Exhibit 99.1

TELUS CORPORATION

CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS

(UNAUDITED)

MARCH 31, 2022

condensed interim consolidated statements of income and other comprehensive income (unaudited)

			Three months
Periods ended March 31 (millions except per share amounts)	Note		2022			2021
OPERATING REVENUES
Service			$	3,765		$	3,502
Equipment				491			520
Operating revenues (arising from contracts with customers)		6		4,256			4,022
Other income		7		26			2
Operating revenues and other income				4,282			4,024
OPERATING EXPENSES
Goods and services purchased				1,594			1,548
Employee benefits expense		8		1,119			1,015
Depreciation		17		551			524
Amortization of intangible assets		18		291			265
				3,555			3,352
OPERATING INCOME				727			672
Financing costs		9		179			207
INCOME BEFORE INCOME TAXES				548			465
Income taxes		10		144			132
NET INCOME				404			333
OTHER COMPREHENSIVE INCOME (LOSS)		11
Items that may subsequently be reclassified to income
Change in unrealized fair value of derivatives designated as cash flow hedges				89			82
Foreign currency translation adjustment arising from translating financial statements of foreign operations				(67	)		(69	)
				22			13
Items never subsequently reclassified to income
Change in measurement of investment financial assets				5			(1	)
Employee defined benefit plan re-measurements				159			675
				164			674
				186			687
COMPREHENSIVE INCOME			$	590		$	1,020
NET INCOME ATTRIBUTABLE TO:
Common Shares			$	385		$	331
Non-controlling interests				19			2
			$	404		$	333
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Common Shares			$	591		$	1,035
Non-controlling interests				(1	)		(15	)
			$	590		$	1,020
NET INCOME PER COMMON SHARE		12
Basic			$	0.28		$	0.25
Diluted			$	0.28		$	0.25
TOTAL WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic				1,376			1,298
Diluted				1,380			1,301

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

2 | March 31, 2022    

condensed interim consolidated statements of financial position (unaudited)

As at (millions)	Note	March 31, 2022		December 31, 2021
ASSETS
Current assets
Cash and temporary investments, net		$	774	$	723
Accounts receivable	6(b)		2,486		2,671
Income and other taxes receivable			188		206
Inventories	1(l)		513		448
Contract assets	6(c)		428		443
Prepaid expenses	20		670		528
Current derivative assets	4(d)		12		13
			5,071		5,032
Non-current assets
Property, plant and equipment, net	17		16,125		15,926
Intangible assets, net	18		17,538		17,485
Goodwill, net	18		7,334		7,281
Contract assets	6(c)		237		266
Other long-term assets	20		2,152		2,004
			43,386		42,962
		$	48,457	$	47,994
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Short-term borrowings	22	$	108	$	114
Accounts payable and accrued liabilities	23		3,388		3,705
Income and other taxes payable			110		104
Dividends payable	13		450		449
Advance billings and customer deposits	24		873		854
Provisions	25		77		96
Current maturities of long-term debt	26		2,904		2,927
Current derivative liabilities	4(d)		29		24
			7,939		8,273
Non-current liabilities
Provisions	25		785		774
Long-term debt	26		18,415		17,925
Other long-term liabilities	27		759		907
Deferred income taxes	10		4,155		4,056
			24,114		23,662
Liabilities			32,053		31,935
Owners’ equity
Common equity	28		15,451		15,116
Non-controlling interests			953		943
			16,404		16,059
		$	48,457	$	47,994
Contingent liabilities	29

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

  March 31, 2022 | 3  

condensed interim consolidated statements of changes in owners’ equity (unaudited)

		Common equity
		Equity contributed
		Common Shares (Note 28)										Accumulated  other					Non-
(millions)	Note	Number of shares			Share capital		Contributed surplus		Retained earnings			comprehensive income		Total			controlling interests			Total
Balance as at January 1, 2021			1,291	$	7,677	$	534	$	3,712		$	117	$	12,040		$	528		$	12,568
Net income			—		—		—		331			—		331			2			333
Other comprehensive income (loss)	11		—		—		—		675			29		704			(17	)		687
Dividends	13		—		—		—		(404	)		—		(404	)		—			(404	)
Dividends reinvested and optional cash payments	13(b), 14(c)		7		152		—		—			—		152			—			152
Equity accounted share-based compensation			—		—		26		—			—		26			—			26
Common Shares issued			51		1,267		—		—			—		1,267			—			1,267
Change in ownership interests of subsidiaries			—		—		440		—			—		440			393			833
Balance as at March 31, 2021			1,349	$	9,096	$	1,000	$	4,314		$	146	$	14,556		$	906		$	15,462
Balance as at January 1, 2022			1,370	$	9,644	$	1,013	$	4,256		$	203	$	15,116		$	943		$	16,059
Net income			—		—		—		385			—		385			19			404
Other comprehensive income (loss)	11		—		—		—		159			47		206			(20	)		186
Dividends	13		—		—		—		(450	)		—		(450	)		—			(450	)
Dividends reinvested and optional cash payments	13(b), 14(c)		6		157		—		—			—		157			—			157
Equity accounted share-based compensation	14(b)		—		—		28		—			—		28			6			34
Issue of Common Shares in business combination	18(b)		—		6		—		—			—		6			—			6
Change in ownership interests of subsidiary	28(c)		—		—		3		—			—		3			5			8
Balance as at March 31, 2022			1,376	$	9,807	$	1,044	$	4,350		$	250	$	15,451		$	953		$	16,404

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

4 | March 31, 2022    

condensed interim consolidated statements of cash flows (unaudited)

			Three months
Periods ended March 31 (millions)	Note		2022			2021
OPERATING ACTIVITIES
Net income			$	404		$	333
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization				842			789
Deferred income taxes		10		(1	)		3
Share-based compensation expense, net		14(a)		26			35
Net employee defined benefit plans expense		15(a)		27			26
Employer contributions to employee defined benefit plans		15(a)		(17	)		(16	)
Non-current contract assets				29			15
Non-current unbilled customer finance receivables		20		(82	)		(23	)
Loss from equity accounted investments		7, 21		4			4
Other				(7	)		(17	)
Net change in non-cash operating working capital		31(a)		(90	)		(210	)
Cash provided by operating activities				1,135			939
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences		31(a)		(1,013	)		(750	)
Cash payments for spectrum licences		18(a)		—			(251	)
Cash payments for acquisitions, net		18(b)		(127	)		(137	)
Advances to, and investment in, real estate joint ventures and associates		21		—			(15	)
Real estate joint venture receipts		21		1			1
Proceeds on disposition				5			—
Investment in portfolio investments and other				(65	)		(1	)
Cash used by investing activities				(1,199	)		(1,153	)
FINANCING ACTIVITIES		31(b)
Common Shares issued		28(a)		—			1,300
Dividends paid to holders of Common Shares		13(a)		(293	)		(251	)
Issue (repayment) of short-term borrowings, net				(6	)		—
Long-term debt issued		26		2,287			975
Redemptions and repayment of long-term debt		26		(1,859	)		(1,536	)
Shares of subsidiary issued and sold to non-controlling interests, net		28(c)		—			827
Other				(14	)		(46	)
Cash provided by financing activities				115			1,269
CASH POSITION
Increase in cash and temporary investments, net				51			1,055
Cash and temporary investments, net, beginning of period				723			848
Cash and temporary investments, net, end of period			$	774		$	1,903
SUPPLEMENTAL DISCLOSURE OF OPERATING CASH FLOWS
Interest paid			$	(180	)	$	(199	)
Interest received			$	1		$	2
Income taxes paid, net
In respect of comprehensive income			$	(108	)	$	(182	)
In respect of business acquisitions				—			(38	)
			$	(108	)	$	(220	)

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

  March 31, 2022 | 5  

notes to condensed interim consolidated financial statements (unaudited)

MARCH 31, 2022

TELUS Corporation is one of Canada’s largest telecommunications companies, providing a wide range of technology solutions, including mobile and fixed voice and data telecommunications services and products, healthcare software and technology solutions, agriculture services (software, data management and data analytics-driven smart-food chain and consumer goods technologies), and digitally-led customer experiences. Data services include: internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security.

TELUS Corporation was incorporated under the Company Act (British Columbia) on October 26, 1998, under the name BCT.TELUS Communications Inc. (BCT). On January 31, 1999, pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act among BCT, BC TELECOM Inc. and the former Alberta-based TELUS Corporation (TC), BCT acquired all of the shares of BC TELECOM Inc. and TC in exchange for Common Shares and Non-Voting Shares of BCT, and BC TELECOM Inc. was dissolved. On May 3, 2000, BCT changed its name to TELUS Corporation and in February 2005, TELUS Corporation transitioned under the Business Corporations Act (British Columbia), successor to the Company Act (British Columbia). TELUS Corporation maintains its registered office at Floor 7, 510 West Georgia Street, Vancouver, British Columbia, V6B 0M3.

The terms “TELUS”, “we”, “us”, “our” or “ourselves” refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries. Our principal subsidiaries are: TELUS Communications Inc., in which, as at March 31, 2022, we have a 100% equity interest; and TELUS International (Cda) Inc., in which, as at March 31, 2022, we have a 55.0% equity interest, as discussed further in Note 28(c), and which completed its initial public offering in February 2021.

Notes to consolidated financial statements		Page
General application
1.	Condensed interim consolidated financial statements	6
2.	Accounting policy developments	7
3.	Capital structure financial policies	7
4.	Financial instruments	10
Consolidated results of operations focused
5.	Segment information	16
6.	Revenue from contracts with customers	18
7.	Other income	19
8.	Employee benefits expense	19
9.	Financing costs	20
10.	Income taxes	21
11.	Other comprehensive income	22
12.	Per share amounts	23
13.	Dividends per share	23
14.	Share-based compensation	24
15.	Employee future benefits	27
16.	Restructuring and other costs	28
Consolidated financial position focused
17.	Property, plant and equipment	29
18.	Intangible assets and goodwill	30
19.	Leases	31
20.	Other long-term assets	32
21.	Real estate joint ventures and investment in associate	32
22.	Short-term borrowings	34
23.	Accounts payable and accrued liabilities	34
24.	Advance billings and customer deposits	34
25.	Provisions	35
26.	Long-term debt	36
27.	Other long-term liabilities	39
28.	Owners’ equity	40
29.	Contingent liabilities	41
Other
30.	Related party transactions	42
31.	Additional statement of cash flow information	44

1 condensed interim consolidated financial statements

(a) Basis of presentation

The notes presented in our condensed interim consolidated financial statements include only significant events and transactions and are not fully inclusive of all matters normally disclosed in our annual audited financial statements; thus, our interim consolidated financial statements are referred to as condensed. Our condensed interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2021.

Our condensed interim consolidated financial statements are expressed in Canadian dollars and follow the same accounting policies and methods of their application as set out in our consolidated financial statements for the year ended December 31, 2021. The generally accepted accounting principles that we use are International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS-IASB) and Canadian generally accepted accounting principles. Our condensed interim consolidated financial statements comply with International Accounting Standard 34, Interim Financial Reporting and reflect all adjustments (which are of a normal recurring nature) that are, in our opinion, necessary for a fair statement of the results for the interim periods presented.

6 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

These consolidated financial statements for the three-month period ended March 31, 2022, were authorized by our Board of Directors for issue on May 6, 2022.

(b) Inventories

Our inventories primarily consist of mobile handsets, parts and accessories totalling $434 million as at March 31, 2022 (December 31, 2021 – $381 million), and communications equipment held for resale. Inventories are valued at the lower of cost and net realizable value, with cost being determined on an average cost basis. Costs of goods sold for the three-month period ended March 31, 2022, totalled $0.5 billion (2021 – $0.5 billion).

2 accounting policy developments

Standards, interpretations and amendments to standards and interpretations in the reporting period not yet effective and not yet applied

· In February 2021, the International Accounting Standards Board issued narrow-scope amendments to IAS 1, Presentation of Financial Statements, IFRS Practice Statement 2, Making Materiality Judgements and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. The amendments will require the disclosure of material accounting policy information rather than disclosing significant accounting policies and clarify how to distinguish changes in accounting policies from changes in accounting estimates. We are currently assessing the impacts of the amended standards, but do not expect that our financial disclosure will be materially affected by the application of the amendments.

· In May 2021, the International Accounting Standards Board issued targeted amendments to IAS 12, Income Taxes. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. With a view to reducing diversity in reporting, the amendments will clarify that companies are required to recognize deferred taxes on transactions where both assets and liabilities are recognized, such as with leases and asset retirement (decommissioning) obligations. Based upon our current facts and circumstances, we do not expect our financial performance or disclosure to be materially affected by the application of the amended standard.

3 capital structure financial policies

General

Our objective when managing capital is to maintain a flexible capital structure that optimizes the cost and availability of capital at acceptable risk.

In our definition of capital, we include common equity (excluding accumulated other comprehensive income), non-controlling interests, long-term debt (including long-term credit facilities, commercial paper backstopped by 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), cash and temporary investments, and short-term borrowings, including those arising from securitized trade receivables.

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 adjust the amount of dividends paid to holders of Common Shares, purchase Common Shares for cancellation pursuant to normal course issuer bids, issue new shares (including Common Shares and TELUS International (Cda) Inc. subordinate voting shares), issue new debt, issue new debt to replace existing debt with different characteristics, and/or increase or decrease the amount of trade receivables sold to an arm’s-length securitization trust.

During 2022, our financial objectives, which are reviewed annually, were unchanged from 2021. We believe that our financial objectives are supportive of our long-term strategy.

We monitor capital utilizing a number of measures, including: net debt to earnings before interest, income taxes, depreciation and amortization (EBITDA^*) – excluding restructuring and other costs ratio; coverage ratios; and dividend payout ratios.

 * EBITDA is not a standardized financial measure under IFRS-IASB and might not be comparable to similar measures disclosed by other issuers; we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We report EBITDA because it is a key measure that management uses to evaluate the performance of our business, and it is also utilized in measuring compliance with certain debt covenants.

  March 31, 2022 | 7  

notes to condensed interim consolidated financial statements (unaudited)

Debt and coverage ratios

Net debt to EBITDA – excluding restructuring and other costs is calculated as net debt at the end of the period, divided by 12-month trailing EBITDA – excluding restructuring and other costs. This measure, historically, is substantially similar to the leverage ratio covenant in our credit facilities. Net debt and EBITDA – excluding restructuring and other costs are measures that do not have any standardized meanings prescribed by IFRS-IASB and are therefore unlikely to be comparable to similar measures presented by other issuers. The calculation of these measures is set out in the following table. Net debt is one component of a ratio used to determine compliance with debt covenants.

As at, or for the 12-month periods ended, March 31 ($ in millions)	Objective	2022		2021
Components of debt and coverage ratios
Net debt 1		$	20,960	$	18,230
EBITDA – excluding restructuring and other costs 2		$	6,582	$	5,786
Net interest cost 3 (Note 9)		$	764	$	797
Debt ratio
Net debt to EBITDA – excluding restructuring and other costs	2.20 – 2.70 4		3.18		3.15
Coverage ratios
Earnings coverage 5			4.0		3.1
EBITDA – excluding restructuring and other costs interest coverage 6			8.6		7.3

1 Net debt and total capitalization are calculated as follows:

As at March 31	Note	2022			2021
Long-term debt	26	$	21,319		$	19,772
Debt issuance costs netted against long-term debt			103			94
Derivative (assets) liabilities, net			(12	)		61
Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar-denominated long-term debt – excluding tax effects			216			106
Cash and temporary investments, net			(774	)		(1,903	)
Short-term borrowings	22		108			100
Net debt			20,960			18,230
Common equity			15,451			14,556
Non-controlling interests			953			906
Less: accumulated other comprehensive income included above in common equity and non-controlling interests			(213	)		(147	)
Total managed capitalization		$	37,151		$	33,545

2 EBITDA – excluding restructuring and other costs is calculated as follows:

	EBITDA (Note 5)			Restructuring and other costs (Note 16)			EBITDA – excluding restructuring and other costs
Add
Three-month period ended March 31, 2022	$	1,569		$	39		$	1,608
Year ended December 31, 2021		6,290			186			6,476
Deduct
Three-month period ended March 31, 2021		(1,461	)		(41	)		(1,502	)
EBITDA – excluding restructuring and other costs	$	6,398		$	184		$	6,582

3 Net interest cost is defined as financing costs, excluding employee defined benefit plans net interest, recoveries on long-term debt prepayment premium and repayment of debt, calculated on a 12-month trailing basis (expenses recorded for long-term debt prepayment premium, if any, are included in net interest cost) (see Note 9).

4 Our long-term objective range for this ratio is 2.20 – 2.70 times. The ratio as at March 31, 2022, is outside the long-term objective range. We may permit, and have permitted, this ratio to go outside the objective range (for long-term investment opportunities), but we will endeavour to return this ratio to within the objective range in the medium term (following the 2021, and upcoming 2023 and 2024, spectrum auctions), as we believe that this range is supportive of our long-term strategy. We are in compliance with the leverage ratio covenant in our credit facilities, which states that we may not permit our net debt to operating cash flow ratio to exceed 4.25:1.00 (see Note 26(d)); the calculation of the debt ratio is substantially similar to the calculation of the leverage ratio covenant in our credit facilities.

5 Earnings coverage is defined by Canadian Securities Administrators National Instrument 41-101 as net income before borrowing costs and income tax expense, divided by borrowing costs (interest on long-term debt; interest on short-term borrowings and other; long-term debt prepayment premium), and adding back capitalized interest, all such amounts excluding amounts attributable to non-controlling interests.

6 EBITDA – excluding restructuring and other costs interest coverage is defined as EBITDA – excluding restructuring and other costs, divided by net interest cost. This measure is substantially similar to the coverage ratio covenant in our credit facilities.

Net debt to EBITDA – excluding restructuring and other costs was 3.18 times as at March 31, 2022, as compared to 3.15 times one year earlier. The effect of the increase in net debt, primarily due to the acquisition of spectrum licences and business acquisitions, exceeded the effect of growth in EBITDA – excluding restructuring and other costs. EBITDA growth was reduced by COVID-19 pandemic impacts.

8 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

The earnings coverage ratio for the twelve-month period ended March 31, 2022, was 4.0 times, up from 3.1 times one year earlier. An increase in income before borrowing costs and income taxes increased the ratio by 0.9. The EBITDA – excluding restructuring and other costs interest coverage ratio for the twelve-month period ended March 31, 2022, was 8.6 times, up from 7.3 times one year earlier. Growth in EBITDA – excluding restructuring and other costs increased the ratio by 1.0 and a decrease in net interest costs increased the ratio by 0.3. EBITDA growth for the twelve-month period ended March 31, 2022, was reduced by COVID-19 pandemic impacts.

TELUS Corporation Common Share dividend payout ratio

So as to be consistent with the way we manage our business, our TELUS Corporation Common Share dividend payout ratio is presented as a historical measure calculated as the sum of the most recent four quarters’ dividends declared for TELUS Corporation Common Shares, as recorded in the financial statements net of dividend reinvestment plan effects (see Note 13), divided by the sum of free cash flow^* amounts for the most recent four quarters for interim reporting periods (divided by annual free cash flow if the reported amount is in respect of a fiscal year).

For the 12-month periods ended March 31	Objective	2022			2021
Determined using most comparable IFRS-IASB measures
Ratio of TELUS Corporation Common Share dividends declared to cash provided by operating activities – less capital expenditures (excluding spectrum licences)			187	%		101	%
Determined using management measures
TELUS Corporation Common Share dividend payout ratio – net of dividend reinvestment plan effects	60%–75% 1		129	%		80	%

1 Our objective range for the TELUS Corporation Common Share dividend payout ratio is 60%-75% of free cash flow on a prospective basis.

For the 12-month periods ended March 31 (millions)	2022			2021
TELUS Corporation Common Share dividends declared	$	1,757		$	1,553
Amount of TELUS Corporation Common Share dividends declared reinvested in TELUS Corporation Common Shares		(631	)		(583	)
TELUS Corporation Common Share dividends declared – net of dividend reinvestment plan effects	$	1,126		$	970

Our calculation of free cash flow, and the reconciliation to cash provided by operating activities, is as follows:

For the 12-month periods ended March 31 (millions)	Note	2022			2021
EBITDA	5	$	6,398		$	5,546
Deduct gain on disposition of financial solutions business			(410	)		—
Deduct non-cash gains from the sales of property, plant and equipment			—			(1	)
Restructuring and other costs, net of disbursements			(3	)		11
Effects of contract asset, acquisition and fulfilment and TELUS Easy Payment device financing			(19	)		(17	)
Effect of lease principal	31(b)		(502	)		(404	)
Leases accounted for as finance leases prior to adoption of IFRS 16			—			59
Items from the Consolidated statements of cash flows:
Share-based compensation, net	14		130			39
Net employee defined benefit plans expense	15		114			101
Employer contributions to employee defined benefit plans			(54	)		(52	)
Interest paid			(725	)		(762	)
Interest received			16			12
Capital expenditures (excluding spectrum licences)	5		(3,646	)		(2,795	)
Free cash flow before income taxes			1,299			1,737
Income taxes paid, net of refunds			(489	)		(526	)
Effect of disposition of financial solutions business on income taxes paid			61			—
Free cash flow			871			1,211
Add (deduct):
Capital expenditures (excluding spectrum licences)	5		3,646			2,795
Effects of lease principal and leases accounted for as finance leases prior to adoption of IFRS 16			502			345
Gain on disposition of financial solutions business, net of effect on income taxes paid			(349	)		—
Individually immaterial items included in net income neither providing nor using cash			(86	)		(15	)
Cash provided by operating activities		$	4,584		$	4,336

* Free cash flow is not a standardized financial measure under IFRS-IASB and might not be comparable to similar measures presented by other issuers; we define free cash flow as EBITDA (operating revenues and other income less goods and services purchased and employee benefits expense) excluding certain working capital changes (such as trade receivables and trade payables), proceeds from divested assets and other sources and uses of cash, as found in the consolidated statements of cash flows. We have issued guidance on, and report, free cash flow because it is a key measure that management, and investors, use to evaluate the performance of our business.

  March 31, 2022 | 9  

notes to condensed interim consolidated financial statements (unaudited)

4 financial instruments

(a) Credit risk

Excluding credit risk, if any, arising from 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 set out in the following table.

As at (millions)	March 31, 2022		December 31, 2021
Cash and temporary investments, net	$	774	$	723
Accounts receivable		3,113		3,216
Contract assets		665		709
Derivative assets		130		89
	$	4,682	$	4,737

Cash and temporary investments, net

Credit risk associated with cash and temporary investments 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 evaluates changes in the status of counterparties.

Accounts receivable

Credit risk associated with accounts receivable is inherently managed by the size and diversity of our large customer base, which includes substantially all consumer and business sectors in Canada. We follow a program of credit evaluations of customers and limit the amount of credit extended when deemed necessary. Accounts are considered to be past due (in default) when customers have failed to make the contractually required payments when due, which is generally within 30 days of the billing date. Any late payment charges are levied at an industry-based market or negotiated rate on outstanding non-current customer account balances.

As at (millions)		March 31, 2022							December 31, 2021
	Note	Gross		Allowance			Net 1		Gross		Allowance			Net 1
Customer accounts receivable, net of allowance for doubtful accounts
Less than 30 days past billing date		$	896	$	(13	)	$	883	$	900	$	(8	)	$	892
30-60 days past billing date			253		(12	)		241		338		(7	)		331
61-90 days past billing date			84		(14	)		70		93		(9	)		84
More than 90 days past billing date			115		(31	)		84		114		(21	)		93
Unbilled customer finance receivables			1,321		(37	)		1,284		1,323		(65	)		1,258
		$	2,669	$	(107	)	$	2,562	$	2,768	$	(110	)	$	2,658
Current		$	2,027	$	(92	)	$	1,935	$	2,194	$	(81	)	$	2,113
Non-current	20		642		(15	)		627		574		(29	)		545
		$	2,669	$	(107	)	$	2,562	$	2,768	$	(110	)	$	2,658

1 Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b)).

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 the 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 above a specific balance threshold and on a statistically derived allowance basis for the remainder. No customer accounts receivable are written off directly to the doubtful accounts expense.

The following table presents a summary of the activity related to our allowance for doubtful accounts.

	Three months
Periods ended March 31 (millions)	2022			2021
Balance, beginning of period	$	110		$	140
Additions (doubtful accounts expense)		18			14
Accounts written off 1 less than recoveries		(23	)		(21	)
Other		2			1
Balance, end of period	$	107		$	134

1 For the three-month period ended March 31, 2022, accounts written off, but that were still subject to enforcement activity, totalled $32 (2021 – $23).

10 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Contract assets

Credit risk associated with contract assets is inherently managed by the size and diversity of our large customer base, which includes substantially all consumer and business sectors in Canada. We follow a program of credit evaluations of customers and limit the amount of credit extended when deemed necessary.

As at (millions)	March 31, 2022							December 31, 2021
	Gross		Allowance			Net (Note 6(c))		Gross		Allowance			Net (Note 6(c))
Contract assets, net of impairment allowance
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence	$	577	$	(24	)	$	553	$	595	$	(24	)	$	571
The 12-month period ending two years hence		228		(10	)		218		259		(11	)		248
Thereafter		20		(1	)		19		19		(1	)		18
	$	825	$	(35	)	$	790	$	873	$	(36	)	$	837

We maintain allowances for lifetime expected credit losses related to contract assets. Current economic conditions, historical information (including credit agency reports, if available), and the line of business from which the contract asset arose are all considered when determining impairment allowances. The same factors are considered when determining whether to write off amounts charged to the impairment allowance for contract assets against contract assets.

Derivative assets (and derivative liabilities)

Counterparties to our material foreign exchange 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.

(b) Liquidity risk

As a component of our capital structure financial policies, discussed further in Note 3, we manage liquidity risk by:

· maintaining a daily cash pooling process that enables us to manage our available liquidity and our liquidity requirements according to our actual needs;

· maintaining an agreement to sell trade receivables to an arm’s-length securitization trust and bilateral bank facilities (Note 22), a commercial paper program (Note 26(c)) and syndicated credit facilities (Note 26(d),(e));

· maintaining an in-effect shelf prospectus;

· continuously monitoring forecast and actual cash flows; and

· managing maturity profiles of financial assets and financial liabilities.

Our debt maturities in future years are disclosed in Note 26(h). As at March 31, 2022, TELUS Corporation could offer $1.6 billion of debt or equity securities pursuant to a shelf prospectus that is in effect until June 2023 (December 31, 2021 – $2.75 billion). We believe that our investment grade credit ratings contribute to reasonable access to capital markets. Subsequent to March 31, 2022, TELUS International (Cda) Inc. filed a shelf prospectus under which an unlimited amount of debt or equity securities could be offered and that is in effect until May 2024.

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 do not differ significantly from the contractual maturities, other than as noted below. The contractual maturities of our undiscounted financial liabilities, including interest thereon (where applicable), are set out in the following tables.

  March 31, 2022 | 11  

notes to condensed interim consolidated financial statements (unaudited)

	Non-derivative								Derivative
					Composite long-term debt
As at March 31, 2022	Non-interest bearing financial		Short-term		Long-term debt, excluding leases 1		Leases		Currency swap agreement amounts to be exchanged 2							Currency swap agreement amounts to be exchanged
(millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)			Pay		Other		(Receive)			Pay		Total
2022 (remainder of year)	$	2,959	$	9	$	2,492	$	376	$	(1,560	)	$	1,583	$	1	$	(488	)	$	489	$	5,861
2023		164		1		1,204		373		(185	)		192		—		(142	)		144		1,751
2024		179		101		1,761		313		(185	)		192		—		—			—		2,361
2025		9		—		2,218		183		(553	)		568		—		—			—		2,425
2026		1		—		1,938		150		(152	)		162		—		—			—		2,099
2027-2031		3		—		7,517		414		(1,949	)		2,075		—		—			—		8,060
Thereafter		—		—		11,603		353		(3,909	)		4,047		—		—			—		12,094
Total	$	3,315	$	111	$	28,733	$	2,162	$	(8,493	)	$	8,819	$	1	$	(630	)	$	633	$	34,651
						Total (Note 26(h))						$	31,221

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at March 31, 2022.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at March 31, 2022. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

	Non-derivative								Derivative
					Composite long-term debt
As at December 31,	Non-interest bearing financial		Short-term		Long-term debt, excluding leases 1		Leases		Currency swap agreement amounts to be exchanged 2							Currency swap agreement amounts to be exchanged
2021 (millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)			Pay		Other		(Receive)			Pay		Total
2022	$	3,395	$	15	$	3,130	$	504	$	(2,050	)	$	2,059	$	8	$	(544	)	$	540	$	7,057
2023		62		1		1,167		364		(149	)		148		—		—			—		1,593
2024		13		101		1,724		305		(149	)		148		—		—			—		2,142
2025		14		—		2,217		176		(522	)		540		—		—			—		2,425
2026		2		—		1,901		144		(116	)		118		—		—			—		2,049
2027-2031		7		—		7,351		398		(1,784	)		1,852		—		—			—		7,824
Thereafter		—		—		10,499		344		(2,805	)		2,877		—		—			—		10,915
Total	$	3,493	$	117	$	27,989	$	2,235	$	(7,575	)	$	7,742	$	8	$	(544	)	$	540	$	34,005
						Total						$	30,391

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2021.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2021. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

(c) Market risks

Net income and other comprehensive income for the three-month periods ended March 31, 2022 and 2021, could have varied if the Canadian dollar: U.S. dollar exchange rate, the U.S. dollar: European euro exchange rate and market interest rates 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 U.S. dollar-denominated and European euro-denominated balances and derivative financial instrument notional amounts 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 based upon a 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 principal and notional amounts as at the relevant statement of financial position date have been used in the calculations.

Income tax expense, which is reflected net in the sensitivity analysis, reflects the applicable statutory income tax rates for the reporting periods.

12 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Three-month periods ended March 31	Net income						Other comprehensive income						Comprehensive income
(increase (decrease) in millions)	2022			2021			2022			2021			2022			2021
Reasonably possible changes in market risks 1
10% change in C$: US$ exchange rate
Canadian dollar appreciates	$	—		$	2		$	(14	)	$	(10	)	$	(14	)	$	(8	)
Canadian dollar depreciates	$	—		$	(2	)	$	14		$	10		$	14		$	8
10% change in US$: € exchange rate
U.S. dollar appreciates	$	—		$	—		$	(48	)	$	(52	)	$	(48	)	$	(52	)
U.S. dollar depreciates	$	—		$	—		$	48		$	52		$	48		$	52
25 basis point change in interest rates
Interest rates increase
Canadian interest rate	$	(1	)	$	—		$	91		$	86		$	90		$	86
U.S. interest rate	$	—		$	—		$	(96	)	$	(88	)	$	(96	)	$	(88	)
Combined	$	(1	)	$	—		$	(5	)	$	(2	)	$	(6	)	$	(2	)
Interest rates decrease
Canadian interest rate	$	1		$	—		$	(94	)	$	(90	)	$	(93	)	$	(90	)
U.S. interest rate	$	—		$	—		$	100		$	93		$	100		$	93
Combined	$	1		$	—		$	6		$	3		$	7		$	3

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 and market interest rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption.

(d) Fair values

Derivative

The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are set out in the following table.

As at (millions)		March 31, 2022							December 31, 2021
	Designation	Maximum maturity date		Notional amount		Fair value 1 and carrying value		Price or rate	Maximum maturity date		Notional amount		Fair value 1 and carrying value		Price or rate
Current Assets 2
Derivatives used to manage
Currency risk arising from U.S. dollar revenues	HFT 4		2023	$	29	$	—	US$1.00: ₱52		—	$	—	$	—		—
Currency risk arising from U.S. dollar-denominated purchases	HFH 3		2023	$	157		2	US$1.00: C$1.23		2022	$	301		6		US$1.00: C$1.25
Currency risk arising from Indian rupee-denominated purchases	HFT 4		2022	$	5		—	US$1.00: ₹77		2022	$	12		—		US$1.00: ₹76
Currency risk arising from U.S. dollar-denominated long-term debt (Note 26(b)-(c))	HFH 3		2022	$	94		—	US$1.00: C$1.25		2022	$	664		2		US$1.00: C$1.26
Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 (Note 26(e))	HFH 5		2025	$	29		10	€1.00: US$1.09		2025	$	31		3		€1.00: US$1.09
Interest rate risk associated with refinancing of debt maturing	HFH 3		—	$	—		—	—		2022	$	250		2		1.35%
						$	12						$	13
Other Long-Term Assets 2
Derivatives used to manage
Currency risk arising from U.S. dollar-denominated long-term debt 6 (Note 26(b)-(c))	HFH 3		2049	$	3,593	$	118	US$1.00: C$1.30		2048	$	2,133	$	76		US$1.00: C$1.27

  March 31, 2022 | 13  

notes to condensed interim consolidated financial statements (unaudited)

As at (millions)		March 31, 2022										December 31, 2021
	Designation	Maximum maturity date		Notional amount		Fair value 1 and carrying value		Price or rate			Maximum maturity date		Notional amount		Fair value 1 and carrying value		Price or rate
Current Liabilities 2
Derivatives used to manage
Currency risk arising from U.S. dollar revenues	HFT 4		2023	$	114	$	3		US$1.00: ₱51			2022	$	116	$	3		US$1.00: ₱50
Currency risk arising from U.S. dollar-denominated purchases	HFH 3		2023	$	326		5		US$1.00: C$1.27			2022	$	108		1		US$1.00: C$1.28
Currency risk arising from Indian rupee-denominated purchases	HFT 4		2022	$	2		—		US$1.00: ₹76			2022	$	2		—		US$1.00: ₹75
Currency risk arising from U.S. dollar-denominated long-term debt (Note 26(b)-(c))	HFH 3		2022	$	1,343		20		US$1.00: C$1.27			2022	$	1,248		12		US$1.00: C$1.28
Interest rate risk associated with non-fixed rate credit facility amounts drawn (Note 26(e))	HFH 3		2022	$	116		1		2.64	%		2022	$	120		3		2.64	%
Interest rate risk associated with refinancing of debt maturing	HFH 3		—	$	—		—		—			2022	$	500		5		1.59	%
						$	29								$	24
Other Long-Term Liabilities 2
Derivatives used to manage
Currency risk arising from U.S. dollar-denominated long-term debt 6 (Note 26(b)-(c))	HFH 3		2032	$	3,305	$	91		US$1.00: C$1.32			2049	$	3,185	$	52		US$1.00: C$1.33
Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 (Note 26(e))	HFH 5		2025	$	458		5		€1.00: US$1.09			2025	$	483		21		€1.00: US$1.09
						$	96								$	73

1 Fair value measured at reporting date using significant other observable inputs (Level 2).

2 Derivative financial assets and liabilities are not set off.

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.

4 Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied.

5 Designated as a hedge of a net investment in a foreign operation; hedge accounting is applied. 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.

6 We designate only the spot element as the hedging item. As at March 31, 2022, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $28 (December 31, 2021 – $53).

7 We designate only the spot element as the hedging item. As at March 31, 2022, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $(1) (December 31, 2021 – $1).

Non-derivative

Our long-term debt, which is measured at amortized cost, and the fair value thereof, are set out in the following table.

As at (millions)	March 31, 2022				December 31, 2021
	Carrying value		Fair value		Carrying value		Fair value
Long-term debt, excluding leases (Note 26)	$	19,503	$	19,380	$	18,976	$	20,383

(e) 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 (a), would be the primary source of hedge ineffectiveness. There was no ineffective portion of the derivative instruments classified as cash flow hedging items for the periods presented. 

14 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

		Amount of gain (loss) recognized in other comprehensive income						Gain (loss) reclassified from other comprehensive income to income (effective portion) (Note 11)
		(effective portion) (Note 11)							Amount
Periods ended March 31 (millions)	Note	2022			2021			Location	2022			2021
THREE-MONTH
Derivatives used to manage currency risk
Arising from U.S. dollar-denominated purchases		$	(6	)	$	(4	)	Goods and services purchased	$	1		$	(8	)
Arising from U.S. dollar-denominated long-term debt 1	26(b)-(c)		(12	)		23		Financing costs		(108	)		(48	)
Arising from net investment in a foreign operation 2			24			26		Financing costs		—			—
			6			45				(107	)		(56	)
Derivatives used to manage other market risks
Other			—			1		Financing costs		(1	)		—
		$	6		$	46			$	(108	)	$	(56	)

1 Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the three-month period ended March 31, 2022, were $(25) (2021 – $(72)).

2 Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the three-month period ended March 31, 2022, were $(2) (2021 – $NIL).

The following table sets out the gains and losses arising from derivative instruments that are classified as held for trading and that are not designated as being in a hedging relationship, as well as their location within the Consolidated statements of income and other comprehensive income.

		Gain (loss) recognized in income on derivatives
Three-month periods ended March 31 (millions)	Location	2022			2021
Derivatives used to manage currency risk	Financing costs	$	(3	)	$	1

  March 31, 2022 | 15  

notes to condensed interim consolidated financial statements (unaudited)

5 segment information

General

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 TELUS technology solutions segment includes: network revenues and equipment sales arising from mobile technologies; data revenues (which include internet protocol; television; hosting, managed information technology and cloud-based services; and home and business security); healthcare software and technology solutions; agriculture services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services revenues; and equipment sales.

The digitally-led customer experiences – TELUS International segment (DLCX), which has the U.S. dollar as its primary functional currency, is comprised of digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions, provided by our TELUS International (Cda) Inc. subsidiary.

Intersegment sales are recorded at the exchange value, which is the amount agreed to by the parties.

The segment information regularly reported to our Chief Executive Officer (our chief operating decision-maker), and the reconciliations thereof to our products and services view of revenues, other revenues and income before income taxes, are set out in the following table.

16 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

	TELUS technology solutions												Digitally-led customer experiences – TELUS
Three-month periods ended	Mobile				Fixed				Segment total				International 1				Eliminations						Total
March 31 (millions)	2022		2021		2022		2021		2022		2021		2022		2021		2022			2021			2022		2021
Operating revenues
External revenues
Service	$	1,600	$	1,526	$	1,521	$	1,441	$	3,121	$	2,967	$	644	$	535	$	—		$	—		$	3,765	$	3,502
Equipment		417		452		74		68		491		520		—		—		—			—			491		520
Revenues arising from contracts with customers	$	2,017	$	1,978	$	1,595	$	1,509		3,612		3,487		644		535		—			—			4,256		4,022
						Other income (Note 7)				26		2		—		—		—			—			26		2
										3,638		3,489		644		535		—			—			4,282		4,024
						Intersegment revenues				4		5		115		104		(119	)		(109	)		—		—
									$	3,642	$	3,494	$	759	$	639	$	(119	)	$	(109	)	$	4,282	$	4,024
						EBITDA 2			$	1,400	$	1,336	$	169	$	125	$	—		$	—		$	1,569	$	1,461
						Restructuring and other costs included in EBITDA (Note 16)				35		28		4		13		—			—			39		41
						Equity losses related to real estate joint venture				—		1		—		—		—			—			—		1
						Adjusted EBITDA 2			$	1,435	$	1,365	$	173	$	138	$	—		$	—		$	1,608	$	1,503
						CAPEX, excluding spectrum licences 3			$	802	$	662	$	31	$	23	$	—		$	—		$	833	$	685
																		Operating revenues – external and other income (above)					$	4,282	$	4,024
																		Goods and services purchased						1,594		1,548
																		Employee benefits expense						1,119		1,015
																		EBITDA (above)						1,569		1,461
																		Depreciation						551		524
																		Amortization						291		265
																		Operating income						727		672
																		Financing costs						179		207
																		Income before income taxes					$	548	$	465

1 The digitally-led customer experiences – TELUS International segment is comprised of our consolidated TELUS International (Cda) Inc. subsidiary. All of our other international operations are included in the TELUS technology solutions segment.

2 Earnings before interest, income taxes, depreciation and amortization (EBITDA), both unadjusted and adjusted, are not standardized financial measures under IFRS-IASB and may not be comparable to similar measures disclosed by other issuers (including those disclosed by TELUS International (Cda) Inc.); we define EBITDA as operating revenues and other income less goods and services purchased and employee benefits expense. We calculate adjusted EBITDA to exclude items that do not reflect our ongoing operations and, in our opinion, should not be considered in a long-term valuation metric or included in an assessment of our ability to service or incur debt. We report EBITDA and adjusted EBITDA because they are key measures that management uses to evaluate the performance of our business, and EBITDA is also utilized in measuring compliance with certain debt covenants.

3 Total capital expenditures (CAPEX); see Note 31(a) for a reconciliation of capital expenditures, excluding spectrum licences, to cash payments for capital assets, excluding spectrum licences, reported in the Consolidated statements of cash flows.

  March 31, 2022 | 17  

notes to condensed interim consolidated financial statements (unaudited)

6 revenue from contracts with customers

(a) Revenues

In the determination of the minimum transaction prices in contracts with customers, amounts are allocated to fulfilling, or completion of fulfilling, future contracted performance obligations. These unfulfilled, or partially unfulfilled, future contracted performance obligations are largely in respect of services to be provided over the duration of the contract. The following table sets out our aggregate estimated minimum transaction prices allocated to remaining unfulfilled, or partially unfulfilled, future contracted performance obligations and the timing of when we might expect to recognize the associated revenues; actual amounts could differ from these estimates due to a variety of factors, including the unpredictable nature of: customer behaviour; industry regulation; the economic environments in which we operate; and competitor behaviour.

As at (millions)	March 31, 2022		December 31, 2021
Estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations to be recognized as revenue in a future period 1, 2
During the 12-month period ending one year hence	$	2,363	$	2,369
During the 12-month period ending two years hence		906		915
Thereafter		62		56
	$	3,331	$	3,340

1 Excludes constrained variable consideration amounts, amounts arising from contracts originally expected to have a duration of one year or less and, as a permitted practical expedient, amounts arising from contracts that are not affected by revenue recognition timing differences arising from transaction price allocation or from contracts under which we may recognize and bill revenue in an amount that corresponds directly with our completed performance obligations.

2 IFRS-IASB requires the explanation of when we expect to recognize as revenue the amounts disclosed as the estimated minimum transaction price allocated to remaining unfulfilled, or partially unfulfilled, performance obligations. The estimated amounts disclosed are based upon contractual terms and maturities. Actual minimum transaction price revenues recognized, and the timing thereof, will differ from these estimates primarily due to the frequency with which the actual durations of contracts with customers do not match their contractual maturities.

(b) Accounts receivable

As at (millions)	Note		March 31, 2022			December 31, 2021
Customer accounts receivable			$	2,027		$	2,194
Accrued receivables – customer				331			313
Allowance for doubtful accounts		4(a)		(92	)		(81	)
				2,266			2,426
Accrued receivables – other				220			245
Accounts receivable – current			$	2,486		$	2,671

(c) Contract assets

			Three months
Periods ended March 31 (millions)	Note		2022			2021
Balance, beginning of period			$	837		$	850
Net additions arising from operations				300			272
Amounts billed in the period and thus reclassified to accounts receivable				(348	)		(324	)
Change in impairment allowance, net		4(a)		1			3
Other				—			2
Balance, end of period			$	790		$	803
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence			$	553		$	550
The 12-month period ending two years hence				218			235
Thereafter				19			18
Balance, end of period			$	790		$	803
Reconciliation of contract assets presented in the Consolidated statements of financial position – current
Gross contract assets			$	553		$	550
Reclassification to contract liabilities of contracts with contract assets less than contract liabilities		24		(13	)		(11	)
Reclassification from contract liabilities of contracts with contract liabilities less than contract assets		24		(112	)		(119	)
			$	428		$	420

18 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

7 other income

		Three months
Periods ended March 31 (millions)	Note	2022			2021
Government assistance		$	2		$	3
Other sublet revenue	19		1			1
Investment income (loss), gain (loss) on disposal of assets and other			(4	)		(3	)
Interest income	21(b)		1			1
Changes in business combination-related provisions			26			—
		$	26		$	2

8 employee benefits expense

		Three months
Periods ended March 31 (millions)	Note	2022			2021
Employee benefits expense – gross
Wages and salaries 1		$	1,105		$	991
Share-based compensation 2	14		49			60
Pensions – defined benefit	15(a)		27			26
Pensions – defined contribution	15(b)		26			22
Restructuring costs 2	16(a)		10			18
Employee health and other benefits			57			50
			1,274			1,167
Capitalized internal labour costs, net
Contract acquisition costs	20
Capitalized			(18	)		(22	)
Amortized			19			15
Contract fulfilment costs	20
Capitalized			—			—
Amortized			—			1
Property, plant and equipment			(93	)		(90	)
Intangible assets subject to amortization			(63	)		(56	)
			(155	)		(152	)
		$	1,119		$	1,015

1 For the three-month period ended March 31, 2021, wages and salaries are net of Canada Emergency Wage Subsidy program amounts.

2 For the three-month period ended March 31, 2022, $1 (2021 – $6) of share-based compensation in the digitally-led customer experiences segment was included in restructuring costs.

  March 31, 2022 | 19  

notes to condensed interim consolidated financial statements (unaudited)

9 financing costs

		Three months
Periods ended March 31 (millions)	Note	2022			2021
Interest expense
Interest on long-term debt, excluding lease liabilities – gross		$	169		$	171
Interest on long-term debt, excluding lease liabilities – capitalized 1			(15	)		—
Interest on long-term debt, excluding lease liabilities			154			171
Interest on lease liabilities	19		16			17
Interest on short-term borrowings and other			4			3
Interest accretion on provisions	25		3			5
			177			196
Employee defined benefit plans net interest	15		2			6
Foreign exchange			1			6
			180			208
Interest income			(1	)		(1	)
		$	179		$	207
Net interest cost	3	$	192		$	201
Interest on long-term debt, excluding lease liabilities – capitalized 1			(15	)		—
Employee defined benefit plans net interest			2			6
		$	179		$	207

1 Interest on long-term debt, excluding lease liabilities, at a composite rate of 3.10% was capitalized to intangible assets with indefinite lives during the period.

20 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

10 income taxes

	Three months
Periods ended March 31 (millions)	2022			2021
Current income tax expense
For the current reporting period	$	145		$	129
Deferred income tax expense
Arising from the origination and reversal of temporary differences		(1	)		3
	$	144		$	132

Our income tax expense and effective income tax rate differ from those computed by applying the applicable statutory rates for the following reasons:

Three-month periods ended March 31 ($ in millions)	2022					2021
Income taxes computed at applicable statutory rates	$	140		25.5	%	$	119	25.6	%
Non-deductible amounts		(2	)	(0.3	)		6	1.4
Other		6		1.1			7	1.5
Income tax expense per Consolidated statements of income and other comprehensive income	$	144		26.3	%	$	132	28.5	%

  March 31, 2022 | 21  

notes to condensed interim consolidated financial statements (unaudited)

11 other comprehensive income

	Items that may subsequently be reclassified to income																				Item never reclassified to income						Item never reclassified to income
	Change in unrealized fair value of derivatives designated as cash flow hedges in current period (Note 4(e))
	Derivatives used to manage currency risk							Derivatives used to manage other market risks
Periods ended March 31 (millions)	Gains (losses) arising		Prior period (gains) losses transferred to net income		Total			Gains (losses) arising		Prior period (gains) losses transferred to net income		Total			Total			Cumulative foreign currency translation adjustment			Change in measurement of investment financial assets			Accumulated other comp. income			Employee defined benefit plan re-measure- ments		Other comp. income
THREE-MONTH
Accumulated balance as at January 1, 2021					$	(40	)					$	(6	)	$	(46	)	$	155		$	26		$	135
Other comprehensive income (loss)
Amount arising	$	45	$	56		101		$	1	$	—		1			102			(69	)		(1	)		32		$	911	$	943
Income taxes	$	10	$	10		20		$	—	$	—		—			20			—			—			20			236		256
Net						81							1			82			(69	)		(1	)		12		$	675	$	687
Accumulated balance as at March 31, 2021					$	41						$	(5	)	$	36		$	86		$	25		$	147
Accumulated balance as at January 1, 2022					$	81						$	(3	)	$	78		$	25		$	83		$	186
Other comprehensive income (loss)
Amount arising	$	6	$	107		113		$	—	$	1		1			114			(67	)		6			53		$	214	$	267
Income taxes	$	4	$	21		25		$	—	$	—		—			25			—			1			26			55		81
Net						88							1			89			(67	)		5			27		$	159	$	186
Accumulated balance as at March 31, 2022					$	169						$	(2	)	$	167		$	(42	)	$	88		$	213
Attributable to:
Common Shares																								$	250
Non-controlling interests																									(37	)
																								$	213

22 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

12 per share amounts

Basic net income per Common Share is calculated by dividing net income attributable to Common Shares by the total weighted average number of Common Shares outstanding during the period. Diluted net income per Common Share is calculated to give effect to share option awards and restricted share unit awards.

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.

	Three months
Periods ended March 31 (millions)	2022		2021
Basic total weighted average number of Common Shares outstanding		1,376		1,298
Effect of dilutive securities – Restricted share units		4		3
Diluted total weighted average number of Common Shares outstanding		1,380		1,301

For the three-month periods ended March 31, 2022 and 2021, no outstanding equity-settled restricted share unit awards were excluded in the calculation of diluted income per Common Share. For the three-month periods ended March 31, 2022 and 2021, no outstanding TELUS Corporation share option awards were excluded in the calculation of diluted net income per Common Share.

13 dividends per share

(a) TELUS Corporation Common Share dividends declared

Periods ended March 31 (millions except per share amounts)

2022

2021

TELUS Corporation Common Share dividends

Declared

Paid to shareholders

Total

Declared

Paid to shareholders

Effective

Per share

Effective

Per share

Total

Quarter 1 dividend

Mar. 11, 2022

$

0.3274

Apr. 1, 2022

$

450

Mar. 11, 2021

$

0.3112

Apr. 1, 2021

$

404

On May 5, 2022, the Board of Directors declared a quarterly dividend of $0.3386 per share on our issued and outstanding TELUS Corporation Common Shares payable on July 4, 2022, to holders of record at the close of business on June 10, 2022. The final amount of the dividend payment depends upon the number of TELUS Corporation Common Shares issued and outstanding at the close of business on June 10, 2022.

(b) Dividend Reinvestment and Share Purchase Plan

We have a Dividend Reinvestment and Share Purchase Plan under which eligible holders of TELUS Corporation Common Shares may acquire additional TELUS Corporation Common Shares by reinvesting dividends and by making additional optional cash payments to the trustee. Under this plan, we have the option of offering TELUS Corporation Common Shares from Treasury or having the trustee acquire TELUS Corporation Common Shares in the stock market. We may, at our discretion, offer TELUS Corporation Common Shares at a discount of up to 5% from the market price under the plan. Effective with our dividends paid October 1, 2019, we offered TELUS Corporation Common Shares from Treasury at a discount of 2%. In respect of TELUS Corporation Common Shares held by eligible shareholders who have elected to participate in the plan, dividends declared during the three-month period ended March 31, 2022, of $149 million (2021 – $143 million) were to be reinvested in TELUS Corporation Common Shares.

  March 31, 2022 | 23  

notes to condensed interim consolidated financial statements (unaudited)

14 share-based compensation

(a) Details of share-based compensation expense

Reflected in the Consolidated statements of income and other comprehensive income as Employee benefits expense and in the Consolidated statements of cash flows are the following share-based compensation amounts:

Periods ended March 31 (millions)		2022									2021
	Note	Employee benefits expense 1			Associated operating cash outflows			Statement of cash flows adjustment			Employee benefits expense		Associated operating cash outflows			Statement of cash flows adjustment
THREE-MONTH
Restricted share units	(b)	$	41		$	(7	)	$	34		$	50	$	—		$	50
Employee share purchase plan	(c)		11			(11	)		—			9		(9	)		—
Share option awards	(d)		(2	)		(6	)		(8	)		7		(22	)		(15	)
		$	50		$	(24	)	$	26		$	66	$	(31	)	$	35
TELUS technology solutions		$	40		$	(18	)	$	22		$	35	$	(9	)	$	26
Digitally-led customer experiences			10			(6	)		4			31		(22	)		9
		$	50		$	(24	)	$	26		$	66	$	(31	)	$	35

1 Within employee benefits expense (see Note 8), for the three-month period ended March 31, 2022, restricted share units expense of $40 (2021 – $45) and share option awards expense of $(2) (2021 – $6) are presented as share-based compensation expense and the balance is included in restructuring costs (see Note 16) of the digitally-led customer experiences segment.

(b) Restricted share units

TELUS Corporation restricted share units

We also award restricted share units that largely have the same features as our general restricted share units, but have a variable payout (0% – 200%) that depends upon the achievement of our total customer connections performance condition (with a weighting of 25%) and the total shareholder return on TELUS Corporation Common Shares relative to an international peer group of telecommunications companies (with a weighting of 75%). The grant-date fair value of the notional subset of our restricted share units affected by the total customer connections performance condition equals the fair market value of the corresponding TELUS Corporation Common Shares at the grant date, and thus the notional subset has been included in the presentation of our restricted share units with only service conditions. The estimate, which reflects a variable payout, of the fair value of the notional subset of our restricted share units affected by the relative total shareholder return performance condition is determined using a Monte Carlo simulation. Grants of restricted share units in 2022 and 2021 are accounted for as equity-settled, as that was their expected manner of settlement when granted.

The following table presents a summary of outstanding TELUS Corporation non-vested restricted share units.

Number of non-vested restricted share units as at	March 31, 2022		December 31, 2021
Restricted share units without market performance conditions
Restricted share units with only service conditions		7,601,738		5,481,486
Notional subset affected by total customer connections performance condition		508,692		366,983
		8,110,430		5,848,469
Restricted share units with market performance conditions
Notional subset affected by relative total shareholder return performance condition		1,526,076		1,100,949
		9,636,506		6,949,418

24 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of the activity related to TELUS Corporation restricted share units without market performance conditions.

Period ended March 31, 2022	Three months
	Number of restricted share units 1						Weighted average
	Non-vested			Vested			grant-date fair value
Outstanding, beginning of period
Non-vested		5,848,469			—		$	25.67
Vested		—			49,138		$	25.63
Granted
Initial award		2,466,876			—		$	31.83
In lieu of dividends		63,791			541		$	29.76
Vested		(168,514	)		168,514		$	25.71
Settled in cash		—			(168,514	)	$	25.71
Forfeited		(100,192	)		—		$	25.67
Outstanding, end of period
Non-vested		8,110,430			—		$	27.58
Vested		—			49,679		$	25.65

1 Excluding the notional subset of restricted share units affected by the relative total shareholder return performance condition.

TELUS International (Cda) Inc. restricted share units

We also award restricted share units that largely have the same features as the TELUS Corporation restricted share units, but have a variable payout (0% – 150%) that depends upon the achievement of TELUS International (Cda) Inc. financial performance and non-market quality-of-service performance conditions. Grants of restricted share units in 2022 and 2021 are accounted for as equity-settled, as that was their expected manner of settlement when granted.

The following table presents a summary of the activity related to TELUS International (Cda) Inc. restricted share units.

Period ended March 31, 2022	Three months
	Number of restricted share units						Weighted average
	Non-vested			Vested			grant-date fair value
Outstanding, beginning of period		1,850,807			—			US$ 21.94
Granted – initial award		789,710			—			US$ 26.38
Vested		(153,972	)		153,972			US$ 25.00
Settled in equity		—			(153,972	)		US$ 25.00
Forfeited		(143,016	)		—			US$ 14.22
Outstanding, end of period		2,343,529			—			US$ 23.71

(c) TELUS Corporation employee share purchase plan

We have an employee share purchase plan under which eligible employees up to a certain job classification can purchase TELUS Corporation Common Shares through regular payroll deductions. In respect of TELUS Corporation Common Shares held within the employee share purchase plan, TELUS Corporation Common Share dividends declared during the three-month period ended March 31, 2022, of $11 million (2021 – $10 million) were to be reinvested in TELUS Corporation Common Shares acquired by the trustee from Treasury, with a discount applicable, as set out in Note 13(b).

(d) Share option awards

TELUS Corporation share options

Employees may be granted share option awards to purchase TELUS Corporation Common Shares at an exercise price equal to the fair market value at the time of grant. Share option awards granted under the plan may be exercised over specific periods not to exceed seven years from the time of grant. Share option awards granted in fiscal 2021 and 2020 were for front-line employees.

These share option awards have a net-equity settlement feature. The optionee does not have the choice of exercising the net-equity settlement feature; it is at our option whether the exercise of a share option award is settled as a share option or settled using the net-equity settlement feature.

  March 31, 2022 | 25  

notes to condensed interim consolidated financial statements (unaudited)

The following table presents a summary of the activity related to the TELUS Corporation share option plan.

Period ended March 31, 2022	Three months
	Number of share options			Weighted average share option price 1
Outstanding, beginning of period		3,050,300		$	22.04
Forfeited		(80,700	)	$	22.04
Outstanding, end of period		2,969,600		$	22.04

1 The weighted average remaining contractual life is 5.1 years. No options were exercisable as at the balance sheet date.

TELUS International (Cda) Inc. share options

Employees may be granted equity share options (equity-settled) to purchase TELUS International (Cda) Inc. subordinate voting shares at a price equal to, or a multiple of, the fair market value at the time of grant and/or phantom share options (cash-settled) that provide them with exposure to TELUS International (Cda) Inc. subordinate voting share price appreciation. Share option awards granted under the plan may be exercised over specific periods not to exceed ten years from the time of grant. All equity share option awards and most phantom share option awards have a variable payout (0% – 100%) that depends upon the achievement of TELUS International (Cda) Inc. financial performance and non-market quality-of-service performance conditions.

The following table presents a summary of the activity related to the TELUS International (Cda) Inc. share option plan.

Period ended March 31, 2022	Three months
	Number of share options			Weighted average share option price 1
Outstanding, beginning of period		3,180,767		US$	10.74
Forfeited		(152,133	)	US$	6.74
Outstanding, end of period		3,028,634		US$	10.94

1 For 2,532,534 share options, the range of share option prices is US$4.87 – US$8.95 per TELUS International (Cda) Inc. subordinated voting share and the weighted average remaining contractual life is 5.3 years; for the balance of share options, the price is US$25.00 and the weighted average remaining contractual life is 8.9 years.

26 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

15 employee future benefits

(a) Defined benefit pension plans – summary

Amounts in the primary financial statements relating to defined benefit pension plans

Three-month periods ended March 31					2022									2021
(millions)	Note	Plan assets			Defined benefit obligations accrued 1			Net			Plan assets			Defined benefit obligations accrued 1			Net
Employee benefits expense	8
Benefits earned for current service		$	—		$	(27	)				$	—		$	(30	)
Benefits earned for past service			—			(3	)					—			—
Employees’ contributions			4			—						5			—
Administrative fees			(1	)		—						(1	)		—
			3			(30	)	$	(27	)		4			(30	)	$	(26	)
Financing costs	9
Notional income on plan assets 2 and interest on defined benefit obligations accrued			74			(75	)					60			(65	)
Interest effect on asset ceiling limit			(1	)		—						(1	)		—
			73			(75	)		(2	)		59			(65	)		(6	)
DEFINED BENEFIT (COST) INCLUDED IN NET INCOME 3									(29	)								(32	)
Other comprehensive income	11
Difference between actual results and estimated plan assumptions 4			(543	)		—						(149	)		—
Changes in plan financial assumptions			—			1,491						—			1,095
Changes in the effect of limiting net defined benefit assets to the asset ceilings 5			(734	)		—						(35	)		—
			(1,277	)		1,491			214			(184	)		1,095			911
DEFINED BENEFIT (COST) INCLUDED IN COMPREHENSIVE INCOME 3									185									879
AMOUNTS INCLUDED IN OPERATING ACTIVITIES CASH FLOWS
Employer contributions			17			—			17			16			—			16
BENEFITS PAID BY PLANS			(117	)		117			—			(118	)		118			—
PLAN ACCOUNT BALANCES
Change in period			(1,301	)		1,503			202			(223	)		1,118			895
Balance, beginning of period			10,043			(10,233	)		(190	)		9,608			(10,521	)		(913	)
Balance, end of period		$	8,742		$	(8,730	)	$	12		$	9,385		$	(9,403	)	$	(18	)
FUNDED STATUS – PLAN SURPLUS (DEFICIT)
Pension plans that have plan assets in excess of defined benefit obligations accrued	20	$	7,881		$	(7,417	)	$	464		$	8,541		$	(8,026	)	$	515
Pension plans that have defined benefit obligations accrued in excess of plan assets
Funded			861			(1,091	)		(230	)		844			(1,139	)		(295	)
Unfunded			—			(222	)		(222	)		—			(238	)		(238	)
	27		861			(1,313	)		(452	)		844			(1,377	)		(533	)
		$	8,742		$	(8,730	)	$	12		$	9,385		$	(9,403	)	$	(18	)

1 Defined benefit obligations accrued are the actuarial present values of benefits attributed to employee services rendered to a particular date.

2 The interest income on the plan assets portion of the employee defined benefit plans net interest amount included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued.

3 Excluding income taxes.

4 Financial assumptions in respect of plan assets (interest income on plan assets included in Financing costs reflects a rate of return on plan assets equal to the discount rate used in determining the defined benefit obligations accrued) and demographic assumptions in respect of the actuarial present values of the defined benefit obligations accrued.

5 Effect of asset ceiling limit at March 31, 2022, was $913 (December 31, 2021 – $179).

(b) Defined contribution plans – expense

Our total defined contribution pension plan costs recognized were as follows:

	Three months
Periods ended March 31 (millions)	2022		2021
Union pension plan and public service pension plan contributions	$	4	$	4
Other defined contribution pension plans		22		18
	$	26	$	22

  March 31, 2022 | 27  

notes to condensed interim consolidated financial statements (unaudited)

16 restructuring and other costs

(a) Details of restructuring and other costs

With the objective of reducing ongoing costs, we incur associated incremental non-recurring restructuring costs, as discussed further in (b) following. We may also incur atypical charges when undertaking major or transformational changes to our business or operating models or post-acquisition business integration. In other costs, we include incremental atypical external costs incurred in connection with business acquisition or disposition activity; significant litigation costs in respect of losses or settlements; adverse retrospective regulatory decisions; and certain incremental atypical costs incurred in connection with the COVID-19 pandemic.

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
Periods ended March 31 (millions)	2022		2021		2022		2021		2022		2021
THREE-MONTH
Goods and services purchased	$	26	$	13	$	3	$	10	$	29	$	23
Employee benefits expense		10		18		—		—		10		18
	$	36	$	31	$	3	$	10	$	39	$	41

(b) Restructuring provisions

Employee-related provisions and other provisions, as presented in Note 25, include amounts in respect of restructuring activities. In 2022, restructuring activities included ongoing and incremental efficiency initiatives, some of which involved personnel-related costs and rationalization of real estate. These initiatives were intended to improve our long-term operating productivity and competitiveness.

(c) Other

During the three-month period ended March 31, 2022, incremental external costs were incurred in connection with business acquisition activity. In connection with business acquisitions, non-recurring atypical business integration expenditures that would be considered neither restructuring costs nor part of the fair value of the net assets acquired have been included in other costs.

Also during the three-month period ended March 31, 2022, other costs were incurred in connection with the COVID-19 pandemic. Incremental costs were incurred due to proactive steps we elected to take in order to keep our customers and employees safe, including adjustments to the frequency of real estate cleaning and maintenance, among other items. As well, costs that have been incurred in the normal course but which are unable to contribute normally to the earning of revenues have been deemed atypical.

28 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

17 property, plant and equipment

			Owned assets																	Right-of-use lease assets (Note 19)
(millions)	Note	Network assets			Buildings and leasehold improvements			Computer hardware and other			Land		Assets under construction			Total			Network assets		Real estate			Other			Total			Total
AT COST
As at January 1, 2022		$	34,510		$	3,537		$	1,525		$	75	$	771		$	40,418		$	594	$	1,694		$	99		$	2,387		$	42,805
Additions			201			11			12			6		405			635			—		65			9			74			709
Additions arising from business acquisitions	18(b)		1			—			3			—		—			4			—		—			—			—			4
Assets under construction put into service			154			19			23			—		(196	)		—			—		—			—			—			—
Dispositions, retirements and other			(240	)		(7	)		16			—		—			(231	)		—		(2	)		(3	)		(5	)		(236	)
Net foreign exchange differences			(1	)		(3	)		(6	)		—		—			(10	)		—		(13	)		—			(13	)		(23	)
As at March 31, 2022		$	34,625		$	3,557		$	1,573		$	81	$	980		$	40,816		$	594	$	1,744		$	105		$	2,443		$	43,259
ACCUMULATED DEPRECIATION
As at January 1, 2022		$	23,070		$	2,207		$	938		$	—	$	—		$	26,215		$	64	$	566		$	34		$	664		$	26,879
Depreciation 1			395			33			45			—		—			473			19		55			4			78			551
Dispositions, retirements and other			(252	)		(7	)		(20	)		—		—			(279	)		—		(2	)		(2	)		(4	)		(283	)
Net foreign exchange differences			(1	)		(1	)		(4	)		—		—			(6	)		—		(7	)		—			(7	)		(13	)
As at March 31, 2022		$	23,212		$	2,232		$	959		$	—	$	—		$	26,403		$	83	$	612		$	36		$	731		$	27,134
NET BOOK VALUE
As at December 31, 2021		$	11,440		$	1,330		$	587		$	75	$	771		$	14,203		$	530	$	1,128		$	65		$	1,723		$	15,926
As at March 31, 2022		$	11,413		$	1,325		$	614		$	81	$	980		$	14,413		$	511	$	1,132		$	69		$	1,712		$	16,125

1 For the three-month period ended March 31, 2022, depreciation includes $1 in respect of impairment of real estate right-of-use lease assets.

As at March 31, 2022, our contractual commitments for the acquisition of property, plant and equipment totalled $497 million over a period ending December 31, 2023 (December 31, 2021 – $574 million over a period ending December 31, 2023).

  March 31, 2022 | 29  

notes to condensed interim consolidated financial statements (unaudited)

18 intangible assets and goodwill

(a) Intangible assets and goodwill, net

			Intangible assets subject to amortization														Intangible assets with indefinite lives
(millions)	Note	Customer contracts, related customer relationships and subscriber base			Software			Access to rights-of-way, crowdsource assets and other			Assets under construction			Total			Spectrum licences		Total intangible assets			Goodwill 1			Total intangible assets and goodwill
AT COST
As at January 1, 2022		$	3,028		$	6,723		$	437		$	275		$	10,463		$	12,185	$	22,648		$	7,645		$	30,293
Additions			—			31			1			166			198			—		198			—			198
Additions arising from business acquisitions	(b)		122			20			17			—			159			—		159			98			257
Assets under construction put into service			—			96			—			(96	)		—			—		—			—			—
Dispositions, retirements and other (including capitalized interest)	9		3			(198	)		10			—			(185	)		15		(170	)		—			(170	)
Net foreign exchange differences			(37	)		(1	)		(4	)		—			(42	)		—		(42	)		(45	)		(87	)
As at March 31, 2022		$	3,116		$	6,671		$	461		$	345		$	10,593		$	12,200	$	22,793		$	7,698		$	30,491
ACCUMULATED AMORTIZATION
As at January 1, 2022		$	712		$	4,279		$	172		$	—		$	5,163		$	—	$	5,163		$	364		$	5,527
Amortization			78			196			17			—			291			—		291			—			291
Dispositions, retirements and other			13			(189	)		(14	)		—			(190	)		—		(190	)		—			(190	)
Net foreign exchange differences			(7	)		(1	)		(1	)		—			(9	)		—		(9	)		—			(9	)
As at March 31, 2022		$	796		$	4,285		$	174		$	—		$	5,255		$	—	$	5,255		$	364		$	5,619
NET BOOK VALUE
As at December 31, 2021		$	2,316		$	2,444		$	265		$	275		$	5,300		$	12,185	$	17,485		$	7,281		$	24,766
As at March 31, 2022		$	2,320		$	2,386		$	287		$	345		$	5,338		$	12,200	$	17,538		$	7,334		$	24,872

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

As at March 31, 2022, our contractual commitments for the acquisition of intangible assets totalled $13 million over a period ending December 31, 2023 (December 31, 2021 – $26 million over a period ending December 31, 2023).

(b) Business acquisitions

Fully Managed Inc.

On January 1, 2022, we acquired 100% ownership of Fully Managed Inc., a provider of managed information technology support, technology strategy and network management. The acquisition was made with a view to growing our end-to-end capabilities to support small and medium-sized business customers.

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 may be deductible for income tax purposes.

Individually immaterial transactions

During the three-month period ended March 31, 2022, we acquired 100% ownership of businesses complementary to our existing lines of business. The primary factor that gave rise to the recognition of goodwill was the earnings capacity of the acquired businesses in excess of the net tangible and intangible assets acquired (such excess arising from the low level of tangible assets relative to the earnings capacities of the businesses). A portion of the amounts assigned to goodwill may be deductible for income tax purposes. Any differences between the results of operations currently presented and pro forma operating revenues, net income and basic and diluted net income per Common Share amounts reflecting the results of operations as if the business acquisitions had been completed at the beginning of the current fiscal year are immaterial (as are the post-acquisition operating revenues and net income of the acquired businesses for the three-month period ended March 31, 2022).

30 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Acquisition-date fair values

Acquisition-date fair values assigned to the assets acquired and liabilities assumed are set out in the following table:

(millions)	Fully Managed Inc. 1		Total of individually immaterial transactions 1		Total
Assets
Current assets
Cash	$	3	$	1	$	4
Accounts receivable 2		49		1		50
Other		2		—		2
		54		2		56
Non-current assets
Property, plant and equipment
Owned assets		1		3		4
Intangible assets subject to amortization 3		146		13		159
Other		1		—		1
		148		16		164
Total identifiable assets acquired		202		18		220
Liabilities
Current liabilities
Accounts payable and accrued liabilities		30		2		32
Advance billings and customer deposits		2		2		4
Current maturities of long-term debt		1		—		1
		33		4		37
Non-current liabilities
Long-term debt		70		—		70
Other long-term liabilities		2		2		4
Deferred income taxes		38		—		38
		110		2		112
Total liabilities assumed		143		6		149
Net identifiable assets acquired		59		12		71
Goodwill		72		26		98
Net assets acquired	$	131	$	38	$	169
Acquisition effected by way of:
Cash consideration	$	96	$	32	$	128
Provisions		29		6		35
Issue of TELUS Corporation Common Shares		6		—		6
	$	131	$	38	$	169

1	The purchase price allocation, primarily in respect of customer contracts, related customer relationships and leasehold interests and deferred income taxes, had not been finalized as of the date of issuance of these consolidated financial statements. As is customary in a business acquisition transaction, until the time of acquisition of control, we did not have full access to the books and records of the acquired businesses. Upon having sufficient time to review the books and records of the acquired businesses, we expect to finalize our purchase price allocations.
2	The fair value of accounts receivable is equal to the gross contractual amounts receivable and reflects the best estimate at the acquisition date of the contractual cash flows expected to be collected.
3	Customer contracts and customer relationships (including those related to customer contracts) are generally expected to be amortized over a period of 8 years; software is expected to be amortized over a period of 5 years; and other intangible assets are expected to be amortized over a period of 5 years.

19 leases

Maturity analyses of lease liabilities are set out in Note 4(b) and Note 26(h); the period interest expense in respect thereof is set out in Note 9. The additions to, the depreciation charges for, and the carrying amounts of, right-of-use lease assets are set out in Note 17. We have not currently elected to exclude low-value and short-term leases from lease accounting.

  March 31, 2022 | 31  

notes to condensed interim consolidated financial statements (unaudited)

			Three months
Periods ended March 31 (millions)	Note		2022		2021
Income from subleasing right-of-use lease assets
Co-location sublet revenue included in operating service revenues			$	4	$	8
Other sublet revenue included in other income		7	$	1	$	1
Lease payments			$	139	$	140

20 other long-term assets

As at (millions)	Note	March 31, 2022		December 31, 2021
Pension assets	15	$	464	$	453
Unbilled customer finance receivables	4(a)		627		545
Derivative assets	4(d)		118		76
Deferred income taxes			22		35
Costs incurred to obtain or fulfill contracts with customers			107		109
Real estate joint venture advances	21(b)		114		114
Investment in real estate joint venture	21(b)		1		1
Investment in associates	21		97		100
Portfolio investments 1
At fair value through net income			27		26
At fair value through other comprehensive income			377		370
Prepaid maintenance			70		62
Refundable security deposits and other			128		113
		$	2,152	$	2,004

¹  Fair value measured at reporting date using significant other observable inputs (Level 2).

The costs incurred to obtain and fulfill contracts with customers are set out in the following table:

Period ended March 31, 2022 (millions)	Three months
	Costs incurred to
	Obtain contracts with customers			Fulfill contracts with customers			Total
Balance, beginning of period	$	336		$	6		$	342
Additions		60			1			61
Amortization		(67	)		(1	)		(68	)
Balance, end of period	$	329		$	6		$	335
Current 1	$	225		$	3		$	228
Non-current		104			3			107
	$	329		$	6		$	335

¹  Presented in the Consolidated statements of financial position in prepaid expenses.

21 real estate joint ventures and investment in associate

(a) General

Real estate joint ventures

In 2013, we partnered, as equals, with two arm’s-length parties in a residential, retail and commercial real estate redevelopment project, TELUS Sky, in Calgary, Alberta. The new-build tower, completed in 2020, was to be built to the LEED Platinum standard.

Associate

We have acquired a 35% basic equity interest in Miovision Technologies Incorporated, an associate that is complementary to, and is viewed to grow, our existing Internet of Things business; our judgment is that we obtained significant influence over the associate concurrent with acquiring our equity interest.

32 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

(b) Real estate joint ventures

Summarized financial information

As at (millions)	March 31, 2022		December 31, 2021		As at (millions)	March 31, 2022		December 31, 2021
ASSETS					LIABILITIES AND OWNERS’ EQUITY
Current assets					Current liabilities
Cash and temporary investments, net	$	10	$	11	Accounts payable and accrued liabilities	$	10	$	10
Other		26		28
		36		39			10		10
Non-current assets					Non-current liabilities
Investment property		327		328	Construction credit facilities		342		342
Other		10		10
		337		338			342		342
							352		352
					Owners’ equity
					TELUS 1		7		9
					Other partners		14		16
							21		25
	$	373	$	377		$	373	$	377

¹  The equity amounts recorded by the real estate joint venture differ from those recorded by us by the amount of the deferred gains on our real estate contributed and the valuation provision we have recorded in excess of that recorded by the real estate joint venture.

	Three months
Periods ended March 31 (millions)	2022			2021
Revenue	$	4		$	2
Depreciation and amortization	$	2		$	1
Interest expense	$	3		$	—
Net income (loss) and comprehensive income (loss) 1	$	(4	)	$	(7	)

¹  As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income.

Our real estate joint ventures activity

Our real estate joint ventures investment activity is set out in the following table.

Three-month periods ended March 31 (millions)	2022									2021
	Loans and receivables 1			Equity 2			Total			Loans and receivables 1			Equity 2			Total
Related to real estate joint ventures’ statements of income and other comprehensive income
Comprehensive income (loss) attributable to us 3	$	—		$	—		$	—		$	—		$	(1	)	$	(1	)
Related to real estate joint ventures’ statements of financial position
Items not affecting currently reported cash flows
Construction credit facilities financing costs charged by us (Note 7)		1			—			1			1			—			1
Cash flows in the current reporting period
Construction credit facilities
Financing costs paid to us		(1	)		—			(1	)		(1	)		—			(1	)
Funds we advanced or contributed, excluding construction credit facilities		—			—			—			—			6			6
Net increase (decrease)		—			—			—			—			5			5
Real estate joint ventures carrying amounts
Balance, beginning of period		114			(8	)		106			114			(11	)		103
Valuation provision		—			—			—			—			(1	)		(1	)
Balance, end of period	$	114		$	(8	)	$	106		$	114		$	(7	)	$	107

1	Loans and receivables are included in our consolidated statements of financial position as Real estate joint venture advances and are comprised of advances under construction credit facilities.
2	We account for our interests in the real estate joint ventures using the equity method of accounting. As at March 31, 2022, and December 31, 2021, we had recorded equity losses in excess of our recorded equity investment in respect of one of the real estate joint ventures; such resulting balance has been included in long-term liabilities (Note 27).
3	As the real estate joint ventures are partnerships, no provision for income taxes of the partners is made in determining the real estate joint ventures’ net income and comprehensive income.

  March 31, 2022 | 33  

notes to condensed interim consolidated financial statements (unaudited)

We have entered into lease agreements with the TELUS Sky real estate joint venture; for lease accounting purposes, the first lease commenced during the three-month period ended June 30, 2019. During the three-month period ended March 31, 2022, the TELUS Sky real estate joint venture recognized $2 million (2021 – $2 million) of revenue from our office tenancy; of this amount, one-third was due to our economic interest in the real estate joint venture and two-thirds was due to our partners’ economic interests in the real estate joint venture.

Construction credit facilities

The TELUS Sky real estate joint venture has a credit agreement, maturing August 31, 2023, with Canadian financial institutions (as 66-2/3% lender) and TELUS Corporation (as 33-1/3% lender) to provide $342 million of construction financing for the project. The construction credit facilities contain customary real estate construction financing representations, warranties and covenants and are secured by demand debentures constituting first fixed and floating charge mortgages over the underlying real estate assets. The construction credit facilities are available by way of bankers’ acceptance or prime loan and bear interest at rates in line with similar construction financing facilities.

22 short-term borrowings

On July 26, 2002, one of our subsidiaries, TELUS Communications Inc., entered into an agreement with an arm’s-length securitization trust associated with a major Schedule I bank under which it is currently able to sell an interest in certain trade receivables up to a maximum of $600 million (unchanged from December 31, 2021). The term of this revolving-period securitization agreement ends December 31, 2024 (unchanged from December 31, 2021), and it requires minimum cash proceeds of $100 million from monthly sales of interests in certain trade receivables. TELUS Communications Inc. is required to maintain a credit rating of at least BB (2020 – BB) from DBRS Limited or the securitization trust may require the sale program to be wound down prior to the end of the term.

Sales of trade receivables in securitization transactions are recognized as collateralized short-term borrowings and thus do not result in our derecognition of the trade receivables sold. When we sell our trade receivables, we retain reserve accounts, which are retained interests in the securitized trade receivables, and servicing rights. As at March 31, 2022, we had sold to the trust (but continued to recognize) trade receivables of $120 million (December 31, 2021 – $118 million). Short-term borrowings of $100 million (December 31, 2021 – $100 million) are comprised of amounts advanced to us by the arm’s-length securitization trust pursuant to the sale of trade receivables.

The balance of short-term borrowings (if any) is comprised of amounts drawn on bilateral bank facilities and/or other.

23 accounts payable and accrued liabilities

As at (millions)	March 31, 2022		December 31, 2021
Accrued liabilities	$	1,446	$	1,539
Payroll and other employee-related liabilities		500		633
Restricted share units liability		21		28
		1,967		2,200
Trade accounts payable		1,091		1,213
Interest payable		175		173
Indirect taxes payable and other		155		119
	$	3,388	$	3,705

24 advance billings and customer deposits

As at (millions)	March 31, 2022		December 31, 2021
Advance billings	$	648	$	636
Deferred customer activation and connection fees		6		6
Customer deposits		13		10
Contract liabilities		667		652
Other		206		202
	$	873	$	854

34 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Contract liabilities represent our future performance obligations to customers in respect of services and/or equipment for which we have received consideration from the customer or for which an amount is due from the customer. Our contract liability balances, and the changes in those balances, are set out in the following table:

		Three months
Periods ended March 31 (millions)	Note	2022			2021
Balance, beginning of period		$	870		$	806
Revenue deferred in previous period and recognized in current period			(630	)		(593	)
Net additions arising from operations			637			608
Additions arising from business acquisitions			6			—
Balance, end of period		$	883		$	821
Current		$	792		$	744
Non-current	27
Deferred revenues			83			67
Deferred customer activation and connection fees			8			10
		$	883		$	821
Reconciliation of contract liabilities presented in the Consolidated statements of financial position – current
Gross contract liabilities		$	792		$	744
Reclassification to contract assets of contracts with contract liabilities less than contract assets	6(c)		(112	)		(119	)
Reclassification from contract assets of contracts with contract assets less than contract liabilities	6(c)		(13	)		(11	)
		$	667		$	614

25 provisions

(millions)	Asset retirement obligation		Employee- related			Written put options and contingent consideration			Other			Total
As at January 1, 2022	$	501	$	66		$	203		$	100		$	870
Additions		—		10			27			40			77
Reversals		—		—			(26	)		—			(26	)
Uses		—		(26	)		(2	)		(34	)		(62	)
Interest effects		3		—			—			—			3
As at March 31, 2022	$	504	$	50		$	202		$	106		$	862
Current	$	3	$	38		$	3		$	33		$	77
Non-current		501		12			199			73			785
As at March 31, 2022	$	504	$	50		$	202		$	106		$	862

Asset retirement obligation

We establish provisions for liabilities associated with the retirement of property, plant and equipment when those obligations result from the acquisition, construction, development and/or normal operation of the assets. We expect that the associated cash outflows in respect of the balance accrued as at the financial statement date will occur proximate to the dates these assets are retired.

Employee-related

The employee-related provisions are largely in respect of restructuring activities (as discussed further in Note 16(b)). The timing of the associated cash outflows in respect of the balance accrued as at the financial statement date is substantially short-term in nature.

Written put options and contingent consideration

In connection with certain business acquisitions, we have established provisions for written put options in respect of non-controlling interests. Provisions for some written put options are determined based on the net present value of estimated future earnings results, and such provisions require us to make key economic assumptions about the future. Similarly, we have established provisions for contingent consideration. No cash outflows in respect of the written put options are expected prior to their initial exercisability, and no cash outflows in respect of contingent consideration are expected prior to completion of the periods during which the contingent consideration can be earned.

  March 31, 2022 | 35  

notes to condensed interim consolidated financial statements (unaudited)

Other

The provisions for other include: legal claims; non-employee-related restructuring activities; contract termination costs and onerous contracts related to business acquisitions; and costs incurred in connection with the COVID-19 pandemic. Other than as set out following, we expect that the associated cash outflows in respect of the balance accrued as at the financial statement date will occur over an indeterminate multi-year period.

As discussed further in Note 29, we are involved in a number of legal claims and we are aware of certain other possible legal claims. In respect of legal claims, we establish provisions, when warranted, after taking into account legal assessments, information presently available, and the expected availability of recourse. The timing of cash outflows associated with legal claims cannot be reasonably determined.

In connection with business acquisitions, we have established provisions for contract termination costs and onerous contracts acquired.

26 long-term debt

(a) Details of long-term debt

As at (millions)	Note	March 31, 2022		December 31, 2021
Senior unsecured
TELUS Corporation senior notes	(b)	$	16,328	$	15,258
TELUS Corporation commercial paper	(c)		1,414		1,900
TELUS Communications Inc. debentures			448		448
Secured
TELUS International (Cda) Inc. credit facility	(e)		1,009		1,062
Other	(f)		304		308
			19,503		18,976
Lease liabilities	(g)		1,816		1,876
Long-term debt		$	21,319	$	20,852
Current		$	2,904	$	2,927
Non-current			18,415		17,925
Long-term debt		$	21,319	$	20,852

(b) TELUS Corporation senior notes

The notes are senior unsecured and unsubordinated obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated obligations, are senior in right of payment to all of our existing and future subordinated indebtedness, and are effectively subordinated to all existing and future obligations of, or guaranteed by, our subsidiaries. The indentures governing the notes contain certain covenants that, among other things, place limitations on our ability, and the ability of certain of our subsidiaries, to: grant security in respect of indebtedness; enter into sale-leaseback transactions; and incur new indebtedness.

Interest is payable semi-annually. The notes require us to make an offer to repurchase them at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase upon the occurrence of a change in control triggering event, as defined in the supplemental trust indenture.

At any time prior to the respective maturity dates set out in the table below, the notes are redeemable at our option, in whole at any time, or in part from time to time, on not fewer than 30 days’ and not more than 60 days’ prior notice. On or after the respective redemption present value spread cessation dates set out in the table below, the notes are redeemable at our option, in whole but not in part, on not fewer than 30 days’ and not more than 60 days’ prior notice, at redemption prices equal to 100% of the principal amounts thereof. In addition, accrued and unpaid interest, if any, will be paid to the date fixed for redemption.

						Principal face amount		Redemption present value spread
Series	Issued	Maturity	Issue price		Effective interest rate 1	Originally issued	Outstanding at financial statement date	Basis points 2	Cessation date
3.35% Notes, Series CJ	December 2012	March 2023	$	998.83	3.36%	$500 million	$500 million	40	Dec. 15, 2022
3.35% Notes, Series CK	April 2013	April 2024	$	994.35	3.41%	$1.1 billion	$1.1 billion	36	Jan. 2, 2024
3.75% Notes, Series CQ	September 2014	January 2025	$	997.75	3.78%	$800 million	$800 million	38.5	Oct. 17, 2024
3.75% Notes, Series CV	December 2015	March 2026	$	992.14	3.84%	$600 million	$600 million	53.5	Dec. 10, 2025
2.75% Notes, Series CZ	July 2019	July 2026	$	998.73	2.77%	$800 million	$800 million	33	May 8, 2026

36 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Principal face amount

Redemption present value spread

Series

Issued

Maturity

Issue price

Effective interest rate 1

Originally issued

Outstanding at financial statement date

Basis points 2

Cessation date

2.80% U.S. Dollar Notes 3

September 2016

February 2027

US$

991.89

2.89%

US$600 million

US$600 million

20

Nov. 16, 2026

3.70% U.S. Dollar Notes 3

March 2017

September 2027

US$

998.95

3.71%

US$500 million

US$500 million

20

June 15, 2027

2.35% Notes, Series CAC

May 2020

January 2028

$

997.25

2.39%

$600 million

$600 million

48

Nov. 27, 2027

3.625% Notes, Series CX

March 2018

March 2028

$

989.49

3.75%

$600 million

$600 million

37

Dec. 1, 2027

3.30% Notes, Series CY

April 2019

May 2029

$

991.75

3.40%

$1.0 billion

$1.0 billion

43.5

Feb. 2, 2029

3.15% Notes, Series CAA

December 2019

February 2030

$

996.49

3.19%

$600 million

$600 million

39.5

Nov. 19, 2029

2.05% Notes, Series CAD

October 2020

October 2030

$

997.93

2.07%

$500 million

$500 million

38

July 7, 2030

2.85% Sustainability-Linked Notes, Series CAF

June 2021

November 2031

$

997.52

2.88%

4

$750 million

$750 million

34

Aug. 13, 2031

3.40% U.S. Dollar Sustainability-Linked Notes

February 2022

May 2032

US$

997.13

3.43%

4

US$900 million

US$900 million

25

Feb. 13, 2032

4.40% Notes, Series CL

April 2013

April 2043

$

997.68

4.41%

$600 million

$600 million

47

Oct. 1, 2042

5.15% Notes, Series CN

November 2013

November 2043

$

995.00

5.18%

$400 million

$400 million

50

May 26, 2043

4.85% Notes, Series CP

Multiple 5

April 2044

$

987.91

5

4.93%

5

$500 million

5

$900 million

5

46

Oct. 5, 2043

4.75% Notes, Series CR

September 2014

January 2045

$

992.91

4.80%

$400 million

$400 million

51.5

July 17, 2044

4.40% Notes, Series CU

March 2015

January 2046

$

999.72

4.40%

$500 million

$500 million

60.5

July 29, 2045

4.70% Notes, Series CW

Multiple 6

March 2048

$

998.06

6

4.71%

6

$325 million

6

$475 million

6

58.5

Sept. 6, 2047

4.60% U.S. Dollar Notes 3

June 2018

November 2048

US$

987.60

4.68%

US$750 million

US$750 million

25

May 16, 2048

4.30% U.S. Dollar Notes 3

May 2019

June 2049

US$

990.48

4.36%

US$500 million

US$500 million

25

Dec. 15, 2048

3.95% Notes, Series CAB

Multiple 7

February 2050

$

997.54

7

3.97%

7

$400 million

7

$800 million

7

57.5

Aug. 16, 2049

4.10% Notes, Series CAE

April 2021

April 2051

$

994.70

4.13%

$500 million

$500 million

53

Oct. 5, 2050

1 The effective interest rate is that which the notes would yield to an initial debt holder if held to maturity.

2 For Canadian dollar-denominated notes, the redemption price is equal to the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof.

For U.S. dollar-denominated notes, the redemption price is equal to the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate (at the U.S. Treasury Rate for the 3.40% U.S. Dollar Sustainability-Linked Notes) plus the redemption present value spread calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof.

3 We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively converted the principal payments and interest obligations to Canadian dollar obligations as follows:

Series	Interest rate fixed at			Canadian dollar equivalent principal		Exchange rate
2.80% U.S. Dollar Notes		2.95	%	$	792 million	$	1.3205
3.70% U.S. Dollar Notes		3.41	%	$	667 million	$	1.3348
3.40% U.S. Dollar Sustainability-Linked Notes		3.89	%	$	1,148 million	$	1.2753
4.60% U.S. Dollar Notes		4.41	%	$	974 million	$	1.2985
4.30% U.S. Dollar Notes		4.27	%	$	672 million	$	1.3435

4 If we have not obtained a sustainability performance target verification assurance certificate for the fiscal year ended December 31, 2030, the 2.85% Sustainability-Linked Notes, Series CAF will bear interest at a rate of 3.85% for the period from November 14, 2030, through November 13, 2031, and the 3.40% U.S. Dollar Sustainability-Linked Notes will bear interest at a rate of 4.40% for the period from November 14, 2030, through November 13, 2032. The interest rate on the 3.40% U.S. Dollar Sustainability-Linked Notes may also increase in certain circumstances if we fail to meet additional sustainability and/or environmental, social or governance targets as may be provided for in a sustainability-linked bond. The interest rate on the 3.40% U.S. Dollar Sustainability-Linked Notes, however, can in no event exceed the initial rate of 3.40% by more than 1.50%, in the aggregate, whether as a result of not obtaining a sustainability performance target verification assurance certificate and/or any targets under one or more future sustainability-linked bonds.

Similarly, if we redeem either series of notes and we have not obtained a sustainability performance target verification assurance certificate at the end of the fiscal year immediately preceding the date fixed for redemption, the interest accrued (if any) will be determined using a rate of 3.85% for the Series CAF notes and using a rate of 4.40% for the 3.40% U.S. Dollar Sustainability-Linked Notes.

5 $500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%.

6 $325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued at an issue price of $1,014.11 and an effective interest rate of 4.61% in March 2018.

7 $400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%.

  March 31, 2022 | 37  

notes to condensed interim consolidated financial statements (unaudited)

(c) TELUS Corporation commercial paper

TELUS Corporation has an unsecured commercial paper program, which is backstopped by our $2.75 billion syndicated credit facility (see (d)) and is to be used for general corporate purposes, including capital expenditures and investments. This program enables us to issue commercial paper, subject to conditions related to debt ratings, up to a maximum aggregate amount at any one time of $1.9 billion equivalent (US$1.5 billion maximum). Foreign currency forward contracts are used to manage currency risk arising from issuing commercial paper denominated in U.S. dollars. Commercial paper debt is due within one year and is classified as a current portion of long-term debt, as the amounts are fully supported, and we expect that they will continue to be supported, by the revolving credit facility, which has no repayment requirements within the next year. As at March 31, 2022, we had $1.4 billion (December 31, 2021 – $1.9 billion) of commercial paper outstanding, all of which was denominated in U.S. dollars (US$1.1 billion; December 31, 2021 – US$1.5 billion), with an effective average interest rate of 0.77%, maturing through August 2022.

(d) TELUS Corporation credit facility

As at March 31, 2022, TELUS Corporation had an unsecured revolving $2.75 billion bank credit facility, expiring on April 6, 2026 (unchanged from December 31, 2021), with a syndicate of financial institutions, which is to be used for general corporate purposes, including the backstopping of commercial paper.

The TELUS Corporation 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 two financial quarter-end ratio tests. These tests are that our leverage ratio must not exceed 4.25:1.00 and our operating cash flow to interest expense ratio must not be less than 2.00:1.00, all as defined in the credit facility.

Continued access to the TELUS Corporation credit facility is not contingent upon TELUS Corporation maintaining a specific credit rating.

As at (millions)	March 31, 2022		December 31, 2021
Net available	$	1,336	$	850
Backstop of commercial paper		1,414		1,900
Gross available	$	2,750	$	2,750

We had $195 million of letters of credit outstanding as at March 31, 2022 (December 31, 2021 – $193 million), issued under various uncommitted facilities; such letter of credit facilities are in addition to the ability to provide letters of credit pursuant to our committed bank credit facility.

(e) TELUS International (Cda) Inc. credit facility

As at March 31, 2022, TELUS International (Cda) Inc. had a credit facility, secured by its assets, expiring on January 28, 2025, with a syndicate of financial institutions, joined in 2020 by TELUS Corporation. The credit facility is comprised of US$620 million (TELUS Corporation as a lender of approximately 7.5%) and US$230 million (TELUS Corporation as a lender of 12.5%) revolving components and amortizing US$600 million (TELUS Corporation as 12.5% lender) and US$250 million term loan components. The credit facility is non-recourse to TELUS Corporation. The outstanding revolving components and term loan components had a weighted average interest rate of 2.16% as at March 31, 2022.

As at (millions)	March 31, 2022						December 31, 2021
	Revolving components 1		Term loan components 2		Total		Revolving components		Term loan components		Total
Available	US$	749	US$	N/A	US$	749	US$	725	US$	N/A	US$	725
Outstanding
Due to other		88		727		815		109		737		846
Due to TELUS Corporation		13		70		83		16		71		87
	US$	850	US$	797	US$	1,647	US$	850	US$	808	US$	1,658

1 Revolving component available is gross of swingline draw of US$3 (December 31, 2021 – US$8).

2 We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on US$93 of the debt to a fixed rate of 2.64%.

Relative to amounts owed to the syndicate of financial institutions, excluding TELUS Corporation, we have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert an amortizing amount of US$392 of the principal payments, and associated interest obligations, to European euro obligations with an effective fixed interest rate of 0.65% and an effective fixed economic exchange rate of US$1.0932:€1.00. These have been accounted for as a net investment hedge in a foreign operation (see Note 4).

The TELUS International (Cda) Inc. credit facility bears interest at prime rate, U.S. Dollar Base Rate, a bankers’ acceptance rate or London interbank offered rate (LIBOR) (all such terms as used or defined in the credit facility), plus applicable margins. The credit facility contains customary representations, warranties and covenants, including two financial quarter-end ratio tests; the TELUS International (Cda) Inc. quarter-end net debt to operating cash flow ratio must not exceed: 4.50:1.00 during fiscal 2022 and 3.75:1.00 subsequently; the quarter-end operating cash flow to debt service (interest and scheduled principal repayment) ratio must not be less than 1.50:1.00; all as defined in the credit facility.

38 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

The term loan components are subject to an amortization schedule which requires that 5% of the principal advanced be repaid each year of the term of the agreement, with the balance due at maturity and December 22, 2022, for the US$250 million component, respectively.

(f) Other

Other liabilities bear interest at 3.19%, are secured by the AWS-4 spectrum licences associated with these other liabilities and a real estate holding, and are subject to amortization schedules, so that the principal is repaid over the periods to maturity, the last period ending March 31, 2035.

(g) Lease liabilities

Lease liabilities are subject to amortization schedules, so that the principal is repaid over various periods, including reasonably expected renewals. The weighted average interest rate on lease liabilities was approximately 3.90% as at March 31, 2022.

(h) Long-term debt maturities

Anticipated requirements to meet long-term debt repayments, calculated for long-term debt owing as at March 31, 2022, are as follows:

Composite long-term debt denominated in	Canadian dollars						U.S. dollars											Other currencies
											Currency swap agreement amounts to be exchanged
Years ending December 31 (millions)	Long-term debt, excluding leases		Leases (Note 19)		Total		Long-term debt, excluding leases		Leases (Note 19)		(Receive) 1			Pay		Total		Leases (Note 19)		Total
2022 (remainder of year)	$	262	$	275	$	537	$	1,731	$	23	$	(1,437	)	$	1,457	$	1,774	$	29	$	2,340
2023		533		255		788		33		29		(28	)		28		62		35		885
2024		1,118		225		1,343		33		15		(28	)		28		48		28		1,419
2025		1,019		114		1,133		635		13		(400	)		406		654		19		1,806
2026		1,420		92		1,512		—		13		—			—		13		16		1,541
2027-2031		4,163		280		4,443		1,375		8		(1,375	)		1,459		1,467		40		5,950
Thereafter		4,663		288		4,951		2,687		—		(1,562	)		1,646		2,771		—		7,722
Future cash outflows in respect of composite long-term debt principal repayments		13,178		1,529		14,707		6,494		101		(4,830	)		5,024		6,789		167		21,663
Future cash outflows in respect of associated interest and like carrying costs 2		6,484		318		6,802		2,577		16		(3,663	)		3,795		2,725		31		9,558
Undiscounted contractual maturities (Note 4(b))	$	19,662	$	1,847	$	21,509	$	9,071	$	117	$	(8,493	)	$	8,819	$	9,514	$	198	$	31,221

1 Where applicable, cash flows reflect foreign exchange rates as at March 31, 2022.

2 Future cash outflows in respect of associated interest and like carrying costs for commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect as at March 31, 2022.

27 other long-term liabilities

As at (millions)	Note	March 31, 2022		December 31, 2021
Contract liabilities	24	$	83	$	82
Other			2		3
Deferred revenues			85		85
Pension benefit liabilities	15		452		643
Other post-employment benefit liabilities			67		66
Derivative liabilities	4(d)		96		73
Investment in real estate joint ventures	21(b)		9		9
Other			42		23
			751		899
Deferred customer activation and connection fees	24		8		8
		$	759	$	907

  March 31, 2022 | 39  

notes to condensed interim consolidated financial statements (unaudited)

28 owners’ equity

(a) TELUS Corporation Common Share capital – general

Our authorized share capital is as follows:

As at	March 31, 2022	December 31, 2021
First Preferred Shares	1 billion	1 billion
Second Preferred Shares	1 billion	1 billion
Common Shares	4 billion	4 billion

Only holders of Common Shares may vote at our general meetings, with each holder of Common Shares entitled to one vote per Common Share held at all such meetings so long as not less than 66-2/3% of the issued and outstanding Common Shares are owned by Canadians. With respect to priority in the payment of dividends and 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: First Preferred Shares; Second Preferred Shares; and finally Common Shares.

As at March 31, 2022, approximately 57 million Common Shares were reserved for issuance from Treasury under a dividend reinvestment and share purchase plan (see Note 13(b)); approximately 20 million Common Shares were reserved for issuance from Treasury under a restricted share unit plan (see Note 14(b)); and approximately 93 million Common Shares were reserved for issuance from Treasury under a share option plan (see Note 14(d)).

(b) Purchase of TELUS Corporation Common Shares for cancellation pursuant to normal course issuer bid

As referred to in Note 3, we may purchase a portion of our Common Shares for cancellation pursuant to normal course issuer bids in order to maintain or adjust our capital structure. In June 2021, we received approval for a normal course issuer bid to purchase and cancel up to 16 million of our Common Shares (up to a maximum amount of $250 million) from June 4, 2021, to June 3, 2022.

(c) Subsidiary with significant non-controlling interest

Our TELUS International (Cda) Inc. subsidiary is incorporated under the Business Corporations Act (British Columbia) and has geographically dispersed operations with principal places of business in Asia, Central America, Europe and North America.

Due to the voting rights associated with the remaining multiple voting shares held by TELUS Corporation, as at March 31, 2022, we retained a 70.9% (December 31, 2021 – 70.9%) voting and controlling interest and a 55.0% (December 31, 2021 – 55.1%) economic interest in TELUS International (Cda) Inc. Changes in interests during the three-month period ended March 31, 2022, and which are reflected in the statement of changes in owners’ equity, arose from share-based compensation.

Summarized financial information

Summarized financial information of our TELUS International (Cda) Inc. subsidiary is set out in the following table.

	Three months
As at, or for the periods ended, (millions) 1	March 31, 2022			March 31, 2021			December 31, 2021
Statement of financial position
Current assets	$	972					$	874
Non-current assets	$	3,660					$	3,804
Current liabilities	$	1,134					$	1,098
Non-current liabilities	$	1,374					$	1,475
Statement of income and other comprehensive income
Revenue and other income	$	759		$	639
Net income	$	45		$	5
Comprehensive income (loss)	$	2		$	(34	)
Statement of cash flows
Cash provided by operating activities	$	153		$	42
Cash used by investing activities	$	(27	)	$	(18	)
Cash used by financing activities	$	(66	)	$	(64	)

1 As required by IFRS-IASB, this summarized financial information excludes inter-company eliminations.

40 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

29 contingent liabilities

(a) Claims and lawsuits

General

A number of claims and lawsuits (including class actions and intellectual property infringement claims) seeking damages and other relief are pending against us and, in some cases, other mobile carriers and telecommunications service providers. As well, we have received notice of, or are aware of, certain possible claims (including intellectual property infringement claims) against us and, in some cases, other mobile carriers and telecommunications service providers.

It is not currently possible for us to predict the outcome of such claims, possible claims and lawsuits due to various factors, including: the preliminary nature of some claims; uncertain damage theories and demands; an incomplete factual record; uncertainty concerning legal theories and procedures and their resolution by the courts, at both the trial and the appeal levels; and the unpredictable nature of opposing parties and their demands.

However, subject to the foregoing limitations, management is of the opinion, based upon legal assessments and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would have a material effect on our financial position and the results of our operations, including cash flows, with the exception of the items enumerated following.

Certified class actions

Certified class actions against us include the following:

Per minute billing class action

In 2008, a class action was brought in Ontario against us alleging breach of contract, breach of the Ontario Consumer Protection Act, breach of the Competition Act and unjust enrichment, in connection with our practice of “rounding up” mobile airtime to the nearest minute and charging for the full minute. The action sought certification of a national class. In November 2014, an Ontario class only was certified by the Ontario Superior Court of Justice in relation to the breach of contract, breach of Consumer Protection Act, and unjust enrichment claims; all appeals of the certification decision have now been exhausted. At the same time, the Ontario Superior Court of Justice declined to stay the claims of our business customers, notwithstanding an arbitration clause in our customer service agreements with those customers. This latter decision was appealed and on May 31, 2017, the Ontario Court of Appeal dismissed our appeal. The Supreme Court of Canada granted us leave to appeal this decision and on April 4, 2019, granted our appeal and stayed the claims of business customers.

Call set-up time class actions

In 2005, a class action was brought against us in British Columbia alleging that we have engaged in deceptive trade practices in charging for incoming calls from the moment the caller connects to the network, and not from the moment the incoming call is connected to the recipient. In 2011, the Supreme Court of Canada upheld a stay of all of the causes of action advanced by the plaintiff in this class action, with one exception, based on the arbitration clause that was included in our customer service agreements. The sole exception was the cause of action based on deceptive or unconscionable practices under the British Columbia Business Practices and Consumer Protection Act, which the Supreme Court of Canada declined to stay. In January 2016, the British Columbia Supreme Court certified this class action in relation to the claim under the Business Practices and Consumer Protection Act. The class is limited to residents of British Columbia who contracted mobile services with us in the period from January 21, 1999, to April 2010. We have appealed the certification decision. A companion class action was brought against us in Alberta at the same time as the British Columbia class action. The Alberta class action duplicates the allegations in the British Columbia action, but has not proceeded to date and is not certified. Subject to a number of conditions, including court approval, we have now settled both the British Columbia and the Alberta class actions.

Uncertified class actions

Uncertified class actions against us include:

9-1-1 class actions

In 2008, a class action was brought in Saskatchewan against us and other Canadian telecommunications carriers alleging that, among other matters, we failed to provide proper notice of 9-1-1 charges to the public, have been deceitfully passing them off as government charges, and have charged 9-1-1 fees to customers who reside in areas where 9-1-1 service is not available. The plaintiffs advance causes of action in breach of contract, misrepresentation and false advertising and seek certification of a national class. A virtually identical class action was filed in Alberta at the same time, but the Alberta Court of Queen’s Bench declared that class action expired against us as of 2009. No steps have been taken in this proceeding since 2016.

  March 31, 2022 | 41  

notes to condensed interim consolidated financial statements (unaudited)

Public Mobile class actions

In 2014, class actions were brought against us in Quebec and Ontario on behalf of Public Mobile’s customers, alleging that changes to the technology, services and rate plans made by us contravene our statutory and common law obligations. In particular, the Quebec action alleges that our actions constitute a breach of the Quebec Consumer Protection Act, the Quebec Civil Code, and the Ontario Consumer Protection Act. On June 28, 2021, the Quebec Superior Court approved the discontinuance of this claim against TELUS. The Ontario class action alleges negligence, breach of express and implied warranty, breach of the Competition Act, unjust enrichment, and waiver of tort. No steps have been taken in this proceeding since it was filed and served.

Summary

We believe that we have good defences to the above matters. Should the ultimate resolution of these matters differ from management’s assessments and assumptions, a material adjustment to our financial position and the results of our operations, including cash flows, could result. Management’s assessments and assumptions include that reliable estimates of any such exposure cannot be made considering the continued uncertainty about: the nature of the damages that may be sought by the plaintiffs; the causes of action that are being, or may ultimately be, pursued; and, in the case of the uncertified class actions, the causes of action that may ultimately be certified.

(b) Concentration of labour

In 2021, we commenced collective bargaining with the Telecommunications Workers Union, United Steelworkers Local 1944, to renew a collective agreement that expired on December 31, 2021; the contract covered approximately 23% of our Canadian workforce as at March 31, 2022. The expired contract remains in effect while the parties are bargaining, until a new agreement is reached.

30 related party transactions

(a) Transactions with key management personnel

Our key management personnel have authority and responsibility for overseeing, planning, directing and controlling our activities and consist of our Board of Directors and our Executive Team.

Total compensation expense for key management personnel, and the composition thereof, is as follows:

	Three months
Periods ended March 31 (millions)	2022		2021
Short-term benefits	$	4	$	3
Post-employment pension 1 and other benefits		5		2
Share-based compensation 2		18		17
	$	27	$	22

1 Our Executive 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 and defined contribution pension plans.

2 We accrue an expense for the notional subset of our restricted share units with market performance conditions using a fair value determined by a Monte Carlo simulation. Restricted share units with an equity settlement feature are accounted for as equity instruments. The expense for restricted share units that do not ultimately vest is reversed against the expense that was previously recorded in their respect.

As disclosed in Note 14, we made initial awards of share-based compensation in 2022 and 2021, including, as set out in the following table, to our key management personnel. As most of these awards are cliff-vesting or graded-vesting and have multi-year requisite service periods, the related expense is being recognized rateably over a period of years and thus only a portion of the 2022 and 2021 initial awards are included in the amounts in the table above.

42 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

Three-month periods ended March 31	2022						2021
($ in millions)	Number of units		Notional value 1		Grant-date fair value 1		Number of  units		Notional value 1		Grant-date fair value 1
TELUS Corporation
Restricted share units		1,007,431	$	32	$	39		1,222,589	$	32	$	35
TELUS International (Cda) Inc.
Restricted share units		263,567		9		9		205,308		7		7
Share options		—		—		—		167,693		1		1
				9		9				8		8
			$	41	$	48			$	40	$	43

¹ The notional value of restricted share units is determined by multiplying the equity share price at the time of award by the number of units awarded; the grant-date fair value differs from the notional value because the fair values of some awards have been determined using a Monte Carlo simulation (see Note 14(b)). The notional value of share options has been determined using an option pricing model.

The amount recorded for liability-accounted restricted share units and share options awards outstanding as at March 31, 2022 was $6 million (December 31, 2021 – $7 million).

Our Directors’ Deferred Share Unit Plan provides that, in addition to his or her annual equity grant of deferred share units, a director may elect to receive his or her annual retainer and meeting fees in deferred share units, TELUS Corporation Common Shares or cash. Deferred share units entitle directors to a specified number of TELUS Corporation Common Shares. Deferred share units accounted for as liabilities have been paid out when a director ceased to be a director, for any reason, at a time elected by the director in accordance with the Directors’ Deferred Share Unit Plan; during the three-month periods ended March 31, 2022 and 2021, no amounts were paid out. As at March 31, 2022 and December 31, 2021, no liability-accounted awards were outstanding.

During the three-month period ended March 31, 2021, key management personnel exercised 255,973 TELUS International (Cda) Inc. share options, which had an intrinsic value of $7 million at the time of exercise, reflecting a weighted average price at the date of exercise of $39.58; no options were exercised during the three-month period ended March 31, 2022.

Employment agreements with members of the Executive Team typically provide for severance payments if an executive’s employment is terminated without cause: generally 18–24 months of base salary, benefits and accrual of pension service in lieu of notice, and 50% of base salary in lieu of an annual cash bonus. In the event of a change in control, Executive Team members are not entitled to treatment any different than that given to our other employees with respect to non-vested share-based compensation.

(b) Transactions with defined benefit pension plans

During the three-month period ended March 31, 2022, we provided management and administrative services to our defined benefit pension plans; the charges for these services were on a cost recovery basis and amounted to $2 million (2021 – $2 million).

(c) Transactions with real estate joint venture

During the three-month periods ended March 31, 2022 and 2021, we had transactions with the TELUS Sky real estate joint venture, which is a related party, as set out in Note 21. As at March 31, 2022, we had recorded lease liabilities of $94 million (December 31, 2021 – $95 million) in respect of our TELUS Sky lease, and monthly cash payments are made in accordance with the lease agreement; one-third of those amounts is due to our economic interest in the real estate joint venture.

  March 31, 2022 | 43  

notes to condensed interim consolidated financial statements (unaudited)

31 additional statement of cash flow information

(a) Statements of cash flows – operating activities and investing activities

		Three months
Periods ended March 31 (millions)	Note	2022			2021
OPERATING ACTIVITIES
Net change in non-cash operating working capital
Accounts receivable		$	235		$	86
Inventories			(65	)		(14	)
Contract assets			15			19
Prepaid expenses			(140	)		(128	)
Accounts payable and accrued liabilities			(155	)		(103	)
Income and other taxes receivable and payable, net			24			(80	)
Advance billings and customer deposits			15			(2	)
Provisions			(19	)		12
		$	(90	)	$	(210	)
INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences
Capital asset additions
Gross capital expenditures
Property, plant and equipment	17	$	(709	)	$	(582	)
Intangible assets subject to amortization	18		(198	)		(162	)
			(907	)		(744	)
Additions arising from leases	17		74			58
Additions arising from non-monetary transactions			—			1
Capital expenditures	5		(833	)		(685	)
Other non-cash items included above
Change in associated non-cash investing working capital			(180	)		(65	)
		$	(1,013	)	$	(750	)

44 | March 31, 2022    

notes to condensed interim consolidated financial statements (unaudited)

(b) Changes in liabilities arising from financing activities

			Statement of cash flows						Non-cash changes
(millions)	Beginning of period		Issued or received			Redemptions, repayments or payments			Foreign exchange movement (Note 4(e))			Other			End of period
THREE-MONTH PERIOD ENDED MARCH 31, 2021
Dividends payable to holders of Common Shares	$	403	$	—		$	(403	)	$	—		$	404		$	404
Dividends reinvested in shares from Treasury		—		—			152			—			(152	)		—
	$	403	$	—		$	(251	)	$	—		$	252		$	404
Short-term borrowings	$	100	$	—		$	—		$	—		$	—		$	100
Long-term debt
TELUS Corporation senior notes	$	15,021	$	—		$	—		$	(37	)	$	3		$	14,987
TELUS Corporation commercial paper		731		975			(778	)		(10	)		—			918
TELUS Communications Inc. debentures		622		—			—			—			—			622
TELUS International (Cda) Inc. credit facility		1,804		—			(624	)		(13	)		1			1,168
Other		273		—			(5	)		—			52			320
Lease liabilities		1,837		—			(123	)		(6	)		49			1,757
Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability		120		785			(791	)		23			(76	)		61
		20,408		1,760			(2,321	)		(43	)		29			19,833
To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt		—		(785	)		785			—			—			—
	$	20,408	$	975		$	(1,536	)	$	(43	)	$	29		$	19,833
THREE-MONTH PERIOD ENDED MARCH 31, 2022
Dividends payable to holders of Common Shares	$	449	$	—		$	(449	)	$	—		$	450		$	450
Dividends reinvested in shares from Treasury		—		—			156			—			(156	)		—
	$	449	$	—		$	(293	)	$	—		$	294		$	450
Short-term borrowings	$	114	$	—		$	(6	)	$	—		$	—		$	108
Long-term debt
TELUS Corporation senior notes	$	15,258	$	1,143		$	—		$	(61	)	$	(12	)	$	16,328
TELUS Corporation commercial paper		1,900		1,144			(1,616	)		(14	)		—			1,414
TELUS Communications Inc. debentures		448		—			—			—			—			448
TELUS International (Cda) Inc. credit facility		1,062		—			(39	)		(15	)		1			1,009
Other		308		—			(75	)		—			71			304
Lease liabilities		1,876		—			(123	)		(6	)		69			1,816
Derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt – liability (asset)		4		1,623			(1,629	)		63			(73	)		(12	)
		20,856		3,910			(3,482	)		(33	)		56			21,307
To eliminate effect of gross settlement of derivatives used to manage currency risk arising from U.S. dollar-denominated long-term debt		—		(1,623	)		1,623			—			—			—
	$	20,856	$	2,287		$	(1,859	)	$	(33	)	$	56		$	21,307

  March 31, 2022 | 45