share-based compensation (Tables)

6 Months Ended

Jun. 30, 2018

Details of share-based compensation expense

Periods ended June 30 (millions)		2018							2017
	Note	Employee benefits expense		Associated operating cash outflows			Statement of cash flows adjustment		Employee benefits expense		Associated operating cash outflows			Statement of cash flows adjustment
THREE-MONTH
Restricted stock units	(b)	$	34	$	1		$	35	$	21	$	2		$	23
Employee share purchase plan	(c)	9		(9		)	—		9		(9		)	—

		$	43	$	(8	)	$	35	$	30	$	(7	)	$	23

Periods ended June 30 (millions)		2018							2017
	Note	Employee benefits expense		Associated operating cash outflows			Statement of cash flows adjustment		Employee benefits expense		Associated operating cash outflows			Statement of cash flows adjustment
SIX-MONTH
Restricted stock units	(b)	$	52	$	1		$	53	$	37	$	2		$	39
Employee share purchase plan	(c)	18		(18		)	—		18		(18		)	—

		$	70	$	(17	)	$	53	$	55	$	(16	)	$	39

TELUS Corporation restricted stock units

share-based compensation

Disclosure of restricted stocks units

Number of non-vested restricted stock units as at	June 30, 2018	December 31, 2017
Restricted stock units without market performance conditions
Restricted stock units with only service conditions	4,888,913	3,327,464
Notional subset affected by total customer connections performance condition	230,562	154,452

	5,119,475	3,481,916
Restricted stock units with market performance conditions
Notional subset affected by relative total shareholder return performance condition	691,686	463,357

	5,811,161	3,945,273

Period ended June 30, 2018	Three months						Six months
	Number of restricted stock units 1				Weighted average grant-date		Number of restricted stock units 1				Weighted average grant-date
	Non-vested		Vested		fair value		Non-vested		Vested		fair value
Outstanding, beginning of period
Non-vested	5,063,888		—		$	43.09	3,481,916		—		$	41.87
Vested	—		8,354		$	40.71	—		32,848		$	41.00
Issued
Initial award	74,851		—		$	45.59	1,691,408		—		$	45.69
In lieu of dividends	56,788		94		$	44.89	93,846		185		$	45.80
Vested	(22,996	)	22,996		$	42.26	(35,478	)	35,478		$	42.06
Settled in cash	—		(23,355	)	$	42.24	—		(60,422	)	$	41.66
Forfeited and cancelled	(53,056	)	—		$	43.05	(112,217	)	—		$	41.36

Outstanding, end of period
Non-vested	5,119,475		—		$	43.13	5,119,475		—		$	43.13
Vested	—		8,089		$	40.71	—		8,089		$	40.71

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

Vesting in years ending December 31	Number of fixed-cost restricted stock units	Our fixed cost per restricted stock unit		Number of variable-cost restricted stock units	Total number of non-vested restricted stock units 1
2018	1,845,970	$	41.07	19,209	1,865,179
2019	1,439,418	$	45.53	280,605	1,720,023
2020	1,369,272	$	48.71	383,120	1,752,392

	4,654,660			682,934	5,337,594

(1)

Excluding the notional subset of restricted stock units affected by the relative total shareholder return performance condition vesting in years ending December 31, 2018 and 2019.

TELUS International (Cda) Inc. restricted stock units

share-based compensation

Disclosure of restricted stocks units

Periods ended June 30, 2018	Three months							Six months
	US$ denominated				Canadian $ denominated			US$ denominated				Canadian $ denominated
	Number of restricted stock units		Weighted average grant-date fair value		Number of restricted stock units	Weighted average grant-date fair value		Number of restricted stock units		Weighted average grant-date fair value		Number of restricted stock units	Weighted average grant-date fair value
Outstanding, beginning of period
Non-vested	376,058		US$	24.50	—	$	—	374,786		US$	24.45	—	$	—
Vested	—		US$	—	32,299	$	21.36	—		US$	—	32,299	$	21.36
Issued - initial award	79,186		US$	28.37	—	$	—	81,808		US$	28.35	—	$	—
Forfeited and cancelled	(2,448	)	US$	24.53	—	$	—	(3,798	)	US$	24.38	—	$	—

Outstanding, end of period
Non-vested	452,796		US$	25.16	—	$	—	452,796		US$	25.16	—	$	—
Vested	—		US$	—	32,299	$	21.36	—		US$	—	32,299	$	21.36

TELUS Corporation share options

share-based compensation

Disclosure of stock options

Period ended June 30, 2018	Three months				Six months
	Number of share options		Weighted average share option price		Number of share options		Weighted average share option price
Outstanding, beginning of period	452,041		$	29.08	740,471		$	26.99
Exercised 1	(41,894	)	$	28.13	(320,213	)	$	24.29
Forfeited	(456	)	$	29.19	(834	)	$	29.19
Expired	—		$	—	(9,733	)	$	23.24

Outstanding, end of period 2	409,691		$	29.18	409,691		$	29.18

(1)

The total intrinsic value of share option awards exercised for the three-month and six-month periods ended June 30, 2018, was $1 million (reflecting a weighted average price at the dates of exercise of $45.86 per share) and $7 million (reflecting a weighted average price at the dates of exercise of $45.70 per share), respectively. The difference between the number of share options exercised and the number of Common Shares issued (as reflected in the Consolidated statements of changes in owners’ equity) is the effect of our choosing to settle share option award exercises using the net-equity settlement feature.

(2)

All outstanding TELUS Corporation share options are vested, their range of prices is $25.30 — $31.69 per share and their weighted average remaining contractual life is 0.9 years.

TELUS International (Cda) Inc. share options

share-based compensation

Disclosure of stock options

Periods ended June 30, 2018	Three months						Six months
	US$ denominated			Canadian $ denominated			US$ denominated				Canadian $ denominated
	Number of share options	Weighted average share option price 1		Number of share options	Share option price 2		Number of share options		Weighted average share option price 1		Number of share options	Share option price 2
Outstanding, beginning	747,454	US$	30.12	53,832	$	21.36	748,626		US$	30.12	53,832	$	21.36
Forfeited	—	US$	—	—	$	—	(1,172	)	US$	27.70	—	$	—

Outstanding, end of period	747,454	US$	30.12	53,832	$	21.36	747,454		US$	30.12	53,832	$	21.36

(1)

The range of share option prices is US$21.90 – US$40.26 per TELUS International (Cda) Inc. equity share and the weighted average remaining contractual life is 8.7 years.

(2)

The weighted average remaining contractual life is 8.0 years.