31additional statement of cash flow information

(a)Statements of cash flows — operating activities, investing activities and financing activities

		Three months						Six months
Periods ended June 30 (millions)	Note	2018			2017			2018			2017
					(adjusted — Note 2(c))						(adjusted — Note 2(c))
OPERATING ACTIVITIES
Net change in non-cash operating working capital
Accounts receivable		$	(34	)	$	53		$	169		$	115
Inventories		17			6			50			(3		)
Contract assets		(3		)	(11		)	(3		)	3
Prepaid expenses		(26		)	(63		)	(147		)	(186		)
Accounts payable and accrued liabilities		194			70			(164		)	(111		)
Income and other taxes receivable and payable, net		87			7			172			(85		)
Advance billings and customer deposits		(7		)	4			(16		)	47
Provisions		13			(10		)	4			(61		)

		$	241		$	56		$	65		$	(281	)

INVESTING ACTIVITIES
Cash payments for capital assets, excluding spectrum licences
Capital asset additions
Gross capital expenditures
Property, plant and equipment	17	$	(639	)	$	(655	)	$	(1,160	)	$	(1,227	)
Intangible assets	18	(158		)	(155		)	(295		)	(309		)

		(797		)	(810		)	(1,455		)	(1,536		)
Additions arising from non-monetary transactions		6			—			14			2

Capital expenditures		(791		)	(810		)	(1,441		)	(1,534		)
Change in associated non-cash investing working capital		56			56			(32		)	(16		)

		$	(735	)	$	(754	)	$	(1,473	)	$	(1,550	)

FINANCING ACTIVITIES
Issue of shares by subsidiary to non-controlling interests
Issue of shares		$	—		$	—		$	43		$	1
Non-monetary issue of shares in business combination	18(b)	—			—			(19		)	—

Cash proceeds on share issuance		—			—			24			1
Transaction costs and other		—			—			—			(1		)

		$	—		$	—		$	24		$	—

(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(f))			Other			End of period
THREE-MONTH PERIOD ENDED JUNE 30, 2017
Dividends paid to holders of Common Shares	$	283	$	—		$	(283	)	$	—		$	293		$	293
Dividends reinvested in shares from Treasury	—		—			23			—			(23		)	—

	$	283	$	—		$	(260	)	$	—		$	270		$	293

Short-term borrowings	$	100	$	—		$	—		$	—		$	—		$	100

Long-term debt
TELUS Corporation notes	$	11,638	$	—		$	—		$	(35	)	$	2		$	11,605
TELUS Corporation commercial paper	1,122		1,543			(1,614		)	(19		)	—			1,032
TELUS Communications Inc. debentures	619		—			—			—			—			619
TELUS International (Cda) Inc. credit facility	298		—			(4		)	(8		)	2			288
Derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt — liability	38		1,614			(1,607		)	54			(35		)	64

	13,715		3,157			(3,225		)	(8		)	(31		)	13,608
To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt	—		(1,614		)	1,614			—			—			—

	$	13,715	$	1,543		$	(1,611	)	$	(8	)	$	(31	)	$	13,608

THREE-MONTH PERIOD ENDED JUNE 30, 2018
Dividends paid to holders of Common Shares	$	299	$	—		$	(299	)	$	—		$	315		$	315
Dividends reinvested in shares from Treasury	—		—			21			—			(21		)	—

	$	299	$	—		$	(278	)	$	—		$	294		$	315

Short-term borrowings	$	100	$	26		$	(13	)	$	—		$	—		$	113

Long-term debt
TELUS Corporation notes	$	12,094	$	975		$	—		$	43		$	(22	)	$	13,090
TELUS Corporation commercial paper	843		304			(1,154		)	10			—			3
TELUS Communications Inc. debentures	620		—			—			—			—			620
TELUS International (Cda) Inc. credit facility	433		—			(11		)	9			1			432
Derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt — liability	59		1,154			(1,136		)	(53		)	39			63

	14,049		2,433			(2,301		)	9			18			14,208
To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt	—		(1,154		)	1,154			—			—			—

	$	14,049	$	1,279		$	(1,147	)	$	9		$	18		$	14,208

			Statement of cash flows						Non-cash changes
(millions)	Beginning of period		Issued or received			Redemptions, repayments or payments			Foreign exchange movement (Note 4(f))			Other			End of period
SIX-MONTH PERIOD ENDED JUNE 30, 2017
Dividends paid to holders of Common Shares	$	284	$	—		$	(567	)	$	—		$	576		$	293
Dividends reinvested in shares from Treasury	—		—			23			—			(23		)	—

	$	284	$	—		$	(544	)	$	—		$	553		$	293

Short-term borrowings	$	100	$	—		$	—		$	—		$	—		$	100

Long-term debt
TELUS Corporation notes	$	11,367	$	990		$	(700	)	$	(43	)	$	(9	)	$	11,605
TELUS Corporation commercial paper	613		3,071			(2,630		)	(22		)	—			1,032
TELUS Communications Inc. debentures	619		—			—			—			—			619
TELUS International (Cda) Inc. credit facility	332		—			(35		)	(11		)	2			288
Derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt — liability	20		2,630			(2,625		)	65			(26		)	64

	12,951		6,691			(5,990		)	(11		)	(33		)	13,608
To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt	—		(2,630		)	2,630			—			—			—

	$	12,951	$	4,061		$	(3,360	)	$	(11	)	$	(33	)	$	13,608

SIX-MONTH PERIOD ENDED JUNE 30, 2018
Dividends paid to holders of Common Shares	$	299	$	—		$	(598	)	$	—		$	614		$	315
Dividends reinvested in shares from Treasury	—		—			41			—			(41		)	—

	$	299	$	—		$	(557	)	$	—		$	573		$	315

Short-term borrowings	$	100	$	26		$	(19	)	$	—		$	6		$	113

Long-term debt
TELUS Corporation notes	$	11,561	$	1,725		$	(250	)	$	81		$	(27	)	$	13,090
TELUS Corporation commercial paper	1,140		1,618			(2,798		)	43			—			3
TELUS Communications Inc. debentures	620		—			—			—			—			620
TELUS International (Cda) Inc. credit facility	339		97			(22		)	19			(1		)	432
Derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt — liability	93		2,798			(2,770		)	(124		)	66			63

	13,753		6,238			(5,840		)	19			38			14,208
To eliminate effect of gross settlement of derivatives used to manage currency risks arising from U.S. dollar denominated long-term debt	—		(2,798		)	2,798			—			—			—

	$	13,753	$	3,440		$	(3,042	)	$	19		$	38		$	14,208