Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Emerging Growth Company | false |
Entity Registrant Name | BCE INC |
Entity Central Index Key | 0000718940 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Type | 40-F |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding (in shares) | 898,200,415 |
Amendment Flag | false |
Consolidated income statements
Consolidated income statements - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | ||
Total operating revenues | $ 23,468 | $ 22,757 |
Operating costs | (13,933) | (13,475) |
Severance, acquisition and other costs | (136) | (190) |
Depreciation | (3,145) | (3,034) |
Amortization | (869) | (810) |
Finance costs | ||
Interest expense | (1,000) | (955) |
Interest on post-employment benefit obligations | (69) | (72) |
Other expense | (348) | (102) |
Income taxes | (995) | (1,069) |
Net earnings (losses) | 2,973 | 3,050 |
Net earnings attributable to: | ||
Common shareholders | 2,785 | 2,866 |
Preferred shareholders | 144 | 128 |
Non-controlling interest | 44 | 56 |
Net earnings (losses) | $ 2,973 | $ 3,050 |
Net earnings per common share | ||
Basic and diluted (in cad per share) | $ 3.10 | $ 3.20 |
Average number of common shares outstanding - basic (millions) (in shares) | 898.6 | 894.3 |
Consolidated statements of comp
Consolidated statements of comprehensive income - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of comprehensive income [abstract] | |||
Net earnings | $ 2,973 | $ 3,050 | |
Items that will be subsequently reclassified to net earnings | |||
Net change in value of publicly-traded and privately-held investments, net of income taxes of nil for 2018 and 2017 | 6 | 0 | |
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($15) million and $21 million for 2018 and 2017, respectively (1) | [1] | 43 | (65) |
Items that will not be reclassified to net earnings | |||
Actuarial gains (losses) on post-employment benefit plans, net of income taxes of ($25) million and $92 million for 2018 and 2017, respectively | 67 | (246) | |
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($23) million and nil for 2018 and 2017, respectively (1) | [1] | 61 | 0 |
Other comprehensive income (loss) | 177 | (311) | |
Total comprehensive (loss) income | 3,150 | 2,739 | |
Total comprehensive income attributable to: | |||
Common shareholders | 2,957 | 2,557 | |
Preferred shareholders | 144 | 128 | |
Non-controlling interest | 49 | 54 | |
Total comprehensive (loss) income | $ 3,150 | $ 2,739 | |
[1] | Amounts relating to the net change in value of derivatives for the year ended December 31, 2017 have not been restated, in accordance with the transition requirements upon adoption of IFRS 9 - Financial Instruments on January 1, 2018. See Note 2, Significant accounting policies, for further details. |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Items that will be subsequently reclassified to net earnings | ||
Income tax relating to financial assets measured at fair value through other comprehensive income included in other comprehensive income | $ 0 | $ 0 |
Income tax relating to cash flow hedges | (15) | 21 |
Items that will not be reclassified to net earnings | ||
Income tax relating to actuarial losses on post-employment benefit plans | (25) | 92 |
Income tax relating to cash flow hedges | $ (23) | $ 0 |
Consolidated statements of fina
Consolidated statements of financial position - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Current assets | |||
Cash | $ 425 | $ 442 | $ 603 |
Cash equivalents | 0 | 183 | 250 |
Trade and other receivables | 3,006 | 3,129 | 2,988 |
Inventory | 432 | 380 | 403 |
Contract assets | 987 | 832 | 738 |
Contract costs | 370 | 350 | 343 |
Prepaid expenses | 244 | 217 | 231 |
Other current assets | 329 | 122 | 198 |
Total current assets | 5,793 | 5,655 | 5,754 |
Non-current assets | |||
Contract assets | 506 | 431 | 383 |
Contract costs | 337 | 286 | 275 |
Property, plant and equipment | 24,844 | 24,029 | 22,341 |
Intangible assets | 13,205 | 13,258 | 11,998 |
Deferred tax assets | 112 | 144 | 89 |
Investments in associates and joint ventures | 798 | 814 | 852 |
Other non-current assets | 847 | 757 | 897 |
Goodwill | 10,658 | 10,428 | 8,958 |
Total non-current assets | 51,307 | 50,147 | 45,793 |
Total assets | 57,100 | 55,802 | 51,547 |
Current liabilities | |||
Trade payables and other liabilities | 3,941 | 3,875 | 3,671 |
Contract liabilities | 703 | 693 | 645 |
Interest payable | 196 | 168 | 156 |
Dividends payable | 691 | 678 | 617 |
Current tax liabilities | 253 | 140 | 122 |
Debt due within one year | 4,645 | 5,178 | 4,887 |
Total current liabilities | 10,429 | 10,732 | 10,098 |
Non-current liabilities | |||
Contract liabilities | 196 | 201 | 203 |
Long-term debt | 19,760 | 18,215 | 16,572 |
Deferred tax liabilities | 3,163 | 2,870 | 2,585 |
Post-employment benefit obligations | 1,866 | 2,108 | 2,105 |
Other non-current liabilities | 997 | 1,051 | 1,068 |
Total non-current liabilities | 25,982 | 24,445 | 22,533 |
Total liabilities | 36,411 | 35,177 | 32,631 |
Commitments and contingencies | |||
EQUITY | |||
Contributed surplus | 1,170 | 1,162 | 1,160 |
Accumulated other comprehensive income (loss) | 90 | (17) | 46 |
Deficit | (4,937) | (4,938) | (4,978) |
Total equity attributable to BCE shareholders | 20,363 | 20,302 | 18,602 |
Non-controlling interest | 326 | 323 | 314 |
Total equity | 20,689 | 20,625 | 18,916 |
Total liabilities and equity | 57,100 | 55,802 | 51,547 |
Preferred shares | |||
EQUITY | |||
Shares | 4,004 | 4,004 | 4,004 |
Common shares | |||
EQUITY | |||
Shares | $ 20,036 | $ 20,091 | $ 18,370 |
Consolidated statements of chan
Consolidated statements of changes in equity - CAD ($) $ in Millions | Total | SHARES ISSUEDPREFERRED SHARES | SHARES ISSUEDCOMMON SHARES | CONTRI-BUTED SURPLUS | ACCUM-ULATED OTHER COMPRE-HENSIVE (LOSS) INCOME | DEFICIT | TOTAL | NON-CONTR-OLLING INTEREST |
Beginning Balance at Dec. 31, 2016 | $ 18,916 | $ 4,004 | $ 18,370 | $ 1,160 | $ 46 | $ (4,978) | $ 18,602 | $ 314 |
Net earnings | 3,050 | 2,994 | 2,994 | 56 | ||||
Other comprehensive income (loss) | (311) | (63) | (246) | (309) | (2) | |||
Total comprehensive (loss) income | 2,739 | (63) | 2,748 | 2,685 | 54 | |||
Common shares issued under employee stock option plan | 116 | 122 | (6) | 116 | ||||
Common shares issued under employee savings plan | 5 | 5 | 5 | |||||
Other share-based compensation | (8) | 8 | (16) | (8) | ||||
Common shares issued for acquisitions | 1,594 | 1,594 | 1,594 | |||||
Dividends declared on BCE common and preferred shares | (2,692) | (2,692) | (2,692) | |||||
Dividends declared by subsidiaries to non-controlling interest | (45) | (45) | ||||||
Ending Balance (Previously stated) at Dec. 31, 2017 | 20,625 | 4,004 | 20,091 | 1,162 | (17) | (4,938) | 20,302 | 323 |
Ending Balance at Dec. 31, 2017 | 20,625 | 4,004 | 20,091 | 1,162 | (17) | (4,938) | 20,302 | 323 |
Net earnings | 2,973 | 2,929 | 2,929 | 44 | ||||
Other comprehensive income (loss) | 177 | 106 | 66 | 172 | 5 | |||
Total comprehensive (loss) income | 3,150 | 106 | 2,995 | 3,101 | 49 | |||
Common shares issued under employee stock option plan | 12 | 13 | (1) | 12 | ||||
Common shares issued under employee savings plan | 0 | |||||||
Other share-based compensation | (12) | 12 | (24) | (12) | ||||
Repurchase of common shares | (175) | (69) | (3) | (103) | (175) | |||
Common shares issued for acquisitions | 1 | 1 | 1 | |||||
Dividends declared on BCE common and preferred shares | (2,856) | (2,856) | (2,856) | |||||
Dividends declared by subsidiaries to non-controlling interest | (5) | (5) | ||||||
Settlement of cash flow hedges transferred to the cost basis of hedged items | 1 | 1 | 1 | |||||
Return of capital to non-controlling interest | (51) | (7) | (7) | (44) | ||||
Other | 3 | 3 | ||||||
Ending Balance at Dec. 31, 2018 | $ 20,689 | $ 4,004 | $ 20,036 | $ 1,170 | $ 90 | $ (4,937) | $ 20,363 | $ 326 |
Consolidated statements of cash
Consolidated statements of cash flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net earnings | $ 2,973 | $ 3,050 |
Adjustments to reconcile net earnings to cash flows from operating activities | ||
Severance, acquisition and other costs | 136 | 190 |
Depreciation and amortization | 4,014 | 3,844 |
Post-employment benefit plans cost | 335 | 314 |
Net interest expense | 987 | 942 |
Losses on investments | 34 | 5 |
Income taxes | 995 | 1,069 |
Contributions to post-employment benefit plans | (539) | (413) |
Payments under other post-employment benefit plans | (75) | (77) |
Severance and other costs paid | (138) | (147) |
Interest paid | (990) | (965) |
Income taxes paid (net of refunds) | (650) | (675) |
Acquisition and other costs paid | (79) | (155) |
Net change in operating assets and liabilities | 381 | 376 |
Cash flows from operating activities | 7,384 | 7,358 |
Cash flows used in investing activities | ||
Capital expenditures | (3,971) | (4,034) |
Business acquisitions | (395) | (1,649) |
Disposition of intangibles and other assets | 68 | 323 |
Acquisition of spectrum licenses | (56) | 0 |
Other investing activities | (32) | (77) |
Cash flows used in investing activities | (4,386) | (5,437) |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | (123) | 333 |
Issue of long-term debt | 2,996 | 3,011 |
Repayment of long-term debt | (2,713) | (2,653) |
Issue of common shares | 11 | 117 |
Purchase of shares for settlement of share-based payments | (222) | (224) |
Repurchase of common shares | (175) | 0 |
Cash dividends paid on common shares | (2,679) | (2,512) |
Cash dividends paid on preferred shares | (149) | (127) |
Cash dividends paid by subsidiaries to non-controlling interest | (16) | (34) |
Return of capital to non-controlling interest | (51) | 0 |
Other financing activities | (77) | (60) |
Cash flows used in financing activities | (3,198) | (2,149) |
Net decrease in cash | (17) | (161) |
Cash at beginning of year | 442 | 603 |
Cash at end of year | 425 | 442 |
Net decrease in cash equivalents | (183) | (67) |
Cash equivalents at beginning of year | 183 | 250 |
Cash equivalents at end of year | $ 0 | $ 183 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Corporate information | We, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries; and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba. Note 1 Corporate information BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers nationally across Canada. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home (OOH) advertising services to customers nationally across Canada. The consolidated financial statements (financial statements) were approved by BCE’s board of directors on March 7, 2019. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Significant accounting policies | Note 2 Significant accounting policies A) Basis of presentation The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as described in our accounting policies. Effective January 1, 2018, we applied IFRS 15 retrospectively to each prior period presented. The impacts of adopting IFRS 15 on our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with our statements of financial position as at January 1, 2017 and December 31, 2017, are provided in this note in section T) Adoption of new or amended accounting standards and Note 34, Adoption of IFRS 15. All amounts are in millions of Canadian dollars, except where noted. FUNCTIONAL CURRENCY The financial statements are presented in Canadian dollars, the company’s functional currency. B) Basis of consolidation We consolidate the financial statements of all of our subsidiaries. Subsidiaries are entities we control, where control is achieved when the company is exposed or has the right to variable returns from its involvement with the investee and has the current ability to direct the activities of the investee that significantly affect the investee’s returns. The results of subsidiaries acquired during the year are consolidated from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. All intercompany transactions, balances, income and expenses are eliminated on consolidation. Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on Other comprehensive income (loss) . C) Revenue from contracts with customers Revenue is measured based on the value of the expected consideration in a contract with a customer and excludes sales taxes and other amounts we collect on behalf of third parties. We recognize revenue when control of a product or service is transferred to a customer. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For bundled arrangements, we account for individual products and services when they are separately identifiable and the customer can benefit from the product or service on its own or with other readily available resources. The total arrangement consideration is allocated to each product or service included in the contract with the customer based on its stand-alone selling price. We generally determine stand-alone selling prices based on the observable prices at which we sell products separately without a service contract and prices for non-bundled service offers with the same range of services, adjusted for market conditions and other factors, as appropriate. When similar products and services are not sold separately, we use the expected cost plus margin approach to determine stand-alone selling prices. Products and services purchased by a customer in excess of those included in the bundled arrangement are accounted for separately. We may enter into arrangements with subcontractors and others who provide services to our customers. When we act as the principal in these arrangements, we recognize revenues based on the amounts billed to our customers. Otherwise, we recognize the net amount that we retain as revenues. A contract asset is recognized in the consolidated statements of financial position (statements of financial position) when our right to consideration from the transfer of products or services to a customer is conditional on our obligation to transfer other products or services. Contract assets are transferred to trade receivables when our right to consideration becomes conditional only as to the passage of time. A contract liability is recognized in the statements of financial position when we receive consideration in advance of the transfer of products or services to the customer. Contract assets and liabilities relating to the same contract are presented on a net basis. Incremental costs of obtaining a contract with a customer, principally comprised of sales commissions and prepaid contract fulfillment costs, are included in contract costs in the statements of financial position, except where the amortization period is one year or less, in which case costs of obtaining a contract are immediately expensed. Capitalized costs are amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services. WIRELESS SEGMENT REVENUES Our Wireless segment principally generates revenue from providing integrated digital wireless voice and data communications products and services to residential and business customers. We recognize product revenues from the sale of wireless handsets and devices when a customer takes possession of the product. We recognize wireless service revenues over time, as the services are provided. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate. For wireless products and services that are sold separately, customers usually pay in full at the point of sale for products and on a monthly basis for services. For wireless products and services sold in bundled arrangements, customers pay monthly over a contract term of up to 24 months for residential customers and up to 36 months for business customers. WIRELINE SEGMENT REVENUES Our Wireline segment principally generates revenue from providing data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, satellite TV service and connectivity, as well as other communications services and products to residential and business customers. Our Wireline segment also includes revenues from our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers. We recognize product revenues from the sale of wireline equipment when a customer takes possession of the product. We recognize service revenues over time, as the services are provided. Revenues on certain long-term contracts are recognized using output methods based on products delivered, performance completed to date, time elapsed or milestones met. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate, or the expected cost plus margin approach for customized business arrangements. For wireline customers, products are usually paid in full at the point of sale. Services are paid on a monthly basis except where a billing schedule has been established with certain business customers under long-term contracts that can generally extend up to seven years. MEDIA SEGMENT REVENUES Our Media segment principally generates revenue from conventional TV, specialty TV, digital media, radio broadcasting and OOH advertising and subscriber fees from specialty TV, pay TV and streaming services. We recognize advertising revenue when advertisements are aired on the radio or TV, posted on our websites or appear on our advertising panels and street furniture. Revenues relating to subscriber fees are recorded on a monthly basis as the services are provided. Customer payments are due monthly as the services are provided. D) Share-based payments Our share-based payment arrangements include stock options, restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP). STOCK OPTIONS We use a fair value-based method to measure the cost of our employee stock options, based on the number of stock options that are expected to vest. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s estimate of the number of stock options that are expected to vest. We credit contributed surplus for stock option expense recognized over the vesting period. When stock options are exercised, we credit share capital for the amount received and the amounts previously credited to contributed surplus. RSUs/PSUs For each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares. Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs are settled in BCE common shares, DSUs, or a combination thereof. DSUs If compensation is elected to be taken in DSUs, we issue DSUs equal to the fair value of the services received. Additional DSUs are issued to reflect dividends declared on the common shares. DSUs are settled in BCE common shares purchased on the open market following the cessation of employment or when a director leaves the board. We credit contributed surplus for the fair value of DSUs at the issue date. Upon settlement of the DSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. ESP We recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus for the ESP expense recognized over the two -year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. DSP For each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share. Deferred shares are no longer granted except those issued to reflect dividends declared on common shares. Compensation expense is adjusted for subsequent changes in the market value of BCE common shares. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant. E) Income and other taxes Current and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items recognized in Other comprehensive income (loss) or directly in equity. A current or non-current tax asset (liability) is the estimated tax receivable (payable) on taxable earnings (loss) for the current or past periods. We use the liability method to account for deferred tax assets and liabilities, which arise from: • temporary differences between the carrying amount of assets and liabilities recognized in the statements of financial position and their corresponding tax bases • the carryforward of unused tax losses and credits, to the extent they can be used in the future Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply when the asset or liability is recovered or settled. Both our current and deferred tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted at the reporting date. Deferred taxes are provided on temporary differences arising from investments in subsidiaries, joint arrangements and associates, except where we control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Tax liabilities are, where permitted, offset against tax assets within the same taxable entity and tax jurisdiction. INVESTMENT TAX CREDITS (ITCs), OTHER TAX CREDITS AND GOVERNMENT GRANTS We recognize ITCs, other tax credits and government grants given on eligible expenditures when it is reasonably assured that they will be realized. They are presented as part of Trade and other receivables in the statements of financial position when they are expected to be utilized in the next year. We use the cost reduction method to account for ITCs and government grants, under which the credits are applied against the expense or asset to which the ITC or government grant relates. F) Cash equivalents Cash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase. G) Securitization of trade receivables Proceeds on the securitization of trade receivables are recognized as a collateralized borrowing as we do not transfer control and substantially all the risks and rewards of ownership to another entity. H) Inventory We measure inventory at the lower of cost and net realizable value. Inventory includes all costs to purchase, convert and bring the inventories to their present location and condition. We determine cost using specific identification for major equipment held for resale and the weighted average cost formula for all other inventory. We maintain inventory valuation reserves for inventory that is slow-moving or potentially obsolete, calculated using an inventory aging analysis. I) Property, plant and equipment We record property, plant and equipment at historical cost. Historical cost includes expenditures that are attributable directly to the acquisition or construction of the asset, including the purchase cost, and labour. Borrowing costs are capitalized for qualifying assets, if the time to build or develop is in excess of one year, at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other expense in the income statements. LEASES Leases of property, plant and equipment are recognized as finance leases when we obtain substantially all the risks and rewards of ownership of the underlying assets. At the inception of the lease, we record an asset together with a corresponding long-term lease liability, at the lower of the fair value of the leased asset or the present value of the minimum future lease payments. If there is reasonable certainty that the lease transfers ownership of the asset to us by the end of the lease term, the asset is amortized over its useful life. Otherwise, the asset is amortized over the shorter of its useful life and the lease term. The long-term lease liability is measured at amortized cost using the effective interest method. All other leases are classified as operating leases. We recognize operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease. ASSET RETIREMENT OBLIGATIONS (AROs) We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows and changes in discount rates. We capitalize asset retirement costs as part of the related assets and amortize them into earnings over time. We also increase the ARO and record a corresponding amount in interest expense to reflect the passage of time. J) Intangible assets FINITE-LIFE INTANGIBLE ASSETS Finite-life intangible assets are recorded at cost less accumulated amortization, and accumulated impairment losses, if any. SOFTWARE We record internal-use software at historical cost. Cost includes expenditures that are attributable directly to the acquisition or development of the software, including the purchase cost and labour. Software development costs are capitalized when all the following conditions are met: • technical feasibility can be demonstrated • management has the intent and the ability to complete the asset for use or sale • it is probable that economic benefits will be generated • costs attributable to the asset can be measured reliably CUSTOMER RELATIONSHIPS Customer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition. PROGRAM AND FEATURE FILM RIGHTS We account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization, and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when: • we receive a broadcast master and the cost is known or reasonably determinable for new program and feature film licences; or • the licence term commences for licence period extensions or syndicated programs Related liabilities of programs and feature films are classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements. INDEFINITE-LIFE INTANGIBLE ASSETS Brand assets, mainly comprised of the Bell, Bell Media and Bell MTS brands, and broadcast licences are acquired through business combinations and are recorded at fair value at the date of acquisition, less accumulated impairment losses, if any. Wireless spectrum licences are recorded at acquisition cost, including borrowing costs when the time to build or develop the related network is in excess of one year. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Currently there are no legal, regulatory, competitive or other factors that limit the useful lives of our brands or spectrum licences. K) Depreciation and amortization We depreciate property, plant and equipment and amortize finite-life intangible assets on a straight-line basis over their estimated useful lives. We review our estimates of useful lives on an annual basis and adjust depreciation and amortization on a prospective basis, as required. Land and assets under construction or development are not depreciated. ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years L) Investments in associates and joint arrangements Our financial statements incorporate our share of the results of our associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other expense in the income statements. Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income or loss on an after-tax basis. Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment. We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements. M) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value at the date of acquisition. Acquisition-related transaction costs are expensed as incurred and recorded in Severance, acquisition and other costs in the income statements. Identifiable assets and liabilities, including intangible assets, of acquired businesses are recorded at their fair values at the date of acquisition. When we acquire control of a business, any previously-held equity interest is remeasured to fair value and any gain or loss on remeasurement is recognized in Other expense in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other expense in the income statements immediately as a bargain purchase gain. Changes in our ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Any difference between the change in the carrying amount of non-controlling interest (NCI) and the consideration paid or received is attributed to owner’s equity. N) Impairment of non-financial assets Goodwill and indefinite-life intangible assets are tested for impairment annually or when there is an indication that the asset may be impaired. Property, plant and equipment and finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, indicate that their carrying amount may not be recoverable. For the purpose of impairment testing, assets other than goodwill are grouped at the lowest level for which there are separately identifiable cash inflows. Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. Previously recognized impairment losses, other than those attributable to goodwill, are reviewed for possible reversal at each reporting date and, if the asset’s recoverable amount has increased, all or a portion of the impairment is reversed. GOODWILL IMPAIRMENT TESTING We perform an annual test for goodwill impairment in the fourth quarter for each of our cash generating units (CGUs) or groups of CGUs to which goodwill is allocated, and whenever there is an indication that goodwill might be impaired. A CGU is the smallest identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets. We identify any potential impairment by comparing the carrying value of a CGU or group of CGUs to its recoverable amount. The recoverable amount of a CGU or group of CGUs is the higher of its fair value less costs of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill. An impairment charge is recognized in Other expense in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4 , Segmented information . O) Financial instruments and contract assets We measure trade and other receivables at amortized cost using the effective interest method, net of any allowance for doubtful accounts. Our portfolio investments in equity securities are classified as fair value through other comprehensive income (FVOCI) and are presented in our statements of financial position as Other non-current assets . These securities are recorded at fair value on the date of acquisition, including related transaction costs, and are adjusted to fair value at each reporting date. The corresponding unrealized gains and losses are recorded in Other comprehensive income (loss) in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified from Accumulated other comprehensive (loss) income to Deficit in the statements of financial position when realized. Other financial liabilities, which include trade payables and accruals, compensation payable, obligations imposed by the Canadian Radio-television and Telecommunications Commission (CRTC), interest payable and long-term debt, are recorded at amortized cost using the effective interest method. We measure the allowance for doubtful accounts and impairment of contract assets based on an expected credit loss (ECL) model, which takes into account current economic conditions, historical information, and forward-looking information. We use the simplified approach for measuring losses based on the lifetime ECL for trade and other receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statements. The cost of issuing debt is included as part of long-term debt and is accounted for at amortized cost using the effective interest method. The cost of issuing equity is reflected in the consolidated statements of changes in equity as a charge to the deficit. P) Derivative financial instruments We use derivative financial instruments to manage interest rate risk, foreign currency risk and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes. Derivatives that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas derivatives that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities . HEDGE ACCOUNTING To qualify for hedge accounting, we document the relationship between the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, commitment, or anticipated transaction. We assess the effectiveness of a derivative in managing an identified risk exposure when hedge accounting is initially applied, and on an ongoing basis thereafter. If a hedging relationship ceases to meet the qualifying criteria, we discontinue hedge accounting prospectively. CASH FLOW HEDGES We enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to anticipated debt issuances. We use foreign currency forward contracts to manage the foreign currency exposure relating to anticipated purchases and sales denominated in foreign currencies. Changes in the fair value of these foreign currency forward contracts are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other expense in the income statements. Realized gains and losses in Accumulated other comprehensive (loss) income are reclassified to the income statements or to the initial cost of the non-financial asset in the same periods as the corresponding hedged transactions are recognized. We use cross currency basis swaps and foreign currency forward contracts to manage our U.S. dollar debt under our U.S. commercial paper program and our U.S. dollar long-term debt. Changes in the fair value of these derivatives and the related debt are recognized in Other expense in the income statements and offset, unless a portion of the hedging relationship is ineffective. DERIVATIVES USED AS ECONOMIC HEDGES We use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, and equity price risk related to a cash-settled share-based payment plan. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other expense for other derivatives. Q) Post-employment benefit plans DEFINED BENEFIT (DB) AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS We maintain DB pension plans that provide pension benefits for certain employees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation. We are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods permitted by pension regulatory bodies. Contributions reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy. We provide OPEBs to some of our employees, including: • healthcare and life insurance benefits during retirement, which were phased out for new retirees since December 31, 2016. We do not fund most of these OPEB plans. • other benefits, including workers’ compensation and medical benefits to former or inactive employees, their beneficiaries and dependants, from the time their employment ends until their retirement starts, under certain circumstances We accrue our obligations and related costs under post-employment benefit plans, net of the fair value of the benefit plan assets. Pension and OPEB costs are determined using: • the projected unit credit method, prorated on years of service, which takes into account future pay levels • a discount rate based on market interest rates of high-quality corporate fixed income investments with maturities that match the timing of benefits expected to be paid under the plans • management’s best estimate of pay increases, retirement ages of employees, expected healthcare costs and life expectancy We value post-employment benefit plan assets at fair value using current market values. Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit plans. The interest rate is based on market conditions that existed at the beginning of the year. Actuarial gains and losses for all post-employment benefit plans are recorded in Other comprehensive income (loss) in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit. December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management's assumptions at least every three years to determine the actuarial present value of the accrued DB pension plan and OPEB obligations. The most recent actuarial valuation of our significant pension plans was as at December 31, 2017. DEFINED CONTRIBUTION (DC) PENSION PLANS We maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary. We recognize a post-employment benefit plans service cost for DC pension plans when the employee provides service to the company, essentially coinciding with our cash contributions. Gen |
Business acquisitions and dispo
Business acquisitions and dispositions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations1 [Abstract] | |
Business acquisitions and dispositions | Note 3 Business acquisitions and dispositions 2018 Acquisition of Axia NetMedia Corporation (Axia) On August 31, 2018, BCE completed the acquisition of all of the issued and outstanding common shares of Axia for a total cash consideration of $155 million . Axia provides broadband network services to commercial and government accounts throughout the province of Alberta. The acquisition of Axia expands BCE's broadband operations in Alberta and will add approximately 10,000 kilometres of fibre capacity to our footprint. Axia is included in our Bell Wireline segment in our consolidated financial statements. The purchase price allocation includes provisional estimates, in particular for property, plant and equipment and finite-life intangible assets. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 155 Total cost to be allocated 155 Trade and other receivables 6 Other non-cash working capital (9 ) Property, plant and equipment 64 Finite-life intangible assets 19 Other non-current liabilities (8 ) 72 Cash and cash equivalents 3 Fair value of net assets acquired 75 Goodwill (1) 80 (1) Goodwill arises principally from expected synergies and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs. The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2018. Acquisition of AlarmForce On January 5, 2018, BCE acquired all of the issued and outstanding shares of AlarmForce for a total consideration of $182 million , of which $181 million was paid in cash and the remaining $1 million through the issuance of 22,531 BCE common shares. Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce's approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to TELUS Communications Inc. (Telus) for total proceeds of approximately $68 million . AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers. The acquisition of AlarmForce supports our strategic expansion in the Smart Home marketplace. AlarmForce is included in our Bell Wireline segment in our consolidated financial statements. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 181 Issuance of 22,531 BCE common shares (1) 1 Total cost to be allocated 182 Assets held for sale (2) 68 Other non-cash working capital (5 ) Property, plant and equipment 8 Finite-life intangible assets (3) 34 Indefinite-life intangible assets 1 Other non-current assets 1 Deferred tax liabilities (7 ) 100 Cash and cash equivalents 4 Fair value of net assets acquired 104 Goodwill (4) 78 (1) Recorded at fair value based on the market price of BCE common shares on the acquisition date. (2) Consists mainly of customer relationships recorded at fair value less costs to sell. (3) Consists mainly of customer relationships. (4) Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs. Operating revenues of $43 million from AlarmForce are included in the consolidated income statements from the date of acquisition. The transaction did not have a significant impact on our consolidated net earnings for the year ended December 31, 2018. These amounts reflect the amortization of certain elements of the purchase price allocation and related tax adjustments. Termination of agreement to acquire Séries+ and Historia specialty channels On October 17, 2017, BCE entered into an agreement with Corus Entertainment Inc. (Corus) to acquire French-language specialty channels Séries+ and Historia. On May 28, 2018, the Competition Bureau announced that it did not approve the sale of the channels to BCE. As a result, BCE and Corus terminated their agreement. 2017 Acquisition of MTS On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS for a total consideration of $2,933 million , of which $1,339 million was paid in cash and the remaining $1,594 million through the issuance of approximately 27.6 million BCE common shares. BCE funded the cash component of the transaction through debt financing. Bell MTS is an information and communications technology provider offering wireless, Internet, TV, phone services, security systems and information solutions including unified cloud and managed services to residential and business customers in Manitoba. The acquisition of MTS allows us to reach more Canadians through the expansion of our wireless and wireline broadband networks while supporting our goal of being recognized by customers as Canada’s leading communications company. The results from the acquired MTS operations are included in our Bell Wireline and Bell Wireless segments from the date of acquisition. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. Total Cash consideration 1,339 Issuance of 27.6 million BCE common shares (1) 1,594 Total cost to be allocated 2,933 Trade and other receivables 91 Other non-cash working capital (6) (121 ) Assets held for sale (2) 302 Property, plant and equipment 978 Finite-life intangible assets (3) (6) 929 Indefinite-life intangible assets (4) 280 Deferred tax assets 32 Other non-current assets (6) 137 Debt due within one year (251 ) Long-term debt (721 ) Other non-current liabilities (6) (50 ) 1,606 Cash and cash equivalents (16 ) Fair value of net assets acquired 1,590 Goodwill (5) 1,343 (1) Recorded at fair value based on the market price of BCE common shares on the acquisition date. (2) Consists of finite-life and indefinite-life intangible assets recorded at fair value less costs to sell. (3) Consists mainly of customer relationships. (4) Indefinite-life intangible assets of $228 million and $52 million were allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively. (5) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. Goodwill arising from the transaction of $677 million and $666 million was allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively. ( 6) Reflects the impact of the retrospective adoption of IFRS 15 on January 1, 2018. See Note 34, Adoption of IFRS 15, for additional details. As a result of the acquisition of MTS, we acquired non-capital tax loss carryforwards of approximately $1.5 billion and recognized a deferred tax asset of approximately $300 million which was realized in 2017. In 2017, operating revenues of $730 million and net earnings of $100 million from the acquired MTS operations are included in the consolidated income statements from the date of acquisition. BCE’s consolidated operating revenues and net earnings for the year ended December 31, 2017 would have been $22,950 million and $3,061 million , respectively, had the acquisition of MTS occurred on January 1, 2017. These proforma amounts reflect the elimination of intercompany transactions, financing costs and the amortization of certain elements of the purchase price allocation and related tax adjustments. During Q2 2017, BCE completed the previously announced divestiture of approximately one-quarter of postpaid wireless subscribers and 15 retail locations previously held by MTS, as well as certain Manitoba network assets, to Telus for total proceeds of $323 million . Subsequent to the acquisition of MTS, on March 17, 2017, BCE transferred to Xplornet Communications Inc. (Xplornet) a total of 40 Megahertz (MHz) of 700 MHz, advanced wireless services-1 and 2500 MHz wireless spectrum which was previously held by MTS. As previously agreed to, BCE transferred wireless customers to Xplornet in Q4 2018 as Xplornet launched its mobile wireless service. Acquisition of Cieslok Media Ltd. (Cieslok Media) On January 3, 2017, BCE acquired all of the issued and outstanding common shares of Cieslok Media for a total cash consideration of $161 million . Cieslok Media specializes in large-format outdoor advertising in key urban areas across Canada. This acquisition contributes to growing and strengthening our digital presence in OOH advertising. Cieslok Media is included in our Bell Media segment in our consolidated financial statements. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 161 Total cost to be allocated 161 Trade and other receivables 11 Other non-cash working capital (4 ) Property, plant and equipment 13 Finite-life intangible assets 6 Indefinite-life intangible assets 76 Deferred tax liabilities (20 ) Other non-current liabilities (1 ) 81 Cash and cash equivalents 1 Fair value of net assets acquired 82 Goodwill (1) 79 ( 1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs. The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31, 2017. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
Segmented information | Note 4 Segmented information The accounting policies used in our segment reporting are the same as those we describe in Note 2 , Significant accounting policies . Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance. Accordingly, we operate and manage our segments as strategic business units organized by products and services. Segments negotiate sales with each other as if they were unrelated parties. We measure the performance of each segment based on segment profit, which is equal to operating revenues less operating costs for the segment. Substantially all of our severance, acquisition and other costs, depreciation and amortization, finance costs and other expense are managed on a corporate basis and, accordingly, are not reflected in segment results. Substantially all of our operations and assets are located in Canada. On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. The results from the acquired MTS operations are included in our Bell Wireless and Bell Wireline segments from the date of acquisition. Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers across Canada. Our Bell Wireline segment provides data, including Internet access and IPTV, local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and OOH advertising services to customers nationally across Canada. Segmented information FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE BELL WIRELESS BELL WIRELINE BELL MEDIA INTER- SEGMENT ELIMINA- TIONS BCE Operating revenues External customers 8,372 12,419 2,677 — 23,468 Inter-segment 50 243 444 (737 ) — Total operating revenues 8,422 12,662 3,121 (737 ) 23,468 Operating costs 5 (4,856 ) (7,386 ) (2,428 ) 737 (13,933 ) Segment profit (1) 3,566 5,276 693 — 9,535 Severance, acquisition and other costs 6 (136 ) Depreciation and amortization 15, 16 (4,014 ) Finance costs Interest expense 7 (1,000 ) Interest on post-employment benefit obligations 24 (69 ) Other expense 8 (348 ) Income taxes 9 (995 ) Net earnings 2,973 Goodwill 19 3,048 4,679 2,931 — 10,658 Indefinite-life intangible assets 16 3,948 1,692 2,467 — 8,107 Capital expenditures 656 3,201 114 — 3,971 (1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs. FOR THE YEAR ENDED DECEMBER 31, 2017 NOTE BELL WIRELESS BELL WIRELINE BELL MEDIA INTER- SEGMENT ELIMINA- TIONS BCE Operating revenues External customers 7,881 12,200 2,676 — 22,757 Inter-segment 45 200 428 (673 ) — Total operating revenues 7,926 12,400 3,104 (673 ) 22,757 Operating costs 5 (4,550 ) (7,210 ) (2,388 ) 673 (13,475 ) Segment profit (1) 3,376 5,190 716 — 9,282 Severance, acquisition and other costs 6 (190 ) Depreciation and amortization 15, 16 (3,844 ) Finance costs Interest expense 7 (955 ) Interest on post-employment benefit obligations 24 (72 ) Other expense 8 (102 ) Income taxes 9 (1,069 ) Net earnings 3,050 Goodwill 19 3,032 4,497 2,899 — 10,428 Indefinite-life intangible assets 16 3,891 1,692 2,645 — 8,228 Capital expenditures 731 3,174 129 — 4,034 (1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs. Revenues by services and products The following table presents our revenues disaggregated by type of services and products. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Services (1) Wireless 6,258 6,048 Data 7,466 7,192 Voice 3,793 3,968 Media 2,677 2,676 Other services 247 211 Total services 20,441 20,095 Products (2) Wireless 2,114 1,833 Data 466 410 Equipment and other 447 419 Total products 3,027 2,662 Total operating revenues 23,468 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. |
Operating costs
Operating costs | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Operating costs | Note 5 Operating costs FOR THE YEAR ENDED DECEMBER 31 NOTE 2018 2017 Labour costs Wages, salaries and related taxes and benefits (4,274 ) (4,156 ) Post-employment benefit plans service cost (net of capitalized amounts) 24 (266 ) (242 ) Other labour costs (1) (1,043 ) (1,056 ) Less: Capitalized labour 1,093 1,043 Total labour costs (4,490 ) (4,411 ) Cost of revenues (2) (7,360 ) (7,014 ) Other operating costs (3) (2,083 ) (2,050 ) Total operating costs (13,933 ) (13,475 ) (1) Other labour costs include contractor and outsourcing costs. (2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers. (3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent. Research and development expenses of $106 million and $119 million are included in operating costs for 2018 and 2017 , respectively. |
Severance, acquisition and othe
Severance, acquisition and other costs | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Severance, acquisition and other costs | Note 6 Severance, acquisition and other costs FOR THE YEAR ENDED DECEMBER 31 2018 2017 Severance (92 ) (79 ) Acquisition and other (44 ) (111 ) Total severance, acquisition and other costs (136 ) (190 ) Severance costs Severance costs consist of charges related to workforce reduction initiatives and include a 4% reduction in management workforce across BCE in 2018. Acquisition and other costs Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations and litigation costs, when they are significant. Acquisition costs also include a loss on transfer of spectrum licences relating to the MTS acquisition in 2017. |
Interest expense
Interest expense | 12 Months Ended |
Dec. 31, 2018 | |
Borrowing costs [abstract] | |
Interest expense | Note 7 Interest expense FOR THE YEAR ENDED DECEMBER 31 2018 2017 Interest expense on long-term debt (918 ) (898 ) Interest expense on other debt (133 ) (101 ) Capitalized interest 51 44 Total interest expense (1,000 ) (955 ) Interest expense on long-term debt includes interest on finance leases of $142 million and $145 million for 2018 and 2017 , respectively. Capitalized interest was calculated using an average rate of 3.88% and 3.81% for 2018 and 2017 , respectively, which represents the weighted average interest rate on our outstanding long-term debt. |
Other expense
Other expense | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Other expense | Note 8 Other expense FOR THE YEAR ENDED DECEMBER 31 NOTE 2018 2017 Impairment of assets 15, 16 (200 ) (82 ) Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans (1) (80 ) 76 Equity losses from investments in associates and joint ventures 17 Loss on investment (20 ) (22 ) Operations (15 ) (9 ) Loss on investments (34 ) (5 ) Early debt redemption costs 22 (20 ) (20 ) Gains (losses) on retirements and disposals of property, plant and equipment and intangible assets 11 (47 ) Other (1) 10 7 Total other expense (348 ) (102 ) (1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period. Impairment of assets 2018 Impairment charges in 2018 included $145 million allocated to indefinite-life intangible assets, and $14 million allocated to finite-life intangible assets. These impairment charges primarily relate to our French TV channels within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels and subscriber erosion. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five -year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2019 to December 31, 2023, using a discount rate of 8.0% to 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $515 million at December 31, 2018. In the previous year’s impairment analysis, the company’s French Pay and French Specialty TV channels were tested for recoverability separately. In 2018, the CGUs were grouped to form one French CGU which reflects the evolution of the cash flows from our content strategies as well as the CRTC beginning to regulate Canadian broadcasters under a group licence approach based on language. Additionally, in 2018, we recorded an indefinite-life intangible asset impairment charge of $31 million within our Bell Media segment as a result of a strategic decision to retire a brand. 2017 In 2017, we recorded impairment charges of $82 million , of which $70 million was allocated to indefinite-life intangible assets, and $12 million to finite-life intangible assets. The impairment charges relate to our music TV channels and two small market radio station CGUs within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five -year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2018 to December 31, 2022, using a discount rate of 8.5% and a perpetuity growth rate of nil , as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $67 million at December 31, 2017. Equity losses from investments in associates and joint ventures We recorded a loss on investment of $20 million in 2018 and 2017, related to equity losses on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures. Losses on investments In 2018, we recorded losses on investments of $34 million which included a loss on an obligation to repurchase at fair value the minority interest in one of our subsidiaries. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income taxes | Note 9 Income taxes The following table shows the significant components of income taxes deducted from net earnings. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Current taxes Current taxes (775 ) (758 ) Uncertain tax positions 8 (9 ) Change in estimate relating to prior periods 12 40 Deferred taxes Deferred taxes relating to the origination and reversal of temporary differences (352 ) (71 ) Change in estimate relating to prior periods 8 11 Recognition and utilization of loss carryforwards 44 (304 ) Effect of change in provincial corporate tax rate — (3 ) Resolution of uncertain tax positions 60 25 Total income taxes (995 ) (1,069 ) The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.0% and 27.1% for 2018 and 2017, respectively. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Net earnings 2,973 3,050 Add back income taxes 995 1,069 Earnings before income taxes 3,968 4,119 Applicable statutory tax rate 27.0 % 27.1 % Income taxes computed at applicable statutory rates (1,071 ) (1,116 ) Non-taxable portion of losses on investments (9 ) (1 ) Uncertain tax positions 68 16 Effect of change in provincial corporate tax rate — (3 ) Change in estimate relating to prior periods 20 51 Non-taxable portion of equity losses (10 ) (10 ) Other 7 (6 ) Total income taxes (995 ) (1,069 ) Average effective tax rate 25.1 % 25.9 % The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements. FOR THE YEAR ENDED DECEMBER 31 2018 2017 OTHER COMPREHENSIVE INCOME DEFICIT OTHER COMPREHENSIVE LOSS DEFICIT Current taxes 41 5 10 9 Deferred taxes (104 ) (11 ) 103 2 Total income taxes (expense) recovery (63 ) (6 ) 113 11 The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards. NET DEFERRED TAX LIABILITY NOTE NON- CAPITAL LOSS CARRY- FORWARDS POST EMPLOYMENT BENEFIT PLANS INDEFINITE- LIFE INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS INVESTMENT TAX CREDITS CRTC TANGIBLE BENEFITS OTHER TOTAL January 1, 2017 21 454 (1,680 ) (1,198 ) (9 ) 44 (128 ) (2,496 ) Income statement (304 ) (31 ) (8 ) 10 7 (14 ) (2 ) (342 ) Business acquisitions 3 300 (11 ) (73 ) (209 ) (5 ) — 10 12 Other comprehensive income — 82 — — — — 21 103 Deficit — — — — — — 2 2 Other — — — (3 ) — — (2 ) (5 ) December 31, 2017 17 494 (1,761 ) (1,400 ) (7 ) 30 (99 ) (2,726 ) Income statement 109 (14 ) (2 ) (248 ) 3 (14 ) (74 ) (240 ) Business acquisitions 3 — — (16 ) — — 1 (12 ) Other comprehensive income — (65 ) — — — — (39 ) (104 ) Deficit — — — — — — (11 ) (11 ) Other — — — 15 — — 27 42 December 31, 2018 129 415 (1,763 ) (1,649 ) (4 ) 16 (195 ) (3,051 ) At December 31, 2018, BCE had $645 million of non-capital loss carryforwards. We: • recognized a deferred tax asset of $129 million for $478 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2024 to 2038. • did not recognize a deferred tax asset for $167 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2038. At December 31, 2018, BCE had $806 million of unrecognized capital loss carryforwards which can be carried forward indefinitely. At December 31, 2017, BCE had $208 million of non-capital loss carryforwards. We: • recognized a deferred tax asset of $17 million for $64 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2037. • did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2037. At December 31, 2017, BCE had $827 million of unrecognized capital loss carryforwards which can be carried forward indefinitely. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Earnings per share | Note 10 Earnings per share The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Net earnings attributable to common shareholders - basic 2,785 2,866 Dividends declared per common share (in dollars) 3.02 2.87 Weighted average number of common shares outstanding (in millions) Weighted average number of common shares outstanding - basic 898.6 894.3 Assumed exercise of stock options (1) 0.3 0.6 Weighted average number of common shares outstanding - diluted (in millions) 898.9 894.9 (1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 12,252,594 in 2018 and 3,031,125 in 2017. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and other receivables | Note 11 Trade and other receivables AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Trade receivables (1) 3,026 3,135 2,973 Allowance for doubtful accounts 26 (51 ) (54 ) (60 ) Allowance for revenue adjustments (106 ) (84 ) (83 ) Current tax receivable 14 31 35 Other accounts receivable 123 101 123 Total trade and other receivables 3,006 3,129 2,988 (1) The details of securitized trade receivables are set out in Note 21 , Debt due within one year . |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Inventory | Note 12 Inventory AS AT December 31, 2018 December 31, 2017 January 1, 2017 Wireless devices and accessories 202 179 179 Merchandise and other 230 201 224 Total inventory 432 380 403 The total amount of inventory subsequently recognized as an expense in cost of revenues was $2,980 million and $2,689 million for 2018 and 2017, respectively. |
Contracts assets and liabilitie
Contracts assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Contracts assets and liabilities, contract costs | Note 13 Contract assets and liabilities The table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances . Contract Assets (1) Contract liabilities FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 Opening balance, January 1 1,263 1,121 894 848 Revenue recognized included in contract liabilities at the beginning of the year — — (625 ) (634 ) Revenue recognized from contract liabilities included in contract assets at the beginning of the year 154 139 — — Increase in contract liabilities during the year — — 628 658 Increase in contract liabilities included in contract assets during the year (168 ) (144 ) — — Increase in contract assets from revenue recognized during the year 1,770 1,483 — — Contract assets transferred to trade receivables (1,321 ) (1,172 ) — — Acquisitions — 50 13 29 Contract terminations transferred to trade receivables (219 ) (207 ) (4 ) (2 ) Other 14 (7 ) (7 ) (5 ) Ending balance, December 31 1,493 1,263 899 894 (1) Net of allowance for doubtful accounts of $91 million , $96 million and $92 million at December 31,2018, December 31, 2017 and January 1, 2017, respectively. See Note 26 , Financial and capital management , for additional details. Note 14 Contract costs The table below provides a reconciliation of the contract costs balance . FOR THE YEAR ENDED DECEMBER 31 2018 2017 Opening balance, January 1 636 618 Incremental costs of obtaining a contract and contract fulfillment costs 567 526 Amortization included in operating costs (477 ) (508 ) Impairment charges included in operating costs (19 ) — Ending balance, December 31 707 636 Contract costs are amortized over a period ranging from 12 to 84 months. Note 30 Remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at December 31, 2018 . 2019 2020 2021 2022 2023 THEREAFTER TOTAL Wireline 1,261 821 512 261 81 80 3,016 Wireless 1,737 781 93 44 33 57 2,745 Total 2,998 1,602 605 305 114 137 5,761 When estimating minimum transaction prices allocated to the remaining unfulfilled, or partially unfulfilled, performance obligations, BCE applied the practical expedient to not disclose information about remaining performance obligations that have an original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. Note 34 Adoption of IFRS 15 As a result of adopting IFRS 15, we have changed the comparative figures for the year ended December 31, 2017 and the opening statement of financial position as at January 1, 2017. The impacts of adopting IFRS 15 on our previously reported 2017 results are provided below. Consolidated income statements The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated income statements. YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Operating revenues 22,719 38 22,757 Operating costs (13,541 ) 66 (13,475 ) Severance, acquisition and other costs (190 ) — (190 ) Depreciation (3,037 ) 3 (3,034 ) Amortization (813 ) 3 (810 ) Finance costs Interest expense (955 ) — (955 ) Interest on post-employment benefit obligations (72 ) — (72 ) Other expense (102 ) — (102 ) Income taxes (1,039 ) (30 ) (1,069 ) Net earnings 2,970 80 3,050 Net earnings attributable to: Common shareholders 2,786 80 2,866 Preferred shareholders 128 — 128 Non-controlling interest 56 — 56 Net earnings 2,970 80 3,050 Net earnings per common share - basic 3.12 0.08 3.20 Net earnings per common share - diluted 3.11 0.09 3.20 Average number of common shares outstanding - basic (millions) 894.3 — 894.3 Consolidated statement of financial position The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated statement of financial position. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Reclassifications (1) 2017 upon adoption of IFRS 15 Cash 442 — — 442 Cash equivalents 183 — — 183 Trade and other receivables 3,135 9 (15 ) 3,129 Inventory 380 — — 380 Contract assets — 923 (91 ) 832 Contract costs — 206 144 350 Prepaid expenses 375 — (158 ) 217 Other current assets 124 — (2 ) 122 Total current assets 4,639 1,138 (122 ) 5,655 Contract assets — 400 31 431 Contract costs — 162 124 286 Property, plant and equipment 24,033 (4 ) — 24,029 Intangible assets 13,305 — (47 ) 13,258 Deferred tax assets 144 — — 144 Investments in associates and joint ventures 814 — — 814 Other non-current assets 900 — (143 ) 757 Goodwill 10,428 — — 10,428 Total non-current assets 49,624 558 (35 ) 50,147 Total assets 54,263 1,696 (157 ) 55,802 Trade payables and other liabilities 4,623 — (748 ) 3,875 Contract liabilities — 97 596 693 Interest payable 168 — — 168 Dividends payable 678 — — 678 Current tax liabilities 140 — — 140 Debt due within one year 5,178 — — 5,178 Total current liabilities 10,787 97 (152 ) 10,732 Contract liabilities — 34 167 201 Long-term debt 18,215 — — 18,215 Deferred tax liabilities 2,447 423 — 2,870 Post-employment benefit obligations 2,108 — — 2,108 Other non-current liabilities 1,223 — (172 ) 1,051 Total non-current liabilities 23,993 457 (5 ) 24,445 Total liabilities 34,780 554 (157 ) 35,177 Preferred shares 4,004 — — 4,004 Common shares 20,091 — — 20,091 Contributed surplus 1,162 — — 1,162 Accumulated other comprehensive loss (17 ) — — (17 ) Deficit (6,080 ) 1,142 — (4,938 ) Total equity attributable to BCE shareholders 19,160 1,142 — 20,302 Non- controlling interest 323 — — 323 Total equity 19,483 1,142 — 20,625 Total liabilities and equity 54,263 1,696 (157 ) 55,802 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below shows the impacts of adopting IFRS 15 on our January 1, 2017 consolidated statement of financial position. AS AT January 1, 2017 IFRS 15 impacts Reclassifications (1) January 1, 2017 upon adoption of IFRS 15 Cash 603 — — 603 Cash equivalents 250 — — 250 Trade and other receivables 2,979 11 (2 ) 2,988 Inventory 403 — — 403 Contract assets — 851 (113 ) 738 Contract costs — 195 148 343 Prepaid expenses 420 — (189 ) 231 Other current assets 200 — (2 ) 198 Total current assets 4,855 1,057 (158 ) 5,754 Contract assets — 357 26 383 Contract costs — 151 124 275 Property, plant and equipment 22,346 (5 ) — 22,341 Intangible assets 11,998 — — 11,998 Deferred tax assets 89 — — 89 Investments in associates and joint ventures 852 — — 852 Other non-current assets 1,010 — (113 ) 897 Goodwill 8,958 — — 8,958 Total non-current assets 45,253 503 37 45,793 Total assets 50,108 1,560 (121 ) 51,547 Trade payables and other liabilities 4,326 — (655 ) 3,671 Contract liabilities — 71 574 645 Interest payable 156 — — 156 Dividends payable 617 — — 617 Current tax liabilities 122 — — 122 Debt due within one year 4,887 — — 4,887 Total current liabilities 10,108 71 (81 ) 10,098 Contract liabilities — 34 169 203 Long-term debt 16,572 — — 16,572 Deferred tax liabilities 2,192 393 — 2,585 Post-employment benefit obligations 2,105 — — 2,105 Other non-current liabilities 1,277 — (209 ) 1,068 Total non-current liabilities 22,146 427 (40 ) 22,533 Total liabilities 32,254 498 (121 ) 32,631 Preferred shares 4,004 — — 4,004 Common shares 18,370 — — 18,370 Contributed surplus 1,160 — — 1,160 Accumulated other comprehensive income 46 — — 46 Deficit (6,040 ) 1,062 — (4,978 ) Total equity attributable to BCE shareholders 17,540 1,062 — 18,602 Non- controlling interest 314 — — 314 Total equity 17,854 1,062 — 18,916 Total liabilities and equity 50,108 1,560 (121 ) 51,547 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below provides a reconciliation of our deficit at January 1, 2017 and December 31, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax. AT DECEMBER 31, 2017 AT JANUARY 1, 2017 Total deficit as previously reported (6,080 ) (6,040 ) Timing of revenue recognition 873 809 Cost to obtain a contract 269 253 Total deficit upon adoption of IFRS 15 (4,938 ) (4,978 ) Consolidated statement of cash flows The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows. YEAR ENDED DECEMBER 31, 2017 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Cash flows from operating activities Net earnings 2,970 80 3,050 Depreciation and amortization 3,850 (6 ) 3,844 Income taxes 1,039 30 1,069 Net change in operating assets and liabilities 480 (104 ) 376 Cash flows from operating activities 7,358 — 7,358 Revenues by services and products The following table s hows the impacts of adopting IFRS 15 on our revenues disaggregated by type. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Other (3) 2017 upon adoption of IFRS 15 Services (1) Wireless 7,308 (1,260 ) — 6,048 Data 7,146 (5 ) 51 7,192 Voice 3,800 3 165 3,968 Media 2,676 — — 2,676 Other services 213 (2 ) — 211 Total services 21,143 (1,264 ) 216 20,095 Products (2) Wireless 530 1,303 — 1,833 Data 519 1 (110 ) 410 Equipment and other 527 (2 ) (106 ) 419 Total products 1,576 1,302 (216 ) 2,662 Total operating revenues 22,719 38 — 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. (3) We have reclassified some of the amounts for previous periods to make them consistent with the presentation for the current period. |
Contract costs
Contract costs | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Contracts assets and liabilities, contract costs | Note 13 Contract assets and liabilities The table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances . Contract Assets (1) Contract liabilities FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 Opening balance, January 1 1,263 1,121 894 848 Revenue recognized included in contract liabilities at the beginning of the year — — (625 ) (634 ) Revenue recognized from contract liabilities included in contract assets at the beginning of the year 154 139 — — Increase in contract liabilities during the year — — 628 658 Increase in contract liabilities included in contract assets during the year (168 ) (144 ) — — Increase in contract assets from revenue recognized during the year 1,770 1,483 — — Contract assets transferred to trade receivables (1,321 ) (1,172 ) — — Acquisitions — 50 13 29 Contract terminations transferred to trade receivables (219 ) (207 ) (4 ) (2 ) Other 14 (7 ) (7 ) (5 ) Ending balance, December 31 1,493 1,263 899 894 (1) Net of allowance for doubtful accounts of $91 million , $96 million and $92 million at December 31,2018, December 31, 2017 and January 1, 2017, respectively. See Note 26 , Financial and capital management , for additional details. Note 14 Contract costs The table below provides a reconciliation of the contract costs balance . FOR THE YEAR ENDED DECEMBER 31 2018 2017 Opening balance, January 1 636 618 Incremental costs of obtaining a contract and contract fulfillment costs 567 526 Amortization included in operating costs (477 ) (508 ) Impairment charges included in operating costs (19 ) — Ending balance, December 31 707 636 Contract costs are amortized over a period ranging from 12 to 84 months. Note 30 Remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at December 31, 2018 . 2019 2020 2021 2022 2023 THEREAFTER TOTAL Wireline 1,261 821 512 261 81 80 3,016 Wireless 1,737 781 93 44 33 57 2,745 Total 2,998 1,602 605 305 114 137 5,761 When estimating minimum transaction prices allocated to the remaining unfulfilled, or partially unfulfilled, performance obligations, BCE applied the practical expedient to not disclose information about remaining performance obligations that have an original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. Note 34 Adoption of IFRS 15 As a result of adopting IFRS 15, we have changed the comparative figures for the year ended December 31, 2017 and the opening statement of financial position as at January 1, 2017. The impacts of adopting IFRS 15 on our previously reported 2017 results are provided below. Consolidated income statements The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated income statements. YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Operating revenues 22,719 38 22,757 Operating costs (13,541 ) 66 (13,475 ) Severance, acquisition and other costs (190 ) — (190 ) Depreciation (3,037 ) 3 (3,034 ) Amortization (813 ) 3 (810 ) Finance costs Interest expense (955 ) — (955 ) Interest on post-employment benefit obligations (72 ) — (72 ) Other expense (102 ) — (102 ) Income taxes (1,039 ) (30 ) (1,069 ) Net earnings 2,970 80 3,050 Net earnings attributable to: Common shareholders 2,786 80 2,866 Preferred shareholders 128 — 128 Non-controlling interest 56 — 56 Net earnings 2,970 80 3,050 Net earnings per common share - basic 3.12 0.08 3.20 Net earnings per common share - diluted 3.11 0.09 3.20 Average number of common shares outstanding - basic (millions) 894.3 — 894.3 Consolidated statement of financial position The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated statement of financial position. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Reclassifications (1) 2017 upon adoption of IFRS 15 Cash 442 — — 442 Cash equivalents 183 — — 183 Trade and other receivables 3,135 9 (15 ) 3,129 Inventory 380 — — 380 Contract assets — 923 (91 ) 832 Contract costs — 206 144 350 Prepaid expenses 375 — (158 ) 217 Other current assets 124 — (2 ) 122 Total current assets 4,639 1,138 (122 ) 5,655 Contract assets — 400 31 431 Contract costs — 162 124 286 Property, plant and equipment 24,033 (4 ) — 24,029 Intangible assets 13,305 — (47 ) 13,258 Deferred tax assets 144 — — 144 Investments in associates and joint ventures 814 — — 814 Other non-current assets 900 — (143 ) 757 Goodwill 10,428 — — 10,428 Total non-current assets 49,624 558 (35 ) 50,147 Total assets 54,263 1,696 (157 ) 55,802 Trade payables and other liabilities 4,623 — (748 ) 3,875 Contract liabilities — 97 596 693 Interest payable 168 — — 168 Dividends payable 678 — — 678 Current tax liabilities 140 — — 140 Debt due within one year 5,178 — — 5,178 Total current liabilities 10,787 97 (152 ) 10,732 Contract liabilities — 34 167 201 Long-term debt 18,215 — — 18,215 Deferred tax liabilities 2,447 423 — 2,870 Post-employment benefit obligations 2,108 — — 2,108 Other non-current liabilities 1,223 — (172 ) 1,051 Total non-current liabilities 23,993 457 (5 ) 24,445 Total liabilities 34,780 554 (157 ) 35,177 Preferred shares 4,004 — — 4,004 Common shares 20,091 — — 20,091 Contributed surplus 1,162 — — 1,162 Accumulated other comprehensive loss (17 ) — — (17 ) Deficit (6,080 ) 1,142 — (4,938 ) Total equity attributable to BCE shareholders 19,160 1,142 — 20,302 Non- controlling interest 323 — — 323 Total equity 19,483 1,142 — 20,625 Total liabilities and equity 54,263 1,696 (157 ) 55,802 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below shows the impacts of adopting IFRS 15 on our January 1, 2017 consolidated statement of financial position. AS AT January 1, 2017 IFRS 15 impacts Reclassifications (1) January 1, 2017 upon adoption of IFRS 15 Cash 603 — — 603 Cash equivalents 250 — — 250 Trade and other receivables 2,979 11 (2 ) 2,988 Inventory 403 — — 403 Contract assets — 851 (113 ) 738 Contract costs — 195 148 343 Prepaid expenses 420 — (189 ) 231 Other current assets 200 — (2 ) 198 Total current assets 4,855 1,057 (158 ) 5,754 Contract assets — 357 26 383 Contract costs — 151 124 275 Property, plant and equipment 22,346 (5 ) — 22,341 Intangible assets 11,998 — — 11,998 Deferred tax assets 89 — — 89 Investments in associates and joint ventures 852 — — 852 Other non-current assets 1,010 — (113 ) 897 Goodwill 8,958 — — 8,958 Total non-current assets 45,253 503 37 45,793 Total assets 50,108 1,560 (121 ) 51,547 Trade payables and other liabilities 4,326 — (655 ) 3,671 Contract liabilities — 71 574 645 Interest payable 156 — — 156 Dividends payable 617 — — 617 Current tax liabilities 122 — — 122 Debt due within one year 4,887 — — 4,887 Total current liabilities 10,108 71 (81 ) 10,098 Contract liabilities — 34 169 203 Long-term debt 16,572 — — 16,572 Deferred tax liabilities 2,192 393 — 2,585 Post-employment benefit obligations 2,105 — — 2,105 Other non-current liabilities 1,277 — (209 ) 1,068 Total non-current liabilities 22,146 427 (40 ) 22,533 Total liabilities 32,254 498 (121 ) 32,631 Preferred shares 4,004 — — 4,004 Common shares 18,370 — — 18,370 Contributed surplus 1,160 — — 1,160 Accumulated other comprehensive income 46 — — 46 Deficit (6,040 ) 1,062 — (4,978 ) Total equity attributable to BCE shareholders 17,540 1,062 — 18,602 Non- controlling interest 314 — — 314 Total equity 17,854 1,062 — 18,916 Total liabilities and equity 50,108 1,560 (121 ) 51,547 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below provides a reconciliation of our deficit at January 1, 2017 and December 31, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax. AT DECEMBER 31, 2017 AT JANUARY 1, 2017 Total deficit as previously reported (6,080 ) (6,040 ) Timing of revenue recognition 873 809 Cost to obtain a contract 269 253 Total deficit upon adoption of IFRS 15 (4,938 ) (4,978 ) Consolidated statement of cash flows The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows. YEAR ENDED DECEMBER 31, 2017 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Cash flows from operating activities Net earnings 2,970 80 3,050 Depreciation and amortization 3,850 (6 ) 3,844 Income taxes 1,039 30 1,069 Net change in operating assets and liabilities 480 (104 ) 376 Cash flows from operating activities 7,358 — 7,358 Revenues by services and products The following table s hows the impacts of adopting IFRS 15 on our revenues disaggregated by type. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Other (3) 2017 upon adoption of IFRS 15 Services (1) Wireless 7,308 (1,260 ) — 6,048 Data 7,146 (5 ) 51 7,192 Voice 3,800 3 165 3,968 Media 2,676 — — 2,676 Other services 213 (2 ) — 211 Total services 21,143 (1,264 ) 216 20,095 Products (2) Wireless 530 1,303 — 1,833 Data 519 1 (110 ) 410 Equipment and other 527 (2 ) (106 ) 419 Total products 1,576 1,302 (216 ) 2,662 Total operating revenues 22,719 38 — 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. (3) We have reclassified some of the amounts for previous periods to make them consistent with the presentation for the current period. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Note 15 Property, plant and equipment FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2018 61,484 5,961 1,774 69,219 Additions 2,699 72 1,437 4,208 Acquisition through business combinations 144 49 — 193 Transfers 898 43 (1,447 ) (506 ) Retirements and disposals (969 ) (54 ) — (1,023 ) Impairment losses recognized in earnings 8 (8 ) — — (8 ) December 31, 2018 64,248 6,071 1,764 72,083 ACCUMULATED DEPRECIATION January 1, 2018 41,949 3,241 — 45,190 Depreciation 2,923 222 — 3,145 Retirements and disposals (931 ) (52 ) — (983 ) Other (107 ) (6 ) — (113 ) December 31, 2018 43,834 3,405 — 47,239 NET CARRYING AMOUNT January 1, 2018 19,535 2,720 1,774 24,029 December 31, 2018 20,414 2,666 1,764 24,844 (1) Includes assets under finance leases. FOR THE YEAR ENDED DECEMBER 31, 2017 NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2017 58,670 5,572 1,374 65,616 Additions 2,491 70 1,587 4,148 Acquisition through business combinations 653 264 76 993 Transfers 775 77 (1,263 ) (411 ) Retirements and disposals (1,105 ) (22 ) — (1,127 ) December 31, 2017 61,484 5,961 1,774 69,219 ACCUMULATED DEPRECIATION January 1, 2017 40,228 3,047 — 43,275 Depreciation 2,813 221 — 3,034 Retirements and disposals (1,054 ) (19 ) — (1,073 ) Other (38 ) (8 ) — (46 ) December 31, 2017 41,949 3,241 — 45,190 NET CARRYING AMOUNT January 1, 2017 18,442 2,525 1,374 22,341 December 31, 2017 19,535 2,720 1,774 24,029 (1) Includes assets under finance leases . Finance leases BCE’s significant finance leases are for satellites and office premises. The office leases have an average lease term of 22 years. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years. These satellite leases are non-cancellable. The following table shows additions to and the net carrying amount of assets under finance leases. FOR THE YEAR ENDED DECEMBER 31 ADDITIONS NET CARRYING AMOUNT 2018 2017 2018 2017 Network infrastructure and equipment 405 334 1,487 1,435 Land and buildings 1 2 460 467 Total 406 336 1,947 1,902 The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations. AT DECEMBER 31, 2018 NOTE 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Minimum future lease payments 26 586 513 344 276 238 667 2,624 Less: Future finance costs (120 ) (101 ) (83 ) (66 ) (49 ) (108 ) (527 ) Present value of future lease obligations 466 412 261 210 189 559 2,097 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Intangible assets | Note 16 Intangible assets FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2018 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 Additions 362 13 967 106 1,448 — 56 — 56 1,504 Acquired through business combinations 9 51 — 1 61 1 — 5 6 67 Transfers 506 — — 4 510 (4 ) — — (4 ) 506 Retirements and disposals (41 ) — — (4 ) (45 ) — (1 ) — (1 ) (46 ) Impairment losses recognized in earnings 8 — — (14 ) — (14 ) (31 ) (2 ) (145 ) (178 ) (192 ) Amortization included in operating costs — — (990 ) — (990 ) — — — — (990 ) December 31, 2018 9,525 2,014 704 500 12,743 2,409 3,587 2,111 8,107 20,850 ACCUMULATED AMORTIZATION January 1, 2018 5,976 612 — 155 6,743 — — — — 6,743 Amortization 707 115 — 47 869 — — — — 869 Retirements and disposals (39 ) — — (4 ) (43 ) — — — — (43 ) Other 76 — — — 76 — — — — 76 December 31, 2018 6,720 727 — 198 7,645 — — — — 7,645 NET CARRYING AMOUNT January 1, 2018 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 December 31, 2018 2,805 1,287 704 302 5,098 2,409 3,587 2,111 8,107 13,205 FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2017 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2017 7,861 1,159 682 350 10,052 2,333 3,288 2,322 7,943 17,995 Additions 344 31 1,009 7 1,391 — — — — 1,391 Acquired through business combinations 98 780 — 103 981 110 246 — 356 1,337 Transfers 407 — — — 407 — — (1 ) (1 ) 406 Retirements and disposals (21 ) (20 ) — (55 ) (96 ) — — — — (96 ) Impairment losses recognized in earnings 8 — — — (12 ) (12 ) — — (70 ) (70 ) (82 ) Amortization included in operating costs — — (950 ) — (950 ) — — — — (950 ) December 31, 2017 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 ACCUMULATED AMORTIZATION January 1, 2017 5,316 513 — 168 5,997 — — — — 5,997 Amortization 672 99 — 39 810 — — — — 810 Retirements and disposals (21 ) — — (52 ) (73 ) — — — — (73 ) Other 9 — — — 9 — — — — 9 December 31, 2017 5,976 612 — 155 6,743 — — — — 6,743 NET CARRYING AMOUNT January 1, 2017 2,545 646 682 182 4,055 2,333 3,288 2,322 7,943 11,998 December 31, 2017 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2018 | |
Interests in Other Entities [Abstract] | |
Investments in associates and joint ventures | Note 17 Investments in associates and joint ventures The following tables provide summarized financial information with respect to BCE’s associates and joint ventures. For more details on our associates and joint ventures see Note 32 , Related party transactions . Statements of financial position AS AT December 31, 2018 December 31, 2017 January 1, 2017 Assets 3,819 3,796 3,856 Liabilities (2,253 ) (2,155 ) (2,119 ) Total net assets 1,566 1,641 1,737 BCE’s share of net assets 798 814 852 Income statements For the year ended December 31 NOTE 2018 2017 Revenues 2,128 1,863 Expenses (2,191 ) (1,924 ) Total net losses (63 ) (61 ) BCE’s share of net losses 8 (35 ) (31 ) |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other non-current assets | Note 18 Other non-current assets AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Net assets of post-employment benefit plans 24 331 262 403 Investments (1) 114 106 88 Publicly-traded and privately-held investments 26 110 103 103 Long-term notes and other receivables 89 101 64 Derivative assets 26 68 51 126 Other 135 134 113 Total other non-current assets 847 757 897 (1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Goodwill | Note 19 Goodwill The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2018 and 2017. BCE’s groups of CGUs correspond to our reporting segments. BELL WIRELESS BELL WIRELINE BELL MEDIA BCE Balance at January 1, 2017 2,304 3,831 2,823 8,958 Acquisitions and other 728 666 76 1,470 Balance at December 31, 2017 3,032 4,497 2,899 10,428 Acquisitions and other 16 182 32 230 Balance at December 31, 2018 3,048 4,679 2,931 10,658 Impairment testing As described in Note 2 , Significant accounting policies , goodwill is tested annually for impairment by comparing the carrying value of a CGU or group of CGUs to the recoverable amount, where the recoverable amount is the higher of fair value less costs of disposal or value in use. VALUE IN USE The value in use for a CGU or group of CGUs is determined by discounting five -year cash flow projections derived from business plans reviewed by senior management. The projections reflect management’s expectations of revenue, segment profit, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance. Cash flows beyond the five -year period are extrapolated using perpetuity growth rates. None of the perpetuity growth rates exceed the long-term historical growth rates for the markets in which we operate. The discount rates are applied to the cash flow projections and are derived from the weighted average cost of capital for each CGU or group of CGUs. The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs. ASSUMPTIONS USED PERPETUITY DISCOUNT GROUPS OF CGUs GROWTH RATE RATE Bell Wireless 0.8 % 9.1 % Bell Wireline 1.0 % 6.0 % Bell Media 1.0 % 8.5 % The recoverable amounts determined in a prior year for the Bell Wireless and Bell Wireline groups of CGUs exceed their corresponding current carrying values by a substantial margin and have been carried forward and used in the impairment test for the current year. We believe that any reasonable possible change in the key assumptions on which the estimate of recoverable amounts of the Bell Wireless or Bell Wireline groups of CGUs is based would not cause their carrying amounts to exceed their recoverable amounts. For the Bell Media group of CGUs, a decrease of ( 0.6% ) in the perpetuity growth rate or an increase of 0.4% in the discount rate would have resulted in its recoverable amount being equal to its carrying value. |
Trade payables and other liabil
Trade payables and other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade payables and other liabilities | Note 20 Trade payables and other liabilities AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Trade payables and accruals 2,535 2,448 2,319 Compensation payable 589 560 531 Taxes payable 129 150 137 Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1) 26 135 135 135 Derivative liabilities 26 27 96 18 CRTC tangible benefits obligation 26 38 38 51 Provisions 23 66 55 39 Severance and other costs payable 63 29 30 CRTC deferral account obligation 26 16 28 32 Other current liabilities 343 336 379 Total trade payables and other liabilities 3,941 3,875 3,671 (1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. |
Debt due within one year
Debt due within one year | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Debt due within one year | Note 21 Debt due within one year NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 December 31, 2018 December 31, 2017 January 1, 2017 Notes payable (1) 26 2.82 % 3,201 3,151 2,649 Loans secured by trade receivables 26 2.83 % 919 921 931 Long-term debt due within one year (2) 5.16 % 525 1,106 835 Unsecured committed term credit facility (3) — — 479 Net unamortized discount — — (1 ) Unamortized debt issuance costs — — (6 ) Total long-term debt due within one year 22 525 1,106 1,307 Total debt due within one year 4,645 5,178 4,887 (1) Includes commercial paper of $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars) , $2,484 million in U.S. dollars ( $3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ( $2,612 million in Canadian dollars) as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 26 , Financial and capital management, for additional details. (2) Included in long-term debt due within one year is the current portion of finance leases of $466 million , $445 million and $435 million as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars (approximately $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Securitized trade receivables Our securitized trade receivables programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on December 31, 2019 and November 1, 2020. The following table provides further details on our securitized trade receivables programs. December 31, 2018 December 31, 2017 January 1, 2017 Average interest rate throughout the year 2.41 % 1.74 % 1.51 % Securitized trade receivables 1,998 1,867 1,904 We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized. We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests. The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed. Credit facilities Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $3 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $4 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s committed supporting revolving and expansion credit facilities as at December 31, 2018. The maximum amounts of the commercial paper programs and the committed credit facilities both reflect an increase of $500 million effective on December 6, 2018 and October 17, 2018, respectively, as compared to December 31, 2017. The total amount of the net committed available revolving and expansion credit facilities may be drawn at any time. The table below is a summary of our total bank credit facilities at December 31, 2018. TOTAL AVAILABLE DRAWN LETTERS OF CREDIT COMMERCIAL PAPER OUTSTANDING NET AVAILABLE Committed credit facilities Unsecured revolving credit and expansion facilities (1)(2) 4,000 — — 3,156 844 Other 134 — 107 — 27 Total committed credit facilities 4,134 — 107 3,156 871 Total non-committed credit facilities 3,014 — 1,964 — 1,050 Total committed and non-committed credit facilities 7,148 — 2,071 3,156 1,921 (1) Bell Canada’s $2.5 billion and additional $500 million revolving credit facilities expire in November 2023 and November 2019, respectively, and its $1 billion committed expansion credit facility expires in November 2021. Bell Canada has the option, subject to certain conditions, to convert advances outstanding under the additional $500 million revolving credit facility into a term loan with a maximum one -year term. (2) As of December 31, 2018, Bell Canada’s outstanding commercial paper included $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year. Restrictions Some of our credit agreements: • require us to meet specific financial ratios • require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada We are in compliance with all conditions and restrictions under such credit agreements. Note 22 Long-term debt NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 MATURITY December 31, 2018 December 31, 2017 January 1, 2017 Debt securities 1997 trust indenture 3.85 % 2020-2047 14,750 14,950 13,600 1976 trust indenture 9.54 % 2021-2054 1,100 1,100 1,100 2011 trust indenture (1) 4.00 % 2024 225 425 — 2001 trust indenture (1) — 200 — 2016 U.S. trust indenture (2) 4.46 % 2048 1,569 — — 1996 trust indenture (subordinated) 8.21 % 2026-2031 275 275 275 Finance leases 15 6.67 % 2019-2047 2,097 2,172 2,260 Unsecured committed term credit facility (3) — — 479 Other 308 195 188 Total debt 20,324 19,317 17,902 Net unamortized premium 21 50 18 Unamortized debt issuance costs (60 ) (46 ) (41 ) Less: Amount due within one year 21 (525 ) (1,106 ) (1,307 ) Total long-term debt 19,760 18,215 16,572 (1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures. The 2001 trust indenture was closed following the redemption in October 2018 of the remaining outstanding notes under such trust indenture. (2) In 2018, Bell Canada issued notes under the 2016 U.S. trust indenture for an aggregate amount of $1,150 million in U.S. dollars ( $1,493 million in Canadian dollars), which have been hedged for foreign currency fluctuations through cross currency basis swaps. See Note 26 , Financial and capital management , for additional details. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars ( $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Bell Canada's debt securities have been issued in Canadian dollars with the exception of debt securities issued under the 2016 U.S. trust indenture, which have been issued in U.S. dollars. All debt securities bear a fixed interest rate. Restrictions Some of our debt agreements: • impose covenants and new issue tests • require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the relevant debt agreements We are in compliance with all conditions and restrictions under such debt agreements. All outstanding debt securities have been issued under trust indentures and are unsecured. All debt securities have been issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series. 2018 On October 15, 2018, Bell Canada redeemed, prior to maturity, its 5.625% Series 8 notes, having an outstanding principal amount of $200 million , which were due on December 16, 2019. On September 21, 2018, Bell Canada redeemed, prior to maturity, its 3.35% Series M-25 medium term notes (MTN) debentures, having an outstanding principal amount of $1 billion , which were due on June 18, 2019. On September 14, 2018, and March 29, 2018, Bell Canada issued 4.464% Series US-1 Notes under its 2016 U.S. trust indenture, with a principal amount of US $400 million (C $526 million ) and US $750 million (C $967 million ), respectively, which mature on April 1, 2048. On August 21, 2018, Bell Canada issued 3.80% Series M-48 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion , which mature on August 21, 2028. On May 4, 2018, Bell Canada redeemed, prior to maturity, its 3.50% Series M-28 MTN debentures, having an outstanding principal amount of $400 million , which were due on September 10, 2018. On April 16, 2018, Bell Canada redeemed, prior to maturity, its 4.59% Series 9 notes, having an outstanding principal amount of $200 million , which were due on October 1, 2018. In addition, on the same date, Bell Canada redeemed, prior to maturity, its 5.52% Series M-33 debentures, having an outstanding principal amount of $300 million , which were due on February 26, 2019. On March 12, 2018, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million , which mature on March 12, 2025. For the year ended December 31, 2018, we incurred early debt redemption charges of $20 million , which were recorded in Other expense in the income statement. 2017 On October 30, 2017, Bell Canada redeemed, prior to maturity, its 4.40% Series M-22 MTN debentures, having an outstanding principal amount of $1 billion , which were due on March 16, 2018. On October 9, 2017, Bell Canada redeemed, prior to maturity, its 4.88% Series M-36 debentures, having an outstanding principal amount of $300 million , which were due on April 26, 2018. On September 29, 2017, Bell Canada issued 3.00% Series M-40 MTN debentures under its 1997 trust indenture, with a principal amount of $700 million , which mature on October 3, 2022. The Series M-40 MTN debentures were issued as part of an existing series of MTN debentures. In addition, on the same date, Bell Canada issued 3.60% Series M-46 MTN debentures under its 1997 trust indenture, with a principal amount of $800 million, which mature on September 29, 2027. On May 12, 2017, Bell Canada redeemed, prior to maturity, its 4.37% Series M-35 debentures, having an outstanding principal amount of $350 million , which were due on September 13, 2017. On February 27, 2017, Bell Canada issued 2.70% Series M-44 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion , which mature on February 27, 2024. In addition, on the same date, Bell Canada issued 4.45% Series M-45 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million , which mature on February 27, 2047. For the year ended December 31, 2017, we incurred early debt redemption charges of $20 million , which were recorded in Other expense in the income statement. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Long-term debt | Note 21 Debt due within one year NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 December 31, 2018 December 31, 2017 January 1, 2017 Notes payable (1) 26 2.82 % 3,201 3,151 2,649 Loans secured by trade receivables 26 2.83 % 919 921 931 Long-term debt due within one year (2) 5.16 % 525 1,106 835 Unsecured committed term credit facility (3) — — 479 Net unamortized discount — — (1 ) Unamortized debt issuance costs — — (6 ) Total long-term debt due within one year 22 525 1,106 1,307 Total debt due within one year 4,645 5,178 4,887 (1) Includes commercial paper of $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars) , $2,484 million in U.S. dollars ( $3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ( $2,612 million in Canadian dollars) as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 26 , Financial and capital management, for additional details. (2) Included in long-term debt due within one year is the current portion of finance leases of $466 million , $445 million and $435 million as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars (approximately $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Securitized trade receivables Our securitized trade receivables programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on December 31, 2019 and November 1, 2020. The following table provides further details on our securitized trade receivables programs. December 31, 2018 December 31, 2017 January 1, 2017 Average interest rate throughout the year 2.41 % 1.74 % 1.51 % Securitized trade receivables 1,998 1,867 1,904 We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized. We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests. The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed. Credit facilities Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $3 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $4 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s committed supporting revolving and expansion credit facilities as at December 31, 2018. The maximum amounts of the commercial paper programs and the committed credit facilities both reflect an increase of $500 million effective on December 6, 2018 and October 17, 2018, respectively, as compared to December 31, 2017. The total amount of the net committed available revolving and expansion credit facilities may be drawn at any time. The table below is a summary of our total bank credit facilities at December 31, 2018. TOTAL AVAILABLE DRAWN LETTERS OF CREDIT COMMERCIAL PAPER OUTSTANDING NET AVAILABLE Committed credit facilities Unsecured revolving credit and expansion facilities (1)(2) 4,000 — — 3,156 844 Other 134 — 107 — 27 Total committed credit facilities 4,134 — 107 3,156 871 Total non-committed credit facilities 3,014 — 1,964 — 1,050 Total committed and non-committed credit facilities 7,148 — 2,071 3,156 1,921 (1) Bell Canada’s $2.5 billion and additional $500 million revolving credit facilities expire in November 2023 and November 2019, respectively, and its $1 billion committed expansion credit facility expires in November 2021. Bell Canada has the option, subject to certain conditions, to convert advances outstanding under the additional $500 million revolving credit facility into a term loan with a maximum one -year term. (2) As of December 31, 2018, Bell Canada’s outstanding commercial paper included $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year. Restrictions Some of our credit agreements: • require us to meet specific financial ratios • require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada We are in compliance with all conditions and restrictions under such credit agreements. Note 22 Long-term debt NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 MATURITY December 31, 2018 December 31, 2017 January 1, 2017 Debt securities 1997 trust indenture 3.85 % 2020-2047 14,750 14,950 13,600 1976 trust indenture 9.54 % 2021-2054 1,100 1,100 1,100 2011 trust indenture (1) 4.00 % 2024 225 425 — 2001 trust indenture (1) — 200 — 2016 U.S. trust indenture (2) 4.46 % 2048 1,569 — — 1996 trust indenture (subordinated) 8.21 % 2026-2031 275 275 275 Finance leases 15 6.67 % 2019-2047 2,097 2,172 2,260 Unsecured committed term credit facility (3) — — 479 Other 308 195 188 Total debt 20,324 19,317 17,902 Net unamortized premium 21 50 18 Unamortized debt issuance costs (60 ) (46 ) (41 ) Less: Amount due within one year 21 (525 ) (1,106 ) (1,307 ) Total long-term debt 19,760 18,215 16,572 (1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures. The 2001 trust indenture was closed following the redemption in October 2018 of the remaining outstanding notes under such trust indenture. (2) In 2018, Bell Canada issued notes under the 2016 U.S. trust indenture for an aggregate amount of $1,150 million in U.S. dollars ( $1,493 million in Canadian dollars), which have been hedged for foreign currency fluctuations through cross currency basis swaps. See Note 26 , Financial and capital management , for additional details. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars ( $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Bell Canada's debt securities have been issued in Canadian dollars with the exception of debt securities issued under the 2016 U.S. trust indenture, which have been issued in U.S. dollars. All debt securities bear a fixed interest rate. Restrictions Some of our debt agreements: • impose covenants and new issue tests • require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the relevant debt agreements We are in compliance with all conditions and restrictions under such debt agreements. All outstanding debt securities have been issued under trust indentures and are unsecured. All debt securities have been issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series. 2018 On October 15, 2018, Bell Canada redeemed, prior to maturity, its 5.625% Series 8 notes, having an outstanding principal amount of $200 million , which were due on December 16, 2019. On September 21, 2018, Bell Canada redeemed, prior to maturity, its 3.35% Series M-25 medium term notes (MTN) debentures, having an outstanding principal amount of $1 billion , which were due on June 18, 2019. On September 14, 2018, and March 29, 2018, Bell Canada issued 4.464% Series US-1 Notes under its 2016 U.S. trust indenture, with a principal amount of US $400 million (C $526 million ) and US $750 million (C $967 million ), respectively, which mature on April 1, 2048. On August 21, 2018, Bell Canada issued 3.80% Series M-48 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion , which mature on August 21, 2028. On May 4, 2018, Bell Canada redeemed, prior to maturity, its 3.50% Series M-28 MTN debentures, having an outstanding principal amount of $400 million , which were due on September 10, 2018. On April 16, 2018, Bell Canada redeemed, prior to maturity, its 4.59% Series 9 notes, having an outstanding principal amount of $200 million , which were due on October 1, 2018. In addition, on the same date, Bell Canada redeemed, prior to maturity, its 5.52% Series M-33 debentures, having an outstanding principal amount of $300 million , which were due on February 26, 2019. On March 12, 2018, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million , which mature on March 12, 2025. For the year ended December 31, 2018, we incurred early debt redemption charges of $20 million , which were recorded in Other expense in the income statement. 2017 On October 30, 2017, Bell Canada redeemed, prior to maturity, its 4.40% Series M-22 MTN debentures, having an outstanding principal amount of $1 billion , which were due on March 16, 2018. On October 9, 2017, Bell Canada redeemed, prior to maturity, its 4.88% Series M-36 debentures, having an outstanding principal amount of $300 million , which were due on April 26, 2018. On September 29, 2017, Bell Canada issued 3.00% Series M-40 MTN debentures under its 1997 trust indenture, with a principal amount of $700 million , which mature on October 3, 2022. The Series M-40 MTN debentures were issued as part of an existing series of MTN debentures. In addition, on the same date, Bell Canada issued 3.60% Series M-46 MTN debentures under its 1997 trust indenture, with a principal amount of $800 million, which mature on September 29, 2027. On May 12, 2017, Bell Canada redeemed, prior to maturity, its 4.37% Series M-35 debentures, having an outstanding principal amount of $350 million , which were due on September 13, 2017. On February 27, 2017, Bell Canada issued 2.70% Series M-44 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion , which mature on February 27, 2024. In addition, on the same date, Bell Canada issued 4.45% Series M-45 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million , which mature on February 27, 2047. For the year ended December 31, 2017, we incurred early debt redemption charges of $20 million , which were recorded in Other expense in the income statement. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions | Note 23 Provisions FOR THE YEAR ENDED DECEMBER 31 NOTE AROs Other (1) Total January 1, 2018 170 158 328 Additions 38 47 85 Usage (4 ) (29 ) (33 ) Reversals (5 ) (8 ) (13 ) Acquired through business combinations — 4 4 December 31, 2018 199 172 371 Current 20 16 50 66 Non-current 25 183 122 305 December 31, 2018 199 172 371 (1) Other includes environmental, legal, regulatory and vacant space provisions. AROs reflect management’s best estimates of expected future costs to restore current leased premises to their original condition prior to lease inception. Cash outflows associated with our ARO liabilities are generally expected to occur at the restoration dates of the assets to which they relate, which are long-term in nature. The timing and extent of restoration work that will be ultimately required for these sites is uncertain. |
Post-employee benefit plans
Post-employee benefit plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits [Abstract] | |
Post-employment benefit plans | Note 24 Post-employment benefit plans Post-employment benefit plans cost We provide pension and other benefits for most of our employees. These include DB pension plans, DC pension plans and OPEBs. We operate our DB and DC pension plans under applicable Canadian and provincial pension legislation, which prescribes minimum and maximum DB funding requirements. Plan assets are held in trust, and the oversight of governance of the plans, including investment decisions, contributions to DB plans and the selection of the DC plans investment options offered to plan participants, lies with the Pension Fund Committee, a committee of our board of directors. The interest rate risk is managed using a liability matching approach, which reduces the exposure of the DB plans to a mismatch between investment growth and obligation growth. The longevity risk is managed using a longevity swap, which reduces the exposure of the DB plans to an increase in life expectancy. COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST FOR THE YEAR ENDED DECEMBER 31 2018 2017 DB pension (213 ) (208 ) DC pension (106 ) (102 ) OPEBs (3 ) (6 ) Plan amendment gain on OPEBs and DB pension — 16 Less: Capitalized benefit plans cost 56 58 Total post-employment benefit plans service cost included in operating costs (266 ) (242 ) Other costs recognized in severance, acquisition and other costs (4 ) (10 ) Total post-employment benefit plans service cost (270 ) (252 ) COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST FOR THE YEAR ENDED DECEMBER 31 2018 2017 DB pension (23 ) (18 ) OPEBs (46 ) (54 ) Total interest on post-employment benefit obligations (69 ) (72 ) The statements of comprehensive income include the following amounts before income taxes. 2018 2017 Cumulative losses recognized directly in equity, January 1 (2,984 ) (2,646 ) Actuarial gains (losses) in other comprehensive income (1) 79 (313 ) Decrease (increase) in the effect of the asset limit (2) 13 (25 ) Cumulative losses recognized directly in equity, December 31 (2,892 ) (2,984 ) (1) The cumulative actuarial losses recognized in the statements of comprehensive income are $3,138 million in 2018. (2) The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $246 million in 2018. COMPONENTS OF POST-EMPLOYMENT BENEFIT (OBLIGATIONS) ASSETS The following table shows the change in post-employment benefit obligations and the fair value of plan assets. DB PENSION PLANS OPEB PLANS TOTAL 2018 2017 2018 2017 2018 2017 Post-employment benefit obligations, January 1 (24,404 ) (20,853 ) (1,653 ) (1,684 ) (26,057 ) (22,537 ) Current service cost (213 ) (208 ) (3 ) (6 ) (216 ) (214 ) Interest on obligations (864 ) (896 ) (56 ) (65 ) (920 ) (961 ) Actuarial gains (losses) (1) 750 (1,193 ) 163 (28 ) 913 (1,221 ) Net curtailment (losses) gains (4 ) (4 ) — 16 (4 ) 12 Loss on plan transfer — (6 ) — — — (6 ) Benefit payments 1,342 1,320 80 81 1,422 1,401 Employee contributions (11 ) (10 ) — — (11 ) (10 ) Acquisition of MTS — (2,677 ) — (5 ) — (2,682 ) Plan transfer — 122 — — — 122 Other — 1 — 38 — 39 Post-employment benefit obligations, December 31 (23,404 ) (24,404 ) (1,469 ) (1,653 ) (24,873 ) (26,057 ) Fair value of plan assets, January 1 23,945 20,563 299 280 24,244 20,843 Expected return on plan assets (2) 841 878 10 11 851 889 Actuarial (losses) gains (1) (817 ) 896 (17 ) 12 (834 ) 908 Benefit payments (1,342 ) (1,320 ) (80 ) (81 ) (1,422 ) (1,401 ) Employer contributions 433 305 75 77 508 382 Employee contributions 11 10 — — 11 10 Acquisition of MTS — 2,735 — — — 2,735 Plan transfer — (122 ) — — — (122 ) Fair value of plan assets, December 31 23,071 23,945 287 299 23,358 24,244 Plan deficit (333 ) (459 ) (1,182 ) (1,354 ) (1,515 ) (1,813 ) Effect of asset limit (20 ) (33 ) — — (20 ) (33 ) Post-employment benefit liability, December 31 (353 ) (492 ) (1,182 ) (1,354 ) (1,535 ) (1,846 ) Post-employment benefit assets included in other non-current assets 331 262 — — 331 262 Post-employment benefit obligations (684 ) (754 ) (1,182 ) (1,354 ) (1,866 ) (2,108 ) (1) Actuarial gains (losses) include experience (losses) gains of ( $693 million ) in 2018 and $911 million in 2017. (2) The actual return on plan assets was $17 million or 0.2% in 2018 and $1,797 million or 8.2% in 2017. On January 15, 2016, MTS completed the sale of its wholly-owned subsidiaries Allstream Inc., Allstream Fibre U.S., and Delphi Solutions Corp. (collectively, Allstream), to Zayo Group Holdings Inc. As part of the sale agreement, MTS retained Allstream’s two existing DB pension plans including the benefit obligations for retirees and other former employees. On October 31, 2017, we completed the transfer of assets and liabilities related to pre-closing service obligations for Allstream’s active employees from the existing Allstream DB pension plans to two new Zayo Canada Inc. pension plans. FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST The following table shows the funded status of our post-employment benefit obligations. FUNDED PARTIALLY FUNDED (1) UNFUNDED (2) TOTAL Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Present value of post-employment benefit obligations (22,765 ) (23,746 ) (20,249 ) (1,816 ) (1,976 ) (1,995 ) (292 ) (335 ) (293 ) (24,873 ) (26,057 ) (22,537 ) Fair value of plan assets 23,018 23,894 20,520 340 350 323 — — — 23,358 24,244 20,843 Plan surplus (deficit) 253 148 271 (1,476 ) (1,626 ) (1,672 ) (292 ) (335 ) (293 ) (1,515 ) (1,813 ) (1,694 ) (1) The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts. (2) Our unfunded plans consist of OPEBs, which are pay-as-you-go. SIGNIFICANT ASSUMPTIONS We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans. DB PENSION PLANS AND OPEB PLANS AS AT December 31, 2018 December 31, 2017 January 1, 2017 Post-employment benefit obligations Discount rate 3.8 % 3.6 % 4.0 % Rate of compensation increase 2.25 % 2.25 % 2.25 % Cost of living indexation rate (1) 1.6 % 1.6 % 1.6 % Life expectancy at age 65 (years) 23.1 23.2 23.1 (1) Cost of living indexation rate is only applicable to DB pension plans. DB PENSION PLANS AND OPEB PLANS For the year ended December 31 2018 2017 Net post-employment benefit plans cost Discount rate 3.7 % 4.2 % Rate of compensation increase 2.25 % 2.25 % Cost of living indexation rate (1) 1.6 % 1.6 % Life expectancy at age 65 (years) 23.2 23.1 (1) Cost of living indexation rate is only applicable to DB pension plans. The weighted average duration of the post-employment benefit obligation is 14 years. We assumed the following trend rates in healthcare costs: • an annual increase in the cost of medication of 7% for 2018 decreasing to 4.5% over 20 years • an annual increase in the cost of covered dental benefits of 4% • an annual increase in the cost of covered hospital benefits of 3.3% • an annual increase in the cost of other covered healthcare benefits of 3% Assumed trend rates in healthcare costs have a significant effect on the amounts reported for the healthcare plans. The following table shows the effect of a 1% change in the assumed trend rates in healthcare costs. EFFECT ON POST-EMPLOYMENT BENEFITS – INCREASE/(DECREASE) 1% INCREASE 1% DECREASE Total service and interest cost 5 (3 ) Post-employment benefit obligations 111 (90 ) SENSITIVITY ANALYSIS The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans. IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2018 – INCREASE/(DECREASE) IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2018 – INCREASE/(DECREASE) CHANGE IN ASSUMPTION INCREASE IN ASSUMPTION DECREASE IN ASSUMPTION INCREASE IN ASSUMPTION DECREASE IN ASSUMPTION Discount rate 0.5 % (77 ) 65 (1,605 ) 1,716 Life expectancy at age 65 1 year 35 (34 ) 796 (771 ) POST-EMPLOYMENT BENEFIT PLAN ASSETS The investment strategy for the post-employment benefit plan assets is to maintain a diversified portfolio of assets invested in a prudent manner to maintain the security of funds. The following table shows the target allocations for 2018 and the allocation of our post-employment benefit plan assets at December 31, 2018 and 2017, and at January 1, 2017. WEIGHTED AVERAGE TOTAL PLAN ASSETS FAIR VALUE ASSET CATEGORY 2018 December 31, 2018 December 31, 2017 January 1, 2017 Equity securities 20% - 40% 20 % 22 % 22 % Debt securities 60% - 100% 64 % 65 % 68 % Alternative investments 0% - 40% 16 % 13 % 10 % Total 100 % 100 % 100 % The following table shows the fair value of the DB pension plan assets for each category. AS AT December 31, 2018 December 31, 2017 January 1, 2017 Observable markets data Equity securities Canadian 844 1,045 901 Foreign 3,770 4,349 3,682 Debt securities Canadian 12,457 13,126 12,469 Foreign 2,004 1,890 1,068 Money market 327 491 387 Non-observable markets inputs Alternative investments Private equities 1,804 1,484 1,164 Hedge funds 1,014 965 726 Real estate 758 484 55 Other 93 111 111 Total 23,071 23,945 20,563 Equity securities included approximately $8 million of BCE common shares, or 0.03% of total plan assets, at December 31, 2018, approximately $13 million of BCE common shares, or 0.05% of total plan assets, at December 31, 2017 and approximately $17 million of BCE common shares, or 0.08% of total plan assets, at January 1, 2017. Debt securities included approximately $68 million of Bell Canada debentures, or 0.30% of total plan assets, at December 31, 2018, approximately $11 million of Bell Canada debentures, or 0.05% of total plan assets, at December 31, 2017 and approximately $15 million of Bell Canada debentures, or 0.07% of total plan assets, at January 1, 2017 . Alternative investments included the pension plan’s investment in MLSE of $135 million , or 0.59% of total plan assets, at December 31, 2018, $135 million , or 0.56% of total plan assets, at December 31, 2017, and $135 million , or 0.66% of total plan assets, at January 1, 2017. The Bell Canada pension plan has an investment arrangement which hedges part of its exposure to potential increases in longevity, which covers approximately $5 billion of post-employment benefit obligations. The fair value of the arrangement is included within other alternative investments. As a hedging arrangement of the pension plan, the transaction requires no cash contributions from BCE. CASH FLOWS We are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods that are permitted by pension regulatory bodies. Contributions reflect actuarial assumptions about future investment returns, salary projections and future service benefits. Changes in these factors could cause actual future contributions to differ from our current estimates and could require us to increase contributions to our post-employment benefit plans in the future, which could have a negative effect on our liquidity and financial performance. We contribute to the DC pension plans as employees provide service. The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneficiaries under OPEB plans. DB PLANS (1) DC PLANS OPEB PLANS FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 2018 2017 Contributions (433 ) (305 ) (106 ) (108 ) (75 ) (77 ) (1) Includes voluntary contributions of $240 million in 2018 and $100 million in 2017. We expect to contribute approximately $180 million to our DB pension plans in 2019, subject to actuarial valuations being completed. We expect to pay approximately $80 million to beneficiaries under OPEB plans and to contribute approximately $115 million to the DC pension plans in 2019. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other non-current liabilities | Note 25 Other non-current liabilities AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Long-term disability benefits obligation 288 322 302 Provisions 23 305 273 273 CRTC deferral account obligation 26 92 96 104 CRTC tangible benefits obligation 26 23 73 115 Other (1) 289 287 274 Total other non-current liabilities 997 1,051 1,068 (1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period. |
Financial and capital managemen
Financial and capital management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Financial and capital management | Note 26 Financial and capital management Financial management Management’s objectives are to protect BCE and its subsidiaries on a consolidated basis against material economic exposures and variability of results from various financial risks that include credit risk, liquidity risk, foreign currency risk, interest rate risk and equity price risk. DERIVATIVES We use derivative instruments to manage our exposure to foreign currency risk, interest rate risk and changes in the price of BCE common shares under our share-based payment plans. The following derivative instruments were outstanding during 2018 and/or 2017: • foreign currency forward contracts and options that manage the foreign currency risk of certain anticipated purchases and sales • cross currency basis swaps that hedge foreign currency risk on a portion of our debt due within one year and long-term debt • forward contracts on BCE common shares that mitigate the cash flow exposure related to share-based payment plans FAIR VALUE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Certain fair value estimates are affected by assumptions we make about the amount and timing of future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that would be incurred on disposition of financial instruments are not reflected in the fair values. As a result, the fair values are not the net amounts that would be realized if these instruments were settled. The carrying values of our cash and cash equivalents, trade and other receivables, dividends payable, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable and loans secured by trade receivables approximate fair value as they are short-term. The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position. December 31, 2018 December 31, 2017 January 1, 2017 CLASSIFICATION FAIR VALUE METHODOLOGY NOTE CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE CRTC tangible benefits obligation Trade payables and other liabilities and non-current liabilities Present value of estimated future cash flows discounted using observable market interest rates 20, 25 61 61 111 110 166 169 CRTC deferral account obligation Trade payables and other liabilities and non-current liabilities Present value of estimated future cash flows discounted using observable market interest rates 20, 25 108 112 124 128 136 145 Debt securities, finance leases and other debt Debt due within one year and long-term debt Quoted market price of debt or present value of future cash flows discounted using observable market interest rates 21, 22 20,285 21,482 19,321 21,298 17,879 20,093 The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position. FAIR VALUE CLASSIFICATION NOTE CARRYING VALUE OF ASSET (LIABILITY) QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) OBSERVABLE MARKET DATA (LEVEL 2) (1) NON-OBSERVABLE MARKET INPUTS (LEVEL 3) (2) December 31, 2018 Publicly-traded and privately-held investments Other non-current assets 18 110 1 — 109 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 181 — 181 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 43 — 114 (71 ) December 31, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities (48 ) — (48 ) — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 60 — 106 (46 ) January 1, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 166 — 166 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 35 — 88 (53 ) (1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments. (3) Represents BCE’s obligation to repurchase the Master Trust Fund’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. The option has been exercisable since 2017. CREDIT RISK We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position. We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at December 31, 2018 and 2017 . We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure. The following table provides the change in allowance for doubtful accounts for trade receivables. NOTE 2018 2017 Balance, January 1 (54 ) (60 ) Adoption of IFRS 9 (1) (4 ) — Additions (84 ) (99 ) Usage 91 105 Balance, December 31 11 (51 ) (54 ) (1) We adopted IFRS 9, Financial Instruments , effective January 1, 2018. See Note 2 , Significant accounting policies , for additional details. In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time. The following table provides further details on trade receivables not impaired. AS AT December 31, 2018 December 31, 2017 January 1, 2017 Trade receivables not past due 2,091 2,255 2,192 Trade receivables past due and not impaired Under 60 days 508 491 286 60 to 120 days 304 279 360 Over 120 days 72 56 75 Trade receivables, net of allowance for doubtful accounts 2,975 3,081 2,913 The following table provides the change in allowance for doubtful accounts for contract assets. NOTE 2018 2017 Balance, January 1 (96 ) (92 ) Additions (50 ) (39 ) Usage 55 35 Balance, December 31 (91 ) (96 ) Current (44 ) (47 ) Non-current (47 ) (49 ) Balance, December 31 13 (91 ) (96 ) LIQUIDITY RISK Our cash and cash equivalents, cash flows from operations and possible capital markets financing are expected to be sufficient to fund our operations and fulfill our obligations as they become due. Should our cash requirements exceed the above sources of cash, we would expect to cover such a shortfall by drawing on existing committed bank facilities and new ones, to the extent available. The following table is a maturity analysis for recognized financial liabilities at December 31, 2018 for each of the next five years and thereafter. AT DECEMBER 31, 2018 NOTE 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Long-term debt 22 59 1,453 2,275 1,739 1,622 11,079 18,227 Notes payable 21 3,201 — — — — — 3,201 Minimum future lease payments under finance leases 15 586 513 344 276 238 667 2,624 Loan secured by trade receivables 21 919 — — — — — 919 Interest payable on long-term debt, notes payable and loan secured by trade receivables 866 751 709 648 581 6,671 10,226 Net interest receipts on cross currency basis swaps (6 ) (6 ) (6 ) (6 ) (6 ) (134 ) (164 ) MLSE financial liability 20 135 — — — — — 135 Total 5,760 2,711 3,322 2,657 2,435 18,283 35,168 We are also exposed to liquidity risk for financial liabilities due within one year as shown in the statements of financial position. MARKET RISK CURRENCY EXPOSURES We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt. In 2018, we entered into cross currency basis swaps with a notional amount of $1,150 million in U.S. dollars ( $1,493 million in Canadian dollars). These cross currency basis swaps are used to hedge the U.S. currency exposure of our Series US-1 Notes maturing in 2048. See Note 22 , Long-term debt , for additional details. In 2017, we settled a cross currency basis swap with a notional amount of $357 million in U.S. dollars ( $480 million in Canadian dollars) used to hedge borrowings under a credit facility that was repaid in 2017. See Note 22 , Long-term debt , for additional details. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a loss (gain) of $2 million ( nil ) recognized in net earnings at December 31, 2018 and a gain (loss) of $140 million ( $132 million ) recognized in Other comprehensive income (loss) at December 31, 2018 , with all other variables held constant. The following table provides further details on our outstanding foreign currency forward contracts as at December 31, 2018 . TYPE OF HEDGE BUY CURRENCY AMOUNT TO RECEIVE SELL CURRENCY AMOUNT TO PAY MATURITY HEDGED ITEM Cash flow USD 2,329 CAD 3,077 2019 Commercial paper Cash flow USD 779 CAD 973 2019 Anticipated transactions Cash flow CAD 15 USD 12 2019 Anticipated transactions Cash flow USD 256 CAD 324 2020-2021 Anticipated transactions Economic USD 120 CAD 153 2019 Anticipated transactions Economic - call options USD 48 CAD 60 2020 Anticipated transactions Economic - put options USD 60 CAD 74 2019-2020 Anticipated transactions INTEREST RATE EXPOSURES A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million in net earnings at December 31, 2018 . EQUITY PRICE EXPOSURES We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. See Note 28 , Share-based payments , for details on our share-based payment arrangements. The fair value of our equity forward contracts at December 31, 2018 was a liability of $73 million (December 31, 2017 – $45 million , and January 1, 2017 - $111 million ). A 5% increase (decrease) in the market price of BCE’s common shares at December 31, 2018 would result in a gain (loss) of $34 million recognized in net earnings for 2018 , with all other variables held constant. Capital management We have various capital policies, procedures and processes which are utilized to achieve our objectives for capital management. These include optimizing our cost of capital and maximizing shareholder return while balancing the interests of our stakeholders. Our definition of capital includes equity attributable to BCE shareholders, debt, and cash and cash equivalents. The key ratios that we use to monitor and manage our capital structure are a net debt leverage ratio (1) and an adjusted EBITDA to net interest expense ratio (2) . In 2018 and 2017, our net debt leverage ratio target range was 1.75 to 2.25 times adjusted EBITDA and our adjusted EBITDA to net interest expense ratio target was greater than 7.5 times. We monitor our capital structure and make adjustments, including to our dividend policy, as required. At December 31, 2018 , we had exceeded the limit of our internal net debt leverage ratio target range by 0.47 . These ratios do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, our net debt leverage ratio and adjusted EBITDA to net interest expense ratio as measures of financial leverage and health of the company. The following table provides a summary of our key ratios. AT DECEMBER 31 2018 2017 Net debt leverage ratio 2.72 2.67 Adjusted EBITDA to net interest expense ratio 9.00 9.23 (1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define net debt as debt due within one year plus long-term debt and 50% of preferred shares less cash and cash equivalents as shown in our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. (2) Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows and 50% of declared preferred share dividends as shown in our income statements. In Q1 2018, BCE completed a normal course issuer bid program (NCIB). See Note 27 , Share capital , for additional details. On February 6, 2019, the board of directors of BCE approved an increase of 5.0% in the annual dividend on BCE's common shares, from $3.02 to $3.17 per common share. In addition, the board of directors of BCE declared a quarterly dividend of 0.7925 per common share, payable on April 15, 2019 to shareholders of record at March 15, 2019. On February 7, 2018, the board of directors of BCE approved an increase of 5.2% in the annual dividend on BCE's common shares, from $2.87 to $3.02 per common share. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share capital | Note 27 Share capital Preferred shares BCE’s articles of amalgamation, as amended, provide for an unlimited number of First Preferred Shares and Second Preferred Shares, all without par value. The terms set out in the articles authorize BCE’s directors to issue the shares in one or more series and to set the number of shares and the conditions for each series. The following table provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2018 . There were no Second Preferred Shares issued and outstanding at December 31, 2018 . BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail. ANNUAL DIVIDEND RATE NUMBER OF SHARES STATED CAPITAL SERIES CONVERTIBLE INTO CONVERSION DATE REDEMPTION DATE REDEMPTION PRICE AUTHORIZED ISSUED AND OUTSTANDING December 31, December 31, January 1, Q floating Series R December 1, 2025 $25.50 8,000,000 — — — — R (1) 4.13 % Series Q December 1, 2020 December 1, 2020 $25.00 8,000,000 8,000,000 200 200 200 S floating Series T November 1, 2021 At any time $25.50 8,000,000 3,513,448 88 88 88 T (1) 3.019 % Series S November 1, 2021 November 1, 2021 $25.00 8,000,000 4,486,552 112 112 112 Y floating Series Z December 1, 2022 At any time $25.50 10,000,000 8,081,491 202 202 219 Z (1) 3.904 % Series Y December 1, 2022 December 1, 2022 $25.00 10,000,000 1,918,509 48 48 31 AA (1) 3.61 % Series AB September 1, 2022 September 1, 2022 $25.00 20,000,000 11,398,396 291 291 259 AB floating Series AA September 1, 2022 At any time $25.50 20,000,000 8,601,604 219 219 251 AC (1) 4.38 % Series AD March 1, 2023 March 1, 2023 $25.00 20,000,000 10,029,691 256 129 129 AD floating Series AC March 1, 2023 At any time $25.50 20,000,000 9,970,309 254 381 381 AE floating Series AF February 1, 2020 At any time $25.50 24,000,000 9,292,133 232 232 232 AF (1) 3.11 % Series AE February 1, 2020 February 1, 2020 $25.00 24,000,000 6,707,867 168 168 168 AG (1) 2.80 % Series AH May 1, 2021 May 1, 2021 $25.00 22,000,000 4,985,351 125 125 125 AH floating Series AG May 1, 2021 At any time $25.50 22,000,000 9,014,649 225 225 225 AI (1) 2.75 % Series AJ August 1, 2021 August 1, 2021 $25.00 22,000,000 5,949,884 149 149 149 AJ floating Series AI August 1, 2021 At any time $25.50 22,000,000 8,050,116 201 201 201 AK (1) 2.954 % Series AL December 31, 2021 December 31, 2021 $25.00 25,000,000 22,745,921 569 569 569 AL (2) floating Series AK December 31, 2021 At any time 25,000,000 2,254,079 56 56 56 AM (1) 2.764 % Series AN March 31, 2021 March 31, 2021 $25.00 30,000,000 9,546,615 218 218 218 AN (2) floating Series AM March 31, 2021 At any time 30,000,000 1,953,385 45 45 45 AO (1) 4.26 % Series AP March 31, 2022 March 31, 2022 $25.00 30,000,000 4,600,000 118 118 118 AP (3) floating Series AO March 31, 2027 30,000,000 — — — — AQ (1) 4.812 % Series AR September 30, 2023 September 30, 2023 $25.00 30,000,000 9,200,000 228 228 228 AR (3) floating Series AQ September 30, 2028 30,000,000 — — — — 4,004 4,004 4,004 (1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date. (2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of First Preferred Shares. (3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2023 respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and September 30, 2028, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of First Preferred Shares. VOTING RIGHTS All of the issued and outstanding First Preferred Shares at December 31, 2018 are non-voting, except under special circumstances, when the holders are entitled to one vote per share. PRIORITY AND ENTITLEMENT TO DIVIDENDS The First Preferred Shares of all series rank at parity with each other and in priority to all other shares of BCE with respect to payment of dividends and with respect to distribution of assets in the event of liquidation, dissolution or winding up of BCE. Holders of Series R, T, Z, AA, AC, AF, AG, AI, AK, AM, AO and AQ First Preferred Shares are entitled to fixed cumulative quarterly dividends. The dividend rate on these shares is reset every five years, as set out in BCE’s articles of amalgamation, as amended. Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares are entitled to floating adjustable cumulative monthly dividends. The floating dividend rate on these shares is calculated every month, as set out in BCE’s articles of amalgamation, as amended. Holders of Series AL and AN First Preferred Shares are entitled to floating cumulative quarterly dividends. The floating dividend rate on these shares is calculated every quarter, as set out in BCE’s articles of amalgamation, as amended. Dividends on all series of First Preferred Shares are paid as and when declared by the board of directors of BCE. CONVERSION FEATURES All of the issued and outstanding First Preferred Shares at December 31, 2018 are convertible at the holder’s option into another associated series of First Preferred Shares on a one -for-one basis according to the terms set out in BCE’s articles of amalgamation, as amended. CONVERSION AND DIVIDEND RATE RESET OF FIRST PREFERRED SHARES The annual fixed dividend rate on BCE’s Cumulative Redeemable First Preferred Shares, Series AQ, was reset for the next five years, effective September 30, 2018, at 4.812% from 4.25% . On March 1, 2018, 397,181 of BCE’s 5,069,935 fixed-rate Cumulative Redeemable First Preferred Shares, Series AC (Series AC Preferred Shares) were converted, on a one -for-one basis, into floating rate Cumulative Redeemable First Preferred Shares, Series AD (Series AD Preferred Shares). In addition, on March 1, 2018, 5,356,937 of BCE’s 14,930,065 Series AD Preferred Shares were converted, on a one -for-one basis, into Series AC Preferred Shares. The annual fixed dividend rate on BCE’s Series AC Preferred Shares was reset for the next five years, effective March 1, 2018, at 4.38% from 3.55% . The Series AD Preferred Shares continue to pay a monthly floating cash dividend. Common shares and Class B shares BCE’s articles of amalgamation provide for an unlimited number of voting common shares and non-voting Class B shares, all without par value. The common shares and the Class B shares rank equally in the payment of dividends and in the distribution of assets if BCE is liquidated, dissolved or wound up, after payments due to the holders of preferred shares. No Class B shares were outstanding at December 31, 2018 and 2017 and January 1, 2017. The following table provides details about the outstanding common shares of BCE. 2018 2017 NOTE NUMBER OF SHARES STATED CAPITAL NUMBER OF SHARES STATED CAPITAL Outstanding, January 1 900,996,640 20,091 870,706,332 18,370 Shares issued for the acquisition of AlarmForce 3 22,531 1 — — Shares issued for the acquisition of MTS 3 — — 27,642,714 1,594 Shares issued under employee stock option plan 28 266,941 13 2,555,863 122 Repurchase of common shares (3,085,697 ) (69 ) — — Shares issued under ESP — — 91,731 5 Outstanding, December 31 898,200,415 20,036 900,996,640 20,091 In Q1 2018, BCE repurchased and canceled 3,085,697 common shares for a total cost of $175 million through a NCIB. Of the total cost, $69 million represents stated capital and $3 million represents the reduction of the contributed surplus attributable to these common shares. The remaining $103 million was charged to the deficit. CONTRIBUTED SURPLUS Contributed surplus in 2018 and 2017 includes premiums in excess of par value upon the issuance of BCE common shares and share-based compensation expense net of settlements. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Payment Arrangements [Abstract] | |
Share-based payments | Note 28 Share-based payments The following share-based payment amounts are included in the income statements as operating costs. FOR THE YEAR ENDED DECEMBER 31 2018 2017 ESP (29 ) (28 ) RSUs/PSUs (50 ) (44 ) Other (1) (10 ) (9 ) Total share-based payments (89 ) (81 ) (1) Includes DSP, DSUs and stock options. Description of the plans ESP The ESP is designed to encourage employees of BCE and its participating subsidiaries to own shares of BCE. Each year, employees can choose to have a certain percentage of their eligible annual earnings withheld through regular payroll deductions for the purchase of BCE common shares. In some cases, the employer also will contribute a percentage of the employee’s eligible annual earnings to the plan, up to a specified maximum. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. The ESP allows employees to contribute up to 12% of their annual earnings with a maximum employer contribution of 2% . Employer contributions to the ESP and related dividends are subject to employees holding their shares for a two -year vesting period. The trustee of the ESP buys BCE common shares for the participants on the open market, by private purchase or from treasury. BCE determines the method the trustee uses to buy the shares. At December 31, 2018, 5,591,566 common shares were authorized for issuance from treasury under the ESP. The following table summarizes the status of unvested employer contributions at December 31, 2018 and 2017. NUMBER OF ESP SHARES 2018 2017 Unvested contributions, January 1 1,039,030 1,073,212 Contributions (1) 671,911 610,657 Dividends credited 56,926 49,299 Vested (501,089 ) (553,837 ) Forfeited (146,352 ) (140,301 ) Unvested contributions, December 31 1,120,426 1,039,030 (1) The weighted average fair value of the shares contributed was $55 in 2018 and $60 in 2017. RSUs/PSUs RSUs/PSUs are granted to executives and other eligible employees. The value of an RSU/PSU at the grant date is equal to the value of one BCE common share. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Executives and other eligible employees are granted a specific number of RSUs/PSUs for a given performance period based on their position and level of contribution. RSUs/PSUs vest fully after three years of continuous employment from the date of grant and, in certain cases, if performance objectives are met, as determined by the board of directors. The following table summarizes outstanding RSUs/PSUs at December 31, 2018 and 2017. NUMBER OF RSUs/PSUs 2018 2017 Outstanding, January 1 2,740,392 2,928,698 Granted (1) 1,006,586 879,626 Dividends credited 149,258 132,402 Settled (1,027,321 ) (1,096,403 ) Forfeited (56,218 ) (103,931 ) Outstanding, December 31 2,812,697 2,740,392 Vested, December 31 (2) 880,903 985,382 (1) The weighted average fair value of the RSUs/PSUs granted was $57 in 2018 and $58 in 2017. (2) The RSUs/PSUs vested on December 31, 2018 were fully settled in February 2019 with BCE common shares and/or DSUs. DSP The value of a deferred share is equal to the value of one BCE common share. Dividends in the form of additional deferred shares are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. The liability related to the DSP is recorded in Trade payables and other liabilities in the statements of financial position and was $26 million and $30 million at December 31, 2018 and 2017, respectively, and $37 million at January 1, 2017. DSUs Eligible bonuses and RSUs/PSUs may be paid in the form of DSUs when executives or other eligible employees elect to or are required to participate in the plan. The value of a DSU at the issuance date is equal to the value of one BCE common share. For non-management directors, compensation is paid in DSUs until the minimum share ownership requirement is met; thereafter, at least 50% of their compensation is paid in DSUs. There are no vesting requirements relating to DSUs. Dividends in the form of additional DSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. DSUs are settled when the holder leaves the company. The following table summarizes the status of outstanding DSUs at December 31, 2018 and 2017. NUMBER OF DSUs 2018 2017 Outstanding, January 1 4,309,528 4,131,229 Issued (1) 94,580 69,742 Settlement of RSUs/PSUs 112,675 101,066 Dividends credited 240,879 203,442 Settled (365,665 ) (195,951 ) Outstanding, December 31 4,391,997 4,309,528 (1) The weighted average fair value of the DSUs issued was $55 in 2018 and $59 in 2017. STOCK OPTIONS Under BCE’s long-term incentive plans, BCE may grant options to executives to buy BCE common shares. The subscription price of a grant is based on the higher of: • the volume-weighted average of the trading price on the trading day immediately prior to the effective date of the grant • the volume-weighted average of the trading price for the last five consecutive trading days ending on the trading day immediately prior to the effective date of the grant At December 31, 2018, 10,737,659 common shares were authorized for issuance under these plans. Options vest fully after three years of continuous employment from the date of grant. All options become exercisable when they vest and can be exercised for a period of seven years from the date of grant. The following table summarizes BCE’s outstanding stock options at December 31, 2018 and 2017. 2018 2017 NOTE NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE ($) NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE ($) Outstanding, January 1 10,490,249 55 10,242,162 52 Granted 3,888,693 56 3,043,448 59 Exercised (1) 27 (266,941 ) 42 (2,555,863 ) 45 Forfeited (39,669 ) 58 (239,498 ) 58 Outstanding, December 31 14,072,332 56 10,490,249 55 Exercisable, December 31 4,399,588 52 2,013,983 45 (1) The weighted average share price for options exercised was $55 in 2018 and $60 in 2017. The following table provides additional information about BCE’s stock option plans at December 31, 2018. STOCK OPTIONS OUTSTANDING RANGE OF EXERCISE PRICES NUMBER WEIGHTED AVERAGE REMAINING LIFE (YEARS) WEIGHTED AVERAGE EXERCISE PRICE ($) $40-$49 1,747,042 2 46 $50-$59 12,232,011 5 57 $60 & above 93,279 5 61 14,072,332 4 56 ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL The fair value of options granted was determined using a variation of a binomial option pricing model that takes into account factors specific to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation. 2018 Weighted average fair value per option granted $2.13 Weighted average share price $57 Weighted average exercise price $56 Dividend yield 5 % Expected volatility 12 % Risk-free interest rate 2 % Expected life (years) 4 Expected volatilities are based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options. |
Additional cash flow informatio
Additional cash flow information | 12 Months Ended |
Dec. 31, 2018 | |
Statement of cash flows [abstract] | |
Additional cash flow information | Note 29 Additional cash flow information The following table provides a reconciliation of changes in liabilities arising from financing activities. NOTE DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1) DIVIDENDS PAYABLE OTHER LIABILITIES TOTAL January 1, 2018 23,393 54 678 — 24,125 Cash flows from (used in) financing activities Decrease in notes payable (241 ) 118 — — (123 ) Issue of long-term debt 2,996 — — — 2,996 Repayments of long-term debt (2,713 ) — — — (2,713 ) Cash dividends paid on common and preferred shares — — (2,828 ) — (2,828 ) Cash dividends paid by subsidiaries to non-controlling interests 33 — — (16 ) — (16 ) Other financing activities (42 ) — — (35 ) (77 ) Total cash flows from (used in) financing activities excluding equity — 118 (2,844 ) (35 ) (2,761 ) Non-cash changes arising from Finance lease additions 414 — — — 414 Dividends declared on common and preferred shares — — 2,856 — 2,856 Dividends declared by subsidiaries to non-controlling interests — — 5 — 5 Effect of changes in foreign exchange rates 341 (341 ) — — — Business acquisitions 96 — — — 96 Other 161 — (4 ) 35 192 Total non-cash changes 1,012 (341 ) 2,857 35 3,563 December 31, 2018 24,405 (169 ) 691 — 24,927 (1) Included in Other current assets and Other non-current assets in the statements of financial position. NOTE DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1) DIVIDENDS PAYABLE OTHER LIABILITIES TOTAL January 1, 2017 21,459 (31 ) 617 — 22,045 Cash flows from (used in) financing activities Increase in notes payable 452 (119 ) — — 333 Issue of long-term debt 3,011 — — — 3,011 Repayments of long-term debt (2,653 ) — — — (2,653 ) Cash dividends paid on common and preferred shares — — (2,639 ) — (2,639 ) Cash dividends paid by subsidiaries to non-controlling interests 33 — — (34 ) — (34 ) Other financing activities (44 ) 6 — (22 ) (60 ) Total cash flows from (used in) financing activities excluding equity 766 (113 ) (2,673 ) (22 ) (2,042 ) Non-cash changes arising from Finance lease additions 339 — — — 339 Dividends declared on common and preferred shares — — 2,692 — 2,692 Dividends declared by subsidiaries to non-controlling interests — — 45 — 45 Effect of changes in foreign exchange rates (198 ) 198 — — — Business acquisitions 3 972 — — — 972 Other 55 — (3 ) 22 74 Total non-cash changes 1,168 198 2,734 22 4,122 December 31, 2017 23,393 54 678 — 24,125 (1) Included in Other current assets and Trade payables and other liabilities in the statements of financial position. |
Remaining performance obligatio
Remaining performance obligations | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Remaining performance obligations | Note 13 Contract assets and liabilities The table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances . Contract Assets (1) Contract liabilities FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 Opening balance, January 1 1,263 1,121 894 848 Revenue recognized included in contract liabilities at the beginning of the year — — (625 ) (634 ) Revenue recognized from contract liabilities included in contract assets at the beginning of the year 154 139 — — Increase in contract liabilities during the year — — 628 658 Increase in contract liabilities included in contract assets during the year (168 ) (144 ) — — Increase in contract assets from revenue recognized during the year 1,770 1,483 — — Contract assets transferred to trade receivables (1,321 ) (1,172 ) — — Acquisitions — 50 13 29 Contract terminations transferred to trade receivables (219 ) (207 ) (4 ) (2 ) Other 14 (7 ) (7 ) (5 ) Ending balance, December 31 1,493 1,263 899 894 (1) Net of allowance for doubtful accounts of $91 million , $96 million and $92 million at December 31,2018, December 31, 2017 and January 1, 2017, respectively. See Note 26 , Financial and capital management , for additional details. Note 14 Contract costs The table below provides a reconciliation of the contract costs balance . FOR THE YEAR ENDED DECEMBER 31 2018 2017 Opening balance, January 1 636 618 Incremental costs of obtaining a contract and contract fulfillment costs 567 526 Amortization included in operating costs (477 ) (508 ) Impairment charges included in operating costs (19 ) — Ending balance, December 31 707 636 Contract costs are amortized over a period ranging from 12 to 84 months. Note 30 Remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at December 31, 2018 . 2019 2020 2021 2022 2023 THEREAFTER TOTAL Wireline 1,261 821 512 261 81 80 3,016 Wireless 1,737 781 93 44 33 57 2,745 Total 2,998 1,602 605 305 114 137 5,761 When estimating minimum transaction prices allocated to the remaining unfulfilled, or partially unfulfilled, performance obligations, BCE applied the practical expedient to not disclose information about remaining performance obligations that have an original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. Note 34 Adoption of IFRS 15 As a result of adopting IFRS 15, we have changed the comparative figures for the year ended December 31, 2017 and the opening statement of financial position as at January 1, 2017. The impacts of adopting IFRS 15 on our previously reported 2017 results are provided below. Consolidated income statements The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated income statements. YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Operating revenues 22,719 38 22,757 Operating costs (13,541 ) 66 (13,475 ) Severance, acquisition and other costs (190 ) — (190 ) Depreciation (3,037 ) 3 (3,034 ) Amortization (813 ) 3 (810 ) Finance costs Interest expense (955 ) — (955 ) Interest on post-employment benefit obligations (72 ) — (72 ) Other expense (102 ) — (102 ) Income taxes (1,039 ) (30 ) (1,069 ) Net earnings 2,970 80 3,050 Net earnings attributable to: Common shareholders 2,786 80 2,866 Preferred shareholders 128 — 128 Non-controlling interest 56 — 56 Net earnings 2,970 80 3,050 Net earnings per common share - basic 3.12 0.08 3.20 Net earnings per common share - diluted 3.11 0.09 3.20 Average number of common shares outstanding - basic (millions) 894.3 — 894.3 Consolidated statement of financial position The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated statement of financial position. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Reclassifications (1) 2017 upon adoption of IFRS 15 Cash 442 — — 442 Cash equivalents 183 — — 183 Trade and other receivables 3,135 9 (15 ) 3,129 Inventory 380 — — 380 Contract assets — 923 (91 ) 832 Contract costs — 206 144 350 Prepaid expenses 375 — (158 ) 217 Other current assets 124 — (2 ) 122 Total current assets 4,639 1,138 (122 ) 5,655 Contract assets — 400 31 431 Contract costs — 162 124 286 Property, plant and equipment 24,033 (4 ) — 24,029 Intangible assets 13,305 — (47 ) 13,258 Deferred tax assets 144 — — 144 Investments in associates and joint ventures 814 — — 814 Other non-current assets 900 — (143 ) 757 Goodwill 10,428 — — 10,428 Total non-current assets 49,624 558 (35 ) 50,147 Total assets 54,263 1,696 (157 ) 55,802 Trade payables and other liabilities 4,623 — (748 ) 3,875 Contract liabilities — 97 596 693 Interest payable 168 — — 168 Dividends payable 678 — — 678 Current tax liabilities 140 — — 140 Debt due within one year 5,178 — — 5,178 Total current liabilities 10,787 97 (152 ) 10,732 Contract liabilities — 34 167 201 Long-term debt 18,215 — — 18,215 Deferred tax liabilities 2,447 423 — 2,870 Post-employment benefit obligations 2,108 — — 2,108 Other non-current liabilities 1,223 — (172 ) 1,051 Total non-current liabilities 23,993 457 (5 ) 24,445 Total liabilities 34,780 554 (157 ) 35,177 Preferred shares 4,004 — — 4,004 Common shares 20,091 — — 20,091 Contributed surplus 1,162 — — 1,162 Accumulated other comprehensive loss (17 ) — — (17 ) Deficit (6,080 ) 1,142 — (4,938 ) Total equity attributable to BCE shareholders 19,160 1,142 — 20,302 Non- controlling interest 323 — — 323 Total equity 19,483 1,142 — 20,625 Total liabilities and equity 54,263 1,696 (157 ) 55,802 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below shows the impacts of adopting IFRS 15 on our January 1, 2017 consolidated statement of financial position. AS AT January 1, 2017 IFRS 15 impacts Reclassifications (1) January 1, 2017 upon adoption of IFRS 15 Cash 603 — — 603 Cash equivalents 250 — — 250 Trade and other receivables 2,979 11 (2 ) 2,988 Inventory 403 — — 403 Contract assets — 851 (113 ) 738 Contract costs — 195 148 343 Prepaid expenses 420 — (189 ) 231 Other current assets 200 — (2 ) 198 Total current assets 4,855 1,057 (158 ) 5,754 Contract assets — 357 26 383 Contract costs — 151 124 275 Property, plant and equipment 22,346 (5 ) — 22,341 Intangible assets 11,998 — — 11,998 Deferred tax assets 89 — — 89 Investments in associates and joint ventures 852 — — 852 Other non-current assets 1,010 — (113 ) 897 Goodwill 8,958 — — 8,958 Total non-current assets 45,253 503 37 45,793 Total assets 50,108 1,560 (121 ) 51,547 Trade payables and other liabilities 4,326 — (655 ) 3,671 Contract liabilities — 71 574 645 Interest payable 156 — — 156 Dividends payable 617 — — 617 Current tax liabilities 122 — — 122 Debt due within one year 4,887 — — 4,887 Total current liabilities 10,108 71 (81 ) 10,098 Contract liabilities — 34 169 203 Long-term debt 16,572 — — 16,572 Deferred tax liabilities 2,192 393 — 2,585 Post-employment benefit obligations 2,105 — — 2,105 Other non-current liabilities 1,277 — (209 ) 1,068 Total non-current liabilities 22,146 427 (40 ) 22,533 Total liabilities 32,254 498 (121 ) 32,631 Preferred shares 4,004 — — 4,004 Common shares 18,370 — — 18,370 Contributed surplus 1,160 — — 1,160 Accumulated other comprehensive income 46 — — 46 Deficit (6,040 ) 1,062 — (4,978 ) Total equity attributable to BCE shareholders 17,540 1,062 — 18,602 Non- controlling interest 314 — — 314 Total equity 17,854 1,062 — 18,916 Total liabilities and equity 50,108 1,560 (121 ) 51,547 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below provides a reconciliation of our deficit at January 1, 2017 and December 31, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax. AT DECEMBER 31, 2017 AT JANUARY 1, 2017 Total deficit as previously reported (6,080 ) (6,040 ) Timing of revenue recognition 873 809 Cost to obtain a contract 269 253 Total deficit upon adoption of IFRS 15 (4,938 ) (4,978 ) Consolidated statement of cash flows The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows. YEAR ENDED DECEMBER 31, 2017 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Cash flows from operating activities Net earnings 2,970 80 3,050 Depreciation and amortization 3,850 (6 ) 3,844 Income taxes 1,039 30 1,069 Net change in operating assets and liabilities 480 (104 ) 376 Cash flows from operating activities 7,358 — 7,358 Revenues by services and products The following table s hows the impacts of adopting IFRS 15 on our revenues disaggregated by type. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Other (3) 2017 upon adoption of IFRS 15 Services (1) Wireless 7,308 (1,260 ) — 6,048 Data 7,146 (5 ) 51 7,192 Voice 3,800 3 165 3,968 Media 2,676 — — 2,676 Other services 213 (2 ) — 211 Total services 21,143 (1,264 ) 216 20,095 Products (2) Wireless 530 1,303 — 1,833 Data 519 1 (110 ) 410 Equipment and other 527 (2 ) (106 ) 419 Total products 1,576 1,302 (216 ) 2,662 Total operating revenues 22,719 38 — 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. (3) We have reclassified some of the amounts for previous periods to make them consistent with the presentation for the current period. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments and contingencies | Note 31 Commitments and contingencies Commitments The following table is a summary of our contractual obligations at December 31, 2018 that are due in each of the next five years and thereafter. 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Operating leases 317 286 244 187 142 436 1,612 Commitments for property, plant and equipment and intangible assets 1,029 784 623 484 385 698 4,003 Purchase obligations 618 525 484 434 271 519 2,851 Total 1,964 1,595 1,351 1,105 798 1,653 8,466 BCE’s significant operating leases are for office premises, cellular tower sites, retail outlets and OOH advertising spaces with lease terms ranging from 1 to 40 years. These leases are non-cancellable. Rental expense relating to operating leases was $352 million in 2018 and $399 million in 2017. Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand. Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations. Contingencies In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 7, 2019, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements. We believe that we have strong defences and we intend to vigorously defend our positions. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
Related party transactions | Note 32 Related party transactions Subsidiaries The following table shows BCE’s significant subsidiaries at December 31, 2018. BCE has other subsidiaries which have not been included in the table as each represents less than 10% individually and less than 20% in aggregate of total consolidated revenues. All of these significant subsidiaries are incorporated in Canada and provide services to each other in the normal course of operations. The value of these transactions is eliminated on consolidation. OWNERSHIP PERCENTAGE SUBSIDIARY 2018 2017 Bell Canada 100 % 100 % Bell Mobility 100 % 100 % Bell Media 100 % 100 % Transactions with joint arrangements and associates During 2018 and 2017, BCE provided communication services and received programming content and other services in the normal course of business on an arm’s length basis to and from its joint arrangements and associates. Our joint arrangements and associates include MLSE, Glentel Inc. and Dome Productions Partnership. From time to time, BCE may be required to make capital contributions in its investments. In 2018, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $17 million (2017 – $11 million ) and $187 million (2017 – $177 million ), respectively. BCE Master Trust Fund Bimcor Inc. (Bimcor), a wholly-owned subsidiary of Bell Canada, is the administrator of the Master Trust Fund. Bimcor recognized management fees of $11 million from the Master Trust Fund for 2018 and $10 million for 2017. The details of BCE’s post-employment benefit plans are set out in Note 24 , Post-employment benefit plans . Compensation of key management personnel and board of directors The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2018 and 2017 included in our income statements. Key management personnel include the company’s Chief Executive Officer (CEO), Chief Operating Officer (COO), Group President and the executives who report directly to them. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Wages, salaries, fees and related taxes and benefits (27 ) (23 ) Post-employment benefit plans and OPEBs cost (4 ) (3 ) Share-based compensation (23 ) (23 ) Key management personnel and board of directors compensation expense (54 ) (49 ) |
Significant partly-owned subsid
Significant partly-owned subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Other Entities [Abstract] | |
Significant partly-owned subsidiaries | Note 33 Significant partly-owned subsidiaries The following tables show summarized financial information for our subsidiary with significant non-controlling interest (NCI). Summarized statements of financial position CTV SPECIALTY (1) (2) December 31, 2018 December 31, 2017 January 1, 2017 Current assets 337 328 293 Non-current assets 993 1,013 1,013 Total assets 1,330 1,341 1,306 Current liabilities 142 153 130 Non-current liabilities 201 184 195 Total liabilities 343 337 325 Total equity attributable to BCE shareholders 685 700 687 NCI 302 304 294 (1) At December 31, 2018 and 2017 and January 1, 2017, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9% . CTV Specialty was incorporated and operated in Canada as at such dates. (2) CTV Specialty's net assets at December 31, 2018 and 2017 and January 1, 2017, include $10 million , $6 million and $2 million , respectively, directly attributable to NCI. Selected income and cash flow information CTV SPECIALTY (1) FOR THE YEAR ENDED DECEMBER 31 2018 2017 Operating revenues 857 832 Net earnings 131 179 Net earnings attributable to NCI 42 56 Total comprehensive income 149 172 Total comprehensive income attributable to NCI 47 54 Cash dividends paid to NCI 16 34 (1) CTV Specialty's net earnings and total comprehensive income include $4 million directly attributable to NCI for 2018 and $3 million for 2017. |
Adoption of IFRS 15
Adoption of IFRS 15 | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Adoption of IFRS 15 | Note 13 Contract assets and liabilities The table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances . Contract Assets (1) Contract liabilities FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 Opening balance, January 1 1,263 1,121 894 848 Revenue recognized included in contract liabilities at the beginning of the year — — (625 ) (634 ) Revenue recognized from contract liabilities included in contract assets at the beginning of the year 154 139 — — Increase in contract liabilities during the year — — 628 658 Increase in contract liabilities included in contract assets during the year (168 ) (144 ) — — Increase in contract assets from revenue recognized during the year 1,770 1,483 — — Contract assets transferred to trade receivables (1,321 ) (1,172 ) — — Acquisitions — 50 13 29 Contract terminations transferred to trade receivables (219 ) (207 ) (4 ) (2 ) Other 14 (7 ) (7 ) (5 ) Ending balance, December 31 1,493 1,263 899 894 (1) Net of allowance for doubtful accounts of $91 million , $96 million and $92 million at December 31,2018, December 31, 2017 and January 1, 2017, respectively. See Note 26 , Financial and capital management , for additional details. Note 14 Contract costs The table below provides a reconciliation of the contract costs balance . FOR THE YEAR ENDED DECEMBER 31 2018 2017 Opening balance, January 1 636 618 Incremental costs of obtaining a contract and contract fulfillment costs 567 526 Amortization included in operating costs (477 ) (508 ) Impairment charges included in operating costs (19 ) — Ending balance, December 31 707 636 Contract costs are amortized over a period ranging from 12 to 84 months. Note 30 Remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at December 31, 2018 . 2019 2020 2021 2022 2023 THEREAFTER TOTAL Wireline 1,261 821 512 261 81 80 3,016 Wireless 1,737 781 93 44 33 57 2,745 Total 2,998 1,602 605 305 114 137 5,761 When estimating minimum transaction prices allocated to the remaining unfulfilled, or partially unfulfilled, performance obligations, BCE applied the practical expedient to not disclose information about remaining performance obligations that have an original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer. Note 34 Adoption of IFRS 15 As a result of adopting IFRS 15, we have changed the comparative figures for the year ended December 31, 2017 and the opening statement of financial position as at January 1, 2017. The impacts of adopting IFRS 15 on our previously reported 2017 results are provided below. Consolidated income statements The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated income statements. YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Operating revenues 22,719 38 22,757 Operating costs (13,541 ) 66 (13,475 ) Severance, acquisition and other costs (190 ) — (190 ) Depreciation (3,037 ) 3 (3,034 ) Amortization (813 ) 3 (810 ) Finance costs Interest expense (955 ) — (955 ) Interest on post-employment benefit obligations (72 ) — (72 ) Other expense (102 ) — (102 ) Income taxes (1,039 ) (30 ) (1,069 ) Net earnings 2,970 80 3,050 Net earnings attributable to: Common shareholders 2,786 80 2,866 Preferred shareholders 128 — 128 Non-controlling interest 56 — 56 Net earnings 2,970 80 3,050 Net earnings per common share - basic 3.12 0.08 3.20 Net earnings per common share - diluted 3.11 0.09 3.20 Average number of common shares outstanding - basic (millions) 894.3 — 894.3 Consolidated statement of financial position The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated statement of financial position. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Reclassifications (1) 2017 upon adoption of IFRS 15 Cash 442 — — 442 Cash equivalents 183 — — 183 Trade and other receivables 3,135 9 (15 ) 3,129 Inventory 380 — — 380 Contract assets — 923 (91 ) 832 Contract costs — 206 144 350 Prepaid expenses 375 — (158 ) 217 Other current assets 124 — (2 ) 122 Total current assets 4,639 1,138 (122 ) 5,655 Contract assets — 400 31 431 Contract costs — 162 124 286 Property, plant and equipment 24,033 (4 ) — 24,029 Intangible assets 13,305 — (47 ) 13,258 Deferred tax assets 144 — — 144 Investments in associates and joint ventures 814 — — 814 Other non-current assets 900 — (143 ) 757 Goodwill 10,428 — — 10,428 Total non-current assets 49,624 558 (35 ) 50,147 Total assets 54,263 1,696 (157 ) 55,802 Trade payables and other liabilities 4,623 — (748 ) 3,875 Contract liabilities — 97 596 693 Interest payable 168 — — 168 Dividends payable 678 — — 678 Current tax liabilities 140 — — 140 Debt due within one year 5,178 — — 5,178 Total current liabilities 10,787 97 (152 ) 10,732 Contract liabilities — 34 167 201 Long-term debt 18,215 — — 18,215 Deferred tax liabilities 2,447 423 — 2,870 Post-employment benefit obligations 2,108 — — 2,108 Other non-current liabilities 1,223 — (172 ) 1,051 Total non-current liabilities 23,993 457 (5 ) 24,445 Total liabilities 34,780 554 (157 ) 35,177 Preferred shares 4,004 — — 4,004 Common shares 20,091 — — 20,091 Contributed surplus 1,162 — — 1,162 Accumulated other comprehensive loss (17 ) — — (17 ) Deficit (6,080 ) 1,142 — (4,938 ) Total equity attributable to BCE shareholders 19,160 1,142 — 20,302 Non- controlling interest 323 — — 323 Total equity 19,483 1,142 — 20,625 Total liabilities and equity 54,263 1,696 (157 ) 55,802 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below shows the impacts of adopting IFRS 15 on our January 1, 2017 consolidated statement of financial position. AS AT January 1, 2017 IFRS 15 impacts Reclassifications (1) January 1, 2017 upon adoption of IFRS 15 Cash 603 — — 603 Cash equivalents 250 — — 250 Trade and other receivables 2,979 11 (2 ) 2,988 Inventory 403 — — 403 Contract assets — 851 (113 ) 738 Contract costs — 195 148 343 Prepaid expenses 420 — (189 ) 231 Other current assets 200 — (2 ) 198 Total current assets 4,855 1,057 (158 ) 5,754 Contract assets — 357 26 383 Contract costs — 151 124 275 Property, plant and equipment 22,346 (5 ) — 22,341 Intangible assets 11,998 — — 11,998 Deferred tax assets 89 — — 89 Investments in associates and joint ventures 852 — — 852 Other non-current assets 1,010 — (113 ) 897 Goodwill 8,958 — — 8,958 Total non-current assets 45,253 503 37 45,793 Total assets 50,108 1,560 (121 ) 51,547 Trade payables and other liabilities 4,326 — (655 ) 3,671 Contract liabilities — 71 574 645 Interest payable 156 — — 156 Dividends payable 617 — — 617 Current tax liabilities 122 — — 122 Debt due within one year 4,887 — — 4,887 Total current liabilities 10,108 71 (81 ) 10,098 Contract liabilities — 34 169 203 Long-term debt 16,572 — — 16,572 Deferred tax liabilities 2,192 393 — 2,585 Post-employment benefit obligations 2,105 — — 2,105 Other non-current liabilities 1,277 — (209 ) 1,068 Total non-current liabilities 22,146 427 (40 ) 22,533 Total liabilities 32,254 498 (121 ) 32,631 Preferred shares 4,004 — — 4,004 Common shares 18,370 — — 18,370 Contributed surplus 1,160 — — 1,160 Accumulated other comprehensive income 46 — — 46 Deficit (6,040 ) 1,062 — (4,978 ) Total equity attributable to BCE shareholders 17,540 1,062 — 18,602 Non- controlling interest 314 — — 314 Total equity 17,854 1,062 — 18,916 Total liabilities and equity 50,108 1,560 (121 ) 51,547 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below provides a reconciliation of our deficit at January 1, 2017 and December 31, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax. AT DECEMBER 31, 2017 AT JANUARY 1, 2017 Total deficit as previously reported (6,080 ) (6,040 ) Timing of revenue recognition 873 809 Cost to obtain a contract 269 253 Total deficit upon adoption of IFRS 15 (4,938 ) (4,978 ) Consolidated statement of cash flows The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows. YEAR ENDED DECEMBER 31, 2017 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Cash flows from operating activities Net earnings 2,970 80 3,050 Depreciation and amortization 3,850 (6 ) 3,844 Income taxes 1,039 30 1,069 Net change in operating assets and liabilities 480 (104 ) 376 Cash flows from operating activities 7,358 — 7,358 Revenues by services and products The following table s hows the impacts of adopting IFRS 15 on our revenues disaggregated by type. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Other (3) 2017 upon adoption of IFRS 15 Services (1) Wireless 7,308 (1,260 ) — 6,048 Data 7,146 (5 ) 51 7,192 Voice 3,800 3 165 3,968 Media 2,676 — — 2,676 Other services 213 (2 ) — 211 Total services 21,143 (1,264 ) 216 20,095 Products (2) Wireless 530 1,303 — 1,833 Data 519 1 (110 ) 410 Equipment and other 527 (2 ) (106 ) 419 Total products 1,576 1,302 (216 ) 2,662 Total operating revenues 22,719 38 — 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. (3) We have reclassified some of the amounts for previous periods to make them consistent with the presentation for the current period. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Basis of presentation | The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as described in our accounting policies. Effective January 1, 2018, we applied IFRS 15 retrospectively to each prior period presented. The impacts of adopting IFRS 15 on our consolidated income statement and consolidated statement of cash flows for the year ended December 31, 2017, along with our statements of financial position as at January 1, 2017 and December 31, 2017, are provided in this note in section T) Adoption of new or amended accounting standards and Note 34, Adoption of IFRS 15. All amounts are in millions of Canadian dollars, except where noted. FUNCTIONAL CURRENCY The financial statements are presented in Canadian dollars, the company’s functional currency. |
Basis of consolidation | We consolidate the financial statements of all of our subsidiaries. Subsidiaries are entities we control, where control is achieved when the company is exposed or has the right to variable returns from its involvement with the investee and has the current ability to direct the activities of the investee that significantly affect the investee’s returns. The results of subsidiaries acquired during the year are consolidated from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. All intercompany transactions, balances, income and expenses are eliminated on consolidation. Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on Other comprehensive income (loss) . |
Revenue from contracts with customers | Revenue is measured based on the value of the expected consideration in a contract with a customer and excludes sales taxes and other amounts we collect on behalf of third parties. We recognize revenue when control of a product or service is transferred to a customer. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For bundled arrangements, we account for individual products and services when they are separately identifiable and the customer can benefit from the product or service on its own or with other readily available resources. The total arrangement consideration is allocated to each product or service included in the contract with the customer based on its stand-alone selling price. We generally determine stand-alone selling prices based on the observable prices at which we sell products separately without a service contract and prices for non-bundled service offers with the same range of services, adjusted for market conditions and other factors, as appropriate. When similar products and services are not sold separately, we use the expected cost plus margin approach to determine stand-alone selling prices. Products and services purchased by a customer in excess of those included in the bundled arrangement are accounted for separately. We may enter into arrangements with subcontractors and others who provide services to our customers. When we act as the principal in these arrangements, we recognize revenues based on the amounts billed to our customers. Otherwise, we recognize the net amount that we retain as revenues. A contract asset is recognized in the consolidated statements of financial position (statements of financial position) when our right to consideration from the transfer of products or services to a customer is conditional on our obligation to transfer other products or services. Contract assets are transferred to trade receivables when our right to consideration becomes conditional only as to the passage of time. A contract liability is recognized in the statements of financial position when we receive consideration in advance of the transfer of products or services to the customer. Contract assets and liabilities relating to the same contract are presented on a net basis. Incremental costs of obtaining a contract with a customer, principally comprised of sales commissions and prepaid contract fulfillment costs, are included in contract costs in the statements of financial position, except where the amortization period is one year or less, in which case costs of obtaining a contract are immediately expensed. Capitalized costs are amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services. WIRELESS SEGMENT REVENUES Our Wireless segment principally generates revenue from providing integrated digital wireless voice and data communications products and services to residential and business customers. We recognize product revenues from the sale of wireless handsets and devices when a customer takes possession of the product. We recognize wireless service revenues over time, as the services are provided. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate. For wireless products and services that are sold separately, customers usually pay in full at the point of sale for products and on a monthly basis for services. For wireless products and services sold in bundled arrangements, customers pay monthly over a contract term of up to 24 months for residential customers and up to 36 months for business customers. WIRELINE SEGMENT REVENUES Our Wireline segment principally generates revenue from providing data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, satellite TV service and connectivity, as well as other communications services and products to residential and business customers. Our Wireline segment also includes revenues from our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers. We recognize product revenues from the sale of wireline equipment when a customer takes possession of the product. We recognize service revenues over time, as the services are provided. Revenues on certain long-term contracts are recognized using output methods based on products delivered, performance completed to date, time elapsed or milestones met. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate, or the expected cost plus margin approach for customized business arrangements. For wireline customers, products are usually paid in full at the point of sale. Services are paid on a monthly basis except where a billing schedule has been established with certain business customers under long-term contracts that can generally extend up to seven years. MEDIA SEGMENT REVENUES Our Media segment principally generates revenue from conventional TV, specialty TV, digital media, radio broadcasting and OOH advertising and subscriber fees from specialty TV, pay TV and streaming services. We recognize advertising revenue when advertisements are aired on the radio or TV, posted on our websites or appear on our advertising panels and street furniture. Revenues relating to subscriber fees are recorded on a monthly basis as the services are provided. Customer payments are due monthly as the services are provided. |
Share-based payments | Our share-based payment arrangements include stock options, restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP). STOCK OPTIONS We use a fair value-based method to measure the cost of our employee stock options, based on the number of stock options that are expected to vest. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s estimate of the number of stock options that are expected to vest. We credit contributed surplus for stock option expense recognized over the vesting period. When stock options are exercised, we credit share capital for the amount received and the amounts previously credited to contributed surplus. RSUs/PSUs For each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares. Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs are settled in BCE common shares, DSUs, or a combination thereof. DSUs If compensation is elected to be taken in DSUs, we issue DSUs equal to the fair value of the services received. Additional DSUs are issued to reflect dividends declared on the common shares. DSUs are settled in BCE common shares purchased on the open market following the cessation of employment or when a director leaves the board. We credit contributed surplus for the fair value of DSUs at the issue date. Upon settlement of the DSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. ESP We recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus for the ESP expense recognized over the two -year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. DSP For each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share. Deferred shares are no longer granted except those issued to reflect dividends declared on common shares. Compensation expense is adjusted for subsequent changes in the market value of BCE common shares. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant. |
Income and other taxes | Current and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items recognized in Other comprehensive income (loss) or directly in equity. A current or non-current tax asset (liability) is the estimated tax receivable (payable) on taxable earnings (loss) for the current or past periods. We use the liability method to account for deferred tax assets and liabilities, which arise from: • temporary differences between the carrying amount of assets and liabilities recognized in the statements of financial position and their corresponding tax bases • the carryforward of unused tax losses and credits, to the extent they can be used in the future Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply when the asset or liability is recovered or settled. Both our current and deferred tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted at the reporting date. Deferred taxes are provided on temporary differences arising from investments in subsidiaries, joint arrangements and associates, except where we control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Tax liabilities are, where permitted, offset against tax assets within the same taxable entity and tax jurisdiction. INVESTMENT TAX CREDITS (ITCs), OTHER TAX CREDITS AND GOVERNMENT GRANTS We recognize ITCs, other tax credits and government grants given on eligible expenditures when it is reasonably assured that they will be realized. They are presented as part of Trade and other receivables in the statements of financial position when they are expected to be utilized in the next year. We use the cost reduction method to account for ITCs and government grants, under which the credits are applied against the expense or asset to which the ITC or government grant relates. |
Cash equivalents | Cash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase. |
Securitization of trade receivables | Proceeds on the securitization of trade receivables are recognized as a collateralized borrowing as we do not transfer control and substantially all the risks and rewards of ownership to another entity. |
Inventory | We measure inventory at the lower of cost and net realizable value. Inventory includes all costs to purchase, convert and bring the inventories to their present location and condition. We determine cost using specific identification for major equipment held for resale and the weighted average cost formula for all other inventory. We maintain inventory valuation reserves for inventory that is slow-moving or potentially obsolete, calculated using an inventory aging analysis. |
Property, plant and equipment | We record property, plant and equipment at historical cost. Historical cost includes expenditures that are attributable directly to the acquisition or construction of the asset, including the purchase cost, and labour. |
Borrowing costs | The cost of issuing debt is included as part of long-term debt and is accounted for at amortized cost using the effective interest method. The cost of issuing equity is reflected in the consolidated statements of changes in equity as a charge to the deficit. Borrowing costs are capitalized for qualifying assets, if the time to build or develop is in excess of one year, at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other expense in the income statements. |
Leases | Leases of property, plant and equipment are recognized as finance leases when we obtain substantially all the risks and rewards of ownership of the underlying assets. At the inception of the lease, we record an asset together with a corresponding long-term lease liability, at the lower of the fair value of the leased asset or the present value of the minimum future lease payments. If there is reasonable certainty that the lease transfers ownership of the asset to us by the end of the lease term, the asset is amortized over its useful life. Otherwise, the asset is amortized over the shorter of its useful life and the lease term. The long-term lease liability is measured at amortized cost using the effective interest method. All other leases are classified as operating leases. We recognize operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease. |
Asset retirement obligations | We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows and changes in discount rates. We capitalize asset retirement costs as part of the related assets and amortize them into earnings over time. We also increase the ARO and record a corresponding amount in interest expense to reflect the passage of time. |
Intangible assets | FINITE-LIFE INTANGIBLE ASSETS Finite-life intangible assets are recorded at cost less accumulated amortization, and accumulated impairment losses, if any. SOFTWARE We record internal-use software at historical cost. Cost includes expenditures that are attributable directly to the acquisition or development of the software, including the purchase cost and labour. Software development costs are capitalized when all the following conditions are met: • technical feasibility can be demonstrated • management has the intent and the ability to complete the asset for use or sale • it is probable that economic benefits will be generated • costs attributable to the asset can be measured reliably CUSTOMER RELATIONSHIPS Customer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition. PROGRAM AND FEATURE FILM RIGHTS We account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization, and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when: • we receive a broadcast master and the cost is known or reasonably determinable for new program and feature film licences; or • the licence term commences for licence period extensions or syndicated programs Related liabilities of programs and feature films are classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements. INDEFINITE-LIFE INTANGIBLE ASSETS Brand assets, mainly comprised of the Bell, Bell Media and Bell MTS brands, and broadcast licences are acquired through business combinations and are recorded at fair value at the date of acquisition, less accumulated impairment losses, if any. Wireless spectrum licences are recorded at acquisition cost, including borrowing costs when the time to build or develop the related network is in excess of one year. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt. Currently there are no legal, regulatory, competitive or other factors that limit the useful lives of our brands or spectrum licences. |
Amortization | We depreciate property, plant and equipment and amortize finite-life intangible assets on a straight-line basis over their estimated useful lives. We review our estimates of useful lives on an annual basis and adjust depreciation and amortization on a prospective basis, as required. Land and assets under construction or development are not depreciated. ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years |
Depreciation | We depreciate property, plant and equipment and amortize finite-life intangible assets on a straight-line basis over their estimated useful lives. We review our estimates of useful lives on an annual basis and adjust depreciation and amortization on a prospective basis, as required. Land and assets under construction or development are not depreciated. ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years |
Investment in associates and joint arrangements | Our financial statements incorporate our share of the results of our associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other expense in the income statements. Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income or loss on an after-tax basis. Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment. We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements. |
Business combinations and goodwill | Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value at the date of acquisition. Acquisition-related transaction costs are expensed as incurred and recorded in Severance, acquisition and other costs in the income statements. Identifiable assets and liabilities, including intangible assets, of acquired businesses are recorded at their fair values at the date of acquisition. When we acquire control of a business, any previously-held equity interest is remeasured to fair value and any gain or loss on remeasurement is recognized in Other expense in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other expense in the income statements immediately as a bargain purchase gain. Changes in our ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Any difference between the change in the carrying amount of non-controlling interest (NCI) and the consideration paid or received is attributed to owner’s equity. |
Impairment of non-financial assets | Goodwill and indefinite-life intangible assets are tested for impairment annually or when there is an indication that the asset may be impaired. Property, plant and equipment and finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, indicate that their carrying amount may not be recoverable. For the purpose of impairment testing, assets other than goodwill are grouped at the lowest level for which there are separately identifiable cash inflows. Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. Previously recognized impairment losses, other than those attributable to goodwill, are reviewed for possible reversal at each reporting date and, if the asset’s recoverable amount has increased, all or a portion of the impairment is reversed. GOODWILL IMPAIRMENT TESTING We perform an annual test for goodwill impairment in the fourth quarter for each of our cash generating units (CGUs) or groups of CGUs to which goodwill is allocated, and whenever there is an indication that goodwill might be impaired. A CGU is the smallest identifiable group of assets that generates cash inflows that are independent of the cash inflows from other assets or groups of assets. We identify any potential impairment by comparing the carrying value of a CGU or group of CGUs to its recoverable amount. The recoverable amount of a CGU or group of CGUs is the higher of its fair value less costs of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill. An impairment charge is recognized in Other expense in the income statements for any excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 4 , Segmented information . |
Trade and other receivables | We measure trade and other receivables at amortized cost using the effective interest method, net of any allowance for doubtful accounts. We measure the allowance for doubtful accounts and impairment of contract assets based on an expected credit loss (ECL) model, which takes into account current economic conditions, historical information, and forward-looking information. We use the simplified approach for measuring losses based on the lifetime ECL for trade and other receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statements. |
Portfolio investments in equity securities | Our portfolio investments in equity securities are classified as fair value through other comprehensive income (FVOCI) and are presented in our statements of financial position as Other non-current assets . These securities are recorded at fair value on the date of acquisition, including related transaction costs, and are adjusted to fair value at each reporting date. The corresponding unrealized gains and losses are recorded in Other comprehensive income (loss) in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified from Accumulated other comprehensive (loss) income to Deficit in the statements of financial position when realized. |
Other financial liabilities | Other financial liabilities, which include trade payables and accruals, compensation payable, obligations imposed by the Canadian Radio-television and Telecommunications Commission (CRTC), interest payable and long-term debt, are recorded at amortized cost using the effective interest method. |
Derivative financial instruments | HEDGE ACCOUNTING To qualify for hedge accounting, we document the relationship between the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, commitment, or anticipated transaction. We assess the effectiveness of a derivative in managing an identified risk exposure when hedge accounting is initially applied, and on an ongoing basis thereafter. If a hedging relationship ceases to meet the qualifying criteria, we discontinue hedge accounting prospectively. CASH FLOW HEDGES We enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to anticipated debt issuances. We use foreign currency forward contracts to manage the foreign currency exposure relating to anticipated purchases and sales denominated in foreign currencies. Changes in the fair value of these foreign currency forward contracts are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other expense in the income statements. Realized gains and losses in Accumulated other comprehensive (loss) income are reclassified to the income statements or to the initial cost of the non-financial asset in the same periods as the corresponding hedged transactions are recognized. We use cross currency basis swaps and foreign currency forward contracts to manage our U.S. dollar debt under our U.S. commercial paper program and our U.S. dollar long-term debt. Changes in the fair value of these derivatives and the related debt are recognized in Other expense in the income statements and offset, unless a portion of the hedging relationship is ineffective. DERIVATIVES USED AS ECONOMIC HEDGES We use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, and equity price risk related to a cash-settled share-based payment plan. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other expense for other derivatives. |
Post-employment benefit plans | DEFINED BENEFIT (DB) AND OTHER POST-EMPLOYMENT BENEFIT (OPEB) PLANS We maintain DB pension plans that provide pension benefits for certain employees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation. We are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods permitted by pension regulatory bodies. Contributions reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy. We provide OPEBs to some of our employees, including: • healthcare and life insurance benefits during retirement, which were phased out for new retirees since December 31, 2016. We do not fund most of these OPEB plans. • other benefits, including workers’ compensation and medical benefits to former or inactive employees, their beneficiaries and dependants, from the time their employment ends until their retirement starts, under certain circumstances We accrue our obligations and related costs under post-employment benefit plans, net of the fair value of the benefit plan assets. Pension and OPEB costs are determined using: • the projected unit credit method, prorated on years of service, which takes into account future pay levels • a discount rate based on market interest rates of high-quality corporate fixed income investments with maturities that match the timing of benefits expected to be paid under the plans • management’s best estimate of pay increases, retirement ages of employees, expected healthcare costs and life expectancy We value post-employment benefit plan assets at fair value using current market values. Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit plans. The interest rate is based on market conditions that existed at the beginning of the year. Actuarial gains and losses for all post-employment benefit plans are recorded in Other comprehensive income (loss) in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit. December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management's assumptions at least every three years to determine the actuarial present value of the accrued DB pension plan and OPEB obligations. The most recent actuarial valuation of our significant pension plans was as at December 31, 2017. DEFINED CONTRIBUTION (DC) PENSION PLANS We maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary. We recognize a post-employment benefit plans service cost for DC pension plans when the employee provides service to the company, essentially coinciding with our cash contributions. Generally, new employees can participate only in the DC pension plans. |
Provisions | Provisions are recognized when all the following conditions are met: • the company has a present legal or constructive obligation based on past events • it is probable that an outflow of economic resources will be required to settle the obligation • the amount can be reasonably estimated Provisions are measured at the present value of the estimated expenditures expected to settle the obligation, if the effect of the time value of money is material. The present value is determined using current market assessments of the discount rate and risks specific to the obligation. The obligation increases as a result of the passage of time, resulting in interest expense which is recognized in Finance costs in the income statements. |
Estimates and key judgements | When preparing the financial statements, management makes estimates and judgments relating to: • reported amounts of revenues and expenses • reported amounts of assets and liabilities • disclosure of contingent assets and liabilities We base our estimates on a number of factors, including historical experience, current events and actions that the company may undertake in the future, and other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below. ESTIMATES USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETS Property, plant and equipment represent a significant proportion of our total assets. Changes in technology or our intended use of these assets, as well as changes in business prospects or economic and industry factors, may cause the estimated useful lives of these assets to change. POST-EMPLOYMENT BENEFIT PLANS The amounts reported in the financial statements relating to DB pension plans and OPEBs are determined using actuarial calculations that are based on several assumptions. The actuarial valuation uses management’s assumptions for, among other things, the discount rate, life expectancy, the rate of compensation increase, trends in healthcare costs and expected average remaining years of service of employees. The most significant assumptions used to calculate the net post-employment benefit plans cost are the discount rate and life expectancy. The discount rate is based on the yield on long-term, high-quality corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience. REVENUE FROM CONTRACTS WITH CUSTOMERS We are required to make estimates that affect the amount of revenue from contracts with customers, including estimating the stand-alone selling prices of products and services. IMPAIRMENT OF NON-FINANCIAL ASSETS We make a number of estimates when calculating recoverable amounts using discounted future cash flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model and the discount rate. DEFERRED TAXES The amounts of deferred tax assets and liabilities are estimated with consideration given to the timing, sources and amounts of future taxable income. FAIR VALUE OF FINANCIAL INSTRUMENTS Certain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected in the income statements and the statements of comprehensive income. Fair values are estimated by reference to published price quotations or by using other valuation techniques that may include inputs that are not based on observable market data, such as discounted cash flows and earnings multiples. CONTINGENCIES In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings represent a potential cost to our business. We estimate the amount of a loss by analyzing potential outcomes and assuming various litigation and settlement strategies, based on information that is available at the time. ONEROUS CONTRACTS A provision for onerous contracts is recognized when the unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of completing the contract. JUDGMENTS POST-EMPLOYMENT BENEFIT PLANS The determination of the discount rate used to value our post-employment benefit obligations requires judgment. The rate is set by reference to market yields of high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded. INCOME TAXES The calculation of income taxes requires judgment in interpreting tax rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities. Management judgment is used to determine the amounts of deferred tax assets and liabilities to be recognized. In particular, judgment is required when assessing the timing of the reversal of temporary differences to which future income tax rates are applied. REVENUE FROM CONTRACTS WITH CUSTOMERS The identification of performance obligations within a contract and the timing of satisfaction of performance obligations under long-term contracts requires judgment. Additionally, the determination of costs to obtain a contract, including the identification of incremental costs, also requires judgment. CGUs The determination of CGUs or groups of CGUs for the purpose of impairment testing requires judgment. CONTINGENCIES The determination of whether a loss is probable from claims and legal proceedings and whether an outflow of resources is likely requires judgment. |
Change in accounting estimate | T) Adoption of new or amended accounting standards |
Adoption of new or amended accounting standards | As required, effective January 1, 2018, we adopted the following new or amended accounting standards. STANDARD DESCRIPTION IMPACT IFRS 15 – Revenue from Contracts with Customers Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a customer contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures are also required under the new standard. We applied IFRS 15 retrospectively to each prior period presented. The impacts of adopting IFRS 15 on our income statement and statement of cash flows for the year ended December 31, 2017, along with our statements of financial position as at January 1, 2017 and December 31, 2017, are provided in Note 34, Adoption of IFRS 15. IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract. - Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract. - As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue - Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below Under IFRS 15, we applied the following practical expedients: - Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated - Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations. - When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognize that amount as revenue are not disclosed. - Costs of obtaining a contract that would be amortized within one year or less are immediately expensed STANDARD DESCRIPTION IMPACT IFRS 9 – Financial Instruments Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures are also required under the new standard. We applied IFRS 9 - Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million. IFRS 9 replaces the classification and measurement models in IAS 39 - Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, FVOCI or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets. - Cash and cash equivalents and trade and other receivables continue to be measured at amortized cost under IFRS 9 - Derivatives measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9; derivatives that qualify for hedge accounting continue to be measured at fair value under IFRS 9, with changes in fair value recognized in Other comprehensive income (loss) - Portfolio investments in equity securities measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9 The impairment of financial assets under IFRS 9 is based on an ECL model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement. We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required. - Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive (loss) income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income (loss). Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income (loss) to net earnings under IFRS 9. Amendments to IFRS 2 – Share-based Payment Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled. The amendments to IFRS 2 did not have a significant impact on our financial statements. |
Future changes to accounting standards | The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2018 and have not yet been adopted by BCE. STANDARD DESCRIPTION IMPACT EFFECTIVE DATE IFRS 16 – Leases Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not substantially change lease accounting for lessors. We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach whereby the financial statements of prior periods presented are not restated. The cumulative effect of the initial adoption of IFRS 16 will be reflected as an adjustment to the deficit at January 1, 2019. We will recognize lease liabilities at January 1, 2019 for leases previously classified as operating leases, the present value of which will be measured using the discount rate at that date. Corresponding right-of-use assets will also be recognized at January 1, 2019. As permitted by IFRS 16, we have elected not to recognize lease liabilities and right-of-use assets for short-term leases and will apply certain practical expedients to facilitate the initial adoption and ongoing application of IFRS 16, most notably: - We will not separate non-lease components from lease components for certain classes of underlying assets. Each lease component and any associated non-lease components will be accounted for as a single lease component. While our testing and data validation process is ongoing, we expect the adoption of IFRS 16 to result in an increase in our right-of-use assets and a corresponding increase in our lease liabilities within the range of $2.1 billion to $2.3 billion and an increase to our net debt leverage ratio. For the definition of our net debt leverage ratio see Note 26, Financial and capital management. Annual periods beginning on or after January 1, 2019, using a modified retrospective approach. International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments Clarifies the application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances. IFRIC 23 will not have a significant impact on our financial statements. Annual periods beginning on or after January 1, 2019, using a full retrospective approach. Amendments to IFRS 3 - Business Combinations These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition. The amendments to IFRS 3 - Business Combinations may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill. Prospectively for acquisitions occurring on or after January 1, 2020, with early adoption permitted. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Disclosure of detailed information about property, plant and equipment | ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2018 61,484 5,961 1,774 69,219 Additions 2,699 72 1,437 4,208 Acquisition through business combinations 144 49 — 193 Transfers 898 43 (1,447 ) (506 ) Retirements and disposals (969 ) (54 ) — (1,023 ) Impairment losses recognized in earnings 8 (8 ) — — (8 ) December 31, 2018 64,248 6,071 1,764 72,083 ACCUMULATED DEPRECIATION January 1, 2018 41,949 3,241 — 45,190 Depreciation 2,923 222 — 3,145 Retirements and disposals (931 ) (52 ) — (983 ) Other (107 ) (6 ) — (113 ) December 31, 2018 43,834 3,405 — 47,239 NET CARRYING AMOUNT January 1, 2018 19,535 2,720 1,774 24,029 December 31, 2018 20,414 2,666 1,764 24,844 (1) Includes assets under finance leases. FOR THE YEAR ENDED DECEMBER 31, 2017 NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2017 58,670 5,572 1,374 65,616 Additions 2,491 70 1,587 4,148 Acquisition through business combinations 653 264 76 993 Transfers 775 77 (1,263 ) (411 ) Retirements and disposals (1,105 ) (22 ) — (1,127 ) December 31, 2017 61,484 5,961 1,774 69,219 ACCUMULATED DEPRECIATION January 1, 2017 40,228 3,047 — 43,275 Depreciation 2,813 221 — 3,034 Retirements and disposals (1,054 ) (19 ) — (1,073 ) Other (38 ) (8 ) — (46 ) December 31, 2017 41,949 3,241 — 45,190 NET CARRYING AMOUNT January 1, 2017 18,442 2,525 1,374 22,341 December 31, 2017 19,535 2,720 1,774 24,029 (1) Includes assets under finance leases . Finance leases |
Disclosure of detailed information about intangible assets | ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2018 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 Additions 362 13 967 106 1,448 — 56 — 56 1,504 Acquired through business combinations 9 51 — 1 61 1 — 5 6 67 Transfers 506 — — 4 510 (4 ) — — (4 ) 506 Retirements and disposals (41 ) — — (4 ) (45 ) — (1 ) — (1 ) (46 ) Impairment losses recognized in earnings 8 — — (14 ) — (14 ) (31 ) (2 ) (145 ) (178 ) (192 ) Amortization included in operating costs — — (990 ) — (990 ) — — — — (990 ) December 31, 2018 9,525 2,014 704 500 12,743 2,409 3,587 2,111 8,107 20,850 ACCUMULATED AMORTIZATION January 1, 2018 5,976 612 — 155 6,743 — — — — 6,743 Amortization 707 115 — 47 869 — — — — 869 Retirements and disposals (39 ) — — (4 ) (43 ) — — — — (43 ) Other 76 — — — 76 — — — — 76 December 31, 2018 6,720 727 — 198 7,645 — — — — 7,645 NET CARRYING AMOUNT January 1, 2018 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 December 31, 2018 2,805 1,287 704 302 5,098 2,409 3,587 2,111 8,107 13,205 FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2017 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2017 7,861 1,159 682 350 10,052 2,333 3,288 2,322 7,943 17,995 Additions 344 31 1,009 7 1,391 — — — — 1,391 Acquired through business combinations 98 780 — 103 981 110 246 — 356 1,337 Transfers 407 — — — 407 — — (1 ) (1 ) 406 Retirements and disposals (21 ) (20 ) — (55 ) (96 ) — — — — (96 ) Impairment losses recognized in earnings 8 — — — (12 ) (12 ) — — (70 ) (70 ) (82 ) Amortization included in operating costs — — (950 ) — (950 ) — — — — (950 ) December 31, 2017 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 ACCUMULATED AMORTIZATION January 1, 2017 5,316 513 — 168 5,997 — — — — 5,997 Amortization 672 99 — 39 810 — — — — 810 Retirements and disposals (21 ) — — (52 ) (73 ) — — — — (73 ) Other 9 — — — 9 — — — — 9 December 31, 2017 5,976 612 — 155 6,743 — — — — 6,743 NET CARRYING AMOUNT January 1, 2017 2,545 646 682 182 4,055 2,333 3,288 2,322 7,943 11,998 December 31, 2017 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 |
Disclosure of adoption of amended accounting standards | As required, effective January 1, 2018, we adopted the following new or amended accounting standards. STANDARD DESCRIPTION IMPACT IFRS 15 – Revenue from Contracts with Customers Establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of IAS 17 – Leases or other IFRSs. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a customer contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides guidance relating to principal versus agent relationships, licences of intellectual property, contract costs and the measurement and recognition of gains and losses on the sale of certain non-financial assets such as property and equipment. Additional disclosures are also required under the new standard. We applied IFRS 15 retrospectively to each prior period presented. The impacts of adopting IFRS 15 on our income statement and statement of cash flows for the year ended December 31, 2017, along with our statements of financial position as at January 1, 2017 and December 31, 2017, are provided in Note 34, Adoption of IFRS 15. IFRS 15 principally affects the timing of revenue recognition and how we classify revenues between product and service in our Bell Wireless segment. IFRS 15 also affects how we account for costs to obtain a contract. - Under multiple-element arrangements, revenue allocated to a satisfied performance obligation is no longer limited to the amount that is not contingent upon the satisfaction of additional performance obligations. Although the total revenue recognized during the term of a contract is largely unaffected, revenue recognition may be accelerated and reflected ahead of the associated cash inflows. This results in the recognition of a contract asset on the balance sheet, corresponding to the amount of revenue recognized and not yet billed to a customer. The contract asset is realized over the term of the customer contract. - As revenues allocated to a satisfied performance obligation are no longer limited to the non-contingent amount, a greater proportion of the total revenue recognized during the term of certain customer contracts may be attributed to a delivered product, resulting in a corresponding decrease in service revenue - Sales commissions and any other incremental costs of obtaining a contract with a customer are recognized on the statement of financial position and amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services, except as noted below Under IFRS 15, we applied the following practical expedients: - Completed contracts that begin and end within the same annual reporting period and those completed before January 1, 2017 are not restated - Contracts modified prior to January 1, 2017 are not restated. The aggregate effect of these modifications is reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations. - When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice. For such contracts and for performance obligations that are part of a contract that has an original expected duration of one year or less, the transaction price amount allocated to the remaining performance obligations and an explanation of when we expect to recognize that amount as revenue are not disclosed. - Costs of obtaining a contract that would be amortized within one year or less are immediately expensed STANDARD DESCRIPTION IMPACT IFRS 9 – Financial Instruments Sets out the requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy and sell non-financial items. The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity’s own credit risk relating to financial liabilities and modifies the hedge accounting model to better link the economics of risk management with its accounting treatment. Additional disclosures are also required under the new standard. We applied IFRS 9 - Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRSs retrospectively, except for the changes to hedge accounting described below which are applied prospectively. In accordance with the transition requirements, comparative periods have not been restated. The adoption of IFRS 9 did not have a significant impact on the carrying amounts of our financial instruments as at January 1, 2018. As a result of the adoption of IFRS 9, our January 1, 2018 deficit increased by $4 million. IFRS 9 replaces the classification and measurement models in IAS 39 - Financial Instruments: Recognition and Measurement, with a single model under which financial assets are classified and measured at amortized cost, FVOCI or fair value through profit or loss (FVTPL). This classification is based on the business model in which a financial asset is managed and its contractual cash flow characteristics and eliminates the IAS 39 categories of held-to-maturity, loans and receivables and available-for-sale. The adoption of IFRS 9 did not, however, change the measurement bases of our financial assets. - Cash and cash equivalents and trade and other receivables continue to be measured at amortized cost under IFRS 9 - Derivatives measured at FVTPL under IAS 39 continue to be measured as such under IFRS 9; derivatives that qualify for hedge accounting continue to be measured at fair value under IFRS 9, with changes in fair value recognized in Other comprehensive income (loss) - Portfolio investments in equity securities measured at FVOCI under IAS 39 continue to be measured as such under IFRS 9 The impairment of financial assets under IFRS 9 is based on an ECL model, as opposed to the incurred loss model in IAS 39. IFRS 9 applies to financial assets measured at amortized cost and contract assets and requires that we consider factors that include historical, current and forward-looking information when measuring the ECL. We use the simplified approach for measuring losses based on the lifetime ECL for trade receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statement. We have adopted the general hedge accounting model in IFRS 9 which requires that we ensure hedge accounting relationships are consistent with our risk management objectives and strategies. We also apply a more qualitative and forward-looking approach in assessing hedge effectiveness as a retrospective assessment is no longer required. - Under IFRS 9, amounts related to cash flow hedges of anticipated purchases of non-financial assets settled during the period are reclassified from Accumulated other comprehensive (loss) income to the initial cost of the non-financial asset when it is recognized. Under IAS 39, such amounts were reclassified from Other comprehensive income (loss). Amounts related to cash flow hedges of other anticipated purchases continue to be reclassified from Other comprehensive income (loss) to net earnings under IFRS 9. Amendments to IFRS 2 – Share-based Payment Clarifies the classification and measurement of cash-settled share-based payment transactions that include a performance condition, share-based payment transactions with a net settlement feature for withholding tax obligations, and modifications of a share-based payment transaction from cash-settled to equity-settled. The amendments to IFRS 2 did not have a significant impact on our financial statements. |
Disclosure of future changes to accounting standards | The following new or amended standards and interpretation issued by the IASB have an effective date after December 31, 2018 and have not yet been adopted by BCE. STANDARD DESCRIPTION IMPACT EFFECTIVE DATE IFRS 16 – Leases Eliminates the distinction between operating and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments. A depreciation charge for the lease asset is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs. IFRS 16 does not substantially change lease accounting for lessors. We continue to make progress towards adoption of IFRS 16 according to our detailed implementation plan. Changes and enhancements to our existing information technology (IT) systems, business processes, and systems of internal control are being completed. We will adopt IFRS 16 on January 1, 2019, using a modified retrospective approach whereby the financial statements of prior periods presented are not restated. The cumulative effect of the initial adoption of IFRS 16 will be reflected as an adjustment to the deficit at January 1, 2019. We will recognize lease liabilities at January 1, 2019 for leases previously classified as operating leases, the present value of which will be measured using the discount rate at that date. Corresponding right-of-use assets will also be recognized at January 1, 2019. As permitted by IFRS 16, we have elected not to recognize lease liabilities and right-of-use assets for short-term leases and will apply certain practical expedients to facilitate the initial adoption and ongoing application of IFRS 16, most notably: - We will not separate non-lease components from lease components for certain classes of underlying assets. Each lease component and any associated non-lease components will be accounted for as a single lease component. While our testing and data validation process is ongoing, we expect the adoption of IFRS 16 to result in an increase in our right-of-use assets and a corresponding increase in our lease liabilities within the range of $2.1 billion to $2.3 billion and an increase to our net debt leverage ratio. For the definition of our net debt leverage ratio see Note 26, Financial and capital management. Annual periods beginning on or after January 1, 2019, using a modified retrospective approach. International Financial Reporting Interpretations Committee (IFRIC) 23 – Uncertainty over Income Tax Treatments Clarifies the application of recognition and measurement requirements in IAS 12 - Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the assumptions an entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and circumstances. IFRIC 23 will not have a significant impact on our financial statements. Annual periods beginning on or after January 1, 2019, using a full retrospective approach. Amendments to IFRS 3 - Business Combinations These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition. The amendments to IFRS 3 - Business Combinations may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill. Prospectively for acquisitions occurring on or after January 1, 2020, with early adoption permitted. |
Business acquisitions and dis_2
Business acquisitions and dispositions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations1 [Abstract] | |
Summary of fair value of consideration paid and fair value assigned to each major class of assets and liabilities | The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. Total Cash consideration 1,339 Issuance of 27.6 million BCE common shares (1) 1,594 Total cost to be allocated 2,933 Trade and other receivables 91 Other non-cash working capital (6) (121 ) Assets held for sale (2) 302 Property, plant and equipment 978 Finite-life intangible assets (3) (6) 929 Indefinite-life intangible assets (4) 280 Deferred tax assets 32 Other non-current assets (6) 137 Debt due within one year (251 ) Long-term debt (721 ) Other non-current liabilities (6) (50 ) 1,606 Cash and cash equivalents (16 ) Fair value of net assets acquired 1,590 Goodwill (5) 1,343 (1) Recorded at fair value based on the market price of BCE common shares on the acquisition date. (2) Consists of finite-life and indefinite-life intangible assets recorded at fair value less costs to sell. (3) Consists mainly of customer relationships. (4) Indefinite-life intangible assets of $228 million and $52 million were allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively. (5) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. Goodwill arising from the transaction of $677 million and $666 million was allocated to our Bell Wireless and Bell Wireline groups of CGUs, respectively. ( 6) Reflects the impact of the retrospective adoption of IFRS 15 on January 1, 2018. See Note 34, Adoption of IFRS 15, for additional details. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 161 Total cost to be allocated 161 Trade and other receivables 11 Other non-cash working capital (4 ) Property, plant and equipment 13 Finite-life intangible assets 6 Indefinite-life intangible assets 76 Deferred tax liabilities (20 ) Other non-current liabilities (1 ) 81 Cash and cash equivalents 1 Fair value of net assets acquired 82 Goodwill (1) 79 ( 1) Goodwill arises principally from the assembled workforce, expected synergies and future growth. Goodwill is not deductible for tax purposes. The goodwill arising from the transaction was allocated to our Bell Media group of CGUs. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 181 Issuance of 22,531 BCE common shares (1) 1 Total cost to be allocated 182 Assets held for sale (2) 68 Other non-cash working capital (5 ) Property, plant and equipment 8 Finite-life intangible assets (3) 34 Indefinite-life intangible assets 1 Other non-current assets 1 Deferred tax liabilities (7 ) 100 Cash and cash equivalents 4 Fair value of net assets acquired 104 Goodwill (4) 78 (1) Recorded at fair value based on the market price of BCE common shares on the acquisition date. (2) Consists mainly of customer relationships recorded at fair value less costs to sell. (3) Consists mainly of customer relationships. (4) Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs. The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities. TOTAL Cash consideration 155 Total cost to be allocated 155 Trade and other receivables 6 Other non-cash working capital (9 ) Property, plant and equipment 64 Finite-life intangible assets 19 Other non-current liabilities (8 ) 72 Cash and cash equivalents 3 Fair value of net assets acquired 75 Goodwill (1) 80 (1) Goodwill arises principally from expected synergies and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs. |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
Segmented information | Segmented information FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE BELL WIRELESS BELL WIRELINE BELL MEDIA INTER- SEGMENT ELIMINA- TIONS BCE Operating revenues External customers 8,372 12,419 2,677 — 23,468 Inter-segment 50 243 444 (737 ) — Total operating revenues 8,422 12,662 3,121 (737 ) 23,468 Operating costs 5 (4,856 ) (7,386 ) (2,428 ) 737 (13,933 ) Segment profit (1) 3,566 5,276 693 — 9,535 Severance, acquisition and other costs 6 (136 ) Depreciation and amortization 15, 16 (4,014 ) Finance costs Interest expense 7 (1,000 ) Interest on post-employment benefit obligations 24 (69 ) Other expense 8 (348 ) Income taxes 9 (995 ) Net earnings 2,973 Goodwill 19 3,048 4,679 2,931 — 10,658 Indefinite-life intangible assets 16 3,948 1,692 2,467 — 8,107 Capital expenditures 656 3,201 114 — 3,971 (1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs. FOR THE YEAR ENDED DECEMBER 31, 2017 NOTE BELL WIRELESS BELL WIRELINE BELL MEDIA INTER- SEGMENT ELIMINA- TIONS BCE Operating revenues External customers 7,881 12,200 2,676 — 22,757 Inter-segment 45 200 428 (673 ) — Total operating revenues 7,926 12,400 3,104 (673 ) 22,757 Operating costs 5 (4,550 ) (7,210 ) (2,388 ) 673 (13,475 ) Segment profit (1) 3,376 5,190 716 — 9,282 Severance, acquisition and other costs 6 (190 ) Depreciation and amortization 15, 16 (3,844 ) Finance costs Interest expense 7 (955 ) Interest on post-employment benefit obligations 24 (72 ) Other expense 8 (102 ) Income taxes 9 (1,069 ) Net earnings 3,050 Goodwill 19 3,032 4,497 2,899 — 10,428 Indefinite-life intangible assets 16 3,891 1,692 2,645 — 8,228 Capital expenditures 731 3,174 129 — 4,034 (1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs. |
Revenues by services and products | The following table presents our revenues disaggregated by type of services and products. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Services (1) Wireless 6,258 6,048 Data 7,466 7,192 Voice 3,793 3,968 Media 2,677 2,676 Other services 247 211 Total services 20,441 20,095 Products (2) Wireless 2,114 1,833 Data 466 410 Equipment and other 447 419 Total products 3,027 2,662 Total operating revenues 23,468 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of operating costs | FOR THE YEAR ENDED DECEMBER 31 NOTE 2018 2017 Labour costs Wages, salaries and related taxes and benefits (4,274 ) (4,156 ) Post-employment benefit plans service cost (net of capitalized amounts) 24 (266 ) (242 ) Other labour costs (1) (1,043 ) (1,056 ) Less: Capitalized labour 1,093 1,043 Total labour costs (4,490 ) (4,411 ) Cost of revenues (2) (7,360 ) (7,014 ) Other operating costs (3) (2,083 ) (2,050 ) Total operating costs (13,933 ) (13,475 ) (1) Other labour costs include contractor and outsourcing costs. (2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers. (3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent. |
Severance, acquisition and ot_2
Severance, acquisition and other costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of severance, acquisition and other costs | FOR THE YEAR ENDED DECEMBER 31 2018 2017 Severance (92 ) (79 ) Acquisition and other (44 ) (111 ) Total severance, acquisition and other costs (136 ) (190 ) |
Interest expense (Tables)
Interest expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowing costs [abstract] | |
Disclosure of interest expense | FOR THE YEAR ENDED DECEMBER 31 2018 2017 Interest expense on long-term debt (918 ) (898 ) Interest expense on other debt (133 ) (101 ) Capitalized interest 51 44 Total interest expense (1,000 ) (955 ) |
Other expense (Tables)
Other expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Schedule of other expense | FOR THE YEAR ENDED DECEMBER 31 NOTE 2018 2017 Impairment of assets 15, 16 (200 ) (82 ) Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans (1) (80 ) 76 Equity losses from investments in associates and joint ventures 17 Loss on investment (20 ) (22 ) Operations (15 ) (9 ) Loss on investments (34 ) (5 ) Early debt redemption costs 22 (20 ) (20 ) Gains (losses) on retirements and disposals of property, plant and equipment and intangible assets 11 (47 ) Other (1) 10 7 Total other expense (348 ) (102 ) (1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period. |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Significant components of income taxes deducted from net earnings | The following table shows the significant components of income taxes deducted from net earnings. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Current taxes Current taxes (775 ) (758 ) Uncertain tax positions 8 (9 ) Change in estimate relating to prior periods 12 40 Deferred taxes Deferred taxes relating to the origination and reversal of temporary differences (352 ) (71 ) Change in estimate relating to prior periods 8 11 Recognition and utilization of loss carryforwards 44 (304 ) Effect of change in provincial corporate tax rate — (3 ) Resolution of uncertain tax positions 60 25 Total income taxes (995 ) (1,069 ) |
Reconciliation of reported income taxes in the income statement | The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.0% and 27.1% for 2018 and 2017, respectively. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Net earnings 2,973 3,050 Add back income taxes 995 1,069 Earnings before income taxes 3,968 4,119 Applicable statutory tax rate 27.0 % 27.1 % Income taxes computed at applicable statutory rates (1,071 ) (1,116 ) Non-taxable portion of losses on investments (9 ) (1 ) Uncertain tax positions 68 16 Effect of change in provincial corporate tax rate — (3 ) Change in estimate relating to prior periods 20 51 Non-taxable portion of equity losses (10 ) (10 ) Other 7 (6 ) Total income taxes (995 ) (1,069 ) Average effective tax rate 25.1 % 25.9 % |
Disclosure of current and deferred taxes | The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements. FOR THE YEAR ENDED DECEMBER 31 2018 2017 OTHER COMPREHENSIVE INCOME DEFICIT OTHER COMPREHENSIVE LOSS DEFICIT Current taxes 41 5 10 9 Deferred taxes (104 ) (11 ) 103 2 Total income taxes (expense) recovery (63 ) (6 ) 113 11 |
Deferred taxes resulting from temporary differences | The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards. NET DEFERRED TAX LIABILITY NOTE NON- CAPITAL LOSS CARRY- FORWARDS POST EMPLOYMENT BENEFIT PLANS INDEFINITE- LIFE INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS INVESTMENT TAX CREDITS CRTC TANGIBLE BENEFITS OTHER TOTAL January 1, 2017 21 454 (1,680 ) (1,198 ) (9 ) 44 (128 ) (2,496 ) Income statement (304 ) (31 ) (8 ) 10 7 (14 ) (2 ) (342 ) Business acquisitions 3 300 (11 ) (73 ) (209 ) (5 ) — 10 12 Other comprehensive income — 82 — — — — 21 103 Deficit — — — — — — 2 2 Other — — — (3 ) — — (2 ) (5 ) December 31, 2017 17 494 (1,761 ) (1,400 ) (7 ) 30 (99 ) (2,726 ) Income statement 109 (14 ) (2 ) (248 ) 3 (14 ) (74 ) (240 ) Business acquisitions 3 — — (16 ) — — 1 (12 ) Other comprehensive income — (65 ) — — — — (39 ) (104 ) Deficit — — — — — — (11 ) (11 ) Other — — — 15 — — 27 42 December 31, 2018 129 415 (1,763 ) (1,649 ) (4 ) 16 (195 ) (3,051 ) |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
Schedule of components used in calculation of basic and diluted earnings per share | The following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to common shareholders. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Net earnings attributable to common shareholders - basic 2,785 2,866 Dividends declared per common share (in dollars) 3.02 2.87 Weighted average number of common shares outstanding (in millions) Weighted average number of common shares outstanding - basic 898.6 894.3 Assumed exercise of stock options (1) 0.3 0.6 Weighted average number of common shares outstanding - diluted (in millions) 898.9 894.9 (1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 12,252,594 in 2018 and 3,031,125 in 2017. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade and other receivables | AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Trade receivables (1) 3,026 3,135 2,973 Allowance for doubtful accounts 26 (51 ) (54 ) (60 ) Allowance for revenue adjustments (106 ) (84 ) (83 ) Current tax receivable 14 31 35 Other accounts receivable 123 101 123 Total trade and other receivables 3,006 3,129 2,988 (1) The details of securitized trade receivables are set out in Note 21 , Debt due within one year . |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories [Abstract] | |
Schedule of Inventory | AS AT December 31, 2018 December 31, 2017 January 1, 2017 Wireless devices and accessories 202 179 179 Merchandise and other 230 201 224 Total inventory 432 380 403 |
Contracts assets and liabilit_2
Contracts assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Contract assets and contract liabilities | The table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances . Contract Assets (1) Contract liabilities FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 Opening balance, January 1 1,263 1,121 894 848 Revenue recognized included in contract liabilities at the beginning of the year — — (625 ) (634 ) Revenue recognized from contract liabilities included in contract assets at the beginning of the year 154 139 — — Increase in contract liabilities during the year — — 628 658 Increase in contract liabilities included in contract assets during the year (168 ) (144 ) — — Increase in contract assets from revenue recognized during the year 1,770 1,483 — — Contract assets transferred to trade receivables (1,321 ) (1,172 ) — — Acquisitions — 50 13 29 Contract terminations transferred to trade receivables (219 ) (207 ) (4 ) (2 ) Other 14 (7 ) (7 ) (5 ) Ending balance, December 31 1,493 1,263 899 894 (1) Net of allowance for doubtful accounts of $91 million , $96 million and $92 million at December 31,2018, December 31, 2017 and January 1, 2017, respectively. See Note 26 , Financial and capital management , for additional details. |
Contract costs (Tables)
Contract costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Contract costs | The table below provides a reconciliation of the contract costs balance . FOR THE YEAR ENDED DECEMBER 31 2018 2017 Opening balance, January 1 636 618 Incremental costs of obtaining a contract and contract fulfillment costs 567 526 Amortization included in operating costs (477 ) (508 ) Impairment charges included in operating costs (19 ) — Ending balance, December 31 707 636 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2018 61,484 5,961 1,774 69,219 Additions 2,699 72 1,437 4,208 Acquisition through business combinations 144 49 — 193 Transfers 898 43 (1,447 ) (506 ) Retirements and disposals (969 ) (54 ) — (1,023 ) Impairment losses recognized in earnings 8 (8 ) — — (8 ) December 31, 2018 64,248 6,071 1,764 72,083 ACCUMULATED DEPRECIATION January 1, 2018 41,949 3,241 — 45,190 Depreciation 2,923 222 — 3,145 Retirements and disposals (931 ) (52 ) — (983 ) Other (107 ) (6 ) — (113 ) December 31, 2018 43,834 3,405 — 47,239 NET CARRYING AMOUNT January 1, 2018 19,535 2,720 1,774 24,029 December 31, 2018 20,414 2,666 1,764 24,844 (1) Includes assets under finance leases. FOR THE YEAR ENDED DECEMBER 31, 2017 NETWORK INFRASTRUCTURE AND EQUIPMENT LAND AND BUILDINGS ASSETS UNDER CONSTRUCTION TOTAL (1) COST January 1, 2017 58,670 5,572 1,374 65,616 Additions 2,491 70 1,587 4,148 Acquisition through business combinations 653 264 76 993 Transfers 775 77 (1,263 ) (411 ) Retirements and disposals (1,105 ) (22 ) — (1,127 ) December 31, 2017 61,484 5,961 1,774 69,219 ACCUMULATED DEPRECIATION January 1, 2017 40,228 3,047 — 43,275 Depreciation 2,813 221 — 3,034 Retirements and disposals (1,054 ) (19 ) — (1,073 ) Other (38 ) (8 ) — (46 ) December 31, 2017 41,949 3,241 — 45,190 NET CARRYING AMOUNT January 1, 2017 18,442 2,525 1,374 22,341 December 31, 2017 19,535 2,720 1,774 24,029 (1) Includes assets under finance leases . Finance leases |
Additions to and net carrying amount of assets under finance leases | The following table shows additions to and the net carrying amount of assets under finance leases. FOR THE YEAR ENDED DECEMBER 31 ADDITIONS NET CARRYING AMOUNT 2018 2017 2018 2017 Network infrastructure and equipment 405 334 1,487 1,435 Land and buildings 1 2 460 467 Total 406 336 1,947 1,902 |
Reconciliation of minimum future lease payments | The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations. AT DECEMBER 31, 2018 NOTE 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Minimum future lease payments 26 586 513 344 276 238 667 2,624 Less: Future finance costs (120 ) (101 ) (83 ) (66 ) (49 ) (108 ) (527 ) Present value of future lease obligations 466 412 261 210 189 559 2,097 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets | ESTIMATED USEFUL LIFE Property, plant and equipment Network infrastructure and equipment 2 to 40 years Buildings 5 to 50 years Finite-life intangible assets Software 2 to 12 years Customer relationships 3 to 26 years Program and feature film rights Up to 5 years FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2018 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2018 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 Additions 362 13 967 106 1,448 — 56 — 56 1,504 Acquired through business combinations 9 51 — 1 61 1 — 5 6 67 Transfers 506 — — 4 510 (4 ) — — (4 ) 506 Retirements and disposals (41 ) — — (4 ) (45 ) — (1 ) — (1 ) (46 ) Impairment losses recognized in earnings 8 — — (14 ) — (14 ) (31 ) (2 ) (145 ) (178 ) (192 ) Amortization included in operating costs — — (990 ) — (990 ) — — — — (990 ) December 31, 2018 9,525 2,014 704 500 12,743 2,409 3,587 2,111 8,107 20,850 ACCUMULATED AMORTIZATION January 1, 2018 5,976 612 — 155 6,743 — — — — 6,743 Amortization 707 115 — 47 869 — — — — 869 Retirements and disposals (39 ) — — (4 ) (43 ) — — — — (43 ) Other 76 — — — 76 — — — — 76 December 31, 2018 6,720 727 — 198 7,645 — — — — 7,645 NET CARRYING AMOUNT January 1, 2018 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 December 31, 2018 2,805 1,287 704 302 5,098 2,409 3,587 2,111 8,107 13,205 FINITE-LIFE INDEFINITE-LIFE FOR THE YEAR ENDED DECEMBER 31, 2017 NOTE SOFTWARE CUSTOMER RELATION- SHIPS PROGRAM AND FEATURE FILM RIGHTS OTHER TOTAL BRANDS SPECTRUM AND OTHER LICENCES BROADCAST LICENCES TOTAL TOTAL INTANGIBLE ASSETS COST January 1, 2017 7,861 1,159 682 350 10,052 2,333 3,288 2,322 7,943 17,995 Additions 344 31 1,009 7 1,391 — — — — 1,391 Acquired through business combinations 98 780 — 103 981 110 246 — 356 1,337 Transfers 407 — — — 407 — — (1 ) (1 ) 406 Retirements and disposals (21 ) (20 ) — (55 ) (96 ) — — — — (96 ) Impairment losses recognized in earnings 8 — — — (12 ) (12 ) — — (70 ) (70 ) (82 ) Amortization included in operating costs — — (950 ) — (950 ) — — — — (950 ) December 31, 2017 8,689 1,950 741 393 11,773 2,443 3,534 2,251 8,228 20,001 ACCUMULATED AMORTIZATION January 1, 2017 5,316 513 — 168 5,997 — — — — 5,997 Amortization 672 99 — 39 810 — — — — 810 Retirements and disposals (21 ) — — (52 ) (73 ) — — — — (73 ) Other 9 — — — 9 — — — — 9 December 31, 2017 5,976 612 — 155 6,743 — — — — 6,743 NET CARRYING AMOUNT January 1, 2017 2,545 646 682 182 4,055 2,333 3,288 2,322 7,943 11,998 December 31, 2017 2,713 1,338 741 238 5,030 2,443 3,534 2,251 8,228 13,258 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interests in Other Entities [Abstract] | |
Disclosure of interests in associates | The following tables provide summarized financial information with respect to BCE’s associates and joint ventures. For more details on our associates and joint ventures see Note 32 , Related party transactions . Statements of financial position AS AT December 31, 2018 December 31, 2017 January 1, 2017 Assets 3,819 3,796 3,856 Liabilities (2,253 ) (2,155 ) (2,119 ) Total net assets 1,566 1,641 1,737 BCE’s share of net assets 798 814 852 Income statements For the year ended December 31 NOTE 2018 2017 Revenues 2,128 1,863 Expenses (2,191 ) (1,924 ) Total net losses (63 ) (61 ) BCE’s share of net losses 8 (35 ) (31 ) |
Disclosure of interests in joint arrangements | The following tables provide summarized financial information with respect to BCE’s associates and joint ventures. For more details on our associates and joint ventures see Note 32 , Related party transactions . Statements of financial position AS AT December 31, 2018 December 31, 2017 January 1, 2017 Assets 3,819 3,796 3,856 Liabilities (2,253 ) (2,155 ) (2,119 ) Total net assets 1,566 1,641 1,737 BCE’s share of net assets 798 814 852 Income statements For the year ended December 31 NOTE 2018 2017 Revenues 2,128 1,863 Expenses (2,191 ) (1,924 ) Total net losses (63 ) (61 ) BCE’s share of net losses 8 (35 ) (31 ) |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other non-current assets | AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Net assets of post-employment benefit plans 24 331 262 403 Investments (1) 114 106 88 Publicly-traded and privately-held investments 26 110 103 103 Long-term notes and other receivables 89 101 64 Derivative assets 26 68 51 126 Other 135 134 113 Total other non-current assets 847 757 897 (1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Changes in Carrying Amounts of Goodwill | The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2018 and 2017. BCE’s groups of CGUs correspond to our reporting segments. BELL WIRELESS BELL WIRELINE BELL MEDIA BCE Balance at January 1, 2017 2,304 3,831 2,823 8,958 Acquisitions and other 728 666 76 1,470 Balance at December 31, 2017 3,032 4,497 2,899 10,428 Acquisitions and other 16 182 32 230 Balance at December 31, 2018 3,048 4,679 2,931 10,658 |
Key Assumptions Used to Estimate the Recoverable Amounts | The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs. ASSUMPTIONS USED PERPETUITY DISCOUNT GROUPS OF CGUs GROWTH RATE RATE Bell Wireless 0.8 % 9.1 % Bell Wireline 1.0 % 6.0 % Bell Media 1.0 % 8.5 % |
Trade payables and other liab_2
Trade payables and other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of trade payables and other liabilities | AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Trade payables and accruals 2,535 2,448 2,319 Compensation payable 589 560 531 Taxes payable 129 150 137 Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1) 26 135 135 135 Derivative liabilities 26 27 96 18 CRTC tangible benefits obligation 26 38 38 51 Provisions 23 66 55 39 Severance and other costs payable 63 29 30 CRTC deferral account obligation 26 16 28 32 Other current liabilities 343 336 379 Total trade payables and other liabilities 3,941 3,875 3,671 (1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. |
Debt due within one year (Table
Debt due within one year (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Schedule of Debt Due Within One Year | NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 December 31, 2018 December 31, 2017 January 1, 2017 Notes payable (1) 26 2.82 % 3,201 3,151 2,649 Loans secured by trade receivables 26 2.83 % 919 921 931 Long-term debt due within one year (2) 5.16 % 525 1,106 835 Unsecured committed term credit facility (3) — — 479 Net unamortized discount — — (1 ) Unamortized debt issuance costs — — (6 ) Total long-term debt due within one year 22 525 1,106 1,307 Total debt due within one year 4,645 5,178 4,887 (1) Includes commercial paper of $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars) , $2,484 million in U.S. dollars ( $3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ( $2,612 million in Canadian dollars) as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 26 , Financial and capital management, for additional details. (2) Included in long-term debt due within one year is the current portion of finance leases of $466 million , $445 million and $435 million as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars (approximately $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Securitized trade receivables NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 MATURITY December 31, 2018 December 31, 2017 January 1, 2017 Debt securities 1997 trust indenture 3.85 % 2020-2047 14,750 14,950 13,600 1976 trust indenture 9.54 % 2021-2054 1,100 1,100 1,100 2011 trust indenture (1) 4.00 % 2024 225 425 — 2001 trust indenture (1) — 200 — 2016 U.S. trust indenture (2) 4.46 % 2048 1,569 — — 1996 trust indenture (subordinated) 8.21 % 2026-2031 275 275 275 Finance leases 15 6.67 % 2019-2047 2,097 2,172 2,260 Unsecured committed term credit facility (3) — — 479 Other 308 195 188 Total debt 20,324 19,317 17,902 Net unamortized premium 21 50 18 Unamortized debt issuance costs (60 ) (46 ) (41 ) Less: Amount due within one year 21 (525 ) (1,106 ) (1,307 ) Total long-term debt 19,760 18,215 16,572 (1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures. The 2001 trust indenture was closed following the redemption in October 2018 of the remaining outstanding notes under such trust indenture. (2) In 2018, Bell Canada issued notes under the 2016 U.S. trust indenture for an aggregate amount of $1,150 million in U.S. dollars ( $1,493 million in Canadian dollars), which have been hedged for foreign currency fluctuations through cross currency basis swaps. See Note 26 , Financial and capital management , for additional details. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars ( $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. |
Details of Securitized Trade Receivables | The following table provides further details on our securitized trade receivables programs. December 31, 2018 December 31, 2017 January 1, 2017 Average interest rate throughout the year 2.41 % 1.74 % 1.51 % Securitized trade receivables 1,998 1,867 1,904 |
Summary of Total Bank Credit Facilities | The table below is a summary of our total bank credit facilities at December 31, 2018. TOTAL AVAILABLE DRAWN LETTERS OF CREDIT COMMERCIAL PAPER OUTSTANDING NET AVAILABLE Committed credit facilities Unsecured revolving credit and expansion facilities (1)(2) 4,000 — — 3,156 844 Other 134 — 107 — 27 Total committed credit facilities 4,134 — 107 3,156 871 Total non-committed credit facilities 3,014 — 1,964 — 1,050 Total committed and non-committed credit facilities 7,148 — 2,071 3,156 1,921 (1) Bell Canada’s $2.5 billion and additional $500 million revolving credit facilities expire in November 2023 and November 2019, respectively, and its $1 billion committed expansion credit facility expires in November 2021. Bell Canada has the option, subject to certain conditions, to convert advances outstanding under the additional $500 million revolving credit facility into a term loan with a maximum one -year term. (2) As of December 31, 2018, Bell Canada’s outstanding commercial paper included $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding is included in debt due within one year. |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Summary of Long-Term Debt | NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 December 31, 2018 December 31, 2017 January 1, 2017 Notes payable (1) 26 2.82 % 3,201 3,151 2,649 Loans secured by trade receivables 26 2.83 % 919 921 931 Long-term debt due within one year (2) 5.16 % 525 1,106 835 Unsecured committed term credit facility (3) — — 479 Net unamortized discount — — (1 ) Unamortized debt issuance costs — — (6 ) Total long-term debt due within one year 22 525 1,106 1,307 Total debt due within one year 4,645 5,178 4,887 (1) Includes commercial paper of $2,314 million in U.S. dollars ( $3,156 million in Canadian dollars) , $2,484 million in U.S. dollars ( $3,116 million in Canadian dollars) and $1,945 million in U.S. dollars ( $2,612 million in Canadian dollars) as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts. See Note 26 , Financial and capital management, for additional details. (2) Included in long-term debt due within one year is the current portion of finance leases of $466 million , $445 million and $435 million as at December 31, 2018, December 31, 2017 and January 1, 2017, respectively. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars (approximately $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. Securitized trade receivables NOTE WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 MATURITY December 31, 2018 December 31, 2017 January 1, 2017 Debt securities 1997 trust indenture 3.85 % 2020-2047 14,750 14,950 13,600 1976 trust indenture 9.54 % 2021-2054 1,100 1,100 1,100 2011 trust indenture (1) 4.00 % 2024 225 425 — 2001 trust indenture (1) — 200 — 2016 U.S. trust indenture (2) 4.46 % 2048 1,569 — — 1996 trust indenture (subordinated) 8.21 % 2026-2031 275 275 275 Finance leases 15 6.67 % 2019-2047 2,097 2,172 2,260 Unsecured committed term credit facility (3) — — 479 Other 308 195 188 Total debt 20,324 19,317 17,902 Net unamortized premium 21 50 18 Unamortized debt issuance costs (60 ) (46 ) (41 ) Less: Amount due within one year 21 (525 ) (1,106 ) (1,307 ) Total long-term debt 19,760 18,215 16,572 (1) As part of the acquisition of MTS, on March 17, 2017, Bell Canada assumed all of MTS’ debt issued under its 2001 and 2011 trust indentures. The 2001 trust indenture was closed following the redemption in October 2018 of the remaining outstanding notes under such trust indenture. (2) In 2018, Bell Canada issued notes under the 2016 U.S. trust indenture for an aggregate amount of $1,150 million in U.S. dollars ( $1,493 million in Canadian dollars), which have been hedged for foreign currency fluctuations through cross currency basis swaps. See Note 26 , Financial and capital management , for additional details. (3) In 2017, Bell Canada repaid $357 million in U.S. dollars ( $480 million in Canadian dollars) representing all of the borrowings outstanding under its unsecured committed term credit facility. Accordingly, this credit facility was closed and the cross currency basis swap which was used to hedge the U.S. currency exposure under such credit facility was settled. See Note 26 , Financial and capital management, for additional details. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of other provisions | FOR THE YEAR ENDED DECEMBER 31 NOTE AROs Other (1) Total January 1, 2018 170 158 328 Additions 38 47 85 Usage (4 ) (29 ) (33 ) Reversals (5 ) (8 ) (13 ) Acquired through business combinations — 4 4 December 31, 2018 199 172 371 Current 20 16 50 66 Non-current 25 183 122 305 December 31, 2018 199 172 371 (1) Other includes environmental, legal, regulatory and vacant space provisions. |
Post-employee benefit plans (Ta
Post-employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits [Abstract] | |
Components of post-employment benefit plans service cost | COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST FOR THE YEAR ENDED DECEMBER 31 2018 2017 DB pension (213 ) (208 ) DC pension (106 ) (102 ) OPEBs (3 ) (6 ) Plan amendment gain on OPEBs and DB pension — 16 Less: Capitalized benefit plans cost 56 58 Total post-employment benefit plans service cost included in operating costs (266 ) (242 ) Other costs recognized in severance, acquisition and other costs (4 ) (10 ) Total post-employment benefit plans service cost (270 ) (252 ) |
Components of post-employment benefit plans financing cost | COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST FOR THE YEAR ENDED DECEMBER 31 2018 2017 DB pension (23 ) (18 ) OPEBs (46 ) (54 ) Total interest on post-employment benefit obligations (69 ) (72 ) |
Defined benefit plans recognized in comprehensive income | The statements of comprehensive income include the following amounts before income taxes. 2018 2017 Cumulative losses recognized directly in equity, January 1 (2,984 ) (2,646 ) Actuarial gains (losses) in other comprehensive income (1) 79 (313 ) Decrease (increase) in the effect of the asset limit (2) 13 (25 ) Cumulative losses recognized directly in equity, December 31 (2,892 ) (2,984 ) (1) The cumulative actuarial losses recognized in the statements of comprehensive income are $3,138 million in 2018. (2) The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $246 million in 2018. |
Components of post-employment benefit (obligations) assets | The following table shows the change in post-employment benefit obligations and the fair value of plan assets. DB PENSION PLANS OPEB PLANS TOTAL 2018 2017 2018 2017 2018 2017 Post-employment benefit obligations, January 1 (24,404 ) (20,853 ) (1,653 ) (1,684 ) (26,057 ) (22,537 ) Current service cost (213 ) (208 ) (3 ) (6 ) (216 ) (214 ) Interest on obligations (864 ) (896 ) (56 ) (65 ) (920 ) (961 ) Actuarial gains (losses) (1) 750 (1,193 ) 163 (28 ) 913 (1,221 ) Net curtailment (losses) gains (4 ) (4 ) — 16 (4 ) 12 Loss on plan transfer — (6 ) — — — (6 ) Benefit payments 1,342 1,320 80 81 1,422 1,401 Employee contributions (11 ) (10 ) — — (11 ) (10 ) Acquisition of MTS — (2,677 ) — (5 ) — (2,682 ) Plan transfer — 122 — — — 122 Other — 1 — 38 — 39 Post-employment benefit obligations, December 31 (23,404 ) (24,404 ) (1,469 ) (1,653 ) (24,873 ) (26,057 ) Fair value of plan assets, January 1 23,945 20,563 299 280 24,244 20,843 Expected return on plan assets (2) 841 878 10 11 851 889 Actuarial (losses) gains (1) (817 ) 896 (17 ) 12 (834 ) 908 Benefit payments (1,342 ) (1,320 ) (80 ) (81 ) (1,422 ) (1,401 ) Employer contributions 433 305 75 77 508 382 Employee contributions 11 10 — — 11 10 Acquisition of MTS — 2,735 — — — 2,735 Plan transfer — (122 ) — — — (122 ) Fair value of plan assets, December 31 23,071 23,945 287 299 23,358 24,244 Plan deficit (333 ) (459 ) (1,182 ) (1,354 ) (1,515 ) (1,813 ) Effect of asset limit (20 ) (33 ) — — (20 ) (33 ) Post-employment benefit liability, December 31 (353 ) (492 ) (1,182 ) (1,354 ) (1,535 ) (1,846 ) Post-employment benefit assets included in other non-current assets 331 262 — — 331 262 Post-employment benefit obligations (684 ) (754 ) (1,182 ) (1,354 ) (1,866 ) (2,108 ) (1) Actuarial gains (losses) include experience (losses) gains of ( $693 million ) in 2018 and $911 million in 2017. (2) The actual return on plan assets was $17 million or 0.2% in 2018 and $1,797 million or 8.2% in 2017. |
Funded status of post-employment benefit plans cost | The following table shows the funded status of our post-employment benefit obligations. FUNDED PARTIALLY FUNDED (1) UNFUNDED (2) TOTAL Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Decem-ber 31, 2018 Decem-ber 31, 2017 January 1, 2017 Present value of post-employment benefit obligations (22,765 ) (23,746 ) (20,249 ) (1,816 ) (1,976 ) (1,995 ) (292 ) (335 ) (293 ) (24,873 ) (26,057 ) (22,537 ) Fair value of plan assets 23,018 23,894 20,520 340 350 323 — — — 23,358 24,244 20,843 Plan surplus (deficit) 253 148 271 (1,476 ) (1,626 ) (1,672 ) (292 ) (335 ) (293 ) (1,515 ) (1,813 ) (1,694 ) (1) The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts. (2) Our unfunded plans consist of OPEBs, which are pay-as-you-go. |
Disclosure of significant assumptions | We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans. DB PENSION PLANS AND OPEB PLANS AS AT December 31, 2018 December 31, 2017 January 1, 2017 Post-employment benefit obligations Discount rate 3.8 % 3.6 % 4.0 % Rate of compensation increase 2.25 % 2.25 % 2.25 % Cost of living indexation rate (1) 1.6 % 1.6 % 1.6 % Life expectancy at age 65 (years) 23.1 23.2 23.1 (1) Cost of living indexation rate is only applicable to DB pension plans. DB PENSION PLANS AND OPEB PLANS For the year ended December 31 2018 2017 Net post-employment benefit plans cost Discount rate 3.7 % 4.2 % Rate of compensation increase 2.25 % 2.25 % Cost of living indexation rate (1) 1.6 % 1.6 % Life expectancy at age 65 (years) 23.2 23.1 (1) Cost of living indexation rate is only applicable to DB pension plans. |
Healthcare cost trend rates and sensitivity analysis | The following table shows the effect of a 1% change in the assumed trend rates in healthcare costs. EFFECT ON POST-EMPLOYMENT BENEFITS – INCREASE/(DECREASE) 1% INCREASE 1% DECREASE Total service and interest cost 5 (3 ) Post-employment benefit obligations 111 (90 ) The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans. IMPACT ON NET POST-EMPLOYMENT BENEFIT PLANS COST FOR 2018 – INCREASE/(DECREASE) IMPACT ON POST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER 31, 2018 – INCREASE/(DECREASE) CHANGE IN ASSUMPTION INCREASE IN ASSUMPTION DECREASE IN ASSUMPTION INCREASE IN ASSUMPTION DECREASE IN ASSUMPTION Discount rate 0.5 % (77 ) 65 (1,605 ) 1,716 Life expectancy at age 65 1 year 35 (34 ) 796 (771 ) |
Post-employment benefit plan assets | The following table shows the target allocations for 2018 and the allocation of our post-employment benefit plan assets at December 31, 2018 and 2017, and at January 1, 2017. WEIGHTED AVERAGE TOTAL PLAN ASSETS FAIR VALUE ASSET CATEGORY 2018 December 31, 2018 December 31, 2017 January 1, 2017 Equity securities 20% - 40% 20 % 22 % 22 % Debt securities 60% - 100% 64 % 65 % 68 % Alternative investments 0% - 40% 16 % 13 % 10 % Total 100 % 100 % 100 % The following table shows the fair value of the DB pension plan assets for each category. AS AT December 31, 2018 December 31, 2017 January 1, 2017 Observable markets data Equity securities Canadian 844 1,045 901 Foreign 3,770 4,349 3,682 Debt securities Canadian 12,457 13,126 12,469 Foreign 2,004 1,890 1,068 Money market 327 491 387 Non-observable markets inputs Alternative investments Private equities 1,804 1,484 1,164 Hedge funds 1,014 965 726 Real estate 758 484 55 Other 93 111 111 Total 23,071 23,945 20,563 |
Disclosure of contributions to post-employment benefit plans | The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneficiaries under OPEB plans. DB PLANS (1) DC PLANS OPEB PLANS FOR THE YEAR ENDED DECEMBER 31 2018 2017 2018 2017 2018 2017 Contributions (433 ) (305 ) (106 ) (108 ) (75 ) (77 ) (1) Includes voluntary contributions of $240 million in 2018 and $100 million in 2017. |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other non-current liabilities | AS AT NOTE December 31, 2018 December 31, 2017 January 1, 2017 Long-term disability benefits obligation 288 322 302 Provisions 23 305 273 273 CRTC deferral account obligation 26 92 96 104 CRTC tangible benefits obligation 26 23 73 115 Other (1) 289 287 274 Total other non-current liabilities 997 1,051 1,068 (1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period. |
Financial and capital managem_2
Financial and capital management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Fair value details of financial instruments measured at amortized cost | The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position. December 31, 2018 December 31, 2017 January 1, 2017 CLASSIFICATION FAIR VALUE METHODOLOGY NOTE CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE CRTC tangible benefits obligation Trade payables and other liabilities and non-current liabilities Present value of estimated future cash flows discounted using observable market interest rates 20, 25 61 61 111 110 166 169 CRTC deferral account obligation Trade payables and other liabilities and non-current liabilities Present value of estimated future cash flows discounted using observable market interest rates 20, 25 108 112 124 128 136 145 Debt securities, finance leases and other debt Debt due within one year and long-term debt Quoted market price of debt or present value of future cash flows discounted using observable market interest rates 21, 22 20,285 21,482 19,321 21,298 17,879 20,093 |
Disclosure of fair value measurement of assets | The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position. FAIR VALUE CLASSIFICATION NOTE CARRYING VALUE OF ASSET (LIABILITY) QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) OBSERVABLE MARKET DATA (LEVEL 2) (1) NON-OBSERVABLE MARKET INPUTS (LEVEL 3) (2) December 31, 2018 Publicly-traded and privately-held investments Other non-current assets 18 110 1 — 109 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 181 — 181 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 43 — 114 (71 ) December 31, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities (48 ) — (48 ) — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 60 — 106 (46 ) January 1, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 166 — 166 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 35 — 88 (53 ) (1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments. (3) Represents BCE’s obligation to repurchase the Master Trust Fund’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. The option has been exercisable since 2017. |
Disclosure of fair value measurement of liabilities | The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position. FAIR VALUE CLASSIFICATION NOTE CARRYING VALUE OF ASSET (LIABILITY) QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) OBSERVABLE MARKET DATA (LEVEL 2) (1) NON-OBSERVABLE MARKET INPUTS (LEVEL 3) (2) December 31, 2018 Publicly-traded and privately-held investments Other non-current assets 18 110 1 — 109 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 181 — 181 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 43 — 114 (71 ) December 31, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities (48 ) — (48 ) — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 60 — 106 (46 ) January 1, 2017 Publicly-traded and privately-held investments Other non-current assets 18 103 1 — 102 Derivative financial instruments Other current assets, trade payables and other liabilities, other non-current assets and liabilities 166 — 166 — MLSE financial liability (3) Trade payables and other liabilities 20 (135 ) — — (135 ) Other Other non-current assets and liabilities 35 — 88 (53 ) (1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments. (3) Represents BCE’s obligation to repurchase the Master Trust Fund’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. The option has been exercisable since 2017. |
Change in allowance for doubtful accounts | The following table provides the change in allowance for doubtful accounts for trade receivables. NOTE 2018 2017 Balance, January 1 (54 ) (60 ) Adoption of IFRS 9 (1) (4 ) — Additions (84 ) (99 ) Usage 91 105 Balance, December 31 11 (51 ) (54 ) (1) We adopted IFRS 9, Financial Instruments , effective January 1, 2018. See Note 2 , Significant accounting policies , for additional details. The following table provides the change in allowance for doubtful accounts for contract assets. NOTE 2018 2017 Balance, January 1 (96 ) (92 ) Additions (50 ) (39 ) Usage 55 35 Balance, December 31 (91 ) (96 ) Current (44 ) (47 ) Non-current (47 ) (49 ) Balance, December 31 13 (91 ) (96 ) |
Details on trade receivables not impaired | The following table provides further details on trade receivables not impaired. AS AT December 31, 2018 December 31, 2017 January 1, 2017 Trade receivables not past due 2,091 2,255 2,192 Trade receivables past due and not impaired Under 60 days 508 491 286 60 to 120 days 304 279 360 Over 120 days 72 56 75 Trade receivables, net of allowance for doubtful accounts 2,975 3,081 2,913 |
Maturity analysis for recognized financial liabilities | The following table is a maturity analysis for recognized financial liabilities at December 31, 2018 for each of the next five years and thereafter. AT DECEMBER 31, 2018 NOTE 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Long-term debt 22 59 1,453 2,275 1,739 1,622 11,079 18,227 Notes payable 21 3,201 — — — — — 3,201 Minimum future lease payments under finance leases 15 586 513 344 276 238 667 2,624 Loan secured by trade receivables 21 919 — — — — — 919 Interest payable on long-term debt, notes payable and loan secured by trade receivables 866 751 709 648 581 6,671 10,226 Net interest receipts on cross currency basis swaps (6 ) (6 ) (6 ) (6 ) (6 ) (134 ) (164 ) MLSE financial liability 20 135 — — — — — 135 Total 5,760 2,711 3,322 2,657 2,435 18,283 35,168 |
Details on outstanding foreign currency forward contracts and cross currency basis swaps | The following table provides further details on our outstanding foreign currency forward contracts as at December 31, 2018 . TYPE OF HEDGE BUY CURRENCY AMOUNT TO RECEIVE SELL CURRENCY AMOUNT TO PAY MATURITY HEDGED ITEM Cash flow USD 2,329 CAD 3,077 2019 Commercial paper Cash flow USD 779 CAD 973 2019 Anticipated transactions Cash flow CAD 15 USD 12 2019 Anticipated transactions Cash flow USD 256 CAD 324 2020-2021 Anticipated transactions Economic USD 120 CAD 153 2019 Anticipated transactions Economic - call options USD 48 CAD 60 2020 Anticipated transactions Economic - put options USD 60 CAD 74 2019-2020 Anticipated transactions |
Summary of key ratios | The following table provides a summary of our key ratios. AT DECEMBER 31 2018 2017 Net debt leverage ratio 2.72 2.67 Adjusted EBITDA to net interest expense ratio 9.00 9.23 (1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define net debt as debt due within one year plus long-term debt and 50% of preferred shares less cash and cash equivalents as shown in our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. (2) Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows and 50% of declared preferred share dividends as shown in our income statements. |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of Principal Terms of Preference Shares and Common Shares | The following table provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2018 . There were no Second Preferred Shares issued and outstanding at December 31, 2018 . BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail. ANNUAL DIVIDEND RATE NUMBER OF SHARES STATED CAPITAL SERIES CONVERTIBLE INTO CONVERSION DATE REDEMPTION DATE REDEMPTION PRICE AUTHORIZED ISSUED AND OUTSTANDING December 31, December 31, January 1, Q floating Series R December 1, 2025 $25.50 8,000,000 — — — — R (1) 4.13 % Series Q December 1, 2020 December 1, 2020 $25.00 8,000,000 8,000,000 200 200 200 S floating Series T November 1, 2021 At any time $25.50 8,000,000 3,513,448 88 88 88 T (1) 3.019 % Series S November 1, 2021 November 1, 2021 $25.00 8,000,000 4,486,552 112 112 112 Y floating Series Z December 1, 2022 At any time $25.50 10,000,000 8,081,491 202 202 219 Z (1) 3.904 % Series Y December 1, 2022 December 1, 2022 $25.00 10,000,000 1,918,509 48 48 31 AA (1) 3.61 % Series AB September 1, 2022 September 1, 2022 $25.00 20,000,000 11,398,396 291 291 259 AB floating Series AA September 1, 2022 At any time $25.50 20,000,000 8,601,604 219 219 251 AC (1) 4.38 % Series AD March 1, 2023 March 1, 2023 $25.00 20,000,000 10,029,691 256 129 129 AD floating Series AC March 1, 2023 At any time $25.50 20,000,000 9,970,309 254 381 381 AE floating Series AF February 1, 2020 At any time $25.50 24,000,000 9,292,133 232 232 232 AF (1) 3.11 % Series AE February 1, 2020 February 1, 2020 $25.00 24,000,000 6,707,867 168 168 168 AG (1) 2.80 % Series AH May 1, 2021 May 1, 2021 $25.00 22,000,000 4,985,351 125 125 125 AH floating Series AG May 1, 2021 At any time $25.50 22,000,000 9,014,649 225 225 225 AI (1) 2.75 % Series AJ August 1, 2021 August 1, 2021 $25.00 22,000,000 5,949,884 149 149 149 AJ floating Series AI August 1, 2021 At any time $25.50 22,000,000 8,050,116 201 201 201 AK (1) 2.954 % Series AL December 31, 2021 December 31, 2021 $25.00 25,000,000 22,745,921 569 569 569 AL (2) floating Series AK December 31, 2021 At any time 25,000,000 2,254,079 56 56 56 AM (1) 2.764 % Series AN March 31, 2021 March 31, 2021 $25.00 30,000,000 9,546,615 218 218 218 AN (2) floating Series AM March 31, 2021 At any time 30,000,000 1,953,385 45 45 45 AO (1) 4.26 % Series AP March 31, 2022 March 31, 2022 $25.00 30,000,000 4,600,000 118 118 118 AP (3) floating Series AO March 31, 2027 30,000,000 — — — — AQ (1) 4.812 % Series AR September 30, 2023 September 30, 2023 $25.00 30,000,000 9,200,000 228 228 228 AR (3) floating Series AQ September 30, 2028 30,000,000 — — — — 4,004 4,004 4,004 (1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date. (2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of First Preferred Shares. (3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2023 respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and September 30, 2028, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of First Preferred Shares. The following table provides details about the outstanding common shares of BCE. 2018 2017 NOTE NUMBER OF SHARES STATED CAPITAL NUMBER OF SHARES STATED CAPITAL Outstanding, January 1 900,996,640 20,091 870,706,332 18,370 Shares issued for the acquisition of AlarmForce 3 22,531 1 — — Shares issued for the acquisition of MTS 3 — — 27,642,714 1,594 Shares issued under employee stock option plan 28 266,941 13 2,555,863 122 Repurchase of common shares (3,085,697 ) (69 ) — — Shares issued under ESP — — 91,731 5 Outstanding, December 31 898,200,415 20,036 900,996,640 20,091 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Payment Arrangements [Abstract] | |
Explanation of effect of share-based payments on entity's profit or loss | The following share-based payment amounts are included in the income statements as operating costs. FOR THE YEAR ENDED DECEMBER 31 2018 2017 ESP (29 ) (28 ) RSUs/PSUs (50 ) (44 ) Other (1) (10 ) (9 ) Total share-based payments (89 ) (81 ) (1) Includes DSP, DSUs and stock options. |
Disclosure of number and weighted average exercise prices of share options | The following table summarizes the status of unvested employer contributions at December 31, 2018 and 2017. NUMBER OF ESP SHARES 2018 2017 Unvested contributions, January 1 1,039,030 1,073,212 Contributions (1) 671,911 610,657 Dividends credited 56,926 49,299 Vested (501,089 ) (553,837 ) Forfeited (146,352 ) (140,301 ) Unvested contributions, December 31 1,120,426 1,039,030 (1) The weighted average fair value of the shares contributed was $55 in 2018 and $60 in 2017. The following table summarizes BCE’s outstanding stock options at December 31, 2018 and 2017. 2018 2017 NOTE NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE ($) NUMBER OF OPTIONS WEIGHTED AVERAGE EXERCISE PRICE ($) Outstanding, January 1 10,490,249 55 10,242,162 52 Granted 3,888,693 56 3,043,448 59 Exercised (1) 27 (266,941 ) 42 (2,555,863 ) 45 Forfeited (39,669 ) 58 (239,498 ) 58 Outstanding, December 31 14,072,332 56 10,490,249 55 Exercisable, December 31 4,399,588 52 2,013,983 45 (1) The weighted average share price for options exercised was $55 in 2018 and $60 in 2017. |
Disclosure of number and weighted average exercise prices of other equity instruments | The following table summarizes the status of outstanding DSUs at December 31, 2018 and 2017. NUMBER OF DSUs 2018 2017 Outstanding, January 1 4,309,528 4,131,229 Issued (1) 94,580 69,742 Settlement of RSUs/PSUs 112,675 101,066 Dividends credited 240,879 203,442 Settled (365,665 ) (195,951 ) Outstanding, December 31 4,391,997 4,309,528 (1) The weighted average fair value of the DSUs issued was $55 in 2018 and $59 in 2017. The following table summarizes outstanding RSUs/PSUs at December 31, 2018 and 2017. NUMBER OF RSUs/PSUs 2018 2017 Outstanding, January 1 2,740,392 2,928,698 Granted (1) 1,006,586 879,626 Dividends credited 149,258 132,402 Settled (1,027,321 ) (1,096,403 ) Forfeited (56,218 ) (103,931 ) Outstanding, December 31 2,812,697 2,740,392 Vested, December 31 (2) 880,903 985,382 (1) The weighted average fair value of the RSUs/PSUs granted was $57 in 2018 and $58 in 2017. (2) The RSUs/PSUs vested on December 31, 2018 were fully settled in February 2019 with BCE common shares and/or DSUs. |
Disclosure of range of exercise prices of outstanding share options | The following table provides additional information about BCE’s stock option plans at December 31, 2018. STOCK OPTIONS OUTSTANDING RANGE OF EXERCISE PRICES NUMBER WEIGHTED AVERAGE REMAINING LIFE (YEARS) WEIGHTED AVERAGE EXERCISE PRICE ($) $40-$49 1,747,042 2 46 $50-$59 12,232,011 5 57 $60 & above 93,279 5 61 14,072,332 4 56 |
Disclosure of indirect measurement of fair value of goods or services received, share options granted during period | The following table shows the principal assumptions used in the valuation. 2018 Weighted average fair value per option granted $2.13 Weighted average share price $57 Weighted average exercise price $56 Dividend yield 5 % Expected volatility 12 % Risk-free interest rate 2 % Expected life (years) 4 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement of cash flows [abstract] | |
Schedule of reconciliation of changes in liabilities arising from financing activities | The following table provides a reconciliation of changes in liabilities arising from financing activities. NOTE DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1) DIVIDENDS PAYABLE OTHER LIABILITIES TOTAL January 1, 2018 23,393 54 678 — 24,125 Cash flows from (used in) financing activities Decrease in notes payable (241 ) 118 — — (123 ) Issue of long-term debt 2,996 — — — 2,996 Repayments of long-term debt (2,713 ) — — — (2,713 ) Cash dividends paid on common and preferred shares — — (2,828 ) — (2,828 ) Cash dividends paid by subsidiaries to non-controlling interests 33 — — (16 ) — (16 ) Other financing activities (42 ) — — (35 ) (77 ) Total cash flows from (used in) financing activities excluding equity — 118 (2,844 ) (35 ) (2,761 ) Non-cash changes arising from Finance lease additions 414 — — — 414 Dividends declared on common and preferred shares — — 2,856 — 2,856 Dividends declared by subsidiaries to non-controlling interests — — 5 — 5 Effect of changes in foreign exchange rates 341 (341 ) — — — Business acquisitions 96 — — — 96 Other 161 — (4 ) 35 192 Total non-cash changes 1,012 (341 ) 2,857 35 3,563 December 31, 2018 24,405 (169 ) 691 — 24,927 (1) Included in Other current assets and Other non-current assets in the statements of financial position. NOTE DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT (1) DIVIDENDS PAYABLE OTHER LIABILITIES TOTAL January 1, 2017 21,459 (31 ) 617 — 22,045 Cash flows from (used in) financing activities Increase in notes payable 452 (119 ) — — 333 Issue of long-term debt 3,011 — — — 3,011 Repayments of long-term debt (2,653 ) — — — (2,653 ) Cash dividends paid on common and preferred shares — — (2,639 ) — (2,639 ) Cash dividends paid by subsidiaries to non-controlling interests 33 — — (34 ) — (34 ) Other financing activities (44 ) 6 — (22 ) (60 ) Total cash flows from (used in) financing activities excluding equity 766 (113 ) (2,673 ) (22 ) (2,042 ) Non-cash changes arising from Finance lease additions 339 — — — 339 Dividends declared on common and preferred shares — — 2,692 — 2,692 Dividends declared by subsidiaries to non-controlling interests — — 45 — 45 Effect of changes in foreign exchange rates (198 ) 198 — — — Business acquisitions 3 972 — — — 972 Other 55 — (3 ) 22 74 Total non-cash changes 1,168 198 2,734 22 4,122 December 31, 2017 23,393 54 678 — 24,125 (1) Included in Other current assets and Trade payables and other liabilities in the statements of financial position. |
Remaining performance obligat_2
Remaining performance obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Remaining performance obligations | The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at December 31, 2018 . 2019 2020 2021 2022 2023 THEREAFTER TOTAL Wireline 1,261 821 512 261 81 80 3,016 Wireless 1,737 781 93 44 33 57 2,745 Total 2,998 1,602 605 305 114 137 5,761 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Contractual obligation, fiscal year maturity schedule | The following table is a summary of our contractual obligations at December 31, 2018 that are due in each of the next five years and thereafter. 2019 2020 2021 2022 2023 THERE- AFTER TOTAL Operating leases 317 286 244 187 142 436 1,612 Commitments for property, plant and equipment and intangible assets 1,029 784 623 484 385 698 4,003 Purchase obligations 618 525 484 434 271 519 2,851 Total 1,964 1,595 1,351 1,105 798 1,653 8,466 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
Summary of significant subsidiaries | The following table shows BCE’s significant subsidiaries at December 31, 2018. BCE has other subsidiaries which have not been included in the table as each represents less than 10% individually and less than 20% in aggregate of total consolidated revenues. All of these significant subsidiaries are incorporated in Canada and provide services to each other in the normal course of operations. The value of these transactions is eliminated on consolidation. OWNERSHIP PERCENTAGE SUBSIDIARY 2018 2017 Bell Canada 100 % 100 % Bell Mobility 100 % 100 % Bell Media 100 % 100 % The following tables show summarized financial information for our subsidiary with significant non-controlling interest (NCI). Summarized statements of financial position CTV SPECIALTY (1) (2) December 31, 2018 December 31, 2017 January 1, 2017 Current assets 337 328 293 Non-current assets 993 1,013 1,013 Total assets 1,330 1,341 1,306 Current liabilities 142 153 130 Non-current liabilities 201 184 195 Total liabilities 343 337 325 Total equity attributable to BCE shareholders 685 700 687 NCI 302 304 294 (1) At December 31, 2018 and 2017 and January 1, 2017, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9% . CTV Specialty was incorporated and operated in Canada as at such dates. (2) CTV Specialty's net assets at December 31, 2018 and 2017 and January 1, 2017, include $10 million , $6 million and $2 million , respectively, directly attributable to NCI. Selected income and cash flow information CTV SPECIALTY (1) FOR THE YEAR ENDED DECEMBER 31 2018 2017 Operating revenues 857 832 Net earnings 131 179 Net earnings attributable to NCI 42 56 Total comprehensive income 149 172 Total comprehensive income attributable to NCI 47 54 Cash dividends paid to NCI 16 34 (1) CTV Specialty's net earnings and total comprehensive income include $4 million directly attributable to NCI for 2018 and $3 million for 2017. |
Compensation of Key Management Personnel | The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2018 and 2017 included in our income statements. Key management personnel include the company’s Chief Executive Officer (CEO), Chief Operating Officer (COO), Group President and the executives who report directly to them. FOR THE YEAR ENDED DECEMBER 31 2018 2017 Wages, salaries, fees and related taxes and benefits (27 ) (23 ) Post-employment benefit plans and OPEBs cost (4 ) (3 ) Share-based compensation (23 ) (23 ) Key management personnel and board of directors compensation expense (54 ) (49 ) |
Significant partly-owned subs_2
Significant partly-owned subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Interest In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | The following table shows BCE’s significant subsidiaries at December 31, 2018. BCE has other subsidiaries which have not been included in the table as each represents less than 10% individually and less than 20% in aggregate of total consolidated revenues. All of these significant subsidiaries are incorporated in Canada and provide services to each other in the normal course of operations. The value of these transactions is eliminated on consolidation. OWNERSHIP PERCENTAGE SUBSIDIARY 2018 2017 Bell Canada 100 % 100 % Bell Mobility 100 % 100 % Bell Media 100 % 100 % The following tables show summarized financial information for our subsidiary with significant non-controlling interest (NCI). Summarized statements of financial position CTV SPECIALTY (1) (2) December 31, 2018 December 31, 2017 January 1, 2017 Current assets 337 328 293 Non-current assets 993 1,013 1,013 Total assets 1,330 1,341 1,306 Current liabilities 142 153 130 Non-current liabilities 201 184 195 Total liabilities 343 337 325 Total equity attributable to BCE shareholders 685 700 687 NCI 302 304 294 (1) At December 31, 2018 and 2017 and January 1, 2017, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9% . CTV Specialty was incorporated and operated in Canada as at such dates. (2) CTV Specialty's net assets at December 31, 2018 and 2017 and January 1, 2017, include $10 million , $6 million and $2 million , respectively, directly attributable to NCI. Selected income and cash flow information CTV SPECIALTY (1) FOR THE YEAR ENDED DECEMBER 31 2018 2017 Operating revenues 857 832 Net earnings 131 179 Net earnings attributable to NCI 42 56 Total comprehensive income 149 172 Total comprehensive income attributable to NCI 47 54 Cash dividends paid to NCI 16 34 (1) CTV Specialty's net earnings and total comprehensive income include $4 million directly attributable to NCI for 2018 and $3 million for 2017. |
Adoption of IFRS 15 (Tables)
Adoption of IFRS 15 (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue From Contract With Customer1 [Abstract] | |
Adoption of new accounting standards | Consolidated income statements The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated income statements. YEAR ENDED DECEMBER 31, 2017 (IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Operating revenues 22,719 38 22,757 Operating costs (13,541 ) 66 (13,475 ) Severance, acquisition and other costs (190 ) — (190 ) Depreciation (3,037 ) 3 (3,034 ) Amortization (813 ) 3 (810 ) Finance costs Interest expense (955 ) — (955 ) Interest on post-employment benefit obligations (72 ) — (72 ) Other expense (102 ) — (102 ) Income taxes (1,039 ) (30 ) (1,069 ) Net earnings 2,970 80 3,050 Net earnings attributable to: Common shareholders 2,786 80 2,866 Preferred shareholders 128 — 128 Non-controlling interest 56 — 56 Net earnings 2,970 80 3,050 Net earnings per common share - basic 3.12 0.08 3.20 Net earnings per common share - diluted 3.11 0.09 3.20 Average number of common shares outstanding - basic (millions) 894.3 — 894.3 Consolidated statement of financial position The table below shows the impacts of adopting IFRS 15 on our previously reported 2017 consolidated statement of financial position. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Reclassifications (1) 2017 upon adoption of IFRS 15 Cash 442 — — 442 Cash equivalents 183 — — 183 Trade and other receivables 3,135 9 (15 ) 3,129 Inventory 380 — — 380 Contract assets — 923 (91 ) 832 Contract costs — 206 144 350 Prepaid expenses 375 — (158 ) 217 Other current assets 124 — (2 ) 122 Total current assets 4,639 1,138 (122 ) 5,655 Contract assets — 400 31 431 Contract costs — 162 124 286 Property, plant and equipment 24,033 (4 ) — 24,029 Intangible assets 13,305 — (47 ) 13,258 Deferred tax assets 144 — — 144 Investments in associates and joint ventures 814 — — 814 Other non-current assets 900 — (143 ) 757 Goodwill 10,428 — — 10,428 Total non-current assets 49,624 558 (35 ) 50,147 Total assets 54,263 1,696 (157 ) 55,802 Trade payables and other liabilities 4,623 — (748 ) 3,875 Contract liabilities — 97 596 693 Interest payable 168 — — 168 Dividends payable 678 — — 678 Current tax liabilities 140 — — 140 Debt due within one year 5,178 — — 5,178 Total current liabilities 10,787 97 (152 ) 10,732 Contract liabilities — 34 167 201 Long-term debt 18,215 — — 18,215 Deferred tax liabilities 2,447 423 — 2,870 Post-employment benefit obligations 2,108 — — 2,108 Other non-current liabilities 1,223 — (172 ) 1,051 Total non-current liabilities 23,993 457 (5 ) 24,445 Total liabilities 34,780 554 (157 ) 35,177 Preferred shares 4,004 — — 4,004 Common shares 20,091 — — 20,091 Contributed surplus 1,162 — — 1,162 Accumulated other comprehensive loss (17 ) — — (17 ) Deficit (6,080 ) 1,142 — (4,938 ) Total equity attributable to BCE shareholders 19,160 1,142 — 20,302 Non- controlling interest 323 — — 323 Total equity 19,483 1,142 — 20,625 Total liabilities and equity 54,263 1,696 (157 ) 55,802 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below shows the impacts of adopting IFRS 15 on our January 1, 2017 consolidated statement of financial position. AS AT January 1, 2017 IFRS 15 impacts Reclassifications (1) January 1, 2017 upon adoption of IFRS 15 Cash 603 — — 603 Cash equivalents 250 — — 250 Trade and other receivables 2,979 11 (2 ) 2,988 Inventory 403 — — 403 Contract assets — 851 (113 ) 738 Contract costs — 195 148 343 Prepaid expenses 420 — (189 ) 231 Other current assets 200 — (2 ) 198 Total current assets 4,855 1,057 (158 ) 5,754 Contract assets — 357 26 383 Contract costs — 151 124 275 Property, plant and equipment 22,346 (5 ) — 22,341 Intangible assets 11,998 — — 11,998 Deferred tax assets 89 — — 89 Investments in associates and joint ventures 852 — — 852 Other non-current assets 1,010 — (113 ) 897 Goodwill 8,958 — — 8,958 Total non-current assets 45,253 503 37 45,793 Total assets 50,108 1,560 (121 ) 51,547 Trade payables and other liabilities 4,326 — (655 ) 3,671 Contract liabilities — 71 574 645 Interest payable 156 — — 156 Dividends payable 617 — — 617 Current tax liabilities 122 — — 122 Debt due within one year 4,887 — — 4,887 Total current liabilities 10,108 71 (81 ) 10,098 Contract liabilities — 34 169 203 Long-term debt 16,572 — — 16,572 Deferred tax liabilities 2,192 393 — 2,585 Post-employment benefit obligations 2,105 — — 2,105 Other non-current liabilities 1,277 — (209 ) 1,068 Total non-current liabilities 22,146 427 (40 ) 22,533 Total liabilities 32,254 498 (121 ) 32,631 Preferred shares 4,004 — — 4,004 Common shares 18,370 — — 18,370 Contributed surplus 1,160 — — 1,160 Accumulated other comprehensive income 46 — — 46 Deficit (6,040 ) 1,062 — (4,978 ) Total equity attributable to BCE shareholders 17,540 1,062 — 18,602 Non- controlling interest 314 — — 314 Total equity 17,854 1,062 — 18,916 Total liabilities and equity 50,108 1,560 (121 ) 51,547 (1) We have reclassified some of the amounts for previous periods to conform with IFRS 15 presentation requirements. The table below provides a reconciliation of our deficit at January 1, 2017 and December 31, 2017 from amounts previously reported in 2017 to the amounts reported under IFRS 15. All amounts are after tax. AT DECEMBER 31, 2017 AT JANUARY 1, 2017 Total deficit as previously reported (6,080 ) (6,040 ) Timing of revenue recognition 873 809 Cost to obtain a contract 269 253 Total deficit upon adoption of IFRS 15 (4,938 ) (4,978 ) Consolidated statement of cash flows The table below shows the impacts of adopting IFRS 15 on select line items of our previously reported 2017 statement of cash flows. YEAR ENDED DECEMBER 31, 2017 2017 as previously reported IFRS 15 impacts 2017 upon adoption of IFRS 15 Cash flows from operating activities Net earnings 2,970 80 3,050 Depreciation and amortization 3,850 (6 ) 3,844 Income taxes 1,039 30 1,069 Net change in operating assets and liabilities 480 (104 ) 376 Cash flows from operating activities 7,358 — 7,358 Revenues by services and products The following table s hows the impacts of adopting IFRS 15 on our revenues disaggregated by type. FOR THE YEAR ENDED DECEMBER 31 2017 as previously reported IFRS 15 impacts Other (3) 2017 upon adoption of IFRS 15 Services (1) Wireless 7,308 (1,260 ) — 6,048 Data 7,146 (5 ) 51 7,192 Voice 3,800 3 165 3,968 Media 2,676 — — 2,676 Other services 213 (2 ) — 211 Total services 21,143 (1,264 ) 216 20,095 Products (2) Wireless 530 1,303 — 1,833 Data 519 1 (110 ) 410 Equipment and other 527 (2 ) (106 ) 419 Total products 1,576 1,302 (216 ) 2,662 Total operating revenues 22,719 38 — 22,757 (1) Our service revenues are generally recognized over time. (2) Our product revenues are generally recognized at a point in time. (3) We have reclassified some of the amounts for previous periods to make them consistent with the presentation for the current period. |
Significant accounting polici_4
Significant accounting policies - Revenue from Contracts with Customers (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Residential customers | Bell Wireless | |
Disclosure of performance obligations [line items] | |
Description of significant payment terms in contracts with customers | For wireless products and services sold in bundled arrangements, customers pay monthly over a contract term of up to 24 months for residential customers and up to 36 months for business customers. |
Business customers | Bell Wireless | |
Disclosure of performance obligations [line items] | |
Description of significant payment terms in contracts with customers | For wireless products and services sold in bundled arrangements, customers pay monthly over a contract term of up to 24 months for residential customers and up to 36 months for business customers. |
Business customers | Wireline | |
Disclosure of performance obligations [line items] | |
Description of significant payment terms in contracts with customers | For wireline customers, products are usually paid in full at the point of sale. Services are paid on a monthly basis except where a billing schedule has been established with certain business customers under long-term contracts that can generally extend up to seven years. |
Significant accounting polici_5
Significant accounting policies - Share-Based Payments (Details) | 12 Months Ended |
Dec. 31, 2018 | |
ESP | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Award vesting period | 2 years |
Significant accounting polici_6
Significant accounting policies - Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Network infrastructure and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
ESTIMATED USEFUL LIFE | 2 years |
Network infrastructure and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
ESTIMATED USEFUL LIFE | 40 years |
Buildings | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
ESTIMATED USEFUL LIFE | 5 years |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
ESTIMATED USEFUL LIFE | 50 years |
Software | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
ESTIMATED USEFUL LIFE | 2 years |
Software | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
ESTIMATED USEFUL LIFE | 12 years |
Customer relationships | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
ESTIMATED USEFUL LIFE | 3 years |
Customer relationships | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
ESTIMATED USEFUL LIFE | 26 years |
Program and feature film rights | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
ESTIMATED USEFUL LIFE | 5 years |
Significant accounting polici_7
Significant accounting policies - Post-Employment Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |
Actuarial valuation, frequency period | 3 years |
DB pension | |
Disclosure of defined benefit plans [line items] | |
Highest paid consecutive period of service | 5 years |
Significant accounting polici_8
Significant accounting policies - Adoption of New or Amended Accounting Standards (Details) $ in Millions | Jan. 01, 2018CAD ($) |
IFRS 9 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Increase in deficit | $ 4 |
Significant accounting polici_9
Significant accounting policies - Future Changes to Accounting Standards (Details) - IFRS 16 - Adjustments for new IFRSs $ in Billions | Jan. 01, 2019CAD ($) |
Bottom of range | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Right-of-use assets | $ 2.1 |
Lease liabilities | 2.1 |
Top of range | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Right-of-use assets | 2.3 |
Lease liabilities | $ 2.3 |
Business acquisitions and dis_3
Business acquisitions and dispositions - Acquisition of Axis NetMedia Corporation (Details) - Axia km in Thousands, $ in Millions | Aug. 31, 2018CAD ($)km |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | $ | $ 155 |
Fibre capacity (km) | km | 10 |
Business acquisitions and dis_4
Business acquisitions and dispositions - Summary of Fair Value of Consideration Paid and Fair Value Assigned to Each Major Class of Assets and Liabilities (Details) $ in Millions | Dec. 31, 2018CAD ($) | Aug. 31, 2018CAD ($) | Jan. 05, 2018CAD ($)shares | Dec. 31, 2017CAD ($) | Mar. 17, 2017CAD ($)shares | Jan. 03, 2017CAD ($) | Jan. 01, 2017CAD ($) |
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill | $ 10,658 | $ 10,428 | $ 8,958 | ||||
Axia | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | $ 155 | ||||||
Total cost to be allocated | 155 | ||||||
Trade and other receivables | 6 | ||||||
Other non-cash working capital | (9) | ||||||
Property, plant and equipment | 64 | ||||||
Finite-life intangible assets | 19 | ||||||
Other non-current liabilities | (8) | ||||||
Total costs to be allocated, excluding cash and cash equivalents and goodwill | 72 | ||||||
Cash and cash equivalents | 3 | ||||||
Fair value of net assets acquired | 75 | ||||||
Goodwill | $ 80 | ||||||
AlarmForce | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | $ 181 | ||||||
Number of instruments or interests issued or issuable (in shares) | shares | 22,531 | ||||||
Issuance of BCE common shares | $ 1 | ||||||
Total cost to be allocated | 182 | ||||||
Other non-cash working capital | (5) | ||||||
Assets held for sale | 68 | ||||||
Property, plant and equipment | 8 | ||||||
Finite-life intangible assets - customer relationships | 34 | ||||||
Indefinite-life intangible assets | 1 | ||||||
Other non-current assets | 1 | ||||||
Deferred tax liabilities | (7) | ||||||
Total costs to be allocated, excluding cash and cash equivalents and goodwill | 100 | ||||||
Cash and cash equivalents | 4 | ||||||
Fair value of net assets acquired | 104 | ||||||
Goodwill | $ 78 | ||||||
MTS | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | $ 1,339 | ||||||
Number of instruments or interests issued or issuable (in shares) | shares | 27,600,000 | ||||||
Issuance of BCE common shares | $ 1,594 | ||||||
Total cost to be allocated | 2,933 | ||||||
Trade and other receivables | 91 | ||||||
Other non-cash working capital | (121) | ||||||
Assets held for sale | 302 | ||||||
Property, plant and equipment | 978 | ||||||
Finite-life intangible assets - customer relationships | 929 | ||||||
Indefinite-life intangible assets | 280 | ||||||
Other non-current assets | 137 | ||||||
Deferred tax assets | 32 | ||||||
Debt due within one year | (251) | ||||||
Long-term debt | (721) | ||||||
Other non-current liabilities | (50) | ||||||
Total costs to be allocated, excluding cash and cash equivalents and goodwill | 1,606 | ||||||
Cash and cash equivalents | (16) | ||||||
Fair value of net assets acquired | 1,590 | ||||||
Goodwill | 1,343 | ||||||
Cieslok Media | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | $ 161 | ||||||
Total cost to be allocated | 161 | ||||||
Trade and other receivables | 11 | ||||||
Other non-cash working capital | (4) | ||||||
Property, plant and equipment | 13 | ||||||
Finite-life intangible assets | 6 | ||||||
Indefinite-life intangible assets | 76 | ||||||
Deferred tax liabilities | (20) | ||||||
Other non-current liabilities | (1) | ||||||
Total costs to be allocated, excluding cash and cash equivalents and goodwill | 81 | ||||||
Cash and cash equivalents | 1 | ||||||
Fair value of net assets acquired | 82 | ||||||
Goodwill | $ 79 | ||||||
Bell Wireless | MTS | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Indefinite-life intangible assets | 228 | ||||||
Goodwill | 677 | ||||||
Wireline | MTS | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Indefinite-life intangible assets | 52 | ||||||
Goodwill | $ 666 |
Business acquisitions and dis_5
Business acquisitions and dispositions - Acquisition of AlarmForce (Details) customer in Thousands, $ in Millions | Jan. 05, 2018CAD ($)sharescustomer | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) |
Disclosure of detailed information about business combination [line items] | |||
Disposition of intangibles and other assets | $ 68 | $ 323 | |
AlarmForce | |||
Disclosure of detailed information about business combination [line items] | |||
Total cost to be allocated | $ 182 | ||
Cash transferred | 181 | ||
Equity interests of acquirer | $ 1 | ||
Number of instruments or interests issued or issuable (in shares) | shares | 22,531 | ||
Revenue of acquiree since acquisition date | $ 43 | ||
AlarmForce | Customer accounts | |||
Disclosure of detailed information about business combination [line items] | |||
Number of customer accounts | customer | 39 | ||
Disposition of intangibles and other assets | $ 68 |
Business acquisitions and dis_6
Business acquisitions and dispositions - Acquisition of MTS (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2017CAD ($)location | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Mar. 17, 2017CAD ($)sharesmegahertz | Dec. 31, 2016CAD ($) | |
Disclosure of detailed information about business combination [line items] | |||||
Deferred tax asset | $ (3,051) | $ (2,726) | $ (2,496) | ||
Percentage of postpaid subscribers sold | 25.00% | ||||
Disposition of intangibles and other assets | 68 | 323 | |||
Number of megahertz transferred | megahertz | 40 | ||||
Total number of megahertz | megahertz | 700 | ||||
Number of megahertz in wireless spectrum | megahertz | 2,500 | ||||
Non-capital tax loss carryforwards | |||||
Disclosure of detailed information about business combination [line items] | |||||
Unused tax loss carryforward | 645 | 208 | |||
Deferred tax asset | 129 | 17 | $ 21 | ||
MTS | |||||
Disclosure of detailed information about business combination [line items] | |||||
Total cost to be allocated | $ 2,933 | ||||
Cash transferred | 1,339 | ||||
Stock transferred | $ 1,594 | ||||
Number of shares transferred (in shares) | shares | 27.6 | ||||
Revenue of acquiree since acquisition date | 730 | ||||
Earnings of acquiree since acquisition date | 100 | ||||
Revenue of combined entity as if combination occurred at beginning of period | 22,950 | ||||
Earnings of combined entity as if combination occurred at beginning of period | 3,061 | ||||
Number of retail locations sold | location | 15 | ||||
Disposition of intangibles and other assets | $ 323 | ||||
MTS | Non-capital tax loss carryforwards | |||||
Disclosure of detailed information about business combination [line items] | |||||
Unused tax loss carryforward | $ 478 | $ 64 | $ 1,500 | ||
Deferred tax asset | $ 300 |
Business acquisitions and dis_7
Business acquisitions and dispositions - Acquisition of Cieslok Media Ltd. (Details) $ in Millions | Jan. 03, 2017CAD ($) |
Cieslok Media | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | $ 161 |
Segmented information - Segment
Segmented information - Segmented Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018CAD ($)segment | Dec. 31, 2017CAD ($) | Jan. 01, 2017CAD ($) | |
Operating Segments [Abstract] | |||
Number of operating segments | segment | 3 | ||
Disclosure of operating segments [line items] | |||
Total operating revenues | $ 23,468 | $ 22,757 | |
Operating costs | (13,933) | (13,475) | |
Segment profit | 9,535 | 9,282 | |
Severance, acquisition and other costs | (136) | (190) | |
Depreciation and amortization | (4,014) | (3,844) | |
Finance costs | |||
Interest expense | (1,000) | (955) | |
Interest on post-employment benefit obligations | (69) | (72) | |
Other expense | (348) | (102) | |
Income taxes | (995) | (1,069) | |
Net earnings (losses) | 2,973 | 3,050 | |
Goodwill | 10,658 | 10,428 | $ 8,958 |
Indefinite-life intangible assets | 8,107 | 8,228 | |
Capital expenditures | 3,971 | 4,034 | |
BELL WIRELESS | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 8,372 | 7,881 | |
Finance costs | |||
Goodwill | 3,048 | 3,032 | |
Indefinite-life intangible assets | 3,948 | 3,891 | |
Capital expenditures | 656 | 731 | |
BELL WIRELINE | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 12,419 | 12,200 | |
Finance costs | |||
Goodwill | 4,679 | 4,497 | |
Indefinite-life intangible assets | 1,692 | 1,692 | |
Capital expenditures | 3,201 | 3,174 | |
BELL MEDIA | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 2,677 | 2,676 | |
Finance costs | |||
Goodwill | 2,931 | 2,899 | |
Indefinite-life intangible assets | 2,467 | 2,645 | |
Capital expenditures | 114 | 129 | |
Intersegment eliminations | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | (737) | (673) | |
Operating costs | 737 | 673 | |
Intersegment eliminations | BELL WIRELESS | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 50 | 45 | |
Intersegment eliminations | BELL WIRELINE | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 243 | 200 | |
Intersegment eliminations | BELL MEDIA | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 444 | 428 | |
Operating segments | BELL WIRELESS | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 8,422 | 7,926 | |
Operating costs | (4,856) | (4,550) | |
Segment profit | 3,566 | 3,376 | |
Operating segments | BELL WIRELINE | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 12,662 | 12,400 | |
Operating costs | (7,386) | (7,210) | |
Segment profit | 5,276 | 5,190 | |
Operating segments | BELL MEDIA | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 3,121 | 3,104 | |
Operating costs | (2,428) | (2,388) | |
Segment profit | $ 693 | $ 716 |
Segmented information - Revenue
Segmented information - Revenues by Services and Products (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | $ 23,468 | $ 22,757 |
Total services | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 20,441 | 20,095 |
Wireless | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 6,258 | 6,048 |
Data | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 7,466 | 7,192 |
Voice | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 3,793 | 3,968 |
Media | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 2,677 | 2,676 |
Other services | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 247 | 211 |
Total products | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 3,027 | 2,662 |
Wireless | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 2,114 | 1,833 |
Data | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | 466 | 410 |
Equipment and other | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Total operating revenues | $ 447 | $ 419 |
Operating costs (Details)
Operating costs (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Labour costs | ||
Wages, salaries and related taxes and benefits | $ (4,274) | $ (4,156) |
Post-employment benefit plans service cost (net of capitalized amounts) | (266) | (242) |
Other labour costs | (1,043) | (1,056) |
Less: | ||
Capitalized labour | 1,093 | 1,043 |
Total labour costs | (4,490) | (4,411) |
Cost of revenues | (7,360) | (7,014) |
Other operating costs | (2,083) | (2,050) |
Total operating costs | (13,933) | (13,475) |
Research and development expense | $ 106 | $ 119 |
Severance, acquisition and ot_3
Severance, acquisition and other costs (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
Severance | $ (92) | $ (79) |
Acquisition and other | (44) | (111) |
Total severance, acquisition and other costs | $ (136) | $ (190) |
Reduction in management workforce | 4.00% |
Interest expense (Details)
Interest expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Capitalized interest | $ 51 | $ 44 |
Total interest expense | $ (1,000) | $ (955) |
Capitalisation rate of borrowing costs eligible for capitalisation | 3.88% | 3.81% |
Long-term Debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on other debt | $ (918) | $ (898) |
Other | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on other debt | (133) | (101) |
Finance leases | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on other debt | $ (142) | $ (145) |
Other expense - Schedule of Oth
Other expense - Schedule of Other Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
Impairment of assets | $ (200) | $ (82) |
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans | (80) | 76 |
Equity losses from investments in associates and joint ventures | ||
Loss on investment | (20) | (22) |
Operations | (15) | (9) |
Loss on investments | (34) | (5) |
Early debt redemption costs | (20) | (20) |
Gains (losses) on retirements and disposals of property, plant and equipment and intangible assets | 11 | (47) |
Other | 10 | 7 |
Total other expense | $ (348) | $ (102) |
Other expense - Narrative (Deta
Other expense - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($)radio_station | |
Disclosure of information for cash-generating units [line items] | ||
Impairment loss | $ 200 | $ 82 |
Number of small market radio stations impaired | radio_station | 2 | |
Explanation of period over which management has projected cash flows, period | 5 years | |
Loss on investment, equity loss of share obligation | $ 20 | $ 20 |
Losses on disposals of investments | $ 34 | |
Cash-generating units | ||
Disclosure of information for cash-generating units [line items] | ||
Explanation of period over which management has projected cash flows, period | 5 years | 5 years |
Discount rate applied to cash flow projections | 8.50% | |
Growth rate used to extrapolate cash flow projections | 0.00% | |
Recoverable amount of asset or cash-generating unit | $ 515 | $ 67 |
Bottom of range | Cash-generating units | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 8.00% | |
Top of range | Cash-generating units | ||
Disclosure of information for cash-generating units [line items] | ||
Discount rate applied to cash flow projections | 8.50% | |
Finite-Lived Intangible Assets | ||
Disclosure of information for cash-generating units [line items] | ||
Impairment loss | $ 14 | 12 |
Indefinite-Lived Intangible Assets | ||
Disclosure of information for cash-generating units [line items] | ||
Impairment loss | 145 | $ 70 |
BELL MEDIA | Indefinite-Lived Intangible Assets | ||
Disclosure of information for cash-generating units [line items] | ||
Impairment loss | $ 31 |
Income taxes - Significant Comp
Income taxes - Significant Components of Income Taxes Deducted from Net Earnings (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current taxes | ||
Current taxes | $ (775) | $ (758) |
Uncertain tax positions | 8 | (9) |
Change in estimate relating to prior periods | 12 | 40 |
Deferred taxes | ||
Deferred taxes relating to the origination and reversal of temporary differences | (352) | (71) |
Change in estimate relating to prior periods | 8 | 11 |
Recognition and utilization of loss carryforwards | 44 | (304) |
Effect of change in provincial corporate tax rate | 0 | (3) |
Resolution of uncertain tax positions | 60 | 25 |
Total income taxes | $ (995) | $ (1,069) |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 17, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||||
Applicable statutory tax rate | 27.00% | 27.10% | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax asset | $ (3,051) | $ (2,726) | $ (2,496) | |
Non-capital tax loss carryforwards | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Unused tax loss carryforward | 645 | 208 | ||
Deferred tax asset | 129 | 17 | $ 21 | |
Unused tax losses for which no deferred tax asset recognised | 167 | 144 | ||
Non-capital tax loss carryforwards | MTS | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Unused tax loss carryforward | 478 | 64 | $ 1,500 | |
Deferred tax asset | $ 300 | |||
Capital loss carryforwards | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Unused tax loss carryforward | $ 806 | $ 827 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Reported Income Taxes in the Income Statement (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||
Net earnings (losses) | $ 2,973 | $ 3,050 |
Add back income taxes | 995 | 1,069 |
Earnings before income taxes | $ 3,968 | $ 4,119 |
Applicable statutory tax rate | 27.00% | 27.10% |
Income taxes computed at applicable statutory rates | $ (1,071) | $ (1,116) |
Non-taxable portion of losses on investments | (9) | (1) |
Uncertain tax positions | 68 | 16 |
Effect of change in provincial corporate tax rate | 0 | (3) |
Change in estimate relating to prior periods | 20 | 51 |
Non-taxable portion of equity losses | (10) | (10) |
Other | 7 | (6) |
Total income taxes | $ (995) | $ (1,069) |
Average effective tax rate | 25.10% | 25.90% |
Income taxes - Disclosure of Cu
Income taxes - Disclosure of Current and Deferred Taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
OTHER COMPREHENSIVE (INCOME) LOSS | ||
Current taxes | $ 41 | $ 10 |
Deferred taxes | (104) | 103 |
Total income taxes (expense) recovery | (63) | 113 |
DEFICIT | ||
Current taxes | 5 | 9 |
Deficit | (11) | 2 |
Total income taxes (expense) recovery | $ (6) | $ 11 |
Income taxes - Deferred Taxes R
Income taxes - Deferred Taxes Resulting From Temporary Differences (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | $ (2,726) | $ (2,496) |
Income statement | (240) | (342) |
Business acquisitions | (12) | 12 |
Other comprehensive income | (104) | 103 |
Deficit | (11) | 2 |
Other | 42 | (5) |
Deferred tax liability (asset) | (3,051) | (2,726) |
NON- CAPITAL LOSS CARRY- FORWARDS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | 17 | 21 |
Income statement | 109 | (304) |
Business acquisitions | 3 | 300 |
Deferred tax liability (asset) | 129 | 17 |
POST EMPLOYMENT BENEFIT PLANS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | 494 | 454 |
Income statement | (14) | (31) |
Business acquisitions | (11) | |
Other comprehensive income | (65) | 82 |
Deferred tax liability (asset) | 415 | 494 |
INDEFINITE- LIFE INTANGIBLE ASSETS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | (1,761) | (1,680) |
Income statement | (2) | (8) |
Business acquisitions | (73) | |
Deferred tax liability (asset) | (1,763) | (1,761) |
PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | (1,400) | (1,198) |
Income statement | (248) | 10 |
Business acquisitions | (16) | (209) |
Other | 15 | (3) |
Deferred tax liability (asset) | (1,649) | (1,400) |
INVESTMENT TAX CREDITS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | (7) | (9) |
Income statement | 3 | 7 |
Business acquisitions | (5) | |
Deferred tax liability (asset) | (4) | (7) |
CRTC TANGIBLE BENEFITS | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | 30 | 44 |
Income statement | (14) | (14) |
Deferred tax liability (asset) | 16 | 30 |
OTHER | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) | (99) | (128) |
Income statement | (74) | (2) |
Business acquisitions | 1 | 10 |
Other comprehensive income | (39) | 21 |
Deficit | (11) | 2 |
Other | 27 | (2) |
Deferred tax liability (asset) | $ (195) | $ (99) |
Earnings per share (Details)
Earnings per share (Details) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | ||
Net earnings attributable to common shareholders - basic | $ 2,785 | $ 2,866 |
Dividends declared per common share (in dollars) (CAD Per Share) | $ 3.02 | $ 2.87 |
Weighted average number of common shares outstanding (in millions) | ||
Average number of common shares outstanding - basic (millions) (in shares) | 898,600,000 | 894,300,000 |
Assumed exercise of stock options (in shares) | 300,000 | 600,000 |
Weighted average number of common shares outstanding - diluted (in millions) (in shares) | 898,900,000 | 894,900,000 |
Shares excluded from calculation of earnings per share (in shares) | 12,252,594 | 3,031,125 |
Trade and other receivables (De
Trade and other receivables (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure Of Trade And Other Receivables [Line Items] | |||
Current tax receivable | $ 14 | $ 31 | $ 35 |
Other accounts receivable | 123 | 101 | 123 |
Total trade and other receivables | 3,006 | 3,129 | 2,988 |
Gross carrying amount | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | 3,026 | 3,135 | 2,973 |
Allowance for doubtful accounts | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | (51) | (54) | (60) |
Allowance for revenue adjustments | |||
Disclosure Of Trade And Other Receivables [Line Items] | |||
Trade receivables | $ (106) | $ (84) | $ (83) |
Inventory (Details)
Inventory (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Inventories [Abstract] | |||
Wireless devices and accessories | $ 202 | $ 179 | $ 179 |
Merchandise and other | 230 | 201 | 224 |
Total inventory | 432 | 380 | $ 403 |
Inventory recognized in cost of revenues | $ 2,980 | $ 2,689 |
Contracts assets and liabilit_3
Contracts assets and liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | |
CONTRACT ASSETS | ||||
Beginning balance | $ 1,263 | $ 1,121 | ||
Revenue recognized from contract liabilities included in contract assets at the beginning of the year | 154 | 139 | ||
Increase in contract liabilities included in contract assets during the year | (168) | (144) | ||
Increase in contract assets from revenue recognized during the year | 1,770 | 1,483 | ||
Contract assets transferred to trade receivables | (1,321) | (1,172) | ||
Acquisitions | 0 | 50 | ||
Contract terminations transferred to trade receivables | (219) | (207) | ||
Other | 14 | (7) | ||
Ending balance | 1,493 | 1,263 | ||
CONTRACT LIABILITIES | ||||
Opening balance | 894 | 848 | ||
Revenue recognized included in contract liabilities at the beginning of the year | (625) | (634) | ||
Increase in contract liabilities during the year | 628 | 658 | ||
Acquisitions | 13 | 29 | ||
Contract terminations transferred to trade receivables | (4) | (2) | ||
Other | (7) | (5) | ||
Ending balance | 899 | 894 | ||
Contract assets | ||||
CONTRACT LIABILITIES | ||||
Allowance for doubtful accounts | $ 91 | $ 96 | $ 92 | $ 92 |
Contract costs (Details)
Contract costs (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue From Contract With Customer1 [Abstract] | ||
Opening balance | $ 636 | $ 618 |
Incremental costs of obtaining a contract and contract fulfillment costs | 567 | 526 |
Amortization included in operating costs | (477) | (508) |
Impairment charges included in operating costs | (19) | 0 |
Ending balance | $ 707 | $ 636 |
Bottom of range | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Contract costs, amortization period | 12 months | |
Top of range | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Contract costs, amortization period | 84 months |
Property, plant and equipment -
Property, plant and equipment - Schedule of Property, Plant and Equipment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 24,029 | $ 22,341 |
Ending balance | 24,844 | 24,029 |
COST | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 69,219 | 65,616 |
Additions | 4,208 | 4,148 |
Acquisition through business combinations | 193 | 993 |
Transfers | (506) | (411) |
Retirements and disposals | (1,023) | (1,127) |
Impairment losses recognized in earnings | (8) | |
Ending balance | 72,083 | 69,219 |
ACCUMULATED DEPRECIATION | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (45,190) | (43,275) |
Retirements and disposals | (983) | (1,073) |
Depreciation | 3,145 | 3,034 |
Other | (113) | (46) |
Ending balance | (47,239) | (45,190) |
NETWORK INFRASTRUCTURE AND EQUIPMENT | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 19,535 | 18,442 |
Ending balance | 20,414 | 19,535 |
NETWORK INFRASTRUCTURE AND EQUIPMENT | COST | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 61,484 | 58,670 |
Additions | 2,699 | 2,491 |
Acquisition through business combinations | 144 | 653 |
Transfers | 898 | 775 |
Retirements and disposals | (969) | (1,105) |
Impairment losses recognized in earnings | (8) | |
Ending balance | 64,248 | 61,484 |
NETWORK INFRASTRUCTURE AND EQUIPMENT | ACCUMULATED DEPRECIATION | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (41,949) | (40,228) |
Retirements and disposals | (931) | (1,054) |
Depreciation | 2,923 | 2,813 |
Other | (107) | (38) |
Ending balance | (43,834) | (41,949) |
LAND AND BUILDINGS | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 2,720 | 2,525 |
Ending balance | 2,666 | 2,720 |
LAND AND BUILDINGS | COST | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 5,961 | 5,572 |
Additions | 72 | 70 |
Acquisition through business combinations | 49 | 264 |
Transfers | 43 | 77 |
Retirements and disposals | (54) | (22) |
Impairment losses recognized in earnings | 0 | |
Ending balance | 6,071 | 5,961 |
LAND AND BUILDINGS | ACCUMULATED DEPRECIATION | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (3,241) | (3,047) |
Retirements and disposals | (52) | (19) |
Depreciation | 222 | 221 |
Other | (6) | (8) |
Ending balance | (3,405) | (3,241) |
ASSETS UNDER CONSTRUCTION | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,774 | 1,374 |
Ending balance | 1,764 | 1,774 |
ASSETS UNDER CONSTRUCTION | COST | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,774 | 1,374 |
Additions | 1,437 | 1,587 |
Acquisition through business combinations | 0 | 76 |
Transfers | (1,447) | (1,263) |
Retirements and disposals | 0 | 0 |
Impairment losses recognized in earnings | 0 | |
Ending balance | 1,764 | 1,774 |
ASSETS UNDER CONSTRUCTION | ACCUMULATED DEPRECIATION | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Depreciation | 0 | 0 |
Other | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Property, plant and equipment_2
Property, plant and equipment - Finance Leases (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
ADDITIONS | $ 406 | $ 336 |
NET CARRYING AMOUNT | $ 1,947 | 1,902 |
Office leases | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Finance lease term of contract | 22 years | |
Satellites | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Finance lease term of contract | 15 years | |
Network infrastructure and equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
ADDITIONS | $ 405 | 334 |
NET CARRYING AMOUNT | 1,487 | 1,435 |
Land and buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
ADDITIONS | 1 | 2 |
NET CARRYING AMOUNT | $ 460 | $ 467 |
Property, plant and equipment_3
Property, plant and equipment - Reconciliation of Minimum Future Lease Payments (Details) $ in Millions | Dec. 31, 2018CAD ($) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Minimum future lease payments | $ 2,624 |
Less: | |
Future finance costs | (527) |
Present value of future lease obligations | 2,097 |
2019 | |
Less: | |
Future finance costs | (120) |
Present value of future lease obligations | 466 |
2020 | |
Less: | |
Future finance costs | (101) |
Present value of future lease obligations | 412 |
2021 | |
Less: | |
Future finance costs | (83) |
Present value of future lease obligations | 261 |
2022 | |
Less: | |
Future finance costs | (66) |
Present value of future lease obligations | 210 |
2023 | |
Less: | |
Future finance costs | (49) |
Present value of future lease obligations | 189 |
THERE- AFTER | |
Less: | |
Future finance costs | (108) |
Present value of future lease obligations | $ 559 |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | $ 13,258 | $ 11,998 |
Ending balance | 13,205 | 13,258 |
COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 20,001 | 17,995 |
Additions | 1,504 | 1,391 |
Acquired through business combinations | 67 | 1,337 |
Transfers | 506 | 406 |
Retirements and disposals | (46) | (96) |
Impairment losses recognized in earnings | (192) | (82) |
Amortization | (990) | (950) |
Ending balance | 20,850 | 20,001 |
ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | (6,743) | (5,997) |
Retirements and disposals | 43 | (73) |
Amortization | 869 | (810) |
Other | 76 | 9 |
Ending balance | (7,645) | (6,743) |
BRANDS | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,443 | 2,333 |
Ending balance | 2,409 | 2,443 |
BRANDS | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,443 | 2,333 |
Additions | 0 | 0 |
Acquired through business combinations | 1 | 110 |
Transfers | (4) | 0 |
Retirements and disposals | 0 | 0 |
Impairment losses recognized in earnings | (31) | 0 |
Amortization | 0 | 0 |
Ending balance | 2,409 | 2,443 |
BRANDS | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
SPECTRUM AND OTHER LICENCES | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 3,534 | 3,288 |
Ending balance | 3,587 | 3,534 |
SPECTRUM AND OTHER LICENCES | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 3,534 | 3,288 |
Additions | 56 | 0 |
Acquired through business combinations | 0 | 246 |
Transfers | 0 | 0 |
Retirements and disposals | (1) | 0 |
Impairment losses recognized in earnings | (2) | 0 |
Amortization | 0 | 0 |
Ending balance | 3,587 | 3,534 |
SPECTRUM AND OTHER LICENCES | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
BROADCAST LICENCES | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,251 | 2,322 |
Ending balance | 2,111 | 2,251 |
BROADCAST LICENCES | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,251 | 2,322 |
Additions | 0 | 0 |
Acquired through business combinations | 5 | 0 |
Transfers | 0 | (1) |
Retirements and disposals | 0 | 0 |
Impairment losses recognized in earnings | (145) | (70) |
Amortization | 0 | 0 |
Ending balance | 2,111 | 2,251 |
BROADCAST LICENCES | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
TOTAL | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 8,228 | 7,943 |
Ending balance | 8,107 | 8,228 |
TOTAL | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 8,228 | 7,943 |
Additions | 56 | 0 |
Acquired through business combinations | 6 | 356 |
Transfers | (4) | (1) |
Retirements and disposals | (1) | 0 |
Impairment losses recognized in earnings | (178) | (70) |
Amortization | 0 | 0 |
Ending balance | 8,107 | 8,228 |
TOTAL | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
SOFTWARE | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,713 | 2,545 |
Ending balance | 2,805 | 2,713 |
SOFTWARE | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 8,689 | 7,861 |
Additions | 362 | 344 |
Acquired through business combinations | 9 | 98 |
Transfers | 506 | 407 |
Retirements and disposals | (41) | (21) |
Impairment losses recognized in earnings | 0 | 0 |
Amortization | 0 | 0 |
Ending balance | 9,525 | 8,689 |
SOFTWARE | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | (5,976) | (5,316) |
Retirements and disposals | 39 | (21) |
Amortization | 707 | (672) |
Other | 76 | 9 |
Ending balance | (6,720) | (5,976) |
CUSTOMER RELATION- SHIPS | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 1,338 | 646 |
Ending balance | 1,287 | 1,338 |
CUSTOMER RELATION- SHIPS | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 1,950 | 1,159 |
Additions | 13 | 31 |
Acquired through business combinations | 51 | 780 |
Transfers | 0 | 0 |
Retirements and disposals | 0 | (20) |
Impairment losses recognized in earnings | 0 | 0 |
Amortization | 0 | 0 |
Ending balance | 2,014 | 1,950 |
CUSTOMER RELATION- SHIPS | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | (612) | (513) |
Retirements and disposals | 0 | 0 |
Amortization | 115 | (99) |
Other | 0 | 0 |
Ending balance | (727) | (612) |
PROGRAM AND FEATURE FILM RIGHTS | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 741 | 682 |
Ending balance | 704 | 741 |
PROGRAM AND FEATURE FILM RIGHTS | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 741 | 682 |
Additions | 967 | 1,009 |
Acquired through business combinations | 0 | 0 |
Transfers | 0 | 0 |
Retirements and disposals | 0 | 0 |
Impairment losses recognized in earnings | (14) | 0 |
Amortization | (990) | (950) |
Ending balance | 704 | 741 |
PROGRAM AND FEATURE FILM RIGHTS | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 0 | 0 |
Retirements and disposals | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
OTHER | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 238 | 182 |
Ending balance | 302 | 238 |
OTHER | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 393 | 350 |
Additions | 106 | 7 |
Acquired through business combinations | 1 | 103 |
Transfers | 4 | 0 |
Retirements and disposals | (4) | (55) |
Impairment losses recognized in earnings | 0 | (12) |
Amortization | 0 | 0 |
Ending balance | 500 | 393 |
OTHER | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | (155) | (168) |
Retirements and disposals | 4 | (52) |
Amortization | 47 | (39) |
Other | 0 | 0 |
Ending balance | (198) | (155) |
TOTAL | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 5,030 | 4,055 |
Ending balance | 5,098 | 5,030 |
TOTAL | COST | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 11,773 | 10,052 |
Additions | 1,448 | 1,391 |
Acquired through business combinations | 61 | 981 |
Transfers | 510 | 407 |
Retirements and disposals | (45) | (96) |
Impairment losses recognized in earnings | (14) | (12) |
Amortization | (990) | (950) |
Ending balance | 12,743 | 11,773 |
TOTAL | ACCUMULATED AMORTIZATION | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | (6,743) | (5,997) |
Retirements and disposals | 43 | (73) |
Amortization | 869 | (810) |
Other | 76 | 9 |
Ending balance | $ (7,645) | $ (6,743) |
Investments in associates and_3
Investments in associates and joint ventures (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of associates [line items] | |||
Assets | $ 57,100 | $ 55,802 | $ 51,547 |
Liabilities | (36,411) | (35,177) | (32,631) |
BCE’s share of net assets | 798 | 814 | 852 |
Revenues | 23,468 | 22,757 | |
Net earnings (losses) | 2,973 | 3,050 | |
Joint ventures | Associates | |||
Disclosure of associates [line items] | |||
Assets | 3,819 | 3,796 | 3,856 |
Liabilities | (2,253) | (2,155) | (2,119) |
Total net assets | 1,566 | 1,641 | $ 1,737 |
Revenues | 2,128 | 1,863 | |
Expenses | (2,191) | (1,924) | |
Net earnings (losses) | (63) | (61) | |
BCE’s share of net losses | $ (35) | $ (31) |
Other non-current assets (Detai
Other non-current assets (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Net assets of post-employment benefit plans | $ 331 | $ 262 | $ 403 |
Investments | 114 | 106 | 88 |
Publicly-traded and privately-held investments | 110 | 103 | 103 |
Long-term notes and other receivables | 89 | 101 | 64 |
Derivative assets | 68 | 51 | 126 |
Other | 135 | 134 | 113 |
Total other non-current assets | $ 847 | $ 757 | $ 897 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amounts of Goodwill (Details) - Goodwill - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill, beginning of period | $ 10,428 | $ 8,958 |
Acquisitions and other | 230 | 1,470 |
Goodwill, end of period | 10,658 | 10,428 |
BELL WIRELESS | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill, beginning of period | 3,032 | 2,304 |
Acquisitions and other | 16 | 728 |
Goodwill, end of period | 3,048 | 3,032 |
BELL WIRELINE | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill, beginning of period | 4,497 | 3,831 |
Acquisitions and other | 182 | 666 |
Goodwill, end of period | 4,679 | 4,497 |
BELL MEDIA | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Goodwill, beginning of period | 2,899 | 2,823 |
Acquisitions and other | 32 | 76 |
Goodwill, end of period | $ 2,931 | $ 2,899 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Explanation of period over which management has projected cash flows, period | 5 years |
BELL MEDIA | |
Disclosure of information for cash-generating units [line items] | |
Decrease in perpetuity growth rate resulting in recoverable amount being equal to carrying value (as a percent) | 0.60% |
Increase in discount rate resulting in recoverable amount being equal to carrying amount (as a percent) | 0.40% |
Goodwill - Key Assumptions Used
Goodwill - Key Assumptions Used to Estimate the Recoverable Amounts (Details) | Dec. 31, 2018 |
Bell Wireless | |
Disclosure of information for cash-generating units [line items] | |
Perpetuity Growth Rate (as a percent) | 0.80% |
Discount Rate (as a percent) | 9.10% |
Bell Wireline | |
Disclosure of information for cash-generating units [line items] | |
Perpetuity Growth Rate (as a percent) | 1.00% |
Discount Rate (as a percent) | 6.00% |
Bell Media | |
Disclosure of information for cash-generating units [line items] | |
Perpetuity Growth Rate (as a percent) | 1.00% |
Discount Rate (as a percent) | 8.50% |
Trade payables and other liab_3
Trade payables and other liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Trade payables and accruals | $ 2,535 | $ 2,448 | $ 2,319 |
Compensation payable | 589 | 560 | 531 |
Taxes payable | 129 | 150 | 137 |
Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability | 135 | 135 | 135 |
Derivative liabilities | 27 | 96 | 18 |
CRTC tangible benefits obligation | 38 | 38 | 51 |
Provisions | 66 | 55 | 39 |
Severance and other costs payable | 63 | 29 | 30 |
CRTC deferral account obligation | 16 | 28 | 32 |
Other current liabilities | 343 | 336 | 379 |
Total trade payables and other liabilities | $ 3,941 | $ 3,875 | $ 3,671 |
Repurchase obligation of trust ownership percentage | 9.00% |
Debt due within one year - Sche
Debt due within one year - Schedule of Debt Due Within One Year (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2017CAD ($) | Jan. 01, 2017USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | $ 525 | $ 1,106 | $ 1,307 | ||||
Total debt due within one year | 4,645 | 5,178 | 4,887 | ||||
Repayments of non-current borrowings | $ 2,713 | 2,653 | |||||
Notes payable | Weighted Average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 2.82% | 2.82% | |||||
Loans secured by trade receivables | Weighted Average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 2.83% | 2.83% | |||||
Long-term debt due within one year | Weighted Average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 5.16% | 5.16% | |||||
Unsecured committed term credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Repayments of non-current borrowings | 480 | $ 357 | |||||
Finance leases | Weighted Average | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 6.67% | 6.67% | |||||
Gross carrying amount | Notes payable | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current borrowings | $ 3,201 | 3,151 | 2,649 | ||||
Gross carrying amount | Loans secured by trade receivables | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current borrowings | 919 | 921 | 931 | ||||
Gross carrying amount | Long-term debt due within one year | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | 525 | 1,106 | 835 | ||||
Gross carrying amount | Unsecured committed term credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | 0 | 0 | 479 | ||||
Gross carrying amount | Commercial paper | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Current borrowings | 3,156 | 3,116 | $ 2,314 | $ 2,484 | 2,612 | $ 1,945 | |
Gross carrying amount | Finance leases | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | 466 | 445 | 435 | ||||
Net unamortized discount | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | 0 | 0 | 1 | ||||
Unamortized debt issuance costs | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total long-term debt due within one year | $ 0 | $ 0 | $ 6 |
Debt due within one year - Deta
Debt due within one year - Details of Securitized Trade Receivables (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Financial Instruments [Abstract] | |||
Average interest rate throughout the year | 2.41% | 1.74% | 1.51% |
Securitized trade receivables | $ 1,998 | $ 1,867 | $ 1,904 |
Debt due within one year - Narr
Debt due within one year - Narrative (Details) | Dec. 06, 2018CAD ($) | Oct. 17, 2018CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) |
Unsecured revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | $ 2,500,000,000 | |||
Unsecured revolving credit facility and expansion facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | 4,000,000,000 | |||
Commercial paper | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | 3,000,000,000 | $ 3,000,000,000 | ||
Increase in line of credit facility | $ 500,000,000 | |||
Committed credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Maximum borrowing capacity | $ 4,134,000,000 | |||
Increase in line of credit facility | $ 500,000,000 |
Debt due within one year - Summ
Debt due within one year - Summary of Total Bank Credit Facilities (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | Jan. 01, 2017CAD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
DRAWN | $ 525,000,000 | $ 1,106,000,000 | $ 1,307,000,000 | |
Unsecured revolving credit facility and expansion facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 4,000,000,000 | |||
DRAWN | 0 | |||
LETTERS OF CREDIT | 0 | |||
COMMERCIAL PAPER OUTSTANDING | 3,156,000,000 | $ 2,314 | ||
NET AVAILABLE | 844,000,000 | |||
Other | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 134,000,000 | |||
DRAWN | 0 | |||
LETTERS OF CREDIT | 107,000,000 | |||
COMMERCIAL PAPER OUTSTANDING | 0 | |||
NET AVAILABLE | 27,000,000 | |||
Total committed credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 4,134,000,000 | |||
DRAWN | 0 | |||
LETTERS OF CREDIT | 107,000,000 | |||
COMMERCIAL PAPER OUTSTANDING | 3,156,000,000 | |||
NET AVAILABLE | 871,000,000 | |||
Total non-committed credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 3,014,000,000 | |||
DRAWN | 0 | |||
LETTERS OF CREDIT | 1,964,000,000 | |||
COMMERCIAL PAPER OUTSTANDING | 0 | |||
NET AVAILABLE | 1,050,000,000 | |||
Total committed and non-committed credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 7,148,000,000 | |||
DRAWN | 0 | |||
LETTERS OF CREDIT | 2,071,000,000 | |||
COMMERCIAL PAPER OUTSTANDING | 3,156,000,000 | |||
NET AVAILABLE | 1,921,000,000 | |||
Unsecured revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 2,500,000,000 | |||
Unsecured expansion facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | 1,000,000,000 | |||
Revolving facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
TOTAL AVAILABLE | $ 500,000,000 | |||
Term loan | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Debt Instrument, Term1 | 1 year |
Long-term debt - Summary of Lon
Long-term debt - Summary of Long-Term Debt (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2017CAD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Total long-term debt due within one year | $ (525) | $ (1,106) | $ (1,307) | ||
Total long-term debt | 19,760 | 18,215 | 16,572 | ||
Repayments of non-current borrowings | $ 2,713 | 2,653 | |||
1997 trust indenture | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 3.85% | 3.85% | |||
1976 trust indenture | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 9.54% | 9.54% | |||
2011 trust indenture | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 4.00% | 4.00% | |||
2016 U.S. trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 1,493 | $ 1,150,000,000 | |||
2016 U.S. trust indenture | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 4.46% | 4.46% | |||
1996 trust indenture (subordinated) | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 8.21% | 8.21% | |||
Finance leases | Weighted Average | |||||
Disclosure of detailed information about borrowings [line items] | |||||
WEIGHTED AVERAGE INTEREST RATE AT DECEMBER 31, 2018 | 6.67% | 6.67% | |||
Unsecured committed term credit facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Repayments of non-current borrowings | 480 | $ 357,000,000 | |||
Gross carrying amount | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | $ 20,324 | 19,317 | 17,902 | ||
Gross carrying amount | 1997 trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 14,750 | 14,950 | 13,600 | ||
Gross carrying amount | 1976 trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 1,100 | 1,100 | 1,100 | ||
Gross carrying amount | 2011 trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 225 | 425 | 0 | ||
Gross carrying amount | 2001 trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 0 | 200 | 0 | ||
Gross carrying amount | 2016 U.S. trust indenture | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 1,569 | 0 | 0 | ||
Gross carrying amount | 1996 trust indenture (subordinated) | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 275 | 275 | 275 | ||
Gross carrying amount | Finance leases | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 2,097 | 2,172 | 2,260 | ||
Total long-term debt due within one year | (466) | (445) | (435) | ||
Gross carrying amount | Unsecured committed term credit facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 0 | 0 | 479 | ||
Total long-term debt due within one year | 0 | 0 | (479) | ||
Gross carrying amount | Other | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 308 | 195 | 188 | ||
Net unamortized premium | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | (21) | (50) | (18) | ||
Total long-term debt due within one year | 0 | 0 | (1) | ||
Unamortized debt issuance costs | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Total debt | 60 | 46 | 41 | ||
Total long-term debt due within one year | $ 0 | $ 0 | $ (6) |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) | Oct. 15, 2018CAD ($) | Sep. 21, 2018CAD ($) | May 04, 2018CAD ($) | Apr. 16, 2018CAD ($) | Oct. 30, 2017CAD ($) | Oct. 09, 2017CAD ($) | May 12, 2017CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Sep. 14, 2018CAD ($) | Sep. 14, 2018USD ($) | Aug. 21, 2018CAD ($) | Mar. 29, 2018CAD ($) | Mar. 29, 2018USD ($) | Mar. 12, 2018CAD ($) | Sep. 29, 2017CAD ($) | Feb. 27, 2017CAD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Early debt redemption costs | $ 20,000,000 | $ 20,000,000 | |||||||||||||||
Series 8 notes | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 200,000,000 | ||||||||||||||||
Series 8 notes | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 5.625% | ||||||||||||||||
Series M-25 medium term notes | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 1,000,000,000 | ||||||||||||||||
Series M-25 medium term notes | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.35% | ||||||||||||||||
Series US-1 Notes | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 526,000,000 | $ 400,000,000 | $ 967,000,000 | $ 750,000,000 | |||||||||||||
Series US-1 Notes | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.464% | 4.464% | 4.464% | 4.464% | |||||||||||||
Series M-48 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 1,000,000,000 | ||||||||||||||||
Series M-48 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.80% | ||||||||||||||||
Series M-28 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 400,000,000 | ||||||||||||||||
Series M-28 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.50% | ||||||||||||||||
Series 9 notes | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 200,000,000 | ||||||||||||||||
Series 9 notes | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.59% | ||||||||||||||||
Series M-33 debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 5.52% | ||||||||||||||||
Principal amount redeemed | $ 300,000,000 | ||||||||||||||||
Series M-47 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 500,000,000 | ||||||||||||||||
Series M-47 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.35% | ||||||||||||||||
Series M-22 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 1,000,000,000 | ||||||||||||||||
Series M-22 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.40% | ||||||||||||||||
Series M-36 debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 300,000,000 | ||||||||||||||||
Series M-36 debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.88% | ||||||||||||||||
Series M-40 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 700,000,000 | ||||||||||||||||
Series M-40 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.00% | ||||||||||||||||
Series M-46 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 800,000,000 | ||||||||||||||||
Series M-46 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 3.60% | ||||||||||||||||
Series M-35 debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount redeemed | $ 350,000,000 | ||||||||||||||||
Series M-35 debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.37% | ||||||||||||||||
Series M-44 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 1,000,000,000 | ||||||||||||||||
Series M-44 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 2.70% | ||||||||||||||||
Series M-45 MTN debentures | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Principal amount | $ 500,000,000 | ||||||||||||||||
Series M-45 MTN debentures | Fixed interest rate | |||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||
Interest rate (as a percent) | 4.45% |
Provisions (Details)
Provisions (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Reconciliation of changes in other provisions [abstract] | ||||
Beginning balance | $ 328 | |||
Additions | 85 | |||
Usage | (33) | |||
Reversals | (13) | |||
Acquired through business combinations | 4 | |||
Ending balance | 371 | |||
Current | $ 66 | $ 55 | $ 39 | |
Non-current | 305 | 273 | $ 273 | |
Total other provisions | 328 | 371 | 328 | |
AROs | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Beginning balance | 170 | |||
Additions | 38 | |||
Usage | (4) | |||
Reversals | (5) | |||
Acquired through business combinations | 0 | |||
Ending balance | 199 | |||
Current | 16 | |||
Non-current | 183 | |||
Total other provisions | 170 | 199 | 170 | |
Other | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Beginning balance | 158 | |||
Additions | 47 | |||
Usage | (29) | |||
Reversals | (8) | |||
Acquired through business combinations | 4 | |||
Ending balance | 172 | |||
Current | 50 | |||
Non-current | 122 | |||
Total other provisions | $ 158 | $ 172 | $ 158 |
Post-employee benefit plans - C
Post-employee benefit plans - Components of Post-Employment Benefit Plans Service Cost (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
DC pension | $ (106) | $ (102) |
Plan amendment gain on OPEBs and DB pension | 0 | 16 |
Less: Capitalized benefit plans cost | 56 | 58 |
Total post-employment benefit plans service cost included in operating costs | (266) | (242) |
Other costs recognized in severance, acquisition and other costs | (4) | (10) |
Total post-employment benefit plans service cost | (270) | (252) |
DB pension | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | (213) | (208) |
OPEBs | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | $ (3) | $ (6) |
Post-employee benefit plans -_2
Post-employee benefit plans - Components of Post-Employment Benefit Plans Financing Cost (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Total interest on post-employment benefit obligations | $ (69) | $ (72) |
DB pension | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Total interest on post-employment benefit obligations | (23) | (18) |
OPEBs | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Total interest on post-employment benefit obligations | $ (46) | $ (54) |
Post-employee benefit plans - D
Post-employee benefit plans - Defined Benefit Plans Recognized in Comprehensive Income (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits [Abstract] | ||
Cumulative losses recognized directly in equity, January 1 | $ (2,984) | $ (2,646) |
Actuarial gains (losses) in other comprehensive income | 79 | (313) |
Decrease (increase) in the effect of the asset limit | 13 | (25) |
Cumulative losses recognized directly in equity, December 31 | (2,892) | $ (2,984) |
Cumulative actuarial losses | 3,138 | |
Cumulative decrease in the effect of the asset limit | $ 246 |
Post-employee benefit plans -_3
Post-employee benefit plans - Components of Post-Employment Benefit (Obligations) Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | $ (1,846) | ||
Interest on obligations | (69) | $ (72) | |
Actuarial gains (losses) | 79 | (313) | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (1,535) | (1,846) | |
Post-employment benefit assets included in other non-current assets | 331 | 262 | $ 403 |
Post-employment benefit obligations | (1,866) | (2,108) | $ (2,105) |
Experience gains (losses) included in actuarial gains | (693) | 911 | |
Actual return on plan assets | $ 17 | $ 1,797 | |
Actual return on plan assets percent | 0.20% | 8.20% | |
Benefit obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | $ (26,057) | $ (22,537) | |
Current service cost | (216) | (214) | |
Interest on obligations | (920) | (961) | |
Actuarial gains (losses) | 913 | (1,221) | |
Net curtailment (losses) gains | (4) | 12 | |
Loss on plan transfer | 0 | (6) | |
Benefit payments | 1,422 | 1,401 | |
Employee contributions | (11) | (10) | |
Acquisition of MTS | 0 | (2,682) | |
Plan transfer | 0 | 122 | |
Other | 0 | 39 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (24,873) | (26,057) | |
Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | 24,244 | 20,843 | |
Interest on obligations | 851 | 889 | |
Actuarial gains (losses) | (834) | 908 | |
Benefit payments | (1,422) | (1,401) | |
Employer contributions | 508 | 382 | |
Employee contributions | 11 | 10 | |
Acquisition of MTS | 0 | 2,735 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | 23,358 | 24,244 | |
Plan deficit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (1,813) | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | (1,515) | (1,813) | |
Effect of asset limit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (33) | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | (20) | (33) | |
DB PENSION PLANS | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (492) | ||
Current service cost | (213) | (208) | |
Interest on obligations | (23) | (18) | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (353) | (492) | |
Post-employment benefit assets included in other non-current assets | 331 | 262 | |
Post-employment benefit obligations | (684) | (754) | |
DB PENSION PLANS | Benefit obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (24,404) | (20,853) | |
Current service cost | (213) | (208) | |
Interest on obligations | (864) | (896) | |
Actuarial gains (losses) | 750 | (1,193) | |
Net curtailment (losses) gains | (4) | (4) | |
Loss on plan transfer | 0 | (6) | |
Benefit payments | 1,342 | 1,320 | |
Employee contributions | (11) | (10) | |
Acquisition of MTS | 0 | (2,677) | |
Plan transfer | 0 | 122 | |
Other | 0 | 1 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (23,404) | (24,404) | |
DB PENSION PLANS | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | 23,945 | 20,563 | |
Interest on obligations | 841 | 878 | |
Actuarial gains (losses) | (817) | 896 | |
Benefit payments | (1,342) | (1,320) | |
Employer contributions | 433 | 305 | |
Employee contributions | 11 | 10 | |
Acquisition of MTS | 0 | 2,735 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | 23,071 | 23,945 | |
DB PENSION PLANS | Plan deficit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (459) | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | (333) | (459) | |
DB PENSION PLANS | Effect of asset limit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (33) | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | (20) | (33) | |
OPEB PLANS | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (1,354) | ||
Current service cost | (3) | (6) | |
Interest on obligations | (46) | (54) | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (1,182) | (1,354) | |
Post-employment benefit assets included in other non-current assets | 0 | 0 | |
Post-employment benefit obligations | (1,182) | (1,354) | |
OPEB PLANS | Benefit obligations | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (1,653) | (1,684) | |
Current service cost | (3) | (6) | |
Interest on obligations | (56) | (65) | |
Actuarial gains (losses) | 163 | (28) | |
Net curtailment (losses) gains | 0 | 16 | |
Loss on plan transfer | 0 | 0 | |
Benefit payments | 80 | 81 | |
Employee contributions | 0 | 0 | |
Acquisition of MTS | 0 | (5) | |
Plan transfer | 0 | 0 | |
Other | 0 | 38 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | (1,469) | (1,653) | |
OPEB PLANS | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | 299 | 280 | |
Interest on obligations | 10 | 11 | |
Actuarial gains (losses) | (17) | 12 | |
Benefit payments | (80) | (81) | |
Employer contributions | 75 | 77 | |
Employee contributions | 0 | 0 | |
Acquisition of MTS | 0 | 0 | |
Post-employment benefit obligations/Fair value of plan assets, December 31 | 287 | 299 | |
OPEB PLANS | Plan deficit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | (1,354) | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | (1,182) | (1,354) | |
OPEB PLANS | Effect of asset limit | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Post-employment benefit obligations/Fair value of plan assets, January 1 | 0 | ||
Post-employment benefit obligations/Fair value of plan assets, December 31 | $ 0 | $ 0 |
Post-employee benefit plans - F
Post-employee benefit plans - Funded Status of Post-Employment Benefit Plans Cost (Details) $ in Millions | Jan. 15, 2016plan | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Jan. 01, 2017CAD ($) |
Employee Benefits [Abstract] | ||||
Number of defined benefit plans retained during sale of subsidiaries | plan | 2 | |||
Plan deficit | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of post-employment benefit obligations | $ (24,873) | $ (26,057) | $ (22,537) | |
Fair value of plan assets | 23,358 | 24,244 | 20,843 | |
Plan surplus (deficit) | (1,515) | (1,813) | (1,694) | |
Plan deficit | FUNDED | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of post-employment benefit obligations | (22,765) | (23,746) | (20,249) | |
Fair value of plan assets | 23,018 | 23,894 | 20,520 | |
Plan surplus (deficit) | 253 | 148 | 271 | |
Plan deficit | PARTIALLY FUNDED | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of post-employment benefit obligations | (1,816) | (1,976) | (1,995) | |
Fair value of plan assets | 340 | 350 | 323 | |
Plan surplus (deficit) | (1,476) | (1,626) | (1,672) | |
Plan deficit | UNFUNDED | ||||
Disclosure of defined benefit plans [line items] | ||||
Present value of post-employment benefit obligations | (292) | (335) | (293) | |
Fair value of plan assets | 0 | 0 | 0 | |
Plan surplus (deficit) | $ (292) | $ (335) | $ (293) |
Post-employee benefit plans - S
Post-employee benefit plans - Significant Assumptions (Details) - year | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Post-employment benefit obligations | |||
Discount rate | 3.80% | 3.60% | 4.00% |
Rate of compensation increase | 2.25% | 2.25% | 2.25% |
Cost of living indexation rate | 1.60% | 1.60% | 1.60% |
Life expectancy at age 65 (years) | 23.1 | 23.2 | 23.1 |
Net post-employment benefit plans cost | |||
Discount rate | 3.70% | 4.20% | |
Rate of compensation increase | 2.25% | 2.25% | |
Cost of living indexation rate | 1.60% | 1.60% | |
Life expectancy at age 65 (years) | 23.2 | 23.1 | |
Weighted average duration of defined benefit obligation | 14 | ||
Cost of medication | |||
Net post-employment benefit plans cost | |||
Actuarial assumption of medical cost trend rates | 7.00% | ||
Ultimate actuarial assumption of medical cost trend rates | 4.50% | ||
Term to reach ultimate actuarial assumption of medical cost trend rate | 20 years | ||
Cost of covered dental benefits | |||
Net post-employment benefit plans cost | |||
Actuarial assumption of medical cost trend rates | 4.00% | ||
Cost of covered hospital benefits | |||
Net post-employment benefit plans cost | |||
Actuarial assumption of medical cost trend rates | 3.30% | ||
Cost of other covered healthcare benefits | |||
Net post-employment benefit plans cost | |||
Actuarial assumption of medical cost trend rates | 3.00% |
Post-employee benefit plans - H
Post-employee benefit plans - Healthcare Cost Trend Rates and Sensitivity Analysis (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018CAD ($) | |
Actuarial assumption of medical cost trend rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Impact on net post-employment benefit plans cost, increase in assumption | $ 5 |
Impact on net post-employment benefit plans cost, decrease in assumption | (3) |
Impact on post-employment benefit obligation, increase in assumption | 111 |
Impact on post-employment benefit obligation, decrease in assumption | $ (90) |
Actuarial assumption of discount rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | 0.50% |
Impact on net post-employment benefit plans cost, increase in assumption | $ (77) |
Impact on net post-employment benefit plans cost, decrease in assumption | 65 |
Impact on post-employment benefit obligation, increase in assumption | (1,605) |
Impact on post-employment benefit obligation, decrease in assumption | 1,716 |
Actuarial assumption of life expectancy | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Impact on net post-employment benefit plans cost, increase in assumption | 35 |
Impact on net post-employment benefit plans cost, decrease in assumption | (34) |
Impact on post-employment benefit obligation, increase in assumption | 796 |
Impact on post-employment benefit obligation, decrease in assumption | $ (771) |
Duration of reasonably possible decrease in actuarial assumptions | 1 year |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Post-employee benefit plans - P
Post-employee benefit plans - Post-Employment Benefit Plan Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of fair value of plan assets [line items] | |||
Equity securities, total plan assets fair value percent | 20.00% | 22.00% | 22.00% |
Debt securities, total plan assets fair value percent | 64.00% | 65.00% | 68.00% |
Alternative investments, total plan asset fair value percent | 16.00% | 13.00% | 10.00% |
Total plan assets fair value percent | 100.00% | 100.00% | 100.00% |
Defined benefit obligation hedged | $ 5,000 | ||
DB pension | |||
Disclosure of fair value of plan assets [line items] | |||
Plan assets, at fair value | 23,071 | $ 23,945 | $ 20,563 |
Equity securities included in total plan assets | $ 8 | $ 13 | $ 17 |
Equity securities percent included in total plan assets | 0.03% | 0.05% | 0.08% |
Debt securities included in total plan assets | $ 68 | $ 11 | $ 15 |
Debt securities percent included in total plan assets | 0.30% | 0.05% | 0.07% |
Alternative investments included in total plan assets | $ 135 | $ 135 | $ 135 |
Alternative investments percent included in total plan assets | 0.59% | 0.56% | 0.66% |
DB pension | Money market | |||
Disclosure of fair value of plan assets [line items] | |||
Debt securities | $ 327 | $ 491 | $ 387 |
DB pension | Private equities | |||
Disclosure of fair value of plan assets [line items] | |||
Alternative investments | 1,804 | 1,484 | 1,164 |
DB pension | Hedge funds | |||
Disclosure of fair value of plan assets [line items] | |||
Alternative investments | 1,014 | 965 | 726 |
DB pension | Real estate | |||
Disclosure of fair value of plan assets [line items] | |||
Alternative investments | 758 | 484 | 55 |
DB pension | Other | |||
Disclosure of fair value of plan assets [line items] | |||
Alternative investments | 93 | 111 | 111 |
DB pension | Canadian | |||
Disclosure of fair value of plan assets [line items] | |||
Equity securities | 844 | 1,045 | 901 |
DB pension | Canadian | Debt securities, excluding money market | |||
Disclosure of fair value of plan assets [line items] | |||
Debt securities | 12,457 | 13,126 | 12,469 |
DB pension | Foreign | |||
Disclosure of fair value of plan assets [line items] | |||
Equity securities | 3,770 | 4,349 | 3,682 |
DB pension | Foreign | Debt securities, excluding money market | |||
Disclosure of fair value of plan assets [line items] | |||
Debt securities | $ 2,004 | $ 1,890 | $ 1,068 |
Bottom of range | |||
Disclosure of fair value of plan assets [line items] | |||
Equity securities, weighted average target allocation | 20.00% | ||
Debt securities, weighted average target allocation | 60.00% | ||
Alternative investments, weighted average target allocation | 0.00% | ||
Top of range | |||
Disclosure of fair value of plan assets [line items] | |||
Equity securities, weighted average target allocation | 40.00% | ||
Debt securities, weighted average target allocation | 100.00% | ||
Alternative investments, weighted average target allocation | 40.00% |
Post-employee benefit plans -_4
Post-employee benefit plans - Disclosure of Contributions to Post-Employment Benefit Plans (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Contributions, defined contribution plan | $ (106) | $ (108) |
Estimated of contributions expected to be paid to plan for next annual reporting period, defined contribution plan | 115 | |
DB pension | ||
Disclosure of defined benefit plans [line items] | ||
Estimate of contributions expected to be paid to plan for next annual reporting period, defined benefit plan | 180 | |
OPEBs | ||
Disclosure of defined benefit plans [line items] | ||
Estimate of contributions expected to be paid to plan for next annual reporting period, defined benefit plan | 80 | |
Plan assets | ||
Disclosure of defined benefit plans [line items] | ||
Contributions, defined benefit plan | (508) | (382) |
Plan assets | DB pension | ||
Disclosure of defined benefit plans [line items] | ||
Contributions, defined benefit plan | (433) | (305) |
Voluntary contributions | 240 | 100 |
Plan assets | OPEBs | ||
Disclosure of defined benefit plans [line items] | ||
Contributions, defined benefit plan | $ (75) | $ (77) |
Other non-current liabilities_2
Other non-current liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Long-term disability benefits obligation | $ 288 | $ 322 | $ 302 |
Provisions | 305 | 273 | 273 |
CRTC deferral account obligation | 92 | 96 | 104 |
CRTC tangible benefits obligation | 23 | 73 | 115 |
Other | 289 | 287 | 274 |
Total other non-current liabilities | $ 997 | $ 1,051 | $ 1,068 |
Financial and capital managem_3
Financial and capital management - Fair Value Details of Financial Instruments Measured at Amortized Cost (Details) - Financial liabilities at amortised cost, category - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
CRTC tangible benefits obligation | |||
Disclosure of financial liabilities [line items] | |||
CARRYING VALUE | $ 61 | $ 111 | $ 166 |
FAIR VALUE | 61 | 110 | 169 |
CRTC deferral account obligation | |||
Disclosure of financial liabilities [line items] | |||
CARRYING VALUE | 108 | 124 | 136 |
FAIR VALUE | 112 | 128 | 145 |
Debt securities, finance leases and other debt | |||
Disclosure of financial liabilities [line items] | |||
CARRYING VALUE | 20,285 | 19,321 | 17,879 |
FAIR VALUE | $ 21,482 | $ 21,298 | $ 20,093 |
Financial and capital managem_4
Financial and capital management - Financial Instruments Measured at Fair Value (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of financial assets [line items] | |||
Assets | $ 57,100 | $ 55,802 | $ 51,547 |
Liabilities | $ (36,411) | (35,177) | (32,631) |
Repurchase obligation of trust ownership percentage | 9.00% | ||
MLSE financial liability | |||
Disclosure of financial assets [line items] | |||
Liabilities | $ (135) | (135) | (135) |
MLSE financial liability | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Disclosure of financial assets [line items] | |||
Liabilities | 0 | 0 | 0 |
MLSE financial liability | OBSERVABLE MARKET DATA (LEVEL 2) | |||
Disclosure of financial assets [line items] | |||
Liabilities | 0 | 0 | 0 |
MLSE financial liability | NON-OBSERVABLE MARKET INPUTS (LEVEL 3) | |||
Disclosure of financial assets [line items] | |||
Liabilities | (135) | (135) | (135) |
Publicly-traded and privately-held investments | |||
Disclosure of financial assets [line items] | |||
Assets | 110 | 103 | 103 |
Publicly-traded and privately-held investments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Disclosure of financial assets [line items] | |||
Assets | 1 | 1 | 1 |
Publicly-traded and privately-held investments | OBSERVABLE MARKET DATA (LEVEL 2) | |||
Disclosure of financial assets [line items] | |||
Assets | 0 | 0 | 0 |
Publicly-traded and privately-held investments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3) | |||
Disclosure of financial assets [line items] | |||
Assets | 109 | 102 | 102 |
Derivative financial instruments | Derivative financial instruments | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 181 | (48) | 166 |
Derivative financial instruments | Derivative financial instruments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 0 | 0 | 0 |
Derivative financial instruments | Derivative financial instruments | OBSERVABLE MARKET DATA (LEVEL 2) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 181 | (48) | 166 |
Derivative financial instruments | Derivative financial instruments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 0 | 0 | 0 |
Other | Other | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 43 | 60 | 35 |
Other | Other | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 0 | 0 | 0 |
Other | Other | OBSERVABLE MARKET DATA (LEVEL 2) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | 114 | 106 | 88 |
Other | Other | NON-OBSERVABLE MARKET INPUTS (LEVEL 3) | |||
Disclosure of financial assets [line items] | |||
Assets (liabilities) | $ (71) | $ (46) | $ (53) |
Financial and capital managem_5
Financial and capital management - Change in Allowance for Doubtful Accounts (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Trade receivables | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, January 1 | $ (54) | $ (60) |
Additions | (84) | (99) |
Usage | 91 | 105 |
Balance, December 31 | (51) | (54) |
Trade receivables | IFRS 9 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, January 1 | (4) | 0 |
Balance, December 31 | (4) | |
Contract assets | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, January 1 | (96) | (92) |
Additions | (50) | (39) |
Usage | 55 | 35 |
Balance, December 31 | (91) | (96) |
Current contract assets | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, January 1 | (47) | |
Balance, December 31 | (44) | (47) |
Noncurrent contract assets | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, January 1 | (49) | |
Balance, December 31 | $ (47) | $ (49) |
Financial and capital managem_6
Financial and capital management - Details on Trade Receivables Not Impaired (Details) - Loan secured by trade receivables - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of internal credit grades [line items] | |||
Financial assets | $ 2,975 | $ 3,081 | $ 2,913 |
Trade receivables not past due | |||
Disclosure of internal credit grades [line items] | |||
Financial assets | 2,091 | 2,255 | 2,192 |
Trade receivables past due and not impaired | Under 60 days | |||
Disclosure of internal credit grades [line items] | |||
Financial assets | 508 | 491 | 286 |
Trade receivables past due and not impaired | 60 to 120 days | |||
Disclosure of internal credit grades [line items] | |||
Financial assets | 304 | 279 | 360 |
Trade receivables past due and not impaired | Over 120 days | |||
Disclosure of internal credit grades [line items] | |||
Financial assets | $ 72 | $ 56 | $ 75 |
Financial and capital managem_7
Financial and capital management - Maturity Analysis for Recognized Financial Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | $ 2,624 | ||
MLSE financial liability | 135 | $ 135 | $ 135 |
Gross carrying amount | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 20,324 | 19,317 | 17,902 |
Gross carrying amount | Notes payable | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 3,201 | 3,151 | 2,649 |
Gross carrying amount | Loans secured by trade receivables | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 919 | $ 921 | $ 931 |
Liquidity risk | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 10,226 | ||
Net interest receipts on cross currency basis swaps | (164) | ||
MLSE financial liability | 135 | ||
Total | 35,168 | ||
Liquidity risk | 2019 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 866 | ||
Net interest receipts on cross currency basis swaps | (6) | ||
MLSE financial liability | 135 | ||
Total | 5,760 | ||
Liquidity risk | 2020 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 751 | ||
Net interest receipts on cross currency basis swaps | (6) | ||
MLSE financial liability | 0 | ||
Total | 2,711 | ||
Liquidity risk | 2021 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 709 | ||
Net interest receipts on cross currency basis swaps | (6) | ||
MLSE financial liability | 0 | ||
Total | 3,322 | ||
Liquidity risk | 2022 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 648 | ||
Net interest receipts on cross currency basis swaps | (6) | ||
MLSE financial liability | 0 | ||
Total | 2,657 | ||
Liquidity risk | 2023 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 581 | ||
Net interest receipts on cross currency basis swaps | (6) | ||
MLSE financial liability | 0 | ||
Total | 2,435 | ||
Liquidity risk | THERE- AFTER | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Interest payable on long-term debt, notes payable and loan secured by trade receivables | 6,671 | ||
Net interest receipts on cross currency basis swaps | (134) | ||
MLSE financial liability | 0 | ||
Total | 18,283 | ||
Liquidity risk | Gross carrying amount | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 2,624 | ||
Liquidity risk | Gross carrying amount | 2019 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 586 | ||
Liquidity risk | Gross carrying amount | 2020 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 513 | ||
Liquidity risk | Gross carrying amount | 2021 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 344 | ||
Liquidity risk | Gross carrying amount | 2022 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 276 | ||
Liquidity risk | Gross carrying amount | 2023 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 238 | ||
Liquidity risk | Gross carrying amount | THERE- AFTER | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Minimum future lease payments under finance leases | 667 | ||
Liquidity risk | Gross carrying amount | Long-term debt | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 18,227 | ||
Liquidity risk | Gross carrying amount | Long-term debt | 2019 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 59 | ||
Liquidity risk | Gross carrying amount | Long-term debt | 2020 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 1,453 | ||
Liquidity risk | Gross carrying amount | Long-term debt | 2021 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 2,275 | ||
Liquidity risk | Gross carrying amount | Long-term debt | 2022 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 1,739 | ||
Liquidity risk | Gross carrying amount | Long-term debt | 2023 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 1,622 | ||
Liquidity risk | Gross carrying amount | Long-term debt | THERE- AFTER | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Long-term debt | 11,079 | ||
Liquidity risk | Gross carrying amount | Notes payable | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 3,201 | ||
Liquidity risk | Gross carrying amount | Notes payable | 2019 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 3,201 | ||
Liquidity risk | Gross carrying amount | Notes payable | 2020 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Notes payable | 2021 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Notes payable | 2022 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Notes payable | 2023 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Notes payable | THERE- AFTER | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 919 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2019 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 919 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2020 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2021 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2022 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | 2023 | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | 0 | ||
Liquidity risk | Gross carrying amount | Loans secured by trade receivables | THERE- AFTER | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Current borrowings | $ 0 |
Financial and capital managem_8
Financial and capital management - Details on Outstanding Foreign Currency Forward Contracts and Cross Currency Basis Swaps (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2017CAD ($) | |
Interest rate risk | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Percentage of possible change in risk variable | 1.00% | 1.00% | |||
Reasonably possible change in risk variable impact on net earnings | $ 31,000,000 | ||||
Equity price risk | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Percentage of possible change in risk variable | 5.00% | 5.00% | |||
Reasonably possible change in risk variable impact on net earnings | $ 34,000,000 | ||||
Currency risk | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Nominal amount of hedging instrument settled | $ 480,000,000 | $ 357 | |||
Percentage of possible change in risk variable | 10.00% | 10.00% | |||
Currency risk | Maturing in 2019 | Cash flow | Commercial paper | Amount to receive | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | $ 2,329 | ||||
Currency risk | Maturing in 2019 | Cash flow | Commercial paper | Amount to pay | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | $ 3,077,000,000 | ||||
Currency risk | Maturing in 2019 | Cash flow | Anticipated transactions | Amount to receive | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 15,000,000 | 779 | |||
Currency risk | Maturing in 2019 | Cash flow | Anticipated transactions | Amount to pay | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 973,000,000 | 12 | |||
Currency risk | Maturing in 2019 | Economic | Anticipated transactions | Amount to receive | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 120 | ||||
Currency risk | Maturing in 2019 | Economic | Anticipated transactions | Amount to pay | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 153,000,000 | ||||
Currency risk | Maturing in 2020 - 2021 | Cash flow | Anticipated transactions | Amount to receive | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 256 | ||||
Currency risk | Maturing in 2020 - 2021 | Cash flow | Anticipated transactions | Amount to pay | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 324,000,000 | ||||
Currency risk | Maturing in 2020 | Fair value hedges | Anticipated transactions | Amount to receive | Economic - call options | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 48 | ||||
Currency risk | Maturing in 2020 | Fair value hedges | Anticipated transactions | Amount to pay | Economic - call options | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 60,000,000 | ||||
Currency risk | Maturing in 2019 - 2020 | Fair value hedges | Anticipated transactions | Amount to receive | Economic - put options | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 60 | ||||
Currency risk | Maturing in 2019 - 2020 | Fair value hedges | Anticipated transactions | Amount to pay | Economic - put options | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 74,000,000 | ||||
Top of range | Currency risk | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Reasonably possible change in risk variable impact on net earnings | 2,000,000 | ||||
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income | 140,000,000 | ||||
Bottom of range | Currency risk | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Reasonably possible change in risk variable impact on net earnings | 0 | ||||
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income | (132,000,000) | ||||
Interest rate swap contract | Interest rate risk | Fair value hedges | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | 1,493,000,000 | $ 1,150 | |||
Forward contract | Equity price risk | Settlement of share-based compensation plans | |||||
Disclosure of detailed information about hedged items [line items] | |||||
Financial instruments designated as hedging instruments, at fair value | $ 45,000,000 | $ 73,000,000 | $ 111,000,000 |
Financial and capital managem_9
Financial and capital management - Capital Management (Details) | Feb. 06, 2019$ / shares$ / shares | Feb. 07, 2018$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares |
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Exceeded limit in internal net debt leverage ratio | 0.47 | |||
Summary Of Key Ratios [Abstract] | ||||
Net debt leverage ratio | 2.72 | 2.67 | ||
Adjusted EBITDA to net interest expense ratio | 9 | 9.23 | ||
Percentage of preferred shares included in debt leverage calculation | 50.00% | |||
Percentage of preferred shares included in adjusted EBITDA to net interest ratio | 50.00% | |||
Approved increase in annual dividend | 5.20% | |||
Dividends paid, ordinary shares per share | (per share) | $ 3.02 | $ 3.02 | $ 2.87 | |
Dividends declared | ||||
Summary Of Key Ratios [Abstract] | ||||
Approved increase in annual dividend | 5.00% | |||
Dividends paid, ordinary shares per share | $ 3.17 | |||
Dividends declared per common share (in CAD per share) | $ 0.7925 | |||
Bottom of range | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Target debt leverage ratio | 1.75 | 1.75 | ||
Target adjusted EBITDA to net interest expense ratio | 7.5 | 7.5 | ||
Top of range | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Target debt leverage ratio | 2.25 | 2.25 |
Share capital - Summary of Prin
Share capital - Summary of Principal Terms of Preference Shares (Details) - CAD ($) $ / shares in Units, $ in Millions | Sep. 30, 2018 | Sep. 29, 2018 | Mar. 01, 2018 | Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of classes of share capital [line items] | |||||||
Recurring redemption date term | 5 years | ||||||
Series Q | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 8,000,000 | ||||||
ISSUED (in shares) | 0 | ||||||
OUTSTANDING (in shares) | 0 | ||||||
STATED CAPITAL | $ 0 | $ 0 | $ 0 | ||||
Series R | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 4.13% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 8,000,000 | ||||||
ISSUED (in shares) | 8,000,000 | ||||||
OUTSTANDING (in shares) | 8,000,000 | ||||||
STATED CAPITAL | $ 200 | 200 | 200 | ||||
Recurring redemption date term | 5 years | ||||||
Series S | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 8,000,000 | ||||||
ISSUED (in shares) | 3,513,448 | ||||||
OUTSTANDING (in shares) | 3,513,448 | ||||||
STATED CAPITAL | $ 88 | 88 | 88 | ||||
Series T | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 3.019% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 8,000,000 | ||||||
ISSUED (in shares) | 4,486,552 | ||||||
OUTSTANDING (in shares) | 4,486,552 | ||||||
STATED CAPITAL | $ 112 | 112 | 112 | ||||
Recurring redemption date term | 5 years | ||||||
Series Y | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 10,000,000 | ||||||
ISSUED (in shares) | 8,081,491 | ||||||
OUTSTANDING (in shares) | 8,081,491 | ||||||
STATED CAPITAL | $ 202 | 202 | 219 | ||||
Series Z | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 3.904% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 10,000,000 | ||||||
ISSUED (in shares) | 1,918,509 | ||||||
OUTSTANDING (in shares) | 1,918,509 | ||||||
STATED CAPITAL | $ 48 | 48 | 31 | ||||
Recurring redemption date term | 5 years | ||||||
Series AA | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 3.61% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 20,000,000 | ||||||
ISSUED (in shares) | 11,398,396 | ||||||
OUTSTANDING (in shares) | 11,398,396 | ||||||
STATED CAPITAL | $ 291 | 291 | 259 | ||||
Recurring redemption date term | 5 years | ||||||
Series AB | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 20,000,000 | ||||||
ISSUED (in shares) | 8,601,604 | ||||||
OUTSTANDING (in shares) | 8,601,604 | ||||||
STATED CAPITAL | $ 219 | 219 | 251 | ||||
Series AC | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 4.38% | 3.55% | 4.38% | ||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 20,000,000 | ||||||
ISSUED (in shares) | 10,029,691 | ||||||
OUTSTANDING (in shares) | 5,069,935 | 5,069,935 | |||||
STATED CAPITAL | $ 256 | 129 | 129 | ||||
Recurring redemption date term | 5 years | ||||||
Series AD | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 20,000,000 | ||||||
ISSUED (in shares) | 9,970,309 | ||||||
OUTSTANDING (in shares) | 14,930,065 | 14,930,065 | |||||
STATED CAPITAL | $ 254 | 381 | 381 | ||||
Series AE | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 24,000,000 | ||||||
ISSUED (in shares) | 9,292,133 | ||||||
OUTSTANDING (in shares) | 9,292,133 | ||||||
STATED CAPITAL | $ 232 | 232 | 232 | ||||
Series AF | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 3.11% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 24,000,000 | ||||||
ISSUED (in shares) | 6,707,867 | ||||||
OUTSTANDING (in shares) | 6,707,867 | ||||||
STATED CAPITAL | $ 168 | 168 | 168 | ||||
Recurring redemption date term | 5 years | ||||||
Series AG | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 2.80% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 22,000,000 | ||||||
ISSUED (in shares) | 4,985,351 | ||||||
OUTSTANDING (in shares) | 4,985,351 | ||||||
STATED CAPITAL | $ 125 | 125 | 125 | ||||
Recurring redemption date term | 5 years | ||||||
Series AH | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 22,000,000 | ||||||
ISSUED (in shares) | 9,014,649 | ||||||
OUTSTANDING (in shares) | 9,014,649 | ||||||
STATED CAPITAL | $ 225 | 225 | 225 | ||||
Series AI | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 2.75% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 22,000,000 | ||||||
ISSUED (in shares) | 5,949,884 | ||||||
OUTSTANDING (in shares) | 5,949,884 | ||||||
STATED CAPITAL | $ 149 | 149 | 149 | ||||
Recurring redemption date term | 5 years | ||||||
Series AJ | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
AUTHORIZED (in shares) | 22,000,000 | ||||||
ISSUED (in shares) | 8,050,116 | ||||||
OUTSTANDING (in shares) | 8,050,116 | ||||||
STATED CAPITAL | $ 201 | 201 | 201 | ||||
Series AK | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 2.954% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 25,000,000 | ||||||
ISSUED (in shares) | 22,745,921 | ||||||
OUTSTANDING (in shares) | 22,745,921 | ||||||
STATED CAPITAL | $ 569 | 569 | 569 | ||||
Recurring redemption date term | 5 years | ||||||
Series AL | |||||||
Disclosure of classes of share capital [line items] | |||||||
AUTHORIZED (in shares) | 25,000,000 | ||||||
ISSUED (in shares) | 2,254,079 | ||||||
OUTSTANDING (in shares) | 2,254,079 | ||||||
STATED CAPITAL | $ 56 | 56 | 56 | ||||
Recurring redemption date term | 5 years | ||||||
Series AL | December 31, 2021 | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
Series AL | Any Date Not A Conversion Date | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
Series AM | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 2.764% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 9,546,615 | ||||||
OUTSTANDING (in shares) | 9,546,615 | ||||||
STATED CAPITAL | $ 218 | 218 | 218 | ||||
Recurring redemption date term | 5 years | ||||||
Series AN | |||||||
Disclosure of classes of share capital [line items] | |||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 1,953,385 | ||||||
OUTSTANDING (in shares) | 1,953,385 | ||||||
STATED CAPITAL | $ 45 | 45 | 45 | ||||
Recurring redemption date term | 5 years | ||||||
Series AN | March 31, 2021 | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
Series AN | Any Date Not A Conversion Date | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
Series AO | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 4.26% | ||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 4,600,000 | ||||||
OUTSTANDING (in shares) | 4,600,000 | ||||||
STATED CAPITAL | $ 118 | 118 | 118 | ||||
Recurring redemption date term | 5 years | ||||||
Series AP | |||||||
Disclosure of classes of share capital [line items] | |||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 0 | ||||||
OUTSTANDING (in shares) | 0 | ||||||
STATED CAPITAL | $ 0 | 0 | 0 | ||||
Recurring redemption date term | 5 years | ||||||
Series AP | March 31, 2027 | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
Series AP | After March 31, 2017 And Any Date Not A Conversion Date | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
Series AQ | |||||||
Disclosure of classes of share capital [line items] | |||||||
ANNUAL DIVIDEND RATE | 4.812% | 4.25% | 4.812% | ||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 9,200,000 | ||||||
OUTSTANDING (in shares) | 9,200,000 | ||||||
STATED CAPITAL | $ 228 | 228 | 228 | ||||
Recurring redemption date term | 5 years | ||||||
Series AR | |||||||
Disclosure of classes of share capital [line items] | |||||||
AUTHORIZED (in shares) | 30,000,000 | ||||||
ISSUED (in shares) | 0 | ||||||
OUTSTANDING (in shares) | 0 | ||||||
STATED CAPITAL | $ 0 | 0 | 0 | ||||
Recurring redemption date term | 5 years | ||||||
Series AR | September 30, 2023 | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25 | ||||||
Series AR | After September 30, 2023 And Any Date Not A Conversion Date | |||||||
Disclosure of classes of share capital [line items] | |||||||
REDEMPTION PRICE (cad per share) | $ 25.50 | ||||||
Preferred shares | |||||||
Disclosure of classes of share capital [line items] | |||||||
STATED CAPITAL | $ 4,004 | $ 4,004 | $ 4,004 |
Share capital - Narrative (Deta
Share capital - Narrative (Details) $ in Millions | Sep. 30, 2018 | Sep. 29, 2018 | Mar. 01, 2018shares | Feb. 28, 2018 | Mar. 31, 2018CAD ($)shares | Dec. 31, 2018voteshares | Dec. 31, 2017shares | Dec. 31, 2016shares |
Disclosure of classes of share capital [line items] | ||||||||
Stock repurchased during period (in shares) | 3,085,697 | |||||||
Repurchase of common shares | $ | $ 175 | |||||||
Issued capital | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Repurchase of common shares | $ | 69 | |||||||
Contributed surplus | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Repurchase of common shares | $ | 3 | |||||||
Deficit | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Repurchase of common shares | $ | $ 103 | |||||||
Preferred shares | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Special circumstance vote per share | vote | 1 | |||||||
Share conversion ratio | 1 | |||||||
Series R | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 4.13% | |||||||
Number of shares outstanding (in shares) | 8,000,000 | |||||||
Series T | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 3.019% | |||||||
Number of shares outstanding (in shares) | 4,486,552 | |||||||
Series Z | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 3.904% | |||||||
Number of shares outstanding (in shares) | 1,918,509 | |||||||
Series AA | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 3.61% | |||||||
Number of shares outstanding (in shares) | 11,398,396 | |||||||
Series AC | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | 5 years | ||||||
Share conversion ratio | 1 | |||||||
Annual dividend rate | 4.38% | 3.55% | 4.38% | |||||
Shares converted (in shares) | 397,181 | |||||||
Number of shares outstanding (in shares) | 5,069,935 | 5,069,935 | ||||||
Series AF | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 3.11% | |||||||
Number of shares outstanding (in shares) | 6,707,867 | |||||||
Series AG | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 2.80% | |||||||
Number of shares outstanding (in shares) | 4,985,351 | |||||||
Series AI | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 2.75% | |||||||
Number of shares outstanding (in shares) | 5,949,884 | |||||||
Series AK | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 2.954% | |||||||
Number of shares outstanding (in shares) | 22,745,921 | |||||||
Series AM | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 2.764% | |||||||
Number of shares outstanding (in shares) | 9,546,615 | |||||||
Series AO | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | |||||||
Annual dividend rate | 4.26% | |||||||
Number of shares outstanding (in shares) | 4,600,000 | |||||||
Series AQ | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividend rate reset term | 5 years | 5 years | ||||||
Annual dividend rate | 4.812% | 4.25% | 4.812% | |||||
Number of shares outstanding (in shares) | 9,200,000 | |||||||
Series AD | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Share conversion ratio | 1 | |||||||
Shares converted (in shares) | 5,356,937 | |||||||
Number of shares outstanding (in shares) | 14,930,065 | 14,930,065 | ||||||
Class B | Issued capital | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares outstanding (in shares) | 0 | 0 | 0 |
Share capital - Summary of Outs
Share capital - Summary of Outstanding Common Shares (Details) - CAD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
NUMBER OF SHARES | |||
Shares issued for acquisitions | $ 1 | $ 1,594 | |
Shares issued under employee stock option plan (in shares) | 266,941 | 2,555,863 | |
Shares issued under employee stock option plan | $ 12 | $ 116 | |
Repurchase of common shares (in shares) | (3,085,697) | ||
Repurchase of common shares | $ (175) | ||
Shares issued under ESP | 5 | ||
Common shares | |||
NUMBER OF SHARES | |||
Stated capital beginning of period | 20,091 | 20,091 | |
Stated capital end of period | $ 20,036 | $ 20,091 | |
Issued capital | |||
NUMBER OF SHARES | |||
Repurchase of common shares | $ (69) | ||
Issued capital | Common shares | |||
NUMBER OF SHARES | |||
Number of shares beginning of period (in shares) | 900,996,640 | 900,996,640 | 870,706,332 |
Stated capital beginning of period | $ 20,091 | $ 20,091 | $ 18,370 |
Shares issued for acquisitions | $ 1 | $ 1,594 | |
Shares issued under employee stock option plan (in shares) | 266,941 | 2,555,863 | |
Shares issued under employee stock option plan | $ 13 | $ 122 | |
Repurchase of common shares (in shares) | (3,085,697) | 0 | |
Repurchase of common shares | $ (69) | $ 0 | |
Shares issued under ESP (in shares) | 0 | 91,731 | |
Shares issued under ESP | $ 0 | $ 5 | |
Number of shares end of period (in shares) | 898,200,415 | 900,996,640 | |
Stated capital end of period | $ 20,036 | $ 20,091 | |
Issued capital | Common shares | AlarmForce | |||
NUMBER OF SHARES | |||
Shares issued for acquisitions (in shares) | 22,531 | ||
Shares issued for acquisitions | $ 1 | ||
Issued capital | Common shares | MTS | |||
NUMBER OF SHARES | |||
Shares issued for acquisitions (in shares) | 27,642,714 | ||
Shares issued for acquisitions | $ 1,594 |
Share-based payments - Share-ba
Share-based payments - Share-based Payment Amounts Included in the Income Statements as Operating Costs (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based payments | $ (89) | $ (81) |
ESP | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based payments | (29) | (28) |
RSUs/PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based payments | (50) | (44) |
Other | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based payments | $ (10) | $ (9) |
Share-based payments - Narrativ
Share-based payments - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares authorized (in shares) | 5,591,566 | ||
ESP | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Maximum employee contribution rate | 12.00% | ||
Award vesting period | 2 years | ||
RSUs/PSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting period | 3 years | ||
DSP | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share-based payment transactions | $ 26 | $ 30 | $ 37 |
Stock Options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting period | 3 years | ||
Number of shares authorized (in shares) | 10,737,659 | ||
Award exercise period | 7 years | ||
Top of range | ESP | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Maximum employer contribution rate | 2.00% | ||
Bottom of range | DSU | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percent of employee compensation paid in DSUs after minimum share ownership requirement | 50.00% |
Share-based payments - ESP Opti
Share-based payments - ESP Option Activity (Details) - ESP | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance, outstanding (in shares) | 1,039,030 | 1,073,212 |
Contributions (in shares) | 671,911 | 610,657 |
Dividends credited (in shares) | 56,926 | 49,299 |
Vested (in shares) | (501,089) | (553,837) |
Forfeited (in shares) | (146,352) | (140,301) |
Ending balance, outstanding (in shares) | 1,120,426 | 1,039,030 |
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 55 | $ 60 |
Share-based payments - Outstand
Share-based payments - Outstanding RSUs/PSUs Activity (Details) - RSUs/PSUs | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance, outstanding (in shares) | 2,740,392 | 2,928,698 |
Granted (in shares) | 1,006,586 | 879,626 |
Dividends credited (in shares) | 149,258 | 132,402 |
Settled (in shares) | (1,027,321) | (1,096,403) |
Forfeited (in shares) | (56,218) | (103,931) |
Ending balance, outstanding (in shares) | 2,812,697 | 2,740,392 |
Vested (in shares) | 880,903 | 985,382 |
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 57 | $ 58 |
Share-based payments - Outsta_2
Share-based payments - Outstanding DSUs Activity (Details) - Deferred Stock Units (DSU) | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Beginning balance, outstanding (in shares) | 4,309,528 | 4,131,229 |
Issued (in shares) | 94,580 | 69,742 |
Settlement of RSUs/PSUs (in shares) | 112,675 | 101,066 |
Dividends credited (in shares) | 240,879 | 203,442 |
Settled (in shares) | (365,665) | (195,951) |
Ending balance, outstanding (in shares) | 4,391,997 | 4,309,528 |
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 55 | $ 59 |
Share-based payments - Outsta_3
Share-based payments - Outstanding Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares$ / shares | Dec. 31, 2017CAD ($)shares$ / shares | |
Share-based Payment Arrangements [Abstract] | ||
Outstanding, beginning balance (in shares) | shares | 10,490,249 | 10,242,162 |
Granted (in shares) | shares | 3,888,693 | 3,043,448 |
Exercised (in shares) | shares | (266,941) | (2,555,863) |
Forfeited (in shares) | shares | (39,669) | (239,498) |
Outstanding, ending balance (in shares) | shares | 14,072,332 | 10,490,249 |
Exercisable (in shares) | shares | 4,399,588 | 2,013,983 |
Weighted average exercise price of share options outstanding, beginning balance (CAD per share) | $ | $ 55 | $ 52 |
Weighted average exercise price of share options granted (CAD per share) | $ | 56 | 59 |
Weighted average exercise price of share options exercised (CAD per share) | $ | 42 | 45 |
Weighted average exercise price of share options forfeited (CAD per share) | $ | 58 | 58 |
Weighted average exercise price of share options outstanding, ending balance (CAD per share) | $ | 56 | 55 |
Weighted average exercise price of share options exercisable (CAD per share) | $ | $ 52 | $ 45 |
Weighted average share price, share options exercised (CAD per share) | $ / shares | $ 55 | $ 60 |
Share-based payments - Stock Op
Share-based payments - Stock Options Exercise Prices and Weighted Average Remaining Life (Details) | Dec. 31, 2018CAD ($)sharesyear | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
NUMBER (in shares) | shares | 14,072,332 | 10,490,249 | 10,242,162 |
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year | 4 | ||
WEIGHTED AVERAGE EXERCISE PRICE ($) | $ 56 | $ 55 | $ 52 |
$40-$49 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
NUMBER (in shares) | shares | 1,747,042 | ||
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year | 2 | ||
WEIGHTED AVERAGE EXERCISE PRICE ($) | $ 46 | ||
$40-$49 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | 40 | ||
$40-$49 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ 49 | ||
$50-$59 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
NUMBER (in shares) | shares | 12,232,011 | ||
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year | 5 | ||
WEIGHTED AVERAGE EXERCISE PRICE ($) | $ 57 | ||
$50-$59 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | 50 | ||
$50-$59 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ 59 | ||
$60 & above | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
NUMBER (in shares) | shares | 93,279 | ||
WEIGHTED AVERAGE REMAINING LIFE (YEARS) | year | 5 | ||
WEIGHTED AVERAGE EXERCISE PRICE ($) | $ 61 | ||
$60 & above | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ 60 |
Share-based payments - Fair Val
Share-based payments - Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($)year | |
Share-based Payment Arrangements [Abstract] | |
Weighted average fair value per option granted (CAD per share) | $ 2.13 |
Weighted average share price (CAD per share) | 57 |
Weighted average exercise price (CAD per share) | $ 56 |
Dividend yield | 5.00% |
Expected volatility | 12.00% |
Risk-free interest rate | 2.00% |
Expected life (years) | year | 4 |
Additional cash flow informat_3
Additional cash flow information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in liabilities arising from financing activities [abstract] | ||
Beginning balance | $ 24,125 | $ 22,045 |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | (123) | 333 |
Issue of long-term debt | 2,996 | 3,011 |
Repayment of long-term debt | (2,713) | (2,653) |
Cash dividends paid on common and preferred shares | (2,828) | (2,639) |
Cash dividends paid by subsidiaries to non-controlling interests | (16) | (34) |
Other financing activities | (77) | (60) |
Total cash flows from (used in) financing activities excluding equity | (2,761) | (2,042) |
Non-cash changes arising from | ||
Finance lease additions | 414 | 339 |
Dividends declared on common and preferred shares | 2,856 | 2,692 |
Dividends declared by subsidiaries to non-controlling interests | 5 | 45 |
Effect of changes in foreign exchange rates | 0 | 0 |
Business acquisitions | 96 | 972 |
Other | 192 | 74 |
Total non-cash changes | 3,563 | 4,122 |
Ending balance | 24,927 | 24,125 |
DEBT DUE WITHIN ONE YEAR AND LONG-TERM DEBT | ||
Changes in liabilities arising from financing activities [abstract] | ||
Beginning balance | 23,393 | 21,459 |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | (241) | 452 |
Issue of long-term debt | 2,996 | 3,011 |
Repayment of long-term debt | (2,713) | (2,653) |
Cash dividends paid on common and preferred shares | 0 | 0 |
Cash dividends paid by subsidiaries to non-controlling interests | 0 | 0 |
Other financing activities | (42) | (44) |
Total cash flows from (used in) financing activities excluding equity | 0 | 766 |
Non-cash changes arising from | ||
Finance lease additions | 414 | 339 |
Dividends declared on common and preferred shares | 0 | 0 |
Dividends declared by subsidiaries to non-controlling interests | 0 | 0 |
Effect of changes in foreign exchange rates | 341 | (198) |
Business acquisitions | 96 | 972 |
Other | 161 | 55 |
Total non-cash changes | 1,012 | 1,168 |
Ending balance | 24,405 | 23,393 |
DERIVATIVE TO HEDGE FOREIGN CURRENCY ON DEBT | ||
Changes in liabilities arising from financing activities [abstract] | ||
Beginning balance | 54 | (31) |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | 118 | (119) |
Issue of long-term debt | 0 | 0 |
Repayment of long-term debt | 0 | 0 |
Cash dividends paid on common and preferred shares | 0 | 0 |
Cash dividends paid by subsidiaries to non-controlling interests | 0 | 0 |
Other financing activities | 0 | 6 |
Total cash flows from (used in) financing activities excluding equity | 118 | (113) |
Non-cash changes arising from | ||
Finance lease additions | 0 | 0 |
Dividends declared on common and preferred shares | 0 | 0 |
Dividends declared by subsidiaries to non-controlling interests | 0 | 0 |
Effect of changes in foreign exchange rates | (341) | 198 |
Business acquisitions | 0 | 0 |
Other | 0 | 0 |
Total non-cash changes | (341) | 198 |
Ending balance | (169) | 54 |
DIVIDENDS PAYABLE | ||
Changes in liabilities arising from financing activities [abstract] | ||
Beginning balance | 678 | 617 |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | 0 | 0 |
Issue of long-term debt | 0 | 0 |
Repayment of long-term debt | 0 | 0 |
Cash dividends paid on common and preferred shares | (2,828) | (2,639) |
Cash dividends paid by subsidiaries to non-controlling interests | (16) | (34) |
Other financing activities | 0 | 0 |
Total cash flows from (used in) financing activities excluding equity | (2,844) | (2,673) |
Non-cash changes arising from | ||
Finance lease additions | 0 | 0 |
Dividends declared on common and preferred shares | 2,856 | 2,692 |
Dividends declared by subsidiaries to non-controlling interests | 5 | 45 |
Effect of changes in foreign exchange rates | 0 | 0 |
Business acquisitions | 0 | 0 |
Other | (4) | (3) |
Total non-cash changes | 2,857 | 2,734 |
Ending balance | 691 | 678 |
OTHER LIABILITIES | ||
Changes in liabilities arising from financing activities [abstract] | ||
Beginning balance | 0 | 0 |
Cash flows used in financing activities | ||
(Decrease) increase in notes payable | 0 | 0 |
Issue of long-term debt | 0 | 0 |
Repayment of long-term debt | 0 | 0 |
Cash dividends paid on common and preferred shares | 0 | 0 |
Cash dividends paid by subsidiaries to non-controlling interests | 0 | 0 |
Other financing activities | (35) | (22) |
Total cash flows from (used in) financing activities excluding equity | (35) | (22) |
Non-cash changes arising from | ||
Finance lease additions | 0 | 0 |
Dividends declared on common and preferred shares | 0 | 0 |
Dividends declared by subsidiaries to non-controlling interests | 0 | 0 |
Effect of changes in foreign exchange rates | 0 | 0 |
Business acquisitions | 0 | 0 |
Other | 35 | 22 |
Total non-cash changes | 35 | 22 |
Ending balance | $ 0 | $ 0 |
Remaining performance obligat_3
Remaining performance obligations (Details) $ in Millions | Dec. 31, 2018CAD ($) |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | $ 5,761 |
2019 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 2,998 |
2020 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 1,602 |
2021 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 605 |
2022 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 305 |
2023 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 114 |
THEREAFTER | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 137 |
Wireline | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 3,016 |
Wireline | 2019 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 1,261 |
Wireline | 2020 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 821 |
Wireline | 2021 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 512 |
Wireline | 2022 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 261 |
Wireline | 2023 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 81 |
Wireline | THEREAFTER | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 80 |
Wireless | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 2,745 |
Wireless | 2019 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 1,737 |
Wireless | 2020 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 781 |
Wireless | 2021 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 93 |
Wireless | 2022 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 44 |
Wireless | 2023 | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | 33 |
Wireless | THEREAFTER | |
Disclosure of performance obligations [line items] | |
Remaining performance obligations | $ 57 |
Commitments and contingencies_2
Commitments and contingencies (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of contingent liabilities [line items] | ||
Operating leases | $ 1,612 | |
Commitments for property, plant and equipment and intangible assets | 4,003 | |
Purchase obligations | 2,851 | |
Total | 8,466 | |
Operating leases, rent expense | $ 352 | $ 399 |
Bottom of range | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases, term of contract | 1 year | |
Top of range | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases, term of contract | 40 years | |
2019 | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | $ 317 | |
Commitments for property, plant and equipment and intangible assets | 1,029 | |
Purchase obligations | 618 | |
Total | 1,964 | |
2020 | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | 286 | |
Commitments for property, plant and equipment and intangible assets | 784 | |
Purchase obligations | 525 | |
Total | 1,595 | |
2021 | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | 244 | |
Commitments for property, plant and equipment and intangible assets | 623 | |
Purchase obligations | 484 | |
Total | 1,351 | |
2022 | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | 187 | |
Commitments for property, plant and equipment and intangible assets | 484 | |
Purchase obligations | 434 | |
Total | 1,105 | |
2023 | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | 142 | |
Commitments for property, plant and equipment and intangible assets | 385 | |
Purchase obligations | 271 | |
Total | 798 | |
THERE- AFTER | ||
Disclosure of contingent liabilities [line items] | ||
Operating leases | 436 | |
Commitments for property, plant and equipment and intangible assets | 698 | |
Purchase obligations | 519 | |
Total | $ 1,653 |
Related party transactions - Su
Related party transactions - Summary of Significant Subsidiaries (Details) - SUBSIDIARY | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Bell Canada | ||
Disclosure of transactions between related parties [line items] | ||
OWNERSHIP PERCENTAGE | 100.00% | 100.00% |
Bell Mobility | ||
Disclosure of transactions between related parties [line items] | ||
OWNERSHIP PERCENTAGE | 100.00% | 100.00% |
Bell Media | ||
Disclosure of transactions between related parties [line items] | ||
OWNERSHIP PERCENTAGE | 100.00% | 100.00% |
Related party transactions - Na
Related party transactions - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Associates and Joint Arrangements | ||
Disclosure of transactions between related parties [line items] | ||
Recognized revenue, related parties | $ 17 | $ 11 |
Incurred expenses, related parties | 187 | 177 |
Master Trust Fund | Bell Canada | ||
Disclosure of transactions between related parties [line items] | ||
Recognized revenue, related parties | $ 11 | $ 10 |
Related party transactions - Co
Related party transactions - Compensation of Key Management Personnel (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party [Abstract] | ||
Wages, salaries, fees and related taxes and benefits | $ (27) | $ (23) |
Post-employment benefit plans and OPEBs cost | (4) | (3) |
Share-based compensation | (23) | (23) |
Key management personnel and board of directors compensation expense | $ (54) | $ (49) |
Significant partly-owned subs_3
Significant partly-owned subsidiaries - Summarized Statements of Financial Position (Details) - CAD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Disclosure of subsidiaries [line items] | ||||
Current assets | $ 5,793 | $ 5,655 | $ 5,754 | |
Non-current assets | 51,307 | 50,147 | 45,793 | |
Total assets | 57,100 | 55,802 | 51,547 | |
Current liabilities | 10,429 | 10,732 | 10,098 | |
Non-current liabilities | 25,982 | 24,445 | 22,533 | |
Total liabilities | 36,411 | 35,177 | 32,631 | |
Total equity attributable to BCE shareholders | 20,363 | 20,302 | 18,602 | |
NCI | 326 | 323 | 314 | |
CTV Specialty hedge | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 337 | 328 | 293 | |
Non-current assets | 993 | 1,013 | 1,013 | |
Total assets | 1,330 | 1,341 | 1,306 | |
Current liabilities | 142 | 153 | 130 | |
Non-current liabilities | 201 | 184 | 195 | |
Total liabilities | 343 | 337 | 325 | |
Total equity attributable to BCE shareholders | 685 | 700 | 687 | |
NCI | $ 302 | $ 304 | 294 | |
Proportion of ownership interests held by non-controlling interests | 29.90% | 29.90% | 29.90% | |
Net assets | $ 10 | $ 6 | $ 2 |
Significant partly-owned subs_4
Significant partly-owned subsidiaries - Selected Income and Cash Flow Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | ||
Total operating revenues | $ 23,468 | $ 22,757 |
Net earnings | 2,973 | 3,050 |
Net earnings attributable to NCI | 44 | 56 |
Total comprehensive income | 3,150 | 2,739 |
Total comprehensive income attributable to NCI | 49 | 54 |
Subsidiaries with material non-controlling interests | ||
Disclosure of subsidiaries [line items] | ||
Total operating revenues | 857 | 832 |
Net earnings | 131 | 179 |
Net earnings attributable to NCI | 42 | 56 |
Total comprehensive income | 149 | 172 |
Total comprehensive income attributable to NCI | 47 | 54 |
Cash dividends paid to NCI | 16 | 34 |
CTV Specialty hedge | ||
Disclosure of subsidiaries [line items] | ||
Total comprehensive income attributable to NCI | $ 4 | $ 3 |
Adoption of IFRS 15 - Consolida
Adoption of IFRS 15 - Consolidated Income Statements (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)$ / sharesshares | Dec. 31, 2017$ / shares | |
Disclosure of initial application of standards or interpretations [line items] | |||
Total operating revenues | $ 23,468 | $ 22,757 | |
Operating costs | (13,933) | (13,475) | |
Severance, acquisition and other costs | (136) | (190) | |
Depreciation | (3,145) | (3,034) | |
Amortization | (869) | (810) | |
Finance costs | |||
Interest expense | (1,000) | (955) | |
Interest on post-employment benefit obligations | (69) | (72) | |
Other expense | (348) | (102) | |
Income taxes | (995) | (1,069) | |
Net earnings (losses) | 2,973 | 3,050 | |
Net earnings attributable to: | |||
Common shareholders | 2,785 | 2,866 | |
Preferred shareholders | 144 | 128 | |
Non-controlling interest | 44 | 56 | |
Net earnings (losses) | $ 2,973 | $ 3,050 | |
Net earnings per common share - basic (in cad per share) | $ / shares | $ 3.20 | ||
Net earnings per common share - diluted (in cad per share) | $ / shares | $ 3.20 | ||
Average number of common shares outstanding - basic (millions) (in shares) | shares | 898.6 | 894.3 | |
2017 as previously reported | IFRS 15 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Total operating revenues | $ 22,719 | ||
Operating costs | (13,541) | ||
Severance, acquisition and other costs | (190) | ||
Depreciation | (3,037) | ||
Amortization | (813) | ||
Finance costs | |||
Interest expense | (955) | ||
Interest on post-employment benefit obligations | (72) | ||
Other expense | (102) | ||
Income taxes | (1,039) | ||
Net earnings (losses) | 2,970 | ||
Net earnings attributable to: | |||
Common shareholders | 2,786 | ||
Preferred shareholders | 128 | ||
Non-controlling interest | 56 | ||
Net earnings (losses) | $ 2,970 | ||
Net earnings per common share - basic (in cad per share) | $ / shares | $ 3.12 | ||
Net earnings per common share - diluted (in cad per share) | $ / shares | $ 3.11 | ||
Average number of common shares outstanding - basic (millions) (in shares) | shares | 894.3 | ||
IFRS 15 impacts | IFRS 15 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Total operating revenues | $ 38 | ||
Operating costs | 66 | ||
Severance, acquisition and other costs | 0 | ||
Depreciation | 3 | ||
Amortization | 3 | ||
Finance costs | |||
Interest expense | 0 | ||
Interest on post-employment benefit obligations | 0 | ||
Other expense | 0 | ||
Income taxes | (30) | ||
Net earnings (losses) | 80 | ||
Net earnings attributable to: | |||
Common shareholders | 80 | ||
Preferred shareholders | 0 | ||
Non-controlling interest | 0 | ||
Net earnings (losses) | $ 80 | ||
Net earnings per common share - basic (in cad per share) | $ / shares | $ 0.08 | ||
Net earnings per common share - diluted (in cad per share) | $ / shares | $ 0.09 | ||
Average number of common shares outstanding - basic (millions) (in shares) | shares | 0 |
Adoption of IFRS 15 - Consoli_2
Adoption of IFRS 15 - Consolidated Statement of Financial Position (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash | $ 425 | $ 442 | $ 603 | $ 603 | |
Cash equivalents | 0 | 183 | 250 | 250 | |
Trade and other receivables | 3,006 | 3,129 | 2,988 | ||
Inventory | 432 | 380 | 403 | ||
Contract assets | 987 | 832 | 738 | ||
Contract costs | 370 | 350 | 343 | ||
Prepaid expenses | 244 | 217 | 231 | ||
Other current assets | 329 | 122 | 198 | ||
Total current assets | 5,793 | 5,655 | 5,754 | ||
Contract assets | 506 | 431 | 383 | ||
Contract costs | 337 | 286 | 275 | ||
Property, plant and equipment | 24,844 | 24,029 | 22,341 | 22,341 | |
Intangible assets | 13,205 | 13,258 | 11,998 | 11,998 | |
Deferred tax assets | 112 | 144 | 89 | ||
Investments in associates and joint ventures | 798 | 814 | 852 | ||
Other non-current assets | 847 | 757 | 897 | ||
Goodwill | 10,658 | 10,428 | 8,958 | ||
Total non-current assets | 51,307 | 50,147 | 45,793 | ||
Total assets | 57,100 | 55,802 | 51,547 | ||
Trade payables and other liabilities | 3,941 | 3,875 | 3,671 | ||
Contract liabilities | 703 | 693 | 645 | ||
Interest payable | 196 | 168 | 156 | ||
Dividends payable | 691 | 678 | 617 | ||
Current tax liabilities | 253 | 140 | 122 | ||
Debt due within one year | 4,645 | 5,178 | 4,887 | ||
Total current liabilities | 10,429 | 10,732 | 10,098 | ||
Contract liabilities | 196 | 201 | 203 | ||
Long-term debt | 19,760 | 18,215 | 16,572 | ||
Deferred tax liabilities | 3,163 | 2,870 | 2,585 | ||
Post-employment benefit obligations | 1,866 | 2,108 | 2,105 | ||
Other non-current liabilities | 997 | 1,051 | 1,068 | ||
Total non-current liabilities | 25,982 | 24,445 | 22,533 | ||
Total liabilities | 36,411 | 35,177 | 32,631 | ||
Contributed surplus | 1,170 | 1,162 | 1,160 | ||
Accumulated other comprehensive (loss) income | 90 | (17) | 46 | ||
Deficit | (4,937) | (4,938) | (4,978) | ||
Total equity attributable to BCE shareholders | 20,363 | 20,302 | 18,602 | ||
Non-controlling interest | 326 | 323 | 314 | ||
Total equity | 20,689 | $ 20,621 | 20,625 | 18,916 | $ 18,916 |
Total liabilities and equity | 57,100 | 55,802 | 51,547 | ||
Preferred shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 4,004 | 4,004 | 4,004 | ||
Common shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | $ 20,036 | 20,091 | 18,370 | ||
2017 as previously reported | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Total equity | 20,625 | ||||
IFRS 15 | 2017 as previously reported | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash | 442 | 603 | |||
Cash equivalents | 183 | 250 | |||
Trade and other receivables | 3,135 | 2,979 | |||
Inventory | 380 | 403 | |||
Contract assets | 0 | 0 | |||
Contract costs | 0 | 0 | |||
Prepaid expenses | 375 | 420 | |||
Other current assets | 124 | 200 | |||
Total current assets | 4,639 | 4,855 | |||
Contract assets | 0 | 0 | |||
Contract costs | 0 | 0 | |||
Property, plant and equipment | 24,033 | 22,346 | |||
Intangible assets | 13,305 | 11,998 | |||
Deferred tax assets | 144 | 89 | |||
Investments in associates and joint ventures | 814 | 852 | |||
Other non-current assets | 900 | 1,010 | |||
Goodwill | 10,428 | 8,958 | |||
Total non-current assets | 49,624 | 45,253 | |||
Total assets | 54,263 | 50,108 | |||
Trade payables and other liabilities | 4,623 | 4,326 | |||
Contract liabilities | 0 | 0 | |||
Interest payable | 168 | 156 | |||
Dividends payable | 678 | 617 | |||
Current tax liabilities | 140 | 122 | |||
Debt due within one year | 5,178 | 4,887 | |||
Total current liabilities | 10,787 | 10,108 | |||
Contract liabilities | 0 | 0 | |||
Long-term debt | 18,215 | 16,572 | |||
Deferred tax liabilities | 2,447 | 2,192 | |||
Post-employment benefit obligations | 2,108 | 2,105 | |||
Other non-current liabilities | 1,223 | 1,277 | |||
Total non-current liabilities | 23,993 | 22,146 | |||
Total liabilities | 34,780 | 32,254 | |||
Contributed surplus | 1,162 | 1,160 | |||
Accumulated other comprehensive (loss) income | (17) | 46 | |||
Deficit | (6,080) | (6,040) | |||
Total equity attributable to BCE shareholders | 19,160 | 17,540 | |||
Non-controlling interest | 323 | 314 | |||
Total equity | 19,483 | 17,854 | |||
Total liabilities and equity | 54,263 | 50,108 | |||
IFRS 15 | 2017 as previously reported | Preferred shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 4,004 | 4,004 | |||
IFRS 15 | 2017 as previously reported | Common shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 20,091 | 18,370 | |||
IFRS 15 | IFRS 15 impacts | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash | 0 | 0 | |||
Cash equivalents | 0 | 0 | |||
Trade and other receivables | 9 | 11 | |||
Inventory | 0 | 0 | |||
Contract assets | 923 | 851 | |||
Contract costs | 206 | 195 | |||
Prepaid expenses | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | 1,138 | 1,057 | |||
Contract assets | 400 | 357 | |||
Contract costs | 162 | 151 | |||
Property, plant and equipment | (4) | (5) | |||
Intangible assets | 0 | 0 | |||
Deferred tax assets | 0 | 0 | |||
Investments in associates and joint ventures | 0 | 0 | |||
Other non-current assets | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Total non-current assets | 558 | 503 | |||
Total assets | 1,696 | 1,560 | |||
Trade payables and other liabilities | 0 | 0 | |||
Contract liabilities | 97 | 71 | |||
Interest payable | 0 | 0 | |||
Dividends payable | 0 | 0 | |||
Current tax liabilities | 0 | 0 | |||
Debt due within one year | 0 | 0 | |||
Total current liabilities | 97 | 71 | |||
Contract liabilities | 34 | 34 | |||
Long-term debt | 0 | 0 | |||
Deferred tax liabilities | 423 | 393 | |||
Post-employment benefit obligations | 0 | 0 | |||
Other non-current liabilities | 0 | 0 | |||
Total non-current liabilities | 457 | 427 | |||
Total liabilities | 554 | 498 | |||
Contributed surplus | 0 | 0 | |||
Accumulated other comprehensive (loss) income | 0 | 0 | |||
Deficit | 1,142 | 1,062 | |||
Total equity attributable to BCE shareholders | 1,142 | 1,062 | |||
Non-controlling interest | 0 | 0 | |||
Total equity | 1,142 | 1,062 | |||
Total liabilities and equity | 1,696 | 1,560 | |||
IFRS 15 | IFRS 15 impacts | Preferred shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 0 | 0 | |||
IFRS 15 | IFRS 15 impacts | Common shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 0 | 0 | |||
IFRS 15 | Reclassifications | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Cash | 0 | 0 | |||
Cash equivalents | 0 | 0 | |||
Trade and other receivables | (15) | (2) | |||
Inventory | 0 | 0 | |||
Contract assets | (91) | (113) | |||
Contract costs | 144 | 148 | |||
Prepaid expenses | (158) | (189) | |||
Other current assets | (2) | (2) | |||
Total current assets | (122) | (158) | |||
Contract assets | 31 | 26 | |||
Contract costs | 124 | 124 | |||
Property, plant and equipment | 0 | 0 | |||
Intangible assets | (47) | 0 | |||
Deferred tax assets | 0 | 0 | |||
Investments in associates and joint ventures | 0 | 0 | |||
Other non-current assets | (143) | (113) | |||
Goodwill | 0 | 0 | |||
Total non-current assets | (35) | 37 | |||
Total assets | (157) | (121) | |||
Trade payables and other liabilities | (748) | (655) | |||
Contract liabilities | 596 | 574 | |||
Interest payable | 0 | 0 | |||
Dividends payable | 0 | 0 | |||
Current tax liabilities | 0 | 0 | |||
Debt due within one year | 0 | 0 | |||
Total current liabilities | (152) | (81) | |||
Contract liabilities | 167 | 169 | |||
Long-term debt | 0 | 0 | |||
Deferred tax liabilities | 0 | 0 | |||
Post-employment benefit obligations | 0 | 0 | |||
Other non-current liabilities | (172) | (209) | |||
Total non-current liabilities | (5) | (40) | |||
Total liabilities | (157) | (121) | |||
Contributed surplus | 0 | 0 | |||
Accumulated other comprehensive (loss) income | 0 | 0 | |||
Deficit | 0 | 0 | |||
Total equity attributable to BCE shareholders | 0 | 0 | |||
Non-controlling interest | 0 | 0 | |||
Total equity | 0 | 0 | |||
Total liabilities and equity | (157) | (121) | |||
IFRS 15 | Reclassifications | Preferred shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | 0 | 0 | |||
IFRS 15 | Reclassifications | Common shares | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Shares | $ 0 | $ 0 |
Adoption of IFRS 15 - Reconcili
Adoption of IFRS 15 - Reconciliation of Deficit (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deficit | $ (4,937) | $ (4,938) | $ (4,978) |
2017 as previously reported | IFRS 15 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deficit | (6,080) | (6,040) | |
IFRS 15 impacts | IFRS 15 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deficit | 1,142 | 1,062 | |
Timing of revenue recognition | IFRS 15 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deficit | 873 | 809 | |
Cost to obtain a contract | IFRS 15 | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Deficit | $ 269 | $ 253 |
Adoption of IFRS 15 - Consoli_3
Adoption of IFRS 15 - Consolidated Statements of Cash Flows (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of initial application of standards or interpretations [line items] | ||
Net earnings | $ 2,973 | $ 3,050 |
Depreciation and amortization | 4,014 | 3,844 |
Income taxes | 995 | 1,069 |
Net change in operating assets and liabilities | 381 | 376 |
Cash flows from operating activities | $ 7,384 | 7,358 |
IFRS 15 | 2017 as previously reported | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Net earnings | 2,970 | |
Depreciation and amortization | 3,850 | |
Income taxes | 1,039 | |
Net change in operating assets and liabilities | 480 | |
Cash flows from operating activities | 7,358 | |
IFRS 15 | IFRS 15 impacts | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Net earnings | 80 | |
Depreciation and amortization | (6) | |
Income taxes | 30 | |
Net change in operating assets and liabilities | (104) | |
Cash flows from operating activities | $ 0 |
Adoption of IFRS 15 - Revenue b
Adoption of IFRS 15 - Revenue by Services and Products (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | $ 23,468 | $ 22,757 |
Total services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 20,441 | 20,095 |
Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 6,258 | 6,048 |
Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 7,466 | 7,192 |
Voice | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 3,793 | 3,968 |
Media | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 2,677 | 2,676 |
Other services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 247 | 211 |
Total products | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 3,027 | 2,662 |
Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 2,114 | 1,833 |
Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 466 | 410 |
Equipment and other | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | $ 447 | 419 |
2017 as previously reported | IFRS 15 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 22,719 | |
2017 as previously reported | IFRS 15 | Total services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 21,143 | |
2017 as previously reported | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 7,308 | |
2017 as previously reported | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 7,146 | |
2017 as previously reported | IFRS 15 | Voice | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 3,800 | |
2017 as previously reported | IFRS 15 | Media | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 2,676 | |
2017 as previously reported | IFRS 15 | Other services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 213 | |
2017 as previously reported | IFRS 15 | Total products | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 1,576 | |
2017 as previously reported | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 530 | |
2017 as previously reported | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 519 | |
2017 as previously reported | IFRS 15 | Equipment and other | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 527 | |
IFRS 15 impacts | IFRS 15 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 38 | |
IFRS 15 impacts | IFRS 15 | Total services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (1,264) | |
IFRS 15 impacts | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (1,260) | |
IFRS 15 impacts | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (5) | |
IFRS 15 impacts | IFRS 15 | Voice | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 3 | |
IFRS 15 impacts | IFRS 15 | Media | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
IFRS 15 impacts | IFRS 15 | Other services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (2) | |
IFRS 15 impacts | IFRS 15 | Total products | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 1,302 | |
IFRS 15 impacts | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 1,303 | |
IFRS 15 impacts | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 1 | |
IFRS 15 impacts | IFRS 15 | Equipment and other | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (2) | |
Other | IFRS 15 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
Other | IFRS 15 | Total services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 216 | |
Other | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
Other | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 51 | |
Other | IFRS 15 | Voice | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 165 | |
Other | IFRS 15 | Media | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
Other | IFRS 15 | Other services | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
Other | IFRS 15 | Total products | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (216) | |
Other | IFRS 15 | Wireless | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | 0 | |
Other | IFRS 15 | Data | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | (110) | |
Other | IFRS 15 | Equipment and other | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Total operating revenues | $ (106) |
Uncategorized Items - bce-20181
Label | Element | Value |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
Equity | ifrs-full_Equity | $ (4,000,000) |
Accumulated other comprehensive income [member] | ||
Equity | ifrs-full_Equity | (17,000,000) |
Share premium [member] | ||
Equity | ifrs-full_Equity | 1,162,000,000 |
Retained earnings [member] | ||
Equity | ifrs-full_Equity | (4,942,000,000) |
Retained earnings [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
Equity | ifrs-full_Equity | (4,000,000) |
Equity attributable to owners of parent [member] | ||
Equity | ifrs-full_Equity | 20,298,000,000 |
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||
Equity | ifrs-full_Equity | (4,000,000) |
Non-controlling interests [member] | ||
Equity | ifrs-full_Equity | 323,000,000 |
Ordinary shares [member] | Issued capital [member] | ||
Equity | ifrs-full_Equity | 20,091,000,000 |
Preference shares [member] | Issued capital [member] | ||
Equity | ifrs-full_Equity | $ 4,004,000,000 |