the performance obligations based upon their relative stand-alone selling price. Our relevant revenue recognition policies are then applied to the performance obligations. Multiple contracts with a single customer are normally accounted for as separate arrangements. In instances where multiple contracts are entered into with a customer in a short period of time, the contracts are reviewed as a group to ensure that, as with multiple performance obligation arrangements, their relative stand-alone selling prices are appropriate. Our revenues are recorded net of any value-added and/or sales taxes billed to the customer concurrent with a revenue-generating transaction. When we receive no identifiable, separable benefit for consideration given to a customer ( e.g. discounts and rebates), the consideration is recorded as a reduction of revenue rather than as an expense. We recognize revenues for each accounting period based on services provided in that period. Revenue is recognized based on fees incurred per-productive hour or per transaction. Billings are invoiced to customers on a regular basis. Advance billings are recorded when billing occurs prior to provision of the associated services; such advance billings are recognized as revenue in the period in which the services are provided. (g) Depreciation, Amortization and Impairment Depreciation and amortization Property, plant, and equipment, including right of use assets, are depreciated on a straight-line basis over their estimated useful lives as determined by a continuing program of asset life studies. Depreciation includes amortization of right-of-use lease assets and amortization of leasehold improvements. Leasehold improvements are normally amortized over the lesser of their expected average service life or the term of the lease. Intangible assets with finite lives (intangible assets subject to amortization) are amortized on a straight-line basis over their estimated useful lives, which are reviewed at least annually and adjusted as appropriate. As referred to in (c) , the use of a straight-line basis of depreciation and amortization is a significant judgment for us. Estimated useful lives for the majority of our property, plant and equipment and right of use lease assets subject to depreciation are as follows: Estimated useful lives Computer hardware and network assets 2 to 10 years Buildings and leasehold improvements 5 to 20 years Furniture and equipment 3 to 7 years Right-of-use lease assets 3 to 20 years Estimated useful lives for the majority of our intangible assets subject to amortization are as follows: Estimated useful lives Customer contracts and related customer relationships 4 to 15 years Software 3 to 7 years Brand 3 years Standard operating procedures 5 years Crowdsource assets 8 years Impairment—general Impairment testing compares the carrying values of the assets or cash generating units being tested with their recoverable amounts (the recoverable amount being the greater of an asset’s value in use or its fair value less costs to sell); as referred to in (c) , this is a significant estimate for us. Impairment losses are immediately recognized, to the extent that the carrying value of an asset exceeds its recoverable amount. Should the recoverable amounts for impaired assets subsequently increase, the impairment losses previously recognized (other than in respect of goodwill) may be reversed to the extent that the reversal is not a result of “unwinding the discount” and that the resulting carrying values do not exceed the carrying values that would have been the result if no impairment losses had been previously recognized. Impairment—property, plant and equipment; intangible assets subject to amortization The continuing program of asset life studies considers such items as the timing of technological obsolescence, competitive pressures and future infrastructure utilization plans; these considerations could also indicate that the carrying value of an asset may not be recoverable. If the carrying value of an asset were not considered recoverable, an impairment loss would be recorded. Impairment—goodwill The carrying value of goodwill is periodically tested for impairment. The frequency of the impairment testing is generally the reciprocal of the stability of the relevant events and circumstances, but goodwill must, at a minimum, be tested annually; we have selected October 1 as our annual test date. We assess our goodwill by comparing the recoverable amounts of our business to its carrying value. To the extent that the carrying value exceeds its recoverable amount, the excess amount would be recorded as a reduction in the carrying value of goodwill and any remainder would be recorded as a reduction in the carrying value of the assets on a pro-rated basis. (h) Translation of foreign currencies Trade transactions completed in foreign currencies are translated into United States dollars at the rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at the rate of exchange in effect at the statement of financial position date, with any resulting gain or loss recorded in the consolidated statement of income and other comprehensive income as a component of Interest expense and foreign exchange, as set out in Note 6 . We have foreign subsidiaries that do not have the United States dollar as their functional currency. Foreign exchange gains and losses arising from the translation of these foreign subsidiaries’ accounts into United States dollars are reported as a component of other comprehensive income, as set out in Note 8 . (i) Income and other taxes We follow the liability method of accounting for income taxes; as referred to in (c) , this is a significant estimate for us. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized for temporary differences between the tax and accounting bases of assets and liabilities, and also for the benefit of losses available to be carried forward to future years for tax purposes that are more likely than not to be realized. The amounts recognized in respect of deferred income tax assets and liabilities are based upon the expected timing of the reversal of temporary differences or usage of tax losses and application of the substantively enacted tax rates at the time of reversal or usage. We account for any changes in substantively enacted income tax rates affecting deferred income tax assets and liabilities in full in the period in which the changes are substantively enacted. We account for changes in the estimates of tax balances for prior years as estimate revisions in the period in which the changes in estimates arise; we have selected this approach as its emphasis on the statement of financial position is more consistent with the liability method of accounting for income taxes. Our operations are complex and the related domestic and foreign tax interpretations, regulations, legislation and jurisprudence are continually changing. As a result, there are usually some tax matters in question that result in uncertain tax positions. We recognize the income tax benefit of an uncertain tax position when it is more likely than not that the ultimate determination of the tax treatment of the position will result in that benefit being realized; however, this does not mean that tax authorities cannot challenge these positions. We accrue an amount for interest charges on current tax liabilities that have not been funded, which would include interest and penalties arising from uncertain tax positions. We include such charges in the consolidated statement of income and other comprehensive income as a component of income tax expense. (j) Share-based compensation General Share-based compensation awards, in the form of phantom restricted share units, equity share options and phantom share options, have historically been provided to certain of our employees. We recognize a compensation expense in respect of these plans that is based on the fair value of the awards. Generally, the compensation expense of the award is recognized on a straight-line basis over the vesting of the award subject to continued service with us through the vesting date. A compensation expense is recognized for awards containing performance conditions only to the extent that it is probable that those performance conditions will be met. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to failure to satisfy service conditions or performance conditions. Subsequent to the Share Class Reclassification Transactions (see Note 17 ), we have two classes of shares outstanding: multiple voting shares and subordinate voting shares (collectively “Shares”). Common shares issued for equity-settled awards are subordinate voting shares. Restricted share units Restricted share units are accounted for as liability instruments. We accrue a liability equal to the product of the number of vesting restricted share units multiplied by the fair market value of the corresponding common shares at the end of the reporting period. As the Company’s common shares were not publicly traded as at December 31, 2020, we estimated the fair value of our common shares, as discussed in “Share Valuations” below. The expense for restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect. Share option awards We recognize and measure compensation expense for equity-settled share option awards based on the grant date fair value, which is determined using the Black-Scholes option pricing model. Fair value is not subsequently re-measured unless the conditions on which the award was granted are modified. Proceeds arising from the exercise of equity-settled share option awards are credited to share capital, as are the recognized grant-date fair values of the exercised share option awards. Phantom share option awards, which are cash-settled, are accounted for as liability instruments. We recognize and measure compensation expense for cash-settled option awards based on the fair value at the end of each reporting period, which is determined using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of assumptions, some of which are highly subjective, including the fair value of the underlying common shares, the expected volatility of the price of our common shares, risk-free interest rates, the expected term of the option and the expected dividend yield of our shares. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our share-based compensation expense could be materially different in the future. · Fair Value of Our Shares. As the Company’s common shares were not publicly traded prior to our initial public offering (“IPO”) on February 3, 2021, we estimated the fair value of our common shares, as discussed in “Share valuations” below. After our IPO (see Note 17 ), fair value is determined based on quoted prices on a recognized stock exchange. · Expected Volatility. As we had not been a public company and did not have a trading history for our subordinate voting shares prior to our IPO, the expected share price volatility for our common shares was estimated by taking the average historical price volatility for industry peers observed over a period equivalent to the expected term of the share option grants. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to us, in which case more suitable companies whose share prices are publicly available would be used in the calculation. · Risk-free Interest Rate. The risk-free interest rate is based on the yields of Government of Canada marketable bonds with maturities similar to the expected term of the options for each option group. · Expected Term. The expected term represents the period that our share-based awards are expected to be outstanding. As we do not have sufficient historical experience for determining the expected term of the share option awards granted, we base our expected term for awards issued on the simplified method, which represents the average period from vesting to the expiration of the share option. · Expected Dividend Yield. We have never declared or paid any cash dividends to shareholders and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero. Share valuations Given the absence of a public trading market for our common shares prior to our IPO, the fair value of our common shares were historically determined based on third-party valuations, based on information provided by management as well as external market and competitor information available to the experts. The valuation considered numerous objective and subjective factors to determine the best estimate of the fair value of our common shares at each grant date. These factors include: · our operating and financial performance; · current business conditions and projections; · the likelihood of achieving a liquidity event for the common shares underlying these share options, such as an initial public offering or sale of our company, given prevailing market conditions; and · the market performance of comparable publicly traded companies. The valuation is developed using a weighted blend of the income and market approaches. The income approach estimates the fair value of a company based on the present value of such company’s future estimated cash flows and the residual value of such company beyond the forecast period. These future values are discounted to their present values to reflect the risks inherent in such company achieving these estimated cash flows. Significant inputs of the income approach (in addition to our estimated future cash flows themselves) include the long-term growth rate assumed in the residual value, discount rate and normalized long-term operating margin. The terminal value was calculated to estimate our value beyond the forecast period by applying valuation metrics to the final year of our forecasted revenue and discounting that value to the present value using the same weighted average cost of capital applied to the forecasted periods. (k) Employee future benefit plans Defined benefit plans We participate in defined benefit pension plans that share risks between TELUS Corporation and its subsidiaries as well as unfunded, non-contributory retirement plans of TELUS International (Cda) Inc. and its subsidiaries. TELUS Corporation’s policy is to charge us our participant-based net defined benefit pension cost, as measured in accordance with IAS 19 , Employee Benefits . Employee benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. For defined benefit plans, the cost of pensions and other retirement benefits earned by employees is actuarially determined using the accrued benefit method pro-rated on service and management’s best estimates of salary escalation and the retirement ages of employees. In the determination of net income, net interest for each plan, which is the product of the plan’s surplus (deficit) multiplied by the discount rate, is included as a component of Interest expense and foreign exchange, as set out in Note 6 . The Company records annual amounts relating to its defined benefit plan based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, compensation increase and turnover rates. When the defined benefit plan’s key assumptions fluctuate relative to their immediately preceding year-end values, actuarial gains (losses) arising from such significant fluctuations are recognized in other comprehensive income. (l) Cash and cash equivalents Cash and cash equivalents includes short-term investments in money market funds and other highly liquid, low-risk instruments with maturities of less than three months. Cash and cash equivalents are presented net of outstanding items, including cheques written but not cleared by the related banks as at the statement of financial position date. Cash and cash equivalents are classified as a liability in the statement of financial position when the total amount of all cheques written but not cleared by the related banks exceeds the amount of cash and cash equivalents. When cash and cash equivalents are classified as a liability, they may also include overdraft amounts drawn on our bilateral bank facilities, which revolve daily. (m) Property, plant and equipment; intangible assets General Property, plant and equipment and intangible assets are recorded at historical cost, which for self-constructed property, plant and equipment includes materials, direct labour and applicable overhead costs. For internally developed internal-use software, the historical cost recorded includes materials, direct labour and direct labour-related costs. Where property, plant and equipment construction projects are of a sufficient size and duration, an amount is capitalized for the cost of funds used to finance construction. The rate for calculating the capitalized financing cost is based on our weighted average cost of borrowing experienced during the reporting period. When we sell property, plant and/or equipment, the net book value is netted against the sale proceeds and the difference is included in the consolidated statement of income and other comprehensive income as operating income. (n) Leases Prior to January 1, 2019, leases were classified as finance or operating, depending upon terms and conditions of the contract. Where we were the lessee, asset values recorded under finance leases were amortized on a straight-line basis over the period of expected use. Obligations recorded under finance leases were reduced by lease payments net of imputed interest. On January 1, 2019, we adopted IFRS 16, Leases which superseded IAS 17, Leases ( Note 2(a) ). We assess whether a contract is, or contains, a lease under the new standards. Any identified leases are recorded as right-of-use assets and included in property, plant and equipment, net on our statement of financial position ( Note 12 ). (o) Business combinations We use the acquisition method to account for business combinations, under which we allocate the excess of the purchase price of business acquisitions over the fair value of identifiable net assets acquired to goodwill. The purchase price is determined as the fair value of assets transferred, liabilities assumed, or equity instruments issued on the date of exchange, which may include contingent considerations that are initially measured at fair value at the acquisition date. Subsequent changes to the fair value of any contingent considerations are recognized through profit or loss. Acquisition-related costs are expensed as incurred. One of the most significant estimates relate to the allocation of the total consideration to each of the assets and liabilities acquired. For intangible assets acquired, the fair value is generally derived from a valuation analysis prepared by management or third-party experts as needed, based on appropriate valuation techniques using a forecast of the total expected future net cash flows and closely linked to the assumptions made by management regarding the future performance of the assets concerned and the discount rate applied. Where other markets or market participants are readily observable, these are considered in the determination of fair value. If the fair values of the assets, liabilities and contingent liabilities can only be calculated on a provisional basis, the business combination is recognized initially using provisional values. Any adjustments resulting from the completion of the measurement process are recognized within twelve months of the date of acquisition. Business transfers from related parties are accounted for as common control transactions using the predecessor accounting method wherein no assets or liabilities acquired are restated to their fair values and the results of operations include the transferred businesses’ results only from the date of our acquisition of them. No goodwill is recognized on such transactions, and any excess purchase price is recorded as an adjustment to owners' equity. |
Accounting policy developments
Accounting policy developments | 12 Months Ended |
Dec. 31, 2020 | |
Accounting policy developments | |
Accounting policy developments | 2. Accounting policy developments (a) Initial application and adoption of standards, interpretations and amendments to standards and interpretations in the reporting period In January 2016, the International Accounting Standards Board released IFRS 16, Leases , to be applied for years beginning on or after January 1, 2019 and superseded IAS 17, Leases . The standard removed the lessees’ classification of leases as either operating leases or finance leases and, for IFRS-IASB, introduced a single lessee accounting model. We have applied the standard retrospectively, with the cumulative effect of the initial application of the new standard recognized at the date of initial application, January 1, 2019, subject to permitted and elected practical expedients; such method of application does not result in the retrospective adjustment of amounts reported for periods prior to fiscal 2019 and as such, our fiscal 2018 amounts presented do not reflect the effects of changes to this accounting policy. The nature of the transition method selected is such that the lease population as at January 1, 2019, and the discount rates determined contemporaneously, is the basis for the cumulative effects recorded as of that date. Implementation of IFRS 16 As a transitional practical expedient permitted by the new standard, we have not reassessed whether contracts are, or contained, leases as at January 1, 2019, applying the criteria of the new standard; as at January 1, 2019, only contracts that were previously identified as leases applying IAS 17, Leases , and IFRIC 4, Determining whether an Arrangement contains a Lease , are a part of the transition to the new standard. Only contracts entered into (or changed) after December 31, 2018, will be assessed for being, or containing, leases applying the criteria of the new standard. IFRS 16, Leases , has the following impact on the fiscal 2019 opening amounts: Excluding effects of As reported As at January 1, 2019 (millions) IFRS 16 IFRS 16 effects under IFRS 16 Non‑current assets Property, plant and equipment, net $ $ $ Deferred income taxes $ 2.6 $ 1.3 $ 3.9 Current liabilities Current maturities of long‑term debt $ 6.0 $ 26.7 $ 32.7 Non‑current liabilities Long‑term debt $ 302.0 $ 127.6 $ 429.6 Owners’ equity Retained earnings $ (108.3) $ (14.7) $ (123.0) Accumulated other comprehensive income $ 21.2 $ 0.1 $ 21.3 Amendments to IFRS 3, Business Combinations In October 2018, the International Accounting Standards Board amended IFRS 3, Business Combinations , which clarified whether an acquisition transaction resulted in the acquisition of an asset or the acquisition of a business. The amendments are effective for acquisition transactions on or after January 1, 2020, which is the date that we have adopted this new accounting standard. The amended standard has a narrower definition of a business, which could result in the recognition of fewer business combinations than under the previous standard; the implication of this is that amounts which may have been recognized as goodwill in a business combination under the previous standard may be recognized as allocations to net identifiable assets acquired under the amended standard (with an associated effect in an entity’s results of operations that would differ from the effect of goodwill having been recognized). The effects of the amended standard on our financial performance and disclosure will be dependent on the facts and circumstances of any future acquisition transactions. (b) Standards, interpretations and amendments to standards not yet effective and not yet applied In August 2020, the International Accounting Standards Board issued Interest Rate Benchmark Reform—Phase 2, which amends IFRS 9, Financial Instruments , IAS 39, Financial Instruments: Recognition and Measurement , IFRS 7, Financial Instruments: Disclosures , IFRS 4, Insurance Contracts and IFRS 16, Leases . The amendments are effective for periods on or after January 1, 2021, although earlier application is permitted. Interest rate benchmarks such as interbank offer rates (IBORs) play an important role in global financial markets as they index a wide variety of financial products, including derivative financial instruments. Market developments have impacted the reliability of some existing benchmarks and, in this context, the Financial Stability Board has published a report setting out recommendations to reform such benchmarks. The Interest Rate Benchmark Reform—Phase 2 amendments focus on the effects of the interest rate benchmark reform on a company’s financial statements that arise when an interest rate benchmark used to calculate interest is replaced with an alternative benchmark rate; most significantly, there will be no requirement to derecognize or adjust the amount of financial instruments for changes required by the reform, but will instead update the effective interest rate to reflect the change to the alternative benchmark rate. The effects of these amendments on our financial performance and disclosure will be dependent upon the facts and circumstances of future changes in the derivative financial instruments we use, if any, and any future changes in interest rate benchmarks, if any, referenced by such derivative financial instruments we use. |
Capital structure financial pol
Capital structure financial policies | 12 Months Ended |
Dec. 31, 2020 | |
Capital structure financial policies | |
Capital structure financial policies | 3. Capital structure financial policies Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk levels. In the management of capital and in its definition, we include common equity (excluding accumulated other comprehensive income), long-term debt (including long-term credit facilities and any hedging assets or liabilities associated with long-term debt items, net of amounts recognized in accumulated other comprehensive income) and cash and cash equivalents. We manage capital by monitoring the financial covenants prescribed in our credit facility ( Note 16(b) ). We manage our capital structure and make adjustments to it in light of changes in economic conditions and the risk characteristics of our business. In order to maintain or adjust our capital structure, we may issue new shares, issue new debt and/or issue new debt to replace existing debt with different characteristics, or pay down our debt balance. Subsequent to year end and in connection with our IPO on February 3, 2021, we issued 20,997,375 subordinate voting shares to new investors at $25.00 per share for net proceeds of $490.0 million (net of underwriting discounts, commissions and other transaction costs), which were used to repay a portion of outstanding borrowings under our credit agreement (see Notes 16(b) and 17(a) ). |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Financial instruments | 4. Financial instruments (a) Risks—overview Our financial instruments, and the nature of certain risks to which they may be subject, are as set out in the following table. Risks Accounting Market risks Financial instrument classification Credit Liquidity Currency Interest rate Other price Measured at amortized cost Accounts receivable AC(1) X X Due from/to affiliated companies AC(1) X X Accounts payable and accrued liabilities AC(1) X X Provisions (including restructuring) AC(1) X X X Long-term debt AC(1) X X Measured at fair value Cash and cash equivalents FVTPL(2) X X X Foreign exchange derivatives(3) FVTPL/FVOCI(2) X X X Interest rate derivatives(3) FVTPL/FVOCI(2) X X X X (1) For accounting recognition and measurement purposes, classified as amortized cost (“AC”). (2) For accounting recognition and measurement purposes, classified as fair value through net income (“FVTPL”). Unrealized changes in the fair values of financial instruments are included in net income unless the instrument is part of a cash flow hedging relationship. The effective portion of unrealized changes in the fair values of financial instruments held for hedging are included in other comprehensive income (“FVOCI”). (3) Use of derivative financial instruments is subject to a policy which requires that no derivative transaction is to be entered into for the purpose of establishing a speculative or leveraged position (the corollary being that all derivative transactions are to be entered into for risk management purposes only) and sets criteria for the credit worthiness of the transaction counterparties. (b) Credit risk Excluding credit risk, if any, arising from interest rate swaps and currency swaps settled on a gross basis, the best representation of our maximum exposure (excluding income tax effects) to credit risk, which is a worst-case scenario and does not reflect results we expect, is as set out in the following table: As at December 31 (millions) 2020 2019 Cash and cash equivalents $ 152.5 $ 79.5 Accounts receivable 303.3 176.6 Due from affiliated companies 49.1 30.2 Derivative assets 1.8 3.3 $ 506.7 $ 289.6 Cash and cash equivalents Credit risk associated with cash and cash equivalents is managed by ensuring that these financial assets are placed with: governments; major financial institutions that have been accorded strong investment grade ratings by a primary rating agency; and/or other creditworthy counterparties. An ongoing review is performed to evaluate changes in the status of counterparties. Accounts receivable Credit risk associated with accounts receivable is managed through a program of credit evaluations of customers and limiting the amount of credit extended when deemed necessary. The following table presents an analysis of the age of customer accounts receivable. Any late payment charges are levied at a negotiated rate on outstanding non-current customer account balances. As at December 31 (millions) Note 2020 2019 Customer accounts receivable Less than 30 days past billing date $ 121.3 $ 97.4 30 - 60 days past billing date 27.5 3.0 61 - 90 days past billing date 7.2 2.3 More than 90 days past billing date 1.6 5.3 $ 157.6 $ 108.0 Customer accounts receivable 20(b) $ 162.8 $ 109.8 Allowance for doubtful accounts 20(b) (5.2) (1.8) Customer receivable, Net $ 157.6 $ 108.0 We maintain allowances for lifetime expected credit losses related to doubtful accounts. Current economic conditions (including forward-looking macroeconomic data), historical information (including credit agency reports, if available), reasons for the accounts being past due and line of business from which the customer accounts receivable arose are all considered when determining whether to make allowances for past-due accounts. The same factors are considered when determining whether to write off amounts charged to the allowance for doubtful accounts against the customer accounts receivable. The doubtful accounts expense is calculated on a specific-identification basis for customer accounts receivable over a specific balance threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable balances are written off directly to bad debt expense. The following table presents a summary of the activity related to our allowance for doubtful accounts. Years Ended December 31 (millions) 2020 2019 Balance, beginning of year $ 1.8 $ 2.9 Additions 6.5 0.6 Recovery (3.1) (1.7) Balance, end of year $ 5.2 $ 1.8 Derivative assets (and derivative liabilities) Counterparties to our foreign exchange and share-based compensation derivatives are major financial institutions that have been accorded investment grade ratings by a primary credit rating agency. The total dollar amount of credit exposure under contracts with any one financial institution is limited and counterparties’ credit ratings are monitored. We do not give or receive collateral on swap agreements and hedging items due to our credit rating and those of our counterparties. While we are exposed to the risk of potential credit losses due to the possible non-performance of our counterparties, we consider this risk remote. Our derivative liabilities do not have credit risk-related contingent features. (c) Liquidity risk As a component of our capital structure financial policies, discussed further in Note 3 , we manage liquidity risk by: · maintaining bilateral bank facilities and a syndicated credit facility ( Note 16(b) ); · continuously monitoring forecast and actual cash flows; and · managing maturity profiles of financial assets and financial liabilities. Our debt maturities in future years are as disclosed in Note 16(d) . We closely match the contractual maturities of our derivative financial liabilities with those of the risk exposures they are being used to manage. The expected maturities of our undiscounted financial liabilities, excluding long-term debt, do not differ significantly from the contractual maturities, other than as noted below. With respect to long-term debt maturities, we repaid a portion of the revolving credit facility on February 5, 2021, using the net proceeds from our IPO. The contractual maturities of our undiscounted financial liabilities as at December 31, 2020, including interest thereon (where applicable), are as set out in the following tables: Non-derivative Derivative Currency swap agreement Non-interest Due to Composite long-term debt amounts to be exchanged bearing affiliated Long-term Interest financial companies debt, excluding Leases rate swap Year (millions) liabilities (Note 19(a)) leases (1) (Note 16) (Notes 2(a), 14) (Receive) Pay agreement Total 2021 $ 380.7 $ 31.0 $ 87.4 $ 62.6 $ (95.4) $ 93.1 $ 2.5 $ 561.9 2022 398.2 — 307.9 51.5 (25.6) 25.1 2.3 759.4 2023 — — 66.0 43.6 (25.3) 25.0 — 109.3 2024 — — 65.2 28.4 (25.0) 24.8 — 93.4 2025 — — 1,215.4 17.9 (318.6) 365.5 — 1,280.2 Thereafter — — — 49.8 — — — 49.8 Total $ 778.9 $ 31.0 $ 1,741.9 $ 253.8 $ (489.9) $ 533.5 $ 4.8 $ 2,854.0 Total (Note 16(d)) $ 1,995.7 (1) Future cash outflows in respect of associated interest and like carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2020. (d) Currency risk Our primary operating currency is the United States dollar. The euro, Philippine peso and the Canadian dollar are the foreign currencies to which we currently have the largest exposure. Our foreign exchange risk management includes the use of foreign currency forward contracts to fix the exchange rates on short-term Philippine peso denominated transactions and commitments, as well as swaps which are used to manage the currency risk associated with European euro denominated inflows being used against United States dollar denominated debt. (e) Interest rate risk Changes in market interest rates will cause fluctuations in the fair value or future cash flows of short-term investments, short-term obligations and long-term debt. Our cash equivalents generally have short maturities and fixed interest rates and as a result, their fair value will fluctuate with changes in market interest rates; absent monetization prior to maturity, the related future cash flows will not change due to changes in market interest rates. As short-term obligations arising from bilateral bank facilities, which typically have variable interest rates, are rarely outstanding for periods that exceed one calendar week, interest rate risk on these facilities are not significant. Amounts drawn on our long-term credit facility ( Note 16(b) ) will be affected by changes in market interest rates in a manner similar to debts with short maturities in that the fair value is not materially affected by changes in market interest rates, but the associated cash flows representing interest payments are. We manage our exposure to changes in market interest rates with the use of interest rate swaps to fix the interest rates on the variable rate portion of our credit facility. (f) Market risk Net income and other comprehensive income for the years ended December 31, 2020, 2019 and 2018, could have varied if the United States dollar: Canadian dollar exchange rate, United States dollar: Philippine Peso exchange rate, United States dollar: European euro exchange rate, market interest rates, and the TELUS Corporation and TELUS International (Cda) Inc. common share prices varied by reasonably possible amounts from their actual statement of financial position date amounts. The sensitivity analysis of our exposure to currency risk at the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. The Canadian dollar, European euro and Philippine peso denominated balances as at the statement of financial position dates have been used in the calculations. The sensitivity analysis of our exposure to interest rate risk at the reporting date has been determined using the hypothetical change taking place at the beginning of the relevant fiscal year and being held constant through to the statement of financial position date. The relevant statement of financial position date principal has been used in the calculations. The sensitivity analysis of our exposure to other price risks arising from share-based compensation at the reporting date has been determined based upon a hypothetical change taking place at the relevant statement of financial position date. The relevant notional number of common shares at the statement of financial position date has been used in the calculations. Years Ended December 31 Net income Other comprehensive income Comprehensive income (increase (decrease) in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Reasonably possible changes in market risks(1) 10% change in US$: Cdn.$ exchange rate US$ appreciates $ (2.4) $ (0.4) $ (0.1) $ — $ — $ — $ (2.4) $ (0.4) $ (0.1) US$ depreciates $ 2.4 $ 0.4 $ 0.1 $ — $ — $ — $ 2.4 $ 0.4 $ 0.1 10% change in US$: Euro exchange rate US$ appreciates $ — $ 2.7 $ (1.8) $ 10.1 $ — $ 7.1 $ 10.1 $ (2.7) $ 5.3 US$ depreciates $ — $ (2.7) $ 1.8 $ (10.1) $ — $ (7.1) $ (10.1) $ 2.7 $ (5.3) 10% change in US$: Peso exchange rate US$ appreciates $ (0.9) $ (0.3) $ 1.6 $ — $ — $ — $ (0.9) $ (0.3) $ 1.6 US$ depreciates $ 0.9 $ 0.3 $ (1.6) $ — $ — $ — $ 0.9 $ 0.3 $ (1.6) 25 basis point change in market interest rate Rate increases $ (3.9) $ (0.8) $ (0.8) $ 0.5 $ 0.7 $ 1.0 $ (3.4) $ (0.1) $ 0.2 Rate decreases $ 3.9 $ 0.8 $ 0.8 $ (0.5) $ (0.7) $ (1.0) $ 3.4 $ 0.1 $ (0.2) 25%(2) change in common share price(3) Price increases $ (3.9) $ (2.4) $ (2.6) $ — $ — $ — $ (3.9) $ (2.4) $ (2.6) Price decreases $ 3.9 $ 2.4 $ 2.6 $ — $ — $ — 3.9 $ 2.4 $ 2.6 (1) These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. The sensitivity analysis assumes that we would realize the changes in exchange rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption. No consideration has been made for a difference in the notional number of common shares associated with share-based compensation awards made during the reporting period that may have arisen due to a difference in the common share price. (2) To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used. (3) The hypothetical effects of changes in the price of our common shares and those of TELUS Corporation are restricted to those which would arise from our share-based compensation awards that are accounted for as liability instruments. (g) Fair values General The carrying values of cash and cash equivalents, accounts receivable, accounts payable and certain provisions approximate their fair values due to the immediate or short-term maturity of these financial instruments. The fair values are determined directly by reference to quoted market prices in active markets. The fair values of the derivative financial instruments we use to manage our exposure to currency risks are estimated based upon quoted market prices in active markets for the same or similar financial instruments or on the current rates offered to us for financial instruments of the same maturity, as well as discounted future cash flows determined using current rates for similar financial instruments subject to similar risks and maturities (such fair value estimates being largely based on the European euro: US$ and Philippine peso: US$ forward exchange rates as at the statement of financial position dates). Derivative The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are as set out in the following table; all such items use significant other observable inputs (Level 2) for measuring fair value at the reporting date. 2020 2019 Maximum Notional Fair value and Price or Maximum Notional Fair value and Price or As at December 31 (millions) Designation maturity date amount carrying value rate maturity date amount carrying value rate Current assets (1) Derivatives used to manage Currency risks arising from Philippine peso denominated purchases HFT(2) 2021 $ 68.0 $ 1.8 US$:1.00 PHP: 48.23 2020 $ 28.0 $ 0.8 US$:1.00 PHP: 52.16 Currency risks arising from net investment in foreign operation HFH(3) — $ — $ — — 2020 $ 363.2 $ 2.5 US$:1.00 EUR: 0.89 Current liabilities (1) Derivatives used to manage European euro denominated business acquisition HFH(3) 2025 $ 1.6 $ 1.1 US$:1.00 EUR: 0.85 — $ — $ — — Non-current liabilities (1) Derivatives used to manage Currency risks arising from net investment in foreign operation HFH(3) 2025 $ 402.7 $ 52.4 US$:1.00 EUR: 0.85 2020 $ — $ — — Interest rate risk associated with non-fixed rate credit facility amounts drawn HFH(3) 2022 $ 100.5 $ 4.8 2.64 % 2022 $ 106.5 $ 3.2 2.64 % (1) Notional amounts of derivative financial assets and liabilities are not set off. (2) Foreign currency hedges are designated as held for trading (“HFT”) upon initial recognition; hedge accounting is not applied. (3) Designated as held for hedging (“HFH”) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items. Non-derivative The fair value amounts for cash and cash equivalents approximate carrying amounts due to the short-term maturities of these instruments. Our long-term debt, which is measured at amortized cost, approximates the fair value thereof due to the short-term nature of the applicable rates of interest charged. (h) Recognition of derivative gains and losses The following table sets out the gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items and their location within the Consolidated statements of income and other comprehensive income. Credit risk associated with such derivative instruments, as discussed further in (b) , would be the primary source of hedge ineffectiveness. There was no ineffective portion of derivative instruments classified as cash flow hedging items for the periods presented. Amount of gain (loss) recognized in other Gain (loss) reclassified from other comprehensive comprehensive income income to income (effective portion) (effective portion) Amount Years Ended December 31 (millions) 2020 2019 2018 Location 2020 2019 2018 Derivatives used to manage interest rate risk Associated with non-fixed rate credit facility amounts drawn $ (1.5) $ (2.7) $ (0.9) Interest expense $ 2.1 $ 0.4 $ (0.3) $ (1.5) $ (2.7) $ (0.9) $ 2.1 $ 0.4 $ (0.3) Derivatives used to manage currency risks Arising from Euro-denominated business acquisition $ — $ 2.4 $ — Foreign exchange $ — $ — $ — Arising from net investment in foreign operation $ (49.5) $ — $ — Foreign exchange $ — $ — $ — $ (51.0) $ (0.3) $ (0.9) $ 2.1 $ 0.4 $ (0.3) The following table sets out the gains and losses (excluding income tax effects) arising from derivative instruments that are classified as held for trading and that are not designated as being in a hedging relationship, and their location within the consolidated statements of income and other comprehensive income. Gain (Loss) recognized in Years Ended December 31 (millions) Location Note 2020 2019 2018 Derivatives used to manage currency risks Foreign exchange 6 $ 1.0 $ 0.3 $ (0.8) |
Employee benefits expense
Employee benefits expense | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefits expense | |
Employee benefits expense | 5. Employee benefits expense Years Ended December 31 (millions) Note 2020 2019 2018 Employee benefits expense Wages and salaries $ 935.3 $ 609.5 $ 510.1 Benefits 8.1 5.2 2.7 Share-based compensation 9 29.4 13.2 5.8 Pensions-defined contribution 10 3.5 2.2 0.8 Restructuring costs 11 3.2 0.3 3.1 $ 979.5 $ 630.4 $ 522.5 |
Interest expense and foreign ex
Interest expense and foreign exchange | 12 Months Ended |
Dec. 31, 2020 | |
Interest expense and foreign exchange | |
Interest expense and foreign exchange | 6. Interest expense and foreign exchange Years Ended December 31 (millions) Note 2020 2019 2018 Interest expense Interest on long-term debt, excluding lease liabilities $ 26.0 $ 13.9 $ 13.4 Interest on lease liabilities 13.9 13.2 — Interest on short-term borrowings and other 3.6 0.8 1.9 Interest accretion on provisions 15 1.9 8.4 7.9 $ 45.4 $ 36.3 $ 23.2 Foreign exchange Derivatives used to manage currency risks 4(h) $ (1.0) $ (0.3) $ 0.8 Foreign exchange (gain) loss (0.5) (2.3) 7.3 $ (1.5) $ (2.6) $ 8.1 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Income taxes | 7. Income taxes (a) Expense composition and rate reconciliation Years Ended December 31 (millions) 2020 2019 2018 Current income tax expense For current reporting year $ 57.3 $ 25.9 $ 19.8 Adjustments recognized in the current period for income tax of prior periods (9.8) 2.1 1.3 47.5 28.0 21.1 Deferred income tax expense (recovery) Arising from the origination and reversal of temporary differences (2.6) 3.1 (0.1) Adjustments recognized in the current period for income tax of prior periods 2.7 (5.1) 0.9 0.1 (2.0) 0.8 $ 47.6 $ 26.0 $ 21.9 Our income tax expense and effective income tax rate differs from that calculated by applying the applicable statutory rates for the following reasons: Years Ended December 31 (millions) 2020 2019 2018 Income taxes computed at applicable statutory rates $ 36.5 24.2 % $ 26.8 28.2 % $ 20.3 29.4 % Non-tax deductible items 9.6 6.4 1.8 1.9 2.4 3.4 Withholding and other taxes 7.7 5.1 6.8 7.1 5.1 7.3 Foreign tax differential (7.6) (5.0) (16.3) (17.2) (15.3) (22.2) Adjustments recognized in the current period for income tax of prior periods (7.1) (4.7) (3.0) (3.1) 2.2 3.2 Foreign accrual property income 6.0 4.0 9.1 9.5 7.9 11.5 Losses not recognized 3.0 2.0 2.0 2.1 0.7 1.1 Other (0.5) (0.4) (1.2) (1.2) (1.4) (1.9) Income tax expense per consolidated statements of income and other comprehensive income $ 47.6 31.6 % $ 26.0 27.3 % $ 21.9 31.8 % (b) Temporary differences We must make significant estimates in respect of the composition of our deferred income taxes. Our operations are complex and the related income tax interpretations, regulations, legislation and jurisprudence are continually changing. As a result, there are usually some income tax matters in question. Temporary differences comprising the net deferred income tax asset and the amounts of deferred income taxes recognized in the consolidated statement of income and other comprehensive income and the consolidated statement of changes in owners’ equity are estimated as follows: Property, plant and equipment Net pension Debt and Net deferred and intangible and share-based equity Non-capital income tax assets subject compensation issue Provisions loss carried asset (millions) Note to amortization amounts costs and other forward Leases (liability) As at January 1, 2019 $ (42.5) $ 2.0 $ 0.3 $ 39.9 — — $ (0.3) IFRS 16, Leases transitional amount 2(a) — — — — — 1.3 1.3 As Adjusted (42.5) 2.0 0.3 39.9 — 1.3 1.0 Deferred income tax (expense) recovery recognized in Net income 1.0 0.6 (0.4) (1.9) 2.7 — 2.0 As at December 31, 2019 $ (41.5) $ 2.6 $ (0.1) $ 38.0 $ 2.7 $ 1.3 $ 3.0 Acquired during the year and other (365.6) — — 1.0 — 0.9 (363.7) Deferred income tax (expense) recovery recognized in Net income 31.4 3.0 (0.9) (34.1) 0.6 (0.1) (0.1) Other comprehensive income — — — 1.1 — — 1.1 As at December 31, 2020 $ (375.7) $ 5.6 $ (1.0) $ 6.0 $ 3.3 $ 2.1 $ (359.7) Presented on the consolidated statement of financial position as: Deferred income tax asset $ 4.7 Deferred income tax liability (1.7) As at December 31, 2019 $ 3.0 Deferred income tax asset $ 6.5 Deferred income tax liability (366.2) As at December 31, 2020 $ (359.7) Temporary differences arise from the carrying value of the investments in subsidiaries exceeding their tax base, for which no deferred income tax liabilities have been recognized because the parent is able to control the timing of the reversal of the difference and it is probable that it will not reverse in the foreseeable future. In our specific instance, this is relevant to our investments in our non-Canadian subsidiaries. We are not required to recognize such deferred income tax liabilities, as we are in a position to control the timing and manner of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. (c) Other For the years ended December 31, 2020, December 31, 2019 and December 31, 2018, the Company has cumulative tax losses of $15.2 million, $15.7 million and $5.3 million, respectively, for which no deferred tax asset is recognized. Of the $15.2 million balance as at December 31, 2020, $9.0 million can be carried forward indefinitely and $6.2 million expires by 2025. During the year ended December 31, 2020, we recognized the benefit of $5.5 million of non-capital losses. |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income | |
Other comprehensive income | 8. Other comprehensive income Item never Items that may subsequently be reclassified to reclassified to income income Cumulative Change in foreign Employee Accumulated unrealized fair currency defined benefit other value of translation plan re- comprehensive (millions) derivatives adjustment measurements income Accumulated balance as at January 1, 2018 $ (0.1) $ 31.4 $ — $ 31.3 Other comprehensive income (loss) Amount arising (0.9) (9.9) 0.5 (10.3) Income taxes 0.2 — — 0.2 Net (0.7) (9.9) 0.5 (10.1) Accumulated balance as at December 31, 2018 $ (0.8) $ 21.5 $ 0.5 $ 21.2 Opening balance adjustment for IFRS 16 — 0.1 — 0.1 As adjusted (0.8) 21.6 0.5 21.3 Other comprehensive income (loss) Amount arising 0.1 (3.3) (2.7) (5.9) Net 0.1 (3.3) (2.7) (5.9) Accumulated balance as at December 31, 2019 $ (0.7) $ 18.3 $ (2.2) $ 15.4 Other comprehensive income (loss) Amount arising (51.0) 124.1 (0.2) 72.9 Income taxes 1.1 — — 1.1 Net (49.9) 124.1 (0.2) 74.0 Accumulated balance as at December 31, 2020 $ (50.6) $ 142.4 $ (2.4) $ 89.4 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based compensation | |
Share-based compensation | 9. Share-based compensation Subsequent to the Share Class Reclassification Transactions (see Note 17 ), we have two classes of shares outstanding: multiple voting shares and subordinate voting shares (collectively “Shares”). Common shares issued for equity-settled awards are subordinate voting shares. The number of shares authorized, the number of shares outstanding, the number of shares reserved, per share amounts and share-based compensation information in this note have been restated to reflect the impact of the Share Class Reclassification Transactions. (a) Restricted share units General We use two classes of restricted share units as a form of retention and incentive compensation: one class is nominally equal in value to one TELUS International (Cda) Inc. common share, the second class is nominally equal in value to one TELUS Corporation common share. All of our restricted share units are cash-settled by ourselves and are accounted for as liabilities. The vesting method of restricted share units, which is determined on or before the date of grant, is cliff vesting. For the years ended December 31, 2020, December 31, 2019 and December 31, 2018, the income tax benefit arising from restricted share unit share-based compensation was $7.3 million, $2.9 million and $1.3 million, respectively. TELUS International (Cda) Inc. phantom restricted share units Each phantom restricted share unit is nominally equal in value to one TELUS International (Cda) Inc. common share. The restricted share units generally become payable when vesting is completed and typically vests over a period of 30 months (the requisite service period). As the TELUS International (Cda) Inc. common shares are not currently a dividend-paying share, the grant-date fair value of restricted share units equals the fair market value of the corresponding TELUS International (Cda) Inc. common shares at the grant date. The following table presents a summary of the activity related to TELUS International (Cda) Inc. phantom restricted share units. US$ denominated (1) Canadian $ denominated (1) Number of restricted Number of restricted share units Grant-date share units Grant-date Non-vested Vested fair value Non-vested Vested fair value Outstanding, January 1, 2018 419,260 — $ 5.52 — 145,345 $ 4.75 Granted 356,337 — $ 6.30 — — $ — Forfeited (39,627) — $ 5.75 — — $ — Outstanding, December 31, 2018 735,970 — $ 5.88 — 145,345 $ 4.75 Granted 465,430 — $ 6.18 — — $ — Forfeited (72,472) — $ 5.91 — — $ — Vested (365,760) 365,760 $ 5.52 — — $ — Settled in cash — (365,760) $ 5.52 — (145,345) $ 4.75 Outstanding, December 31, 2019 763,168 — $ 6.23 — — $ — Granted 357,966 — $ 11.11 — — $ — Forfeited (55,836) — $ 6.21 — — $ — Vested (348,435) 348,435 $ 6.30 — — $ — Settled in cash — (348,435) $ 6.30 — — $ — Outstanding, December 31, 2020 716,863 — $ 8.55 — — $ — (1) Note 17 ). TELUS International (Cda) Inc. phantom performance share units Each phantom performance share unit is nominally equal in value to one TELUS International (Cda) Inc. common share. The performance share units generally become payable when vesting is completed and typically vest over a period of 30 months (the requisite service period). These units generally have a variable payout (0%–100%) depending upon our financial performance and quality-of-service performance conditions. As the TELUS International (Cda) Inc. common shares are not currently a dividend-paying share, the grant-date fair value of performance share units equals the fair market value of the corresponding TELUS International (Cda) Inc. common shares at the grant date. The following table presents a summary of the activity related to TELUS International (Cda) Inc. phantom performance share units. 2020 (1) 2019 (1) 2018 (1) Number of restricted Number of restricted Number of restricted share units share units share units Grant-date Grant-date Grant-date Years Ended December 31 Non-vested Vested fair value Non-vested Vested fair value Non-vested Vested fair value Outstanding, beginning of year 1,338,565 — $ 6.96 1,720,345 — $ 5.61 1,223,887 — $ 5.41 Granted — — $ — 426,433 — $ 8.46 496,458 — $ 6.14 Forfeited (37,826) — $ 8.46 (11,250) — $ 6.18 — — $ — Vested (633,960) 633,960 $ 6.23 (796,963) 796,963 $ 4.87 — — $ — Settled in cash — (633,960) $ 6.23 — (796,963) $ 4.87 — — $ — Outstanding, end of year 666,779 — $ 7.23 1,338,565 — $ 6.96 1,720,345 — $ 5.61 (1) Amounts reflect retrospective application of a 4.5-for-one share subdivision, which occurred in connection with TELUS International (Cda) Inc.’s sale of shares to the public on February 3, 2021 (see Note 17 ). Phantom TELUS Corporation restricted share units Each restricted share unit is nominally equal in value to one TELUS Corporation common share and is nominally entitled to the dividends that would arise thereon if it were an issued and outstanding TELUS Corporation common share. The notional dividends are recorded as additional issuances of restricted share units during the life of the restricted share unit. Due to the notional dividend mechanism, the grant-date fair value of restricted share units equals the fair market value of the corresponding TELUS Corporation common shares at the grant date. The restricted share units generally become payable when vesting is completed and typically vest over a period of 30 months (the requisite service period). These restricted share units generally have a variable payout (0%-100%) depending upon our financial performance and non-market quality-of-service performance conditions. The grant-date fair value of our restricted share units affected by the financial performance and non-market quality-of-service performance conditions equals the fair market value of the corresponding TELUS Corporation common shares at the grant date. On February 13, 2020, TELUS Corporation announced a subdivision of their common shares on a two-for-one basis to be effective March 17, 2020. Unless otherwise indicated, all references to TELUS Corporation restricted share units, to the number of shares authorized, to the number of shares outstanding, to the number of shares reserved and to the per share amounts and share-based compensation information in the consolidated financial statements, have been retrospectively restated to reflect the impact of the subdivision. The following table presents a summary of the activity related to TELUS Corporation restricted share units. 2020 2019 2018 Phantom TELUS Phantom TELUS Phantom TELUS Corporation restricted Corporation restricted Corporation share units share units restricted Weighted Weighted share units Weighted average average average Years Ended December 31 grant‑date grant‑date grant‑date Canadian $ denominated Non‑vested Vested fair value Non‑vested Vested fair value Non‑vested Vested fair value Outstanding, beginning of year 253,622 — $ 23.78 263,128 — $ 16.45 283,106 — $ 21.84 Granted 13,217 — $ 24.97 94,342 — $ 21.38 83,040 — $ 22.55 Issued in lieu of dividends 10,156 — $ 15.42 9,214 — $ 26.99 — — $ — Vested (113,737) 113,737 $ 25.49 (113,062) 113,062 $ 21.25 (98,048) 98,048 $ 19.84 Settled in cash — (113,737) $ 25.49 — (113,062) $ 21.25 — (98,048) $ 19.84 Forfeited (6,509) — $ 23.59 — — — (4,970) — $ 20.49 Outstanding, end of year 156,749 — $ 24.17 253,622 — $ 23.78 263,128 — $ 16.45 (b) Share option awards We use equity share option awards (equity-settled) and phantom share option awards (cash-settled and share-settled) as a form of retention and incentive compensation. Employees may receive equity share option awards to purchase TELUS International (Cda) Inc. common shares at a price equal to, or a multiple of, the fair market value at the time of grant. Share option awards may be exercised over specific periods not to exceed ten years from the time of grant, however the awards generally may not be exercised and settled prior to the completion of an initial public offering, or other liquidity event, by TELUS International (Cda) Inc. The initial public offering on February 3, 2021 did not accelerate the vesting or exercisability of equity share option or phantom share option awards. We apply the fair value method of accounting for share-based compensation awards. Equity share option awards generally have a three-year vesting period (the requisite service period). The vesting method of equity share option awards, which is determined on or before the date of grant, is cliff-vesting. Some equity share option awards have a variable payout (0%-100%) depending upon our financial performance and non-market quality-of-service performance conditions. Phantom share option awards are accounted for as liability instruments and the associated liability is 50% cash-settled and 50% share-settled. Phantom share option awards generally vest 30 months following award and reflect notional exercise prices equal to the fair market value at the date of grant, but are not exercisable until an initial public offering or liquidity event occurs except for cash-settled phantom options granted in 2019, which are exercisable 50% on vesting and 50% twelve months thereafter. Phantom share options reflect notional exercise prices equal to, or a multiple of, the fair market value at the date of grant and have a variable payout (0%-100%) depending upon our financial performance and non-market quality-of-service performance conditions. The risk-free interest rate used in determining the fair value of the share option awards is based on a Government of Canada yield curve that is current at the time of grant. The expected lives of the share option awards are based on management’s best estimate of certain non-vesting conditions being achieved. Similarly, expected volatility considers the historical volatility in the observable prices of our peers’ shares. The dividend yield is the annualized dividend current at the time of grant divided by the share option award exercise price. Dividends are not paid on unexercised share option awards and are not subject to vesting. The following table presents a summary of the activity related to our share option awards. US $ denominated Canadian $ denominated Number of share Number of share option units option units Weighted Weighted average average exercise exercise Non-vested Vested price Non-vested Vested price Outstanding, January 1, 2018 1 3,363,543 — $ 6.69 — 242,244 $ 4.75 Granted 500,764 — $ 6.18 — — $ — Outstanding, December 31, 2018 3,864,307 — $ 6.63 — 242,244 $ 4.75 Granted 612,351 — $ 8.46 — — $ — Outstanding, December 31, 2019 4,476,658 — $ 6.91 — 242,244 $ 4.75 Vested (3,822,025) 3,822,025 $ 6.21 — — $ — Exercised — (554,602) $ 6.21 — — $ — Outstanding, December 31, 2020 654,633 3,267,423 $ 6.94 2 — 242,244 $ 4.75 3 Exercisable, December 31, 2020 — 3,267,423 $ 6.58 — 242,244 $ 4.75 (1) Amounts reflect retrospective application of a 4.5-for-one share subdivision, which occurred in connection with TELUS International (Cda) Inc.’s sale of shares to the public on February 3, 2021 (see Note 17 ). (2) For options outstanding at the end of the period, the exercise prices ranged from $3.54 to $8.95. The weighted-average remaining expected life was 6.4 years. (3) For options outstanding at the end of the period, the exercise price is $4.75. The weighted-average remaining expected life was 5.6 years. 1 |
Employee future benefits
Employee future benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employee future benefits | |
Employee future benefits | 10. Employee future benefits Defined contribution pension plans We have a number of registered retirement and defined contribution plans providing pension and other retirement and post-employment benefits to our employees in the form of certain statutory and other schemes. Employees in most of our foreign subsidiaries are covered by government mandated, defined contribution plans. Employees become eligible to participate in these plans on the first day of the month after their employment date. The Company may make discretionary contributions under the plans. We offer two defined contribution pension plans, which are contributory, and these are the pension plans that we sponsor and are available to our employees. Employees, annually, can generally choose to contribute to the plans at a rate of between 3% and 6% of their pensionable earnings. During the years ended December 31, 2020 and 2019, we matched 100% of the contributions of employees up to 5% of their pensionable earnings and 80% of employee contributions greater than that to a maximum contribution total of 5.8%. Membership in a defined contribution pension plan is generally voluntary until an employee’s third-year service anniversary. In the event that annual contributions exceed allowable maximums, excess amounts are in certain cases contributed to a non-registered, supplementary defined contribution pension plan. Our total defined contribution pension plan costs, recognized in comprehensive income for the years ended December 31, 2020 and 2019 were $1.4 million and $0.3 million, respectively. Defined benefit pension plans We also have a small number of Canadian-sited employees who participate in defined benefit plans, and such plans share risks between TELUS Corporation and its subsidiaries (see Note 19(a) ). Disclosure about these defined benefit plans, as a whole, is made in the publicly-available TELUS Corporation consolidated financial statements. In addition to the aforementioned plans, we have non-registered, non-contributory supplementary retirement benefit plans, which have the effect of maintaining the earned pension benefit once the allowable maximums in the registered plans are attained. As is common with non-registered plans of this nature, these plans are typically funded only as benefits are paid. Our total retirement benefit plan pension plan costs, recognized in comprehensive income for the years ended December 31, 2020, December 31, 2019 and December 31, 2018, were $3.1 million, $1.9 million and $0.8 million, respectively. As at December 31, 2020, December 31, 2019 and December 31, 2018, we had recorded an obligation of $14.7 million, $8.8 million and $3.7 million, respectively, in respect of these plans in Provisions in the consolidated statement of financial position. |
Restructuring and other costs
Restructuring and other costs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and other costs | |
Restructuring and other costs | 11. Restructuring and other costs (a) Details of restructuring and other costs We incur charges primarily related to business acquisition transaction and integration expense, which could vary from year to year depending on the volume, nature and complexity of the transaction in each fiscal year. We also, from time to time, incur costs associated with streamlining out operations. Restructuring and other costs are presented in the consolidated statements of income and other comprehensive income as set out in the following table: Restructuring (b) Other (c) Total Years Ended December 31 (millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Goods and services purchased $ — $ 3.0 $ 0.1 $ 55.5 $ 2.8 $ 0.5 $ 55.5 $ 5.8 $ 0.6 Employee benefits expense 3.2 0.3 3.1 — — — 3.2 0.3 3.1 $ 3.2 $ 3.3 $ 3.2 $ 55.5 $ 2.8 $ 0.5 $ 58.7 $ 6.1 $ 3.7 (b) Restructuring costs Restructuring costs pertain both to employee-related restructuring activities as well as incremental efficiency initiatives, including rationalization of real estate, which is recognized in Goods and services purchased on the statement of comprehensive income. In 2020, restructuring activities focused largely on employee-related activities, which were intended to improve our long-term operating productivity and competitiveness. (c) Other Other includes business acquisition transaction costs and integration expenditures that would have been considered neither restructuring costs nor part of the fair value of the net assets acquired have been included here. During the year ended December 31, 2020, we incurred transaction costs, including advisor and legal fees in connection with the acquisition of Lionbridge AI and Competence Call Center (CCC) ( Note 13(c) ). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Property, plant and equipment | 12. Property, plant and equipment Right-of-use lease assets Owned Assets ( Note 2a ) Computer Buildings and Furniture hardware and leasehold and Assets under (millions) Note network assets improvements equipment construction Total Buildings Total At cost As at January 1, 2019, adjusted $ 37.2 $ 69.0 $ 106.9 $ 23.0 $ 236.1 $ 138.4 $ 374.5 Additions 0.9 1.8 8.2 47.1 58.0 68.2 126.2 Dispositions retirements and other (15.8) (12.7) 17.8 (4.6) (15.3) (2.3) (17.6) Assets under construction put into service 10.4 19.9 23.1 (53.4) — — — Foreign currency translation adjustments (0.4) (0.2) (0.8) (0.9) (2.3) (1.8) (4.1) As at December 31, 2019 $ 32.3 $ 77.8 $ 155.2 $ 11.2 $ 276.5 $ 202.5 $ 479.0 Additions 1.3 4.6 20.1 36.2 62.2 27.5 89.7 Additions from Acquisition 13(c) 6.3 9.4 23.9 1.9 41.5 35.1 76.6 Dispositions retirements and other (0.4) (7.7) (13.6) (3.0) (24.7) (10.3) (35.0) Assets under construction put into service 6.2 8.9 16.8 (31.9) — — — Foreign currency translation adjustments 0.3 2.1 4.2 0.2 6.8 9.2 16.0 As at December 31, 2020 $ 46.0 $ 95.1 $ 206.6 $ 14.6 $ 362.3 $ 264.0 $ 626.3 Accumulated depreciation As at January 1, 2019 $ 18.9 $ 31.4 $ 70.6 $ — $ 120.9 $ — $ 120.9 Depreciation 6.2 10.0 22.0 — 38.2 34.9 73.1 Dispositions retirements and other (9.2) (13.5) 7.1 — (15.6) (0.3) (15.9) Foreign currency translation adjustments 0.3 (0.1) (0.2) — — (0.1) (0.1) As at December 31, 2019 $ 16.2 $ 27.8 $ 99.5 $ — $ 143.5 $ 34.5 $ 178.0 Depreciation 7.2 12.0 32.5 — 51.7 47.7 99.4 Dispositions retirements and other (0.2) (8.1) (8.3) — (16.6) (0.1) (16.7) Foreign currency translation adjustments — 0.4 1.6 — 2.0 1.5 3.5 As at December 31, 2020 $ 23.2 $ 32.1 $ 125.3 $ — $ 180.6 $ 83.6 $ 264.2 Net Book Value As at December 31, 2019 $ 16.1 $ 50.0 $ 55.7 $ 11.2 $ 133.0 $ 168.0 $ 301.0 As at December 31, 2020 $ 22.8 $ 63.0 $ 81.3 $ 14.6 $ 181.7 $ 180.4 $ 362.1 |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill | |
Intangible assets and goodwill | 13. Intangible assets and goodwill (a) Intangible assets and goodwill Intangible assets subject to amortization Standard Total Assets operating Total intangible Customer under procedures Crowd intangible assets and (millions) Note relationships Software construction Brand and other source assets Goodwill goodwill At cost As at January 1, 2019 $ 108.6 $ 27.3 $ 6.5 $ — $ — $ — $ 142.4 $ 421.2 $ 563.6 Additions — 0.6 4.2 — — — 4.8 — 4.8 Dispositions, retirements, and other (0.1) (1.5) — — — — (1.6) — (1.6) Assets under construction put into service — 7.0 (7.0) — — — — — — Foreign currency translation adjustments (0.5) (0.2) — — — — (0.7) (2.8) (3.5) As at December 31, 2019 $ 108.0 $ 33.2 $ 3.7 — — — $ 144.9 $ 418.4 $ 563.3 Additions — 3.5 7.8 — 0.1 — 11.4 — 11.4 Additions from Acquisition 13(c) 1,057.3 0.9 — 25.3 10.2 120.0 1,213.7 1,017.0 2,230.7 Assets under construction put into service — 5.4 (5.4) — — — — — — Foreign currency translation adjustments 57.4 5.5 1.4 2.8 1.1 — 68.2 64.6 132.8 As at December 31, 2020 $ 1,222.7 $ 48.5 $ 7.5 $ 28.1 $ 11.4 $ 120.0 $ 1,438.2 $ 1,500.0 $ 2,938.2 Accumulated amortization As at January 1, 2019 $ 16.8 $ 20.8 $ — $ — $ — $ — $ 37.6 $ — $ 37.6 Amortization 14.9 4.2 — — — — 19.1 — 19.1 Dispositions, retirements, and other — (1.3) — — — — (1.3) — (1.3) Foreign currency translation adjustments (0.2) — — — — — (0.2) — (0.2) As at December 31, 2019 $ 31.5 $ 23.7 $ — $ — $ — $ — $ 55.2 $ — $ 55.2 Amortization 65.6 7.9 — 6.8 2.5 — 82.8 — 82.8 Foreign currency translation adjustments 5.4 0.1 — 0.3 0.1 — 5.9 — 5.9 As at December 31, 2020 $ 102.5 $ 31.7 $ — $ 7.1 $ 2.6 — $ 143.9 $ — $ 143.9 Net book value As at December 31, 2019 $ 76.5 $ 9.5 $ 3.7 — — — $ 89.7 $ 418.4 $ 508.1 As at December 31, 2020 $ 1,120.2 $ 16.8 $ 7.5 $ 21.0 $ 8.8 $ 120.0 $ 1,294.3 $ 1,500.0 $ 2,794.3 (b) Impairment testing of goodwill General As referred to in Note 1(g) , the carrying value of goodwill is periodically tested for impairment and, as referred to in Note 1(c) , this test represents a significant estimate for us as well as requiring significant judgments to be made. The recoverable amount of the business has been determined using a value-in-use method. There is a material degree of uncertainty with respect to the estimate of the recoverable amount, given the necessity of making key economic assumptions about the future. We validate our recoverable amount calculation results through a market-comparable approach and an analytical review of industry facts and facts that are specific to us. That is, we estimate the recoverable amount using multiples of operating performance of comparable entities and precedent transactions in that industry. Annual impairment testing For purposes of testing goodwill for impairment (as noted in Note 1(c) ) each geographic area in which we operate is insufficiently distinct, making it impractical to objectively distinguish the cash flows of each region and as such, is not considered to be an individual cash generating unit. We did not recognize an impairment charge related to our goodwill in the years ended December 31, 2020, December 31, 2019 and December 31, 2018. Key assumptions The value-in-use calculation uses discounted cash flow projections employ the following key assumptions: future cash flows and growth projections; associated economic risk assumptions and estimates of the likelihood of achieving key operating metrics and drivers; estimates of future capital expenditures; and the future weighted average cost of capital. We consider a range of reasonably possible amounts to use for key assumptions and decide upon amounts that represent management’s best estimates of market amounts. In the normal course, we make changes to key assumptions so that they reflect current economic conditions and updates of historical information used to develop the key assumptions. The key assumptions for cash flow projections are based upon our approved financial forecasts, which span a period of three years and are discounted, for December 2020, annual impairment test purposes, at a consolidated post-tax notional rate of 9.7% (2019 - 10.6%; 2018 – 10.2%). For impairment testing valuations, cash flows subsequent to the three-year projection period are extrapolated, for December 2020, annual impairment test purposes, using perpetual growth rates of 3.5% (2019 - 2.5%; 2018 - 2.5%); these growth rates do not exceed the long-term average growth rates observed in the markets in which we operate. We believe that any reasonably possible change in the key assumptions on which the calculation of the recoverable amounts of our cash-generating unit is based would not cause the cash-generating unit’s carrying value to exceed its recoverable amount. If the future were to adversely differ from management’s best estimates for the key assumptions and associated cash flows were to be materially adversely affected, we could potentially experience future material impairment charges in respect of our goodwill. (c) Business acquisitions Competence Call Center On January 31, 2020, we acquired 100% of Competence Call Center, a provider of higher-value-added business services with a focus on customer relationship management and content moderation. The investment was made with a view to growing and enhancing our service offerings and strategic relationships and building a strong presence in the Europe, Middle East, and Africa (EMEA) regions. The primary factor that contributed to the recognition of goodwill was the earnings capacity of the acquired business in excess of the net tangible and intangible assets acquired (such excess arising from the acquired workforce and the benefits of acquiring an established business). The amount assigned to goodwill is not expected to be deductible for income tax purposes. Managed IT Services On April 1, 2020, we acquired Managed IT Services (MITS) business from our controlling shareholder, TELUS Corporation, for equity consideration of 3,535,470 Class C common shares, with a fair value of $48.8 million (see Note 18(a) ). MITS is a leading provider of managed IT services in Canada, offering a mix of cloud technologies, IT sourcing and managed hosting. TELUS International acquired the MITS assets with a view of enhancing its Digital services portfolio, which continues to be a growing service offering in the marketplace. This transaction was accounted for as a common control transaction using the predecessor accounting method prospectively applied wherein no assets or liabilities acquired are restated to their fair values and the results of operations include the transferred businesses’ results only from the date of our acquisition of them. As no assets and liabilities acquired were restated to their fair values, the excess of the fair value of the consideration paid by TELUS International (Cda) Inc. over the carrying values of the assets and liabilities received has been charged to retained earnings. Lionbridge AI On December 31, 2020, we completed the acquisition of Lionbridge AI for a purchase price of $939.5 million, subject to customary post-closing adjustments. Lionbridge AI is a market-leading global provider of crowd-based training data and annotation platform solutions used in the development of artificial intelligence (AI) algorithms to power machine learning. TELUS International is acquiring Lionbridge AI to further enhance its digital solutions offerings. The primary factor that contributed to the recognition of goodwill was the earnings capacity of the acquired business in excess of the net tangible and intangible assets acquired (such excess arising from the acquired workforce and the benefits of acquiring an established business). The amount assigned to goodwill is not expected to be deductible for income tax purposes. Acquisition-date fair values The acquisition-date fair values assigned to the assets acquired and liabilities assumed during the year ended December 31, 2020 are as set out in the following table: Competence Managed IT As at acquisition-date fair values (millions) Call Center Services Lionbridge AI Combined Assets Current assets Cash and cash equivalents $ 67.9 $ — $ 2.7 $ 70.6 Accounts receivable 1 48.7 2.4 40.4 91.5 Other 1.4 2.9 6.0 10.3 $ 118.0 $ 5.3 $ 49.1 $ 172.4 Non-current assets Property, plant and equipment Owned assets $ 15.9 $ 25.4 $ 0.2 $ 41.5 Right-of-use lease assets 32.6 — 2.5 35.1 Intangible assets subject to amortization 569.9 2 0.8 643.0 3 1,213.7 Deferred income taxes — 1.3 — 1.3 Other 1.7 2.2 — 3.9 $ 620.1 $ 29.7 $ 645.7 $ 1,295.5 Total identifiable assets acquired $ 738.1 $ 35.0 $ 694.8 $ 1,467.9 Liabilities Current liabilities Accounts payable and accrued liabilities $ 32.0 $ 1.1 $ 22.4 $ 55.5 Income and other taxes payable 47.7 — 11.1 58.8 Advance billings and customer deposits — 0.8 0.7 1.5 Current maturities of long-term debt 8.1 — 0.7 8.8 $ 87.8 $ 1.9 $ 34.9 $ 124.6 Non-current liabilities Long-term debt $ 163.4 $ — $ 1.8 $ 165.2 Other long-term liabilities — 0.7 0.4 1.1 Deferred income taxes 162.6 — 186.5 349.1 $ 326.0 $ 0.7 $ 188.7 $ 515.4 Total liabilities assumed $ 413.8 $ 2.6 $ 223.6 $ 640.0 Net identifiable assets acquired $ 324.3 $ 32.4 $ 471.2 $ 827.9 Goodwill 548.7 — 468.3 1,017.0 Net assets acquired $ 873.0 $ 32.4 $ 939.5 $ 1,844.9 Acquisition effected by way of: Cash consideration $ 873.0 $ — $ 939.5 $ 1,812.5 Share consideration — 48.8 — 48.8 Excess of fair value of consideration paid over the carrying value of business acquired — (16.4) — (16.4) $ 873.0 $ 32.4 $ 939.5 $ 1,844.9 (1) (2) (3) Pro forma disclosures The following pro forma supplemental information represents certain results of operations as if the business acquisitions noted above had been completed at the beginning of the fiscal 2020 year. Year Ended December 31, 2020 Competence (millions except per share amounts) As reported(1) Call Center Managed IT Services Lionbridge AI(3) Pro forma(2) Revenue arising from contracts with customers $ 1,581.6 $ 32.7 $ 33.4 $ 239.1 $ 1,886.8 Net income (loss) $ 102.9 $ (1.7) $ 3.3 $ (31.0) $ 73.5 Earnings (loss) per share Basic $ 0.46 $ (0.01) $ 0.02 $ (0.14) $ 0.33 Diluted $ 0.46 $ (0.01) $ 0.02 $ (0.14) $ 0.33 (1) Revenue arising from contracts with customers and net income for the year ended December 31, 2020, include: $395.4 million and $76.5 million, respectively, in respect of Competence Call Center. Revenues and net income for the year ended December 31, 2020, include: $76.9 million and $3.1 million, respectively, in respect of MITS. The acquisition of Lionbridge AI had no impact on our revenues or net income for the year ended December 31, 2020, as the transaction occurred on December 31, 2020. (2) Pro forma amounts for the year ended December 31, 2020 reflect results of the transferred business. The actual results of the transferred business have been included in our Consolidated statements of income and other comprehensive income effective from the date of acquisition. (3) Financial information for Lionbridge AI for the year ended December 31, 2020 represents results for a period prior to our acquisition of the Lionbridge AI business, which was completed on December 31, 2020. The financial information for Lionbridge AI is preliminary and has been derived from financial information provided by the seller of Lionbridge AI under a transition services agreement. Additionally, the preliminary financial information for Lionbridge AI provided by the seller reflects shared cost allocations attributed to Lionbridge AI by the seller that may not be reflective of actual costs for Lionbridge AI as part of TELUS International. The pro forma supplemental information is based on estimates and assumptions that are believed to be reasonable. The pro forma supplemental information is not necessarily indicative of our consolidated financial results in future periods or the actual results that would have been realized had the business acquisitions been completed at the beginning of the periods presented. The pro forma supplemental information includes incremental intangible asset amortization, financing and other charges as a result of the acquisitions, net of the related tax effects. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 14. Leases See Note 2(a) for details of significant changes to IFRS-IASB which have been applied effective January 1, 2019. We have the right-of-use buildings under leases. We use these real estate leases for office purposes. Judgments about lease terms are determinative of the measurement of right-of-use lease assets and their associated lease liabilities. Our judgment of lease terms for leased real estate includes periods covered by options to extend the lease terms, as we are reasonably certain to extend such leases. Maturity analyses of lease liabilities are set out in Note 4(c) and Note 16(d) ; the period interest expense in respect thereof is set out in Note 6 . The additions to, the depreciation charges for, and the carrying amount of, right-of-use lease assets are set out in Note 12 . The payments are set out in Note 20(d). We do not currently have any low-value or short-term leases, however, should they arise, we would not elect the practical expedient of excluding these leases from lease accounting. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions | |
Provisions | 15. Provisions Employee Written put (millions) Note related options Other Total As at January 1, 2019 $ 7.3 $ 202.7 $ 6.5 $ 216.5 Additions 6.7 0.1 10.2 17.0 Use (0.6) (50.1) (5.2) (55.9) Reversal — (12.2) (1.3) (13.5) Additions from acquisition 13(c) — 8.3 0.1 8.4 Interest effect 0.1 (1.8) — (1.7) Foreign currency translation adjustments 7.3 202.7 6.5 216.5 As at December 31, 2019 $ 13.5 $ 147.0 $ 10.3 $ 170.8 Current $ — $ — $ 10.3 $ 10.3 Non-current 13.5 147.0 — 160.5 As at December 31, 2019 $ 13.5 $ 147.0 $ 10.3 $ 170.8 Additions $ 9.3 $ — $ 58.1 $ 67.4 Use (1.8) (75.6) (40.7) (118.1) Reversal (1.0) (73.3) (10.3) (84.6) Interest effect — 1.9 — 1.9 Foreign currency translation adjustments (0.3) — — (0.3) As at December 31, 2020 $ 19.7 $ — $ 17.4 $ 37.1 Current $ — $ — $ 17.4 $ 17.4 Non-current 19.7 — — 19.7 As at December 31, 2020 $ 19.7 $ — $ 17.4 $ 37.1 Employee-related The employee - related provisions are largely in respect of statutory obligations due to staff departures and retirements. The timing of the cash outflows in respect of the balance accrued as at the financial statement date will occur over an indeterminate period. Written put options In connection the acquisitions of Voxpro and Xavient, we established a provision for written put options in respect of non-controlling interests. During the year ended December 31, 2019, we settled the put option to acquire the remaining non-controlling interest in Voxpro Limited, which triggered a $2.2 million gain being recognized in Changes in business combination-related provisions in the consolidated statements of income and other comprehensive income. In addition, there was a $10.0 million reversal of the established provision to acquire the remaining non-controlling interest in Xavient as a result of revaluation of the liability due to a change in the underlying estimates for the provision, which was recorded in Changes in business combination-related provisions in the consolidated statements of income and other comprehensive income. During the year ended December 31, 2020, we settled the option to acquire the remaining non-controlling interest in Xavient , of which $5.0 million is held in escrow, which has been reclassified to accounts payable and accrued liabilities in the consolidated statements of financial position. This resulted in a $73.3 million reversal of the established provision, which is recorded in Changes in business combination-related provisions in the consolidated statements of income and other comprehensive income for the year ended December 31, 2020. Other Upon acquisition of Xavient, we had established a provision for contingent consideration, of which $5.2 million was paid out during the year ended December 31, 2019, triggering a $1.3 million reversal of the established provision, which is recorded in Changes in business combination-related provisions in the consolidated statements of income and other comprehensive income. In addition, during the year ended December 31, 2019, we received $10.0 million cash from an escrow account created in connection with the acquisition of Xavient, to be held in trust and disbursed to fund expenses incurred in connection with a claim made inter alia against Xavient Digital LLC Note 18(b) . As there was material uncertainty surrounding the conclusion of this claim, a provision was established for the $10.0 million received in trust. During the year ended December 31, 2020, the claim was settled (see Note 18 ) and as such, the related provision was reversed in the consolidated statement of financial position. There was no impact to the consolidated statements of income and other comprehensive income as a result of the settlement. Further, during the year ended December 31, 2020, we recorded $25.8 million of restructuring and integration-related costs in connection with our acquisition of CCC and $17.7 million related to our acquisition of Lionbridge AI for legal, transaction support and other fees. Furthermore, we incurred $8.6 million of expenses in support of our response to the COVID-19, which included the accommodation costs for our team members that continued to remain on site for the earlier part of the pandemic, and to transition to remote enablement model. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debt | |
Long-term debt | 16. Long-term debt (a) Details of long-term debt As at December 31 (millions) Note 2020 2019 Credit facility (b) $ 1,568.0 $ 335.5 Deferred debt transaction costs (10.9) (3.7) $ 1,557.1 331.8 Lease liabilities (c) 208.6 188.7 Long-term debt $ 1,765.7 $ 520.5 Current $ 92.3 $ 42.8 Non-current 1,673.4 477.7 Long-term debt $ 1,765.7 $ 520.5 (b) Credit facility 2020 2019 Revolving Term loan Revolving Term loan As at December 31 (millions) component component(1) Total component component(1) Total Available $ 132.0 N/A $ 132.0 $ 121.0 N/A $ 121.0 Outstanding Due to TELUS Corporation $ 65.1 75.0 140.1 — — — Due to Other 652.9 775.0 1,427.9 229.0 106.5 335.5 $ 850.0 $ 850.0 $ 1,700.0 $ 350.0 $ 106.5 $ 456.5 (1) We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on the debt to a fixed rate of 2.64% plus applicable margins (see Note 4(g) - Derivative) . As at December 31, 2020, we had a $1,700.0 million bank credit facility (December 31, 2019 – $456.5 million), secured by our assets, with a syndicate of financial institutions, expiring on January 28, 2025. The credit facility is secured by our assets, with a syndicate of financial institutions and joined in 2020 by TELUS Corporation (as 8.9% lender at an aggregate level). The incremental increase in the credit facility is in connection with the acquisition of Competence Call Center and Lionbridge AI ( Note 13(b) ) and is non-recourse to TELUS Corporation. As at December 31, 2020, excluding amount due to TELUS Corporation, $1,427.9 million was outstanding with a weighted average interest rate of 2.9% (December 31, 2019 – 3.25%). The credit facility bears interest at prime rate, U.S. Dollar Base Rate, a bankers’ acceptance rate or London interbank offered rate (LIBOR) (as such terms are used or defined in the credit facility), plus applicable margins. The credit facility contains customary representations, warranties and covenants, including net debt to EBITDA ratio of 5.25:1.00 for each quarter in 2020 and 2021, with a step down to 4.50:1.00 for each quarter in 2022, and a further step down to 3.75:1.00 for each quarter thereafter, and cash flow to debt service ratio of 1.50:1.00 . If an acquisition with an aggregate cash consideration in excess of $60 million occurs in any twelve-month period, the maximum permitted net debt to EBITDA ratio may be increased to 4.50:1.00 and shall return to 3.75:1.00 after eight fiscal quarters. As at December 31, 2020 and 2019, we were in compliance with all financial covenants, financial ratios and all of the terms and conditions of our long-term debt agreements. The term loan is subject to an amortization schedule requiring that 1.25% of the principal advanced be repaid each quarter throughout the term of the agreement, with the balance due at maturity. As at December 31, 2020 and December 31, 2019, we had liquidity of $132.0 million available under the revolving component of our credit facility (December 31, 2019 - $121.0 million), and nil (December 31, 2019 - $2.2 million) available under local credit facilities in our subsidiaries. In connection with our IPO on February 3, 2021, we received net proceeds of approximately $490.0 million. On February 5, 2021, we used the net proceeds from the offering to repay a portion of the outstanding balance under the revolving component of our credit facility. (c) Lease liabilities See Note 2(a) for details of significant changes to IFRS-IASB which have been applied effective January 1, 2020. Leases are subject to amortization schedules, which results in the principal being repaid over various periods, including reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 6.63% as at December 31, 2020. (d) Long-term debt maturities Anticipated requirements to meet long-term debt repayments, calculated upon such long-term debts owing as at December 31, 2020, are as follows: European Other Composite long-term debt denominated in U.S dollars euros currencies Long-term debt, excluding Years ending December 31 (millions) leases Leases Total Leases Leases Total 2021 $ 42.5 $ 14.9 $ 57.4 $ 13.4 $ 22.1 $ 92.9 2022 267.5 14.4 281.9 11.7 16.1 309.7 2023 30.0 13.1 43.1 7.9 15.7 66.7 2024 30.0 5.4 35.4 5.5 12.5 53.4 2025 1,198.0 4.2 1,202.2 2.9 7.0 1,212.1 Thereafter — 6.2 6.2 20.1 15.5 41.8 Future cash outflows in respect of composite long-term debt principal repayments 1,568.0 58.2 1,626.2 61.5 88.9 1,776.6 Future cash outflows in respect of associated interest and like carrying costs 1 173.9 12.4 186.3 13.0 19.8 219.1 Undiscounted contractual maturities ( Note 4(c) ) $ 1,741.9 $ 70.6 $ 1,812.5 $ 74.5 $ 108.7 $ 1,995.7 (1) Future cash outflows in respect of associated interest and like carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2020. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2020 | |
Share capital | |
Share capital | 17. Share capital In connection with our IPO subsequent to December 31, 2020, our outstanding Class A, Class C and Class D common shares held by TELUS were exchanged for Class B common shares and we redesignated our Class B common shares, which are only held by TELUS and Baring, as multiple voting shares. Each other holder of Class C common shares and Class D common shares exchanged their shares for Class E common shares and we redesignated our Class E common shares as subordinate voting shares. The rights of the holders of our multiple voting shares and subordinate voting shares are substantially identical, except with respect to voting and conversion. The subordinate voting shares will have one vote per share and the multiple voting shares will have 10 votes per share. Subsequent to such redesignations, we also effected a 4.5-for-1 split of each of our outstanding multiple voting shares and subordinate voting shares. A portion of the multiple voting shares held by TELUS and Baring was converted to subordinate voting shares and sold in a concurrent secondary offering with our IPO. In addition, we eliminated all of our previously outstanding series of Class A, Class C and Class D common shares and our authorized Class A and Class B preferred shares. We refer to these share split and share class redesignations and consolidation transactions as the ‘‘Share Class Reclassification Transactions”. In all instances, unless otherwise indicated, the number of shares authorized, the number of shares outstanding, the number of Shares reserved, per share amounts and share-based compensation information in our consolidated financial statements and accompanying notes have been restated to reflect the impact of the share exchanges and redesignations. (a) Authorized share capital Our authorized and issued share capital is as follows: Authorized Issued As at December 31 2020 2019 2018 2020 2019 2018 Preferred Shares Convertible Redeemable Preferred A Shares unlimited unlimited unlimited — — — Convertible Redeemable Preferred B Shares unlimited unlimited unlimited — — — Common Shares Class A unlimited unlimited unlimited 148,421,976 120,762,495 120,762,495 Class B unlimited unlimited unlimited 82,144,186 65,251,305 65,251,305 Class C unlimited unlimited unlimited 4,178,969 418,500 418,500 Class D unlimited unlimited unlimited 3,249,094 3,249,094 3,249,094 Class E unlimited unlimited unlimited 6,520,517 — — Prior to the Share Class Reclassification Transactions, the Convertible Redeemable Preferred A Shares are redeemable at Cdn$10,000 per share and are convertible by us into Class A common shares having the same fair value at the time of conversion. The Convertible Redeemable Preferred B Shares are redeemable at Cdn$1,000 per share and are convertible by us into Class A common shares having the same fair value at the time of conversion. Prior to the share Class Reclassification Transactions, Class A common shares are entitled to 1.0001 vote per Class A common share; Class B common shares are entitled to one vote per Class B common share; Class C common shares are entitled to 1.0002 vote per Class C common share; and Class D and Class E common shares are non-voting. The Class A common shares are convertible, at any time, at the option of the holder and without payment of additional consideration, into Class C common shares on a one-for-one basis. Each class of common shares have an unlimited dividend entitlement without a corresponding dividend on another class of common shares. With respect to priority in the distribution of assets in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the purpose of winding up our affairs, preferences are as follows: · Convertible Redeemable Preferred A Shares in priority to all classes of common shares and on par with the Convertible Redeemable Preferred B Shares; · Convertible Redeemable Preferred B Shares in priority to all classes of common shares and on par with the Convertible Redeemable Preferred A Shares; · Class A common shares, B common shares, C common shares, D common shares and E common shares rank pari-passu. As at December 31, 2020, there were 3,754,066 (December 31, 2019 – 1,678) Class C shares, owned by TELUS Corporation, reserved for issuance for the share option plan ( Note 9(b) ). As at December 31, 2019, TELUS International is holding 487,363 Class D Shares issued to Xavient Information Systems Holdings LLC in escrow ( Notes 15 and 18 ). These were returned to the sellers in connection with the settlement of the litigation in 2020. On February 6, 2018, as part of the close of the Xavient acquisition, 2,436,822 Class D common shares were issued with a fair value of $15.0 million (see Note 13(c) ). Also on February 6, 2018, 4,180,995 Class A common shares, worth $25.7 million, were issued to TELUS Corporation, offsetting an existing intercompany advance, and 2,251,305 Class B common shares were issued to Baring Private Equity Asia for cash proceeds of $13.9 million. The proceeds from this issuance were used to finance the purchase of Xavient. On February 12, 2018, 812,272 Class D common shares were issued to a company controlled by a member of our Senior Leadership Team for cash proceeds totaling $5.0 million. These shares were subsequently repurchased by TELUS on November 29, 2019. On January 29, 2020, in connection with the acquisition of Competence Call Center ( Note 13(c) ), we issued 14,672,610 Class A common shares and 225,000 Class C common shares to our controlling shareholder for $126.1 million and 8,021,790 Class B common shares to non-controlling shareholder, Baring Private Equity Asia, for $67.9 million. The proceeds from these share issuances were used to finance the acquisition of Competence Call Center on January 31, 2020 ( Note 13(c) ). In addition, we issued 6,520,518 Class E common shares to a third party for proceeds of $90.0 million. The per share value paid in connection with the issuances of Class A, B, and C common shares to our controlling shareholder and Baring Private Equity Asia in connection with the Competence Call Center business acquisition of $8.46 per share was less than the per share value of $13.8 per share paid by the new shareholders of Class E common shares. The issuance of Class A, B and C common shares to our controlling shareholder and Baring Private Equity Asia at a per share price that was lower than was paid by the new shareholders of Class E common shares resulted in dilution to the Company’s other shareholders whom collectively own approximately 4% of the Company’s outstanding common shares. The price per share for the Class A, B and C common shares issued to our controlling shareholder and Baring Private Equity Asia was based on an estimate of fair market value as of September 30, 2019 and was lower than what was paid by the new shareholders of Class E common shares. The price per Class E common share paid by the new shareholders was based on arm’s length contractual negotiations. The price per share for the Class A, B and C common shares did not compensate our controlling shareholder or Baring Private Equity Asia for identifying Competence Call Center as an acquisition target, providing a source of financing for the Competence Call Center acquisition or for any consulting or other service. The issuances of Class A, B, and C common shares to our controlling shareholder and Baring Private Equity Asia and the Class E common shares to the new shareholders have been recognized in our consolidated financial statements at their exchange value representing the amounts received in cash for such classes of common shares in connection with the CCC acquisition. Class E common shares are non-voting shares and are subordinated to the Convertible Redeemable Preferred A and B Shares in respect of dividends. Class E common shares rank pari passu with the Class A, B, C and D common shares in respect of dividends and they are also entitled to rank on par with the Class A, B, C and D common shares on a liquidation or dissolution of the Company. On April 1, 2020, we issued 3,535,470 Class C common shares for proceeds of $48.8 million to our controlling shareholder as consideration for a Common control transaction ( Note 13(c) ). We also issued 5,434,780 Class A common shares to our controlling shareholder for proceeds of $75.0 million to finance the buy-out of the non-controlling interest in Xavient Digital in April 2020. Concurrently, we provided Baring Private Equity Asia with an option to purchase up to 4,816,138 Class B common shares at an exercise price of $13.80 per share. Baring has elected to exercise the option for aggregate consideration for $66.5 million. The option was settled on October 19, 2020. On December 29, 2020, in connection with the acquisition of Lionbridge AI ( Note 13(c) ), we issued 7,552,089 Class A common shares to TELUS for $149.6 million in cash and 4,054,954 Class B common shares to Baring Private Equity Asia for $80.4 million in cash to finance the acquisition. The per share value paid in exchange for the issuances of Class A and B common shares to our controlling shareholder and Baring Private Equity Asia, respectively, in connection with the Lionbridge AI acquisition was $19.82 per share based on an estimate of fair market value as of September 30, 2020. The subsequent estimated fair market value of our common shares as of December 31, 2020 was $22.36. The price per share for the Class A and B common shares did not compensate our controlling shareholder or Baring for identifying Lionbridge AI as an acquisition target, providing a source of financing for the acquisition or for any consulting or other service. On February 3, 2021, in connection with our IPO, we issued 20,997,375 subordinate voting shares to new investors at $25.00 per share. After deducting the underwriting discounts and commissions and estimated offering expenses, we received net proceeds of approximately $490.0 million. On February 5, 2021, we used the net proceeds to repay outstanding borrowings under our credit agreement (see Note 16(b) ). Our controlling shareholder TELUS Corporation and non-controlling shareholder Baring Private Equity Asia participated in a secondary offering under which they converted a portion of their holdings of multiple voting shares into subordinate voting shares that were sold to new investors (see also Note 19(a) and 19(b) ). ( b) Per share amounts Basic earnings per share is calculated by dividing net income by the total weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated to give effect to share option awards and restricted share units. The following table presents reconciliations of the denominators of the basic and diluted per share computations. Net income was equal to diluted net income for all periods presented. Years Ended December 31 2020 2019 2018 Basic total weighted average number of common shares outstanding 224,156,034 189,681,394 188,693,316 Effect of dilutive securities - share option awards 1,366,938 629,104 401,897 Diluted total weighted average number of common shares outstanding 225,522,972 190,310,498 189,095,213 |
Contingent liabilities
Contingent liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Contingent liabilities | |
Contingent liabilities | 18. Contingent liabilities (a) Indemnification obligations In the normal course of operations, we provide indemnification in conjunction with certain transactions. The terms of these indemnification obligations range in duration. These indemnifications would require us to compensate the indemnified parties for costs incurred as a result of failure to comply with contractual obligations or litigation claims or statutory sanctions or damages that may be suffered by an indemnified party. In some cases, there is no maximum limit on these indemnification obligations. The overall maximum amount of an indemnification obligation will depend on future events and conditions and therefore cannot be reasonably estimated. Where appropriate, an indemnification obligation is recorded as a liability. Other than obligations recorded as liabilities at the time of such transactions, historically we have not made significant payments under these indemnifications. As at December 31, 2020, and December 31, 2019, we had no liability recorded in respect of indemnification obligations. (b) Claims and lawsuits We are party to various legal proceedings and claims that arise in the ordinary course of business. The ultimate outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, or if any outcome becomes more likely than not and estimable, our results of operations and financial condition could be adversely affected. On December 12, 2018, a claim was filed against Xavient Digital LLC and the prior owners of Xavient by a former customer of Xavient. Defendants counter claimed against plaintiffs. During the year ended December 31, 2020, the parties reached a mutual agreement to resolve all claims in exchange for a payment to plaintiff in the amount of $3.0 million. The settlement payment and all costs and attorneys' fees related to the litigation were protected by indemnity and funds released from escrow (see Note 15 ). In addition, all outstanding invoices for fees and costs related to the litigation were accounted for and paid out of the escrow account. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 19. Related party transactions (a) Transactions with TELUS Corporation General TELUS Corporation produces consolidated financial statements available for public use and is the ultimate parent and controlling party of TELUS International (Cda) Inc. Recurring transactions TELUS Corporation and its subsidiaries receive customer care, integrated business process outsourcing and information technology outsourcing services from us, and provide services (including people, network, finance, communications, and regulatory) to us. Certain of our employees also participate in TELUS Corporation share-based compensation plans. TELUS Corporation charges these amounts to us at cost, net of hedging effects where applicable. We also participate in defined benefit pension plans that share risks between TELUS Corporation and its subsidiaries. 2020 2019 2018 TELUS Subsidiaries TELUS Subsidiaries TELUS Subsidiaries As at, or Year Ended Corporation of TELUS Corporation of TELUS Corporation of TELUS December 31 (millions) (parent) Corporation Total (parent) Corporation Total (parent) Corporation Total Transactions with TELUS Corporation and subsidiaries Revenues from services provided to $ — $ 310.2 $ 310.2 $ — $ 267.7 $ 267.7 $ — $ 203.2 $ 203.2 Goods and services purchased (from) — (29.2) (29.2) — (4.9) (4.9) — (5.4) (5.4) — 281.0 281.0 — 262.8 262.8 — 197.8 197.8 Receipts from related parties (0.2) (283.8) (284.0) (0.2) (251.3) (251.5) — (199.3) (199.3) Payments to related parties 38.0 — 38.0 27.3 — 27.3 19.4 — 19.4 Payments made by related parties on our behalf (13.8) (5.1) (18.9) (26.1) (9.5) (35.6) (15.0) (12.1) (27.1) Issuance of Common A Shares — — — — — — 25.7 — 25.7 Foreign currency adjustments — (2.2) (2.2) 0.1 — 0.1 0.7 (0.3) 0.4 Change in balance 24.0 (10.1) 13.9 1.1 2.0 3.1 30.8 (13.9) 16.9 Accounts with TELUS Corporation and subsidiaries Balance, beginning of year 3.0 1.2 4.2 1.9 (0.8) 1.1 (28.9) 13.1 (15.8) Balance, end of year $ 27.0 $ (8.9) $ 18.1 $ 3.0 $ 1.2 $ 4.2 $ 1.9 $ (0.8) $ 1.1 Accounts with TELUS Corporation and subsidiaries Due from $ 27.0 $ 22.1 $ 49.1 $ 3.0 $ 27.2 $ 30.2 $ 3.1 $ 18.3 $ 21.4 Due to — (31.0) (31.0) — (26.0) (26.0) (1.2) (19.1) (20.3) $ 27.0 $ (8.9) $ 18.1 $ 3.0 $ 1.2 $ 4.2 $ 1.9 $ (0.8) $ 1.1 In the consolidated statement of financial position, amounts due from affiliates and amounts due to affiliates are generally due 30 days from billing and are cash-settled on a gross basis. Subsequent to year end, in January 2021, we renewed our master service agreement with TELUS Corporation, which provides for a term of ten years beginning in January 2021 and a minimum annual spend of $200.0 million, subject to adjustment in accordance with its terms. Other transactions On February 6, 2018, 4,180,995 Class A common shares, with a fair value of $25.7 million, were issued to TELUS Corporation, in connection with the acquisition of Xavient. On January 29, 2020, in connection with the acquisition of Competence Call Center ( Note 13(c) ), we issued 14,672,610 Class A common shares and 225,000 Class C common shares to our controlling shareholder for $126.1 million (Note 17(a)) . The proceeds from these share issuances were used to finance the acquisition. Effective January 31, 2020, TELUS Corporation participates as a lender in the credit facility syndicate (see Note 16(b) ) with a balance of $132.0 million outstanding as at December 31, 2020. On April 1, 2020, we issued 3,535,470 Class C common shares for proceeds of $48.8 million to our controlling shareholder as consideration for the acquisition of MITS, a common control transaction (See Note 13(d)). We also issued 5,434,780 Class A common shares to our controlling shareholder for proceeds of $75.0 million to finance the buy-out of the non-controlling interest in Xavient Digital in April 2020. On December 29, 2020, in connection with the acquisition of Lionbridge AI (Note 13(c)), we issued 7,552,089 Class A common shares to TELUS for $149.6 million ( Note 17(a) ). The proceeds from these share issuances were used to finance the acquisition. On February 3, 2021, in connection with the Company’s IPO, TELUS Corporation converted 6,484,296 of our multiple voting shares to subordinate voting shares that were sold to new investors in a secondary offering. (b) Transactions with Baring Private Equity Asia General Baring Private Equity Asia exercises significant influence on TELUS International (Cda) Inc. Recurring transactions As at, and during the year ended December 31, 2020 and 2019, there were no balances due to or due from, or recurring transactions with, Baring Private Equity Asia. Other transactions On February 6, 2018, 2,251,305 Class B common shares were issued to Baring Private Equity Asia for cash proceeds totaling $13.9 million. On January 29, 2020, in connection with the acquisition of Competence Call Center ( Note 13(c) ), we issued 8,021,790 Class B common shares to Baring Private Equity Asia, for $67.9 million ( Note 17(a) ). The proceeds from these share issuances were used to finance the acquisition. On September 29, 2020 Baring has elected to exercise its option to purchase 4,816,138 Class B common shares for aggregate consideration of $66.5 million. On December 29, 2020, in connection with the acquisition of Lionbridge AI ( Note 13(c) ), we issued 4,054,954 Class B common shares to Baring Private Equity Asia for $80.4 million ( Note 17(a) ). The proceeds from these share issuances were used to finance the acquisition. On February 3, 2021, in connection with the Company’s IPO, Baring Private Equity Asia converted 15,068,329 of our multiple voting shares to subordinate voting shares that were sold to new investors in a secondary offering. (c) Senior Leadership Team Our Senior Leadership Team shares authority and responsibility for overseeing, planning, directing and controlling our activities. Total compensation expense for the Senior Leadership Team, and the composition thereof, is as follows: Years Ended December 31 (millions) 2020 2019 2018 Short‑term benefits $ 3.9 $ 3.2 $ 3.0 Post‑employment pension (1) and other benefits $ 1.0 $ 0.6 $ 0.5 Share‑based compensation $ 5.1 $ 6.0 $ 3.8 (1) Some of our Senior Leadership Team members are members of our Pension Plan for Management and Professional Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit pension plans. As disclosed in Note 9 , we made initial awards of share-based compensation in 2020, 2019 and 2018, including, as set out below, to our Senior Leadership Team. As most of these awards are graded-vesting and have multi-year requisite service periods, the related expense will be recognized ratably over a period of years and thus only a portion of the initial awards is included in the amounts in the table above. · In 2020, there were no awards of TELUS phantom restricted share units and TELUS International Phantom restricted share units. There were also no awards of equity and cash-settled options granted during the year. · In 2019, we awarded 83,818 TELUS phantom restricted share units and 277,020 TELUS International Phantom restricted share units with a grant-date-fair-value of $21.38 and $8.46, respectively. In 2019, we also granted 460,917 equity and cash-settled options with an exercise price of $8.46. · In 2018, we awarded 65,828 TELUS Phantom restricted share units and 317,938 TELUS International Phantom restricted share units with a grant-date-fair-value of $22.63 and $6.18, respectively. In 2018, we also granted 460,930 equity and cash-settled options with an exercise price of $6.18 Employment agreements with members of the Senior Leadership Team typically provide for severance payments if an executive’s employment is terminated without cause: generally, 18 months of base salary and performance bonus, benefits and accrual of pension service in lieu of notice. In the event of a change in control, Executive Leadership Team members are not entitled to treatment any different than that given to our other employees with respect to non-vested share-based compensation. |
Additional financial informatio
Additional financial information | 12 Months Ended |
Dec. 31, 2020 | |
Additional financial information | |
Additional financial information | 20. Additional financial information (a) Statements of income and other comprehensive income We have two customers which account for more than 10% of our operating revenues for the years ended December 31, 2020, 2019 and 2018. In the years ended December 31, 2020, 2019 and 2018, TELUS Corporation and its affiliates accounted for 20%, 26%, and 24%, respectively, of our operating revenue. One arm’s-length party accounted for approximately 16%, 12%, and 14% of our operating revenues for the years ended December 31, 2020, 2019 and 2018, respectively. (b) Statements of financial position As at December 31 (millions) Note 2020 2019 Accounts receivable Customer accounts receivable 4(b) $ 162.8 $ 109.8 Accrued receivables-customer 125.2 57.0 Allowance for doubtful accounts 4(b) (5.2) (1.8) 282.8 165.0 Accrued receivables-current 20.5 11.6 $ 303.3 $ 176.6 Other long-term assets Accrued receivables-non-current $ 31.7 $ 25.8 Deferred expenses 2.0 1.0 $ 33.7 $ 26.8 Accounts payable and accrued liabilities Accrued liabilities $ 63.9 $ 34.7 Payroll and other employee-related liabilities 102.5 58.3 Restricted share units liability 12.5 9.5 178.9 102.5 Trade accounts payable 18.8 20.3 Other 57.0 29.4 $ 254.7 $ 152.2 (c) Statements of cash flows—operating activities and investing activities Years Ended December 31 (millions) Note 2020 2019 2018 Net change in non-cash operating working capital Accounts receivable $ (29.4) $ (38.0) $ (33.1) Due to and from affiliated companies, net (13.9) (3.1) 8.8 Prepaid expenses 8.4 (4.0) 1.1 Other long-term assets (3.0) (11.1) (0.6) Accounts payable and accrued liabilities 28.8 25.0 3.7 Income and other taxes receivable and payable, net 4.2 0.4 (3.4) Advance billings and customer deposits 2.9 (9.5) 9.6 Provisions 7.8 11.9 — Other long-term liabilities (4.7) 0.2 — $ 1.1 $ (28.2) $ (13.9) Cash payments for capital assets Capital asset additions Capital expenditures Property, plant and equipment 12 $ (89.7) $ (126.2) $ (42.3) Intangible assets 13 (11.4) (4.8) (8.2) (101.1) (131.0) (50.5) Additions arising from leases 12 27.5 68.2 — Change in associated non-cash investing working capital 14.4 10.1 3.0 $ (59.2) $ (52.7) $ (47.5) (d) Changes in liabilities arising from financing activities Statements of cash flows Non-cash changes Redemptions, Foreign (millions) Beginning Issued or repayments or exchange End of Year Ended December 31, 2020 of year received payments movement Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 335.5 $ 1,854.0 $ (621.5) $ — $ — $ 1,568.0 Other — — (138.9) — 138.9 — Lease liabilities 188.7 — (58.6) 12.0 66.5 208.6 Deferred debt transaction costs (3.7) — — — (7.2) (10.9) $ 520.5 $ 1,854.0 $ (819.0) $ 12.0 $ 198.2 $ 1,765.7 Short-term borrowings $ — $ 22.0 $ (22.0) $ — $ — $ — IFRS 16, Non-cash Leases Statements of cash flows changes As transitional Redemptions, (millions) previously amount As Issued or repayments End of Year Ended December 31, 2019 reported (Note 2(a)) adjusted received or payments Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 312.5 $ — $ 312.5 $ 72.0 $ (49.0) $ — $ 335.5 Lease liabilities 0.4 154.3 154.7 — (47.0) 81.0 188.7 Deferred debt transaction costs (4.9) — (4.9) — — 1.2 (3.7) $ 308.0 $ 154.3 $ 462.3 $ 72.0 $ (96.0) $ 82.2 $ 520.5 Short-term borrowings $ — $ — $ — $ 0.6 $ (0.6) $ — $ — Statements of cash flows Non-cash Redemptions, changes (millions) Beginning Issued or repayments or End of Year Ended December 31, 2018 of year received payments Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 275.6 $ 75.0 $ (38.1) $ — $ 312.5 Deferred debt transaction costs (6.1) — (0.5) 1.7 (4.9) Voxpro Limited long‑term debt 0.8 — — (0.4) 0.4 270.3 75.0 (38.6) 1.3 308.0 Short-term borrowings Xavient promissory note $ — $ 10.0 $ (10.0) $ — $ — Additions from acquisition — — (4.6) 4.6 — $ — $ 10.0 $ (14.6) $ 4.6 $ — Intercompany advances Received from TELUS Corporation $ 26.2 $ — $ — $ (26.2) $ — |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment reporting | |
Segment Reporting | 21. Segment reporting Operating segments are components of an entity that engage in business activities from which they earn revenues and incur expenses (including revenues and expenses related to transactions with the other component(s)), the operations of which can be clearly distinguished and for which the operating results are regularly reviewed by a chief operating decision-maker to make resource allocation decisions and to assess performance. The Company’s chief operating decision maker reviews financial information prepared on a consolidated basis for the purposes of making resource allocation decisions and assessing the performance of the overall organization. Based on an evaluation of all facts and circumstances, the Company has determined that it functions as a single operating and reporting segment. (a) Geographical information Years Ended December 31 (millions) 2020 2019 2018 Revenue by geographic area, based on delivery location Philippines $ 286.8 $ 283.5 $ 240.2 Germany 242.0 — — United States 207.7 242.5 165.5 Guatemala 151.7 118.4 71.7 Canada 138.7 16.0 14.9 El Salvador 111.0 91.4 101.1 Bulgaria 104.0 89.5 75.5 Ireland 92.3 94.1 107.5 Spain 81.5 — — India 46.4 42.4 28.1 Romania 43.5 38.7 29.5 Other 76.0 3.1 0.6 $ 1,581.6 $ 1,019.6 $ 834.6 As at December 31 (millions) 2020 2019 Net long-lived assets by geographic area Canada $ 2,796.4 $ 509.6 Philippines 86.5 96.4 El Salvador 79.5 23.0 Ireland 44.0 51.9 Bulgaria 35.8 37.1 United States 24.1 13.4 Guatemala 21.9 46.9 Germany 21.6 — India 19.1 17.8 Other 27.5 13.0 $ 3,156.4 $ 809.1 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | 22. Subsequent events On February 3, 2021, we completed an IPO and began public trading under the symbol TIXT on the Toronto Stock Exchange and the New York Stock Exchange. See subsequent events related to the IPO in Note 4(c) - Financial instruments (liquidity risk), Note 16 – Long-term Debt , Note 17 – Share Capital and Note 19 – Related Party Transactions . |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Basis of presentation | (a) Basis of presentation Our consolidated financial statements are expressed in United States dollars. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS-IASB”). Generally accepted accounting principles require that we disclose the accounting policies we have selected in those instances where we have been obligated to choose from among various generally accepted accounting principle-compliant accounting policies. In certain other instances, including where no selection among policies is allowed, we are also required to disclose how we have applied certain accounting policies. In our assessment, all of our required accounting policy disclosures are not equally significant for us, as set out in the accompanying table; their relative significance to us will evolve over time as we do. In addition, in connection with TELUS International (Cda) Inc.'s initial public offering on February 3, 2021 and related 4.5-for-one share subdivision, we have retrospectively adjusted all per share and number of share amounts presented in these consolidated financial statements (see Note 17 ). Accounting policy requiring a more Accounting policy Yes No General application (a) Basis of presentation X (b) Consolidation X (c) Use of estimates and judgments X (d) Financial instruments–recognition and measurement X (e) Hedge accounting X Results of operations focused (f) Revenue recognition X (g) Depreciation, amortization and impairment X (h) Translation of foreign currencies X (i) Income and other taxes X (j) Share-based compensation X (k) Employee future benefit plans X Financial position focused (l) Cash and cash equivalents X (m) Property, plant and equipment; intangible assets X (n) Leases X These consolidated financial statements were authorized by our Board of Directors for issue on February 22, 2021. |
Consolidation | (b) Consolidation Our consolidated financial statements include our accounts and the accounts of all of our subsidiaries. The principal ones are: TELUS International (U.S.) Corp.; CallPoint New Europe EAD; CallPoint New Europe S.R.L.; Transactel International Services Limited; Transactel S.A.; Transactel El Salvador S.A. DE C.V.; TELUS International Philippines Inc.; Voxpro Limited; Xavient Digital LLC; TELUS International Germany GmbH; and LBT Intermediate Holdings, Inc. Our financing arrangements and those of our subsidiaries do not impose restrictions on inter-corporate dividends, but external dividends are restricted based upon total net debt to earnings before interest, income taxes, depreciation and amortization (“EBITDA”) ratios, all as defined by our financing arrangements. On a continuing basis, we review our corporate organization and effect changes as appropriate so as to enhance the value of TELUS International (Cda) Inc. This process can, and does, affect which of our subsidiaries are considered principal subsidiaries at any particular point in time. |
Use of estimates and judgments | (c) Use of estimates and judgments The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates (including about the future effects of the COVID-19 pandemic), assumptions and judgments that affect: the reported amounts of assets and liabilities at the date of the financial statements; the disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates Examples of the significant estimates and assumptions that we make and their relative significance and degree of difficulty are as follows: Judgments Examples of our significant judgments, apart from those involving estimation, include the following: · Assessments about whether line items are sufficiently material to warrant separate presentation in the primary financial statements and, if not, whether they are sufficiently material to warrant separate presentation in the financial statement notes. In the normal course, we make changes to our assessments regarding presentation materiality so that they reflect current economic conditions. Due consideration is given to the view that it is reasonable to expect differing opinions of what is, and is not, material. · In respect of revenue-generating transactions, generally we must make judgments that affect the timing of the recognition of revenue as it relates to assessing when we have satisfied our performance obligations to our customers, either at a point in time or over a period of time. · The preparation of our financial statements in accordance with generally accepted accounting principles requires management to make judgments that affect the financial statement disclosure of information regularly reviewed by our chief operating decision maker used to make resource allocation decisions and to assess performance, as further discussed in Note 21 . A significant judgment we make is that our cash flows are sufficiently indistinguishable given our global operating model, resulting in a single operating and reporting segment. · Determination of the functional currency of each subsidiary involves significant judgment. The determination of functional currency affects the carrying value of non-current assets included in the statement of financial position and, as a consequence, the amortization of those assets, as well as the exchange gains and losses recorded in the consolidated statement of comprehensive income and the consolidated statement of equity. · The decision to depreciate and amortize any property, plant, equipment and intangible assets that are subject to amortization on a straight-line basis, as we believe that this method reflects the consumption of resources related to the economic lifespan of those assets better than an accelerated method and is more representative of the economic substance of the underlying use of those assets. · In connection with the annual impairment testing of goodwill, there are instances where we must exercise judgment in the determination of our cash generating unit. A significant judgment that we make is that each geographic area in which we operate is insufficiently distinct, making it impractical to objectively distinguish the cash flows of each region. As such, each region is not an individual cash generating unit. · In respect of claims and lawsuits, as discussed further in Note 18(b) , the determination of whether an item is a contingent liability or whether an outflow of resources is probable and thus needs to be accounted for as a provision. |
Financial instruments - recognition and measurement | (d) Financial instruments—recognition and measurement In respect of the recognition and measurement of financial instruments, we have adopted the following policies: · Derivatives that are part of an established and documented cash flow hedging relationship are accounted for as held for hedging. We believe that classification as held for hedging results in a better matching of the change in the fair value of the derivative financial instrument with the risk exposure being hedged. · Derivatives that are not part of a documented cash flow hedging relationship are accounted for as held for trading and thus are measured at fair value through net income. · Transaction costs, other than in respect of items held for trading, are added to the initial fair value of the acquired financial asset or financial liability. We have selected this method as we believe that it results in a better matching of the transaction costs with the periods in which we benefit from the transaction costs. |
Hedge accounting | (e) Hedge accounting Hedge accounting The purpose of hedge accounting, in respect of our designated hedging relationships, is to ensure that counterbalancing gains and losses are recognized in the same periods. We have chosen to apply hedge accounting as we believe that it is more representative of the economic substance of the underlying transactions. In order to apply hedge accounting, a high correlation (which indicates effectiveness) is required in the offsetting changes in the risk-associated values of the financial instruments (the hedging items) used to establish the designated hedging relationships and all, or a part, of the asset, liability or transaction having an identified risk exposure that we have taken steps to modify (the hedged items). We assess the anticipated effectiveness of designated hedging relationships at inception and their actual effectiveness for each reporting period thereafter. We consider a designated hedging relationship to be effective if the following critical terms match between the hedging item and the hedged item: the notional amount of the hedging item and the principal amount of the hedged item; maturity dates; payment dates; and interest rate index (if, and as, applicable). Any ineffectiveness, such as would result from a difference between the notional amount of the hedging item and the principal amount of the hedged item, or from a previously effective designated hedging relationship becoming ineffective, is reflected in the consolidated statements of income and other comprehensive income as Interest expense if in respect of long-term debt, as Goods and services purchased if in respect of future purchase commitments, or as Employee benefits expense if in respect of share-based compensation. Hedging assets and liabilities In the application of hedge accounting, an amount (the hedge value) is recorded in the consolidated statement of financial position in respect of the fair value of the hedging items. The net difference, if any, between the amounts recognized in the determination of net income and the amounts necessary to reflect the fair value of the designated cash flow hedging items recorded in the consolidated statement of financial position is recognized as a component of Other comprehensive income, as set out in Note 8 . In the application of hedge accounting to the finance costs arising from interest paid on our long-term debt, the amount recognized in the determination of net income is the amount that counterbalances the difference between interest calculated at a variable interest rate, and the fixed interest rate as per our credit facility ( Note 16(b) ). |
Revenue recognition | (f) Revenue recognition General Our solutions involve delivery of multiple services and products that occur at different points in time and/or over different periods of time. As appropriate, these arrangements contain multiple performance obligations and the transaction price is measured and allocated among the performance obligations based upon their relative stand-alone selling price. Our relevant revenue recognition policies are then applied to the performance obligations. Multiple contracts with a single customer are normally accounted for as separate arrangements. In instances where multiple contracts are entered into with a customer in a short period of time, the contracts are reviewed as a group to ensure that, as with multiple performance obligation arrangements, their relative stand-alone selling prices are appropriate. Our revenues are recorded net of any value-added and/or sales taxes billed to the customer concurrent with a revenue-generating transaction. When we receive no identifiable, separable benefit for consideration given to a customer ( e.g. discounts and rebates), the consideration is recorded as a reduction of revenue rather than as an expense. We recognize revenues for each accounting period based on services provided in that period. Revenue is recognized based on fees incurred per-productive hour or per transaction. Billings are invoiced to customers on a regular basis. Advance billings are recorded when billing occurs prior to provision of the associated services; such advance billings are recognized as revenue in the period in which the services are provided. |
Depreciation, amortization and impairment | (g) Depreciation, Amortization and Impairment Depreciation and amortization Property, plant, and equipment, including right of use assets, are depreciated on a straight-line basis over their estimated useful lives as determined by a continuing program of asset life studies. Depreciation includes amortization of right-of-use lease assets and amortization of leasehold improvements. Leasehold improvements are normally amortized over the lesser of their expected average service life or the term of the lease. Intangible assets with finite lives (intangible assets subject to amortization) are amortized on a straight-line basis over their estimated useful lives, which are reviewed at least annually and adjusted as appropriate. As referred to in (c) , the use of a straight-line basis of depreciation and amortization is a significant judgment for us. Estimated useful lives for the majority of our property, plant and equipment and right of use lease assets subject to depreciation are as follows: Estimated useful lives Computer hardware and network assets 2 to 10 years Buildings and leasehold improvements 5 to 20 years Furniture and equipment 3 to 7 years Right-of-use lease assets 3 to 20 years Estimated useful lives for the majority of our intangible assets subject to amortization are as follows: Estimated useful lives Customer contracts and related customer relationships 4 to 15 years Software 3 to 7 years Brand 3 years Standard operating procedures 5 years Crowdsource assets 8 years Impairment—general Impairment testing compares the carrying values of the assets or cash generating units being tested with their recoverable amounts (the recoverable amount being the greater of an asset’s value in use or its fair value less costs to sell); as referred to in (c) , this is a significant estimate for us. Impairment losses are immediately recognized, to the extent that the carrying value of an asset exceeds its recoverable amount. Should the recoverable amounts for impaired assets subsequently increase, the impairment losses previously recognized (other than in respect of goodwill) may be reversed to the extent that the reversal is not a result of “unwinding the discount” and that the resulting carrying values do not exceed the carrying values that would have been the result if no impairment losses had been previously recognized. Impairment—property, plant and equipment; intangible assets subject to amortization The continuing program of asset life studies considers such items as the timing of technological obsolescence, competitive pressures and future infrastructure utilization plans; these considerations could also indicate that the carrying value of an asset may not be recoverable. If the carrying value of an asset were not considered recoverable, an impairment loss would be recorded. Impairment—goodwill The carrying value of goodwill is periodically tested for impairment. The frequency of the impairment testing is generally the reciprocal of the stability of the relevant events and circumstances, but goodwill must, at a minimum, be tested annually; we have selected October 1 as our annual test date. We assess our goodwill by comparing the recoverable amounts of our business to its carrying value. To the extent that the carrying value exceeds its recoverable amount, the excess amount would be recorded as a reduction in the carrying value of goodwill and any remainder would be recorded as a reduction in the carrying value of the assets on a pro-rated basis. |
Translation of foreign currencies | (h) Translation of foreign currencies Trade transactions completed in foreign currencies are translated into United States dollars at the rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into United States dollars at the rate of exchange in effect at the statement of financial position date, with any resulting gain or loss recorded in the consolidated statement of income and other comprehensive income as a component of Interest expense and foreign exchange, as set out in Note 6 . We have foreign subsidiaries that do not have the United States dollar as their functional currency. Foreign exchange gains and losses arising from the translation of these foreign subsidiaries’ accounts into United States dollars are reported as a component of other comprehensive income, as set out in Note 8 . |
Income and other taxes | (i) Income and other taxes We follow the liability method of accounting for income taxes; as referred to in (c) , this is a significant estimate for us. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Deferred income tax assets and liabilities are recognized for temporary differences between the tax and accounting bases of assets and liabilities, and also for the benefit of losses available to be carried forward to future years for tax purposes that are more likely than not to be realized. The amounts recognized in respect of deferred income tax assets and liabilities are based upon the expected timing of the reversal of temporary differences or usage of tax losses and application of the substantively enacted tax rates at the time of reversal or usage. We account for any changes in substantively enacted income tax rates affecting deferred income tax assets and liabilities in full in the period in which the changes are substantively enacted. We account for changes in the estimates of tax balances for prior years as estimate revisions in the period in which the changes in estimates arise; we have selected this approach as its emphasis on the statement of financial position is more consistent with the liability method of accounting for income taxes. Our operations are complex and the related domestic and foreign tax interpretations, regulations, legislation and jurisprudence are continually changing. As a result, there are usually some tax matters in question that result in uncertain tax positions. We recognize the income tax benefit of an uncertain tax position when it is more likely than not that the ultimate determination of the tax treatment of the position will result in that benefit being realized; however, this does not mean that tax authorities cannot challenge these positions. We accrue an amount for interest charges on current tax liabilities that have not been funded, which would include interest and penalties arising from uncertain tax positions. We include such charges in the consolidated statement of income and other comprehensive income as a component of income tax expense. |
Share-based compensation | (j) Share-based compensation General Share-based compensation awards, in the form of phantom restricted share units, equity share options and phantom share options, have historically been provided to certain of our employees. We recognize a compensation expense in respect of these plans that is based on the fair value of the awards. Generally, the compensation expense of the award is recognized on a straight-line basis over the vesting of the award subject to continued service with us through the vesting date. A compensation expense is recognized for awards containing performance conditions only to the extent that it is probable that those performance conditions will be met. Adjustments are made to reflect expected and actual forfeitures during the vesting period due to failure to satisfy service conditions or performance conditions. Subsequent to the Share Class Reclassification Transactions (see Note 17 ), we have two classes of shares outstanding: multiple voting shares and subordinate voting shares (collectively “Shares”). Common shares issued for equity-settled awards are subordinate voting shares. Restricted share units Restricted share units are accounted for as liability instruments. We accrue a liability equal to the product of the number of vesting restricted share units multiplied by the fair market value of the corresponding common shares at the end of the reporting period. As the Company’s common shares were not publicly traded as at December 31, 2020, we estimated the fair value of our common shares, as discussed in “Share Valuations” below. The expense for restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect. Share option awards We recognize and measure compensation expense for equity-settled share option awards based on the grant date fair value, which is determined using the Black-Scholes option pricing model. Fair value is not subsequently re-measured unless the conditions on which the award was granted are modified. Proceeds arising from the exercise of equity-settled share option awards are credited to share capital, as are the recognized grant-date fair values of the exercised share option awards. Phantom share option awards, which are cash-settled, are accounted for as liability instruments. We recognize and measure compensation expense for cash-settled option awards based on the fair value at the end of each reporting period, which is determined using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of assumptions, some of which are highly subjective, including the fair value of the underlying common shares, the expected volatility of the price of our common shares, risk-free interest rates, the expected term of the option and the expected dividend yield of our shares. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our share-based compensation expense could be materially different in the future. · Fair Value of Our Shares. As the Company’s common shares were not publicly traded prior to our initial public offering (“IPO”) on February 3, 2021, we estimated the fair value of our common shares, as discussed in “Share valuations” below. After our IPO (see Note 17 ), fair value is determined based on quoted prices on a recognized stock exchange. · Expected Volatility. As we had not been a public company and did not have a trading history for our subordinate voting shares prior to our IPO, the expected share price volatility for our common shares was estimated by taking the average historical price volatility for industry peers observed over a period equivalent to the expected term of the share option grants. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to us, in which case more suitable companies whose share prices are publicly available would be used in the calculation. · Risk-free Interest Rate. The risk-free interest rate is based on the yields of Government of Canada marketable bonds with maturities similar to the expected term of the options for each option group. · Expected Term. The expected term represents the period that our share-based awards are expected to be outstanding. As we do not have sufficient historical experience for determining the expected term of the share option awards granted, we base our expected term for awards issued on the simplified method, which represents the average period from vesting to the expiration of the share option. · Expected Dividend Yield. We have never declared or paid any cash dividends to shareholders and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero. Share valuations Given the absence of a public trading market for our common shares prior to our IPO, the fair value of our common shares were historically determined based on third-party valuations, based on information provided by management as well as external market and competitor information available to the experts. The valuation considered numerous objective and subjective factors to determine the best estimate of the fair value of our common shares at each grant date. These factors include: · our operating and financial performance; · current business conditions and projections; · the likelihood of achieving a liquidity event for the common shares underlying these share options, such as an initial public offering or sale of our company, given prevailing market conditions; and · the market performance of comparable publicly traded companies. The valuation is developed using a weighted blend of the income and market approaches. The income approach estimates the fair value of a company based on the present value of such company’s future estimated cash flows and the residual value of such company beyond the forecast period. These future values are discounted to their present values to reflect the risks inherent in such company achieving these estimated cash flows. Significant inputs of the income approach (in addition to our estimated future cash flows themselves) include the long-term growth rate assumed in the residual value, discount rate and normalized long-term operating margin. The terminal value was calculated to estimate our value beyond the forecast period by applying valuation metrics to the final year of our forecasted revenue and discounting that value to the present value using the same weighted average cost of capital applied to the forecasted periods. |
Employee future benefit plans | (k) Employee future benefit plans Defined benefit plans We participate in defined benefit pension plans that share risks between TELUS Corporation and its subsidiaries as well as unfunded, non-contributory retirement plans of TELUS International (Cda) Inc. and its subsidiaries. TELUS Corporation’s policy is to charge us our participant-based net defined benefit pension cost, as measured in accordance with IAS 19 , Employee Benefits . Employee benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. For defined benefit plans, the cost of pensions and other retirement benefits earned by employees is actuarially determined using the accrued benefit method pro-rated on service and management’s best estimates of salary escalation and the retirement ages of employees. In the determination of net income, net interest for each plan, which is the product of the plan’s surplus (deficit) multiplied by the discount rate, is included as a component of Interest expense and foreign exchange, as set out in Note 6 . The Company records annual amounts relating to its defined benefit plan based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, compensation increase and turnover rates. When the defined benefit plan’s key assumptions fluctuate relative to their immediately preceding year-end values, actuarial gains (losses) arising from such significant fluctuations are recognized in other comprehensive income. |
Cash and cash equivalents | (l) Cash and cash equivalents Cash and cash equivalents includes short-term investments in money market funds and other highly liquid, low-risk instruments with maturities of less than three months. Cash and cash equivalents are presented net of outstanding items, including cheques written but not cleared by the related banks as at the statement of financial position date. Cash and cash equivalents are classified as a liability in the statement of financial position when the total amount of all cheques written but not cleared by the related banks exceeds the amount of cash and cash equivalents. When cash and cash equivalents are classified as a liability, they may also include overdraft amounts drawn on our bilateral bank facilities, which revolve daily. |
Property, plant and equipment; intangible assets | (m) Property, plant and equipment; intangible assets General Property, plant and equipment and intangible assets are recorded at historical cost, which for self-constructed property, plant and equipment includes materials, direct labour and applicable overhead costs. For internally developed internal-use software, the historical cost recorded includes materials, direct labour and direct labour-related costs. Where property, plant and equipment construction projects are of a sufficient size and duration, an amount is capitalized for the cost of funds used to finance construction. The rate for calculating the capitalized financing cost is based on our weighted average cost of borrowing experienced during the reporting period. When we sell property, plant and/or equipment, the net book value is netted against the sale proceeds and the difference is included in the consolidated statement of income and other comprehensive income as operating income. |
Leases | (n) Leases Prior to January 1, 2019, leases were classified as finance or operating, depending upon terms and conditions of the contract. Where we were the lessee, asset values recorded under finance leases were amortized on a straight-line basis over the period of expected use. Obligations recorded under finance leases were reduced by lease payments net of imputed interest. On January 1, 2019, we adopted IFRS 16, Leases which superseded IAS 17, Leases ( Note 2(a) ). We assess whether a contract is, or contains, a lease under the new standards. Any identified leases are recorded as right-of-use assets and included in property, plant and equipment, net on our statement of financial position ( Note 12 ). |
Business combinations | (o) Business combinations We use the acquisition method to account for business combinations, under which we allocate the excess of the purchase price of business acquisitions over the fair value of identifiable net assets acquired to goodwill. The purchase price is determined as the fair value of assets transferred, liabilities assumed, or equity instruments issued on the date of exchange, which may include contingent considerations that are initially measured at fair value at the acquisition date. Subsequent changes to the fair value of any contingent considerations are recognized through profit or loss. Acquisition-related costs are expensed as incurred. One of the most significant estimates relate to the allocation of the total consideration to each of the assets and liabilities acquired. For intangible assets acquired, the fair value is generally derived from a valuation analysis prepared by management or third-party experts as needed, based on appropriate valuation techniques using a forecast of the total expected future net cash flows and closely linked to the assumptions made by management regarding the future performance of the assets concerned and the discount rate applied. Where other markets or market participants are readily observable, these are considered in the determination of fair value. If the fair values of the assets, liabilities and contingent liabilities can only be calculated on a provisional basis, the business combination is recognized initially using provisional values. Any adjustments resulting from the completion of the measurement process are recognized within twelve months of the date of acquisition. Business transfers from related parties are accounted for as common control transactions using the predecessor accounting method wherein no assets or liabilities acquired are restated to their fair values and the results of operations include the transferred businesses’ results only from the date of our acquisition of them. No goodwill is recognized on such transactions, and any excess purchase price is recorded as an adjustment to owners' equity. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Disclosure of accounting policies requiring a more significant choice among policies and/or a more significant application of judgment | Accounting policy requiring a more Accounting policy Yes No General application (a) Basis of presentation X (b) Consolidation X (c) Use of estimates and judgments X (d) Financial instruments–recognition and measurement X (e) Hedge accounting X Results of operations focused (f) Revenue recognition X (g) Depreciation, amortization and impairment X (h) Translation of foreign currencies X (i) Income and other taxes X (j) Share-based compensation X (k) Employee future benefit plans X Financial position focused (l) Cash and cash equivalents X (m) Property, plant and equipment; intangible assets X (n) Leases X |
Schedule of useful lives of property, plant, and equipment, right-of-use lease assets and intangible assets | Estimated useful lives for the majority of our property, plant and equipment and right of use lease assets subject to depreciation are as follows: Estimated useful lives Computer hardware and network assets 2 to 10 years Buildings and leasehold improvements 5 to 20 years Furniture and equipment 3 to 7 years Right-of-use lease assets 3 to 20 years Estimated useful lives for the majority of our intangible assets subject to amortization are as follows: Estimated useful lives Customer contracts and related customer relationships 4 to 15 years Software 3 to 7 years Brand 3 years Standard operating procedures 5 years Crowdsource assets 8 years |
Accounting policy developments
Accounting policy developments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting policy developments | |
Disclosure of Impact of IFRS 16 Application on Consolidated Statements of Financial Position [Table Text Block] | IFRS 16, Leases , has the following impact on the fiscal 2019 opening amounts: Excluding effects of As reported As at January 1, 2019 (millions) IFRS 16 IFRS 16 effects under IFRS 16 Non‑current assets Property, plant and equipment, net $ $ $ Deferred income taxes $ 2.6 $ 1.3 $ 3.9 Current liabilities Current maturities of long‑term debt $ 6.0 $ 26.7 $ 32.7 Non‑current liabilities Long‑term debt $ 302.0 $ 127.6 $ 429.6 Owners’ equity Retained earnings $ (108.3) $ (14.7) $ (123.0) Accumulated other comprehensive income $ 21.2 $ 0.1 $ 21.3 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Schedule of financial instruments, and the nature of certain risks to which they may be subject | Risks Accounting Market risks Financial instrument classification Credit Liquidity Currency Interest rate Other price Measured at amortized cost Accounts receivable AC(1) X X Due from/to affiliated companies AC(1) X X Accounts payable and accrued liabilities AC(1) X X Provisions (including restructuring) AC(1) X X X Long-term debt AC(1) X X Measured at fair value Cash and cash equivalents FVTPL(2) X X X Foreign exchange derivatives(3) FVTPL/FVOCI(2) X X X Interest rate derivatives(3) FVTPL/FVOCI(2) X X X X (1) For accounting recognition and measurement purposes, classified as amortized cost (“AC”). (2) For accounting recognition and measurement purposes, classified as fair value through net income (“FVTPL”). Unrealized changes in the fair values of financial instruments are included in net income unless the instrument is part of a cash flow hedging relationship. The effective portion of unrealized changes in the fair values of financial instruments held for hedging are included in other comprehensive income (“FVOCI”). (3) Use of derivative financial instruments is subject to a policy which requires that no derivative transaction is to be entered into for the purpose of establishing a speculative or leveraged position (the corollary being that all derivative transactions are to be entered into for risk management purposes only) and sets criteria for the credit worthiness of the transaction counterparties. |
Schedule of maximum exposure (excluding income tax effects) to credit risk | As at December 31 (millions) 2020 2019 Cash and cash equivalents $ 152.5 $ 79.5 Accounts receivable 303.3 176.6 Due from affiliated companies 49.1 30.2 Derivative assets 1.8 3.3 $ 506.7 $ 289.6 |
Analysis of the age of customer accounts receivable | As at December 31 (millions) Note 2020 2019 Customer accounts receivable Less than 30 days past billing date $ 121.3 $ 97.4 30 - 60 days past billing date 27.5 3.0 61 - 90 days past billing date 7.2 2.3 More than 90 days past billing date 1.6 5.3 $ 157.6 $ 108.0 Customer accounts receivable 20(b) $ 162.8 $ 109.8 Allowance for doubtful accounts 20(b) (5.2) (1.8) Customer receivable, Net $ 157.6 $ 108.0 |
Summary of activity related to the allowance for doubtful accounts | Years Ended December 31 (millions) 2020 2019 Balance, beginning of year $ 1.8 $ 2.9 Additions 6.5 0.6 Recovery (3.1) (1.7) Balance, end of year $ 5.2 $ 1.8 |
Schedule of contractual maturities of undiscounted financial liabilities, Non-derivative | Non-derivative Derivative Currency swap agreement Non-interest Due to Composite long-term debt amounts to be exchanged bearing affiliated Long-term Interest financial companies debt, excluding Leases rate swap Year (millions) liabilities (Note 19(a)) leases (1) (Note 16) (Notes 2(a), 14) (Receive) Pay agreement Total 2021 $ 380.7 $ 31.0 $ 87.4 $ 62.6 $ (95.4) $ 93.1 $ 2.5 $ 561.9 2022 398.2 — 307.9 51.5 (25.6) 25.1 2.3 759.4 2023 — — 66.0 43.6 (25.3) 25.0 — 109.3 2024 — — 65.2 28.4 (25.0) 24.8 — 93.4 2025 — — 1,215.4 17.9 (318.6) 365.5 — 1,280.2 Thereafter — — — 49.8 — — — 49.8 Total $ 778.9 $ 31.0 $ 1,741.9 $ 253.8 $ (489.9) $ 533.5 $ 4.8 $ 2,854.0 Total (Note 16(d)) $ 1,995.7 (1) Future cash outflows in respect of associated interest and like carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2020. |
Schedule of contractual maturities of undiscounted financial liabilities, Derivative | Non-derivative Derivative Currency swap agreement Non-interest Due to Composite long-term debt amounts to be exchanged bearing affiliated Long-term Interest financial companies debt, excluding Leases rate swap Year (millions) liabilities (Note 19(a)) leases (1) (Note 16) (Notes 2(a), 14) (Receive) Pay agreement Total 2021 $ 380.7 $ 31.0 $ 87.4 $ 62.6 $ (95.4) $ 93.1 $ 2.5 $ 561.9 2022 398.2 — 307.9 51.5 (25.6) 25.1 2.3 759.4 2023 — — 66.0 43.6 (25.3) 25.0 — 109.3 2024 — — 65.2 28.4 (25.0) 24.8 — 93.4 2025 — — 1,215.4 17.9 (318.6) 365.5 — 1,280.2 Thereafter — — — 49.8 — — — 49.8 Total $ 778.9 $ 31.0 $ 1,741.9 $ 253.8 $ (489.9) $ 533.5 $ 4.8 $ 2,854.0 Total (Note 16(d)) $ 1,995.7 (1) Future cash outflows in respect of associated interest and like carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2020. |
Sensitivity analysis of exposure to market risks | Years Ended December 31 Net income Other comprehensive income Comprehensive income (increase (decrease) in millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Reasonably possible changes in market risks(1) 10% change in US$: Cdn.$ exchange rate US$ appreciates $ (2.4) $ (0.4) $ (0.1) $ — $ — $ — $ (2.4) $ (0.4) $ (0.1) US$ depreciates $ 2.4 $ 0.4 $ 0.1 $ — $ — $ — $ 2.4 $ 0.4 $ 0.1 10% change in US$: Euro exchange rate US$ appreciates $ — $ 2.7 $ (1.8) $ 10.1 $ — $ 7.1 $ 10.1 $ (2.7) $ 5.3 US$ depreciates $ — $ (2.7) $ 1.8 $ (10.1) $ — $ (7.1) $ (10.1) $ 2.7 $ (5.3) 10% change in US$: Peso exchange rate US$ appreciates $ (0.9) $ (0.3) $ 1.6 $ — $ — $ — $ (0.9) $ (0.3) $ 1.6 US$ depreciates $ 0.9 $ 0.3 $ (1.6) $ — $ — $ — $ 0.9 $ 0.3 $ (1.6) 25 basis point change in market interest rate Rate increases $ (3.9) $ (0.8) $ (0.8) $ 0.5 $ 0.7 $ 1.0 $ (3.4) $ (0.1) $ 0.2 Rate decreases $ 3.9 $ 0.8 $ 0.8 $ (0.5) $ (0.7) $ (1.0) $ 3.4 $ 0.1 $ (0.2) 25%(2) change in common share price(3) Price increases $ (3.9) $ (2.4) $ (2.6) $ — $ — $ — $ (3.9) $ (2.4) $ (2.6) Price decreases $ 3.9 $ 2.4 $ 2.6 $ — $ — $ — 3.9 $ 2.4 $ 2.6 (1) These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. The sensitivity analysis assumes that we would realize the changes in exchange rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption. No consideration has been made for a difference in the notional number of common shares associated with share-based compensation awards made during the reporting period that may have arisen due to a difference in the common share price. (2) To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used. (3) The hypothetical effects of changes in the price of our common shares and those of TELUS Corporation are restricted to those which would arise from our share-based compensation awards that are accounted for as liability instruments. |
Schedule of derivative financial instruments measured at fair value on a recurring basis | 2020 2019 Maximum Notional Fair value and Price or Maximum Notional Fair value and Price or As at December 31 (millions) Designation maturity date amount carrying value rate maturity date amount carrying value rate Current assets (1) Derivatives used to manage Currency risks arising from Philippine peso denominated purchases HFT(2) 2021 $ 68.0 $ 1.8 US$:1.00 PHP: 48.23 2020 $ 28.0 $ 0.8 US$:1.00 PHP: 52.16 Currency risks arising from net investment in foreign operation HFH(3) — $ — $ — — 2020 $ 363.2 $ 2.5 US$:1.00 EUR: 0.89 Current liabilities (1) Derivatives used to manage European euro denominated business acquisition HFH(3) 2025 $ 1.6 $ 1.1 US$:1.00 EUR: 0.85 — $ — $ — — Non-current liabilities (1) Derivatives used to manage Currency risks arising from net investment in foreign operation HFH(3) 2025 $ 402.7 $ 52.4 US$:1.00 EUR: 0.85 2020 $ — $ — — Interest rate risk associated with non-fixed rate credit facility amounts drawn HFH(3) 2022 $ 100.5 $ 4.8 2.64 % 2022 $ 106.5 $ 3.2 2.64 % (1) Notional amounts of derivative financial assets and liabilities are not set off. (2) Foreign currency hedges are designated as held for trading (“HFT”) upon initial recognition; hedge accounting is not applied. (3) Designated as held for hedging (“HFH”) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items. |
Schedule of gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items | Amount of gain (loss) recognized in other Gain (loss) reclassified from other comprehensive comprehensive income income to income (effective portion) (effective portion) Amount Years Ended December 31 (millions) 2020 2019 2018 Location 2020 2019 2018 Derivatives used to manage interest rate risk Associated with non-fixed rate credit facility amounts drawn $ (1.5) $ (2.7) $ (0.9) Interest expense $ 2.1 $ 0.4 $ (0.3) $ (1.5) $ (2.7) $ (0.9) $ 2.1 $ 0.4 $ (0.3) Derivatives used to manage currency risks Arising from Euro-denominated business acquisition $ — $ 2.4 $ — Foreign exchange $ — $ — $ — Arising from net investment in foreign operation $ (49.5) $ — $ — Foreign exchange $ — $ — $ — $ (51.0) $ (0.3) $ (0.9) $ 2.1 $ 0.4 $ (0.3) |
Schedule of gains and losses (excluding income tax effects) arising from derivative instruments classified as held for trading | Gain (Loss) recognized in Years Ended December 31 (millions) Location Note 2020 2019 2018 Derivatives used to manage currency risks Foreign exchange 6 $ 1.0 $ 0.3 $ (0.8) |
Employee benefits expense (Tabl
Employee benefits expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefits expense | |
Schedule of employee benefit expenses | Years Ended December 31 (millions) Note 2020 2019 2018 Employee benefits expense Wages and salaries $ 935.3 $ 609.5 $ 510.1 Benefits 8.1 5.2 2.7 Share-based compensation 9 29.4 13.2 5.8 Pensions-defined contribution 10 3.5 2.2 0.8 Restructuring costs 11 3.2 0.3 3.1 $ 979.5 $ 630.4 $ 522.5 |
Interest expense and foreign _2
Interest expense and foreign exchange (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Interest expense and foreign exchange | |
Schedule of interest expense and foreign exchange | Years Ended December 31 (millions) Note 2020 2019 2018 Interest expense Interest on long-term debt, excluding lease liabilities $ 26.0 $ 13.9 $ 13.4 Interest on lease liabilities 13.9 13.2 — Interest on short-term borrowings and other 3.6 0.8 1.9 Interest accretion on provisions 15 1.9 8.4 7.9 $ 45.4 $ 36.3 $ 23.2 Foreign exchange Derivatives used to manage currency risks 4(h) $ (1.0) $ (0.3) $ 0.8 Foreign exchange (gain) loss (0.5) (2.3) 7.3 $ (1.5) $ (2.6) $ 8.1 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income taxes | |
Expense composition | Years Ended December 31 (millions) 2020 2019 2018 Current income tax expense For current reporting year $ 57.3 $ 25.9 $ 19.8 Adjustments recognized in the current period for income tax of prior periods (9.8) 2.1 1.3 47.5 28.0 21.1 Deferred income tax expense (recovery) Arising from the origination and reversal of temporary differences (2.6) 3.1 (0.1) Adjustments recognized in the current period for income tax of prior periods 2.7 (5.1) 0.9 0.1 (2.0) 0.8 $ 47.6 $ 26.0 $ 21.9 |
Rate reconciliations | Years Ended December 31 (millions) 2020 2019 2018 Income taxes computed at applicable statutory rates $ 36.5 24.2 % $ 26.8 28.2 % $ 20.3 29.4 % Non-tax deductible items 9.6 6.4 1.8 1.9 2.4 3.4 Withholding and other taxes 7.7 5.1 6.8 7.1 5.1 7.3 Foreign tax differential (7.6) (5.0) (16.3) (17.2) (15.3) (22.2) Adjustments recognized in the current period for income tax of prior periods (7.1) (4.7) (3.0) (3.1) 2.2 3.2 Foreign accrual property income 6.0 4.0 9.1 9.5 7.9 11.5 Losses not recognized 3.0 2.0 2.0 2.1 0.7 1.1 Other (0.5) (0.4) (1.2) (1.2) (1.4) (1.9) Income tax expense per consolidated statements of income and other comprehensive income $ 47.6 31.6 % $ 26.0 27.3 % $ 21.9 31.8 % |
Temporary differences | Property, plant and equipment Net pension Debt and Net deferred and intangible and share-based equity Non-capital income tax assets subject compensation issue Provisions loss carried asset (millions) Note to amortization amounts costs and other forward Leases (liability) As at January 1, 2019 $ (42.5) $ 2.0 $ 0.3 $ 39.9 — — $ (0.3) IFRS 16, Leases transitional amount 2(a) — — — — — 1.3 1.3 As Adjusted (42.5) 2.0 0.3 39.9 — 1.3 1.0 Deferred income tax (expense) recovery recognized in Net income 1.0 0.6 (0.4) (1.9) 2.7 — 2.0 As at December 31, 2019 $ (41.5) $ 2.6 $ (0.1) $ 38.0 $ 2.7 $ 1.3 $ 3.0 Acquired during the year and other (365.6) — — 1.0 — 0.9 (363.7) Deferred income tax (expense) recovery recognized in Net income 31.4 3.0 (0.9) (34.1) 0.6 (0.1) (0.1) Other comprehensive income — — — 1.1 — — 1.1 As at December 31, 2020 $ (375.7) $ 5.6 $ (1.0) $ 6.0 $ 3.3 $ 2.1 $ (359.7) Presented on the consolidated statement of financial position as: Deferred income tax asset $ 4.7 Deferred income tax liability (1.7) As at December 31, 2019 $ 3.0 Deferred income tax asset $ 6.5 Deferred income tax liability (366.2) As at December 31, 2020 $ (359.7) |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income | |
Schedule of other comprehensive income | Item never Items that may subsequently be reclassified to reclassified to income income Cumulative Change in foreign Employee Accumulated unrealized fair currency defined benefit other value of translation plan re- comprehensive (millions) derivatives adjustment measurements income Accumulated balance as at January 1, 2018 $ (0.1) $ 31.4 $ — $ 31.3 Other comprehensive income (loss) Amount arising (0.9) (9.9) 0.5 (10.3) Income taxes 0.2 — — 0.2 Net (0.7) (9.9) 0.5 (10.1) Accumulated balance as at December 31, 2018 $ (0.8) $ 21.5 $ 0.5 $ 21.2 Opening balance adjustment for IFRS 16 — 0.1 — 0.1 As adjusted (0.8) 21.6 0.5 21.3 Other comprehensive income (loss) Amount arising 0.1 (3.3) (2.7) (5.9) Net 0.1 (3.3) (2.7) (5.9) Accumulated balance as at December 31, 2019 $ (0.7) $ 18.3 $ (2.2) $ 15.4 Other comprehensive income (loss) Amount arising (51.0) 124.1 (0.2) 72.9 Income taxes 1.1 — — 1.1 Net (49.9) 124.1 (0.2) 74.0 Accumulated balance as at December 31, 2020 $ (50.6) $ 142.4 $ (2.4) $ 89.4 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Phantom restricted share units | |
share-based compensation | |
Summary of the activity related to restricted share units | US$ denominated (1) Canadian $ denominated (1) Number of restricted Number of restricted share units Grant-date share units Grant-date Non-vested Vested fair value Non-vested Vested fair value Outstanding, January 1, 2018 419,260 — $ 5.52 — 145,345 $ 4.75 Granted 356,337 — $ 6.30 — — $ — Forfeited (39,627) — $ 5.75 — — $ — Outstanding, December 31, 2018 735,970 — $ 5.88 — 145,345 $ 4.75 Granted 465,430 — $ 6.18 — — $ — Forfeited (72,472) — $ 5.91 — — $ — Vested (365,760) 365,760 $ 5.52 — — $ — Settled in cash — (365,760) $ 5.52 — (145,345) $ 4.75 Outstanding, December 31, 2019 763,168 — $ 6.23 — — $ — Granted 357,966 — $ 11.11 — — $ — Forfeited (55,836) — $ 6.21 — — $ — Vested (348,435) 348,435 $ 6.30 — — $ — Settled in cash — (348,435) $ 6.30 — — $ — Outstanding, December 31, 2020 716,863 — $ 8.55 — — $ — (1) Note 17 ). |
Phantom performance restricted share units | |
share-based compensation | |
Summary of the activity related to restricted share units | 2020 (1) 2019 (1) 2018 (1) Number of restricted Number of restricted Number of restricted share units share units share units Grant-date Grant-date Grant-date Years Ended December 31 Non-vested Vested fair value Non-vested Vested fair value Non-vested Vested fair value Outstanding, beginning of year 1,338,565 — $ 6.96 1,720,345 — $ 5.61 1,223,887 — $ 5.41 Granted — — $ — 426,433 — $ 8.46 496,458 — $ 6.14 Forfeited (37,826) — $ 8.46 (11,250) — $ 6.18 — — $ — Vested (633,960) 633,960 $ 6.23 (796,963) 796,963 $ 4.87 — — $ — Settled in cash — (633,960) $ 6.23 — (796,963) $ 4.87 — — $ — Outstanding, end of year 666,779 — $ 7.23 1,338,565 — $ 6.96 1,720,345 — $ 5.61 (1) Amounts reflect retrospective application of a 4.5-for-one share subdivision, which occurred in connection with TELUS International (Cda) Inc.’s sale of shares to the public on February 3, 2021 (see Note 17 ). |
TELUS Corporation restricted share units | |
share-based compensation | |
Summary of the activity related to restricted share units | 2020 2019 2018 Phantom TELUS Phantom TELUS Phantom TELUS Corporation restricted Corporation restricted Corporation share units share units restricted Weighted Weighted share units Weighted average average average Years Ended December 31 grant‑date grant‑date grant‑date Canadian $ denominated Non‑vested Vested fair value Non‑vested Vested fair value Non‑vested Vested fair value Outstanding, beginning of year 253,622 — $ 23.78 263,128 — $ 16.45 283,106 — $ 21.84 Granted 13,217 — $ 24.97 94,342 — $ 21.38 83,040 — $ 22.55 Issued in lieu of dividends 10,156 — $ 15.42 9,214 — $ 26.99 — — $ — Vested (113,737) 113,737 $ 25.49 (113,062) 113,062 $ 21.25 (98,048) 98,048 $ 19.84 Settled in cash — (113,737) $ 25.49 — (113,062) $ 21.25 — (98,048) $ 19.84 Forfeited (6,509) — $ 23.59 — — — (4,970) — $ 20.49 Outstanding, end of year 156,749 — $ 24.17 253,622 — $ 23.78 263,128 — $ 16.45 |
TELUS International (Cda) Inc. share options | |
share-based compensation | |
Summary of the activity related to share option awards | US $ denominated Canadian $ denominated Number of share Number of share option units option units Weighted Weighted average average exercise exercise Non-vested Vested price Non-vested Vested price Outstanding, January 1, 2018 1 3,363,543 — $ 6.69 — 242,244 $ 4.75 Granted 500,764 — $ 6.18 — — $ — Outstanding, December 31, 2018 3,864,307 — $ 6.63 — 242,244 $ 4.75 Granted 612,351 — $ 8.46 — — $ — Outstanding, December 31, 2019 4,476,658 — $ 6.91 — 242,244 $ 4.75 Vested (3,822,025) 3,822,025 $ 6.21 — — $ — Exercised — (554,602) $ 6.21 — — $ — Outstanding, December 31, 2020 654,633 3,267,423 $ 6.94 2 — 242,244 $ 4.75 3 Exercisable, December 31, 2020 — 3,267,423 $ 6.58 — 242,244 $ 4.75 (1) Amounts reflect retrospective application of a 4.5-for-one share subdivision, which occurred in connection with TELUS International (Cda) Inc.’s sale of shares to the public on February 3, 2021 (see Note 17 ). (2) For options outstanding at the end of the period, the exercise prices ranged from $3.54 to $8.95. The weighted-average remaining expected life was 6.4 years. (3) For options outstanding at the end of the period, the exercise price is $4.75. The weighted-average remaining expected life was 5.6 years. |
Restructuring and other costs (
Restructuring and other costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and other costs | |
Schedule of restructuring and other costs presented in the Consolidated statements of income and other comprehensive income | Restructuring (b) Other (c) Total Years Ended December 31 (millions) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Goods and services purchased $ — $ 3.0 $ 0.1 $ 55.5 $ 2.8 $ 0.5 $ 55.5 $ 5.8 $ 0.6 Employee benefits expense 3.2 0.3 3.1 — — — 3.2 0.3 3.1 $ 3.2 $ 3.3 $ 3.2 $ 55.5 $ 2.8 $ 0.5 $ 58.7 $ 6.1 $ 3.7 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Right-of-use lease assets Owned Assets ( Note 2a ) Computer Buildings and Furniture hardware and leasehold and Assets under (millions) Note network assets improvements equipment construction Total Buildings Total At cost As at January 1, 2019, adjusted $ 37.2 $ 69.0 $ 106.9 $ 23.0 $ 236.1 $ 138.4 $ 374.5 Additions 0.9 1.8 8.2 47.1 58.0 68.2 126.2 Dispositions retirements and other (15.8) (12.7) 17.8 (4.6) (15.3) (2.3) (17.6) Assets under construction put into service 10.4 19.9 23.1 (53.4) — — — Foreign currency translation adjustments (0.4) (0.2) (0.8) (0.9) (2.3) (1.8) (4.1) As at December 31, 2019 $ 32.3 $ 77.8 $ 155.2 $ 11.2 $ 276.5 $ 202.5 $ 479.0 Additions 1.3 4.6 20.1 36.2 62.2 27.5 89.7 Additions from Acquisition 13(c) 6.3 9.4 23.9 1.9 41.5 35.1 76.6 Dispositions retirements and other (0.4) (7.7) (13.6) (3.0) (24.7) (10.3) (35.0) Assets under construction put into service 6.2 8.9 16.8 (31.9) — — — Foreign currency translation adjustments 0.3 2.1 4.2 0.2 6.8 9.2 16.0 As at December 31, 2020 $ 46.0 $ 95.1 $ 206.6 $ 14.6 $ 362.3 $ 264.0 $ 626.3 Accumulated depreciation As at January 1, 2019 $ 18.9 $ 31.4 $ 70.6 $ — $ 120.9 $ — $ 120.9 Depreciation 6.2 10.0 22.0 — 38.2 34.9 73.1 Dispositions retirements and other (9.2) (13.5) 7.1 — (15.6) (0.3) (15.9) Foreign currency translation adjustments 0.3 (0.1) (0.2) — — (0.1) (0.1) As at December 31, 2019 $ 16.2 $ 27.8 $ 99.5 $ — $ 143.5 $ 34.5 $ 178.0 Depreciation 7.2 12.0 32.5 — 51.7 47.7 99.4 Dispositions retirements and other (0.2) (8.1) (8.3) — (16.6) (0.1) (16.7) Foreign currency translation adjustments — 0.4 1.6 — 2.0 1.5 3.5 As at December 31, 2020 $ 23.2 $ 32.1 $ 125.3 $ — $ 180.6 $ 83.6 $ 264.2 Net Book Value As at December 31, 2019 $ 16.1 $ 50.0 $ 55.7 $ 11.2 $ 133.0 $ 168.0 $ 301.0 As at December 31, 2020 $ 22.8 $ 63.0 $ 81.3 $ 14.6 $ 181.7 $ 180.4 $ 362.1 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill | |
Schedule of Intangible assets and goodwill | Intangible assets subject to amortization Standard Total Assets operating Total intangible Customer under procedures Crowd intangible assets and (millions) Note relationships Software construction Brand and other source assets Goodwill goodwill At cost As at January 1, 2019 $ 108.6 $ 27.3 $ 6.5 $ — $ — $ — $ 142.4 $ 421.2 $ 563.6 Additions — 0.6 4.2 — — — 4.8 — 4.8 Dispositions, retirements, and other (0.1) (1.5) — — — — (1.6) — (1.6) Assets under construction put into service — 7.0 (7.0) — — — — — — Foreign currency translation adjustments (0.5) (0.2) — — — — (0.7) (2.8) (3.5) As at December 31, 2019 $ 108.0 $ 33.2 $ 3.7 — — — $ 144.9 $ 418.4 $ 563.3 Additions — 3.5 7.8 — 0.1 — 11.4 — 11.4 Additions from Acquisition 13(c) 1,057.3 0.9 — 25.3 10.2 120.0 1,213.7 1,017.0 2,230.7 Assets under construction put into service — 5.4 (5.4) — — — — — — Foreign currency translation adjustments 57.4 5.5 1.4 2.8 1.1 — 68.2 64.6 132.8 As at December 31, 2020 $ 1,222.7 $ 48.5 $ 7.5 $ 28.1 $ 11.4 $ 120.0 $ 1,438.2 $ 1,500.0 $ 2,938.2 Accumulated amortization As at January 1, 2019 $ 16.8 $ 20.8 $ — $ — $ — $ — $ 37.6 $ — $ 37.6 Amortization 14.9 4.2 — — — — 19.1 — 19.1 Dispositions, retirements, and other — (1.3) — — — — (1.3) — (1.3) Foreign currency translation adjustments (0.2) — — — — — (0.2) — (0.2) As at December 31, 2019 $ 31.5 $ 23.7 $ — $ — $ — $ — $ 55.2 $ — $ 55.2 Amortization 65.6 7.9 — 6.8 2.5 — 82.8 — 82.8 Foreign currency translation adjustments 5.4 0.1 — 0.3 0.1 — 5.9 — 5.9 As at December 31, 2020 $ 102.5 $ 31.7 $ — $ 7.1 $ 2.6 — $ 143.9 $ — $ 143.9 Net book value As at December 31, 2019 $ 76.5 $ 9.5 $ 3.7 — — — $ 89.7 $ 418.4 $ 508.1 As at December 31, 2020 $ 1,120.2 $ 16.8 $ 7.5 $ 21.0 $ 8.8 $ 120.0 $ 1,294.3 $ 1,500.0 $ 2,794.3 |
Schedule of acquisition-date fair values assigned to the assets acquired and liabilities assumed | Competence Managed IT As at acquisition-date fair values (millions) Call Center Services Lionbridge AI Combined Assets Current assets Cash and cash equivalents $ 67.9 $ — $ 2.7 $ 70.6 Accounts receivable 1 48.7 2.4 40.4 91.5 Other 1.4 2.9 6.0 10.3 $ 118.0 $ 5.3 $ 49.1 $ 172.4 Non-current assets Property, plant and equipment Owned assets $ 15.9 $ 25.4 $ 0.2 $ 41.5 Right-of-use lease assets 32.6 — 2.5 35.1 Intangible assets subject to amortization 569.9 2 0.8 643.0 3 1,213.7 Deferred income taxes — 1.3 — 1.3 Other 1.7 2.2 — 3.9 $ 620.1 $ 29.7 $ 645.7 $ 1,295.5 Total identifiable assets acquired $ 738.1 $ 35.0 $ 694.8 $ 1,467.9 Liabilities Current liabilities Accounts payable and accrued liabilities $ 32.0 $ 1.1 $ 22.4 $ 55.5 Income and other taxes payable 47.7 — 11.1 58.8 Advance billings and customer deposits — 0.8 0.7 1.5 Current maturities of long-term debt 8.1 — 0.7 8.8 $ 87.8 $ 1.9 $ 34.9 $ 124.6 Non-current liabilities Long-term debt $ 163.4 $ — $ 1.8 $ 165.2 Other long-term liabilities — 0.7 0.4 1.1 Deferred income taxes 162.6 — 186.5 349.1 $ 326.0 $ 0.7 $ 188.7 $ 515.4 Total liabilities assumed $ 413.8 $ 2.6 $ 223.6 $ 640.0 Net identifiable assets acquired $ 324.3 $ 32.4 $ 471.2 $ 827.9 Goodwill 548.7 — 468.3 1,017.0 Net assets acquired $ 873.0 $ 32.4 $ 939.5 $ 1,844.9 Acquisition effected by way of: Cash consideration $ 873.0 $ — $ 939.5 $ 1,812.5 Share consideration — 48.8 — 48.8 Excess of fair value of consideration paid over the carrying value of business acquired — (16.4) — (16.4) $ 873.0 $ 32.4 $ 939.5 $ 1,844.9 (1) (2) (3) |
Schedule of pro forma information of business acquisition operating results | Year Ended December 31, 2020 Competence (millions except per share amounts) As reported(1) Call Center Managed IT Services Lionbridge AI(3) Pro forma(2) Revenue arising from contracts with customers $ 1,581.6 $ 32.7 $ 33.4 $ 239.1 $ 1,886.8 Net income (loss) $ 102.9 $ (1.7) $ 3.3 $ (31.0) $ 73.5 Earnings (loss) per share Basic $ 0.46 $ (0.01) $ 0.02 $ (0.14) $ 0.33 Diluted $ 0.46 $ (0.01) $ 0.02 $ (0.14) $ 0.33 (1) Revenue arising from contracts with customers and net income for the year ended December 31, 2020, include: $395.4 million and $76.5 million, respectively, in respect of Competence Call Center. Revenues and net income for the year ended December 31, 2020, include: $76.9 million and $3.1 million, respectively, in respect of MITS. The acquisition of Lionbridge AI had no impact on our revenues or net income for the year ended December 31, 2020, as the transaction occurred on December 31, 2020. (2) Pro forma amounts for the year ended December 31, 2020 reflect results of the transferred business. The actual results of the transferred business have been included in our Consolidated statements of income and other comprehensive income effective from the date of acquisition. (3) Financial information for Lionbridge AI for the year ended December 31, 2020 represents results for a period prior to our acquisition of the Lionbridge AI business, which was completed on December 31, 2020. The financial information for Lionbridge AI is preliminary and has been derived from financial information provided by the seller of Lionbridge AI under a transition services agreement. Additionally, the preliminary financial information for Lionbridge AI provided by the seller reflects shared cost allocations attributed to Lionbridge AI by the seller that may not be reflective of actual costs for Lionbridge AI as part of TELUS International. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions | |
Schedule of other provisions | Employee Written put (millions) Note related options Other Total As at January 1, 2019 $ 7.3 $ 202.7 $ 6.5 $ 216.5 Additions 6.7 0.1 10.2 17.0 Use (0.6) (50.1) (5.2) (55.9) Reversal — (12.2) (1.3) (13.5) Additions from acquisition 13(c) — 8.3 0.1 8.4 Interest effect 0.1 (1.8) — (1.7) Foreign currency translation adjustments 7.3 202.7 6.5 216.5 As at December 31, 2019 $ 13.5 $ 147.0 $ 10.3 $ 170.8 Current $ — $ — $ 10.3 $ 10.3 Non-current 13.5 147.0 — 160.5 As at December 31, 2019 $ 13.5 $ 147.0 $ 10.3 $ 170.8 Additions $ 9.3 $ — $ 58.1 $ 67.4 Use (1.8) (75.6) (40.7) (118.1) Reversal (1.0) (73.3) (10.3) (84.6) Interest effect — 1.9 — 1.9 Foreign currency translation adjustments (0.3) — — (0.3) As at December 31, 2020 $ 19.7 $ — $ 17.4 $ 37.1 Current $ — $ — $ 17.4 $ 17.4 Non-current 19.7 — — 19.7 As at December 31, 2020 $ 19.7 $ — $ 17.4 $ 37.1 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debt | |
Schedule of details of long-term debt | As at December 31 (millions) Note 2020 2019 Credit facility (b) $ 1,568.0 $ 335.5 Deferred debt transaction costs (10.9) (3.7) $ 1,557.1 331.8 Lease liabilities (c) 208.6 188.7 Long-term debt $ 1,765.7 $ 520.5 Current $ 92.3 $ 42.8 Non-current 1,673.4 477.7 Long-term debt $ 1,765.7 $ 520.5 |
Schedule of long-term debt maturities | European Other Composite long-term debt denominated in U.S dollars euros currencies Long-term debt, excluding Years ending December 31 (millions) leases Leases Total Leases Leases Total 2021 $ 42.5 $ 14.9 $ 57.4 $ 13.4 $ 22.1 $ 92.9 2022 267.5 14.4 281.9 11.7 16.1 309.7 2023 30.0 13.1 43.1 7.9 15.7 66.7 2024 30.0 5.4 35.4 5.5 12.5 53.4 2025 1,198.0 4.2 1,202.2 2.9 7.0 1,212.1 Thereafter — 6.2 6.2 20.1 15.5 41.8 Future cash outflows in respect of composite long-term debt principal repayments 1,568.0 58.2 1,626.2 61.5 88.9 1,776.6 Future cash outflows in respect of associated interest and like carrying costs 1 173.9 12.4 186.3 13.0 19.8 219.1 Undiscounted contractual maturities ( Note 4(c) ) $ 1,741.9 $ 70.6 $ 1,812.5 $ 74.5 $ 108.7 $ 1,995.7 (1) Future cash outflows in respect of associated interest and like carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2020. |
Credit Facility | |
Long-term debt | |
Schedule of details of long-term debt | 2020 2019 Revolving Term loan Revolving Term loan As at December 31 (millions) component component(1) Total component component(1) Total Available $ 132.0 N/A $ 132.0 $ 121.0 N/A $ 121.0 Outstanding Due to TELUS Corporation $ 65.1 75.0 140.1 — — — Due to Other 652.9 775.0 1,427.9 229.0 106.5 335.5 $ 850.0 $ 850.0 $ 1,700.0 $ 350.0 $ 106.5 $ 456.5 (1) We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on the debt to a fixed rate of 2.64% plus applicable margins (see Note 4(g) - Derivative) . |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share capital | |
Schedule of authorized share capital | Authorized Issued As at December 31 2020 2019 2018 2020 2019 2018 Preferred Shares Convertible Redeemable Preferred A Shares unlimited unlimited unlimited — — — Convertible Redeemable Preferred B Shares unlimited unlimited unlimited — — — Common Shares Class A unlimited unlimited unlimited 148,421,976 120,762,495 120,762,495 Class B unlimited unlimited unlimited 82,144,186 65,251,305 65,251,305 Class C unlimited unlimited unlimited 4,178,969 418,500 418,500 Class D unlimited unlimited unlimited 3,249,094 3,249,094 3,249,094 Class E unlimited unlimited unlimited 6,520,517 — — |
Schedule of the reconciliations of the denominators of the basic and diluted per share computations | The following table presents reconciliations of the denominators of the basic and diluted per share computations. Net income was equal to diluted net income for all periods presented. Years Ended December 31 2020 2019 2018 Basic total weighted average number of common shares outstanding 224,156,034 189,681,394 188,693,316 Effect of dilutive securities - share option awards 1,366,938 629,104 401,897 Diluted total weighted average number of common shares outstanding 225,522,972 190,310,498 189,095,213 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Schedule of transactions with TELUS Corporation | 2020 2019 2018 TELUS Subsidiaries TELUS Subsidiaries TELUS Subsidiaries As at, or Year Ended Corporation of TELUS Corporation of TELUS Corporation of TELUS December 31 (millions) (parent) Corporation Total (parent) Corporation Total (parent) Corporation Total Transactions with TELUS Corporation and subsidiaries Revenues from services provided to $ — $ 310.2 $ 310.2 $ — $ 267.7 $ 267.7 $ — $ 203.2 $ 203.2 Goods and services purchased (from) — (29.2) (29.2) — (4.9) (4.9) — (5.4) (5.4) — 281.0 281.0 — 262.8 262.8 — 197.8 197.8 Receipts from related parties (0.2) (283.8) (284.0) (0.2) (251.3) (251.5) — (199.3) (199.3) Payments to related parties 38.0 — 38.0 27.3 — 27.3 19.4 — 19.4 Payments made by related parties on our behalf (13.8) (5.1) (18.9) (26.1) (9.5) (35.6) (15.0) (12.1) (27.1) Issuance of Common A Shares — — — — — — 25.7 — 25.7 Foreign currency adjustments — (2.2) (2.2) 0.1 — 0.1 0.7 (0.3) 0.4 Change in balance 24.0 (10.1) 13.9 1.1 2.0 3.1 30.8 (13.9) 16.9 Accounts with TELUS Corporation and subsidiaries Balance, beginning of year 3.0 1.2 4.2 1.9 (0.8) 1.1 (28.9) 13.1 (15.8) Balance, end of year $ 27.0 $ (8.9) $ 18.1 $ 3.0 $ 1.2 $ 4.2 $ 1.9 $ (0.8) $ 1.1 Accounts with TELUS Corporation and subsidiaries Due from $ 27.0 $ 22.1 $ 49.1 $ 3.0 $ 27.2 $ 30.2 $ 3.1 $ 18.3 $ 21.4 Due to — (31.0) (31.0) — (26.0) (26.0) (1.2) (19.1) (20.3) $ 27.0 $ (8.9) $ 18.1 $ 3.0 $ 1.2 $ 4.2 $ 1.9 $ (0.8) $ 1.1 |
Summary of transactions with key management personnel | Years Ended December 31 (millions) 2020 2019 2018 Short‑term benefits $ 3.9 $ 3.2 $ 3.0 Post‑employment pension (1) and other benefits $ 1.0 $ 0.6 $ 0.5 Share‑based compensation $ 5.1 $ 6.0 $ 3.8 (1) Some of our Senior Leadership Team members are members of our Pension Plan for Management and Professional Employees of TELUS Corporation and certain other non-registered, non-contributory supplementary defined benefit pension plans. |
Additional financial informat_2
Additional financial information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Additional financial information | |
Schedule of additional information for statements of financial position | As at December 31 (millions) Note 2020 2019 Accounts receivable Customer accounts receivable 4(b) $ 162.8 $ 109.8 Accrued receivables-customer 125.2 57.0 Allowance for doubtful accounts 4(b) (5.2) (1.8) 282.8 165.0 Accrued receivables-current 20.5 11.6 $ 303.3 $ 176.6 Other long-term assets Accrued receivables-non-current $ 31.7 $ 25.8 Deferred expenses 2.0 1.0 $ 33.7 $ 26.8 Accounts payable and accrued liabilities Accrued liabilities $ 63.9 $ 34.7 Payroll and other employee-related liabilities 102.5 58.3 Restricted share units liability 12.5 9.5 178.9 102.5 Trade accounts payable 18.8 20.3 Other 57.0 29.4 $ 254.7 $ 152.2 |
Schedule of operating activities and investing activities | Years Ended December 31 (millions) Note 2020 2019 2018 Net change in non-cash operating working capital Accounts receivable $ (29.4) $ (38.0) $ (33.1) Due to and from affiliated companies, net (13.9) (3.1) 8.8 Prepaid expenses 8.4 (4.0) 1.1 Other long-term assets (3.0) (11.1) (0.6) Accounts payable and accrued liabilities 28.8 25.0 3.7 Income and other taxes receivable and payable, net 4.2 0.4 (3.4) Advance billings and customer deposits 2.9 (9.5) 9.6 Provisions 7.8 11.9 — Other long-term liabilities (4.7) 0.2 — $ 1.1 $ (28.2) $ (13.9) Cash payments for capital assets Capital asset additions Capital expenditures Property, plant and equipment 12 $ (89.7) $ (126.2) $ (42.3) Intangible assets 13 (11.4) (4.8) (8.2) (101.1) (131.0) (50.5) Additions arising from leases 12 27.5 68.2 — Change in associated non-cash investing working capital 14.4 10.1 3.0 $ (59.2) $ (52.7) $ (47.5) |
Schedule of changes in liabilities arising from financing activities | Statements of cash flows Non-cash changes Redemptions, Foreign (millions) Beginning Issued or repayments or exchange End of Year Ended December 31, 2020 of year received payments movement Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 335.5 $ 1,854.0 $ (621.5) $ — $ — $ 1,568.0 Other — — (138.9) — 138.9 — Lease liabilities 188.7 — (58.6) 12.0 66.5 208.6 Deferred debt transaction costs (3.7) — — — (7.2) (10.9) $ 520.5 $ 1,854.0 $ (819.0) $ 12.0 $ 198.2 $ 1,765.7 Short-term borrowings $ — $ 22.0 $ (22.0) $ — $ — $ — IFRS 16, Non-cash Leases Statements of cash flows changes As transitional Redemptions, (millions) previously amount As Issued or repayments End of Year Ended December 31, 2019 reported (Note 2(a)) adjusted received or payments Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 312.5 $ — $ 312.5 $ 72.0 $ (49.0) $ — $ 335.5 Lease liabilities 0.4 154.3 154.7 — (47.0) 81.0 188.7 Deferred debt transaction costs (4.9) — (4.9) — — 1.2 (3.7) $ 308.0 $ 154.3 $ 462.3 $ 72.0 $ (96.0) $ 82.2 $ 520.5 Short-term borrowings $ — $ — $ — $ 0.6 $ (0.6) $ — $ — Statements of cash flows Non-cash Redemptions, changes (millions) Beginning Issued or repayments or End of Year Ended December 31, 2018 of year received payments Other year Long-term debt TELUS International (Cda) Inc. credit facility $ 275.6 $ 75.0 $ (38.1) $ — $ 312.5 Deferred debt transaction costs (6.1) — (0.5) 1.7 (4.9) Voxpro Limited long‑term debt 0.8 — — (0.4) 0.4 270.3 75.0 (38.6) 1.3 308.0 Short-term borrowings Xavient promissory note $ — $ 10.0 $ (10.0) $ — $ — Additions from acquisition — — (4.6) 4.6 — $ — $ 10.0 $ (14.6) $ 4.6 $ — Intercompany advances Received from TELUS Corporation $ 26.2 $ — $ — $ (26.2) $ — |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment reporting | |
Schedule of reconciliation of revenue and net long-lived assets by geographic area | Years Ended December 31 (millions) 2020 2019 2018 Revenue by geographic area, based on delivery location Philippines $ 286.8 $ 283.5 $ 240.2 Germany 242.0 — — United States 207.7 242.5 165.5 Guatemala 151.7 118.4 71.7 Canada 138.7 16.0 14.9 El Salvador 111.0 91.4 101.1 Bulgaria 104.0 89.5 75.5 Ireland 92.3 94.1 107.5 Spain 81.5 — — India 46.4 42.4 28.1 Romania 43.5 38.7 29.5 Other 76.0 3.1 0.6 $ 1,581.6 $ 1,019.6 $ 834.6 As at December 31 (millions) 2020 2019 Net long-lived assets by geographic area Canada $ 2,796.4 $ 509.6 Philippines 86.5 96.4 El Salvador 79.5 23.0 Ireland 44.0 51.9 Bulgaria 35.8 37.1 United States 24.1 13.4 Guatemala 21.9 46.9 Germany 21.6 — India 19.1 17.8 Other 27.5 13.0 $ 3,156.4 $ 809.1 |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | Feb. 03, 2021EquityInstruments |
IPO | |
Summary of significant accounting policies | |
Share split ratio | 4.5 |
Summary of significant accoun_5
Summary of significant accounting policies - Useful lives property, plant and equipment and right-of-use lease assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer hardware and network assets | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 2 years |
Computer hardware and network assets | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 10 years |
Buildings and leasehold improvements | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 5 years |
Buildings and leasehold improvements | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 20 years |
Furniture and equipment | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 3 years |
Furniture and equipment | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 7 years |
Right-of-use lease assets | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 3 years |
Right-of-use lease assets | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful lives | 20 years |
Summary of significant accoun_6
Summary of significant accounting policies - Useful lives intangible assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Customer relationships | Minimum | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 4 years |
Customer relationships | Maximum | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 15 years |
Software | Minimum | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 3 years |
Software | Maximum | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 7 years |
Brand | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 3 years |
Standard operating procedures | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 5 years |
Crowd source | |
Useful Lives of Intangible Assets Other Than Goodwill | |
Estimated useful lives of purchased intangible assets other than goodwill | 8 years |
Accounting policy development_2
Accounting policy developments - Summary of impact of IFRS 16 on the opening amounts (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 02, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets | ||||||
Property, plant and equipment, net | $ 362.1 | $ 301 | $ 253.6 | |||
Deferred income taxes | 6.5 | 4.7 | 3.9 | |||
Current liabilities | ||||||
Current maturities of long-term debt | 92.3 | 42.8 | 32.7 | |||
Non-current liabilities | ||||||
Long-term debt | 1,673.4 | 477.7 | 429.6 | |||
Owners' equity | ||||||
Retained earnings | (123) | |||||
Accumulated other comprehensive income | $ 142.4 | $ 18.3 | 21.3 | $ 21.5 | $ 31.4 | |
Excluding effects of IFRS 16 | ||||||
Non-current assets | ||||||
Property, plant and equipment, net | 115.2 | |||||
Deferred income taxes | 2.6 | |||||
Current liabilities | ||||||
Current maturities of long-term debt | 6 | |||||
Non-current liabilities | ||||||
Long-term debt | 302 | |||||
Owners' equity | ||||||
Retained earnings | (108.3) | |||||
Accumulated other comprehensive income | 21.2 | |||||
IFRS 16 effects | ||||||
Non-current assets | ||||||
Property, plant and equipment, net | 138.4 | |||||
Deferred income taxes | 1.3 | |||||
Current liabilities | ||||||
Current maturities of long-term debt | 26.7 | |||||
Non-current liabilities | ||||||
Long-term debt | 127.6 | |||||
Owners' equity | ||||||
Retained earnings | (14.7) | |||||
Accumulated other comprehensive income | $ 0.1 | $ 0.1 |
Capital structure financial p_2
Capital structure financial policies (Details) - IPO $ / shares in Units, $ in Millions | Feb. 03, 2021USD ($)$ / sharesshares |
Capital structure financial policies | |
Common Shares issued (in shares) | shares | 20,997,375 |
Share issue price (in dollars per share) | $ / shares | $ 25 |
Net proceeds | $ | $ 490 |
Financial instruments - Credit
Financial instruments - Credit risk (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | $ 506.7 | $ 289.6 |
Cash and cash equivalents | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 152.5 | 79.5 |
Customer accounts receivable | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 303.3 | 176.6 |
Due from affiliated companies | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | 49.1 | 30.2 |
Derivative assets | ||
Credit risk | ||
Maximum exposure (excluding income tax effects) to credit risk | $ 1.8 | $ 3.3 |
Financial instruments - Account
Financial instruments - Accounts receivable (Details) - Customer accounts receivable - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit risk | |||
Customer receivable, Net | $ 157.6 | $ 108 | |
Accounts receivable written off directly to bad debt expense | 0 | ||
Less than 30 days past billing date | |||
Credit risk | |||
Customer receivable, Net | 121.3 | 97.4 | |
30-60 days past billing date | |||
Credit risk | |||
Customer receivable, Net | 27.5 | 3 | |
61-90 days past billing date | |||
Credit risk | |||
Customer receivable, Net | 7.2 | 2.3 | |
More than 90 days past billing date | |||
Credit risk | |||
Customer receivable, Net | 1.6 | 5.3 | |
Cost/Gross amount | |||
Credit risk | |||
Customer receivable, Net | 162.8 | 109.8 | |
Allowance for doubtful accounts | |||
Credit risk | |||
Customer receivable, Net | $ (5.2) | $ (1.8) | $ (2.9) |
Financial instruments - Activit
Financial instruments - Activity related to allowance for doubtful accounts (Details) - Customer accounts receivable - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of activity related to allowance for doubtful accounts | ||
Balance, beginning of year | $ (108) | |
Balance, end of year | (157.6) | $ (108) |
Allowance for doubtful accounts | ||
Summary of activity related to allowance for doubtful accounts | ||
Balance, beginning of year | 1.8 | 2.9 |
Additions | 6.5 | 0.6 |
Recovery | (3.1) | (1.7) |
Balance, end of year | $ 5.2 | $ 1.8 |
Financial instruments - Liquidi
Financial instruments - Liquidity risk (Details) $ in Millions | Dec. 31, 2020USD ($) |
Liquidity risk | |
Total | $ 2,854 |
Non-interest bearing financial liabilities | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 778.9 |
Due to affiliated companies | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 31 |
Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 1,741.9 |
Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 253.8 |
Composite long-term debt | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 1,995.7 |
Interest rate swap agreement | |
Liquidity risk | |
Contractual maturities, derivative liabilities | 4.8 |
2021 | |
Liquidity risk | |
Total | 561.9 |
2021 | Non-interest bearing financial liabilities | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 380.7 |
2021 | Due to affiliated companies | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 31 |
2021 | Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 87.4 |
2021 | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 62.6 |
2021 | Interest rate swap agreement | |
Liquidity risk | |
Contractual maturities, derivative liabilities | 2.5 |
2022 | |
Liquidity risk | |
Total | 759.4 |
2022 | Non-interest bearing financial liabilities | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 398.2 |
2022 | Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 307.9 |
2022 | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 51.5 |
2022 | Interest rate swap agreement | |
Liquidity risk | |
Contractual maturities, derivative liabilities | 2.3 |
2023 | |
Liquidity risk | |
Total | 109.3 |
2023 | Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 66 |
2023 | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 43.6 |
2024 | |
Liquidity risk | |
Total | 93.4 |
2024 | Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 65.2 |
2024 | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 28.4 |
2025 | |
Liquidity risk | |
Total | 1,280.2 |
2025 | Long-term debt excluding leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 1,215.4 |
2025 | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 17.9 |
Thereafter | |
Liquidity risk | |
Total | 49.8 |
Thereafter | Leases | |
Liquidity risk | |
Contractual maturities, non-derivative liabilities | 49.8 |
Currency risk related to foreign currency transactions | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (489.9) |
Amounts to be exchanged, Pay | 533.5 |
Currency risk related to foreign currency transactions | 2021 | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (95.4) |
Amounts to be exchanged, Pay | 93.1 |
Currency risk related to foreign currency transactions | 2022 | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (25.6) |
Amounts to be exchanged, Pay | 25.1 |
Currency risk related to foreign currency transactions | 2023 | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (25.3) |
Amounts to be exchanged, Pay | 25 |
Currency risk related to foreign currency transactions | 2024 | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (25) |
Amounts to be exchanged, Pay | 24.8 |
Currency risk related to foreign currency transactions | 2025 | Currency swap agreement | |
Liquidity risk | |
Amounts to be exchanged, (Receive) | (318.6) |
Amounts to be exchanged, Pay | $ 365.5 |
Financial instruments - Market
Financial instruments - Market risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Canadian Dollars | Currency risk | |||
Market risks | |||
Net income sensitivity to increase in risk variable | $ (2.4) | $ (0.4) | $ (0.1) |
Comprehensive income sensitivity to increase in risk variable | (2.4) | (0.4) | (0.1) |
Net income sensitivity to decrease in risk variable | 2.4 | 0.4 | 0.1 |
Comprehensive income sensitivity to decrease in risk variable | 2.4 | 0.4 | 0.1 |
European euro | Currency risk | |||
Market risks | |||
Net income sensitivity to increase in risk variable | 2.7 | (1.8) | |
Other comprehensive income sensitivity to increase in risk variable | 10.1 | 7.1 | |
Comprehensive income sensitivity to increase in risk variable | 10.1 | (2.7) | 5.3 |
Net income sensitivity to decrease in risk variable | (2.7) | 1.8 | |
Other comprehensive income sensitivity to decrease in risk variable | (10.1) | (7.1) | |
Comprehensive income sensitivity to decrease in risk variable | (10.1) | 2.7 | (5.3) |
Philippine peso | Currency risk | |||
Market risks | |||
Net income sensitivity to increase in risk variable | (0.9) | (0.3) | 1.6 |
Comprehensive income sensitivity to increase in risk variable | (0.9) | (0.3) | 1.6 |
Net income sensitivity to decrease in risk variable | 0.9 | 0.3 | (1.6) |
Comprehensive income sensitivity to decrease in risk variable | $ 0.9 | $ 0.3 | $ (1.6) |
U.S. Dollars | Currency risk | |||
Market risks | |||
Percentage of reasonably possible increase in market risk variable | 10.00% | 10.00% | 10.00% |
Percentage of reasonably possible decrease in market risk variable | (10.00%) | (10.00%) | (10.00%) |
U.S. Dollars | Interest rate risk | |||
Market risks | |||
Percentage of reasonably possible increase in market risk variable | 0.25% | 0.25% | 0.25% |
Percentage of reasonably possible decrease in market risk variable | (0.25%) | (0.25%) | (0.25%) |
Net income sensitivity to increase in risk variable | $ (3.9) | $ (0.8) | $ (0.8) |
Other comprehensive income sensitivity to increase in risk variable | 0.5 | 0.7 | 1 |
Comprehensive income sensitivity to increase in risk variable | (3.4) | (0.1) | 0.2 |
Net income sensitivity to decrease in risk variable | 3.9 | 0.8 | 0.8 |
Other comprehensive income sensitivity to decrease in risk variable | (0.5) | (0.7) | (1) |
Comprehensive income sensitivity to decrease in risk variable | $ 3.4 | $ 0.1 | $ (0.2) |
Common shares | Other market risk | |||
Market risks | |||
Percentage of reasonably possible increase in market risk variable | 25.00% | 25.00% | |
Percentage of reasonably possible decrease in market risk variable | (25.00%) | (25.00%) | (25.00%) |
Net income sensitivity to increase in risk variable | $ (3.9) | $ (2.4) | $ (2.6) |
Comprehensive income sensitivity to increase in risk variable | (3.9) | (2.4) | (2.6) |
Net income sensitivity to decrease in risk variable | 3.9 | 2.4 | 2.6 |
Comprehensive income sensitivity to decrease in risk variable | $ 3.9 | $ 2.4 | $ 2.6 |
Common shares | Philippine peso | |||
Market risks | |||
Percentage of reasonably possible changes in market risk variable | 10.00% |
Financial instruments - Fair Va
Financial instruments - Fair Values Derivatives (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)€ / $₱ / $ | Dec. 31, 2019USD ($)€ / $₱ / $ | |
Disclosure of detailed information about financial instruments | ||
Current Assets, Fair value and carrying value | $ 1.8 | $ 3.3 |
Current Liabilities, Fair value and carrying value | 1.1 | |
Non-current Liabilities, Fair value and carrying value | $ 57.2 | $ 3.2 |
Derivative assets | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Hedge ratio | 100.00% | 100.00% |
Current assets derivatives | Currency risk related to purchases | HFT | Philippine peso | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2021 | 2020 |
Current Assets, Notional amount | $ 68 | $ 28 |
Current Assets, Fair value and carrying value | $ 1.8 | $ 0.8 |
Rate | ₱ / $ | 48.23 | 52.16 |
Current assets derivatives | Currency risk related to investment in a foreign operation | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | - | |
Current assets derivatives | Currency risk related to investment in a foreign operation | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2020 | |
Current Assets, Notional amount | $ 363.2 | |
Current Assets, Fair value and carrying value | $ 2.5 | |
Price | € / $ | 0.89 | |
Current liabilities derivatives | Currency risk related to business acquisition | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2025 | - |
Rate | € / $ | 0.85 | |
Current Liabilities, Notional amount | $ 1.6 | |
Current Liabilities, Fair value and carrying value | $ 1.1 | |
Non-current liabilities derivatives | Currency risk related to investment in a foreign operation | Cash flow hedging item (HFH) | European euro | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2025 | 2020 |
Rate | € / $ | 0.85 | |
Non-current Liabilities, Notional amount | $ 402.7 | |
Non-current Liabilities, Fair value and carrying value | $ 52.4 | |
Non-current liabilities derivatives | Interest rate risk related to non-fixed credit facility amounts drawn | Cash flow hedging item (HFH) | ||
Disclosure of detailed information about financial instruments | ||
Maximum maturity date | 2022 | 2022 |
Non-current Liabilities, Notional amount | $ 100.5 | $ 106.5 |
Non-current Liabilities, Fair value and carrying value | $ 4.8 | $ 3.2 |
Interest rate on borrowings | 2.64% | 2.64% |
Financial instruments - Derivat
Financial instruments - Derivative gains and losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative assets | Interest rate risk | |||
Disclosure of detailed information about financial instruments | |||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | $ (1.5) | $ (2.7) | $ (0.9) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | 2.1 | 0.4 | (0.3) |
Derivatives held for hedging | Interest rate risk related to non-fixed credit facility amounts drawn | Interest expense | |||
Disclosure of detailed information about financial instruments | |||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (1.5) | (2.7) | (0.9) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | 2.1 | 0.4 | (0.3) |
Derivatives held for hedging | Currency risk | |||
Disclosure of detailed information about financial instruments | |||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (51) | (0.3) | (0.9) |
Gain (loss) reclassified from other comprehensive income to income (effective portion) | 2.1 | 0.4 | (0.3) |
Derivatives held for hedging | Currency risk related to business acquisition | European euro | Foreign exchange | |||
Disclosure of detailed information about financial instruments | |||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | 2.4 | ||
Derivatives held for hedging | Currency risk related to investment in a foreign operation | Foreign exchange | |||
Disclosure of detailed information about financial instruments | |||
Amount of gain (loss) recognized in other comprehensive income (effective portion) | (49.5) | ||
Derivatives held for trading | Foreign exchange | |||
Disclosure of detailed information about financial instruments | |||
Gain (Loss) recognized in income on derivatives | 1 | 0.3 | (0.8) |
Cash flow hedging item (HFH) | Derivatives held for hedging | |||
Disclosure of detailed information about financial instruments | |||
Ineffective portion of derivative instruments classified as cash flow hedging items | $ 0 | $ 0 | $ 0 |
Employee benefits expense (Deta
Employee benefits expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefits expense - gross | |||
Wages and salaries | $ 935.3 | $ 609.5 | $ 510.1 |
Total retirement benefit plan pension plan costs | 8.1 | 5.2 | 2.7 |
Share-based compensation | 29.4 | 13.2 | 5.8 |
Pensions - defined contribution | 3.5 | 2.2 | 0.8 |
Restructuring costs | 3.2 | 0.3 | 3.1 |
Total | $ 979.5 | $ 630.4 | $ 522.5 |
Interest expense and foreign _3
Interest expense and foreign exchange (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense | |||
Interest on long-term debt, excluding lease liabilities | $ 26 | $ 13.9 | $ 13.4 |
Interest on lease liabilities | 13.9 | 13.2 | |
Interest on short-term borrowings and other | 3.6 | 0.8 | 1.9 |
Interest accretion on provisions | 1.9 | 8.4 | 7.9 |
Total | 45.4 | 36.3 | 23.2 |
Foreign exchange | |||
Derivatives used to manage currency risks | (1) | (0.3) | 0.8 |
Foreign exchange (gain) loss | (0.5) | (2.3) | 7.3 |
Total | $ (1.5) | $ (2.6) | $ 8.1 |
Income taxes - Expense composit
Income taxes - Expense composition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense | |||
For current reporting year | $ 57.3 | $ 25.9 | $ 19.8 |
Adjustments recognized in the current period for income tax of prior periods | (9.8) | 2.1 | 1.3 |
Total | 47.5 | 28 | 21.1 |
Deferred income tax expense (recovery) | |||
Arising from the origination and reversal of temporary differences | (2.6) | 3.1 | (0.1) |
Adjustments recognized in the current period for income taxes of prior periods | 2.7 | (5.1) | 0.9 |
Total | 0.1 | (2) | 0.8 |
Income tax expense per consolidated statements of income and other comprehensive income | $ 47.6 | $ 26 | $ 21.9 |
Income taxes - Rate reconciliat
Income taxes - Rate reconciliations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of effective tax rate | |||
Income taxes computed at applicable statutory rates | $ 36.5 | $ 26.8 | $ 20.3 |
Non-tax deductible items | 9.6 | 1.8 | 2.4 |
Withholding and other taxes | 7.7 | 6.8 | 5.1 |
Foreign tax differential | (7.6) | (16.3) | (15.3) |
Adjustments recognized in the current period for income taxes of prior periods | (7.1) | (3) | 2.2 |
Foreign accrual property income | 6 | 9.1 | 7.9 |
Losses not recognized | 3 | 2 | 0.7 |
Other | (0.5) | (1.2) | (1.4) |
Income tax expense per consolidated statements of income and other comprehensive income | $ 47.6 | $ 26 | $ 21.9 |
Reconciliation of effective tax rate (as a percent) | |||
Applicable statutory rate (as a percent) | 24.20% | 28.20% | 29.40% |
Tax rate effect for non-tax deductible items (as a percent) | 6.40% | 1.90% | 3.40% |
Tax rate effect for withholding and other taxes (as a percent) | 5.10% | 7.10% | 7.30% |
Tax rate effect for foreign tax differential (as a percent) | (5.00%) | (17.20%) | (22.20%) |
Tax rate effect for adjustments recognized in the current period for income taxes of prior periods (as a percent) | (4.70%) | (3.10%) | 3.20% |
Tax rate effect for foreign accrual property income (as a percent) | 4.00% | 9.50% | 11.50% |
Tax rate effect for losses not recognized (as a percent) | 2.00% | 2.10% | 1.10% |
Tax rate effect for other (as a percent) | (0.40%) | (1.20%) | (1.90%) |
Tax rate for Income tax expense per Consolidated statements of income and other comprehensive income (as a percent) | 31.60% | 27.30% | 31.80% |
Income taxes - Temporary differ
Income taxes - Temporary differences (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Reconciliation of temporary differences | ||||||
Deferred income tax (expense) recovery recognized in Net income | $ 0.1 | $ (2) | $ 0.8 | |||
Other comprehensive income | 1.1 | 0.2 | ||||
Presented on the consolidated statement of financial position as: | ||||||
Deferred income tax asset | $ 6.5 | $ 4.7 | $ 3.9 | |||
Deferred income tax liability | (366.2) | (1.7) | ||||
Deferred tax assets and liabilities | ||||||
Deferred income tax liability | (366.2) | (1.7) | ||||
Deferred tax assets | 6.5 | 4.7 | 3.9 | |||
IFRS 16 effects | ||||||
Presented on the consolidated statement of financial position as: | ||||||
Deferred income tax asset | 1.3 | |||||
Deferred tax assets and liabilities | ||||||
Deferred tax assets | $ 1.3 | |||||
Property, plant, and equipment and intangible assets subject to amortization | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 41.5 | (42.5) | ||||
Deferred income tax (expense) recovery recognized in Net income | 31.4 | 1 | ||||
Acquired during the year and other | (365.6) | |||||
Balance at end of period | (375.7) | 41.5 | (42.5) | |||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | (375.7) | 41.5 | (42.5) | (375.7) | 41.5 | |
Property, plant, and equipment and intangible assets subject to amortization | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | (42.5) | |||||
Net pension and share-based compensation amounts | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | (2.6) | |||||
Deferred income tax (expense) recovery recognized in Net income | 3 | 0.6 | ||||
Balance at end of period | 5.6 | (2.6) | ||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 5.6 | (2.6) | 5.6 | (2.6) | ||
Net pension and share-based compensation amounts | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | 2 | |||||
Debt and equity issue costs | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 0.1 | 0.3 | ||||
Deferred income tax (expense) recovery recognized in Net income | (0.9) | (0.4) | ||||
Balance at end of period | (1) | 0.1 | 0.3 | |||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | (1) | 0.1 | 0.3 | (1) | 0.1 | |
Debt and equity issue costs | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | 0.3 | |||||
Provisions and other | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | (38) | |||||
Deferred income tax (expense) recovery recognized in Net income | (34.1) | (1.9) | ||||
Acquired during the year and other | 1 | |||||
Other comprehensive income | 1.1 | |||||
Balance at end of period | 6 | (38) | ||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 6 | (38) | 6 | (38) | ||
Provisions and other | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | 39.9 | |||||
Non-capital loss carried forward | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | (2.7) | |||||
Deferred income tax (expense) recovery recognized in Net income | 0.6 | 2.7 | ||||
Balance at end of period | 3.3 | (2.7) | ||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 3.3 | (2.7) | 3.3 | (2.7) | ||
Leases | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | (1.3) | |||||
Deferred income tax (expense) recovery recognized in Net income | (0.1) | |||||
Acquired during the year and other | 0.9 | |||||
Balance at end of period | 2.1 | (1.3) | ||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 2.1 | (1.3) | 2.1 | (1.3) | ||
Leases | IFRS 16 effects | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 1.3 | |||||
Balance at end of period | 1.3 | |||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 1.3 | 1.3 | 1.3 | |||
Leases | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | 1.3 | |||||
Intangible assets with indefinite lives | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 2 | |||||
Balance at end of period | 2 | |||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 2 | 2 | ||||
Contract assets and liabilities | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 39.9 | |||||
Balance at end of period | 39.9 | |||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 39.9 | 39.9 | ||||
Losses available to be carried forward | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | (3) | (0.3) | ||||
Deferred income tax (expense) recovery recognized in Net income | (0.1) | 2 | ||||
Acquired during the year and other | (363.7) | |||||
Other comprehensive income | 1.1 | |||||
Balance at end of period | (359.7) | (3) | (0.3) | |||
Presented on the consolidated statement of financial position as: | ||||||
Deferred income tax asset | 6.5 | 4.7 | ||||
Deferred income tax liability | (366.2) | (1.7) | ||||
As at Reporting date | (359.7) | (3) | $ (0.3) | (359.7) | (3) | |
Deferred tax assets and liabilities | ||||||
Deferred income tax liability | (366.2) | (1.7) | ||||
Deferred tax assets | $ 6.5 | 4.7 | ||||
Losses available to be carried forward | IFRS 16 effects | ||||||
Reconciliation of temporary differences | ||||||
Balance at beginning of period | 1.3 | |||||
Balance at end of period | 1.3 | |||||
Presented on the consolidated statement of financial position as: | ||||||
As at Reporting date | 1.3 | $ 1.3 | $ 1.3 | |||
Losses available to be carried forward | As adjusted | ||||||
Reconciliation of temporary differences | ||||||
Adjusted balance | $ 1 |
Income taxes - Other (Details)
Income taxes - Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | |||
Tax losses incurred for which no deferred tax asset is recognized | $ 15.2 | $ 15.7 | $ 5.3 |
Tax losses carried forward | 9 | ||
Tax losses expiring in 2024 | 6.2 | ||
Benefits recognized for non-capital losses | $ 5.5 |
Other comprehensive income (Det
Other comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Items that may subsequently be reclassified to income | |||
Accumulated balance at beginning, Change in unrealized fair value of derivatives | $ (0.7) | $ (0.8) | $ (0.1) |
Amount arising, Changes in unrealized fair value of derivatives | (51) | 0.1 | (0.9) |
Income taxes, Changes in unrealized fair value of derivatives | 1.1 | 0.2 | |
Net, Changes in unrealized fair value of derivatives | (49.9) | 0.1 | (0.7) |
Accumulated balance at ending, Change in unrealized fair value of derivatives | (50.6) | (0.7) | (0.8) |
Accumulated balance at beginning, Cumulative foreign currency translation adjustment | 18.3 | 21.5 | 31.4 |
Amount arising, Cumulative foreign currency translation adjustment | 124.1 | (3.3) | (9.9) |
Net, Cumulative foreign currency translation adjustment | 124.1 | (3.3) | (9.9) |
Accumulated balance at ending, Cumulative foreign currency translation adjustment | 142.4 | 18.3 | 21.5 |
Item never reclassified to income | |||
Accumulated balance at beginning, Employee defined benefit plan re-measurements | (2.2) | 0.5 | |
Amount arising, Employee defined benefit plans re-measurements | (0.2) | (2.7) | 0.5 |
Net, Employee defined benefit plans re-measurements | (0.2) | (2.7) | 0.5 |
Accumulated balance at ending, Employee defined benefit plan re-measurements | (2.4) | (2.2) | 0.5 |
Accumulated balance at beginning, Accumulated other comprehensive income | 15.4 | 21.2 | 31.3 |
Amount arising, Accumulated other comprehensive income | 72.9 | (5.9) | (10.3) |
Income taxes, Accumulated other comprehensive income | 1.1 | 0.2 | |
Total | 74 | (5.9) | (10.1) |
Accumulated balance at ending, Accumulated other comprehensive income | $ 89.4 | 15.4 | 21.2 |
IFRS 16 effects | |||
Items that may subsequently be reclassified to income | |||
Accumulated balance at beginning, Change in unrealized fair value of derivatives | 0 | ||
Accumulated balance at ending, Change in unrealized fair value of derivatives | 0 | ||
Item never reclassified to income | |||
Accumulated balance at beginning, Employee defined benefit plan re-measurements | 0 | ||
Accumulated balance at ending, Employee defined benefit plan re-measurements | 0 | ||
Accumulated balance at beginning, Accumulated other comprehensive income | 0.1 | ||
Accumulated balance at ending, Accumulated other comprehensive income | $ 0.1 | ||
As adjusted | |||
Items that may subsequently be reclassified to income | |||
Change in unrealized fair value of derivatives as adjusted | (0.8) | ||
Cumulative foreign currency translation adjustments | 21.6 | ||
Employee defined benefit plan re-measurement adjusted | 0.5 | ||
Accumulated other comprehensive income adjusted | $ 21.3 |
Share-based compensation - Rest
Share-based compensation - Restricted share units (Details) $ / shares in Units, $ in Millions | Feb. 03, 2021EquityInstruments | Dec. 31, 2020$ / shares | Dec. 31, 2020USD ($)EquityInstrumentsclass$ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2019USD ($)EquityInstruments$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2018USD ($)EquityInstruments$ / shares |
IPO | |||||||
share-based compensation | |||||||
Share split ratio | 4.5 | ||||||
Restricted share units | |||||||
share-based compensation | |||||||
Number of classes of awards | class | 2 | ||||||
Income tax benefit arising from share based compensation | $ | $ 7.3 | $ 2.9 | $ 1.3 | ||||
Phantom restricted share units | |||||||
share-based compensation | |||||||
Vesting period | 30 months | ||||||
Phantom restricted share units - US$ denominated | |||||||
Number of restricted share units - Non-vested | |||||||
Outstanding, beginning of year | 763,168 | 735,970 | 419,260 | ||||
Granted | 357,966 | 465,430 | 356,337 | ||||
Forfeited | (55,836) | (72,472) | (39,627) | ||||
Vested | (348,435) | (365,760) | |||||
Outstanding, end of year | 716,863 | 763,168 | 735,970 | ||||
Number of restricted share units - Vested | |||||||
Vested | 348,435 | 365,760 | |||||
Settled in cash | (348,435) | (365,760) | |||||
Grant-date fair value | |||||||
Outstanding, beginning of year | $ / shares | $ 6.23 | $ 5.88 | $ 5.52 | ||||
Granted | $ / shares | 11.11 | 6.18 | 6.30 | ||||
Forfeited | $ / shares | 6.21 | 5.91 | 5.75 | ||||
Vested | $ / shares | 6.30 | 5.52 | |||||
Settled in cash | $ / shares | 6.30 | 5.52 | |||||
Outstanding, end of year | $ / shares | $ 8.55 | $ 6.23 | $ 5.88 | ||||
Phantom restricted share units - Canadian $ denominated | |||||||
Number of restricted share units - Vested | |||||||
Outstanding, beginning of year | 145,345 | 145,345 | |||||
Settled in cash | (145,345) | ||||||
Outstanding, end of year | 145,345 | ||||||
Grant-date fair value | |||||||
Outstanding, beginning of year | $ / shares | $ 4.75 | $ 4.75 | $ 4.75 | ||||
Outstanding, end of year | $ / shares | $ 4.75 | $ 4.75 | |||||
Phantom performance restricted share units | |||||||
share-based compensation | |||||||
Vesting period | 30 months | ||||||
Number of restricted share units - Non-vested | |||||||
Outstanding, beginning of year | 1,338,565 | 1,720,345 | 1,223,887 | ||||
Granted | 426,433 | 496,458 | |||||
Forfeited | (37,826) | (11,250) | |||||
Vested | (633,960) | (796,963) | |||||
Outstanding, end of year | 666,779 | 1,338,565 | 1,720,345 | ||||
Number of restricted share units - Vested | |||||||
Vested | (633,960) | (796,963) | |||||
Settled in cash | (633,960) | (796,963) | |||||
Grant-date fair value | |||||||
Outstanding, beginning of year | $ / shares | $ 6.96 | $ 5.61 | $ 5.41 | ||||
Granted | $ / shares | 8.46 | 6.14 | |||||
Forfeited | $ / shares | 8.46 | 6.18 | |||||
Vested | $ / shares | 6.23 | 4.87 | |||||
Settled in cash | $ / shares | 6.23 | 4.87 | |||||
Outstanding, end of year | $ / shares | $ 7.23 | $ 6.96 | $ 5.61 | ||||
Phantom performance restricted share units | Minimum | |||||||
share-based compensation | |||||||
Variable payout (as a percent) | 0.00% | 0.00% | |||||
Phantom performance restricted share units | Maximum | |||||||
share-based compensation | |||||||
Variable payout (as a percent) | 100.00% | 100.00% | |||||
Common Share | Restricted share units | |||||||
share-based compensation | |||||||
Nominal value (in number of equity shares) | shares | 1 | ||||||
Common Share | Phantom restricted share units | |||||||
share-based compensation | |||||||
Nominal value (in number of equity shares) | shares | 1 | ||||||
Common Share | Phantom performance restricted share units | |||||||
share-based compensation | |||||||
Nominal value (in number of equity shares) | shares | 1 |
Share-based compensation - TELU
Share-based compensation - TELUS Corporation restricted share units (Details) | Feb. 03, 2021EquityInstruments | Feb. 13, 2020EquityInstruments | Dec. 31, 2020EquityInstruments$ / sharesshares | Dec. 31, 2019EquityInstruments$ / shares | Dec. 31, 2018EquityInstruments$ / shares |
IPO | |||||
share-based compensation | |||||
Share split ratio | 4.5 | ||||
Phantom restricted share units | |||||
share-based compensation | |||||
Vesting period | 30 months | ||||
Common Share | Restricted share units | |||||
share-based compensation | |||||
Nominal value (in number of equity shares) | shares | 1 | ||||
Common Share | Phantom restricted share units | |||||
share-based compensation | |||||
Nominal value (in number of equity shares) | shares | 1 | ||||
TELUS Corporation | |||||
share-based compensation | |||||
Share split ratio | 2 | ||||
TELUS Corporation | Restricted share units | |||||
share-based compensation | |||||
Vesting period | 30 months | ||||
TELUS Corporation | Restricted share units | Minimum | |||||
share-based compensation | |||||
Variable payout (as a percent) | 0.00% | ||||
TELUS Corporation | Restricted share units | Maximum | |||||
share-based compensation | |||||
Variable payout (as a percent) | 100.00% | ||||
TELUS Corporation | Phantom restricted share units | |||||
Number of restricted share units - Non-vested | |||||
Outstanding, beginning of year | 253,622 | 263,128 | 283,106 | ||
Granted | 13,217 | 94,342 | 83,040 | ||
Issued in lieu of dividends | 10,156 | 9,214 | |||
Vested | (113,737) | (113,062) | (98,048) | ||
Forfeited | (6,509) | (4,970) | |||
Outstanding, end of year | 156,749 | 253,622 | 263,128 | ||
Number of restricted share units - Vested | |||||
Vested | 113,737 | 113,062 | 98,048 | ||
Settled in cash | (113,737) | (113,062) | (98,048) | ||
Weighted average grant-date fair value | |||||
Outstanding, beginning of year | $ / shares | $ 23.78 | $ 16.45 | $ 21.84 | ||
Granted | $ / shares | 24.97 | 21.38 | 22.55 | ||
Issued in lieu of dividends | $ / shares | 15.42 | 26.99 | |||
Vested | $ / shares | 25.49 | 21.25 | 19.84 | ||
Settled in cash | $ / shares | 25.49 | 21.25 | 19.84 | ||
Forfeited | $ / shares | 23.59 | 20.49 | |||
Outstanding, end of year | $ / shares | $ 24.17 | $ 23.78 | $ 16.45 | ||
TELUS Corporation | Common Share | Restricted share units | |||||
share-based compensation | |||||
Nominal value (in number of equity shares) | shares | 1 |
Share-based compensation - Shar
Share-based compensation - Share option awards (Details) | Feb. 03, 2021EquityInstruments | Dec. 31, 2020Options$ / shares | Dec. 31, 2020Options$ / shares$ / shares | Dec. 31, 2019Options$ / shares | Dec. 31, 2019Options$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2018Options$ / shares | Dec. 31, 2020Options$ / shares | |||
Share option awards | Maximum | |||||||||||
share-based compensation | |||||||||||
Exercise period | 10 years | 10 years | |||||||||
Equity share option awards | |||||||||||
share-based compensation | |||||||||||
Vesting period | 3 years | 3 years | |||||||||
Equity share option awards | Minimum | |||||||||||
share-based compensation | |||||||||||
Variable payout (as a percent) | 0.00% | 0.00% | 0.00% | ||||||||
Equity share option awards | Maximum | |||||||||||
share-based compensation | |||||||||||
Variable payout (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||
Phantom share option awards | |||||||||||
share-based compensation | |||||||||||
Vesting period | 30 months | 30 months | |||||||||
Percentage of awards cash-settled | 50.00% | 50.00% | |||||||||
Percentage of awards share-settled | 50.00% | 50.00% | |||||||||
Exercisable on vesting (as a percent) | 50.00% | 50.00% | |||||||||
Exercisable twelve months thereafter (as a percent) | 50.00% | 50.00% | |||||||||
Phantom share option awards | Minimum | |||||||||||
share-based compensation | |||||||||||
Variable payout (as a percent) | 0.00% | 0.00% | 0.00% | ||||||||
Phantom share option awards | Maximum | |||||||||||
share-based compensation | |||||||||||
Variable payout (as a percent) | 100.00% | 100.00% | 100.00% | ||||||||
Share option awards - US$ denominated | |||||||||||
share-based compensation | |||||||||||
Weighted average remaining contractual life (years) | 6 years 4 months 24 days | 6 years 4 months 24 days | |||||||||
Share option awards, Non-vested | |||||||||||
Outstanding, beginning of year | Options | 4,476,658 | 4,476,658 | 3,864,307 | 3,864,307 | 3,363,543 | [1] | 3,363,543 | [1] | |||
Granted | Options | 612,351 | 612,351 | 500,764 | 500,764 | |||||||
Vested | Options | (3,822,025) | (3,822,025) | |||||||||
Outstanding, end of year | Options | 654,633 | 654,633 | 4,476,658 | 4,476,658 | 3,864,307 | 3,864,307 | |||||
Share option awards, Vested | |||||||||||
Vested | Options | 3,822,025 | 3,822,025 | |||||||||
Exercised | Options | (554,602) | (554,602) | |||||||||
Outstanding, end of year | Options | 3,267,423 | 3,267,423 | |||||||||
Exercisable, end of year | Options | 3,267,423 | 3,267,423 | 3,267,423 | ||||||||
Share option awards, Weighted average exercise price | |||||||||||
Outstanding, beginning of year | [2] | $ 6.91 | $ 6.63 | $ 6.69 | [1] | ||||||
Granted | [2] | 8.46 | 6.18 | ||||||||
Vested | [2] | 6.21 | |||||||||
Exercised | [2] | 6.21 | |||||||||
Outstanding, end of year | [2] | $ 6.94 | $ 6.91 | $ 6.63 | |||||||
Exercisable, end of year | [2] | $ 6.58 | |||||||||
Share option awards - US$ denominated | Minimum | |||||||||||
share-based compensation | |||||||||||
Exercise price (in dollars per share) | 3.54 | ||||||||||
Share option awards - Canadian $ denominated | |||||||||||
share-based compensation | |||||||||||
Exercise price (in dollars per share) | $ 4.75 | ||||||||||
Weighted average remaining contractual life (years) | 5 years 7 months 6 days | 5 years 7 months 6 days | |||||||||
Share option awards, Vested | |||||||||||
Outstanding, beginning of year | Options | 242,244 | 242,244 | 242,244 | 242,244 | 242,244 | [1] | 242,244 | [1] | |||
Outstanding, end of year | Options | 242,244 | 242,244 | 242,244 | 242,244 | 242,244 | 242,244 | |||||
Exercisable, end of year | Options | 242,244 | 242,244 | 242,244 | ||||||||
Share option awards, Weighted average exercise price | |||||||||||
Outstanding, beginning of year | $ 4.75 | $ 4.75 | $ 4.75 | [1] | |||||||
Outstanding, end of year | 4.75 | $ 4.75 | $ 4.75 | ||||||||
Exercisable, end of year | $ 4.75 | $ 4.75 | |||||||||
Share option awards - Canadian $ denominated | Maximum | |||||||||||
share-based compensation | |||||||||||
Exercise price (in dollars per share) | $ 8.95 | ||||||||||
IPO | |||||||||||
share-based compensation | |||||||||||
Share split ratio | EquityInstruments | 4.5 | ||||||||||
[1] | Amounts reflect retrospective application of a 4.5-for-one share subdivision, which occurred in connection with TELUS International (Cda) Inc.’s sale of shares to the public on February 3, 2021 (see Note 17). | ||||||||||
[2] | For options outstanding at the end of the period, the exercise prices ranged from $3.54 to $8.95. The weighted-average remaining expected life was 6.4 years. |
Employee future benefits (Detai
Employee future benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined contribution pension plans | |||
Number of defined contribution plans | 2 | ||
Matching contribution to employees' 5% contribution | 100.00% | 100.00% | |
Employer matching contribution over 5% of employee's contribution | 80.00% | 80.00% | |
Employer maximum matching contribution (in percent) | 5.80% | 5.80% | |
Total defined contribution pension plan costs | $ 3.5 | $ 2.2 | $ 0.8 |
Total retirement benefit plan pension plan costs | 8.1 | 5.2 | 2.7 |
Obligation for defined benefit pension plans | 14.7 | 8.8 | 3.7 |
Pension plans | |||
Defined contribution pension plans | |||
Total retirement benefit plan pension plan costs | 3.1 | 1.9 | $ 0.8 |
Contribution Pension Plans | |||
Defined contribution pension plans | |||
Total defined contribution pension plan costs | $ 1.4 | $ 0.3 | |
Minimum | |||
Defined contribution pension plans | |||
Employees contribution to the plan (as a per cent) | 3.00% | ||
Maximum | |||
Defined contribution pension plans | |||
Employees contribution to the plan (as a per cent) | 6.00% | ||
Employees' contribution 100% matched (as a per cent) | 5.00% | 5.00% |
Restructuring and other costs_2
Restructuring and other costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and other costs | |||
Goods and services purchased | $ 55.5 | $ 5.8 | $ 0.6 |
Employee benefits expense | 3.2 | 0.3 | 3.1 |
Total | 58.7 | 6.1 | 3.7 |
Restructuring | |||
Restructuring and other costs | |||
Goods and services purchased | 3 | 0.1 | |
Employee benefits expense | 3.2 | 0.3 | 3.1 |
Total | 3.2 | 3.3 | 3.2 |
Other | |||
Restructuring and other costs | |||
Goods and services purchased | 55.5 | 2.8 | 0.5 |
Total | $ 55.5 | $ 2.8 | $ 0.5 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | $ 301 | ||
Depreciation | 99.4 | $ 73.1 | $ 31.3 |
Property, plant and equipment at end of year | 362.1 | 301 | |
Total | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 133 | ||
Property, plant and equipment at end of year | 181.7 | 133 | |
Total | Computer hardware and network assets | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 16.1 | ||
Property, plant and equipment at end of year | 22.8 | 16.1 | |
Total | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 50 | ||
Property, plant and equipment at end of year | 63 | 50 | |
Total | Furniture and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 55.7 | ||
Property, plant and equipment at end of year | 81.3 | 55.7 | |
Total | Assets under construction | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 11.2 | ||
Property, plant and equipment at end of year | 14.6 | 11.2 | |
Right-of-use lease assets | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 168 | ||
Property, plant and equipment at end of year | 180.4 | 168 | |
Cost/Gross amount | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 479 | 374.5 | |
Additions | 89.7 | 126.2 | |
Additions from Acquisition | 76.6 | ||
Dispositions, retirements and other | (35) | (17.6) | |
Foreign currency translation adjustments | 16 | (4.1) | |
Property, plant and equipment at end of year | 626.3 | 479 | 374.5 |
Cost/Gross amount | Total | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 276.5 | 236.1 | |
Additions | 62.2 | 58 | |
Additions from Acquisition | 41.5 | ||
Dispositions, retirements and other | (24.7) | (15.3) | |
Foreign currency translation adjustments | 6.8 | (2.3) | |
Property, plant and equipment at end of year | 362.3 | 276.5 | 236.1 |
Cost/Gross amount | Total | Computer hardware and network assets | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 32.3 | 37.2 | |
Additions | 1.3 | 0.9 | |
Additions from Acquisition | 6.3 | ||
Dispositions, retirements and other | (0.4) | (15.8) | |
Assets under construction put into service | 6.2 | 10.4 | |
Foreign currency translation adjustments | 0.3 | (0.4) | |
Property, plant and equipment at end of year | 46 | 32.3 | 37.2 |
Cost/Gross amount | Total | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 77.8 | 69 | |
Additions | 4.6 | 1.8 | |
Additions from Acquisition | 9.4 | ||
Dispositions, retirements and other | (7.7) | (12.7) | |
Assets under construction put into service | 8.9 | 19.9 | |
Foreign currency translation adjustments | 2.1 | (0.2) | |
Property, plant and equipment at end of year | 95.1 | 77.8 | 69 |
Cost/Gross amount | Total | Furniture and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 155.2 | 106.9 | |
Additions | 20.1 | 8.2 | |
Additions from Acquisition | 23.9 | ||
Dispositions, retirements and other | (13.6) | 17.8 | |
Assets under construction put into service | 16.8 | 23.1 | |
Foreign currency translation adjustments | 4.2 | (0.8) | |
Property, plant and equipment at end of year | 206.6 | 155.2 | 106.9 |
Cost/Gross amount | Total | Assets under construction | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 11.2 | 23 | |
Additions | 36.2 | 47.1 | |
Additions from Acquisition | 1.9 | ||
Dispositions, retirements and other | (3) | (4.6) | |
Assets under construction put into service | (31.9) | (53.4) | |
Foreign currency translation adjustments | 0.2 | (0.9) | |
Property, plant and equipment at end of year | 14.6 | 11.2 | 23 |
Cost/Gross amount | Right-of-use lease assets | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | 202.5 | 138.4 | |
Additions | 27.5 | 68.2 | |
Additions from Acquisition | 35.1 | ||
Dispositions, retirements and other | (10.3) | (2.3) | |
Foreign currency translation adjustments | 9.2 | (1.8) | |
Property, plant and equipment at end of year | 264 | 202.5 | 138.4 |
Accumulated depreciation | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (178) | (120.9) | |
Depreciation | 99.4 | 73.1 | |
Dispositions, retirements and other | (16.7) | (15.9) | |
Foreign currency translation adjustments | 3.5 | (0.1) | |
Property, plant and equipment at end of year | (264.2) | (178) | (120.9) |
Accumulated depreciation | Total | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (143.5) | (120.9) | |
Depreciation | 51.7 | 38.2 | |
Dispositions, retirements and other | (16.6) | (15.6) | |
Foreign currency translation adjustments | 2 | ||
Property, plant and equipment at end of year | (180.6) | (143.5) | (120.9) |
Accumulated depreciation | Total | Computer hardware and network assets | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (16.2) | (18.9) | |
Depreciation | 7.2 | 6.2 | |
Dispositions, retirements and other | (0.2) | (9.2) | |
Foreign currency translation adjustments | 0.3 | ||
Property, plant and equipment at end of year | (23.2) | (16.2) | (18.9) |
Accumulated depreciation | Total | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (27.8) | (31.4) | |
Depreciation | 12 | 10 | |
Dispositions, retirements and other | (8.1) | (13.5) | |
Foreign currency translation adjustments | 0.4 | (0.1) | |
Property, plant and equipment at end of year | (32.1) | (27.8) | (31.4) |
Accumulated depreciation | Total | Furniture and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (99.5) | (70.6) | |
Depreciation | 32.5 | 22 | |
Dispositions, retirements and other | (8.3) | 7.1 | |
Foreign currency translation adjustments | 1.6 | (0.2) | |
Property, plant and equipment at end of year | (125.3) | (99.5) | $ (70.6) |
Accumulated depreciation | Right-of-use lease assets | Buildings and leasehold improvements | |||
Property, plant and equipment | |||
Property, plant and equipment at beginning of year | (34.5) | ||
Depreciation | 47.7 | 34.9 | |
Dispositions, retirements and other | (0.1) | (0.3) | |
Foreign currency translation adjustments | 1.5 | (0.1) | |
Property, plant and equipment at end of year | $ (83.6) | $ (34.5) |
Intangible assets and goodwil_2
Intangible assets and goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets and goodwill | |||
Balance at beginning of the year | $ 508.1 | ||
Amortization | 82.8 | $ 19.1 | $ 18.2 |
Balance at end of the year | 2,794.3 | 508.1 | |
Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 563.3 | 563.6 | |
Additions | 11.4 | 4.8 | |
Additions from Acquisition | 2,230.7 | ||
Dispositions, retirements and other | (1.6) | ||
Foreign currency translation adjustments | 132.8 | (3.5) | |
Balance at end of the year | 2,938.2 | 563.3 | 563.6 |
Accumulated amortization | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | (55.2) | (37.6) | |
Amortization | 82.8 | 19.1 | |
Dispositions, retirements and other | (1.3) | ||
Foreign currency translation adjustments | 5.9 | (0.2) | |
Balance at end of the year | (143.9) | (55.2) | (37.6) |
Total intangible assets | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 89.7 | ||
Balance at end of the year | 1,294.3 | 89.7 | |
Total intangible assets | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 144.9 | 142.4 | |
Additions | 11.4 | 4.8 | |
Additions from Acquisition | 1,213.7 | ||
Dispositions, retirements and other | (1.6) | ||
Foreign currency translation adjustments | 68.2 | (0.7) | |
Balance at end of the year | 1,438.2 | 144.9 | 142.4 |
Total intangible assets | Accumulated amortization | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | (55.2) | (37.6) | |
Amortization | 82.8 | 19.1 | |
Dispositions, retirements and other | (1.3) | ||
Foreign currency translation adjustments | 5.9 | (0.2) | |
Balance at end of the year | (143.9) | (55.2) | (37.6) |
Customer relationships | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 76.5 | ||
Balance at end of the year | 1,120.2 | 76.5 | |
Customer relationships | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 108 | 108.6 | |
Additions from Acquisition | 1,057.3 | ||
Dispositions, retirements and other | (0.1) | ||
Foreign currency translation adjustments | 57.4 | (0.5) | |
Balance at end of the year | 1,222.7 | 108 | 108.6 |
Customer relationships | Accumulated amortization | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | (31.5) | (16.8) | |
Amortization | 65.6 | 14.9 | |
Foreign currency translation adjustments | 5.4 | (0.2) | |
Balance at end of the year | (102.5) | (31.5) | (16.8) |
Software | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 9.5 | ||
Balance at end of the year | 16.8 | 9.5 | |
Software | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 33.2 | 27.3 | |
Additions | 3.5 | 0.6 | |
Additions from Acquisition | 0.9 | ||
Dispositions, retirements and other | (1.5) | ||
Assets under construction put into service | 5.4 | 7 | |
Foreign currency translation adjustments | 5.5 | (0.2) | |
Balance at end of the year | 48.5 | 33.2 | 27.3 |
Software | Accumulated amortization | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | (23.7) | (20.8) | |
Amortization | 7.9 | 4.2 | |
Dispositions, retirements and other | (1.3) | ||
Foreign currency translation adjustments | 0.1 | ||
Balance at end of the year | (31.7) | (23.7) | (20.8) |
Assets under construction | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 3.7 | ||
Balance at end of the year | 7.5 | 3.7 | |
Assets under construction | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 3.7 | 6.5 | |
Additions | 7.8 | 4.2 | |
Assets under construction put into service | (5.4) | (7) | |
Foreign currency translation adjustments | 1.4 | ||
Balance at end of the year | 7.5 | 3.7 | 6.5 |
Brand | |||
Intangible assets and goodwill | |||
Balance at end of the year | 21 | ||
Brand | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Additions from Acquisition | 25.3 | ||
Foreign currency translation adjustments | 2.8 | ||
Balance at end of the year | 28.1 | ||
Brand | Accumulated amortization | |||
Intangible assets and goodwill | |||
Amortization | 6.8 | ||
Foreign currency translation adjustments | 0.3 | ||
Balance at end of the year | (7.1) | ||
Standard operating procedures | |||
Intangible assets and goodwill | |||
Balance at end of the year | 8.8 | ||
Standard operating procedures | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Additions | 0.1 | ||
Additions from Acquisition | 10.2 | ||
Foreign currency translation adjustments | 1.1 | ||
Balance at end of the year | 11.4 | ||
Standard operating procedures | Accumulated amortization | |||
Intangible assets and goodwill | |||
Amortization | 2.5 | ||
Foreign currency translation adjustments | 0.1 | ||
Balance at end of the year | (2.6) | ||
Crowd source | |||
Intangible assets and goodwill | |||
Balance at end of the year | 120 | ||
Crowd source | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Additions from Acquisition | 120 | ||
Balance at end of the year | 120 | ||
Goodwill | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 418.4 | ||
Balance at end of the year | 1,500 | 418.4 | |
Goodwill | Cost/Gross amount | |||
Intangible assets and goodwill | |||
Balance at beginning of the year | 418.4 | 421.2 | |
Additions from Acquisition | 1,017 | ||
Foreign currency translation adjustments | 64.6 | (2.8) | |
Balance at end of the year | $ 1,500 | $ 418.4 | $ 421.2 |
Intangible assets and goodwil_3
Intangible assets and goodwill - Impairment testing of goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible assets and goodwill | |||
Period over which management has projected cash flows | 3 years | 3 years | 3 years |
Discount rates applied to cash flow projections | 9.70% | 10.60% | 10.20% |
Growth rates applied to cash flow projections | 3.50% | 2.50% | 2.50% |
Intangible assets and goodwil_4
Intangible assets and goodwill - Business acquisitions (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Apr. 01, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Non-current assets | |||||
Deferred income taxes | $ 6,500,000 | $ 4,700,000 | $ 3,900,000 | ||
Other intangible assets | |||||
Business acquisition | |||||
Ownership interest in businesses acquired (as a percentage) | 100.00% | ||||
Combined acquisitions | |||||
Business acquisition | |||||
Fair value of shares issued | 48,800,000 | ||||
Current assets | |||||
Cash and cash equivalents | 70,600,000 | ||||
Accounts receivable | 91,500,000 | ||||
Other | 10,300,000 | ||||
Total current assets | 172,400,000 | ||||
Non-current assets | |||||
Intangible assets subject to amortization | 1,213,700,000 | ||||
Deferred income taxes | 1,300,000 | ||||
Other | 3,900,000 | ||||
Total non-current assets | 1,295,500,000 | ||||
Total identifiable assets acquired | 1,467,900,000 | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 55,500,000 | ||||
Income and other taxes payable | 58,800,000 | ||||
Advance billings and customer deposits | 1,500,000 | ||||
Current maturities of long-term debt | 8,800,000 | ||||
Total current liabilities | 124,600,000 | ||||
Non-current liabilities | |||||
Long-term debt | 165,200,000 | ||||
Other long-term liabilities | 1,100,000 | ||||
Deferred income taxes | 349,100,000 | ||||
Total non-current liabilities | 515,400,000 | ||||
Total liabilities assumed | 640,000,000 | ||||
Net identifiable assets acquired | 827,900,000 | ||||
Goodwill | 1,017,000,000 | ||||
Net assets acquired | 1,844,900,000 | ||||
Acquisition effected by way of: | |||||
Cash consideration | 1,812,500,000 | ||||
Share consideration | 48,800,000 | ||||
Excess of fair value of consideration paid over the carrying value of business acquired | (16,400,000) | ||||
Total consideration transferred | 1,844,900,000 | ||||
Combined acquisitions | Total | |||||
Non-current assets | |||||
Property, plant and equipment | 41,500,000 | ||||
Combined acquisitions | Right-of-use lease assets | |||||
Non-current assets | |||||
Property, plant and equipment | 35,100,000 | ||||
CCC | |||||
Current assets | |||||
Cash and cash equivalents | 67,900,000 | ||||
Accounts receivable | 48,700,000 | ||||
Other | 1,400,000 | ||||
Total current assets | 118,000,000 | ||||
Non-current assets | |||||
Intangible assets subject to amortization | 569,900,000 | ||||
Other | 1,700,000 | ||||
Total non-current assets | 620,100,000 | ||||
Total identifiable assets acquired | 738,100,000 | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 32,000,000 | ||||
Income and other taxes payable | 47,700,000 | ||||
Current maturities of long-term debt | 8,100,000 | ||||
Total current liabilities | 87,800,000 | ||||
Non-current liabilities | |||||
Long-term debt | 163,400,000 | ||||
Deferred income taxes | 162,600,000 | ||||
Total non-current liabilities | 326,000,000 | ||||
Total liabilities assumed | 413,800,000 | ||||
Net identifiable assets acquired | 324,300,000 | ||||
Goodwill | 548,700,000 | ||||
Net assets acquired | 873,000,000 | ||||
Acquisition effected by way of: | |||||
Cash consideration | 873,000,000 | ||||
Total consideration transferred | $ 873,000,000 | ||||
CCC | Customer relationships | |||||
Business acquisition | |||||
Useful life of intangible assets | 10 years | ||||
CCC | Standard operating procedures | |||||
Business acquisition | |||||
Useful life of intangible assets | 5 years | ||||
CCC | Brand | |||||
Business acquisition | |||||
Useful life of intangible assets | 3 years | ||||
CCC | Software | Minimum | |||||
Business acquisition | |||||
Useful life of intangible assets | 3 years | ||||
CCC | Software | Maximum | |||||
Business acquisition | |||||
Useful life of intangible assets | 5 years | ||||
CCC | Total | |||||
Non-current assets | |||||
Property, plant and equipment | $ 15,900,000 | ||||
CCC | Right-of-use lease assets | |||||
Non-current assets | |||||
Property, plant and equipment | 32,600,000 | ||||
Managed IT Services | |||||
Business acquisition | |||||
Fair value of shares issued | 48,800,000 | ||||
Current assets | |||||
Accounts receivable | 2,400,000 | ||||
Other | 2,900,000 | ||||
Total current assets | 5,300,000 | ||||
Non-current assets | |||||
Intangible assets subject to amortization | 800,000 | ||||
Deferred income taxes | 1,300,000 | ||||
Other | 2,200,000 | ||||
Total non-current assets | 29,700,000 | ||||
Total identifiable assets acquired | 35,000,000 | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 1,100,000 | ||||
Advance billings and customer deposits | 800,000 | ||||
Total current liabilities | 1,900,000 | ||||
Non-current liabilities | |||||
Other long-term liabilities | 700,000 | ||||
Total non-current liabilities | 700,000 | ||||
Total liabilities assumed | 2,600,000 | ||||
Net identifiable assets acquired | 32,400,000 | ||||
Net assets acquired | 32,400,000 | ||||
Acquisition effected by way of: | |||||
Share consideration | 48,800,000 | ||||
Excess of fair value of consideration paid over the carrying value of business acquired | (16,400,000) | ||||
Total consideration transferred | 32,400,000 | ||||
Managed IT Services | Total | |||||
Non-current assets | |||||
Property, plant and equipment | 25,400,000 | ||||
Managed IT Services | Class C common shares | |||||
Business acquisition | |||||
Equity consideration (in shares) | 3,535,470 | ||||
Fair value of shares issued | $ 48,800,000 | ||||
Acquisition effected by way of: | |||||
Share consideration | $ 48,800,000 | ||||
Lionbridge AI | |||||
Business acquisition | |||||
Purchase price | 939,500,000 | ||||
Current assets | |||||
Cash and cash equivalents | 2,700,000 | ||||
Accounts receivable | 40,400,000 | ||||
Other | 6,000,000 | ||||
Total current assets | 49,100,000 | ||||
Non-current assets | |||||
Intangible assets subject to amortization | 643,000,000 | ||||
Total non-current assets | 645,700,000 | ||||
Total identifiable assets acquired | 694,800,000 | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 22,400,000 | ||||
Income and other taxes payable | 11,100,000 | ||||
Advance billings and customer deposits | 700,000 | ||||
Current maturities of long-term debt | 700,000 | ||||
Total current liabilities | 34,900,000 | ||||
Non-current liabilities | |||||
Long-term debt | 1,800,000 | ||||
Other long-term liabilities | 400,000 | ||||
Deferred income taxes | 186,500,000 | ||||
Total non-current liabilities | 188,700,000 | ||||
Total liabilities assumed | 223,600,000 | ||||
Net identifiable assets acquired | 471,200,000 | ||||
Goodwill | 468,300,000 | ||||
Net assets acquired | 939,500,000 | ||||
Acquisition effected by way of: | |||||
Cash consideration | 939,500,000 | ||||
Total consideration transferred | $ 939,500,000 | ||||
Lionbridge AI | Customer relationships | |||||
Business acquisition | |||||
Useful life of intangible assets | 15 years | ||||
Lionbridge AI | Crowd source | |||||
Business acquisition | |||||
Useful life of intangible assets | 8 years | ||||
Lionbridge AI | Total | |||||
Non-current assets | |||||
Property, plant and equipment | $ 200,000 | ||||
Lionbridge AI | Right-of-use lease assets | |||||
Non-current assets | |||||
Property, plant and equipment | $ 2,500,000 |
Intangible assets and goodwil_5
Intangible assets and goodwill - Business acquisition pro forma information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pro forma supplemental information | |||
Revenue arising from contracts with customers | $ 1,581.6 | ||
Net income (loss) | 102.9 | $ 69 | $ 47.1 |
Pro forma, Revenue arising from contracts with customers | 1,886.8 | ||
Pro forma, Net income (loss) | $ 73.5 | ||
Earnings (loss) per share | |||
Basic | $ 0.46 | $ 0.36 | $ 0.25 |
Diluted | 0.46 | $ 0.36 | $ 0.25 |
Pro forma, Basic | 0.33 | ||
Pro forma, Diluted | $ 0.33 | ||
CCC | |||
Pro forma supplemental information | |||
Revenue arising from contracts with customers | $ 32.7 | ||
Net income (loss) | $ (1.7) | ||
Earnings (loss) per share | |||
Basic | $ (0.01) | ||
Diluted | $ (0.01) | ||
Revenue arising from contracts with customers | $ 395.4 | ||
Net income | 76.5 | ||
Managed IT Services | |||
Pro forma supplemental information | |||
Pro forma, Revenue arising from contracts with customers | 33.4 | ||
Pro forma, Net income (loss) | $ 3.3 | ||
Earnings (loss) per share | |||
Pro forma, Basic | $ 0.02 | ||
Pro forma, Diluted | $ 0.02 | ||
Revenue arising from contracts with customers | $ 76.9 | ||
Net income | 3.1 | ||
Lionbridge AI | |||
Pro forma supplemental information | |||
Revenue arising from contracts with customers | 239.1 | ||
Net income (loss) | $ (31) | ||
Earnings (loss) per share | |||
Basic | $ (0.14) | ||
Diluted | $ (0.14) | ||
Revenue arising from contracts with customers | $ 0 | ||
Net income | $ 0 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provisions reconciliation | ||||
Balance at beginning of year | $ 170.8 | $ 216.5 | ||
Additions | 67.4 | 17 | ||
Use | (118.1) | (55.9) | ||
Reversal | (84.6) | (13.5) | ||
Additions from acquisition | 8.4 | |||
Interest effect | 1.9 | (1.7) | ||
Foreign currency translation adjustments | (0.3) | 216.5 | ||
Balance at end of year | 37.1 | 170.8 | ||
Current | $ 17.4 | $ 160.5 | ||
Non-current | 19.7 | 10.3 | ||
Total | 37.1 | 170.8 | 37.1 | 170.8 |
Employee related | ||||
Provisions reconciliation | ||||
Balance at beginning of year | 13.5 | 7.3 | ||
Additions | 9.3 | 6.7 | ||
Use | (1.8) | (0.6) | ||
Reversal | (1) | |||
Interest effect | 0.1 | |||
Foreign currency translation adjustments | (0.3) | 7.3 | ||
Balance at end of year | 19.7 | 13.5 | ||
Current | 13.5 | |||
Non-current | 19.7 | |||
Total | 19.7 | 13.5 | 19.7 | 13.5 |
Written put options | ||||
Provisions reconciliation | ||||
Balance at beginning of year | 147 | 202.7 | ||
Additions | 0.1 | |||
Use | (75.6) | (50.1) | ||
Reversal | (73.3) | (12.2) | ||
Additions from acquisition | 8.3 | |||
Interest effect | 1.9 | (1.8) | ||
Foreign currency translation adjustments | 202.7 | |||
Balance at end of year | 147 | |||
Current | 147 | |||
Total | 147 | 147 | 147 | |
Other | ||||
Provisions reconciliation | ||||
Balance at beginning of year | 10.3 | 6.5 | ||
Additions | 58.1 | 10.2 | ||
Use | (40.7) | (5.2) | ||
Reversal | (10.3) | (1.3) | ||
Additions from acquisition | 0.1 | |||
Foreign currency translation adjustments | 6.5 | |||
Balance at end of year | 17.4 | 10.3 | ||
Current | 17.4 | |||
Non-current | 10.3 | |||
Total | $ 17.4 | $ 10.3 | $ 17.4 | $ 10.3 |
Provisions - Additional informa
Provisions - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provisions | |||
Changes in business combination related provisions | $ (73.5) | $ (14.6) | $ (12.6) |
Reversal of the established provision | 84.6 | 13.5 | |
Cash consideration paid | 70 | 50.8 | |
Provisions made | 67.4 | 17 | |
Expenses in support of the company's response to the COVID-19 pandemic | 8.6 | ||
VoxPr | |||
Provisions | |||
Changes in business combination related provisions | 2.2 | ||
Xavient Digital LLC | |||
Provisions | |||
Consideration held in escrow | 5 | ||
Contingent consideration | 5.2 | ||
CCC | |||
Provisions | |||
Cash consideration payable | 873 | ||
Restructuring and integration-related costs | 25.8 | ||
Lionbridge AI | |||
Provisions | |||
Cash consideration payable | 939.5 | ||
Legal, transaction support and other fees | 17.7 | ||
Written put options | |||
Provisions | |||
Reversal of the established provision | 73.3 | 12.2 | |
Provisions made | 0.1 | ||
Written put options | Xavient Digital LLC | |||
Provisions | |||
Reversal of the established provision | 73.3 | 10 | |
Other | |||
Provisions | |||
Reversal of the established provision | 10.3 | 1.3 | |
Provisions made | $ 58.1 | 10.2 | |
Other | Xavient Digital LLC | |||
Provisions | |||
Reversal of the established provision | 1.3 | ||
Cash received from an escrow account | 10 | ||
Provisions made | $ 10 |
Long-term debt (Details)
Long-term debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Details of long-term debt | |||
Lease liabilities | $ 208.6 | $ 188.7 | |
Long-term debt | 1,765.7 | 520.5 | |
Current liabilities | 92.3 | 42.8 | $ 32.7 |
Non-current | 1,673.4 | 477.7 | $ 429.6 |
Credit Facility | |||
Details of long-term debt | |||
Borrowings | 1,568 | 335.5 | |
Deferred debt transaction costs | (10.9) | (3.7) | |
Long-term debt excluding Lease liabilities | $ 1,557.1 | $ 331.8 |
Long-term debt - Credit facilit
Long-term debt - Credit facility (Details) - USD ($) $ in Millions | Feb. 03, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IPO | |||
Disclosure of detailed information about borrowings | |||
Proceeds from issuing shares | $ 490 | ||
Maximum | Acquisition with aggregate cash consideration greater than $60 million | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 4.50 | ||
Later than eight fiscal quarters | Maximum | Acquisition with aggregate cash consideration greater than $60 million | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 3.75 | ||
Credit Facility | |||
Disclosure of detailed information about borrowings | |||
Undrawn borrowing facilities | $ 132 | $ 121 | |
Outstanding | 1,568 | 335.5 | |
Maximum aggregate amount of credit facility | 1,700 | 456.5 | |
Credit Facility | Acquisition with aggregate cash consideration greater than $60 million | |||
Disclosure of detailed information about borrowings | |||
Minimum acquisition aggregate cash consideration threshold to increase the maximum permitted net debt to EBIDTA ratio | $ 60 | ||
Credit Facility | Minimum | |||
Disclosure of detailed information about borrowings | |||
Operating cash flow to debt service ratio | 1.50 | ||
Credit Facility | 2021 | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 5.25 | ||
Credit Facility | Quarter 1, First Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 5.25 | ||
Credit Facility | Quarter 2, First Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 5.25 | ||
Credit Facility | Quarter 3, First Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 5.25 | ||
Credit Facility | Second Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 4.50 | ||
Credit Facility | Quarter 1, Second Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 4.50 | ||
Credit Facility | Quarter 2, Second Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 4.50 | ||
Credit Facility | Quarter 3, Second Year | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 4.50 | ||
Credit Facility | Thereafter | Maximum | |||
Disclosure of detailed information about borrowings | |||
Net debt to EBITDA ratio | 3.75 | ||
Revolving components | |||
Disclosure of detailed information about borrowings | |||
Undrawn borrowing facilities | $ 132 | 121 | |
Maximum aggregate amount of credit facility | 850 | 350 | |
Term loan components | |||
Disclosure of detailed information about borrowings | |||
Maximum aggregate amount of credit facility | $ 850 | 106.5 | |
Fixed interest rate | 2.64% | ||
Percentage of principal advance required to be repaid each year of the term of the agreement | 1.25% | ||
TELUS Corporation | |||
Disclosure of detailed information about borrowings | |||
Undrawn borrowing facilities | $ 132 | ||
TELUS Corporation | Credit Facility | |||
Disclosure of detailed information about borrowings | |||
Outstanding | 140.1 | ||
TELUS Corporation | Revolving components | |||
Disclosure of detailed information about borrowings | |||
Outstanding | 65.1 | ||
TELUS Corporation | Term loan components | |||
Disclosure of detailed information about borrowings | |||
Outstanding | $ 75 | ||
TELUS Corporation, share of lending, as a percent | 8.90% | ||
Subsidiaries | Credit Facility | |||
Disclosure of detailed information about borrowings | |||
Undrawn borrowing facilities | $ 0 | 2.2 | |
Other lenders | Credit Facility | |||
Disclosure of detailed information about borrowings | |||
Outstanding | $ 1,427.9 | $ 335.5 | |
Borrowings weighted average interest rate | 2.90% | 3.25% | |
Other lenders | Revolving components | |||
Disclosure of detailed information about borrowings | |||
Outstanding | $ 652.9 | $ 229 | |
Other lenders | Term loan components | |||
Disclosure of detailed information about borrowings | |||
Outstanding | $ 775 | $ 106.5 |
Long-term debt - Lease liabilit
Long-term debt - Lease liabilities (Details) | Dec. 31, 2020 |
Lease liabilities | |
Long-term debt | |
Weighted average interest rate | 6.63% |
Long-term debt - Long-term debt
Long-term debt - Long-term debt maturities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | $ 1,776.6 |
Future cash outflows in respect of associated interest and like carrying costs | 219.1 |
Undiscounted contractual maturities | 1,995.7 |
Composite long-term debt | |
Long-term debt maturities | |
Undiscounted contractual maturities | 1,995.7 |
U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 1,568 |
Future cash outflows in respect of associated interest and like carrying costs | 173.9 |
Undiscounted contractual maturities | 1,741.9 |
U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 58.2 |
Future cash outflows in respect of associated interest and like carrying costs | 12.4 |
Undiscounted contractual maturities | 70.6 |
U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 1,626.2 |
Future cash outflows in respect of associated interest and like carrying costs | 186.3 |
Undiscounted contractual maturities | 1,812.5 |
Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 88.9 |
Future cash outflows in respect of associated interest and like carrying costs | 19.8 |
Undiscounted contractual maturities | 108.7 |
European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 61.5 |
Future cash outflows in respect of associated interest and like carrying costs | 13 |
Undiscounted contractual maturities | 74.5 |
2021 | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 92.9 |
2021 | U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 42.5 |
2021 | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 14.9 |
2021 | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 57.4 |
2021 | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 22.1 |
2021 | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 13.4 |
2022 | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 309.7 |
2022 | U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 267.5 |
2022 | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 14.4 |
2022 | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 281.9 |
2022 | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 16.1 |
2022 | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 11.7 |
2023 | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 66.7 |
2023 | U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 30 |
2023 | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 13.1 |
2023 | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 43.1 |
2023 | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 15.7 |
2023 | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 7.9 |
2024 | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 53.4 |
2024 | U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 30 |
2024 | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 5.4 |
2024 | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 35.4 |
2024 | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 12.5 |
2024 | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 5.5 |
2025 | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 1,212.1 |
2025 | U.S. Dollars | Long-term debt, excluding leases | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 1,198 |
2025 | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 4.2 |
2025 | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 1,202.2 |
2025 | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 7 |
2025 | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 2.9 |
Thereafter | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 41.8 |
Thereafter | U.S. Dollars | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 6.2 |
Thereafter | U.S. Dollars | Long-term debt | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 6.2 |
Thereafter | Other currencies | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | 15.5 |
Thereafter | European euro | Lease liabilities | |
Long-term debt maturities | |
Future cash outflows in respect of composite long-term debt principal repayments | $ 20.1 |
Share capital (Details)
Share capital (Details) | Feb. 03, 2021USD ($)Vote / sharesEquityInstruments$ / sharesshares | Feb. 02, 2021Vote / shares$ / shares | Dec. 29, 2020USD ($)shares | Oct. 19, 2020USD ($) | Sep. 29, 2020Options | Apr. 01, 2020USD ($)shares | Jan. 29, 2020USD ($)$ / sharesshares | Feb. 12, 2018USD ($)shares | Feb. 06, 2018USD ($)shares | Apr. 30, 2020USD ($)Options$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018USD ($)shares | Sep. 30, 2020$ / shares |
Common Share capital | ||||||||||||||
Proceeds from issue of ordinary shares | $ 655,600,000 | $ 18,900,000 | ||||||||||||
Percentage of Company's outstanding common shares collectively owned (as a percent) | 4.00% | |||||||||||||
Basic total weighted average number of common shares outstanding | shares | 224,156,034 | 189,681,394 | 188,693,316 | |||||||||||
Effect of dilutive securities - Share option awards | shares | 1,366,938 | 629,104 | 401,897 | |||||||||||
Diluted total weighted average number of common shares outstanding | shares | 225,522,972 | 190,310,498 | 189,095,213 | |||||||||||
TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Proceeds from issue of ordinary shares | $ 126,100,000 | |||||||||||||
Managed IT Services | ||||||||||||||
Common Share capital | ||||||||||||||
Fair value of shares issued | $ 48,800,000 | |||||||||||||
CCC | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Proceeds from issue of ordinary shares | $ 126,100,000 | |||||||||||||
IPO | ||||||||||||||
Common Share capital | ||||||||||||||
Share split ratio | EquityInstruments | 4.5 | |||||||||||||
Shares issued (in shares) | shares | 20,997,375 | |||||||||||||
Share issue price (in dollars per share) | $ / shares | $ 25 | |||||||||||||
Net proceeds | $ 490,000,000 | |||||||||||||
Subordinate voting shares | IPO | ||||||||||||||
Common Share capital | ||||||||||||||
Number of votes per common share | Vote / shares | 1 | |||||||||||||
Shares issued (in shares) | shares | 20,997,375 | |||||||||||||
Share issue price (in dollars per share) | $ / shares | $ 25 | |||||||||||||
Net proceeds | $ 490,000,000 | |||||||||||||
Multiple voting shares | IPO | ||||||||||||||
Common Share capital | ||||||||||||||
Number of votes per common share | Vote / shares | 10 | |||||||||||||
Class A, B, and C common shares | CCC | ||||||||||||||
Common Share capital | ||||||||||||||
Per share value paid | $ / shares | $ 8.46 | |||||||||||||
Class A and B common shares | Lionbridge AI | ||||||||||||||
Common Share capital | ||||||||||||||
Per share value paid | $ / shares | $ 19.82 | |||||||||||||
Estimated fair market value of common shares | $ / shares | $ 22.36 | |||||||||||||
Class A common shares | ||||||||||||||
Common Share capital | ||||||||||||||
Number of votes per common share | Vote / shares | 1.0001 | |||||||||||||
Shares issued | shares | 4,180,995 | 148,421,976 | 120,762,495 | 120,762,495 | ||||||||||
Issue of equity | $ 348,800,000 | $ 25,700,000 | ||||||||||||
Class A common shares | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued | shares | 25,700,000 | |||||||||||||
Shares issued (in shares) | shares | 7,552,089 | 5,434,780 | 14,672,610 | 4,180,995 | 5,434,780 | |||||||||
Issue of equity | $ 25,700,000 | |||||||||||||
Proceeds from issue of ordinary shares | $ 149,600,000 | $ 75,000,000 | $ 75,000,000 | |||||||||||
Class A common shares | CCC | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 14,672,610 | |||||||||||||
Class A common shares | Lionbridge AI | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 7,552,089 | |||||||||||||
Proceeds from issue of ordinary shares | $ 149,600,000 | |||||||||||||
Class B common shares | ||||||||||||||
Common Share capital | ||||||||||||||
Number of votes per common share | Vote / shares | 1 | |||||||||||||
Shares issued | shares | 82,144,186 | 65,251,305 | 65,251,305 | |||||||||||
Issue of equity | $ 214,800,000 | $ 13,900,000 | ||||||||||||
Class B common shares | Baring Private Equity Asia | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 4,054,954 | 8,021,790 | 2,251,305 | |||||||||||
Proceeds from issue of ordinary shares | $ 80,400,000 | $ 67,900,000 | $ 13,900,000 | |||||||||||
Share options granted | Options | 4,816,138 | 4,816,138 | ||||||||||||
Exercise price of options | $ / shares | $ 13.80 | |||||||||||||
Aggregate consideration | $ 66,500,000 | |||||||||||||
Class B common shares | CCC | Baring Private Equity Asia | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 8,021,790 | |||||||||||||
Proceeds from issue of ordinary shares | $ 67,900,000 | |||||||||||||
Class B common shares | Lionbridge AI | Baring Private Equity Asia | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 4,054,954 | |||||||||||||
Proceeds from issue of ordinary shares | $ 80,400,000 | |||||||||||||
Class C common shares | ||||||||||||||
Common Share capital | ||||||||||||||
Number of votes per common share | Vote / shares | 1.0002 | |||||||||||||
Shares issued | shares | 4,178,969 | 418,500 | 418,500 | |||||||||||
Number of shares issued upon conversion of Class A common shares | shares | 1 | |||||||||||||
Issue of equity | $ 50,700,000 | |||||||||||||
Class C common shares | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares reserved for issuance | shares | 3,754,066 | 1,678 | ||||||||||||
Shares issued (in shares) | shares | 225,000 | |||||||||||||
Class C common shares | Managed IT Services | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued for acquisition | 3,535,470 | |||||||||||||
Fair value of shares issued | $ 48,800,000 | |||||||||||||
Class C common shares | Managed IT Services | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued for acquisition | 3,535,470 | |||||||||||||
Fair value of shares issued | $ 48,800,000 | |||||||||||||
Class C common shares | CCC | TELUS Corporation | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 225,000 | |||||||||||||
Class D common shares | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued | shares | 3,249,094 | 3,249,094 | 3,249,094 | |||||||||||
Issue of equity | $ 20,000,000 | |||||||||||||
Class D common shares | Company controlled by a member of our Senior Leadership Team | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 812,272 | |||||||||||||
Proceeds from issue of ordinary shares | $ 5,000,000 | |||||||||||||
Class D common shares | Xavient Information Systems | ||||||||||||||
Common Share capital | ||||||||||||||
Number of shares issued, held in escrow | shares | 487,363 | |||||||||||||
Shares issued for acquisition | 2,436,822 | |||||||||||||
Fair value of shares issued | $ 15,000,000 | |||||||||||||
Class E common shares | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued | shares | 6,520,517 | |||||||||||||
Issue of equity | $ 90,000,000 | |||||||||||||
Class E common shares | CCC | ||||||||||||||
Common Share capital | ||||||||||||||
Shares issued (in shares) | shares | 6,520,518 | |||||||||||||
Proceeds from issue of ordinary shares | $ 90,000,000 | |||||||||||||
Per share value paid | $ / shares | $ 13.8 | |||||||||||||
Convertible Redeemable Preferred A Shares | ||||||||||||||
Common Share capital | ||||||||||||||
Redeemable price per share (in Cdn$ per share) | $ / shares | $ 10,000 | |||||||||||||
Convertible Redeemable Preferred B Shares | ||||||||||||||
Common Share capital | ||||||||||||||
Redeemable price per share (in Cdn$ per share) | $ / shares | $ 1,000 |
Share capital - Per share amoun
Share capital - Per share amounts (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effect of dilutive securities | |||
Basic total weighted average number of common shares outstanding | 224,156,034 | 189,681,394 | 188,693,316 |
Effect of dilutive securities - Share option awards | 1,366,938 | 629,104 | 401,897 |
Diluted total weighted average number of common shares outstanding | 225,522,972 | 190,310,498 | 189,095,213 |
Contingent liabilities (Details
Contingent liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Indemnification obligation | ||
Estimated financial effect of contingent liabilities | ||
Indemnification obligations | ||
Indemnification obligation | ||
Estimated financial effect of contingent liabilities | 0 | |
Claims and lawsuits | ||
Claims and lawsuits | ||
Losses on litigation settlements | $ 3 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions | |||||||
Accounts with TELUS Corporation and subsidiaries, Due from | $ 49.1 | $ 30.2 | |||||
Accounts with TELUS Corporation and subsidiaries, Due to | 31 | 26 | |||||
Amounts due from affiliates, receivable period | 30 days | ||||||
Amounts due to affiliates, payment period | 30 days | ||||||
Term of master service agreement | 10 years | ||||||
TELUS Corporation and its subsidiaries | |||||||
Related party transactions | |||||||
Revenues from services provided to | $ 310.2 | $ 267.7 | $ 203.2 | ||||
Goods and services purchased (from) | (29.2) | (4.9) | (5.4) | ||||
Gross profit | 281 | 262.8 | 197.8 | ||||
Receipts from related parties | (284) | (251.5) | (199.3) | ||||
Payments to related parties | 38 | 27.3 | 19.4 | ||||
Payments made by related parties on our behalf | (18.9) | (35.6) | (27.1) | ||||
Issuance of Common A Shares | 25.7 | ||||||
Foreign currency adjustments | (2.2) | 0.1 | 0.4 | ||||
Change in balance | 13.9 | 3.1 | 16.9 | ||||
Accounts with TELUS Corporation and subsidiaries, Balance, beginning of year | 1.1 | (15.8) | |||||
Accounts with TELUS Corporation and subsidiaries, Balance, beginning of year | $ 18.1 | 4.2 | 1.1 | ||||
Accounts with TELUS Corporation and subsidiaries, Balance, end of year | 1.1 | ||||||
Accounts with TELUS Corporation and subsidiaries, Balance, end of year | 18.1 | 4.2 | 1.1 | ||||
Accounts with TELUS Corporation and subsidiaries, Due from | 49.1 | 30.2 | $ 21.4 | ||||
Accounts with TELUS Corporation and subsidiaries, Due to | (31) | (26) | (20.3) | ||||
Accounts with TELUS Corporation and subsidiaries, Net due | 1.1 | 1.1 | 1.1 | ||||
Accounts with TELUS Corporation and subsidiaries, Net due | 18.1 | 18.1 | 4.2 | 1.1 | 18.1 | 4.2 | 1.1 |
TELUS Corporation | |||||||
Related party transactions | |||||||
Receipts from related parties | (0.2) | (0.2) | |||||
Payments to related parties | 38 | 27.3 | 19.4 | ||||
Payments made by related parties on our behalf | (13.8) | (26.1) | (15) | ||||
Issuance of Common A Shares | 25.7 | ||||||
Foreign currency adjustments | 0.1 | 0.7 | |||||
Change in balance | 24 | 1.1 | 30.8 | ||||
Accounts with TELUS Corporation and subsidiaries, Balance, beginning of year | 1.9 | (28.9) | |||||
Accounts with TELUS Corporation and subsidiaries, Balance, beginning of year | 27 | 3 | 1.9 | ||||
Accounts with TELUS Corporation and subsidiaries, Balance, end of year | 1.9 | ||||||
Accounts with TELUS Corporation and subsidiaries, Balance, end of year | 27 | 3 | 1.9 | ||||
Accounts with TELUS Corporation and subsidiaries, Due from | 27 | 3 | 3.1 | ||||
Accounts with TELUS Corporation and subsidiaries, Due to | (1.2) | ||||||
Accounts with TELUS Corporation and subsidiaries, Net due | 1.9 | 1.9 | 1.9 | ||||
Accounts with TELUS Corporation and subsidiaries, Net due | 27 | 27 | 3 | 1.9 | 27 | 3 | 1.9 |
Minimum annual spend amount | 200 | ||||||
Subsidiaries of TELUS Corporation | |||||||
Related party transactions | |||||||
Revenues from services provided to | 310.2 | 267.7 | 203.2 | ||||
Goods and services purchased (from) | (29.2) | (4.9) | (5.4) | ||||
Gross profit | 281 | 262.8 | 197.8 | ||||
Receipts from related parties | (283.8) | (251.3) | (199.3) | ||||
Payments made by related parties on our behalf | (5.1) | (9.5) | (12.1) | ||||
Foreign currency adjustments | (2.2) | (0.3) | |||||
Change in balance | (10.1) | 2 | (13.9) | ||||
Accounts with TELUS Corporation and subsidiaries, Balance, beginning of year | (8.9) | 1.2 | (0.8) | 13.1 | |||
Accounts with TELUS Corporation and subsidiaries, Balance, end of year | (8.9) | 1.2 | (0.8) | ||||
Accounts with TELUS Corporation and subsidiaries, Due from | 22.1 | 27.2 | 18.3 | ||||
Accounts with TELUS Corporation and subsidiaries, Due to | (31) | (26) | (19.1) | ||||
Accounts with TELUS Corporation and subsidiaries, Net due | $ (8.9) | $ (8.9) | $ 1.2 | $ (0.8) | $ (8.9) | $ 1.2 | $ (0.8) |
Related party transactions - Ot
Related party transactions - Other transactions (Details) - USD ($) | Feb. 03, 2021 | Dec. 29, 2020 | Apr. 01, 2020 | Jan. 29, 2020 | Feb. 06, 2018 | Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2018 |
Related party transactions | ||||||||
Shares issued, net of financing costs | $ 655,600,000 | $ 18,900,000 | ||||||
TELUS Corporation | ||||||||
Related party transactions | ||||||||
Shares issued, net of financing costs | $ 126,100,000 | |||||||
Undrawn borrowing facilities | 132,000,000 | |||||||
Managed IT Services | ||||||||
Related party transactions | ||||||||
Fair value of shares issued | 48,800,000 | |||||||
Class A common shares | ||||||||
Related party transactions | ||||||||
Shares issued | 348,800,000 | $ 25,700,000 | ||||||
Class A common shares | TELUS Corporation | ||||||||
Related party transactions | ||||||||
Shares issued (in shares) | 7,552,089 | 5,434,780 | 14,672,610 | 4,180,995 | 5,434,780 | |||
Shares issued | $ 25,700,000 | |||||||
Shares issued, net of financing costs | $ 149,600,000 | $ 75,000,000 | $ 75,000,000 | |||||
Class C common shares | ||||||||
Related party transactions | ||||||||
Shares issued | $ 50,700,000 | |||||||
Class C common shares | TELUS Corporation | ||||||||
Related party transactions | ||||||||
Shares issued (in shares) | 225,000 | |||||||
Class C common shares | Managed IT Services | ||||||||
Related party transactions | ||||||||
Shares issued for acquisition | 3,535,470 | |||||||
Fair value of shares issued | $ 48,800,000 | |||||||
Class C common shares | Managed IT Services | TELUS Corporation | ||||||||
Related party transactions | ||||||||
Shares issued for acquisition | 3,535,470 | |||||||
Fair value of shares issued | $ 48,800,000 | |||||||
Multiple voting shares | TELUS Corporation | ||||||||
Related party transactions | ||||||||
Number of shares converted to subordinate voting shares | 6,484,296 |
Related party transactions - Tr
Related party transactions - Transactions with Baring Private Equity Asia (Details) $ / shares in Units, $ in Millions | Feb. 03, 2021shares | Dec. 29, 2020USD ($)shares | Sep. 29, 2020USD ($)Options | Jan. 29, 2020USD ($)shares | Feb. 06, 2018USD ($)shares | Apr. 30, 2020Options$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Related party transactions | |||||||||
Due from affiliated companies | $ 49.1 | $ 30.2 | |||||||
Due to affiliated companies | 31 | 26 | |||||||
Shares issued, net of financing costs | 655.6 | $ 18.9 | |||||||
Baring Private Equity Asia | |||||||||
Related party transactions | |||||||||
Due from affiliated companies | 0 | 0 | |||||||
Due to affiliated companies | $ 0 | $ 0 | |||||||
Class B common shares | Baring Private Equity Asia | |||||||||
Related party transactions | |||||||||
Shares issued (in shares) | shares | 4,054,954 | 8,021,790 | 2,251,305 | ||||||
Shares issued, net of financing costs | $ 80.4 | $ 67.9 | $ 13.9 | ||||||
Granted | Options | 4,816,138 | 4,816,138 | |||||||
Aggregate consideration for exercising options | $ 66.5 | ||||||||
Exercise price of options | $ / shares | $ 13.80 | ||||||||
Multiple voting shares | Baring Private Equity Asia | |||||||||
Related party transactions | |||||||||
Number of shares converted to subordinate voting shares | shares | 15,068,329 |
Related party transactions - Se
Related party transactions - Senior Leadership Team (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)OptionsEquityInstruments$ / shares | Dec. 31, 2019USD ($)OptionsEquityInstruments$ / shares | Dec. 31, 2018USD ($)OptionsEquityInstruments$ / shares | |
TELUS Corporation | Phantom restricted share units | |||
Related party transactions | |||
Number of restricted share units awarded | EquityInstruments | 13,217 | 94,342 | 83,040 |
Grant-date-fair-value of awarded units | $ 24.97 | $ 21.38 | $ 22.55 |
Senior Leadership Team | |||
Related party transactions | |||
Short-term benefits | $ | $ 3.9 | $ 3.2 | $ 3 |
Post-employment pension and other benefits | $ | 1 | 0.6 | 0.5 |
Share-based compensation | $ | $ 5.1 | $ 6 | $ 3.8 |
Share options granted | Options | 0 | 460,917 | 460,930 |
Exercise price of options | $ 8.46 | $ 6.18 | |
Number of months base salary considered for severance payments | 18 months | ||
Senior Leadership Team | Phantom restricted share units | |||
Related party transactions | |||
Number of restricted share units awarded | EquityInstruments | 0 | 277,020 | 317,938 |
Grant-date-fair-value of awarded units | $ 8.46 | $ 6.18 | |
Senior Leadership Team | TELUS Corporation | Phantom restricted share units | |||
Related party transactions | |||
Grant-date-fair-value of awarded units | $ 21.38 | $ 22.63 | |
Senior Leadership Team | TELUS Corporation | Telus Phantom Restricted Share [Member] | |||
Related party transactions | |||
Number of restricted share units awarded | EquityInstruments | 0 | 83,818 | 65,828 |
Additional financial informat_3
Additional financial information - Statements of income and other comprehensive income (Details) - Operating revenues benchmark - item | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers | |||
Number of customers accounting for more than 10% of revenues | 2 | 2 | 2 |
TELUS Corporation | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Concentration risk percentage | 20.00% | 26.00% | 24.00% |
Arm's-length related party | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Concentration risk percentage | 16.00% | 12.00% | 14.00% |
Additional financial informat_4
Additional financial information - Statements of financial position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | ||
Accrued receivables-current | $ 20.5 | $ 11.6 |
Accounts receivable - current | 303.3 | 176.6 |
Other long-term assets | ||
Accrued receivables-non-current | 31.7 | 25.8 |
Deferred expenses | 2 | 1 |
Other non-current assets | 33.7 | 26.8 |
Accounts payable and accrued liabilities | ||
Accrued liabilities | 63.9 | 34.7 |
Payroll and other employee-related liabilities | 102.5 | 58.3 |
Restricted share units liability | 12.5 | 9.5 |
Accrued payroll and other liabilities | 178.9 | 102.5 |
Trade accounts payable | 18.8 | 20.3 |
Other | 57 | 29.4 |
Trade and other current payables | 254.7 | 152.2 |
Customer accounts receivable | ||
Accounts receivable | ||
Customer accounts receivable | 162.8 | 109.8 |
Accrued receivables-customer | 125.2 | 57 |
Allowance for doubtful accounts | (5.2) | (1.8) |
Customer accounts receivable | $ 282.8 | $ 165 |
Additional financial informat_5
Additional financial information - Operating activities and investing activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net change in non-cash operating working capital | |||
Accounts receivable | $ (29.4) | $ (38) | $ (33.1) |
Due to and from affiliated companies, net | (13.9) | (3.1) | 8.8 |
Prepaid expenses | 8.4 | (4) | 1.1 |
Other long-term assets | (3) | (11.1) | (0.6) |
Accounts payable and accrued liabilities | 28.8 | 25 | 3.7 |
Income and other taxes receivable and payable, net | 4.2 | 0.4 | (3.4) |
Advance billings and customer deposits | 2.9 | (9.5) | 9.6 |
Provisions | 7.8 | 11.9 | |
Other long-term liabilities | (4.7) | 0.2 | |
Net change in non-cash operating working capital | 1.1 | (28.2) | (13.9) |
Capital expenditures | |||
Property, plant and equipment | (89.7) | (126.2) | (42.3) |
Intangible assets | (11.4) | (4.8) | (8.2) |
Total | (101.1) | (131) | (50.5) |
Additions arising from leases | 27.5 | 68.2 | |
Change in associated non-cash investing working capital | 14.4 | 10.1 | 3 |
Cash payments for capital assets and software | (59.2) | (52.7) | (47.5) |
To Eliminate Effect Of Gross Settlement Of Derivatives Used To Manage Currency Risks Arising From Long Term Debt [Member] | Longterm Borrowings Including Effect Of Derivatives To Manage Foreign Currency Risks [Member] | |||
Net change in non-cash operating working capital | |||
Net change in non-cash operating working capital | $ 1.1 | $ (28.2) | $ (13.9) |
Additional financial informat_6
Additional financial information - Changes in liabilities arising from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | $ 520.5 | $ 308 | $ 270.3 |
Issued or received | 1,854 | 72 | 75 |
Redemptions, repayments or payments | (819) | (96) | (38.6) |
Foreign exchange movement (Note 4(i)) | 12 | ||
Other | 198.2 | 82.2 | 1.3 |
Ending | 1,765.7 | 520.5 | 308 |
Short-term borrowings | |||
Changes in liabilities arising from financing activities | |||
Issued or received | 22 | 0.6 | 10 |
Redemptions, repayments or payments | (22) | (0.6) | (14.6) |
Other | 4.6 | ||
TELUS International (Cda) Inc. credit facility | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 335.5 | 312.5 | 275.6 |
Issued or received | 1,854 | 72 | 75 |
Redemptions, repayments or payments | (621.5) | (49) | (38.1) |
Ending | 1,568 | 335.5 | 312.5 |
Other | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Redemptions, repayments or payments | (138.9) | ||
Other | 138.9 | ||
Lease liabilities | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 188.7 | 0.4 | |
Redemptions, repayments or payments | (58.6) | (47) | |
Foreign exchange movement (Note 4(i)) | 12 | ||
Other | 66.5 | 81 | |
Ending | 208.6 | 188.7 | 0.4 |
Deferred debt transaction costs | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | (3.7) | (4.9) | (6.1) |
Redemptions, repayments or payments | (0.5) | ||
Other | (7.2) | 1.2 | 1.7 |
Ending | $ (10.9) | (3.7) | (4.9) |
Voxpro Limited longterm debt | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 0.4 | 0.8 | |
Other | (0.4) | ||
Ending | 0.4 | ||
Xavient promissory note | Short-term borrowings | |||
Changes in liabilities arising from financing activities | |||
Issued or received | 10 | ||
Redemptions, repayments or payments | (10) | ||
Additions from acquisitions | Short-term borrowings | |||
Changes in liabilities arising from financing activities | |||
Redemptions, repayments or payments | (4.6) | ||
Other | 4.6 | ||
Intercompany advances received from TELUS Corporation | Intercompany advances | |||
Changes in liabilities arising from financing activities | |||
Beginning | 26.2 | ||
Other | (26.2) | ||
IFRS 16 effects | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 154.3 | ||
Ending | 154.3 | ||
IFRS 16 effects | Lease liabilities | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 154.3 | ||
Ending | 154.3 | ||
As adjusted | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 462.3 | ||
Ending | 462.3 | ||
As adjusted | TELUS International (Cda) Inc. credit facility | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 312.5 | ||
Ending | 312.5 | ||
As adjusted | Lease liabilities | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | 154.7 | ||
Ending | 154.7 | ||
As adjusted | Deferred debt transaction costs | Long-term debt | |||
Changes in liabilities arising from financing activities | |||
Beginning | $ (4.9) | ||
Ending | $ (4.9) |
Segment information - Geographi
Segment information - Geographical information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographic information | |||
Revenue arising from contracts with customers | $ 1,581.6 | $ 1,019.6 | $ 834.6 |
Net long-lived assets | 3,156.4 | 809.1 | |
Philippines | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 286.8 | 283.5 | 240.2 |
Net long-lived assets | 86.5 | 96.4 | |
Germany | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 242 | ||
Net long-lived assets | 21.6 | ||
United States | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 207.7 | 242.5 | 165.5 |
Net long-lived assets | 24.1 | 13.4 | |
Guatemala | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 151.7 | 118.4 | 71.7 |
Net long-lived assets | 21.9 | 46.9 | |
Canada | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 138.7 | 16 | 14.9 |
Net long-lived assets | 2,796.4 | 509.6 | |
El Salvador | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 111 | 91.4 | 101.1 |
Net long-lived assets | 79.5 | 23 | |
Bulgaria | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 104 | 89.5 | 75.5 |
Net long-lived assets | 35.8 | 37.1 | |
Ireland | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 92.3 | 94.1 | 107.5 |
Net long-lived assets | 44 | 51.9 | |
Spain | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 81.5 | ||
India | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 46.4 | 42.4 | 28.1 |
Net long-lived assets | 19.1 | 17.8 | |
Romania | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 43.5 | 38.7 | 29.5 |
Other | |||
Disclosure of geographic information | |||
Revenue arising from contracts with customers | 76 | 3.1 | $ 0.6 |
Net long-lived assets | $ 27.5 | $ 13 |