Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Entity Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-10805 |
Entity Registrant Name | Rogers Communications Inc. |
Entity Incorporation, State or Country Code | A1 |
Entity Primary SIC Number | 4841 |
Entity Address, Address Line One | 333 Bloor Street East, 10th Floor |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | M4W 1G9 |
City Area Code | 416 |
Local Phone Number | 935-7777 |
Title of 12(b) Security | Class B Non-Voting |
Trading Symbol | RCI |
Security Exchange Name | NYSE |
Security Reporting Obligation | 15(d) |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000733099 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A Voting Shares | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 111,154,811 |
Class B Non-Voting Shares | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 393,770,507 |
Business Contact | |
Entity Information [Line Items] | |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line One | 111 Eighth Avenue, 13th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10011 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Consolidated Statements of Inco
Consolidated Statements of Income - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | ||
Revenue | $ 15,073 | $ 15,096 |
Operating expenses: | ||
Operating costs | 8,861 | 9,113 |
Depreciation and amortization | 2,488 | 2,211 |
Gain on disposition of property, plant and equipment | 0 | (16) |
Restructuring, acquisition and other | 139 | 210 |
Finance costs | 840 | 793 |
Other income | (10) | (32) |
Income before income tax expense | 2,755 | 2,817 |
Income tax expense | 712 | 758 |
Net (loss) income | $ 2,043 | $ 2,059 |
Earnings per share: | ||
Basic (in dollars per share) | $ 3.99 | $ 4 |
Diluted (in dollars per share) | $ 3.97 | $ 3.99 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | ||
Net income for the year | $ 2,043 | $ 2,059 |
Defined benefit pension plans: | ||
Remeasurements | (159) | 53 |
Related income tax recovery (expense) | 40 | (12) |
Defined benefit pension plans | (119) | 41 |
Equity investments measured at fair value through other comprehensive income (FVTOCI): | ||
Increase (decrease) in fair value | 737 | (440) |
Related income tax (expense) recovery | (104) | 63 |
Equity investments measured at FVTOCI | 633 | (377) |
Items that will not be reclassified to net income | 514 | (336) |
Cash flow hedging derivative instruments: | ||
Unrealized gain in fair value of derivative instruments | 66 | 725 |
Reclassification to net income of loss (gain) on debt derivatives | 458 | (671) |
Reclassification to net income or property, plant and equipment of gain on expenditure derivatives | (61) | (8) |
Reclassification to net income for accrued interest | (46) | (43) |
Related income tax expense | (29) | (65) |
Cash flow hedging derivative instruments | 388 | (62) |
Equity-accounted investments: | ||
Share of other comprehensive (loss) income of equity-accounted investments, net of tax | (8) | 14 |
Equity-accounted investments | (8) | 14 |
Items that may subsequently be reclassified to net income | 380 | (48) |
Other comprehensive income (loss) for the year | 894 | (384) |
Comprehensive income for the year | $ 2,937 | $ 1,675 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 494 | $ 405 | $ 405 | |
Accounts receivable | 2,304 | 2,236 | 2,236 | |
Inventories | 460 | 466 | 466 | |
Current portion of contract assets | 1,234 | 1,052 | 1,052 | |
Other current assets | 524 | 436 | 459 | |
Current portion of derivative instruments | 101 | 270 | 270 | |
Total current assets | 5,117 | 4,865 | 4,888 | |
Property, plant and equipment | 13,934 | 13,261 | 11,780 | |
Property, plant and equipment | 12,198 | 11,780 | $ 11,143 | |
Intangible assets | 8,905 | 7,205 | 7,205 | |
Investments | 2,830 | 2,134 | 2,134 | |
Derivative instruments | 1,478 | 1,339 | 1,339 | |
Contract assets | 557 | 535 | 535 | |
Other long-term assets | 275 | 132 | 132 | |
Goodwill | 3,923 | 3,905 | 3,905 | |
Total assets | 37,019 | 33,376 | 31,918 | |
Current liabilities: | ||||
Short-term borrowings | 2,238 | 2,255 | 2,255 | |
Accounts payable and accrued liabilities | 3,033 | 2,997 | 3,052 | |
Income tax payable | 48 | 177 | 177 | |
Other current liabilities | 141 | 132 | 132 | |
Contract liabilities | 224 | 233 | 233 | 278 |
Current portion of long-term debt | 0 | 900 | 900 | |
Current lease liabilities | 230 | 190 | ||
Current portion of derivative instruments | 50 | 87 | 87 | |
Total current liabilities | 5,964 | 6,971 | 6,836 | |
Provisions | 36 | 35 | 35 | |
Long-term debt | 15,967 | 13,390 | 13,390 | |
Derivative instruments | 90 | 22 | 22 | |
Lease liabilities | 1,495 | 1,355 | ||
Other long-term liabilities | 614 | 546 | 546 | |
Deferred tax liabilities | 3,437 | 2,901 | 2,910 | |
Total liabilities | 27,603 | 25,220 | 23,739 | |
Shareholders' equity | 9,416 | 8,156 | 8,179 | $ 7,492 |
Total liabilities and shareholders' equity | $ 37,019 | $ 33,376 | $ 31,918 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity $ in Millions | CAD ($)shares | Class B Non-Voting SharesCAD ($)shares | Issued capitalClass A Voting SharesCAD ($)shares | Issued capitalClass B Non-Voting SharesCAD ($)shares | Retained earningsCAD ($) | FVTOCI investment reserveCAD ($) | Hedging reserveCAD ($) | Equity investment reserveCAD ($) | Adjustments pertaining to IFRS 16 adoption (see note 2)CAD ($) | Adjustments pertaining to IFRS 16 adoption (see note 2)Issued capitalClass A Voting SharesCAD ($)shares | Adjustments pertaining to IFRS 16 adoption (see note 2)Issued capitalClass B Non-Voting SharesCAD ($)shares | Adjustments pertaining to IFRS 16 adoption (see note 2)Retained earningsCAD ($) | Adjustments pertaining to IFRS 16 adoption (see note 2)FVTOCI investment reserveCAD ($) | Adjustments pertaining to IFRS 16 adoption (see note 2)Hedging reserveCAD ($) | Adjustments pertaining to IFRS 16 adoption (see note 2)Equity investment reserveCAD ($) |
Shareholders' equity, beginning balance at Dec. 31, 2017 | $ 7,492 | $ 72 | $ 405 | $ 6,070 | $ 1,013 | $ (63) | $ (5) | ||||||||
Number of shares, beginning balance at Dec. 31, 2017 | shares | 112,407,000 | 402,403,000 | |||||||||||||
Net income for the year | 2,059 | 2,059 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||
Defined benefit pension plans, net of tax | 41 | 41 | |||||||||||||
FVTOCI investments, net of tax | (377) | (377) | |||||||||||||
Derivative instruments accounted for as hedges, net of tax | (62) | (62) | |||||||||||||
Share of equity-accounted investments, net of tax | 14 | 14 | |||||||||||||
Other comprehensive income (loss) for the year | (384) | 41 | (377) | (62) | 14 | ||||||||||
Comprehensive income for the year | 1,675 | 2,100 | (377) | (62) | 14 | ||||||||||
Transactions with shareholders recorded directly in equity: | |||||||||||||||
Dividends declared | (988) | (988) | |||||||||||||
Shares issued on exercise of stock options | $ 0 | ||||||||||||||
Shares issued on exercise of stock options (in shares) | shares | 679,706 | 2,000 | |||||||||||||
Share class exchange | $ 0 | $ (1) | $ 1 | ||||||||||||
Share class exchange (in shares) | shares | (1,252,000) | 1,252,000 | |||||||||||||
Total transactions with shareholders | (988) | $ (1) | $ 1 | (988) | |||||||||||
Total transactions with shareholders (in shares) | shares | (1,252,000) | 1,254,000 | |||||||||||||
Shareholders' equity, ending balance at Dec. 31, 2018 | 8,179 | $ 71 | $ 406 | 7,182 | 636 | (125) | 9 | $ 8,156 | $ 71 | $ 406 | $ 7,159 | $ 636 | $ (125) | $ 9 | |
Number of shares, ending balance at Dec. 31, 2018 | shares | 111,155,000 | 403,657,000 | 111,155,000 | 403,657,000 | |||||||||||
Adjustments pertaining to IFRS 16 adoption (see note 2) | $ (23) | (23) | |||||||||||||
Net income for the year | 2,043 | $ 2,043 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||
Defined benefit pension plans, net of tax | (119) | (119) | |||||||||||||
FVTOCI investments, net of tax | 633 | 633 | |||||||||||||
Derivative instruments accounted for as hedges, net of tax | 388 | 388 | |||||||||||||
Share of equity-accounted investments, net of tax | (8) | (8) | |||||||||||||
Other comprehensive income (loss) for the year | 894 | (119) | 633 | 388 | (8) | ||||||||||
Comprehensive income for the year | 2,937 | 1,924 | 633 | 388 | (8) | ||||||||||
Reclassification to retained earnings for disposition of FVTOCI investments | 0 | 4 | (4) | ||||||||||||
Transactions with shareholders recorded directly in equity: | |||||||||||||||
Repurchase of Class B Non-Voting Shares | (655) | $ (655) | $ (9) | (646) | |||||||||||
Repurchase of Class B Non-Voting Shares (in shares) | shares | (9,900,000) | (9,887,000) | |||||||||||||
Dividends declared | $ (1,022) | (1,022) | |||||||||||||
Shares issued on exercise of stock options (in shares) | shares | 743,977 | ||||||||||||||
Share class exchange | $ 0 | $ 0 | $ 0 | ||||||||||||
Share class exchange (in shares) | shares | (1,000) | 1,000 | |||||||||||||
Total transactions with shareholders | (1,677) | $ 0 | $ (9) | (1,668) | |||||||||||
Total transactions with shareholders (in shares) | shares | (1,000) | (9,886,000) | |||||||||||||
Shareholders' equity, ending balance at Dec. 31, 2019 | $ 9,416 | $ 71 | $ 397 | $ 7,419 | $ 1,265 | $ 263 | $ 1 | ||||||||
Number of shares, ending balance at Dec. 31, 2019 | shares | 111,154,000 | 393,771,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||
Net income for the year | $ 2,043 | $ 2,059 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 2,488 | 2,211 |
Program rights amortization | 77 | 58 |
Finance costs | 840 | 793 |
Income tax expense | 712 | 758 |
Post-employment benefits contributions, net of expense | (75) | (44) |
Gain on disposition of property, plant and equipment | 0 | (16) |
Net change in contract asset balances | (204) | (354) |
Net change in financing receivable balances | (84) | 0 |
Other | 46 | 33 |
Cash provided by operating activities before changes in non-cash working capital items, income taxes paid, and interest paid | 5,843 | 5,498 |
Change in non-cash operating working capital items | (138) | (114) |
Cash provided by operating activities before income taxes paid and interest paid | 5,705 | 5,384 |
Income taxes paid | (400) | (370) |
Interest paid | (779) | (726) |
Cash provided by operating activities | 4,526 | 4,288 |
Investing activities: | ||
Capital expenditures | (2,807) | (2,790) |
Additions to program rights | (60) | (54) |
Changes in non-cash working capital related to capital expenditures and intangible assets | (35) | (125) |
Acquisitions and other strategic transactions, net of cash acquired | (1,731) | 0 |
Other | 21 | 25 |
Cash used in investing activities | (4,612) | (2,944) |
Financing activities: | ||
Net proceeds received on short-term borrowings | 30 | 508 |
Net issuance (repayment) of long-term debt | 2,184 | (823) |
Net (payments) proceeds on settlement of debt derivatives and forward contracts | (121) | 388 |
Transaction costs incurred | (61) | (18) |
Principal payments of lease liabilities | (167) | |
Repurchase of Class B Non-Voting Shares | (655) | 0 |
Dividends paid | (1,016) | (988) |
Other | (19) | 0 |
Cash provided by (used in) financing activities | 175 | (933) |
Change in cash and cash equivalents | 89 | 411 |
Cash and cash equivalents (bank advances), beginning of year | 405 | (6) |
Cash and cash equivalents, end of year | $ 494 | $ 405 |
NATURE OF THE BUSINESS
NATURE OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
NATURE OF THE BUSINESS | NATURE OF THE BUSINESS Rogers Communications Inc. is a diversified Canadian communications and media company. Substantially all of our operations and sales are in Canada. RCI is incorporated in Canada and its registered office is located at 333 Bloor Street East, Toronto, Ontario, M4W 1G9. RCI's shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI). We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows: Segment Principal activities Wireless Wireless telecommunications operations for Canadian consumers and businesses. Cable Cable telecommunications operations, including Internet, television, telephony (phone), and smart home monitoring services for Canadian consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. Media A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media. During the year ended December 31, 2019 , Wireless and Cable were operated by our wholly owned subsidiary, Rogers Communications Canada Inc. (RCCI), and certain other wholly owned subsidiaries. Media was operated by our wholly owned subsidiary, Rogers Media Inc., and its subsidiaries. See note 4 for more information about our reportable operating segments. BUSINESS SEASONALITY Our operating results generally vary from quarter to quarter as a result of changes in general economic conditions and seasonal fluctuations, among other things, in each of our reportable segments. This means our results in one quarter are not necessarily indicative of how we will perform in a future quarter. Wireless, Cable, and Media each have unique seasonal aspects to, and certain other historical trends in, their businesses. Fluctuations in net income from quarter to quarter can also be attributed to losses on the repayment of debt, other income and expenses, impairment of assets, and changes in income tax expense. Wireless Wireless operating results are influenced by the timing of our marketing and promotional expenditures and higher levels of subscriber additions and related subsidies, resulting in higher subscriber acquisition- and activation-related expenses, typically in the third and fourth quarters. The third and fourth quarters typically experience higher volumes of activity as a result of "back to school" and holiday season-related consumer behaviour. Aggressive promotional offers are often advertised during these periods. In contrast, we typically see lower subscriber-related activity in the first quarter of the year. The launch of new products and services, including popular new wireless device models, can also affect the level of subscriber activity. Highly anticipated device launches typically occur in the fall season of each year. Wireless roaming revenue is dependent on customer travel volumes and timing, and is also impacted by foreign exchange rates and general economic conditions. Cable Cable's operating results are affected by modest seasonal fluctuations, typically caused by: • university and college students who live in residences moving out early in the second quarter and canceling their service as well as students moving in late in the third quarter and signing up for cable service; • individuals temporarily suspending service for extended vacations or seasonal relocations; and • the concentrated marketing we generally conduct in our fourth quarter. Cable results from our enterprise customers do not generally have any unique seasonal aspects. Media Seasonal fluctuations relate to: • periods of increased consumer activity and their impact on advertising and related retail cycles, which tend to be most active in the fourth quarter due to holiday spending and slower in the first quarter; • the Major League Baseball season, where: • games played are concentrated in the spring, summer, and fall months (generally the second and third quarters of the year); • revenue related to game day ticket sales, merchandise sales, and advertising are concentrated in the spring, summer, and fall months (generally the second and third quarters of the year), with postseason games commanding a premium in advertising revenue and additional revenue from game day ticket sales and merchandise sales, if and when the Toronto Blue Jays play in the postseason; and • programming and production costs and player payroll are expensed based on the number of games aired or played, as applicable; and • the National Hockey League (NHL) season, where: • regular season games are concentrated in the fall and winter months (generally the first and fourth quarters of the year) and playoff games are concentrated in the spring months (generally the second quarter of the year). We expect a correlation between the quality of revenue and earnings and the extent of Canadian teams' presence during the playoffs; • programming and production costs are expensed based on the timing of when the rights are aired or are expected to be consumed; and • advertising revenue and programming expenses are concentrated in the fall, winter, and spring months, with playoff games commanding a premium in advertising revenue. STATEMENT OF COMPLIANCE We prepared our consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Board of Directors (the Board) authorized these consolidated financial statements for issue on March 5, 2020 . |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
List of Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES (a) BASIS OF PRESENTATION All amounts are in Canadian dollars unless otherwise noted. Our functional currency is the Canadian dollar. We prepare the consolidated financial statements on a historical cost basis, except for: • certain financial instruments as disclosed in note 17 , which are measured at fair value; • the net deferred pension liability, which is measured as described in note 23 ; and • liabilities for stock-based compensation, which are measured at fair value as disclosed in note 25 . (b) BASIS OF CONSOLIDATION Subsidiaries are entities we control. We include the financial statements of our subsidiaries in our consolidated financial statements from the date we gain control of them until our control ceases. We eliminate all intercompany transactions and balances between our subsidiaries on consolidation. (c) FOREIGN CURRENCY TRANSLATION We translate amounts denominated in foreign currencies into Canadian dollars as follows: • monetary assets and liabilities - at the exchange rate in effect as at the date of the Consolidated Statements of Financial Position; • non-monetary assets and liabilities, and related depreciation and amortization - at the historical exchange rates; and • revenue and expenses other than depreciation and amortization - at the average rate for the month in which the transaction was recognized. (d) BUSINESS COMBINATIONS We account for business combinations using the acquisition method of accounting. Only acquisitions that result in our gaining control over the acquired businesses are accounted for as business combinations. We possess control over an entity when we conclude we are exposed to variable returns from our involvement with the acquired entity and we have the ability to affect those returns through our power over the acquired entity. We calculate the fair value of the consideration paid as the sum of the fair value at the date of acquisition of the assets we transferred and the equity interests we issued, less the liabilities we assumed to acquire the subsidiary. We measure goodwill as the fair value of the consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, which are generally measured at fair value as of the acquisition date. When the excess is negative, a gain on acquisition is recognized immediately in net income. We expense the transaction costs associated with acquisitions as we incur them. (e) NEW ACCOUNTING PRONOUNCEMENTS ADOPTED IN 2019 We adopted the following IFRS amendments in 2019. They did not have a material effect on our financial statements. • Amendments to IAS 19, Employee Benefits , providing guidance on accounting for defined benefit plans that have been amended, curtailed, or settled during a period. • Amendments to IAS 23, Borrowing Costs , clarifying the requirement that borrowings made specifically to finance construction of qualifying assets become part of a pool of general borrowings after completion. • Amendments to IAS 28, Investments in Associates and Joint Ventures, clarifying the requirement in applying IFRS 9, Financial Instruments including its impairment requirements, to long-term interests in an associate or joint venture that, in substance, form part of the net investment in the associate or joint venture but to which the equity method is not applied. • Amendments to IFRS 3, Business Combinations and IFRS 11, Joint Arrangements, clarifying the distinction between a business and a group of assets to aid in applying IFRS 3. • Amendments to IFRIC 23, Uncertainty over Income Tax Treatments, aiming to reduce diversity in how companies recognize and measure a tax liability or tax asset when there is uncertainty over income tax treatments. Additionally, we adopted IFRS 16, Leases (IFRS 16) effective January 1, 2019. The effects this new pronouncement has on our results and operations are described below. IFRS 16, LEASES Effective January 1, 2019, we adopted IFRS 16, which supersedes previous accounting standards for leases, including IAS 17, Leases (IAS 17) and IFRIC 4, Determining whether an arrangement contains a lease (IFRIC 4). IFRS 16 introduced a single accounting model for lessees. A lessee is generally required to recognize, on its statement of financial position, a right-of-use asset, representing its right to use the underlying leased asset, and a lease liability, representing its obligation to make lease payments. As a result of adopting IFRS 16, we have recognized a significant increase to both assets and liabilities on our Consolidated Statements of Financial Position, as well as a decrease to operating costs (for the removal of rent expense for leases), an increase to depreciation and amortization (due to depreciation of the right-of-use asset), and an increase to finance costs (due to accretion of the lease liability). The accounting treatment for lessors remains largely the same as under IAS 17. We adopted IFRS 16 with the cumulative effect of initial application recognized as an adjustment to retained earnings within shareholders' equity on January 1, 2019. We have not restated comparatives for 2018. At transition, we applied the practical expedient that allows us to maintain our lease assessments made under IAS 17 and IFRIC 4 for existing contracts. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed after January 1, 2019. For leases that were classified as operating leases under IAS 17, lease liabilities at transition have been measured at the present value of remaining lease payments, discounted at the related incremental borrowing rate as at January 1, 2019. Generally, right-of-use assets at transition have been measured at an amount equal to the corresponding lease liabilities, adjusted for any prepaid or accrued rent relating to that lease. For certain leases where we have readily available information, we have elected to measure the right-of-use assets at their carrying amounts as if IFRS 16 had been applied since the lease commencement date using the related incremental borrowing rate for the remaining lease period as at January 1, 2019. When applying IFRS 16 to leases previously classified as operating leases, the following practical expedients were available to us. We have: • applied a single discount rate to a portfolio of leases with similar characteristics; • excluded initial direct costs from measuring the right-of-use asset as at January 1, 2019; • used hindsight in determining the lease term where the contract contains purchase, extension, or termination options; and • relied upon our assessment of whether leases were onerous under the requirements of IAS 37, Provisions, contingent liabilities and contingent assets as at December 31, 2018 as an alternative to reviewing our right-of-use assets for impairment. We have elected to not separate fixed non-lease components from lease components and instead account for each lease component and associated fixed non-lease components as a single lease component. On transition, we have not elected the recognition exemptions on short-term leases or low-value leases; however, we may choose to elect the recognition exemptions on a class-by-class basis for new classes, and lease-by-lease basis, respectively, in the future. There was no significant impact for contracts in which we are the lessor. Reconciliation of condensed consolidated statement of financial position as at January 1, 2019 Below is the effect of transition to IFRS 16 on our condensed consolidated statement of financial position as at January 1, 2019. (In millions of dollars) As reported as at (see note 15) Effect of IFRS 16 transition Subsequent to transition as at Assets Current assets: Cash and cash equivalents 405 — 405 Accounts receivable 2,236 — 2,236 Inventories 466 — 466 Current portion of contract assets 1,052 — 1,052 Other current assets 459 (23 ) 436 Current portion of derivative instruments 270 — 270 Total current assets 4,888 (23 ) 4,865 Property, plant and equipment 11,780 1,481 13,261 Intangible assets 7,205 — 7,205 Investments 2,134 — 2,134 Derivative instruments 1,339 — 1,339 Contract assets 535 — 535 Other long-term assets 132 — 132 Goodwill 3,905 — 3,905 Total assets 31,918 1,458 33,376 Liabilities and shareholders' equity Current liabilities: Short-term borrowings 2,255 — 2,255 Accounts payable and accrued liabilities 3,052 (55 ) 2,997 Income tax payable 177 — 177 Other current liabilities 132 — 132 Contract liabilities 233 — 233 Current portion of long-term debt 900 — 900 Current portion of derivative instruments 87 — 87 Current portion of lease liabilities — 190 190 Total current liabilities 6,836 135 6,971 Provisions 35 — 35 Long-term debt 13,390 — 13,390 Derivative instruments 22 — 22 Lease liabilities — 1,355 1,355 Other long-term liabilities 546 — 546 Deferred tax liabilities 2,910 (9 ) 2,901 Total liabilities 23,739 1,481 25,220 Shareholders' equity 8,179 (23 ) 8,156 Total liabilities and shareholders' equity 31,918 1,458 33,376 Prior to adopting IFRS 16, our total minimum operating lease commitments as at December 31, 2018 were $979 million . The weighted average discount rate applied to the total lease payments on transition was 3.82% . The difference between the total of the minimum lease payments set out in Note 27 to our 2018 Annual Financial Statements and the total lease liabilities recognized on transition was a result of: • the inclusion of lease payments beyond minimum commitments relating to reasonably certain renewal periods or extension options that had not yet been exercised as at December 31, 2018; partially offset by • the effect of discounting on the minimum lease payments; and • certain costs to which we are contractually committed under lease contracts but which do not qualify to be accounted for as a lease liability, such as variable lease payments not tied to an index or rate. See note 8 for the accounting policies, including estimates and judgments, we use to account for leases. (f) RECENT ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED IN 2019 The IASB has issued the following new standards that will become effective in a future year and could have an impact on our consolidated financial statements in future periods: • Changes to the Conceptual Framework , seeking to provide improvements to concepts surrounding various financial reporting considerations and existing IFRS standards. • Amendments to IAS 1, Presentation of Financial Statements and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors , clarifying the definition of "material". • IFRS 17, Insurance Contracts , a replacement of IFRS 4, Insurance Contracts, that aims to provide consistency in the application of accounting for insurance contracts. • Amendments to IFRS 9, IAS 39, and IFRS 7, Interest Rate Benchmark Reform , seeking to reduce uncertainty and diminishing long-term viability of certain interest rate benchmarks used in global financial markets, such as interbank offer rates (IBORs). We do not expect IFRS 17, Insurance Contracts , will have an effect on our consolidated financial statements. We are assessing the impacts, if any, the remaining new standards or amendments will have on our consolidated financial statements. (g) ADDITIONAL SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES, AND JUDGMENTS When preparing our consolidated financial statements, management makes judgments, estimates, and assumptions that affect how accounting policies are applied and the amounts we report as assets, liabilities, revenue, and expenses. Our significant accounting policies, estimates, and judgments are identified in this note or disclosed throughout the notes as identified in the table below, including: • information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the amounts recognized in the consolidated financial statements; • information about judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements; and • information on our significant accounting policies. Note Topic Page Accounting Policy Use of Estimates Use of Judgments 4 Reportable Segments 16 X X 5 Revenue Recognition 17 X X X 7 Property, Plant and Equipment 21 X X X 8 Leases 23 X X X 9 Intangible Assets and Goodwill 26 X X X 13 Income Taxes 30 X X 14 Earnings Per Share 32 X 15 Accounts Receivable 32 X 16 Inventories 33 X 17 Financial Instruments 33 X X X 18 Investments 44 X 20 Provisions 47 X X X 23 Post-Employment Benefits 52 X X 25 Stock-Based Compensation 58 X X 28 Commitments and Contingent Liabilities 63 X X |
CAPITAL RISK MANAGEMENT
CAPITAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL RISK MANAGEMENT | CAPITAL RISK MANAGEMENT Our objectives in managing capital are to ensure we have sufficient liquidity to meet all of our commitments and to execute our business plan. We define capital that we manage as shareholders' equity and indebtedness (including the current portion of our long-term debt, long-term debt, short-term borrowings, the current portion of our lease liabilities, and lease liabilities). We manage our capital structure, commitments, and maturities and make adjustments based on general economic conditions, financial markets, operating risks, our investment priorities, and working capital requirements. To maintain or adjust our capital structure, we may, with approval from the Board, issue or repay debt and/or short-term borrowings, issue or repurchase shares, pay dividends, or undertake other activities as deemed appropriate under the circumstances. The Board reviews and approves the annual capital and operating budgets, as well as any material transactions that are not part of the ordinary course of business, including proposals for acquisitions or other major financing transactions, investments, or divestitures. We monitor debt leverage ratios as part of the management of liquidity and shareholders' return to sustain future development of the business, conduct valuation-related analyses, and make decisions about capital. The wholly owned subsidiary through which our Rogers World Elite Mastercard, Rogers Platinum Mastercard, and Fido Mastercard programs are operated is regulated by the Office of the Superintendent of Financial Institutions, which requires that a minimum level of regulatory capital be maintained. Rogers' subsidiary was in compliance with that requirement as at December 31, 2019 and 2018 . The capital requirements are not material to the Company as at December 31, 2019 or December 31, 2018 . With the exception of the Rogers World Elite Mastercard, Rogers Platinum Mastercard, and Fido Mastercard programs and the subsidiary through which they are operated, we are not subject to externally imposed capital requirements. Our overall strategy for capital risk management has not changed since December 31, 2018 . |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION ACCOUNTING POLICY Reportable segments We determine our reportable segments based on, among other things, how our chief operating decision maker, the Chief Executive Officer and Chief Financial Officer of RCI, regularly review our operations and performance. They review adjusted EBITDA as the key measure of profit for the purpose of assessing performance of each segment and to make decisions about the allocation of resources, as they believe adjusted EBITDA reflects segment and consolidated profitability. Adjusted EBITDA is defined as income before depreciation and amortization; (gain) loss on disposition of property, plant and equipment; restructuring, acquisition and other; finance costs; other expense (income); and income tax expense. We follow the same accounting policies for our segments as those described in the notes to our consolidated financial statements. We account for transactions between reportable segments in the same way we account for transactions with external parties, but eliminate them on consolidation. USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We make significant judgments in determining our operating segments. These are components that engage in business activities from which they may earn revenue and incur expenses, for which operating results are regularly reviewed by our chief operating decision makers to make decisions about resources to be allocated and assess component performance, and for which discrete financial information is available. EXPLANATORY INFORMATION Our reportable segments are Wireless, Cable, and Media (see note 1 ). All three segments operate substantially in Canada. Corporate items and eliminations include our interests in businesses that are not reportable operating segments, corporate administrative functions, and eliminations of inter-segment revenue and costs. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. INFORMATION BY SEGMENT Year ended December 31, 2019 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,250 3,954 2,072 (203 ) 15,073 Operating costs 6 4,905 2,035 1,932 (11 ) 8,861 Adjusted EBITDA 4,345 1,919 140 (192 ) 6,212 Depreciation and amortization 7, 8, 9 2,488 Restructuring, acquisition and other 10 139 Finance costs 11 840 Other income 12 (10 ) Income before income tax expense 2,755 Capital expenditures 1 7, 29 1,320 1,153 102 232 2,807 Goodwill 9 1,160 1,808 955 — 3,923 Total assets 20,105 7,891 2,550 6,473 37,019 1 Includes proceeds on disposition of $38 million (see note 29 ). Year ended December 31, 2018 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,200 3,932 2,168 (204 ) 15,096 Operating costs 6 5,110 2,058 1,972 (27 ) 9,113 Adjusted EBITDA 4,090 1,874 196 (177 ) 5,983 Depreciation and amortization 7, 8, 9 2,211 Gain on disposition of property, plant and equipment 7 (16 ) Restructuring, acquisition and other 10 210 Finance costs 11 793 Other income 12 (32 ) Income before income tax expense 2,817 Capital expenditures 1 7, 29 1,086 1,429 90 185 2,790 Goodwill 9 1,160 1,808 937 — 3,905 Total assets 16,572 7,666 2,438 5,242 31,918 1 Includes proceeds on disposition of $25 million (see note 29 ). |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
REVENUE | REVENUE ACCOUNTING POLICY Contracts with customers We record revenue from contracts with customers in accordance with the five steps in IFRS 15, Revenue from contracts with customers as follows: 1. identify the contract with a customer; 2. identify the performance obligations in the contract; 3. determine the transaction price, which is the total consideration provided by the customer; 4. allocate the transaction price among the performance obligations in the contract based on their relative fair values; and 5. recognize revenue when the relevant criteria are met for each performance obligation. Many of our products and services are sold in bundled arrangements (e.g. wireless devices and voice and data services). Items in these arrangements are accounted for as separate performance obligations if the item meets the definition of a distinct good or service. We also determine whether a customer can modify their contract within predefined terms such that we are not able to enforce the transaction price agreed to, but can only contractually enforce a lower amount. In situations such as these, we allocate revenue between performance obligations using the minimum enforceable rights and obligations and any excess amount is recognized as revenue as it is earned. Revenue for each performance obligation is recognized either over time (e.g. services) or at a point in time (e.g. equipment). For performance obligations satisfied over time, revenue is recognized as the services are provided. These services are typically provided, and thus revenue is typically recognized, on a monthly basis. Revenue for performance obligations satisfied at a point in time is recognized when control of the item (or service) transfers to the customer. Typically, this is when the customer activates the goods (e.g. in the case of a wireless device) or has physical possession of the goods (e.g. other equipment). The table below summarizes the nature of the various performance obligations in our contracts with customers and when we recognize performance on those obligations. Performance obligations from contracts with customers Timing of satisfaction of the performance obligation Wireless airtime, data, and other services; television, telephony, Internet, and smart home monitoring services; network services; media subscriptions; and rental of equipment As the service is provided (usually monthly) Roaming, long-distance, and other optional or non-subscription services, and pay-per-use services As the service is provided Wireless devices and related equipment Upon activation or purchase by the end customer Installation services for Cable subscribers When the services are performed Advertising When the advertising airs on our radio or television stations or is displayed on our digital properties Subscriptions by television stations for subscriptions from cable and satellite providers When the services are delivered to cable and satellite providers' subscribers (usually monthly) Toronto Blue Jays' home game admission and concessions When the related games are played during the baseball season and when goods are sold Toronto Blue Jays revenue from the Major League Baseball Revenue Sharing Agreement, which redistributes funds between member clubs based on each club’s relative revenue When the amount is determinable Radio and television broadcast agreements When the related programs are aired Sublicensing of program rights Over the course of the applicable licence period We also recognize interest revenue on credit card receivables using the effective interest method in accordance with IFRS 9. Payment for Wireless and Cable monthly service fees is typically due 30 days after billing. Payment for Wireless and Cable equipment is typically due either upon receipt of the equipment or over the subsequent 24 months (when equipment is financed through our equipment financing plans). Payment terms for typical Media performance obligations range from immediate (e.g. Toronto Blue Jays tickets) to 30 days (e.g. advertising contracts). Contract assets and liabilities We record a contract asset when we have provided goods and services to our customer but our right to related consideration for the performance obligation is conditional on satisfying other performance obligations. Contract assets primarily relate to our rights to consideration for the transfer of wireless devices. We record a contract liability when we receive payment from a customer in advance of providing goods and services. This includes subscriber deposits, deposits related to Toronto Blue Jays ticket sales, and amounts subscribers pay for services and subscriptions that will be provided in future periods. We account for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a net contract asset or a net contract liability accordingly. Deferred commission cost assets We defer, to the extent recoverable, the incremental costs we incur to obtain or fulfill a contract with a customer and amortize them over their expected period of benefit. These costs include certain commissions paid to internal and external representatives that we believe to be recoverable through the revenue earned from the related contracts. We therefore defer them as deferred commission cost assets in other assets and amortize them to operating costs over the pattern of the transfer of goods and services to the customer, which is typically evenly over either 12 or 24 consecutive months. USE OF ESTIMATES AND JUDGMENTS ESTIMATES We use estimates in the following key areas: • determining the transaction price of our contracts requires estimating the amount of revenue we expect to be entitled to for delivering the performance obligations within a contract; and • determining the stand-alone selling price of performance obligations and the allocation of the transaction price between performance obligations. Determining the transaction price The transaction price is the amount of consideration that is enforceable and to which we expect to be entitled in exchange for the goods and services we have promised to our customer. We determine the transaction price by considering the terms of the contract and business practices that are customary within that particular line of business. Discounts, rebates, refunds, credits, price concessions, incentives, penalties, and other similar items are reflected in the transaction price at contract inception. Determining the stand-alone selling price and the allocation of the transaction price The transaction price is allocated to performance obligations based on the relative stand-alone selling prices of the distinct goods or services in the contract. The best evidence of a stand-alone selling price is the observable price of a good or service when the entity sells that good or service separately in similar circumstances and to similar customers. If a stand-alone selling price is not directly observable, we estimate the stand-alone selling price taking into account reasonably available information relating to the market conditions, entity-specific factors, and the class of customer. In determining the stand-alone selling price, we allocate revenue between performance obligations based on expected minimum enforceable amounts to which Rogers is entitled. Any amounts above the minimum enforceable amounts are recognized as revenue as they are earned. JUDGMENTS We make significant judgments in determining whether a promise to deliver goods or services is considered distinct, in determining the costs that are incremental to obtaining of fulfilling a contract with a customer, and in determining whether our residual value arrangements constitute revenue-generating arrangements or leases. Distinct goods and services We make judgments in determining whether a promise to deliver goods or services is considered distinct. We account for individual products and services separately if they are distinct (i.e. if a product or service is separately identifiable from other items in the bundled package and if the customer can benefit from it). The consideration is allocated between separate products and services in a bundle based on their stand-alone selling prices. For items we do not sell separately (e.g. third-party gift cards), we estimate stand-alone selling prices using the adjusted market assessment approach. Determining costs to obtain or fulfill a contract Determining the costs we incur to obtain or fulfill a contract that meet the deferral criteria within IFRS 15 requires us to make significant judgments. We expect incremental commission fees paid to internal and external representatives as a result of obtaining contracts with customers to be recoverable. Residual value arrangements Under certain customer offers, we allow customers to defer a component of the device cost until contract termination. We use judgment in determining whether these arrangements constitute revenue-generating arrangements or leases. In making this determination, we use judgment to assess the extent of control over the devices that passes to our customer, including whether the customer has a significant economic incentive at contract inception to return the device at contract termination. EXPLANATORY INFORMATION CONTRACT ASSETS Below is a summary of the current and long-term portions of contract assets from contracts with customers and the significant changes in those balances during the years ended December 31, 2019 and 2018 . Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 1,587 1,233 Additions from new contracts with customers, net of terminations and renewals 1,653 1,572 Amortization of contract assets to accounts receivable (1,449 ) (1,218 ) Balance, end of year 1,791 1,587 CONTRACT LIABILITIES Below is a summary of the current portion of contract liabilities from contracts with customers and the significant changes in those balances during the years ended December 31, 2019 and 2018 . Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 233 278 Revenue deferred in previous year and recognized as revenue in current year (222 ) (268 ) Net additions from contracts with customers 213 223 Balance, end of year 224 233 DEFERRED COMMISSION COST ASSETS Below is a summary of the changes in the deferred commission cost assets recognized from the incremental costs incurred to obtain contracts with customers during the years ended December 31, 2019 and 2018 . The deferred commission cost assets are presented within other current assets (when they will be amortized into net income within twelve months of the date of the financial statements) or other long-term assets. Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 296 278 Additions to deferred commission cost assets 329 340 Amortization recognized on deferred commission cost assets (320 ) (322 ) Balance, end of year 305 296 UNSATISFIED PORTIONS OF PERFORMANCE OBLIGATIONS The table below shows the revenue we expect to recognize in the future related to unsatisfied or partially satisfied performance obligations as at December 31, 2019 . The unsatisfied portion of the transaction price of the performance obligations relates to monthly services; we expect to recognize it over the next three to five years . (In millions of dollars) 2020 2021 2022 Thereafter Total Telecommunications service 2,350 983 186 177 3,696 We have elected to utilize the following practical expedients and not disclose: • the unsatisfied portions of performance obligations related to contracts with a duration of one year or less; or • the unsatisfied portions of performance obligations where the revenue we recognize corresponds with the amount invoiced to the customer. DISAGGREGATION OF REVENUE Years ended December 31 (In millions of dollars) 2019 2018 Wireless Service revenue 7,156 7,091 Equipment revenue 2,094 2,109 Total Wireless 9,250 9,200 Cable Internet 2,259 2,114 Television 1,430 1,442 Phone 251 363 Service revenue 3,940 3,919 Equipment revenue 14 13 Total Cable 3,954 3,932 Total Media 2,072 2,168 Corporate items and intercompany eliminations (203 ) (204 ) Total revenue 15,073 15,096 |
OPERATING COSTS
OPERATING COSTS | 12 Months Ended |
Dec. 31, 2019 | |
Operating Costs [Abstract] | |
OPERATING COSTS | OPERATING COSTS Years ended December 31 (In millions of dollars) 2019 2018 Cost of equipment sales 2,254 2,284 Merchandise for resale 242 231 Other external purchases 4,360 4,509 Employee salaries, benefits, and stock-based compensation 2,005 2,089 Total operating costs 8,861 9,113 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY The following accounting policy applies to property, plant and equipment excluding right-of-use assets recognized under IFRS 16. Our accounting policies for right-of-use assets are included in note 8. Recognition and measurement, including depreciation We measure property, plant and equipment upon initial recognition at cost and begin recognizing depreciation when the asset is ready for its intended use. Subsequently, property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures (capital expenditures) that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes: • the cost of materials and direct labour; • costs directly associated with bringing the assets to a working condition for their intended use; • expected costs of decommissioning the items and restoring the sites on which they are located (see note 20 ); and • borrowing costs on qualifying assets. We depreciate property, plant and equipment over its estimated useful life by charging depreciation expense to net income as follows: Asset Basis Estimated useful life Buildings Diminishing balance 5 to 40 years Cable and wireless network Straight-line 3 to 40 years Computer equipment and software Straight-line 4 to 10 years Customer premise equipment Straight-line 3 to 6 years Leasehold improvements Straight-line Over shorter of estimated useful life or lease term Equipment and vehicles Diminishing balance 3 to 20 years We calculate gains and losses on the disposal of property, plant and equipment by comparing the proceeds from the disposal with the item's carrying amount and recognize the gain or loss in net income. We capitalize development expenditures if they meet the criteria for recognition as an asset and amortize them over their expected useful lives once the assets to which they relate are available for use. We expense research expenditures, maintenance costs, and training costs as incurred. Impairment testing, including recognition and measurement of an impairment charge See "Impairment Testing" in note 9 for our policies relating to impairment testing and the related recognition and measurement of impairment charges. The impairment policies for property, plant and equipment are similar to the impairment policies for intangible assets with finite useful lives. USE OF ESTIMATES AND JUDGMENTS ESTIMATES Components of an item of property, plant and equipment may have different useful lives. We make significant estimates when determining depreciation rates and asset useful lives, which require taking into account company-specific factors, such as our past experience and expected use, and industry trends, such as technological advancements. We monitor and review residual values, depreciation rates, and asset useful lives at least once a year and change them if they are different from our previous estimates. We recognize the effect of changes in estimates in net income prospectively. We use estimates to determine certain costs that are directly attributable to self-constructed assets. These estimates primarily include certain internal and external direct labour, overhead, and interest costs associated with the acquisition, construction, development, or betterment of our networks. Furthermore, we use estimates in determining the recoverable amount of property, plant and equipment. The determination of the recoverable amount for the purpose of impairment testing requires the use of significant estimates, such as: • future cash flows; • terminal growth rates; and • discount rates. We estimate value in use for impairment tests by discounting estimated future cash flows to their present value. We estimate the discounted future cash flows for periods of up to five years, depending on the cash-generating unit (CGU) , and a terminal value. The future cash flows are based on our estimates and expected future operating results of the CGU after considering economic conditions and a general outlook for the CGU's industry. Our discount rates consider market rates of return, debt to equity ratios, and certain risk premiums, among other things. The terminal value is the value attributed to the CGU's operations beyond the projected time period of the cash flows using a perpetuity rate based on expected economic conditions and a general outlook for the industry. We determine fair value less costs to sell in one of the following two ways: • Analyzing discounted cash flows - we estimate the discounted future cash flows for five-year periods and a terminal value, similar to the value in use methodology described above, while applying assumptions consistent with those a market participant would make. Future cash flows are based on our estimates of expected future operating results of the CGU. Our estimates of future cash flows, terminal values, and discount rates consider similar factors to those described above for value in use estimates; or • Using a market approach - we estimate the recoverable amount of the CGU using multiples of operating performance of comparable entities and precedent transactions in that industry. We make certain assumptions when deriving expected future cash flows, which may include assumptions pertaining to discount and terminal growth rates. These assumptions may differ or change quickly depending on economic conditions or other events. It is therefore possible that future changes in assumptions may negatively affect future valuations of CGUs and goodwill, which could result in impairment losses. JUDGMENTS We make significant judgments in choosing methods for depreciating our property, plant and equipment that we believe most accurately represent the consumption of benefits derived from those assets and are most representative of the economic substance of the intended use of the underlying assets. EXPLANATORY INFORMATION The table below summarizes our property, plant and equipment as at December 31, 2019 , 2018 , and 2017 . (In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017 Cost Accumulated depreciation Net carrying amount Cost Accumulated depreciation Net carrying amount Cost Accumulated depreciation Net carrying amount Land and buildings 1,182 (461 ) 721 1,125 (428 ) 697 1,090 (397 ) 693 Cable and wireless networks 21,778 (13,814 ) 7,964 21,024 (13,550 ) 7,474 20,252 (13,206 ) 7,046 Computer equipment and software 5,903 (3,749 ) 2,154 5,514 (3,305 ) 2,209 4,996 (2,807 ) 2,189 Customer premise equipment 1,963 (1,387 ) 576 1,908 (1,279 ) 629 1,565 (1,090 ) 475 Leasehold improvements 596 (281 ) 315 539 (250 ) 289 496 (220 ) 276 Equipment and vehicles 1,244 (776 ) 468 1,292 (810 ) 482 1,246 (782 ) 464 Property, plant and equipment 32,666 (20,468 ) 12,198 31,402 (19,622 ) 11,780 29,645 (18,502 ) 11,143 Right-of-use assets 1,911 (175 ) 1,736 — — — — — — Total 34,577 (20,643 ) 13,934 31,402 (19,622 ) 11,780 29,645 (18,502 ) 11,143 The tables below summarize the changes in the net carrying amounts of property, plant and equipment during 2019 and 2018 . (In millions of dollars) December 31, 2018 December 31, 2019 Net carrying amount Effect of IFRS 16 transition Additions 1 Depreciation Disposals and other 2 Net carrying amount Land and buildings 697 — 57 (34 ) 1 721 Cable and wireless networks 7,474 (95 ) 1,739 (1,157 ) 3 7,964 Computer equipment and software 2,209 — 644 (706 ) 7 2,154 Customer premise equipment 629 — 236 (292 ) 3 576 Leasehold improvements 289 — 60 (33 ) (1 ) 315 Equipment and vehicles 482 — 109 (75 ) (48 ) 468 Property, plant and equipment 11,780 (95 ) 2,845 (2,297 ) (35 ) 12,198 Right-of-use assets (note 8) — 1,576 335 (175 ) — 1,736 Total property, plant and equipment 11,780 1,481 3,180 (2,472 ) (35 ) 13,934 1 Excludes proceeds on disposition of $38 million (see note 29 ). 2 Includes disposals, reclassifications, and other adjustments. (In millions of dollars) December 31, 2017 December 31, 2018 Net carrying amount Additions 1 Depreciation Disposals and other 2 Net carrying amount Land and buildings 693 40 (32 ) (4 ) 697 Cable and wireless networks 7,046 1,556 (1,128 ) — 7,474 Computer equipment and software 2,189 653 (633 ) — 2,209 Customer premise equipment 475 423 (269 ) — 629 Leasehold improvements 276 44 (31 ) — 289 Equipment and vehicles 464 99 (81 ) — 482 Total property, plant and equipment 11,143 2,815 (2,174 ) (4 ) 11,780 1 Excludes proceeds on disposition of $25 million (see note 29 ). 2 Includes disposals, reclassifications, and other adjustments. Property, plant and equipment not yet in service and therefore not subject to depreciation as at December 31, 2019 was $1,320 million ( 2018 - $1,339 million ). During 2019 , capitalized interest pertaining to property, plant and equipment was recognized at a weighted average rate of approximately 3.9% ( 2018 - 3.9% ). In 2019 , we disposed of certain assets with a net carrying amount of $38 million ( 2018 - $9 million ). We received total proceeds of $38 million ( 2018 - $25 million ) for these assets, thereby recognizing a nil ( 2018 - $16 million ) gain on disposition. Annually, we perform an analysis to identify fully depreciated assets that have been disposed of. In 2019 , this resulted in an adjustment to cost and accumulated depreciation of $1,159 million ( 2018 - $943 million ). The disposals had nil impact on the Consolidated Statements of Income. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
LEASES | LEASES ACCOUNTING POLICY At inception of a contract, we assess whether that contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether: • the contract involves the use of an identified asset; • we have the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use; and • we have the right to direct the use of the asset. LESSEE ACCOUNTING We record a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, consisting of: • the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date; plus • any initial direct costs incurred; and • an estimate of costs to dismantle and remove the underlying asset or restore the site on which it is located; less • any lease incentives received. The right-of-use asset is depreciated on a straight-line basis over the lease term, unless we expect to obtain ownership of the leased asset at the end of the lease. The lease term consists of: • the non-cancellable period of the lease; • periods covered by options to extend the lease, where we are reasonably certain to exercise the option; and • periods covered by options to terminate the lease, where we are reasonably certain not to exercise the option. If we expect to obtain ownership of the leased asset at the end of the lease, we depreciate the right-of-use asset over the underlying asset's estimated useful life. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our incremental borrowing rate. We generally use our incremental borrowing rate as the interest rate implicit in our leases cannot be readily determined. The lease liability is subsequently measured at amortized cost using the effective interest rate method. Lease payments included in the measurement of the lease liability include: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or rate; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that we are reasonably certain to exercise, lease payments in an optional renewal period if we are reasonably certain to exercise an extension option, and penalties for early termination of a lease unless we are reasonably certain not to terminate early. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in our estimate of the amount expected to be payable under a residual value guarantee, or if we change our assessment of whether or not we will exercise a purchase, extension, or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The lease liability is also remeasured when the underlying lease contract is amended. We have elected not to separate fixed non-lease components and account for the lease and any fixed non-lease components as a single lease component. Variable lease payments Certain leases contain provisions that result in differing lease payments over the term as a result of market rate reviews or changes in the Consumer Price Index (CPI) or other similar indices. We reassess the lease liabilities related to these leases when the index or other data is available to calculate the change in lease payments. Certain leases require us to make payments that relate to property taxes, insurance, and other non-rental costs. These non-rental costs are typically variable and are not included in the calculation of the right-of-use asset or lease liability. LESSOR ACCOUNTING When we act as a lessor, we determine at lease inception whether each lease is a finance lease or an operating lease. In order to classify each lease as either finance or operating, we make an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset. If it does, the lease is a finance lease; if not, it is an operating lease. We act as the lessor on certain collocation leases, whereby, due to certain regulatory requirements, we must allow other telecommunication companies to lease space on our wireless network towers. We do not believe we transfer substantially all of the risks and rewards incidental to ownership of the underlying leased asset to the lessee and therefore classify these leases as operating leases. If an arrangement contains both lease and non-lease components, we apply IFRS 15, Revenue from contracts with customers to allocate the consideration in the contract between the lease and the non-lease components. We recognize lease payments received under operating leases into income on a straight-line basis. All of the leases for which we act as lessor are classified as operating leases. USE OF ESTIMATES AND JUDGMENTS ESTIMATES We estimate the lease term by considering the facts and circumstances that can create an economic incentive to exercise an extension option, or not exercise a termination option. We make certain qualitative and quantitative assumptions when deriving the value of the economic incentive. JUDGMENTS We make judgments in determining whether a contract is or contains a lease, which involves assessing whether a contract contains an identified asset (either a physically distinct asset or a capacity portion that represents substantially all of the capacity of the asset). Additionally, the contract should provide us with the right to substantially all of the economic benefits from the use of the asset. We also make judgments in determining whether we have the right to control the use of the identified asset. We have that right when we have the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisions about how and for what purpose the asset is used are predetermined, we have the right to direct the use of the asset if we have the right to operate the asset or if we designed the asset in a way that predetermines how and for what purpose the asset will be used. We make judgments in determining the incremental borrowing rate used to measure our lease liability for each lease contract, including an estimate of the asset-specific security impact. The incremental borrowing rate should reflect the interest that we would have to pay to borrow the funds necessary to obtain a similar asset at a similar term, with a similar security, in a similar economic environment. Certain of our leases contain extension or renewal options that are exercisable only by us and not by the lessor. At lease commencement, we assess whether we are reasonably certain to exercise any of the extension options based on our expected economic return from the lease. We are typically reasonably certain of exercising extension options on our leases, especially related to our networks, primarily due to the significant cost that would be required to relocate our network towers and related equipment. We reassess whether we are reasonably certain to exercise the options if there is a significant event or significant change in circumstance within our control and account for any changes at the date of the reassessment. EXPLANATORY INFORMATION We primarily lease land and buildings relating to our wireless and cable networks, our retail store presence, and certain of our offices and other corporate buildings, as well as customer premise equipment. The non-cancellable contract periods for our leases typically range from five to fifteen years . Operating leases and other rental contracts are for network sites, office premises, and retail outlets across the country. Variable lease payments during 2019 were $22 million . Total rent expense in 2018 was $228 million . LEASE LIABILITIES Below is a summary of the activity related to our lease liabilities for the twelve months ended December 31, 2019 . Certain of our lease liabilities are secured by the underlying right-of-use assets; the underlying right-of-use assets have a net carrying amount of $114 million . (In millions of dollars) December 31, 2019 Lease liabilities, beginning of year 1,545 Net additions 335 Interest expense on lease liabilities 61 Interest payments on lease liabilities (49 ) Principal payments of lease liabilities (167 ) Lease liabilities, end of year 1,725 Current liability 230 Long-term liability 1,495 Lease liabilities 1,725 ACCOUNTING POLICY PRIOR TO JANUARY 1, 2019 Prior to the adoption of IFRS 16, leases of property, plant and equipment were recognized as finance leases if we obtained substantially all the risks and rewards of ownership of the underlying assets. All other leases were classified as operating leases for which we recognized an operating lease expense in operating costs on the Consolidated Statements of Income on a straight-line basis over the term of the lease. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL ACCOUNTING POLICY RECOGNITION AND MEASUREMENT, INCLUDING AMORTIZATION Upon initial recognition, we measure intangible assets at cost unless they are acquired through a business combination, in which case they are measured at fair value. We begin recognizing amortization on intangible assets with finite useful lives when the asset is ready for its intended use. Subsequently, the asset is carried at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of a separately acquired intangible asset comprises: • its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates; and • any directly attributable cost of preparing the asset for its intended use. Indefinite useful lives We do not amortize intangible assets with indefinite lives, including spectrum licences, broadcast licences, and certain brand names. Finite useful lives We amortize intangible assets with finite useful lives, other than acquired program rights, into depreciation and amortization on the Consolidated Statements of Income on a straight-line basis over their estimated useful lives as noted in the table below. We monitor and review the useful lives, residual values, and amortization methods at least once per year and change them if they are different from our previous estimates. We recognize the effects of changes in estimates in net income prospectively. Intangible asset Estimated useful life Customer relationships 3 to 10 years Acquired program rights Program rights are contractual rights we acquire from third parties to broadcast programs, including rights to broadcast live sporting events. We recognize them at cost less accumulated amortization and accumulated impairment losses. We capitalize program rights on the Consolidated Statements of Financial Position when the licence period begins and the program is available for use and amortize them to other external purchases in operating costs on the Consolidated Statements of Income over the expected exhibition period. If we have no intention to air programs, we consider the related program rights impaired and write them off. Otherwise, we test them for impairment as intangible assets with finite useful lives. The costs for multi-year sports and television broadcast rights agreements are recognized in operating expenses during the applicable seasons based on the pattern in which the rights are aired or are expected to be consumed. To the extent that prepayments are made at the commencement of a multi-year contract towards future years' rights fees, these prepayments are recognized as intangible assets and amortized to operating expenses over the contract term. To the extent that prepayments are made for annual contractual fees within a season, they are included in other current assets on our Consolidated Statements of Financial Position, as the rights will be consumed within the next twelve months. Goodwill We recognize goodwill arising from business combinations when the fair value of the separately identifiable assets we acquired and liabilities we assumed is lower than the consideration we paid (including the recognized amount of the non-controlling interest, if any). If the fair value of the consideration transferred is lower than that of the separately identified assets and liabilities, we immediately recognize the difference as a gain in net income. IMPAIRMENT TESTING We test intangible assets with finite useful lives for impairment whenever an event or change in circumstances indicates that their carrying amounts may not be recoverable. We test indefinite-life intangible assets and goodwill for impairment once per year as at October 1, or more frequently if we identify indicators of impairment. If we cannot estimate the recoverable amount of an individual intangible asset because it does not generate independent cash inflows, we test the entire CGU to which it belongs for impairment. Goodwill is allocated to CGUs (or groups of CGUs) based on the level at which management monitors goodwill, which cannot be higher than an operating segment. The allocation of goodwill is made to CGUs (or groups of CGUs) that are expected to benefit from the synergies of the business combination from which the goodwill arose. Recognition and measurement of an impairment charge An intangible asset or goodwill is impaired if the recoverable amount is less than the carrying amount. The recoverable amount of a CGU or asset is the higher of its: • fair value less costs to sell; and • value in use. If our estimate of the asset's or CGU's recoverable amount is less than its carrying amount, we reduce its carrying amount to the recoverable amount and recognize the loss in net income immediately. We reverse a previously recognized impairment loss, except in respect of goodwill, if our estimate of the recoverable amount of a previously impaired asset or CGU has increased such that the impairment recognized in a previous year has reversed. The reversal is recognized by increasing the asset's or CGU's carrying amount to our new estimate of its recoverable amount. The carrying amount of the asset or CGU subsequent to the reversal cannot be greater than its carrying amount had we not recognized an impairment loss in previous years. USE OF ESTIMATES AND JUDGMENTS ESTIMATES We use estimates in determining the recoverable amount of intangible assets and goodwill. The determination of the recoverable amount for the purpose of impairment testing requires the use of significant estimates, such as: • future cash flows; • terminal growth rates; and • discount rates. We estimate value in use for impairment tests by discounting estimated future cash flows to their present value. We estimate the discounted future cash flows for periods of up to five years, depending on the CGU , and a terminal value. The future cash flows are based on our estimates and expected future operating results of the CGU after considering economic conditions and a general outlook for the CGU's industry. Our discount rates consider market rates of return, debt to equity ratios, and certain risk premiums, among other things. The terminal value is the value attributed to the CGU's operations beyond the projected time period of the cash flows using a perpetuity rate based on expected economic conditions and a general outlook for the industry. We determine fair value less costs to sell in one of the following two ways: • Analyzing discounted cash flows - we estimate the discounted future cash flows for five-year periods and a terminal value, similar to the value in use methodology described above, while applying assumptions consistent with those a market participant would make. Future cash flows are based on our estimates of expected future operating results of the CGU. Our estimates of future cash flows, terminal values, and discount rates consider similar factors to those described above for value in use estimates; or • Using a market approach - we estimate the recoverable amount of the CGU using multiples of operating performance of comparable entities and precedent transactions in that industry. We make certain assumptions when deriving expected future cash flows, which may include assumptions pertaining to discount and terminal growth rates. These assumptions may differ or change quickly depending on economic conditions or other events. It is therefore possible that future changes in assumptions may negatively affect future valuations of CGUs and goodwill, which could result in impairment losses. JUDGMENTS We make significant judgments that affect the measurement of our intangible assets and goodwill. Judgment is applied when deciding to designate our spectrum and broadcast licences as assets with indefinite useful lives since we believe the licences are likely to be renewed for the foreseeable future such that there is no limit to the period over which these assets are expected to generate net cash inflows. We make judgments to determine that these assets have indefinite lives, analyzing all relevant factors, including the expected usage of the asset, the typical life cycle of the asset, and anticipated changes in the market demand for the products and services the asset helps generate. After review of the competitive, legal, regulatory, and other factors, it is our view that these factors do not limit the useful lives of our spectrum and broadcast licences. Judgment is also applied in choosing methods of amortizing our intangible assets and program rights that we believe most accurately represent the consumption of those assets and are most representative of the economic substance of the intended use of the underlying assets. Finally, we make judgments in determining CGUs and the allocation of goodwill to CGUs or groups of CGUs for the purpose of impairment testing. EXPLANATORY INFORMATION The table below summarizes our intangible assets as at December 31, 2019 , 2018 , and 2017 . (In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017 Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Indefinite-life intangible assets: Spectrum licences 8,331 — — 8,331 6,600 — — 6,600 6,600 — — 6,600 Broadcast licences 333 — (99 ) 234 333 — (99 ) 234 329 — (99 ) 230 Brand names 420 (270 ) (14 ) 136 420 (270 ) (14 ) 136 420 (270 ) (14 ) 136 Finite-life intangible assets: Customer relationships 1,611 (1,578 ) — 33 1,609 (1,562 ) — 47 1,609 (1,525 ) — 84 Acquired program rights 253 (77 ) (5 ) 171 251 (58 ) (5 ) 188 263 (64 ) (5 ) 194 Total intangible assets 10,948 (1,925 ) (118 ) 8,905 9,213 (1,890 ) (118 ) 7,205 9,221 (1,859 ) (118 ) 7,244 Goodwill 4,144 — (221 ) 3,923 4,126 — (221 ) 3,905 4,126 — (221 ) 3,905 Total intangible assets and goodwill 15,092 (1,925 ) (339 ) 12,828 13,339 (1,890 ) (339 ) 11,110 13,347 (1,859 ) (339 ) 11,149 The tables below summarize the changes in the net carrying amounts of intangible assets and goodwill in 2019 and 2018 . (In millions of dollars) December 31, 2018 December 31, 2019 Net carrying amount Net additions Amortization 1 Net carrying amount Spectrum licences 6,600 1,731 — 8,331 Broadcast licences 234 — — 234 Brand names 136 — — 136 Customer relationships 47 2 (16 ) 33 7,017 1,733 (16 ) 8,734 Acquired program rights 188 60 (77 ) 171 Total intangible assets 7,205 1,793 (93 ) 8,905 Goodwill 3,905 18 — 3,923 Total intangible assets and goodwill 11,110 1,811 (93 ) 12,828 1 Of the $93 million of total amortization, $77 million related to acquired program rights is included in other external purchases in operating costs (see note 6 ), and $16 million in depreciation and amortization on the Consolidated Statements of Income. (In millions of dollars) December 31, 2017 December 31, 2018 Net carrying amount Net additions Amortization 1 Other 2 Net carrying amount Spectrum licences 6,600 — — — 6,600 Broadcast licences 230 4 — — 234 Brand names 136 — — — 136 Customer relationships 84 — (37 ) — 47 7,050 4 (37 ) — 7,017 Acquired program rights 194 54 (58 ) (2 ) 188 Total intangible assets 7,244 58 (95 ) (2 ) 7,205 Goodwill 3,905 — — — 3,905 Total intangible assets and goodwill 11,149 58 (95 ) (2 ) 11,110 1 Of the $95 million of total amortization, $58 million related to acquired program rights is included in other external purchases in operating costs (see note 6 ), and $37 million in depreciation and amortization on the Consolidated Statements of Income. 2 Includes disposals, writedowns, reclassifications, and other adjustments. ANNUAL IMPAIRMENT TESTING For purposes of testing goodwill for impairment, our CGUs, or groups of CGUs, correspond to our operating segments as disclosed in note 4 . Below is an overview of the methods and key assumptions we used in 2019 to determine recoverable amounts for CGUs, or groups of CGUs, with indefinite-life intangible assets or goodwill that we consider significant. (In millions of dollars, except periods used and rates) Carrying value of goodwill Carrying value of indefinite-life intangible assets Recoverable amount method Period of projected cash flows (years) Terminal growth rates (%) Pre-tax discount rates (%) Wireless 1,160 8,465 Value in use 5 0.5 8.4 Cable 1,808 — Value in use 5 1.5 7.8 Media 955 235 Fair value less cost to sell 5 2.0 9.8 Our fair value measurement for Media is classified as Level 3 in the fair value hierarchy. We did not recognize an impairment charge related to our goodwill or intangible assets in 2019 or 2018 |
RESTRUCTURING, ACQUISITION AND
RESTRUCTURING, ACQUISITION AND OTHER | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring, Acquisition, And Other [Abstract] | |
RESTRUCTURING, ACQUISITION AND OTHER | RESTRUCTURING, ACQUISITION AND OTHER During the year ended December 31, 2019 , we incurred $139 million ( 2018 - $210 million ) in restructuring, acquisition and other expenses. These expenses in 2019 and 2018 primarily consisted of severance costs associated with the targeted restructuring of our employee base and other contract termination costs. In 2018 , these costs also included certain sports-related contract termination costs. |
FINANCE COSTS
FINANCE COSTS | 12 Months Ended |
Dec. 31, 2019 | |
Finance Costs [Abstract] | |
FINANCE COSTS | FINANCE COSTS Years ended December 31 (In millions of dollars) Note 2019 2018 Interest on borrowings 1 746 709 Interest on post-employment benefits liability 23 11 14 Loss on repayment of long-term debt 21 19 28 (Gain) loss on foreign exchange (79 ) 136 Change in fair value of derivative instruments 80 (95 ) Capitalized interest (19 ) (20 ) Other 21 21 Finance costs before interest on lease liabilities 779 793 Interest expense on lease liabilities 8 61 — Total finance costs 840 793 1 Interest on borrowings includes interest on short-term borrowings and on long-term debt. FOREIGN EXCHANGE AND CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS We recognized $79 million in net foreign exchange gains in 2019 ( 2018 - $136 million in net losses ). These gains and losses were primarily attributed to our US dollar-denominated commercial paper (US CP) program borrowings (see note 17 ). These foreign exchange gains ( 2018 - losses ) were partially offset by the $80 million loss related to the change in fair value of derivatives ( 2018 - $95 million gain ) that was primarily attributed to the debt derivatives, which were not designated as hedges for accounting purposes, we used to substantially offset the foreign exchange risk related to these US dollar-denominated borrowings. During the year ended December 31, 2018, after determining we would not be able to exercise our outstanding bond forward derivatives (bond forwards) within the designated time frame, we discontinued hedge accounting and reclassified a $21 million loss from the hedging reserve within shareholders' equity to "change in fair value of derivative instruments" within finance costs. We subsequently extended the bond forwards and redesignated them as effective hedges. During the year ended December 31, 2019, we exercised these bond forwards. See note 17 for more information on our bond forwards. |
OTHER (INCOME) EXPENSE
OTHER (INCOME) EXPENSE | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
OTHER (INCOME) EXPENSE | OTHER (INCOME) EXPENSE Years ended December 31 (In millions of dollars) Note 2019 2018 Losses from associates and joint ventures 18 25 — Other investment income (35 ) (32 ) Total other income (10 ) (32 ) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES ACCOUNTING POLICY Income tax expense includes both current and deferred taxes. We recognize income tax expense in net income unless it relates to an item recognized directly in equity or other comprehensive income. We provide for income taxes based on all of the information that is currently available. Current tax expense is tax we expect to pay or receive based on our taxable income or loss during the year. We calculate the current tax expense using tax rates enacted or substantively enacted as at the reporting date, including any adjustment to taxes payable or receivable related to previous years. Deferred tax assets and liabilities arise from temporary differences between the carrying amounts of the assets and liabilities we recognize on our Consolidated Statements of Financial Position and their respective tax bases. We calculate deferred tax assets and liabilities using enacted or substantively enacted tax rates that will apply in the years in which the temporary differences are expected to reverse. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities and they relate to income taxes levied by the same authority on: • the same taxable entity; or • different taxable entities where these entities intend to settle current tax assets and liabilities on a net basis or the tax assets and liabilities will be realized and settled simultaneously. We recognize a deferred tax asset for unused losses, tax credits, and deductible temporary differences to the extent it is probable that future taxable income will be available to use the asset. USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We make significant judgments in interpreting tax rules and regulations when we calculate income tax expense. We make judgments to evaluate whether we can recover a deferred tax asset based on our assessment of existing tax laws, estimates of future profitability, and tax planning strategies. EXPLANATORY INFORMATION Years ended December 31 (In millions of dollars) 2019 2018 Total current tax expense 269 483 Deferred tax expense: Origination of temporary differences 466 275 Revaluation of deferred tax balances due to legislative changes (23 ) — Total deferred tax expense 443 275 Total income tax expense 712 758 Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the income tax expense for the year. Years ended December 31 (In millions of dollars, except rates) 2019 2018 Statutory income tax rate 26.7 % 26.7 % Income before income tax expense 2,755 2,817 Computed income tax expense 736 752 Increase (decrease) in income tax expense resulting from: Non-deductible stock-based compensation — 5 Non-deductible portion of equity losses 7 1 Income tax adjustment, legislative tax change (23 ) — Non-taxable portion of capital gains (2 ) (9 ) Other (6 ) 9 Total income tax expense 712 758 Effective income tax rate 25.8 % 26.9 % DEFERRED TAX ASSETS AND LIABILITIES Below is a summary of the movement of net deferred tax assets and liabilities during 2019 and 2018 . Deferred tax assets (liabilities) Property, plant and equipment and inventory Goodwill and other intangibles Investments Non-capital loss carryforwards Contract and deferred commission cost assets Other Total December 31, 2018 (1,145 ) (1,192 ) (66 ) 29 (515 ) (21 ) (2,910 ) Effect of IFRS 16 adoption (see note 2) — — — — — 9 9 (Expense) recovery in net income (221 ) (126 ) 2 (17 ) (55 ) (26 ) (443 ) (Expense) recovery in other comprehensive income — — (104 ) — — 11 (93 ) December 31, 2019 (1,366 ) (1,318 ) (168 ) 12 (570 ) (27 ) (3,437 ) Deferred tax assets (liabilities) (In millions of dollars) Property, plant and equipment and inventory Goodwill and other intangibles Investments Non-capital loss carryforwards Contract and deferred commission cost assets Other Total December 31, 2017 (1,060 ) (1,075 ) (126 ) 18 (418 ) 40 (2,621 ) (Expense) recovery in net income (85 ) (117 ) (3 ) 11 (97 ) 16 (275 ) Recovery (expense) in other comprehensive income — — 63 — — (77 ) (14 ) December 31, 2018 (1,145 ) (1,192 ) (66 ) 29 (515 ) (21 ) (2,910 ) We have not recognized deferred tax assets for the following items: As at December 31 (In millions of dollars) 2019 2018 Realized and accrued capital losses in Canada that can be applied against future capital gains 41 98 Tax losses in foreign jurisdictions that expire between 2023 and 2038 67 68 Deductible temporary differences in foreign jurisdictions 41 25 Total unrecognized temporary differences 149 191 There are taxable temporary differences associated with our investments in Canadian domestic subsidiaries. We do not recognize deferred tax liabilities for these temporary differences because we are able to control the timing of the reversal and the reversal is not probable in the foreseeable future. Reversing these taxable temporary differences is not expected to result in any significant tax implications. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE ACCOUNTING POLICY We calculate basic earnings per share by dividing the net income or loss attributable to our RCI Class A Voting and RCI Class B Non-Voting shareholders by the weighted average number of RCI Class A Voting and RCI Class B Non-Voting shares ( Class A Shares and Class B Non-Voting Shares , respectively) outstanding during the year. We calculate diluted earnings per share by adjusting the net income or loss attributable to Class A and Class B Non-Voting shareholders and the weighted average number of Class A Shares and Class B Non-Voting Shares outstanding for the effect of all dilutive potential common shares. We use the treasury stock method for calculating diluted earnings per share, which considers the impact of employee stock options and other potentially dilutive instruments. Options with tandem stock appreciation rights or cash payment alternatives are accounted for as cash-settled awards. As these awards can be exchanged for common shares of RCI, they are considered potentially dilutive and are included in the calculation of our diluted net earnings per share if they have a dilutive impact in the period. EXPLANATORY INFORMATION Years ended December 31 (In millions of dollars, except per share amounts) 2019 2018 Numerator (basic) - Net income for the year 2,043 2,059 Denominator - Number of shares (in millions): Weighted average number of shares outstanding - basic 512 515 Effect of dilutive securities (in millions): Employee stock options and restricted share units 1 1 Weighted average number of shares outstanding - diluted 513 516 Earnings per share: Basic $3.99 $4.00 Diluted $3.97 $3.99 For the years ended December 31, 2019 and 2018 , accounting for outstanding share-based payments using the equity-settled method for stock-based compensation was determined to be more dilutive than using the cash-settled method. As a result, net income for the year ended December 31, 2019 was reduced by $6 million ( 2018 - $2 million ) in the diluted earnings per share calculation. For the year ended December 31, 2019 , there were 1,077,875 options out of the money ( 2018 - 37,715 ) for purposes of the calculation of earnings per share. These options were excluded from the calculation of the effect of dilutive securities because they were anti-dilutive. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE ACCOUNTING POLICY Accounts receivable represent amounts owing to us that are currently due and collectible. We initially recognize accounts receivable on the date they originate. We measure accounts receivable initially at fair value, and subsequently at amortized cost, with changes recognized in net income. We measure an impairment loss for accounts receivable as the excess of the carrying amount over the present value of future cash flows we expect to derive from it, if any. The excess is allocated to an allowance for doubtful accounts and recognized as a loss in net income. EXPLANATORY INFORMATION As at December 31 (In millions of dollars) Note 2019 2018 Customer accounts receivable 1,579 1,529 Other accounts receivable 785 762 Allowance for doubtful accounts 15 (60 ) (55 ) Total accounts receivable 2,304 2,236 We have retrospectively reclassified $23 million as at December 31, 2018 and January 1, 2019 related to our wireless financing programs from "accounts receivable" to "other current assets" as the collection time frame of the amounts differs from accounts receivable. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
INVENTORIES | INVENTORIES ACCOUNTING POLICY We measure inventories, including wireless devices and merchandise for resale, at the lower of cost (determined on a weighted average cost basis for Wireless devices and accessories and a first-in, first-out basis for other finished goods and merchandise) and net realizable value. We reverse a previous writedown to net realizable value, not to exceed the original recognized cost, if the inventories later increase in value. EXPLANATORY INFORMATION As at December 31 (In millions of dollars) 2019 2018 Wireless devices and accessories 380 399 Other finished goods and merchandise 80 67 Total inventories 460 466 Cost of equipment sales and merchandise for resale includes $2,496 million of inventory costs for 2019 ( 2018 - $2,515 million ). |
FINANCIAL RISK MANAGEMENT AND F
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS ACCOUNTING POLICY Recognition We initially recognize cash and cash equivalents, bank advances, accounts receivable, financing receivables, debt securities, and accounts payable and accrued liabilities on the date they originate. All other financial assets and financial liabilities are initially recognized on the trade date when we become a party to the contractual provisions of the instrument. Classification and measurement We measure financial instruments by grouping them into classes upon initial recognition, based on the purpose of the individual instruments. We initially measure all financial instruments at fair value plus, in the case of our financial instruments not classified as fair value through profit and loss (FVTPL) or FVTOCI, transaction costs that are directly attributable to the acquisition or issuance of the financial instruments. The classifications and methods of measurement subsequent to initial recognition of our financial assets and financial liabilities are as follows: Financial instrument Classification and measurement method Financial assets Cash and cash equivalents Amortized cost Accounts receivable Amortized cost Financing receivables Amortized cost Investments, measured at FVTOCI FVTOCI with no reclassification to net income 1 Financial liabilities Bank advances Amortized cost Short-term borrowings Amortized cost Accounts payable Amortized cost Accrued liabilities Amortized cost Long-term debt Amortized cost Lease liabilities Amortized cost Derivatives 2 Debt derivatives 3 FVTOCI and FVTPL Bond forwards FVTOCI Expenditure derivatives FVTOCI Equity derivatives FVTPL 4 1 Subsequently measured at fair value with changes recognized in the FVTOCI investment reserve. 2 Derivatives can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately into net income. 3 Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes and are measured at FVTPL. Debt derivatives related to our senior notes and debentures are designated as hedges for accounting purposes and are measured at FVTOCI. 4 Subsequent changes are offset against stock-based compensation expense or recovery in operating costs. Offsetting financial assets and financial liabilities We offset financial assets and financial liabilities and present the net amount on the Consolidated Statements of Financial Position when we have a legal right to offset them and intend to settle on a net basis or realize the asset and liability simultaneously. Derivative instruments We use derivative instruments to manage risks related to certain activities in which we are involved. They include: Derivatives The risk they manage Types of derivative instruments Debt derivatives Impact of fluctuations in foreign exchange rates on principal and interest payments for US dollar-denominated senior notes and debentures, credit facility borrowings, commercial paper borrowings, and certain lease liabilities Cross-currency interest rate exchange agreements Bond forwards Impact of fluctuations in market interest rates on forecast interest payments for expected long-term debt Forward interest rate agreements Expenditure derivatives Impact of fluctuations in foreign exchange rates on forecast US dollar-denominated expenditures Forward foreign exchange agreements and foreign exchange option agreements Equity derivatives Impact of fluctuations in share price on stock-based compensation expense Total return swap agreements We use derivatives only to manage risk, and not for speculative purposes. When we designate a derivative instrument as a hedging instrument for accounting purposes, we first determine that the hedging instrument will be highly effective in offsetting the changes in fair value or cash flows of the item it is hedging. We then formally document the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy and the methods we will use to assess the ongoing effectiveness of the hedging relationship. We assess, on a quarterly basis, whether each hedging instrument continues to be highly effective in offsetting the changes in the fair value or cash flows of the item it is hedging. We assess host contracts in order to identify embedded derivatives. Embedded derivatives are separated from the host contract and accounted for as separate derivatives if the host contract is not a financial asset and certain criteria are met. Hedge ratio Our policy is to hedge 100% of the foreign currency risk arising from principal and interest payment obligations on US dollar-denominated senior notes and debentures using debt derivatives. We also hedge up to 100% of the remaining lease payments when we enter into debt derivatives on our US dollar-denominated lease liabilities. We typically hedge up to 100% of forecast foreign currency expenditures net of foreign currency cash inflows using expenditure derivatives. From time to time, we hedge up to 100% of the interest rate risk on forecast future senior note issuances using bond forwards. Hedging reserve The hedging reserve represents the accumulated change in fair value of our derivative instruments to the extent they were effective hedges for accounting purposes, less accumulated amounts reclassified into net income. Deferred transaction costs and discounts We defer transaction costs and discounts associated with issuing long-term debt and direct costs we pay to lenders to obtain certain credit facilities and amortize them using the effective interest method over the life of the related instrument. FVTOCI investment reserve The FVTOCI investment reserve represents the accumulated change in fair value of our equity investments that are measured at FVTOCI less accumulated impairment losses related to the investments and accumulated amounts reclassified into equity. Impairment (expected credit losses) We consider the credit risk of a financial asset at initial recognition and at each reporting period thereafter until it is derecognized. For a financial asset that is determined to have low credit risk at the reporting date and that has not had significant increases in credit risk since initial recognition, we measure any impairment loss based on the credit losses we expect to recognize over the next twelve months. For other financial assets, we will measure an impairment loss based on the lifetime expected credit losses. Certain assets, such as trade receivables and contract assets without significant financing components, must always be recorded at lifetime expected credit losses. Lifetime expected credit losses are estimates of all possible default events over the expected life of a financial instrument. Twelve-month expected credit losses are estimates of all possible default events within twelve months of the reporting date or over the expected life of a financial instrument, whichever is shorter. Financial assets that are significant in value are assessed individually. All other financial assets are assessed collectively based on the nature of each asset. We measure impairment for financial assets as follows: • Contract assets - we measure an impairment loss for contract assets based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income (see note 5 ). • Accounts receivable - we measure an impairment loss for accounts receivable based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income (see note 15 ). • Financing receivables - we measure an impairment loss for financing receivables based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income. • Investments measured at FVTOCI - we measure an impairment loss for equity investments measured at FVTOCI as the excess of the cost to acquire the asset (less any impairment loss we have previously recognized) over its current fair value, if any. The difference is recognized in the FVTOCI investment reserve. We consider financial assets to be in default when, in the case of contract assets and accounts receivable, the counterparty is unlikely to satisfy its obligations to us in full. Our investments measured at FVTOCI cannot default. To determine if our financial assets are in default, we consider the amount of time for which it has been outstanding, the reason for the amount being outstanding (for example, if the customer has ongoing service or, if they have been deactivated, whether voluntarily or involuntarily), and the risk profile of the underlying customers. We typically write-off accounts receivable when they have been outstanding for a significant period of time. USE OF ESTIMATES AND JUDGMENTS ESTIMATES Fair value estimates related to our derivatives are made at a specific point in time based on relevant market information and information about the underlying financial instruments. These estimates require assessment of the credit risk of the parties to the instruments and the instruments' discount rates. These fair values and underlying estimates are also used in the tests of effectiveness of our hedging relationships. JUDGMENTS We make significant judgments in determining whether our financial instruments qualify for hedge accounting. These judgments include assessing whether the forecast transactions designated as hedged items in hedging relationships will materialize as forecast, whether the hedging relationships designated as effective hedges for accounting purposes continue to qualitatively be effective, and determining the methodology to determine the fair values used in testing the effectiveness of hedging relationships. EXPLANATORY INFORMATION We are exposed to credit, liquidity, market price, foreign exchange, and interest rate risks. Our primary risk management objective is to protect our income, cash flows, and, ultimately, shareholder value. We design and implement the risk management strategies discussed below to ensure our risks and the related exposures are consistent with our business objectives and risk tolerance. Below is a summary of our potential risk exposures by financial instrument. Financial instrument Financial risks Financial assets Cash and cash equivalents Credit and foreign exchange Accounts receivable Credit and foreign exchange Financing receivables Credit Investments, measured at FVTOCI Liquidity, market price, and foreign exchange Financial liabilities Bank advances Liquidity Short-term borrowings Liquidity, foreign exchange, and interest rate Accounts payable Liquidity Accrued liabilities Liquidity Long-term debt Liquidity, foreign exchange, and interest rate Lease liabilities Liquidity and foreign exchange Derivatives 1 Debt derivatives Credit, liquidity, and foreign exchange Bond forwards Credit, liquidity, and interest rate Expenditure derivatives Credit, liquidity, and foreign exchange Equity derivatives Credit, liquidity, and market price 1 Derivatives can be in an asset or liability position at a point in time historically or in the future. CREDIT RISK Credit risk represents the financial loss we could experience if a counterparty to a financial instrument, from whom we have an amount owing, failed to meet its obligations under the terms and conditions of its contracts with us. Our credit risk exposure is primarily attributable to our accounts receivable, our financing receivables, and to our debt, expenditure, and equity derivatives. Our broad customer base limits the concentration of this risk. Our accounts receivable and financing receivables on the Consolidated Statements of Financial Position are net of allowances for doubtful accounts. Accounts receivable Our accounts receivable do not contain significant financing components and therefore we measure our allowance for doubtful accounts using lifetime expected credit losses related to our accounts receivable. We believe the allowance for doubtful accounts sufficiently reflects the credit risk associated with our accounts receivable. As at December 31, 2019 , $464 million ( 2018 - $477 million ) of gross accounts receivable are considered past due, which is defined as amounts outstanding beyond normal credit terms and conditions for the respective customers. Below is a summary of the aging of our customer accounts receivable. As at December 31 (In millions of dollars) 2019 2018 Customer accounts receivable (net of allowance for doubtful accounts) Less than 30 days past billing date 1,053 970 30-60 days past billing date 274 300 61-90 days past billing date 90 100 Greater than 90 days past billing date 102 104 Total 1,519 1,474 Below is a summary of the activity related to our allowance for doubtful accounts. Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 55 61 Allowance for doubtful accounts expense 238 201 Net use 1 (233 ) (207 ) Balance, end of year 60 55 1 Includes $17 million of recoveries arising from the sale of fully provided for accounts receivable for the year ended December 31, 2018. We use various controls and processes, such as credit checks, deposits on account, and billing in advance, to mitigate credit risk. We monitor and take appropriate action to suspend services when customers have fully used their approved credit limits or violated established payment terms. While our credit controls and processes have been effective in managing credit risk, they cannot eliminate credit risk and there can be no assurance that these controls will continue to be effective or that our current credit loss experience will continue. Derivative instruments Credit risk related to our debt derivatives, expenditure derivatives, and equity derivatives arises from the possibility that the counterparties to the agreements may default on their obligations. We assess the creditworthiness of the counterparties to minimize the risk of counterparty default and do not require collateral or other security to support the credit risk associated with these derivatives. Counterparties to the entire portfolio of our derivatives are financial institutions with a S&P Global Ratings (or the equivalent) ranging from A to AA-. LIQUIDITY RISK Liquidity risk is the risk that we will not be able to meet our financial obligations as they fall due. We manage liquidity risk by managing our commitments and maturities, capital structure, and financial leverage (see note 3 ). We also manage liquidity risk by continually monitoring actual and projected cash flows to ensure we will have sufficient liquidity to meet our liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2019 and 2018 . December 31, 2019 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,238 2,238 2,238 — — — Accounts payable and accrued liabilities 3,033 3,033 3,033 — — — Long-term debt 15,967 16,130 — 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 — 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,287 1,248 39 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,286 ) (1,247 ) (39 ) — — Equity derivative instruments — (55 ) (55 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 9,903 — — 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (10,780 ) — — (1,753 ) (9,027 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,622 1,622 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,593 ) (1,593 ) — — — Net carrying amount of derivatives (asset) (1,439 ) 21,550 22,745 5,476 2,475 2,325 12,469 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. December 31, 2018 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,255 2,255 2,255 — — — Accounts payable and accrued liabilities 3,052 3,052 3,052 — — — Long-term debt 14,290 14,404 900 2,350 2,442 8,712 Other long-term financial liabilities 38 38 1 24 5 8 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,341 1,045 296 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,473 ) (1,146 ) (327 ) — — Equity derivative instruments — (92 ) (92 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 6,920 — — 1,392 5,528 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (8,254 ) — — (1,842 ) (6,412 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,560 1,560 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,601 ) (1,601 ) — — — Bond forwards — 87 87 — — — Net carrying amount of derivatives (asset) (1,500 ) 18,135 18,237 6,061 2,343 1,997 7,836 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. Below is a summary of the net interest payments over the life of the long-term debt, including the impact of the associated debt derivatives, as at December 31, 2019 and 2018 . December 31, 2019 Less than 1 year 1 to 3 years 4 to 5 years More than 5 years (In millions of dollars) Net interest payments 735 1,299 1,121 8,763 December 31, 2018 Less than 1 year 1 to 3 years 4 to 5 years More than 5 years (In millions of dollars) Net interest payments 658 1,141 913 5,923 MARKET PRICE RISK Market price risk is the risk that changes in market prices, such as fluctuations in the market prices of our investments measured at FVTOCI or our share price will affect our income, cash flows, or the value of our financial instruments. The derivative instruments we use to manage this risk are described in this note. Market price risk - publicly traded investments We manage risk related to fluctuations in the market prices of our investments in publicly traded companies by regularly reviewing publicly available information related to these investments to ensure that any risks are within our established levels of risk tolerance. We do not engage in risk management practices such as hedging, derivatives, or short selling with respect to our publicly traded investments. Market price risk - Class B Non-Voting Shares Our liability related to stock-based compensation is remeasured at fair value each period. Stock-based compensation expense is affected by changes in the price of our Class B Non-Voting Shares during the life of an award, including stock options, restricted share units (RSUs), and deferred share units (DSUs). We use equity derivatives from time to time to manage the exposure in our stock-based compensation liability. As a result of our equity derivatives, a one-dollar change in the price of a Class B Non-Voting Share would not have a material effect on net income. FOREIGN EXCHANGE RISK We use debt derivatives to manage risks from fluctuations in foreign exchange rates associated with our US dollar-denominated long-term debt, short-term borrowings, and lease liabilities. We designate the debt derivatives related to our senior notes and debentures and lease liabilities as hedges for accounting purposes against the foreign exchange risk associated with specific debt instruments and lease contracts, respectively. We have not designated the debt derivatives related to our US CP program as hedges for accounting purposes. We use expenditure derivatives to manage the foreign exchange risk in our operations, designating them as hedges for certain of our forecast operational and capital expenditures. As at December 31, 2019 , all of our US dollar-denominated long-term debt, short-term borrowings, and lease liabilities were hedged against fluctuations in foreign exchange rates using debt derivatives. With respect to our long-term debt and US CP program, as a result of our debt derivatives, a one-cent change in the Canadian dollar relative to the US dollar would have no effect on net income. A portion of our accounts receivable and accounts payable and accrued liabilities is denominated in US dollars. Due to the short-term nature of these receivables and payables, they carry no significant risk from fluctuations in foreign exchange rates as at December 31, 2019 . INTEREST RATE RISK We are exposed to risk of changes in market interest rates due to the impact this has on interest expense for our short-term borrowings and bank credit facilities. As at December 31, 2019 , 87.2% of our outstanding long-term debt and short-term borrowings was at fixed interest rates ( 2018 - 85.3% ). Sensitivity analysis Below is a sensitivity analysis for significant exposures with respect to our publicly traded investments, expenditure derivatives, short-term borrowings, senior notes, and bank credit facilities as at December 31, 2019 and 2018 with all other variables held constant. It shows how net income and other comprehensive income would have been affected by changes in the relevant risk variables. Net income Other comprehensive income (Change in millions of dollars) 2019 2018 2019 2018 Share price of publicly traded investments $1 change — — 14 14 Expenditure derivatives - change in foreign exchange rate $0.01 change in Cdn$ relative to US$ — — 7 8 Short-term borrowings 1% change in interest rates 17 17 — — DERIVATIVE INSTRUMENTS As at December 31, 2019 and 2018 , all of our US dollar-denominated long-term debt instruments were hedged against fluctuations in foreign exchange rates for accounting purposes. Below is a summary of our net asset (liability) position for our various derivatives. As at December 31, 2019 (In millions of dollars, except exchange rates) Notional Exchange Notional Fair value Debt derivatives accounted for as cash flow hedges: As assets 5,800 1.1357 6,587 1,508 As liabilities 2,570 1.3263 3,409 (96 ) Short-term debt derivatives not accounted for as hedges: As liabilities 1,223 1.3227 1,618 (29 ) Net mark-to-market debt derivative asset 1,383 Expenditure derivatives accounted for as cash flow hedges: As assets 270 1.2391 335 16 As liabilities 720 1.3228 952 (15 ) Net mark-to-market expenditure derivative asset 1 Equity derivatives not accounted for as hedges: As assets 223 55 Net mark-to-market asset 1,439 As at December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Fair value Debt derivatives accounted for as cash flow hedges: As assets 5,500 1.1243 6,184 1,354 As liabilities 550 1.3389 736 (22 ) Short-term debt derivatives not accounted for as hedges: As assets 1,178 1.3276 1,564 41 Net mark-to-market debt derivative asset 1,373 Bond forwards accounted for as cash flow hedges: As liabilities — — 900 (87 ) Expenditure derivatives accounted for as cash flow hedges: As assets 1,080 1.2413 1,341 122 Equity derivatives not accounted for as hedges: As assets — — 258 92 Net mark-to-market asset 1,500 Below is a summary of the net cash (payments) proceeds on debt derivatives. Years ended December 31 (In millions of dollars) 2019 2018 Proceeds on debt derivatives related to US commercial paper 17,056 19,211 Proceeds on debt derivatives related to credit facility borrowings 564 157 Proceeds on debt derivatives related to senior notes — 1,761 Total proceeds on debt derivatives 17,620 21,129 Payments on debt derivatives related to US commercial paper (17,069 ) (19,148 ) Payments on debt derivatives related to credit facility borrowings (561 ) (157 ) Payments on debt derivatives related to senior notes — (1,436 ) Total payments on debt derivatives (17,630 ) (20,741 ) Net (payments) proceeds on settlement of debt derivatives (10 ) 388 Below is a summary of the changes in fair value of our derivative instruments for 2019 and 2018 . Year ended December 31, 2019 Debt derivatives (hedged) Debt derivatives (unhedged) Bond forwards Expenditure derivatives Equity derivatives Total instruments (In millions of dollars) Derivative instruments, beginning of year 1,332 41 (87 ) 122 92 1,500 Proceeds received from settlement of derivatives — (17,620 ) — (1,194 ) (15 ) (18,829 ) Payment on derivatives settled — 17,630 111 1,124 — 18,865 Increase (decrease) in fair value of derivatives 80 (80 ) (24 ) (51 ) (22 ) (97 ) Derivative instruments, end of year 1,412 (29 ) — 1 55 1,439 Mark-to-market asset 1,508 — — 16 55 1,579 Mark-to-market liability (96 ) (29 ) — (15 ) — (140 ) Mark-to-market asset (liability) 1,412 (29 ) — 1 55 1,439 Year ended December 31, 2018 Debt derivatives (hedged) Debt derivatives (unhedged) Bond forwards Expenditure derivatives Equity derivatives Total instruments (In millions of dollars) Derivative instruments, beginning of year 1,152 (23 ) (64 ) (39 ) 68 1,094 Proceeds received from settlement of derivatives (1,761 ) (19,368 ) — (1,089 ) (4 ) (22,222 ) Payment on derivatives settled 1,436 19,305 — 1,093 — 21,834 Increase (decrease) in fair value of derivatives 505 127 (23 ) 157 28 794 Derivative instruments, end of year 1,332 41 (87 ) 122 92 1,500 Mark-to-market asset 1,354 41 — 122 92 1,609 Mark-to-market liability (22 ) — (87 ) — — (109 ) Mark-to-market asset (liability) 1,332 41 (87 ) 122 92 1,500 Below is a summary of the derivative instruments assets and derivative instruments liabilities reflected on our Consolidated Statements of Financial Position. As at December 31 (In millions of dollars) 2019 2018 Current asset 101 270 Long-term asset 1,478 1,339 1,579 1,609 Current liability (50 ) (87 ) Long-term liability (90 ) (22 ) (140 ) (109 ) Net mark-to-market asset 1,439 1,500 As at December 31, 2019 , US$8.4 billion notional amount of our outstanding debt derivatives have been designated as hedges for accounting purposes ( 2018 - US$6.1 billion ). As at December 31, 2019 , 100% of our currently outstanding expenditure derivatives have been designated as hedges for accounting purposes ( 2018 - 100% of our then-outstanding bond forwards and expenditure derivatives). In 2019 , we recognized a nil impact to net income related to hedge ineffectiveness ( 2018 - $10 million decrease ). Debt derivatives We use cross-currency interest exchange agreements to manage risks from fluctuations in foreign exchange rates associated with our US dollar-denominated debt instruments, credit facility borrowings, and commercial paper borrowings (see note 19 ). We designate the debt derivatives related to our senior notes and debentures as hedges for accounting purposes against the foreign exchange risk associated with specific debt instruments. We do not designate the debt derivatives related to our credit facility borrowings or commercial paper borrowings as hedges for accounting purposes. During 2019 and 2018 , we entered and settled debt derivatives related to our credit facility borrowings and US CP program as follows: Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional (US$) Exchange rate Notional (Cdn$) Notional (US$) Exchange rate Notional (Cdn$) Credit facilities Debt derivatives entered 420 1.336 561 125 1.257 157 Debt derivatives settled 420 1.343 564 125 1.256 157 Net cash received (paid) 3 (1 ) Commercial paper program Debt derivatives entered 12,897 1.328 17,127 15,262 1.294 19,751 Debt derivatives settled 12,847 1.329 17,069 14,833 1.291 19,148 Net cash (paid) received (13 ) 63 In 2019 and 2018 , we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the US dollar-denominated senior notes issued during these years (see note 21 ). Below is a summary of the debt derivatives we entered to hedge senior notes issued during 2019 and 2018 . (In millions of dollars, except for coupon and interest rates) US$ Hedging effect Effective date Principal/Notional amount (US$) Maturity date Coupon rate Fixed hedged (Cdn$) interest rate 1 Equivalent (Cdn$) 2019 issuances April 30, 2019 1,250 2049 4.350 % 4.173 % 1,676 November 12, 2019 1,000 2049 3.700 % 3.996 % 1,308 2018 issuances February 8, 2018 750 2048 4.300 % 4.193 % 938 1 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate. During the year, concurrent with the issuances of our US$1,250 million and US$1,000 million senior notes, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars. As a result, we received net proceeds of $1,676 million and $1,308 million , respectively, from the issuances. In 2018, concurrent with the issuance of our US $750 million senior notes, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars. As a result, we received net proceeds of $938 million from the issuance. Bond forwards During the year ended December 31, 2018, after determining we would not be able to exercise our $900 million notional amount of outstanding bond forwards within the designated time frame, we discontinued hedge accounting and reclassified a $21 million loss from the hedging reserve within shareholders' equity to "change in fair value of derivative instruments" within finance costs. We subsequently extended the bond forwards and redesignated them as effective hedges. During the year ended December 31, 2019, we exercised a $500 million notional bond forward due 2019 in relation to the issuance of the $1 billion senior notes due 2029 and paid $54 million to settle the derivative. We also exercised a $400 million notional bond forward due 2019 in relation to the issuance of the US $1.25 billion senior notes due 2049 and paid $57 million to settle the derivative. We did not enter into or settle any other bond forwards during the years ended December 31, 2019 or 2018. As at December 31, 2019, we have no outstanding bond forwards. Expenditure derivatives Below is a summary of the expenditure derivatives we entered and settled during 2019 and 2018 to manage foreign exchange risk related to certain forecast expenditures. Years ended December 31 2019 2018 (In millions of dollars, except exchange rates) Notional (US$) Exchange rate Notional (Cdn$) Notional (US$) Exchange rate Notional (Cdn$) Expenditure derivatives entered 810 1.321 1,070 720 1.244 896 Expenditure derivatives settled 900 1.249 1,124 840 1.301 1,093 As at December 31, 2019 , we had US$990 million of expenditure derivatives outstanding ( 2018 - US$1,080 million ), at an average rate of $1.300 /US$ ( 2018 - $1.241 /US$), with terms to maturity ranging from January 2020 to December 2021 ( 2018 - January 2019 to December 2020 ). As at December 31, 2019 , our outstanding expenditure derivatives maturing in 2020 were hedged at an average exchange rate of $1.30 /US$. Equity derivatives We have equity derivatives to hedge market price appreciation risk associated with Class B Non-Voting Shares that have been granted under our stock-based compensation programs for stock options, RSUs, and DSUs (see note 25 ). The equity derivatives were originally entered into at a weighted average price of $50.37 with terms to maturity of one year, extendible for further one-year periods with the consent of the hedge counterparties. In 2019 , we executed extension agreements for each of our equity derivative contracts under substantially the same committed terms and conditions with revised expiry dates of April 2020 (from April 2019 ). The equity derivatives have not been designated as hedges for accounting purposes. During the year ended December 31, 2019 , we settled 0.7 million ( 2018 - 0.4 million ) equity derivatives at a weighted average price of $71.66 ( 2018 - $61.15 ) for net proceeds of $16 million ( 2018 - $4 million ). During 2019 , we recognized an expense , net of interest receipts, of $18 million ( 2018 - $33 million recovery ), in stock-based compensation expense related to the change in fair value of our equity derivative contracts net of received payments. As at December 31, 2 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Interests in Other Entities [Abstract] | |
INVESTMENTS | INVESTMENTS ACCOUNTING POLICY Investments in publicly traded and private companies We have elected to irrevocably classify our investments in companies over which we do not have control or significant influence as FVTOCI with no subsequent reclassification to net income because we do not hold these investments with the intent of short-term trading. We account for them as follows: • publicly traded companies - at fair value based on publicly quoted prices; and • private companies - at fair value using implied valuations from follow-on financing rounds, third-party sale negotiations, or market-based approaches. Investments in associates and joint arrangements An entity is an associate when we have significant influence over the entity's financial and operating policies but do not control the entity. We are generally presumed to have significant influence over an entity when we hold more than 20% of the voting power. A joint arrangement exists when there is a contractual agreement that establishes joint control over activities and requires unanimous consent for strategic financial and operating decisions. We classify our interests in joint arrangements into one of two categories: • joint ventures - when we have the rights to the net assets of the arrangement; and • joint operations - when we have the rights to the assets and obligations for the liabilities related to the arrangement. We use the equity method to account for our investments in associates and joint ventures; we recognize our proportionate interest in the assets, liabilities, revenue, and expenses of our joint operations. We initially recognize our investments in associates and joint ventures at cost and subsequently increase or decrease the carrying amounts based on our share of each entity's income or loss. Distributions we receive from these entities reduce the carrying amounts of our investments. We eliminate unrealized gains and losses from our investments in associates or joint ventures against our investments, up to the amount of our interest in the entities. Impairment in associates and joint ventures At the end of each reporting period, we assess whether there is objective evidence that impairment exists in our investments in associates and joint ventures. If objective evidence exists, we compare the carrying amount of the investment to its recoverable amount and recognize the excess over the recoverable amount, if any, as a loss in net income. EXPLANATORY INFORMATION As at December 31 (In millions of dollars) 2019 2018 Investments in: Publicly traded companies 1,831 1,051 Private companies 107 145 Investments, measured at FVTOCI 1,938 1,196 Investments, associates and joint ventures 892 938 Total investments 2,830 2,134 INVESTMENTS, MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Publicly traded companies We hold a number of interests in publicly traded companies, including Cogeco Inc. and Cogeco Communications Inc. This year, we recognized realized losses of nil and unrealized gains of $780 million ( 2018 - nil of realized losses and $414 million of unrealized losses ) in other comprehensive income. INVESTMENTS, ASSOCIATES AND JOINT VENTURES We have interests in a number of associates and joint ventures, some of which include: Maple Leaf Sports and Entertainment Limited (MLSE) MLSE, a sports and entertainment company, owns and operates the Scotiabank Arena, the NHL's Toronto Maple Leafs, the NBA's Toronto Raptors, MLS' Toronto FC, the CFL's Toronto Argonauts, the AHL's Toronto Marlies, and other assets. We, along with BCE Inc. (BCE), jointly own an indirect net 75% equity interest in MLSE with our portion representing a 37.5% equity interest in MLSE. Our investment in MLSE is accounted for as a joint venture using the equity method. Glentel Glentel is a large, multicarrier mobile phone retailer with several hundred Canadian wireless retail distribution outlets. We own a 50% equity interest in Glentel, with the remaining 50% interest owned by BCE. Our investment in Glentel is accounted for as a joint venture using the equity method. Below is a summary of financial information pertaining to our significant associates and joint ventures and our portions thereof. As at or years ended December 31 (In millions of dollars) 2019 2018 Current assets 491 489 Long-term assets 3,501 3,303 Current liabilities (906 ) (740 ) Long-term liabilities (1,407 ) (1,258 ) Total net assets 1,679 1,794 Our share of net assets 851 935 Revenue 2,314 1,903 Expenses (2,366 ) (1,902 ) Net (loss) income (52 ) 1 Our share of net (loss) income (24 ) — One of our joint ventures has a non-controlling interest that has a right to require our joint venture to purchase that non-controlling interest at a future date at fair value. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS Below is a summary of our short-term borrowings as at December 31, 2019 and 2018 . As at December 31 (In millions of dollars) 2019 2018 Accounts receivable securitization program 650 650 US commercial paper program 1,588 1,605 Total short-term borrowings 2,238 2,255 Below is a summary of the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876 ) 1.328 (17,094 ) (14,858 ) 1.295 (19,244 ) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization — 225 Repayment of accounts receivable securitization — (225 ) Net proceeds received from accounts receivable securitization — — Proceeds received from credit facilities 420 1.336 561 — — — Repayment of credit facilities (420 ) 1.343 (564 ) — — — Net repayment of credit facilities (3 ) — Net proceeds received on short-term borrowings 30 508 ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM We participate in an accounts receivable securitization program with a Canadian financial institution that allows us to sell certain trade receivables into the program. As at December 31, 2019 , the proceeds of the sales were committed up to a maximum of $1,050 million ( 2018 - $1,050 million ) and the program has a term of November 1, 2020. As at December 31 (In millions of dollars) 2019 2018 Trade accounts receivable sold to buyer as security 1,359 1,391 Short-term borrowings from buyer (650 ) (650 ) Overcollateralization 709 741 There was no net activity related to our accounts receivable securitization program for the years ended December 31, 2019 and 2018. We continue to service and retain substantially all of the risks and rewards relating to the accounts receivable we sell, and therefore, the receivables remain recognized on our Consolidated Statements of Financial Position and the funding received is recognized as short-term borrowings. The buyer's interest in these trade receivables ranks ahead of our interest. The program restricts us from using the receivables as collateral for any other purpose. The buyer of our trade receivables has no claim on any of our other assets. US COMMERCIAL PAPER PROGRAM We have a US CP program that allows us to issue up to a maximum aggregate principal amount of US $1.5 billion . Funds can be borrowed under this program with terms to maturity ranging from 1 to 397 days, subject to ongoing market conditions. Any issuances made under the US CP program will be issued at a discount. Borrowings under our US CP program are classified as short-term borrowings on our Consolidated Statements of Financial Position when they are due within one year from the date of the financial statements. Below is a summary of the activity relating to our US CP program for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) US commercial paper, beginning of year 1,177 1.364 1,605 746 1.253 935 Net proceeds received from US commercial paper 21 1.571 33 404 1.257 508 Discounts on issuance 1 25 1.320 33 27 1.333 36 (Gain) loss on foreign exchange 1 (83 ) 126 US commercial paper, end of year 1,223 1.298 1,588 1,177 1.364 1,605 1 Included in finance costs. Concurrent with the US CP borrowings, we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the borrowings under the US CP program (see note 17 ). We have not designated these debt derivatives as hedges for accounting purposes. NON-REVOLVING CREDIT FACILITY On April 1, 2019, we entered into a new US $2.2 billion ( $2.9 billion ) non-revolving credit facility. Subsequently, we borrowed US $420 million ( $561 million ) and repaid US $420 million ( $564 million LONG-TERM DEBT As at December 31 (In millions of dollars, except interest rates) Due date Principal amount Interest rate 2019 2018 Senior notes 2019 400 2.800 % — 400 Senior notes 2019 500 5.380 % — 500 Senior notes 2020 900 4.700 % — 900 Senior notes 2021 1,450 5.340 % 1,450 1,450 Senior notes 2022 600 4.000 % 600 600 Senior notes 2023 US 500 3.000 % 649 682 Senior notes 2023 US 850 4.100 % 1,104 1,160 Senior notes 2024 600 4.000 % 600 600 Senior notes 2025 US 700 3.625 % 909 955 Senior notes 2026 US 500 2.900 % 649 682 Senior notes 2029 1,000 3.250 % 1,000 — Senior debentures 1 2032 US 200 8.750 % 260 273 Senior notes 2038 US 350 7.500 % 455 478 Senior notes 2039 500 6.680 % 500 500 Senior notes 2040 800 6.110 % 800 800 Senior notes 2041 400 6.560 % 400 400 Senior notes 2043 US 500 4.500 % 649 682 Senior notes 2043 US 650 5.450 % 844 887 Senior notes 2044 US 1,050 5.000 % 1,365 1,433 Senior notes 2048 US 750 4.300 % 973 1,022 Senior notes 2049 US 1,250 4.350 % 1,624 — Senior notes 2049 US 1,000 3.700 % 1,299 — 16,130 14,404 Deferred transaction costs and discounts (163 ) (114 ) Less current portion — (900 ) Total long-term debt 15,967 13,390 1 Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2019 and 2018 . Each of the above senior notes and debentures are unsecured and, as at December 31, 2019 , were guaranteed by RCCI, ranking equally with all of RCI's other senior notes, debentures, bank credit facilities, and letter of credit facilities. We use derivatives to hedge the foreign exchange risk associated with the principal and interest components of all of our US dollar-denominated senior notes and debentures (see note 17 ). The tables below summarize the activity relating to our long-term debt for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Notional Exchange Notional (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facility borrowings (US$) — — — 125 1.257 157 Credit facility repayments (US$) — — — (125 ) 1.256 (157 ) Net borrowings under credit facilities — — Senior note issuances (Cdn$) 1,000 — Senior note issuances (US$) 2,250 1.326 2,984 750 1.251 938 Total senior note issuances 3,984 938 Senior note repayments (Cdn$) (1,800 ) — Senior note repayments (US$) — — — (1,400 ) 1.258 (1,761 ) Total senior note repayments (1,800 ) (1,761 ) Net issuance (repayment) of senior notes 2,184 (823 ) Net issuance (repayment) of long-term debt 2,184 (823 ) Years ended December 31 (In millions of dollars) 2019 2018 Long-term debt net of transaction costs, beginning of year 14,290 14,448 Net issuance (repayment) of long-term debt 2,184 (823 ) (Gain) loss on foreign exchange (458 ) 672 Deferred transaction costs incurred (61 ) (18 ) Amortization of deferred transaction costs 12 11 Long-term debt net of transaction costs, end of year 15,967 14,290 WEIGHTED AVERAGE INTEREST RATE As at December 31, 2019 , our effective weighted average interest rate on all debt and short-term borrowings, including the effect of all of the associated debt derivatives and bond forwards, was 4.30% ( 2018 - 4.45% ). BANK CREDIT AND LETTER OF CREDIT FACILITIES Our $3.2 billion revolving credit facility is available on a fully revolving basis until maturity and there are no scheduled reductions prior to maturity. The interest rate charged on borrowings from the revolving credit facility ranges from nil to 1.25% per annum over the bank prime rate or base rate, or 0.85% to 2.25% over the bankers' acceptance rate or London Inter-Bank Offered Rate. In 2018, we amended our revolving credit facility to, among other things, extend the maturity date of the $2.5 billion tranche from March 2022 to September 2023 and to extend the maturity date on the $700 million tranche from March 2020 to September 2021. As at December 31, 2019 , we had available liquidity of $1.6 billion ( 2018 - $1.6 billion ) under our $3.3 billion bank and letter of credit facilities ( 2018 - $4.2 billion ), of which we had utilized $0.1 billion ( 2018 - $1.0 billion ) for letters of credit and reserved $1.6 billion to backstop amounts outstanding under our US CP program borrowings ( 2018 - $1.6 billion ). SENIOR NOTES AND DEBENTURES We pay interest on all of our fixed-rate senior notes and debentures on a semi-annual basis. We have the option to redeem each of our fixed-rate senior notes and debentures, in whole or in part, at any time, if we pay the premiums specified in the corresponding agreements. Issuance of senior notes Below is a summary of the senior notes that we issued in 2019 and 2018 . (In millions of dollars, except interest rates and discounts) Date issued Principal amount Due date Interest rate Discount/ premium at issuance Total gross proceeds 1 (Cdn$) Transaction costs and discounts 2 (Cdn$) 2019 issuances April 30, 2019 1,000 2029 3.250 % 99.746 % 1,000 7 April 30, 2019 US 1,250 2049 4.350 % 99.667 % 1,676 20 November 12, 2019 US 1,000 2049 3.700 % 98.926 % 1,308 25 2018 issuances February 8, 2018 US 750 2048 4.300 % 99.398 % 938 16 1 Gross proceeds before transaction costs and discounts. 2 Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method. Concurrent with the 2019 and 2018 US dollar-denominated issuances, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars (see note 17 ). Repayment of senior notes and related derivative settlements Below is a summary of the repayment of our senior notes during 2019 and 2018 . There were no debt derivatives associated with the 2019 repayments. The associated debt derivatives for the 2018 repayment were settled at time of repayment. (In millions of dollars) Maturity date Notional amount (US$) Notional amount (Cdn$) 2019 repayments March 2019 — 400 November 2019 — 500 September 2020, repaid November 2019 — 900 Total 2019 repayments — 1,800 2018 repayments August 2018, repaid April 2018 1,400 1,761 In November 2019, we repaid the entire outstanding principal amount of our $900 million 4.7% senior notes otherwise due in September 2020. For the year ended December 31, 2019, we recognized a $19 million loss on repayment of long-term debt reflecting our obligation to pay redemption premiums upon repayment (see note 11 ). In April 2018, we repaid the entire outstanding principal amount of our US $1.4 billion ( $1.8 billion ) 6.8% senior notes otherwise due in August 2018. At the same time, the associated debt derivatives were settled for net proceeds received of $326 million . As a result, we repaid a net amount of $1.5 billion , including settlement of the associated debt derivatives, which was separately funded through our US CP program and our bank credit facility. For the year ended December 31, 2018, we recognized a $28 million loss on repayment of long-term debt reflecting our obligation to pay redemption premiums upon repayment (see note 11). PRINCIPAL REPAYMENTS Below is a summary of the principal repayments on our long-term debt due in each of the next five years and thereafter as at December 31, 2019 . (In millions of dollars) 2020 — 2021 1,450 2022 600 2023 1,753 2024 600 Thereafter 11,727 Total long-term debt 16,130 TERMS AND CONDITIONS As at December 31, 2019 and 2018 , we were in compliance with all financial covenants, financial ratios, and all of the terms and conditions of our long-term debt agreements. There were no financial leverage covenants in effect other than those under our bank credit and letter of credit facilities. The 8.75% debentures due in 2032 contain debt incurrence tests and restrictions on additional investments, sales of assets, and payment of dividends, all of which are suspended in the event the public debt securities are assigned investment-grade ratings by at least two of three specified credit rating agencies. As at December 31, 2019 , these public debt securities were assigned an investment-grade rating by each of the three specified credit rating agencies and, accordingly, these restrictions have been suspended as long as the investment-grade ratings are maintained. Our other senior notes do not have any of these restrictions, regardless of the related credit ratings. The repayment dates of certain debt agreements can also be accelerated if there is a change in control of RCI. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
PROVISIONS | PROVISIONS ACCOUNTING POLICY Decommissioning and restoration costs We use network and other assets on leased premises in some of our business activities. We expect to exit these premises in the future and we therefore make provisions for the costs associated with decommissioning the assets and restoring the locations to their original conditions when we have a legal or constructive obligation to do so. We calculate these costs based on a current estimate of the costs that will be incurred, project those costs into the future based on management's best estimates of future trends in prices, inflation, and other factors, and discount them to their present value. We revise our forecasts when business conditions or technological requirements change. When we recognize a decommissioning liability, we recognize a corresponding asset in property, plant and equipment (as property, plant and equipment or a right-of-use asset, as applicable based on the underlying asset) and depreciate the asset based on the corresponding asset's useful life following our depreciation policies for property, plant and equipment and right-of-use assets, as applicable. We recognize the accretion of the liability as a charge to finance costs on the Consolidated Statements of Income. Restructuring We make provisions for restructuring when we have approved a detailed and formal restructuring plan and either the restructuring has started or management has announced the plan's main features to the employees affected by it. Restructuring obligations that have uncertain timing or amounts are recognized as provisions; otherwise they are recognized as accrued liabilities. All charges are recognized in restructuring, acquisition and other on the Consolidated Statements of Income (see note 10 ). Onerous contracts We make provisions for onerous contracts when the unavoidable costs of meeting our obligation under a contract exceed the benefits we expect to realize from it. We measure these provisions at the present value of the lower of the expected cost of terminating the contract or the expected cost of continuing with the contract. We recognize any impairment loss on the assets associated with the contract before we make the provision. USE OF ESTIMATES AND JUDGMENTS ESTIMATES We recognize a provision when a past event creates a legal or constructive obligation that can be reasonably estimated and is likely to result in an outflow of economic resources. We recognize a provision even when the timing or amount of the obligation may be uncertain, which can require us to use significant estimates. JUDGMENTS Significant judgment is required to determine when we are subject to unavoidable costs arising from onerous contracts. These judgments may include, for example, whether a certain promise is legally binding or whether we may be successful in negotiations with the counterparty. EXPLANATORY INFORMATION (In millions of dollars) Decommissioning Liabilities Other Total December 31, 2018 36 3 39 Adjustments to existing provisions 7 — 7 Amounts used (2 ) — (2 ) December 31, 2019 41 3 44 Current (recorded in "other current liabilities") 7 1 8 Long-term 34 2 36 Decommissioning and restoration costs Cash outflows associated with our decommissioning liabilities are generally expected to occur at the decommissioning dates of the assets to which they relate, which are long-term in nature. The timing and extent of restoration work that will ultimately be required for these sites is uncertain. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
LONG-TERM DEBT | SHORT-TERM BORROWINGS Below is a summary of our short-term borrowings as at December 31, 2019 and 2018 . As at December 31 (In millions of dollars) 2019 2018 Accounts receivable securitization program 650 650 US commercial paper program 1,588 1,605 Total short-term borrowings 2,238 2,255 Below is a summary of the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876 ) 1.328 (17,094 ) (14,858 ) 1.295 (19,244 ) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization — 225 Repayment of accounts receivable securitization — (225 ) Net proceeds received from accounts receivable securitization — — Proceeds received from credit facilities 420 1.336 561 — — — Repayment of credit facilities (420 ) 1.343 (564 ) — — — Net repayment of credit facilities (3 ) — Net proceeds received on short-term borrowings 30 508 ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM We participate in an accounts receivable securitization program with a Canadian financial institution that allows us to sell certain trade receivables into the program. As at December 31, 2019 , the proceeds of the sales were committed up to a maximum of $1,050 million ( 2018 - $1,050 million ) and the program has a term of November 1, 2020. As at December 31 (In millions of dollars) 2019 2018 Trade accounts receivable sold to buyer as security 1,359 1,391 Short-term borrowings from buyer (650 ) (650 ) Overcollateralization 709 741 There was no net activity related to our accounts receivable securitization program for the years ended December 31, 2019 and 2018. We continue to service and retain substantially all of the risks and rewards relating to the accounts receivable we sell, and therefore, the receivables remain recognized on our Consolidated Statements of Financial Position and the funding received is recognized as short-term borrowings. The buyer's interest in these trade receivables ranks ahead of our interest. The program restricts us from using the receivables as collateral for any other purpose. The buyer of our trade receivables has no claim on any of our other assets. US COMMERCIAL PAPER PROGRAM We have a US CP program that allows us to issue up to a maximum aggregate principal amount of US $1.5 billion . Funds can be borrowed under this program with terms to maturity ranging from 1 to 397 days, subject to ongoing market conditions. Any issuances made under the US CP program will be issued at a discount. Borrowings under our US CP program are classified as short-term borrowings on our Consolidated Statements of Financial Position when they are due within one year from the date of the financial statements. Below is a summary of the activity relating to our US CP program for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) US commercial paper, beginning of year 1,177 1.364 1,605 746 1.253 935 Net proceeds received from US commercial paper 21 1.571 33 404 1.257 508 Discounts on issuance 1 25 1.320 33 27 1.333 36 (Gain) loss on foreign exchange 1 (83 ) 126 US commercial paper, end of year 1,223 1.298 1,588 1,177 1.364 1,605 1 Included in finance costs. Concurrent with the US CP borrowings, we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the borrowings under the US CP program (see note 17 ). We have not designated these debt derivatives as hedges for accounting purposes. NON-REVOLVING CREDIT FACILITY On April 1, 2019, we entered into a new US $2.2 billion ( $2.9 billion ) non-revolving credit facility. Subsequently, we borrowed US $420 million ( $561 million ) and repaid US $420 million ( $564 million LONG-TERM DEBT As at December 31 (In millions of dollars, except interest rates) Due date Principal amount Interest rate 2019 2018 Senior notes 2019 400 2.800 % — 400 Senior notes 2019 500 5.380 % — 500 Senior notes 2020 900 4.700 % — 900 Senior notes 2021 1,450 5.340 % 1,450 1,450 Senior notes 2022 600 4.000 % 600 600 Senior notes 2023 US 500 3.000 % 649 682 Senior notes 2023 US 850 4.100 % 1,104 1,160 Senior notes 2024 600 4.000 % 600 600 Senior notes 2025 US 700 3.625 % 909 955 Senior notes 2026 US 500 2.900 % 649 682 Senior notes 2029 1,000 3.250 % 1,000 — Senior debentures 1 2032 US 200 8.750 % 260 273 Senior notes 2038 US 350 7.500 % 455 478 Senior notes 2039 500 6.680 % 500 500 Senior notes 2040 800 6.110 % 800 800 Senior notes 2041 400 6.560 % 400 400 Senior notes 2043 US 500 4.500 % 649 682 Senior notes 2043 US 650 5.450 % 844 887 Senior notes 2044 US 1,050 5.000 % 1,365 1,433 Senior notes 2048 US 750 4.300 % 973 1,022 Senior notes 2049 US 1,250 4.350 % 1,624 — Senior notes 2049 US 1,000 3.700 % 1,299 — 16,130 14,404 Deferred transaction costs and discounts (163 ) (114 ) Less current portion — (900 ) Total long-term debt 15,967 13,390 1 Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2019 and 2018 . Each of the above senior notes and debentures are unsecured and, as at December 31, 2019 , were guaranteed by RCCI, ranking equally with all of RCI's other senior notes, debentures, bank credit facilities, and letter of credit facilities. We use derivatives to hedge the foreign exchange risk associated with the principal and interest components of all of our US dollar-denominated senior notes and debentures (see note 17 ). The tables below summarize the activity relating to our long-term debt for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Notional Exchange Notional (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facility borrowings (US$) — — — 125 1.257 157 Credit facility repayments (US$) — — — (125 ) 1.256 (157 ) Net borrowings under credit facilities — — Senior note issuances (Cdn$) 1,000 — Senior note issuances (US$) 2,250 1.326 2,984 750 1.251 938 Total senior note issuances 3,984 938 Senior note repayments (Cdn$) (1,800 ) — Senior note repayments (US$) — — — (1,400 ) 1.258 (1,761 ) Total senior note repayments (1,800 ) (1,761 ) Net issuance (repayment) of senior notes 2,184 (823 ) Net issuance (repayment) of long-term debt 2,184 (823 ) Years ended December 31 (In millions of dollars) 2019 2018 Long-term debt net of transaction costs, beginning of year 14,290 14,448 Net issuance (repayment) of long-term debt 2,184 (823 ) (Gain) loss on foreign exchange (458 ) 672 Deferred transaction costs incurred (61 ) (18 ) Amortization of deferred transaction costs 12 11 Long-term debt net of transaction costs, end of year 15,967 14,290 WEIGHTED AVERAGE INTEREST RATE As at December 31, 2019 , our effective weighted average interest rate on all debt and short-term borrowings, including the effect of all of the associated debt derivatives and bond forwards, was 4.30% ( 2018 - 4.45% ). BANK CREDIT AND LETTER OF CREDIT FACILITIES Our $3.2 billion revolving credit facility is available on a fully revolving basis until maturity and there are no scheduled reductions prior to maturity. The interest rate charged on borrowings from the revolving credit facility ranges from nil to 1.25% per annum over the bank prime rate or base rate, or 0.85% to 2.25% over the bankers' acceptance rate or London Inter-Bank Offered Rate. In 2018, we amended our revolving credit facility to, among other things, extend the maturity date of the $2.5 billion tranche from March 2022 to September 2023 and to extend the maturity date on the $700 million tranche from March 2020 to September 2021. As at December 31, 2019 , we had available liquidity of $1.6 billion ( 2018 - $1.6 billion ) under our $3.3 billion bank and letter of credit facilities ( 2018 - $4.2 billion ), of which we had utilized $0.1 billion ( 2018 - $1.0 billion ) for letters of credit and reserved $1.6 billion to backstop amounts outstanding under our US CP program borrowings ( 2018 - $1.6 billion ). SENIOR NOTES AND DEBENTURES We pay interest on all of our fixed-rate senior notes and debentures on a semi-annual basis. We have the option to redeem each of our fixed-rate senior notes and debentures, in whole or in part, at any time, if we pay the premiums specified in the corresponding agreements. Issuance of senior notes Below is a summary of the senior notes that we issued in 2019 and 2018 . (In millions of dollars, except interest rates and discounts) Date issued Principal amount Due date Interest rate Discount/ premium at issuance Total gross proceeds 1 (Cdn$) Transaction costs and discounts 2 (Cdn$) 2019 issuances April 30, 2019 1,000 2029 3.250 % 99.746 % 1,000 7 April 30, 2019 US 1,250 2049 4.350 % 99.667 % 1,676 20 November 12, 2019 US 1,000 2049 3.700 % 98.926 % 1,308 25 2018 issuances February 8, 2018 US 750 2048 4.300 % 99.398 % 938 16 1 Gross proceeds before transaction costs and discounts. 2 Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method. Concurrent with the 2019 and 2018 US dollar-denominated issuances, we entered into debt derivatives to convert all interest and principal payment obligations to Canadian dollars (see note 17 ). Repayment of senior notes and related derivative settlements Below is a summary of the repayment of our senior notes during 2019 and 2018 . There were no debt derivatives associated with the 2019 repayments. The associated debt derivatives for the 2018 repayment were settled at time of repayment. (In millions of dollars) Maturity date Notional amount (US$) Notional amount (Cdn$) 2019 repayments March 2019 — 400 November 2019 — 500 September 2020, repaid November 2019 — 900 Total 2019 repayments — 1,800 2018 repayments August 2018, repaid April 2018 1,400 1,761 In November 2019, we repaid the entire outstanding principal amount of our $900 million 4.7% senior notes otherwise due in September 2020. For the year ended December 31, 2019, we recognized a $19 million loss on repayment of long-term debt reflecting our obligation to pay redemption premiums upon repayment (see note 11 ). In April 2018, we repaid the entire outstanding principal amount of our US $1.4 billion ( $1.8 billion ) 6.8% senior notes otherwise due in August 2018. At the same time, the associated debt derivatives were settled for net proceeds received of $326 million . As a result, we repaid a net amount of $1.5 billion , including settlement of the associated debt derivatives, which was separately funded through our US CP program and our bank credit facility. For the year ended December 31, 2018, we recognized a $28 million loss on repayment of long-term debt reflecting our obligation to pay redemption premiums upon repayment (see note 11). PRINCIPAL REPAYMENTS Below is a summary of the principal repayments on our long-term debt due in each of the next five years and thereafter as at December 31, 2019 . (In millions of dollars) 2020 — 2021 1,450 2022 600 2023 1,753 2024 600 Thereafter 11,727 Total long-term debt 16,130 TERMS AND CONDITIONS As at December 31, 2019 and 2018 , we were in compliance with all financial covenants, financial ratios, and all of the terms and conditions of our long-term debt agreements. There were no financial leverage covenants in effect other than those under our bank credit and letter of credit facilities. The 8.75% debentures due in 2032 contain debt incurrence tests and restrictions on additional investments, sales of assets, and payment of dividends, all of which are suspended in the event the public debt securities are assigned investment-grade ratings by at least two of three specified credit rating agencies. As at December 31, 2019 , these public debt securities were assigned an investment-grade rating by each of the three specified credit rating agencies and, accordingly, these restrictions have been suspended as long as the investment-grade ratings are maintained. Our other senior notes do not have any of these restrictions, regardless of the related credit ratings. The repayment dates of certain debt agreements can also be accelerated if there is a change in control of RCI. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES As at December 31 (In millions of dollars) Note 2019 2018 Deferred pension liability 23 465 373 Supplemental executive retirement plan 23 73 67 Stock-based compensation 25 47 66 Other 29 40 Total other long-term liabilities 614 546 |
POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
POST-EMPLOYMENT BENEFITS | POST-EMPLOYMENT BENEFITS ACCOUNTING POLICY Post-employment benefits - defined benefit pension plans We offer contributory and non-contributory defined benefit pension plans that provide employees with a lifetime monthly pension on retirement. We separately calculate our net obligation for each defined benefit pension plan by estimating the amount of future benefits employees have earned in return for their service in the current and prior years and discounting those benefits to determine their present value. We accrue our pension plan obligations as employees provide the services necessary to earn the pension. We use a discount rate based on market yields on high-quality corporate bonds at the measurement date to calculate the accrued pension benefit obligation. Remeasurements of the accrued pension benefit obligation are determined at the end of the year and include actuarial gains and losses, returns on plan assets, and any change in the effect of the asset ceiling. These are recognized in other comprehensive income and retained earnings. The cost of pensions is actuarially determined and takes into account the following assumptions and methods for pension accounting related to our defined benefit pension plans: • expected rates of salary increases for calculating increases in future benefits; • mortality rates for calculating the life expectancy of plan members; and • past service costs from plan amendments are immediately expensed in net income. We recognize our net pension expense for our defined benefit pension plans and contributions to defined contribution plans as an employee benefit expense in operating costs on the Consolidated Statements of Income in the periods the employees provide the related services. Post-employment benefits - defined contribution pension plan In 2016, we closed the defined benefit pension plans to new members and introduced a defined contribution pension plan. This change did not impact current defined benefit members at the time; any employee enrolled in any of the defined benefit pension plans at that date continues to earn pension benefits and credited service in their respective plan. We recognize a pension expense in relation to our contributions to the defined contribution pension plan when the employee provides service to the Company. Termination benefits We recognize termination benefits as an expense when we are committed to a formal detailed plan to terminate employment before the normal retirement date and it is not realistic that we will withdraw it. USE OF ESTIMATES AND JUDGMENTS ESTIMATES Detailed below are the significant assumptions used in the actuarial calculations used to determine the amount of the defined benefit pension obligation and related expense. Significant estimates are involved in determining pension-related balances. Actuarial estimates are based on projections of employees' compensation levels at the time of retirement. Retirement benefits are primarily based on career average earnings, subject to certain adjustments. The most recent actuarial valuations were completed as at January 1, 2019 . Principal actuarial assumptions 2019 2018 Weighted average of significant assumptions: Defined benefit obligation Discount rate 3.2 % 3.9 % Rate of compensation increase 1.0% to 4.5%, based on employee age 1.0% to 4.5%, based on employee age Mortality rate CIA Private with CPM B Scale CIA Private with CPM B scale Pension expense Discount rate 3.9 % 3.7 % Rate of compensation increase 1.0% to 4.5%, based on employee age 3.0 % Mortality rate CIA Private with CPM B Scale CIA Private with CPM B scale Sensitivity of key assumptions In the sensitivity analysis shown below, we determine the defined benefit obligation for our funded plans using the same method used to calculate the defined benefit obligation we recognize on the Consolidated Statements of Financial Position. We calculate sensitivity by changing one assumption while holding the others constant. This leads to limitations in the analysis as the actual change in defined benefit obligation will likely be different from that shown in the table, since it is likely that more than one assumption will change at a time, and that some assumptions are correlated. Increase (decrease) in accrued benefit obligation (In millions of dollars) 2019 2018 Discount rate Impact of 0.5% increase (233 ) (196 ) Impact of 0.5% decrease 266 224 Rate of future compensation increase Impact of 0.25% increase 17 16 Impact of 0.25% decrease (17 ) (16 ) Mortality rate Impact of 1 year increase 61 47 Impact of 1 year decrease (64 ) (50 ) EXPLANATORY INFORMATION We sponsor a number of contributory and non-contributory pension arrangements for employees, including defined benefit and defined contributions plans. We do not provide any non-pension post-retirement benefits. We also provide unfunded supplemental pension benefits to certain executives. The Rogers Defined Benefit Pension Plan provides a defined pension based on years of service and earnings, with no increases in retirement for inflation. The plan was closed to new members in 2016. Participation in the plan was voluntary and enrolled employees are required to make regular contributions into the plan. An unfunded supplemental pension plan is provided to certain senior executives to provide benefits in excess of amounts that can be provided from the defined benefit pension plan under the Income Tax Act (Canada)'s maximum pension limits. We also sponsor smaller defined benefit pension plans in addition to the Rogers Defined Benefit Pension Plan. The Pension Plan for Employees of Rogers Communications Inc. and the Rogers Pension Plan for Selkirk Employees are closed legacy defined benefit pension plans. The Pension Plan for Certain Federally Regulated Employees of Rogers Cable Communications Inc. is similar to the main pension plan but only federally regulated employees from the Cable business were eligible to participate; this plan was closed to new members in 2016. In addition to the defined benefit pension plans, we provide various defined contribution plans to certain groups of employees of the Company and to employees hired after March 31, 2016 who choose to join. Additionally, we provide other tax-deferred savings arrangements, including a Group RRSP and a Group TFSA program, which are accounted for as deferred contribution arrangements. During the year ended December 31, 2019, we amended certain of our defined benefit pension plans and recognized a $21 million reduction in past service cost (2018 - $43 million ), which was recorded as a reduction of pension expense, included in "operating costs" in the Consolidated Statements of Income. The Pension Committee of the Board oversees the administration of our registered pension plans, which includes the following principal areas: • overseeing the funding, administration, communication, and investment management of the plans; • selecting and monitoring the performance of all third parties performing duties in respect of the plans, including audit, actuarial, and investment management services; • proposing, considering, and approving amendments to the plans; • proposing, considering, and approving amendments to the Statement of Investment Policies and Procedures; • reviewing management and actuarial reports prepared in respect of the administration of the pension plans; and • reviewing and approving the audited financial statements of the pension plan funds. The assets of the defined benefit pension plans are held in segregated accounts that are isolated from our assets. They are invested and managed following all applicable regulations and the Statement of Investment Policies and Procedures with the objective of having adequate funds to pay the benefits promised by the plans. Investment and market return risk is managed by: • contracting professional investment managers to execute the investment strategy following the Statement of Investment Policies and Procedures and regulatory requirements; • specifying the kinds of investments that can be held in the plans and monitoring compliance; • using asset allocation and diversification strategies; and • purchasing annuities from time to time. The defined benefit pension plans are registered with the Office of the Superintendent of Financial Institutions and are subject to the Federal Pension Benefits Standards Act. Two of the defined contribution pension plans are registered with the Financial Services Regulatory Authority, subject to the Ontario Pension Benefits Act. The plans are also registered with the Canada Revenue Agency and are subject to the Income Tax Act (Canada). The benefits provided under the plans and the contributions to the plans are funded and administered in accordance with all applicable legislation and regulations. The defined benefit pension plans are subject to certain risks related to contribution increases, inadequate plan surplus, unfunded obligations, and market rates of return, which we mitigate through the governance described above. Any significant changes to these items may affect our future cash flows. Below is a summary of the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded plans. As at December 31 (In millions of dollars) Note 2019 2018 Plan assets, at fair value 2,449 1,965 Accrued benefit obligations (2,900 ) (2,330 ) Net deferred pension liability (451 ) (365 ) Consists of: Deferred pension asset 14 8 Deferred pension liability 22 (465 ) (373 ) Net deferred pension liability (451 ) (365 ) Below is a summary of our pension fund assets. Years ended December 31 (In millions of dollars) 2019 2018 Plan assets, beginning of year 1,965 1,890 Interest income 81 73 Remeasurements, recognized in other comprehensive income and equity 277 (114 ) Contributions by employees 36 39 Contributions by employer 179 148 Benefits paid (86 ) (68 ) Administrative expenses paid from plan assets (3 ) (3 ) Plan assets, end of year 2,449 1,965 Below is a summary of the accrued benefit obligations arising from funded obligations. Years ended December 31 (In millions of dollars) 2019 2018 Accrued benefit obligations, beginning of year 2,330 2,342 Current service cost 121 143 Past service recovery (21 ) (43 ) Interest cost 89 85 Benefits paid (86 ) (68 ) Contributions by employees 36 39 Remeasurements, recognized in other comprehensive income and equity 431 (168 ) Accrued benefit obligations, end of year 2,900 2,330 Plan assets are comprised mainly of pooled funds that invest in common stocks and bonds that are traded in an active market. Below is a summary of the fair value of the total pension plan assets by major category. As at December 31 (In millions of dollars) 2019 2018 Equity securities 1,472 1,149 Debt securities 967 810 Other - cash 10 6 Total fair value of plan assets 2,449 1,965 Below is a summary of our net pension expense. Net interest cost is included in finance costs; other pension expenses are included in salaries and benefits expense in operating costs on the Consolidated Statements of Income. Years ended December 31 (In millions of dollars) 2019 2018 Plan cost: Current service cost 121 143 Past service recovery (21 ) (43 ) Net interest cost 8 12 Net pension expense 108 112 Administrative expense 4 4 Total pension cost recognized in net income 112 116 Net interest cost, a component of the plan cost above, is included in finance costs and is outlined as follows: Years ended December 31 (In millions of dollars) 2019 2018 Interest income on plan assets (81 ) (73 ) Interest cost on plan obligation 89 85 Net interest cost, recognized in finance costs 8 12 The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows: Years ended December 31 (In millions of dollars) 2019 2018 Return (loss) on plan assets (excluding interest income) 277 (114 ) Change in financial assumptions (401 ) 158 Change in demographic assumptions — (10 ) Effect of experience adjustments (30 ) 20 Remeasurement (loss) gain, recognized in other comprehensive income and equity (154 ) 54 We also provide supplemental unfunded defined benefit pensions to certain executives. Below is a summary of our accrued benefit obligations, pension expense included in employee salaries and benefits, net interest cost, remeasurements, and benefits paid. Years ended December 31 (In millions of dollars) 2019 2018 Accrued benefit obligation, beginning of year 67 66 Pension expense, recognized in employee salaries and benefits expense 2 2 Net interest cost, recognized in finance costs 3 2 Remeasurements, recognized in other comprehensive income 5 1 Benefits paid (4 ) (4 ) Accrued benefit obligation, end of year 73 67 We also have defined contribution plans with total pension expense of $12 million in 2019 ( 2018 - $8 million ), which is included in employee salaries and benefits expense. ALLOCATION OF PLAN ASSETS Allocation of plan assets Target asset allocation percentage 2019 2018 Equity securities: Domestic 12.0 % 11.8 % 8% to 18% International 48.1 % 46.7 % 37% to 67% Debt securities 39.5 % 41.2 % 25% to 45% Other - cash 0.4 % 0.3 % 0% to 2% Total 100.0 % 100.0 % Plan assets consist primarily of pooled funds that invest in common stocks and bonds. The pooled funds have investments in our equity securities. As a result, approximately $10 million ( 2018 - $5 million ) of plan assets are indirectly invested in our own securities under our defined benefit plans. We make contributions to the plans to secure the benefits of plan members and invest in permitted investments using the target ranges established by our Pension Committee, which reviews actuarial assumptions on an annual basis. Below is a summary of the actual contributions to the plans. Years ended December 31 (In millions of dollars) 2019 2018 Employer contribution 179 148 Employee contribution 36 39 Total contribution 215 187 We estimate our 2020 employer contributions to our funded plans to be $145 million . The actual value will depend on the results of the 2020 actuarial funding valuations. The average duration of the defined benefit obligation as at December 31, 2019 is 17 years ( 2018 - 18 years). Plan assets recognized an actual net gain of $355 million in 2019 ( 2018 - $44 million net loss ). We have recognized a cumulative loss in other comprehensive income and retained earnings of $503 million as at December 31, 2019 ( 2018 - $384 million ) associated with post-retirement benefit plans. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY CAPITAL STOCK Share class Number of shares authorized for issue Features Voting rights Preferred shares 400,000,000 ● Without par value ● None ● Issuable in series, with rights and terms of each series to be fixed by the Board prior to the issue of any series RCI Class A Voting Shares 112,474,388 ● Without par value ● Each share entitled to 50 votes ● Each share can be converted into one Class B Non-Voting share RCI Class B Non-Voting Shares 1,400,000,000 ● Without par value ● None RCI's Articles of Continuance under the Business Corporations Act (British Columbia) impose restrictions on the transfer, voting, and issue of Class A Shares and Class B Non-Voting Shares to ensure we remain qualified to hold or obtain licences required to carry on certain of our business undertakings in Canada. We are authorized to refuse to register transfers of any of our shares to any person who is not a Canadian, as defined in RCI's Articles of Continuance, in order to ensure that Rogers remains qualified to hold the licences referred to above. DIVIDENDS We declared and paid the following dividends on our outstanding Class A Shares and Class B Non-Voting Shares : Dividend per Date declared Date paid share (dollars) January 24, 2019 April 1, 2019 0.50 April 18, 2019 July 2, 2019 0.50 June 5, 2019 October 1, 2019 0.50 October 23, 2019 January 2, 2020 0.50 2.00 January 25, 2018 April 3, 2018 0.48 April 19, 2018 July 3, 2018 0.48 August 15, 2018 October 3, 2018 0.48 October 19, 2018 January 3, 2019 0.48 1.92 The holders of Class A Shares are entitled to receive dividends at the rate of up to five cents per share but only after dividends at the rate of five cents per share have been paid or set aside on the Class B Non-Voting Shares . Class A Shares and Class B Non-Voting Shares therefore participate equally in dividends above $0.05 per share. On January 22, 2020, the Board declared a quarterly dividend of $0.50 per Class A Voting Share and Class B Non-Voting Share, to be paid on April 1, 2020, to shareholders of record on March 10, 2020. NORMAL COURSE ISSUER BID In April 2019, the TSX accepted a notice of our intention to commence a normal course issuer bid (NCIB) program (2019 NCIB) that allows us to purchase, during the twelve-month period beginning April 24, 2019 and ending April 23, 2020, the lesser of 35.7 million Class B Non-Voting Shares and that number of Class B Non-Voting Shares that can be purchased under the 2019 NCIB for an aggregate purchase price of $500 million . RCI security holders may obtain a copy of this notice, without charge, by contacting us. In April 2018, the TSX accepted a notice of our intention to commence a NCIB program (2018 NCIB) that allowed us to purchase, during the twelve-month period beginning April 24, 2018 and ending April 23, 2019, the lesser of 35.8 million Class B Non-Voting Shares and that number of Class B Non-Voting Shares that could be purchased under the NCIB for an aggregate purchase price of $500 million . We did no t repurchase any shares during the year ended December 31, 2018. In 2019, we purchased 9.9 million shares under our NCIB programs for $655 million . Pursuant to the 2019 NCIB, we repurchased for cancellation 7.7 million Class B Non-Voting Shares for $500 million , thereby purchasing the maximum allowed under the 2019 NCIB. In 2019, pursuant to the 2018 NCIB, we repurchased for cancellation 2.2 million Class B Non-Voting Shares for $155 million . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangements [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION ACCOUNTING POLICY Stock option plans Cash-settled share appreciation rights (SARs) are attached to all stock options granted under our employee stock option plan. This feature allows the option holder to choose to receive a cash payment equal to the intrinsic value of the option (the amount by which the market price of the Class B Non-Voting Share exceeds the exercise price of the option on the exercise date) instead of exercising the option to acquire Class B Non-Voting Shares . We classify all outstanding stock options with cash settlement features as liabilities and carry them at their fair value, determined using the Black-Scholes option pricing model or a trinomial option pricing model, depending on the nature of the share-based award. We remeasure the fair value of the liability each period and amortize it to operating costs using graded vesting, either over the vesting period or to the date an employee is eligible to retire (whichever is shorter). Restricted share unit (RSU) and deferred share unit (DSU) plans We recognize outstanding RSUs and DSUs as liabilities, measuring the liabilities and compensation costs based on the awards' fair values, which are based on the market price of the Class B Non-Voting Shares, and recognizing them as charges to operating costs over the vesting period of the awards. If an award's fair value changes after it has been granted and before the exercise date, we recognize the resulting changes in the liability within operating costs in the year the change occurs. For RSUs, the payment amount is established as of the vesting date. For DSUs, the payment amount is established as of the exercise date. Employee share accumulation plan Employees voluntarily participate in the share accumulation plan by contributing a specified percentage of their regular earnings. We match employee contributions up to a certain amount and recognize our contributions as a compensation expense in the year we make them. Expenses relating to the employee share accumulation plan are included in operating costs. USE OF ESTIMATES AND JUDGMENTS ESTIMATES Significant management estimates are used to determine the fair value of stock options, RSUs, and DSUs. The table below shows the weighted average fair value of stock options granted during 2019 and 2018 and the principal assumptions used in applying the Black-Scholes model for non-performance-based options and trinomial option pricing models for performance-based options to determine their fair value at the grant date. Years ended December 31 2019 2018 Weighted average fair value $8.11 $8.42 Risk-free interest rate 1.9 % 1.7 % Dividend yield 2.8 % 3.3 % Volatility of Class B Non-Voting Shares 16.4 % 20.1 % Weighted average expected life 5.5 years 6.2 years Weighted average time to vest n/a 2.5 years Weighted average time to expiry n/a 10.0 years Employee exit rate n/a 4.9 % Suboptimal exercise factor n/a 1.4 Lattice steps n/a 50 n/a - no performance-based options were issued during the year ended December 31, 2019. Volatility has been estimated based on the actual trading statistics of our Class B Non-Voting Shares . EXPLANATORY INFORMATION Below is a summary of our stock-based compensation expense, which is included in employee salaries and benefits expense. Years ended December 31 (In millions of dollars) 2019 2018 Stock options 1 17 Restricted share units 47 51 Deferred share units 4 30 Equity derivative effect, net of interest receipt 18 (33 ) Total stock-based compensation expense 70 65 As at December 31, 2019 , we had a total liability recognized at its fair value of $220 million ( 2018 - $252 million ) related to stock-based compensation, including stock options, RSUs, and DSUs. The current portion of this is $173 million ( 2018 - $186 million ) and is included in accounts payable and accrued liabilities. The long-term portion of this is $47 million ( 2018 - $66 million ) and is included in other long-term liabilities (see note 22 ). The total intrinsic value of vested liabilities, which is the difference between the exercise price of the share-based awards and the trading price of the Class B Non-Voting Shares for all vested share-based awards, as at December 31, 2019 was $106 million ( 2018 - $112 million ). We paid $84 million in 2019 ( 2018 - $69 million ) to holders of stock options, RSUs, and DSUs upon exercise using the cash settlement feature, representing a weighted average share price on the date of exercise of $70.97 ( 2018 - $61.84 ). STOCK OPTIONS Options to purchase our Class B Non-Voting Shares on a one -for-one basis may be granted to our employees, directors, and officers by the Board or our Management Compensation Committee. There are 65 million options authorized under various plans; each option has a term of seven to ten years . The vesting period is generally graded vesting over four years ; however, the Management Compensation Committee may adjust the vesting terms on the grant date. The exercise price is equal to the fair market value of the Class B Non-Voting Shares , determined as the five -day average before the grant date as quoted on the TSX. Performance options We granted nil performance-based options to certain key executives in 2019 ( 2018 - 439,435 ). These options vest on a graded basis over four years provided that certain targeted stock prices are met on or after each anniversary date. As at December 31, 2019 , we had 1,068,776 performance options ( 2018 - 1,575,605 ) outstanding. Summary of stock options Below is a summary of the stock option plans, including performance options. Year ended December 31, 2019 Year ended December 31, 2018 (In number of units, except prices) Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding, beginning of year 2,719,612 $53.22 2,637,890 $49.42 Granted 1,179,160 $72.03 850,700 $58.88 Exercised (743,977 ) $46.56 (679,706 ) $45.20 Forfeited — — (89,272 ) $55.94 Outstanding, end of year 3,154,795 $61.82 2,719,612 $53.22 Exercisable, end of year 993,645 $52.38 1,059,590 $46.26 Below is a summary of the range of exercise prices, the weighted average exercise price, and the weighted average remaining contractual life as at December 31, 2019 . Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $42.85 - $44.99 153,937 4.82 $44.24 153,937 $44.24 $45.00 - $49.99 506,011 4.67 $48.88 442,257 $48.73 $50.00 - $59.99 910,595 7.76 $58.10 265,564 $57.82 $60.00 - $64.99 415,057 7.72 $62.91 122,459 $62.82 $65.00 - $69.99 129,025 9.38 $66.21 9,428 $68.10 $70.00 - $73.00 1,040,170 8.90 $73.00 — — 3,154,795 7.56 $61.82 993,645 $52.38 Unrecognized stock-based compensation expense as at December 31, 2019 related to stock-option plans was $6 million ( 2018 - $8 million ) and will be recognized in net income over the next four years as the options vest. RESTRICTED SHARE UNITS The RSU plan allows employees, directors, and officers to participate in the growth and development of Rogers. Under the terms of the plan, RSUs are issued to the participant and the units issued vest over a period of up to three years from the grant date. On the vesting date, we will redeem all of the participants' RSUs in cash or by issuing one Class B Non-Voting Share for each RSU. We have reserved 4,000,000 Class B Non-Voting Shares for issue under this plan. Performance RSUs We granted 180,896 performance-based RSUs to certain key executives in 2019 ( 2018 - 263,239 ). The number of units that vest and will be paid three years from the grant date will be within 50% to 150% of the initial number granted based upon the achievement of certain annual and cumulative three-year non-market targets. Summary of RSUs Below is a summary of the RSUs outstanding, including performance RSUs. Years ended December 31 (In number of units) 2019 2018 Outstanding, beginning of year 2,218,925 1,811,845 Granted and reinvested dividends 1,013,900 1,217,487 Exercised (582,314 ) (597,015 ) Forfeited (177,737 ) (213,392 ) Outstanding, end of year 2,472,774 2,218,925 Unrecognized stock-based compensation expense as at December 31, 2019 related to these RSUs was $56 million ( 2018 - $59 million ) and will be recognized in net income over the next three years as the RSUs vest. DEFERRED SHARE UNITS The DSU plan allows directors, certain key executives, and other senior management to elect to receive certain types of compensation in DSUs. Under the terms of the plan, DSUs are issued to the participant and the units issued cliff vest over a period of up to three years from the grant date. Performance DSUs We granted 29,300 performance-based DSUs to certain key executives in 2019 ( 2018 - 40,269 ). The number of units that vest and may be redeemed by the holder three years from the grant date will be within 50% to 150% of the initial number granted based upon the achievement of certain annual and cumulative three-year non-market targets. Summary of DSUs Below is a summary of the DSUs outstanding, including performance DSUs. Years ended December 31 (In number of units) 2019 2018 Outstanding, beginning of year 2,004,440 2,327,647 Granted and reinvested dividends 110,003 131,051 Exercised (348,285 ) (334,930 ) Forfeited (24,274 ) (119,328 ) Outstanding, end of year 1,741,884 2,004,440 Unrecognized stock-based compensation expense as at December 31, 2019 related to these DSUs was $1 million ( 2018 - $7 million ) and will be recognized in net income over the next three years as the executive DSUs vest. All other DSUs are fully vested. EMPLOYEE SHARE ACCUMULATION PLAN Participation in the plan is voluntary. Employees can contribute up to 10% of their regular earnings through payroll deductions (up to an annual maximum contribution of $25 thousand ). The plan administrator purchases Class B Non-Voting Shares on a monthly basis on the open market on behalf of the employee. At the end of each month, we make a contribution of 25% to 50% of the employee's contribution that month and the plan administrator uses this amount to purchase additional shares on behalf of the employee. We recognize our contributions made as a compensation expense. Compensation expense related to the employee share accumulation plan was $51 million in 2019 ( 2018 - $46 million ). EQUITY DERIVATIVES We have entered into equity derivatives to hedge a portion of our stock-based compensation expense (see note 17 ) and recognized an $18 million expense ( 2018 - $33 million recovery |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS CONTROLLING SHAREHOLDER Our ultimate controlling shareholder is the Rogers Control Trust (the Trust), which holds voting control of RCI. The beneficiaries of the Trust are members of the Rogers family. Certain directors of RCI represent the Rogers family. We entered into certain transactions with private Rogers family holding companies controlled by the Trust. These transactions were recognized at the amount agreed to by the related parties and are subject to the terms and conditions of formal agreements approved by the Audit and Risk Committee. The totals received or paid were less than $1 million for each of 2019 and 2018 . TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL Key management personnel include the directors and our most senior corporate officers, who are primarily responsible for planning, directing, and controlling our business activities. Compensation Compensation expense for key management personnel included in "employee salaries, benefits, and stock-based compensation" was as follows: Years ended December 31 (In millions of dollars) 2019 2018 Salaries and other short-term employee benefits 15 13 Post-employment benefits 2 2 Stock-based compensation 1 20 18 Total compensation 37 33 1 Stock-based compensation does not include the effect of changes in fair value of Class B Non-Voting Shares or equity derivatives. Transactions We have entered into business transactions with companies whose partners or senior officers are Directors of RCI. These directors are: • The Hon. David R. Peterson, P.C., Q.C., the non-executive chairman emeritus of Cassels Brock and Blackwell LLP, a law firm that provides legal services to the Company; and • Isabelle Marcoux, C.M., the chair of the board of Transcontinental Inc., a company that provides printing services to the Company. We recognize these transactions at the amount agreed to by the related parties, which are also reviewed by the Audit and Risk Committee. The amounts owing are unsecured, interest-free, and due for payment in cash within one month of the date of the transaction. Below is a summary of related party activity for the business transactions described above. (In millions of dollars) Years ended December 31 Outstanding balance as at December 31 2019 2018 2019 2018 Printing and legal services 1 6 13 — — 1 The amounts paid for legal services are nominal. SUBSIDIARIES, ASSOCIATES, AND JOINT ARRANGEMENTS We have the following material operating subsidiaries as at December 31, 2019 and 2018 : • Rogers Communications Canada Inc.; and • Rogers Media Inc. We have 100% ownership interest in these subsidiaries. They are incorporated in Canada and have the same reporting period for annual financial statements reporting. When necessary, adjustments are made to conform the accounting policies of the subsidiaries to those of RCI. There are no significant restrictions on the ability of subsidiaries, joint arrangements, and associates to transfer funds to Rogers as cash dividends or to repay loans or advances, subject to the approval of other shareholders where applicable. We carried out the following business transactions with our associates and joint arrangements, being primarily MLSE and Glentel. Transactions between us and our subsidiaries have been eliminated on consolidation and are not disclosed in this note. Years ended December 31 (In millions of dollars) 2019 2018 Revenue 69 86 Purchases 212 197 Outstanding balances at year-end are unsecured, interest-free, and settled in cash. As at December 31 (In millions of dollars) 2019 2018 Accounts receivable 86 99 Accounts payable and accrued liabilities 24 20 |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2019 | |
Guarantees1 [Abstract] | |
GUARANTEES | GUARANTEES We had the following guarantees as at December 31, 2019 and 2018 as part of our normal course of business: BUSINESS SALE AND BUSINESS COMBINATION AGREEMENTS As part of transactions involving business dispositions, sales of assets, or other business combinations, we may be required to pay counterparties for costs and losses incurred as a result of breaches of representations and warranties, intellectual property right infringement, loss or damages to property, environmental liabilities, changes in laws and regulations (including tax legislation), litigation against the counterparties, contingent liabilities of a disposed business, or reassessments of previous tax filings of the corporation that carries on the business. SALES OF SERVICES As part of transactions involving sales of services, we may be required to make payments to counterparties as a result of breaches of representations and warranties, changes in laws and regulations (including tax legislation), or litigation against the counterparties. PURCHASES AND DEVELOPMENT OF ASSETS As part of transactions involving purchases and development of assets, we may be required to pay counterparties for costs and losses incurred as a result of breaches of representations and warranties, loss or damages to property, changes in laws and regulations (including tax legislation), or litigation against the counterparties. INDEMNIFICATIONS We indemnify our directors, officers, and employees against claims reasonably incurred and resulting from the performance of their services to Rogers. We have liability insurance for our directors and officers and those of our subsidiaries. No amount has been accrued in the Consolidated Statements of Financial Position relating to these types of indemnifications or guarantees as at December 31, 2019 or 2018 . Historically, we have not made any significant payments under these indemnifications or guarantees. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES ACCOUNTING POLICY Contingent liabilities are liabilities of uncertain timing or amount and are not recognized until we have a present obligation as a result of a past event, it is probable that we will experience an outflow of resources embodying economic benefits to settle the obligation, and a reliable estimate can be made of the amount of the obligation. We disclose our contingent liabilities unless the possibility of an outflow of resources in settlement is remote. USE OF ESTIMATES AND JUDGMENTS JUDGMENTS We are exposed to possible losses related to various claims and lawsuits against us for which the outcome is not yet known. We therefore make significant judgments in determining the probability of loss when we assess contingent liabilities. EXPLANATORY INFORMATION COMMITMENTS Below is a summary of the future minimum payments for our contractual commitments that are not recognized as liabilities as at December 31, 2019 . Less than After (In millions of dollars) 1 Year 1-3 Years 4-5 Years 5 Years Total Player contracts 1 95 108 45 — 248 Purchase obligations 2 312 215 92 41 660 Program rights 3 620 1,111 1,052 830 3,613 Total commitments 1,027 1,434 1,189 871 4,521 1 Toronto Blue Jays players' salary contracts into which we have entered and are contractually obligated to pay. 2 Contractual obligations under service, product, and wireless device contracts to which we have committed. 3 Agreements into which we have entered to acquire broadcasting rights for programs and films for periods in excess of one year at contract inception. Below is a summary of our other contractual commitments that are not included in the table above. As at December 31 (In millions of dollars) 2019 Acquisition of property, plant and equipment 200 Acquisition of intangible assets 63 Commitments related to associates and joint ventures 312 Total other commitments 575 CONTINGENT LIABILITIES We have the following contingent liabilities as at December 31, 2019 : Wholesale Internet costing and pricing On August 15, 2019, in Telecom Order CRTC 2019-288, Follow-up to Telecom Orders 2016-396 and 2016-448 - Final rates for aggregated wholesale high-speed access services (Order), the Canadian Radio-television and Telecommunications Commission (CRTC) set final rates for facilities-based carriers' wholesale high-speed access services, including Rogers' third-party Internet access (TPIA) service. The Order set final rates for Rogers that are significantly lower than the interim rates that were previously billed and it further determined that these final rates will apply retroactively to March 31, 2016. We do not believe the final rates set by the CRTC are just and reasonable as required by the Telecommunications Act as we believe they are below cost. On September 13, 2019, Rogers, in conjunction with the other large Canadian cable companies (Cable Carriers), filed a motion for Leave to Appeal pursuant to Section 64(1) of the Telecommunications Act with the Federal Court of Appeal (Court) and an associated motion for an interlocutory Stay of the CRTC Order. On September 27, 2019, the Court granted an Interim Stay suspending the Order until the Court rules on the Cable Carriers' motion for an interlocutory Stay of the CRTC's Order pending the Court's determination of the Cable Carriers' motion for Leave to Appeal. On November 22, 2019, the Court granted Leave to Appeal and an interlocutory Stay of the CRTC Order. It is anticipated that the appeal will be heard in mid-2020 with a decision thereafter. Due to the Court's granting of the interlocutory Stay and Leave to Appeal, and the significant uncertainty surrounding both the outcome and the amount, if any, we could ultimately have to repay to the resellers, we have not recorded a liability for this contingency at this time. The CRTC's order as drafted would have resulted in a refund of amounts previously billed to the resellers of approximately $150 million , representing the impact on a retroactive basis from March 31, 2016 to December 31, 2019. We estimate the ongoing impact would be approximately $11 million per quarter. System access fee - Saskatchewan In 2004, a class action was commenced against providers of wireless communications in Canada under the Class Actions Act (Saskatchewan). The class action relates to the system access fee wireless carriers charge to some of their customers. The plaintiffs are seeking unspecified damages and punitive damages, which would effectively be a reimbursement of all system access fees collected. In 2007, the Saskatchewan Court granted the plaintiffs' application to have the proceeding certified as a national, "opt-in" class action where affected customers outside Saskatchewan must take specific steps to participate in the proceeding. In 2008, our motion to stay the proceeding based on the arbitration clause in our wireless service agreements was granted. The Saskatchewan Court directed that its order, in respect of the certification of the action, would exclude customers who are bound by an arbitration clause from the class of plaintiffs. In 2009, counsel for the plaintiffs began a second proceeding under the Class Actions Act (Saskatchewan) asserting the same claims as the original proceeding. If successful, this second class action would be an "opt-out" class proceeding. This second proceeding was ordered conditionally stayed on the basis that it was an abuse of process. At the time the Saskatchewan class action was commenced, corresponding claims were filed in multiple jurisdictions across Canada. The claims in all provinces other than Saskatchewan have now been dismissed or discontinued. We have not recognized a liability for this contingency. 911 fee In June 2008, a class action was launched in Saskatchewan against providers of wireless communications services in Canada. It involves allegations of breach of contract, misrepresentation, and false advertising, among other things, in relation to the 911 fee that had been charged by us and the other wireless telecommunication providers in Canada. The plaintiffs are seeking unspecified damages and restitution. The plaintiffs intend to seek an order certifying the proceeding as a national class action in Saskatchewan. We have not recognized a liability for this contingency. Cellular devices In July 2013, a class action was launched in British Columbia against providers of wireless communications in Canada and manufacturers of wireless devices. The class action relates to the alleged adverse health effects incurred by long-term users of cellular devices. The plaintiffs were seeking unspecified damages and punitive damages, effectively equal to the reimbursement of the portion of revenue the defendants have received that can reasonably be attributed to the sale of cellular phones in Canada. In March 2019, the plaintiffs discontinued the class action without any payment by Rogers. Income taxes We provide for income taxes based on all of the information that is currently available and believe that we have adequately provided for these items. The calculation of applicable taxes in many cases, however, requires significant judgment (see note 13 ) in interpreting tax rules and regulations. Our tax filings are subject to audits, which could materially change the amount of current and deferred income tax assets and liabilities and provisions, and could, in certain circumstances, result in the assessment of interest and penalties. Other claims There are certain other claims and potential claims against us. We do not expect any of these, individually or in the aggregate, to have a material adverse effect on our financial results. Outcome of proceedings The outcome of all the proceedings and claims against us, including the matters described above, is subject to future resolution that includes the uncertainties of litigation. It is not possible for us to predict the result or magnitude of the claims due to the various factors and uncertainties involved in the legal process. Based on information currently known to us, we believe it is not probable that the ultimate resolution of any of these proceedings and claims, individually or in total, will have a material adverse effect on our business, financial results, or financial condition. If it becomes probable that we will be held liable for claims against us, we will recognize a provision during the period in which the change in probability occurs, which could be material to our Consolidated Statements of Income or Consolidated Statements of Financial Position. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION CHANGE IN NON-CASH OPERATING WORKING CAPITAL ITEMS Years ended December 31 (In millions of dollars) 2019 2018 Accounts receivable (174 ) (133 ) Inventories 7 (31 ) Other current assets (41 ) (6 ) Accounts payable and accrued liabilities 61 103 Contract and other liabilities 9 (47 ) Total change in non-cash operating working capital items (138 ) (114 ) CAPITAL EXPENDITURES Years ended December 31 (In millions of dollars) 2019 2018 Capital expenditures before proceeds on disposition 2,845 2,815 Proceeds on disposition (38 ) (25 ) Capital expenditures 2,807 2,790 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
List of Accounting Policies [Abstract] | |
Statement of compliance | STATEMENT OF COMPLIANCE We prepared our consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Board of Directors (the Board) authorized these consolidated financial statements for issue on March 5, 2020 . |
Basis of presentation | BASIS OF PRESENTATION All amounts are in Canadian dollars unless otherwise noted. Our functional currency is the Canadian dollar. We prepare the consolidated financial statements on a historical cost basis, except for: • certain financial instruments as disclosed in note 17 , which are measured at fair value; • the net deferred pension liability, which is measured as described in note 23 ; and • liabilities for stock-based compensation, which are measured at fair value as disclosed in note 25 . |
Basis of consolidation | BASIS OF CONSOLIDATION Subsidiaries are entities we control. We include the financial statements of our subsidiaries in our consolidated financial statements from the date we gain control of them until our control ceases. We eliminate all intercompany transactions and balances between our subsidiaries on consolidation. |
Foreign currency translation | FOREIGN CURRENCY TRANSLATION We translate amounts denominated in foreign currencies into Canadian dollars as follows: • monetary assets and liabilities - at the exchange rate in effect as at the date of the Consolidated Statements of Financial Position; • non-monetary assets and liabilities, and related depreciation and amortization - at the historical exchange rates; and • revenue and expenses other than depreciation and amortization - at the average rate for the month in which the transaction was recognized. |
Business combinations | BUSINESS COMBINATIONS We account for business combinations using the acquisition method of accounting. Only acquisitions that result in our gaining control over the acquired businesses are accounted for as business combinations. We possess control over an entity when we conclude we are exposed to variable returns from our involvement with the acquired entity and we have the ability to affect those returns through our power over the acquired entity. We calculate the fair value of the consideration paid as the sum of the fair value at the date of acquisition of the assets we transferred and the equity interests we issued, less the liabilities we assumed to acquire the subsidiary. We measure goodwill as the fair value of the consideration transferred less the net recognized amount of the identifiable assets acquired and liabilities assumed, which are generally measured at fair value as of the acquisition date. When the excess is negative, a gain on acquisition is recognized immediately in net income. We expense the transaction costs associated with acquisitions as we incur them. |
Reportable segments | Reportable segments We determine our reportable segments based on, among other things, how our chief operating decision maker, the Chief Executive Officer and Chief Financial Officer of RCI, regularly review our operations and performance. They review adjusted EBITDA as the key measure of profit for the purpose of assessing performance of each segment and to make decisions about the allocation of resources, as they believe adjusted EBITDA reflects segment and consolidated profitability. Adjusted EBITDA is defined as income before depreciation and amortization; (gain) loss on disposition of property, plant and equipment; restructuring, acquisition and other; finance costs; other expense (income); and income tax expense. We follow the same accounting policies for our segments as those described in the notes to our consolidated financial statements. We account for transactions between reportable segments in the same way we account for transactions with external parties, but eliminate them on consolidation. |
Revenue recognition | Contracts with customers We record revenue from contracts with customers in accordance with the five steps in IFRS 15, Revenue from contracts with customers as follows: 1. identify the contract with a customer; 2. identify the performance obligations in the contract; 3. determine the transaction price, which is the total consideration provided by the customer; 4. allocate the transaction price among the performance obligations in the contract based on their relative fair values; and 5. recognize revenue when the relevant criteria are met for each performance obligation. Many of our products and services are sold in bundled arrangements (e.g. wireless devices and voice and data services). Items in these arrangements are accounted for as separate performance obligations if the item meets the definition of a distinct good or service. We also determine whether a customer can modify their contract within predefined terms such that we are not able to enforce the transaction price agreed to, but can only contractually enforce a lower amount. In situations such as these, we allocate revenue between performance obligations using the minimum enforceable rights and obligations and any excess amount is recognized as revenue as it is earned. Revenue for each performance obligation is recognized either over time (e.g. services) or at a point in time (e.g. equipment). For performance obligations satisfied over time, revenue is recognized as the services are provided. These services are typically provided, and thus revenue is typically recognized, on a monthly basis. Revenue for performance obligations satisfied at a point in time is recognized when control of the item (or service) transfers to the customer. Typically, this is when the customer activates the goods (e.g. in the case of a wireless device) or has physical possession of the goods (e.g. other equipment). The table below summarizes the nature of the various performance obligations in our contracts with customers and when we recognize performance on those obligations. Performance obligations from contracts with customers Timing of satisfaction of the performance obligation Wireless airtime, data, and other services; television, telephony, Internet, and smart home monitoring services; network services; media subscriptions; and rental of equipment As the service is provided (usually monthly) Roaming, long-distance, and other optional or non-subscription services, and pay-per-use services As the service is provided Wireless devices and related equipment Upon activation or purchase by the end customer Installation services for Cable subscribers When the services are performed Advertising When the advertising airs on our radio or television stations or is displayed on our digital properties Subscriptions by television stations for subscriptions from cable and satellite providers When the services are delivered to cable and satellite providers' subscribers (usually monthly) Toronto Blue Jays' home game admission and concessions When the related games are played during the baseball season and when goods are sold Toronto Blue Jays revenue from the Major League Baseball Revenue Sharing Agreement, which redistributes funds between member clubs based on each club’s relative revenue When the amount is determinable Radio and television broadcast agreements When the related programs are aired Sublicensing of program rights Over the course of the applicable licence period We also recognize interest revenue on credit card receivables using the effective interest method in accordance with IFRS 9. Payment for Wireless and Cable monthly service fees is typically due 30 days after billing. Payment for Wireless and Cable equipment is typically due either upon receipt of the equipment or over the subsequent 24 months (when equipment is financed through our equipment financing plans). Payment terms for typical Media performance obligations range from immediate (e.g. Toronto Blue Jays tickets) to 30 days (e.g. advertising contracts). Contract assets and liabilities We record a contract asset when we have provided goods and services to our customer but our right to related consideration for the performance obligation is conditional on satisfying other performance obligations. Contract assets primarily relate to our rights to consideration for the transfer of wireless devices. We record a contract liability when we receive payment from a customer in advance of providing goods and services. This includes subscriber deposits, deposits related to Toronto Blue Jays ticket sales, and amounts subscribers pay for services and subscriptions that will be provided in future periods. We account for contract assets and liabilities on a contract-by-contract basis, with each contract presented as either a net contract asset or a net contract liability accordingly. Deferred commission cost assets We defer, to the extent recoverable, the incremental costs we incur to obtain or fulfill a contract with a customer and amortize them over their expected period of benefit. These costs include certain commissions paid to internal and external representatives that we believe to be recoverable through the revenue earned from the related contracts. We therefore defer them as deferred commission cost assets in other assets and amortize them to operating costs over the pattern of the transfer of goods and services to the customer, which is typically evenly over either 12 or 24 consecutive months. |
Property, plant and equipment | The following accounting policy applies to property, plant and equipment excluding right-of-use assets recognized under IFRS 16. Our accounting policies for right-of-use assets are included in note 8. Recognition and measurement, including depreciation We measure property, plant and equipment upon initial recognition at cost and begin recognizing depreciation when the asset is ready for its intended use. Subsequently, property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures (capital expenditures) that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes: • the cost of materials and direct labour; • costs directly associated with bringing the assets to a working condition for their intended use; • expected costs of decommissioning the items and restoring the sites on which they are located (see note 20 ); and • borrowing costs on qualifying assets. We depreciate property, plant and equipment over its estimated useful life by charging depreciation expense to net income as follows: Asset Basis Estimated useful life Buildings Diminishing balance 5 to 40 years Cable and wireless network Straight-line 3 to 40 years Computer equipment and software Straight-line 4 to 10 years Customer premise equipment Straight-line 3 to 6 years Leasehold improvements Straight-line Over shorter of estimated useful life or lease term Equipment and vehicles Diminishing balance 3 to 20 years We calculate gains and losses on the disposal of property, plant and equipment by comparing the proceeds from the disposal with the item's carrying amount and recognize the gain or loss in net income. We capitalize development expenditures if they meet the criteria for recognition as an asset and amortize them over their expected useful lives once the assets to which they relate are available for use. We expense research expenditures, maintenance costs, and training costs as incurred. Impairment testing, including recognition and measurement of an impairment charge See "Impairment Testing" in note 9 for our policies relating to impairment testing and the related recognition and measurement of impairment charges. The impairment policies for property, plant and equipment are similar to the impairment policies for intangible assets with finite useful lives. |
Leases | At inception of a contract, we assess whether that contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether: • the contract involves the use of an identified asset; • we have the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use; and • we have the right to direct the use of the asset. LESSEE ACCOUNTING We record a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, consisting of: • the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date; plus • any initial direct costs incurred; and • an estimate of costs to dismantle and remove the underlying asset or restore the site on which it is located; less • any lease incentives received. The right-of-use asset is depreciated on a straight-line basis over the lease term, unless we expect to obtain ownership of the leased asset at the end of the lease. The lease term consists of: • the non-cancellable period of the lease; • periods covered by options to extend the lease, where we are reasonably certain to exercise the option; and • periods covered by options to terminate the lease, where we are reasonably certain not to exercise the option. If we expect to obtain ownership of the leased asset at the end of the lease, we depreciate the right-of-use asset over the underlying asset's estimated useful life. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, our incremental borrowing rate. We generally use our incremental borrowing rate as the interest rate implicit in our leases cannot be readily determined. The lease liability is subsequently measured at amortized cost using the effective interest rate method. Lease payments included in the measurement of the lease liability include: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or rate; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that we are reasonably certain to exercise, lease payments in an optional renewal period if we are reasonably certain to exercise an extension option, and penalties for early termination of a lease unless we are reasonably certain not to terminate early. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in our estimate of the amount expected to be payable under a residual value guarantee, or if we change our assessment of whether or not we will exercise a purchase, extension, or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The lease liability is also remeasured when the underlying lease contract is amended. We have elected not to separate fixed non-lease components and account for the lease and any fixed non-lease components as a single lease component. Variable lease payments Certain leases contain provisions that result in differing lease payments over the term as a result of market rate reviews or changes in the Consumer Price Index (CPI) or other similar indices. We reassess the lease liabilities related to these leases when the index or other data is available to calculate the change in lease payments. Certain leases require us to make payments that relate to property taxes, insurance, and other non-rental costs. These non-rental costs are typically variable and are not included in the calculation of the right-of-use asset or lease liability. LESSOR ACCOUNTING When we act as a lessor, we determine at lease inception whether each lease is a finance lease or an operating lease. In order to classify each lease as either finance or operating, we make an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset. If it does, the lease is a finance lease; if not, it is an operating lease. We act as the lessor on certain collocation leases, whereby, due to certain regulatory requirements, we must allow other telecommunication companies to lease space on our wireless network towers. We do not believe we transfer substantially all of the risks and rewards incidental to ownership of the underlying leased asset to the lessee and therefore classify these leases as operating leases. If an arrangement contains both lease and non-lease components, we apply IFRS 15, Revenue from contracts with customers to allocate the consideration in the contract between the lease and the non-lease components. We recognize lease payments received under operating leases into income on a straight-line basis. All of the leases for which we act as lessor are classified as operating leases. Prior to the adoption of IFRS 16, leases of property, plant and equipment were recognized as finance leases if we obtained substantially all the risks and rewards of ownership of the underlying assets. All other leases were classified as operating leases for which we recognized an operating lease expense in operating costs on the Consolidated Statements of Income on a straight-line basis over the term of the lease. |
Intangible assets and goodwill | RECOGNITION AND MEASUREMENT, INCLUDING AMORTIZATION Upon initial recognition, we measure intangible assets at cost unless they are acquired through a business combination, in which case they are measured at fair value. We begin recognizing amortization on intangible assets with finite useful lives when the asset is ready for its intended use. Subsequently, the asset is carried at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of a separately acquired intangible asset comprises: • its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates; and • any directly attributable cost of preparing the asset for its intended use. Indefinite useful lives We do not amortize intangible assets with indefinite lives, including spectrum licences, broadcast licences, and certain brand names. Finite useful lives We amortize intangible assets with finite useful lives, other than acquired program rights, into depreciation and amortization on the Consolidated Statements of Income on a straight-line basis over their estimated useful lives as noted in the table below. We monitor and review the useful lives, residual values, and amortization methods at least once per year and change them if they are different from our previous estimates. We recognize the effects of changes in estimates in net income prospectively. Intangible asset Estimated useful life Customer relationships 3 to 10 years Acquired program rights Program rights are contractual rights we acquire from third parties to broadcast programs, including rights to broadcast live sporting events. We recognize them at cost less accumulated amortization and accumulated impairment losses. We capitalize program rights on the Consolidated Statements of Financial Position when the licence period begins and the program is available for use and amortize them to other external purchases in operating costs on the Consolidated Statements of Income over the expected exhibition period. If we have no intention to air programs, we consider the related program rights impaired and write them off. Otherwise, we test them for impairment as intangible assets with finite useful lives. The costs for multi-year sports and television broadcast rights agreements are recognized in operating expenses during the applicable seasons based on the pattern in which the rights are aired or are expected to be consumed. To the extent that prepayments are made at the commencement of a multi-year contract towards future years' rights fees, these prepayments are recognized as intangible assets and amortized to operating expenses over the contract term. To the extent that prepayments are made for annual contractual fees within a season, they are included in other current assets on our Consolidated Statements of Financial Position, as the rights will be consumed within the next twelve months. Goodwill We recognize goodwill arising from business combinations when the fair value of the separately identifiable assets we acquired and liabilities we assumed is lower than the consideration we paid (including the recognized amount of the non-controlling interest, if any). If the fair value of the consideration transferred is lower than that of the separately identified assets and liabilities, we immediately recognize the difference as a gain in net income. IMPAIRMENT TESTING We test intangible assets with finite useful lives for impairment whenever an event or change in circumstances indicates that their carrying amounts may not be recoverable. We test indefinite-life intangible assets and goodwill for impairment once per year as at October 1, or more frequently if we identify indicators of impairment. If we cannot estimate the recoverable amount of an individual intangible asset because it does not generate independent cash inflows, we test the entire CGU to which it belongs for impairment. Goodwill is allocated to CGUs (or groups of CGUs) based on the level at which management monitors goodwill, which cannot be higher than an operating segment. The allocation of goodwill is made to CGUs (or groups of CGUs) that are expected to benefit from the synergies of the business combination from which the goodwill arose. Recognition and measurement of an impairment charge An intangible asset or goodwill is impaired if the recoverable amount is less than the carrying amount. The recoverable amount of a CGU or asset is the higher of its: • fair value less costs to sell; and • value in use. If our estimate of the asset's or CGU's recoverable amount is less than its carrying amount, we reduce its carrying amount to the recoverable amount and recognize the loss in net income immediately. We reverse a previously recognized impairment loss, except in respect of goodwill, if our estimate of the recoverable amount of a previously impaired asset or CGU has increased such that the impairment recognized in a previous year has reversed. The reversal is recognized by increasing the asset's or CGU's carrying amount to our new estimate of its recoverable amount. The carrying amount of the asset or CGU subsequent to the reversal cannot be greater than its carrying amount had we not recognized an impairment loss in previous years. |
Income taxes | Income tax expense includes both current and deferred taxes. We recognize income tax expense in net income unless it relates to an item recognized directly in equity or other comprehensive income. We provide for income taxes based on all of the information that is currently available. Current tax expense is tax we expect to pay or receive based on our taxable income or loss during the year. We calculate the current tax expense using tax rates enacted or substantively enacted as at the reporting date, including any adjustment to taxes payable or receivable related to previous years. |
Deferred income tax | Deferred tax assets and liabilities arise from temporary differences between the carrying amounts of the assets and liabilities we recognize on our Consolidated Statements of Financial Position and their respective tax bases. We calculate deferred tax assets and liabilities using enacted or substantively enacted tax rates that will apply in the years in which the temporary differences are expected to reverse. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities and they relate to income taxes levied by the same authority on: • the same taxable entity; or • different taxable entities where these entities intend to settle current tax assets and liabilities on a net basis or the tax assets and liabilities will be realized and settled simultaneously. We recognize a deferred tax asset for unused losses, tax credits, and deductible temporary differences to the extent it is probable that future taxable income will be available to use the asset. |
Earnings per share | We calculate basic earnings per share by dividing the net income or loss attributable to our RCI Class A Voting and RCI Class B Non-Voting shareholders by the weighted average number of RCI Class A Voting and RCI Class B Non-Voting shares ( Class A Shares and Class B Non-Voting Shares , respectively) outstanding during the year. We calculate diluted earnings per share by adjusting the net income or loss attributable to Class A and Class B Non-Voting shareholders and the weighted average number of Class A Shares and Class B Non-Voting Shares outstanding for the effect of all dilutive potential common shares. We use the treasury stock method for calculating diluted earnings per share, which considers the impact of employee stock options and other potentially dilutive instruments. Options with tandem stock appreciation rights or cash payment alternatives are accounted for as cash-settled awards. As these awards can be exchanged for common shares of RCI, they are considered potentially dilutive and are included in the calculation of our diluted net earnings per share if they have a dilutive impact in the period. |
Accounts receivable | Accounts receivable represent amounts owing to us that are currently due and collectible. We initially recognize accounts receivable on the date they originate. We measure accounts receivable initially at fair value, and subsequently at amortized cost, with changes recognized in net income. We measure an impairment loss for accounts receivable as the excess of the carrying amount over the present value of future cash flows we expect to derive from it, if any. The excess is allocated to an allowance for doubtful accounts and recognized as a loss in net income. |
Inventories | We measure inventories, including wireless devices and merchandise for resale, at the lower of cost (determined on a weighted average cost basis for Wireless devices and accessories and a first-in, first-out basis for other finished goods and merchandise) and net realizable value. We reverse a previous writedown to net realizable value, not to exceed the original recognized cost, if the inventories later increase in value. |
Recognition, Classification and measurement of financial instruments | Recognition We initially recognize cash and cash equivalents, bank advances, accounts receivable, financing receivables, debt securities, and accounts payable and accrued liabilities on the date they originate. All other financial assets and financial liabilities are initially recognized on the trade date when we become a party to the contractual provisions of the instrument. Classification and measurement We measure financial instruments by grouping them into classes upon initial recognition, based on the purpose of the individual instruments. We initially measure all financial instruments at fair value plus, in the case of our financial instruments not classified as fair value through profit and loss (FVTPL) or FVTOCI, transaction costs that are directly attributable to the acquisition or issuance of the financial instruments. The classifications and methods of measurement subsequent to initial recognition of our financial assets and financial liabilities are as follows: Financial instrument Classification and measurement method Financial assets Cash and cash equivalents Amortized cost Accounts receivable Amortized cost Financing receivables Amortized cost Investments, measured at FVTOCI FVTOCI with no reclassification to net income 1 Financial liabilities Bank advances Amortized cost Short-term borrowings Amortized cost Accounts payable Amortized cost Accrued liabilities Amortized cost Long-term debt Amortized cost Lease liabilities Amortized cost Derivatives 2 Debt derivatives 3 FVTOCI and FVTPL Bond forwards FVTOCI Expenditure derivatives FVTOCI Equity derivatives FVTPL 4 1 Subsequently measured at fair value with changes recognized in the FVTOCI investment reserve. 2 Derivatives can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately into net income. 3 Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes and are measured at FVTPL. Debt derivatives related to our senior notes and debentures are designated as hedges for accounting purposes and are measured at FVTOCI. 4 Subsequent changes are offset against stock-based compensation expense or recovery in operating costs. |
Offsetting financial assets and financial liabilities | Offsetting financial assets and financial liabilities We offset financial assets and financial liabilities and present the net amount on the Consolidated Statements of Financial Position when we have a legal right to offset them and intend to settle on a net basis or realize the asset and liability simultaneously. |
Derivative instruments | Derivative instruments We use derivative instruments to manage risks related to certain activities in which we are involved. They include: Derivatives The risk they manage Types of derivative instruments Debt derivatives Impact of fluctuations in foreign exchange rates on principal and interest payments for US dollar-denominated senior notes and debentures, credit facility borrowings, commercial paper borrowings, and certain lease liabilities Cross-currency interest rate exchange agreements Bond forwards Impact of fluctuations in market interest rates on forecast interest payments for expected long-term debt Forward interest rate agreements Expenditure derivatives Impact of fluctuations in foreign exchange rates on forecast US dollar-denominated expenditures Forward foreign exchange agreements and foreign exchange option agreements Equity derivatives Impact of fluctuations in share price on stock-based compensation expense Total return swap agreements We use derivatives only to manage risk, and not for speculative purposes. When we designate a derivative instrument as a hedging instrument for accounting purposes, we first determine that the hedging instrument will be highly effective in offsetting the changes in fair value or cash flows of the item it is hedging. We then formally document the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy and the methods we will use to assess the ongoing effectiveness of the hedging relationship. We assess, on a quarterly basis, whether each hedging instrument continues to be highly effective in offsetting the changes in the fair value or cash flows of the item it is hedging. We assess host contracts in order to identify embedded derivatives. Embedded derivatives are separated from the host contract and accounted for as separate derivatives if the host contract is not a financial asset and certain criteria are met. |
Hedge ratio and hedging reserve | Hedge ratio Our policy is to hedge 100% of the foreign currency risk arising from principal and interest payment obligations on US dollar-denominated senior notes and debentures using debt derivatives. We also hedge up to 100% of the remaining lease payments when we enter into debt derivatives on our US dollar-denominated lease liabilities. We typically hedge up to 100% of forecast foreign currency expenditures net of foreign currency cash inflows using expenditure derivatives. From time to time, we hedge up to 100% of the interest rate risk on forecast future senior note issuances using bond forwards. Hedging reserve The hedging reserve represents the accumulated change in fair value of our derivative instruments to the extent they were effective hedges for accounting purposes, less accumulated amounts reclassified into net income. |
Deferred transaction costs | Deferred transaction costs and discounts We defer transaction costs and discounts associated with issuing long-term debt and direct costs we pay to lenders to obtain certain credit facilities and amortize them using the effective interest method over the life of the related instrument. |
FVTOCI investment reserve | FVTOCI investment reserve The FVTOCI investment reserve represents the accumulated change in fair value of our equity investments that are measured at FVTOCI less accumulated impairment losses related to the investments and accumulated amounts reclassified into equity. |
Impairment (expected credit losses) | Impairment (expected credit losses) We consider the credit risk of a financial asset at initial recognition and at each reporting period thereafter until it is derecognized. For a financial asset that is determined to have low credit risk at the reporting date and that has not had significant increases in credit risk since initial recognition, we measure any impairment loss based on the credit losses we expect to recognize over the next twelve months. For other financial assets, we will measure an impairment loss based on the lifetime expected credit losses. Certain assets, such as trade receivables and contract assets without significant financing components, must always be recorded at lifetime expected credit losses. Lifetime expected credit losses are estimates of all possible default events over the expected life of a financial instrument. Twelve-month expected credit losses are estimates of all possible default events within twelve months of the reporting date or over the expected life of a financial instrument, whichever is shorter. Financial assets that are significant in value are assessed individually. All other financial assets are assessed collectively based on the nature of each asset. We measure impairment for financial assets as follows: • Contract assets - we measure an impairment loss for contract assets based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income (see note 5 ). • Accounts receivable - we measure an impairment loss for accounts receivable based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income (see note 15 ). • Financing receivables - we measure an impairment loss for financing receivables based on the lifetime expected credit losses, which is allocated to an allowance for doubtful accounts and recognized as a loss in net income. • Investments measured at FVTOCI - we measure an impairment loss for equity investments measured at FVTOCI as the excess of the cost to acquire the asset (less any impairment loss we have previously recognized) over its current fair value, if any. The difference is recognized in the FVTOCI investment reserve. We consider financial assets to be in default when, in the case of contract assets and accounts receivable, the counterparty is unlikely to satisfy its obligations to us in full. Our investments measured at FVTOCI cannot default. To determine if our financial assets are in default, we consider the amount of time for which it has been outstanding, the reason for the amount being outstanding (for example, if the customer has ongoing service or, if they have been deactivated, whether voluntarily or involuntarily), and the risk profile of the underlying customers. We typically write-off accounts receivable when they have been outstanding for a significant period of time. |
Investments in publicly-traded and private companies | Investments in publicly traded and private companies We have elected to irrevocably classify our investments in companies over which we do not have control or significant influence as FVTOCI with no subsequent reclassification to net income because we do not hold these investments with the intent of short-term trading. We account for them as follows: • publicly traded companies - at fair value based on publicly quoted prices; and • private companies - at fair value using implied valuations from follow-on financing rounds, third-party sale negotiations, or market-based approaches. |
Investments in associates and joint arrangements | Investments in associates and joint arrangements An entity is an associate when we have significant influence over the entity's financial and operating policies but do not control the entity. We are generally presumed to have significant influence over an entity when we hold more than 20% of the voting power. A joint arrangement exists when there is a contractual agreement that establishes joint control over activities and requires unanimous consent for strategic financial and operating decisions. We classify our interests in joint arrangements into one of two categories: • joint ventures - when we have the rights to the net assets of the arrangement; and • joint operations - when we have the rights to the assets and obligations for the liabilities related to the arrangement. We use the equity method to account for our investments in associates and joint ventures; we recognize our proportionate interest in the assets, liabilities, revenue, and expenses of our joint operations. We initially recognize our investments in associates and joint ventures at cost and subsequently increase or decrease the carrying amounts based on our share of each entity's income or loss. Distributions we receive from these entities reduce the carrying amounts of our investments. We eliminate unrealized gains and losses from our investments in associates or joint ventures against our investments, up to the amount of our interest in the entities. |
Impairment in associates and joint ventures | Impairment in associates and joint ventures At the end of each reporting period, we assess whether there is objective evidence that impairment exists in our investments in associates and joint ventures. If objective evidence exists, we compare the carrying amount of the investment to its recoverable amount and recognize the excess over the recoverable amount, if any, as a loss in net income. |
Decommissioning and restoration costs | Decommissioning and restoration costs We use network and other assets on leased premises in some of our business activities. We expect to exit these premises in the future and we therefore make provisions for the costs associated with decommissioning the assets and restoring the locations to their original conditions when we have a legal or constructive obligation to do so. We calculate these costs based on a current estimate of the costs that will be incurred, project those costs into the future based on management's best estimates of future trends in prices, inflation, and other factors, and discount them to their present value. We revise our forecasts when business conditions or technological requirements change. When we recognize a decommissioning liability, we recognize a corresponding asset in property, plant and equipment (as property, plant and equipment or a right-of-use asset, as applicable based on the underlying asset) and depreciate the asset based on the corresponding asset's useful life following our depreciation policies for property, plant and equipment and right-of-use assets, as applicable. We recognize the accretion of the liability as a charge to finance costs on the Consolidated Statements of Income. |
Restructuring and Onerous contracts | Restructuring We make provisions for restructuring when we have approved a detailed and formal restructuring plan and either the restructuring has started or management has announced the plan's main features to the employees affected by it. Restructuring obligations that have uncertain timing or amounts are recognized as provisions; otherwise they are recognized as accrued liabilities. All charges are recognized in restructuring, acquisition and other on the Consolidated Statements of Income (see note 10 ). Onerous contracts We make provisions for onerous contracts when the unavoidable costs of meeting our obligation under a contract exceed the benefits we expect to realize from it. We measure these provisions at the present value of the lower of the expected cost of terminating the contract or the expected cost of continuing with the contract. We recognize any impairment loss on the assets associated with the contract before we make the provision. |
Provision estimates | We recognize a provision when a past event creates a legal or constructive obligation that can be reasonably estimated and is likely to result in an outflow of economic resources. We recognize a provision even when the timing or amount of the obligation may be uncertain, which can require us to use significant estimates. |
Post-employment benefits - Defined Benefit Pension Plan and Defined Contribution Pension Plan | Post-employment benefits - defined benefit pension plans We offer contributory and non-contributory defined benefit pension plans that provide employees with a lifetime monthly pension on retirement. We separately calculate our net obligation for each defined benefit pension plan by estimating the amount of future benefits employees have earned in return for their service in the current and prior years and discounting those benefits to determine their present value. We accrue our pension plan obligations as employees provide the services necessary to earn the pension. We use a discount rate based on market yields on high-quality corporate bonds at the measurement date to calculate the accrued pension benefit obligation. Remeasurements of the accrued pension benefit obligation are determined at the end of the year and include actuarial gains and losses, returns on plan assets, and any change in the effect of the asset ceiling. These are recognized in other comprehensive income and retained earnings. The cost of pensions is actuarially determined and takes into account the following assumptions and methods for pension accounting related to our defined benefit pension plans: • expected rates of salary increases for calculating increases in future benefits; • mortality rates for calculating the life expectancy of plan members; and • past service costs from plan amendments are immediately expensed in net income. We recognize our net pension expense for our defined benefit pension plans and contributions to defined contribution plans as an employee benefit expense in operating costs on the Consolidated Statements of Income in the periods the employees provide the related services. Post-employment benefits - defined contribution pension plan In 2016, we closed the defined benefit pension plans to new members and introduced a defined contribution pension plan. This change did not impact current defined benefit members at the time; any employee enrolled in any of the defined benefit pension plans at that date continues to earn pension benefits and credited service in their respective plan. We recognize a pension expense in relation to our contributions to the defined contribution pension plan when the employee provides service to the Company. |
Termination benefits | Termination benefits We recognize termination benefits as an expense when we are committed to a formal detailed plan to terminate employment before the normal retirement date and it is not realistic that we will withdraw it. |
Stock option plans, Restricted share unit (RSU) and deferred share unit (DSU) plans, and Employee share accumulation plan | Stock option plans Cash-settled share appreciation rights (SARs) are attached to all stock options granted under our employee stock option plan. This feature allows the option holder to choose to receive a cash payment equal to the intrinsic value of the option (the amount by which the market price of the Class B Non-Voting Share exceeds the exercise price of the option on the exercise date) instead of exercising the option to acquire Class B Non-Voting Shares . We classify all outstanding stock options with cash settlement features as liabilities and carry them at their fair value, determined using the Black-Scholes option pricing model or a trinomial option pricing model, depending on the nature of the share-based award. We remeasure the fair value of the liability each period and amortize it to operating costs using graded vesting, either over the vesting period or to the date an employee is eligible to retire (whichever is shorter). Restricted share unit (RSU) and deferred share unit (DSU) plans We recognize outstanding RSUs and DSUs as liabilities, measuring the liabilities and compensation costs based on the awards' fair values, which are based on the market price of the Class B Non-Voting Shares, and recognizing them as charges to operating costs over the vesting period of the awards. If an award's fair value changes after it has been granted and before the exercise date, we recognize the resulting changes in the liability within operating costs in the year the change occurs. For RSUs, the payment amount is established as of the vesting date. For DSUs, the payment amount is established as of the exercise date. Employee share accumulation plan Employees voluntarily participate in the share accumulation plan by contributing a specified percentage of their regular earnings. We match employee contributions up to a certain amount and recognize our contributions as a compensation expense in the year we make them. Expenses relating to the employee share accumulation plan are included in operating costs. |
Contingent liabilities | Contingent liabilities are liabilities of uncertain timing or amount and are not recognized until we have a present obligation as a result of a past event, it is probable that we will experience an outflow of resources embodying economic benefits to settle the obligation, and a reliable estimate can be made of the amount of the obligation. We disclose our contingent liabilities unless the possibility of an outflow of resources in settlement is remote. |
NATURE OF THE BUSINESS (Tables)
NATURE OF THE BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of operating segments | We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows: Segment Principal activities Wireless Wireless telecommunications operations for Canadian consumers and businesses. Cable Cable telecommunications operations, including Internet, television, telephony (phone), and smart home monitoring services for Canadian consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. Media A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media. INFORMATION BY SEGMENT Year ended December 31, 2019 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,250 3,954 2,072 (203 ) 15,073 Operating costs 6 4,905 2,035 1,932 (11 ) 8,861 Adjusted EBITDA 4,345 1,919 140 (192 ) 6,212 Depreciation and amortization 7, 8, 9 2,488 Restructuring, acquisition and other 10 139 Finance costs 11 840 Other income 12 (10 ) Income before income tax expense 2,755 Capital expenditures 1 7, 29 1,320 1,153 102 232 2,807 Goodwill 9 1,160 1,808 955 — 3,923 Total assets 20,105 7,891 2,550 6,473 37,019 1 Includes proceeds on disposition of $38 million (see note 29 ). Year ended December 31, 2018 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,200 3,932 2,168 (204 ) 15,096 Operating costs 6 5,110 2,058 1,972 (27 ) 9,113 Adjusted EBITDA 4,090 1,874 196 (177 ) 5,983 Depreciation and amortization 7, 8, 9 2,211 Gain on disposition of property, plant and equipment 7 (16 ) Restructuring, acquisition and other 10 210 Finance costs 11 793 Other income 12 (32 ) Income before income tax expense 2,817 Capital expenditures 1 7, 29 1,086 1,429 90 185 2,790 Goodwill 9 1,160 1,808 937 — 3,905 Total assets 16,572 7,666 2,438 5,242 31,918 1 Includes proceeds on disposition of $25 million (see note 29 ). |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
List of Accounting Policies [Abstract] | |
Disclosure of impact of initial application of new standards or interpretations | Our significant accounting policies, estimates, and judgments are identified in this note or disclosed throughout the notes as identified in the table below, including: • information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the amounts recognized in the consolidated financial statements; • information about judgments made in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements; and • information on our significant accounting policies. Note Topic Page Accounting Policy Use of Estimates Use of Judgments 4 Reportable Segments 16 X X 5 Revenue Recognition 17 X X X 7 Property, Plant and Equipment 21 X X X 8 Leases 23 X X X 9 Intangible Assets and Goodwill 26 X X X 13 Income Taxes 30 X X 14 Earnings Per Share 32 X 15 Accounts Receivable 32 X 16 Inventories 33 X 17 Financial Instruments 33 X X X 18 Investments 44 X 20 Provisions 47 X X X 23 Post-Employment Benefits 52 X X 25 Stock-Based Compensation 58 X X 28 Commitments and Contingent Liabilities 63 X X Below is the effect of transition to IFRS 16 on our condensed consolidated statement of financial position as at January 1, 2019. (In millions of dollars) As reported as at (see note 15) Effect of IFRS 16 transition Subsequent to transition as at Assets Current assets: Cash and cash equivalents 405 — 405 Accounts receivable 2,236 — 2,236 Inventories 466 — 466 Current portion of contract assets 1,052 — 1,052 Other current assets 459 (23 ) 436 Current portion of derivative instruments 270 — 270 Total current assets 4,888 (23 ) 4,865 Property, plant and equipment 11,780 1,481 13,261 Intangible assets 7,205 — 7,205 Investments 2,134 — 2,134 Derivative instruments 1,339 — 1,339 Contract assets 535 — 535 Other long-term assets 132 — 132 Goodwill 3,905 — 3,905 Total assets 31,918 1,458 33,376 Liabilities and shareholders' equity Current liabilities: Short-term borrowings 2,255 — 2,255 Accounts payable and accrued liabilities 3,052 (55 ) 2,997 Income tax payable 177 — 177 Other current liabilities 132 — 132 Contract liabilities 233 — 233 Current portion of long-term debt 900 — 900 Current portion of derivative instruments 87 — 87 Current portion of lease liabilities — 190 190 Total current liabilities 6,836 135 6,971 Provisions 35 — 35 Long-term debt 13,390 — 13,390 Derivative instruments 22 — 22 Lease liabilities — 1,355 1,355 Other long-term liabilities 546 — 546 Deferred tax liabilities 2,910 (9 ) 2,901 Total liabilities 23,739 1,481 25,220 Shareholders' equity 8,179 (23 ) 8,156 Total liabilities and shareholders' equity 31,918 1,458 33,376 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | We report our results of operations in three reportable segments. Each segment and the nature of its business is as follows: Segment Principal activities Wireless Wireless telecommunications operations for Canadian consumers and businesses. Cable Cable telecommunications operations, including Internet, television, telephony (phone), and smart home monitoring services for Canadian consumers and businesses, and network connectivity through our fibre network and data centre assets to support a range of voice, data, networking, hosting, and cloud-based services for the business, public sector, and carrier wholesale markets. Media A diversified portfolio of media properties, including sports media and entertainment, television and radio broadcasting, specialty channels, multi-platform shopping, and digital media. INFORMATION BY SEGMENT Year ended December 31, 2019 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,250 3,954 2,072 (203 ) 15,073 Operating costs 6 4,905 2,035 1,932 (11 ) 8,861 Adjusted EBITDA 4,345 1,919 140 (192 ) 6,212 Depreciation and amortization 7, 8, 9 2,488 Restructuring, acquisition and other 10 139 Finance costs 11 840 Other income 12 (10 ) Income before income tax expense 2,755 Capital expenditures 1 7, 29 1,320 1,153 102 232 2,807 Goodwill 9 1,160 1,808 955 — 3,923 Total assets 20,105 7,891 2,550 6,473 37,019 1 Includes proceeds on disposition of $38 million (see note 29 ). Year ended December 31, 2018 Note Wireless Cable Media Corporate items and eliminations Consolidated totals (In millions of dollars) Revenue 5 9,200 3,932 2,168 (204 ) 15,096 Operating costs 6 5,110 2,058 1,972 (27 ) 9,113 Adjusted EBITDA 4,090 1,874 196 (177 ) 5,983 Depreciation and amortization 7, 8, 9 2,211 Gain on disposition of property, plant and equipment 7 (16 ) Restructuring, acquisition and other 10 210 Finance costs 11 793 Other income 12 (32 ) Income before income tax expense 2,817 Capital expenditures 1 7, 29 1,086 1,429 90 185 2,790 Goodwill 9 1,160 1,808 937 — 3,905 Total assets 16,572 7,666 2,438 5,242 31,918 1 Includes proceeds on disposition of $25 million (see note 29 ). |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue [abstract] | |
Disclosure of performance obligations | The table below shows the revenue we expect to recognize in the future related to unsatisfied or partially satisfied performance obligations as at December 31, 2019 . The unsatisfied portion of the transaction price of the performance obligations relates to monthly services; we expect to recognize it over the next three to five years . (In millions of dollars) 2020 2021 2022 Thereafter Total Telecommunications service 2,350 983 186 177 3,696 The table below summarizes the nature of the various performance obligations in our contracts with customers and when we recognize performance on those obligations. Performance obligations from contracts with customers Timing of satisfaction of the performance obligation Wireless airtime, data, and other services; television, telephony, Internet, and smart home monitoring services; network services; media subscriptions; and rental of equipment As the service is provided (usually monthly) Roaming, long-distance, and other optional or non-subscription services, and pay-per-use services As the service is provided Wireless devices and related equipment Upon activation or purchase by the end customer Installation services for Cable subscribers When the services are performed Advertising When the advertising airs on our radio or television stations or is displayed on our digital properties Subscriptions by television stations for subscriptions from cable and satellite providers When the services are delivered to cable and satellite providers' subscribers (usually monthly) Toronto Blue Jays' home game admission and concessions When the related games are played during the baseball season and when goods are sold Toronto Blue Jays revenue from the Major League Baseball Revenue Sharing Agreement, which redistributes funds between member clubs based on each club’s relative revenue When the amount is determinable Radio and television broadcast agreements When the related programs are aired Sublicensing of program rights Over the course of the applicable licence period |
Explanation of significant changes in contract assets and contract liabilities | CONTRACT ASSETS Below is a summary of the current and long-term portions of contract assets from contracts with customers and the significant changes in those balances during the years ended December 31, 2019 and 2018 . Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 1,587 1,233 Additions from new contracts with customers, net of terminations and renewals 1,653 1,572 Amortization of contract assets to accounts receivable (1,449 ) (1,218 ) Balance, end of year 1,791 1,587 CONTRACT LIABILITIES Below is a summary of the current portion of contract liabilities from contracts with customers and the significant changes in those balances during the years ended December 31, 2019 and 2018 . Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 233 278 Revenue deferred in previous year and recognized as revenue in current year (222 ) (268 ) Net additions from contracts with customers 213 223 Balance, end of year 224 233 |
Disclosure of deferred commission costs assets | Below is a summary of the changes in the deferred commission cost assets recognized from the incremental costs incurred to obtain contracts with customers during the years ended December 31, 2019 and 2018 . The deferred commission cost assets are presented within other current assets (when they will be amortized into net income within twelve months of the date of the financial statements) or other long-term assets. Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 296 278 Additions to deferred commission cost assets 329 340 Amortization recognized on deferred commission cost assets (320 ) (322 ) Balance, end of year 305 296 |
Disclosure of disaggregation of revenue from contracts with customers | DISAGGREGATION OF REVENUE Years ended December 31 (In millions of dollars) 2019 2018 Wireless Service revenue 7,156 7,091 Equipment revenue 2,094 2,109 Total Wireless 9,250 9,200 Cable Internet 2,259 2,114 Television 1,430 1,442 Phone 251 363 Service revenue 3,940 3,919 Equipment revenue 14 13 Total Cable 3,954 3,932 Total Media 2,072 2,168 Corporate items and intercompany eliminations (203 ) (204 ) Total revenue 15,073 15,096 |
OPERATING COSTS (Tables)
OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Costs [Abstract] | |
Disclosure of operating costs | Years ended December 31 (In millions of dollars) 2019 2018 Cost of equipment sales 2,254 2,284 Merchandise for resale 242 231 Other external purchases 4,360 4,509 Employee salaries, benefits, and stock-based compensation 2,005 2,089 Total operating costs 8,861 9,113 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | The table below summarizes our property, plant and equipment as at December 31, 2019 , 2018 , and 2017 . (In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017 Cost Accumulated depreciation Net carrying amount Cost Accumulated depreciation Net carrying amount Cost Accumulated depreciation Net carrying amount Land and buildings 1,182 (461 ) 721 1,125 (428 ) 697 1,090 (397 ) 693 Cable and wireless networks 21,778 (13,814 ) 7,964 21,024 (13,550 ) 7,474 20,252 (13,206 ) 7,046 Computer equipment and software 5,903 (3,749 ) 2,154 5,514 (3,305 ) 2,209 4,996 (2,807 ) 2,189 Customer premise equipment 1,963 (1,387 ) 576 1,908 (1,279 ) 629 1,565 (1,090 ) 475 Leasehold improvements 596 (281 ) 315 539 (250 ) 289 496 (220 ) 276 Equipment and vehicles 1,244 (776 ) 468 1,292 (810 ) 482 1,246 (782 ) 464 Property, plant and equipment 32,666 (20,468 ) 12,198 31,402 (19,622 ) 11,780 29,645 (18,502 ) 11,143 Right-of-use assets 1,911 (175 ) 1,736 — — — — — — Total 34,577 (20,643 ) 13,934 31,402 (19,622 ) 11,780 29,645 (18,502 ) 11,143 The tables below summarize the changes in the net carrying amounts of property, plant and equipment during 2019 and 2018 . (In millions of dollars) December 31, 2018 December 31, 2019 Net carrying amount Effect of IFRS 16 transition Additions 1 Depreciation Disposals and other 2 Net carrying amount Land and buildings 697 — 57 (34 ) 1 721 Cable and wireless networks 7,474 (95 ) 1,739 (1,157 ) 3 7,964 Computer equipment and software 2,209 — 644 (706 ) 7 2,154 Customer premise equipment 629 — 236 (292 ) 3 576 Leasehold improvements 289 — 60 (33 ) (1 ) 315 Equipment and vehicles 482 — 109 (75 ) (48 ) 468 Property, plant and equipment 11,780 (95 ) 2,845 (2,297 ) (35 ) 12,198 Right-of-use assets (note 8) — 1,576 335 (175 ) — 1,736 Total property, plant and equipment 11,780 1,481 3,180 (2,472 ) (35 ) 13,934 1 Excludes proceeds on disposition of $38 million (see note 29 ). 2 Includes disposals, reclassifications, and other adjustments. (In millions of dollars) December 31, 2017 December 31, 2018 Net carrying amount Additions 1 Depreciation Disposals and other 2 Net carrying amount Land and buildings 693 40 (32 ) (4 ) 697 Cable and wireless networks 7,046 1,556 (1,128 ) — 7,474 Computer equipment and software 2,189 653 (633 ) — 2,209 Customer premise equipment 475 423 (269 ) — 629 Leasehold improvements 276 44 (31 ) — 289 Equipment and vehicles 464 99 (81 ) — 482 Total property, plant and equipment 11,143 2,815 (2,174 ) (4 ) 11,780 1 Excludes proceeds on disposition of $25 million (see note 29 ). 2 Includes disposals, reclassifications, and other adjustments. We depreciate property, plant and equipment over its estimated useful life by charging depreciation expense to net income as follows: Asset Basis Estimated useful life Buildings Diminishing balance 5 to 40 years Cable and wireless network Straight-line 3 to 40 years Computer equipment and software Straight-line 4 to 10 years Customer premise equipment Straight-line 3 to 6 years Leasehold improvements Straight-line Over shorter of estimated useful life or lease term Equipment and vehicles Diminishing balance 3 to 20 years |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of leases [Abstract] | |
Summary of activity related to lease liabilities | Below is a summary of the activity related to our lease liabilities for the twelve months ended December 31, 2019 . Certain of our lease liabilities are secured by the underlying right-of-use assets; the underlying right-of-use assets have a net carrying amount of $114 million . (In millions of dollars) December 31, 2019 Lease liabilities, beginning of year 1,545 Net additions 335 Interest expense on lease liabilities 61 Interest payments on lease liabilities (49 ) Principal payments of lease liabilities (167 ) Lease liabilities, end of year 1,725 Current liability 230 Long-term liability 1,495 Lease liabilities 1,725 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Disclosure of estimated useful lives of intangible assets | Intangible asset Estimated useful life Customer relationships 3 to 10 years |
Disclosure of reconciliation of changes in intangible assets and goodwill | The table below summarizes our intangible assets as at December 31, 2019 , 2018 , and 2017 . (In millions of dollars) December 31, 2019 December 31, 2018 December 31, 2017 Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Cost prior to impairment losses Accumulated amortization Accumulated impairment losses Net carrying amount Indefinite-life intangible assets: Spectrum licences 8,331 — — 8,331 6,600 — — 6,600 6,600 — — 6,600 Broadcast licences 333 — (99 ) 234 333 — (99 ) 234 329 — (99 ) 230 Brand names 420 (270 ) (14 ) 136 420 (270 ) (14 ) 136 420 (270 ) (14 ) 136 Finite-life intangible assets: Customer relationships 1,611 (1,578 ) — 33 1,609 (1,562 ) — 47 1,609 (1,525 ) — 84 Acquired program rights 253 (77 ) (5 ) 171 251 (58 ) (5 ) 188 263 (64 ) (5 ) 194 Total intangible assets 10,948 (1,925 ) (118 ) 8,905 9,213 (1,890 ) (118 ) 7,205 9,221 (1,859 ) (118 ) 7,244 Goodwill 4,144 — (221 ) 3,923 4,126 — (221 ) 3,905 4,126 — (221 ) 3,905 Total intangible assets and goodwill 15,092 (1,925 ) (339 ) 12,828 13,339 (1,890 ) (339 ) 11,110 13,347 (1,859 ) (339 ) 11,149 The tables below summarize the changes in the net carrying amounts of intangible assets and goodwill in 2019 and 2018 . (In millions of dollars) December 31, 2018 December 31, 2019 Net carrying amount Net additions Amortization 1 Net carrying amount Spectrum licences 6,600 1,731 — 8,331 Broadcast licences 234 — — 234 Brand names 136 — — 136 Customer relationships 47 2 (16 ) 33 7,017 1,733 (16 ) 8,734 Acquired program rights 188 60 (77 ) 171 Total intangible assets 7,205 1,793 (93 ) 8,905 Goodwill 3,905 18 — 3,923 Total intangible assets and goodwill 11,110 1,811 (93 ) 12,828 1 Of the $93 million of total amortization, $77 million related to acquired program rights is included in other external purchases in operating costs (see note 6 ), and $16 million in depreciation and amortization on the Consolidated Statements of Income. (In millions of dollars) December 31, 2017 December 31, 2018 Net carrying amount Net additions Amortization 1 Other 2 Net carrying amount Spectrum licences 6,600 — — — 6,600 Broadcast licences 230 4 — — 234 Brand names 136 — — — 136 Customer relationships 84 — (37 ) — 47 7,050 4 (37 ) — 7,017 Acquired program rights 194 54 (58 ) (2 ) 188 Total intangible assets 7,244 58 (95 ) (2 ) 7,205 Goodwill 3,905 — — — 3,905 Total intangible assets and goodwill 11,149 58 (95 ) (2 ) 11,110 1 Of the $95 million of total amortization, $58 million related to acquired program rights is included in other external purchases in operating costs (see note 6 ), and $37 million in depreciation and amortization on the Consolidated Statements of Income. 2 Includes disposals, writedowns, reclassifications, and other adjustments. |
Schedule of cash-generating units | Below is an overview of the methods and key assumptions we used in 2019 to determine recoverable amounts for CGUs, or groups of CGUs, with indefinite-life intangible assets or goodwill that we consider significant. (In millions of dollars, except periods used and rates) Carrying value of goodwill Carrying value of indefinite-life intangible assets Recoverable amount method Period of projected cash flows (years) Terminal growth rates (%) Pre-tax discount rates (%) Wireless 1,160 8,465 Value in use 5 0.5 8.4 Cable 1,808 — Value in use 5 1.5 7.8 Media 955 235 Fair value less cost to sell 5 2.0 9.8 |
FINANCE COSTS (Tables)
FINANCE COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Finance Costs [Abstract] | |
Schedule of finance cost | Years ended December 31 (In millions of dollars) Note 2019 2018 Interest on borrowings 1 746 709 Interest on post-employment benefits liability 23 11 14 Loss on repayment of long-term debt 21 19 28 (Gain) loss on foreign exchange (79 ) 136 Change in fair value of derivative instruments 80 (95 ) Capitalized interest (19 ) (20 ) Other 21 21 Finance costs before interest on lease liabilities 779 793 Interest expense on lease liabilities 8 61 — Total finance costs 840 793 1 Interest on borrowings includes interest on short-term borrowings and on long-term debt. |
OTHER (INCOME) EXPENSE (Tables)
OTHER (INCOME) EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of other (income) expense | Years ended December 31 (In millions of dollars) Note 2019 2018 Losses from associates and joint ventures 18 25 — Other investment income (35 ) (32 ) Total other income (10 ) (32 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Disclosure of major components of tax expense | Years ended December 31 (In millions of dollars) 2019 2018 Total current tax expense 269 483 Deferred tax expense: Origination of temporary differences 466 275 Revaluation of deferred tax balances due to legislative changes (23 ) — Total deferred tax expense 443 275 Total income tax expense 712 758 |
Disclosure of difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the income tax expense | Below is a summary of the difference between income tax expense computed by applying the statutory income tax rate to income before income tax expense and the income tax expense for the year. Years ended December 31 (In millions of dollars, except rates) 2019 2018 Statutory income tax rate 26.7 % 26.7 % Income before income tax expense 2,755 2,817 Computed income tax expense 736 752 Increase (decrease) in income tax expense resulting from: Non-deductible stock-based compensation — 5 Non-deductible portion of equity losses 7 1 Income tax adjustment, legislative tax change (23 ) — Non-taxable portion of capital gains (2 ) (9 ) Other (6 ) 9 Total income tax expense 712 758 Effective income tax rate 25.8 % 26.9 % |
Disclosure of temporary difference, unused tax losses and unused tax credits | Below is a summary of the movement of net deferred tax assets and liabilities during 2019 and 2018 . Deferred tax assets (liabilities) Property, plant and equipment and inventory Goodwill and other intangibles Investments Non-capital loss carryforwards Contract and deferred commission cost assets Other Total December 31, 2018 (1,145 ) (1,192 ) (66 ) 29 (515 ) (21 ) (2,910 ) Effect of IFRS 16 adoption (see note 2) — — — — — 9 9 (Expense) recovery in net income (221 ) (126 ) 2 (17 ) (55 ) (26 ) (443 ) (Expense) recovery in other comprehensive income — — (104 ) — — 11 (93 ) December 31, 2019 (1,366 ) (1,318 ) (168 ) 12 (570 ) (27 ) (3,437 ) Deferred tax assets (liabilities) (In millions of dollars) Property, plant and equipment and inventory Goodwill and other intangibles Investments Non-capital loss carryforwards Contract and deferred commission cost assets Other Total December 31, 2017 (1,060 ) (1,075 ) (126 ) 18 (418 ) 40 (2,621 ) (Expense) recovery in net income (85 ) (117 ) (3 ) 11 (97 ) 16 (275 ) Recovery (expense) in other comprehensive income — — 63 — — (77 ) (14 ) December 31, 2018 (1,145 ) (1,192 ) (66 ) 29 (515 ) (21 ) (2,910 ) |
Disclosure of unrecognized deferred tax assets | We have not recognized deferred tax assets for the following items: As at December 31 (In millions of dollars) 2019 2018 Realized and accrued capital losses in Canada that can be applied against future capital gains 41 98 Tax losses in foreign jurisdictions that expire between 2023 and 2038 67 68 Deductible temporary differences in foreign jurisdictions 41 25 Total unrecognized temporary differences 149 191 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Disclosure of earnings per share | Years ended December 31 (In millions of dollars, except per share amounts) 2019 2018 Numerator (basic) - Net income for the year 2,043 2,059 Denominator - Number of shares (in millions): Weighted average number of shares outstanding - basic 512 515 Effect of dilutive securities (in millions): Employee stock options and restricted share units 1 1 Weighted average number of shares outstanding - diluted 513 516 Earnings per share: Basic $3.99 $4.00 Diluted $3.97 $3.99 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Receivables | As at December 31 (In millions of dollars) Note 2019 2018 Customer accounts receivable 1,579 1,529 Other accounts receivable 785 762 Allowance for doubtful accounts 15 (60 ) (55 ) Total accounts receivable 2,304 2,236 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Inventories | As at December 31 (In millions of dollars) 2019 2018 Wireless devices and accessories 380 399 Other finished goods and merchandise 80 67 Total inventories 460 466 |
FINANCIAL RISK MANAGEMENT AND_2
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Detailed information about financial instruments | Below is a summary of the derivative instruments assets and derivative instruments liabilities reflected on our Consolidated Statements of Financial Position. As at December 31 (In millions of dollars) 2019 2018 Current asset 101 270 Long-term asset 1,478 1,339 1,579 1,609 Current liability (50 ) (87 ) Long-term liability (90 ) (22 ) (140 ) (109 ) Net mark-to-market asset 1,439 1,500 The classifications and methods of measurement subsequent to initial recognition of our financial assets and financial liabilities are as follows: Financial instrument Classification and measurement method Financial assets Cash and cash equivalents Amortized cost Accounts receivable Amortized cost Financing receivables Amortized cost Investments, measured at FVTOCI FVTOCI with no reclassification to net income 1 Financial liabilities Bank advances Amortized cost Short-term borrowings Amortized cost Accounts payable Amortized cost Accrued liabilities Amortized cost Long-term debt Amortized cost Lease liabilities Amortized cost Derivatives 2 Debt derivatives 3 FVTOCI and FVTPL Bond forwards FVTOCI Expenditure derivatives FVTOCI Equity derivatives FVTPL 4 1 Subsequently measured at fair value with changes recognized in the FVTOCI investment reserve. 2 Derivatives can be in an asset or liability position at a point in time historically or in the future. For derivatives designated as cash flow hedges for accounting purposes, the effective portion of the hedge is recognized in accumulated other comprehensive income and the ineffective portion of the hedge is recognized immediately into net income. 3 Debt derivatives related to our credit facility and commercial paper borrowings have not been designated as hedges for accounting purposes and are measured at FVTPL. Debt derivatives related to our senior notes and debentures are designated as hedges for accounting purposes and are measured at FVTOCI. 4 Subsequent changes are offset against stock-based compensation expense or recovery in operating costs. As at December 31, 2019 (In millions of dollars, except exchange rates) Notional Exchange Notional Fair value Debt derivatives accounted for as cash flow hedges: As assets 5,800 1.1357 6,587 1,508 As liabilities 2,570 1.3263 3,409 (96 ) Short-term debt derivatives not accounted for as hedges: As liabilities 1,223 1.3227 1,618 (29 ) Net mark-to-market debt derivative asset 1,383 Expenditure derivatives accounted for as cash flow hedges: As assets 270 1.2391 335 16 As liabilities 720 1.3228 952 (15 ) Net mark-to-market expenditure derivative asset 1 Equity derivatives not accounted for as hedges: As assets 223 55 Net mark-to-market asset 1,439 As at December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Fair value Debt derivatives accounted for as cash flow hedges: As assets 5,500 1.1243 6,184 1,354 As liabilities 550 1.3389 736 (22 ) Short-term debt derivatives not accounted for as hedges: As assets 1,178 1.3276 1,564 41 Net mark-to-market debt derivative asset 1,373 Bond forwards accounted for as cash flow hedges: As liabilities — — 900 (87 ) Expenditure derivatives accounted for as cash flow hedges: As assets 1,080 1.2413 1,341 122 Equity derivatives not accounted for as hedges: As assets — — 258 92 Net mark-to-market asset 1,500 We use derivative instruments to manage risks related to certain activities in which we are involved. They include: Derivatives The risk they manage Types of derivative instruments Debt derivatives Impact of fluctuations in foreign exchange rates on principal and interest payments for US dollar-denominated senior notes and debentures, credit facility borrowings, commercial paper borrowings, and certain lease liabilities Cross-currency interest rate exchange agreements Bond forwards Impact of fluctuations in market interest rates on forecast interest payments for expected long-term debt Forward interest rate agreements Expenditure derivatives Impact of fluctuations in foreign exchange rates on forecast US dollar-denominated expenditures Forward foreign exchange agreements and foreign exchange option agreements Equity derivatives Impact of fluctuations in share price on stock-based compensation expense Total return swap agreements Financial instrument Financial risks Financial assets Cash and cash equivalents Credit and foreign exchange Accounts receivable Credit and foreign exchange Financing receivables Credit Investments, measured at FVTOCI Liquidity, market price, and foreign exchange Financial liabilities Bank advances Liquidity Short-term borrowings Liquidity, foreign exchange, and interest rate Accounts payable Liquidity Accrued liabilities Liquidity Long-term debt Liquidity, foreign exchange, and interest rate Lease liabilities Liquidity and foreign exchange Derivatives 1 Debt derivatives Credit, liquidity, and foreign exchange Bond forwards Credit, liquidity, and interest rate Expenditure derivatives Credit, liquidity, and foreign exchange Equity derivatives Credit, liquidity, and market price 1 Derivatives can be in an asset or liability position at a point in time historically or in the future. |
Analysis of age of financial assets that are past due but not impaired | Below is a summary of the aging of our customer accounts receivable. As at December 31 (In millions of dollars) 2019 2018 Customer accounts receivable (net of allowance for doubtful accounts) Less than 30 days past billing date 1,053 970 30-60 days past billing date 274 300 61-90 days past billing date 90 100 Greater than 90 days past billing date 102 104 Total 1,519 1,474 Below is a summary of the activity related to our allowance for doubtful accounts. Years ended December 31 (In millions of dollars) 2019 2018 Balance, beginning of year 55 61 Allowance for doubtful accounts expense 238 201 Net use 1 (233 ) (207 ) Balance, end of year 60 55 1 Includes $17 million of recoveries arising from the sale of fully provided for accounts receivable for the year ended December 31, 2018. |
Disclosure of maturity analysis for non-derivative financial liabilities | Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2019 and 2018 . December 31, 2019 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,238 2,238 2,238 — — — Accounts payable and accrued liabilities 3,033 3,033 3,033 — — — Long-term debt 15,967 16,130 — 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 — 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,287 1,248 39 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,286 ) (1,247 ) (39 ) — — Equity derivative instruments — (55 ) (55 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 9,903 — — 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (10,780 ) — — (1,753 ) (9,027 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,622 1,622 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,593 ) (1,593 ) — — — Net carrying amount of derivatives (asset) (1,439 ) 21,550 22,745 5,476 2,475 2,325 12,469 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. December 31, 2018 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,255 2,255 2,255 — — — Accounts payable and accrued liabilities 3,052 3,052 3,052 — — — Long-term debt 14,290 14,404 900 2,350 2,442 8,712 Other long-term financial liabilities 38 38 1 24 5 8 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,341 1,045 296 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,473 ) (1,146 ) (327 ) — — Equity derivative instruments — (92 ) (92 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 6,920 — — 1,392 5,528 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (8,254 ) — — (1,842 ) (6,412 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,560 1,560 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,601 ) (1,601 ) — — — Bond forwards — 87 87 — — — Net carrying amount of derivatives (asset) (1,500 ) 18,135 18,237 6,061 2,343 1,997 7,836 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. Below is a summary of the principal repayments on our long-term debt due in each of the next five years and thereafter as at December 31, 2019 . (In millions of dollars) 2020 — 2021 1,450 2022 600 2023 1,753 2024 600 Thereafter 11,727 Total long-term debt 16,130 Below is a summary of the future minimum payments for our contractual commitments that are not recognized as liabilities as at December 31, 2019 . Less than After (In millions of dollars) 1 Year 1-3 Years 4-5 Years 5 Years Total Player contracts 1 95 108 45 — 248 Purchase obligations 2 312 215 92 41 660 Program rights 3 620 1,111 1,052 830 3,613 Total commitments 1,027 1,434 1,189 871 4,521 1 Toronto Blue Jays players' salary contracts into which we have entered and are contractually obligated to pay. 2 Contractual obligations under service, product, and wireless device contracts to which we have committed. 3 Agreements into which we have entered to acquire broadcasting rights for programs and films for periods in excess of one year at contract inception. |
Disclosure of maturity analysis for derivative financial liabilities | Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2019 and 2018 . December 31, 2019 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,238 2,238 2,238 — — — Accounts payable and accrued liabilities 3,033 3,033 3,033 — — — Long-term debt 15,967 16,130 — 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 — 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,287 1,248 39 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,286 ) (1,247 ) (39 ) — — Equity derivative instruments — (55 ) (55 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 9,903 — — 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (10,780 ) — — (1,753 ) (9,027 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,622 1,622 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,593 ) (1,593 ) — — — Net carrying amount of derivatives (asset) (1,439 ) 21,550 22,745 5,476 2,475 2,325 12,469 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. December 31, 2018 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,255 2,255 2,255 — — — Accounts payable and accrued liabilities 3,052 3,052 3,052 — — — Long-term debt 14,290 14,404 900 2,350 2,442 8,712 Other long-term financial liabilities 38 38 1 24 5 8 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,341 1,045 296 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,473 ) (1,146 ) (327 ) — — Equity derivative instruments — (92 ) (92 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 6,920 — — 1,392 5,528 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (8,254 ) — — (1,842 ) (6,412 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,560 1,560 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,601 ) (1,601 ) — — — Bond forwards — 87 87 — — — Net carrying amount of derivatives (asset) (1,500 ) 18,135 18,237 6,061 2,343 1,997 7,836 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. |
Summary of net interest payments | Below is a summary of the net interest payments over the life of the long-term debt, including the impact of the associated debt derivatives, as at December 31, 2019 and 2018 . December 31, 2019 Less than 1 year 1 to 3 years 4 to 5 years More than 5 years (In millions of dollars) Net interest payments 735 1,299 1,121 8,763 December 31, 2018 Less than 1 year 1 to 3 years 4 to 5 years More than 5 years (In millions of dollars) Net interest payments 658 1,141 913 5,923 |
Sensitivity analysis for interest rate risk | Below is a sensitivity analysis for significant exposures with respect to our publicly traded investments, expenditure derivatives, short-term borrowings, senior notes, and bank credit facilities as at December 31, 2019 and 2018 with all other variables held constant. It shows how net income and other comprehensive income would have been affected by changes in the relevant risk variables. Net income Other comprehensive income (Change in millions of dollars) 2019 2018 2019 2018 Share price of publicly traded investments $1 change — — 14 14 Expenditure derivatives - change in foreign exchange rate $0.01 change in Cdn$ relative to US$ — — 7 8 Short-term borrowings 1% change in interest rates 17 17 — — |
Net cash payments on debt derivatives and forward contracts | Below is a summary of the net cash (payments) proceeds on debt derivatives. Years ended December 31 (In millions of dollars) 2019 2018 Proceeds on debt derivatives related to US commercial paper 17,056 19,211 Proceeds on debt derivatives related to credit facility borrowings 564 157 Proceeds on debt derivatives related to senior notes — 1,761 Total proceeds on debt derivatives 17,620 21,129 Payments on debt derivatives related to US commercial paper (17,069 ) (19,148 ) Payments on debt derivatives related to credit facility borrowings (561 ) (157 ) Payments on debt derivatives related to senior notes — (1,436 ) Total payments on debt derivatives (17,630 ) (20,741 ) Net (payments) proceeds on settlement of debt derivatives (10 ) 388 |
Changes in fair value of derivative instruments | Below is a summary of the changes in fair value of our derivative instruments for 2019 and 2018 . Year ended December 31, 2019 Debt derivatives (hedged) Debt derivatives (unhedged) Bond forwards Expenditure derivatives Equity derivatives Total instruments (In millions of dollars) Derivative instruments, beginning of year 1,332 41 (87 ) 122 92 1,500 Proceeds received from settlement of derivatives — (17,620 ) — (1,194 ) (15 ) (18,829 ) Payment on derivatives settled — 17,630 111 1,124 — 18,865 Increase (decrease) in fair value of derivatives 80 (80 ) (24 ) (51 ) (22 ) (97 ) Derivative instruments, end of year 1,412 (29 ) — 1 55 1,439 Mark-to-market asset 1,508 — — 16 55 1,579 Mark-to-market liability (96 ) (29 ) — (15 ) — (140 ) Mark-to-market asset (liability) 1,412 (29 ) — 1 55 1,439 Year ended December 31, 2018 Debt derivatives (hedged) Debt derivatives (unhedged) Bond forwards Expenditure derivatives Equity derivatives Total instruments (In millions of dollars) Derivative instruments, beginning of year 1,152 (23 ) (64 ) (39 ) 68 1,094 Proceeds received from settlement of derivatives (1,761 ) (19,368 ) — (1,089 ) (4 ) (22,222 ) Payment on derivatives settled 1,436 19,305 — 1,093 — 21,834 Increase (decrease) in fair value of derivatives 505 127 (23 ) 157 28 794 Derivative instruments, end of year 1,332 41 (87 ) 122 92 1,500 Mark-to-market asset 1,354 41 — 122 92 1,609 Mark-to-market liability (22 ) — (87 ) — — (109 ) Mark-to-market asset (liability) 1,332 41 (87 ) 122 92 1,500 |
Derivative instruments details | During 2019 and 2018 , we entered and settled debt derivatives related to our credit facility borrowings and US CP program as follows: Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional (US$) Exchange rate Notional (Cdn$) Notional (US$) Exchange rate Notional (Cdn$) Credit facilities Debt derivatives entered 420 1.336 561 125 1.257 157 Debt derivatives settled 420 1.343 564 125 1.256 157 Net cash received (paid) 3 (1 ) Commercial paper program Debt derivatives entered 12,897 1.328 17,127 15,262 1.294 19,751 Debt derivatives settled 12,847 1.329 17,069 14,833 1.291 19,148 Net cash (paid) received (13 ) 63 In 2019 and 2018 , we entered into debt derivatives to hedge the foreign currency risk associated with the principal and interest components of the US dollar-denominated senior notes issued during these years (see note 21 ). Below is a summary of the debt derivatives we entered to hedge senior notes issued during 2019 and 2018 . (In millions of dollars, except for coupon and interest rates) US$ Hedging effect Effective date Principal/Notional amount (US$) Maturity date Coupon rate Fixed hedged (Cdn$) interest rate 1 Equivalent (Cdn$) 2019 issuances April 30, 2019 1,250 2049 4.350 % 4.173 % 1,676 November 12, 2019 1,000 2049 3.700 % 3.996 % 1,308 2018 issuances February 8, 2018 750 2048 4.300 % 4.193 % 938 1 Converting from a fixed US$ coupon rate to a weighted average Cdn$ fixed rate. Below is a summary of the expenditure derivatives we entered and settled during 2019 and 2018 to manage foreign exchange risk related to certain forecast expenditures. Years ended December 31 2019 2018 (In millions of dollars, except exchange rates) Notional (US$) Exchange rate Notional (Cdn$) Notional (US$) Exchange rate Notional (Cdn$) Expenditure derivatives entered 810 1.321 1,070 720 1.244 896 Expenditure derivatives settled 900 1.249 1,124 840 1.301 1,093 |
Fair value measurement of assets | Below is a summary of the financial instruments carried at fair value. As at December 31 Carrying value Fair value (Level 1) Fair value (Level 2) (In millions of dollars) 2019 2018 2019 2018 2019 2018 Financial assets Investments, measured at FVTOCI: Investments in publicly traded companies 1,831 1,051 1,831 1,051 — — Held-for-trading: Debt derivatives accounted for as cash flow hedges 1,508 1,354 — — 1,508 1,354 Debt derivatives not accounted for as cash flow hedges — 41 — — — 41 Expenditure derivatives accounted for as cash flow hedges 16 122 — — 16 122 Equity derivatives not accounted for as cash flow hedges 55 92 — — 55 92 Total financial assets 3,410 2,660 1,831 1,051 1,579 1,609 Financial liabilities Held-for-trading: Debt derivatives accounted for as cash flow hedges 96 22 — — 96 22 Debt derivatives not accounted for as hedges 29 — — — 29 — Bond forwards accounted for as cash flow hedges — 87 — — — 87 Expenditure derivatives accounted for as cash flow hedges 15 — — — 15 — Total financial liabilities 140 109 — — 140 109 Below is a summary of the fair value of our long-term debt. As at December 31 (In millions of dollars) 2019 2018 Carrying amount Fair value 1 Carrying amount Fair value 1 Long-term debt (including current portion) 15,967 18,354 14,290 15,110 1 Long-term debt (including current portion) is measured at Level 2 in the three-level fair value hierarchy, based on year-end trading values. |
Fair value measurement of liabilities | Below is a summary of the financial instruments carried at fair value. As at December 31 Carrying value Fair value (Level 1) Fair value (Level 2) (In millions of dollars) 2019 2018 2019 2018 2019 2018 Financial assets Investments, measured at FVTOCI: Investments in publicly traded companies 1,831 1,051 1,831 1,051 — — Held-for-trading: Debt derivatives accounted for as cash flow hedges 1,508 1,354 — — 1,508 1,354 Debt derivatives not accounted for as cash flow hedges — 41 — — — 41 Expenditure derivatives accounted for as cash flow hedges 16 122 — — 16 122 Equity derivatives not accounted for as cash flow hedges 55 92 — — 55 92 Total financial assets 3,410 2,660 1,831 1,051 1,579 1,609 Financial liabilities Held-for-trading: Debt derivatives accounted for as cash flow hedges 96 22 — — 96 22 Debt derivatives not accounted for as hedges 29 — — — 29 — Bond forwards accounted for as cash flow hedges — 87 — — — 87 Expenditure derivatives accounted for as cash flow hedges 15 — — — 15 — Total financial liabilities 140 109 — — 140 109 Below is a summary of the fair value of our long-term debt. As at December 31 (In millions of dollars) 2019 2018 Carrying amount Fair value 1 Carrying amount Fair value 1 Long-term debt (including current portion) 15,967 18,354 14,290 15,110 1 Long-term debt (including current portion) is measured at Level 2 in the three-level fair value hierarchy, based on year-end trading values. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interests in Other Entities [Abstract] | |
Disclosure of investments | As at December 31 (In millions of dollars) 2019 2018 Investments in: Publicly traded companies 1,831 1,051 Private companies 107 145 Investments, measured at FVTOCI 1,938 1,196 Investments, associates and joint ventures 892 938 Total investments 2,830 2,134 |
Disclosure of interests in joint ventures | Below is a summary of financial information pertaining to our significant associates and joint ventures and our portions thereof. As at or years ended December 31 (In millions of dollars) 2019 2018 Current assets 491 489 Long-term assets 3,501 3,303 Current liabilities (906 ) (740 ) Long-term liabilities (1,407 ) (1,258 ) Total net assets 1,679 1,794 Our share of net assets 851 935 Revenue 2,314 1,903 Expenses (2,366 ) (1,902 ) Net (loss) income (52 ) 1 Our share of net (loss) income (24 ) — |
Disclosure of interests in associates | Below is a summary of financial information pertaining to our significant associates and joint ventures and our portions thereof. As at or years ended December 31 (In millions of dollars) 2019 2018 Current assets 491 489 Long-term assets 3,501 3,303 Current liabilities (906 ) (740 ) Long-term liabilities (1,407 ) (1,258 ) Total net assets 1,679 1,794 Our share of net assets 851 935 Revenue 2,314 1,903 Expenses (2,366 ) (1,902 ) Net (loss) income (52 ) 1 Our share of net (loss) income (24 ) — |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Below is a summary of our short-term borrowings as at December 31, 2019 and 2018 . As at December 31 (In millions of dollars) 2019 2018 Accounts receivable securitization program 650 650 US commercial paper program 1,588 1,605 Total short-term borrowings 2,238 2,255 Below is a summary of the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876 ) 1.328 (17,094 ) (14,858 ) 1.295 (19,244 ) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization — 225 Repayment of accounts receivable securitization — (225 ) Net proceeds received from accounts receivable securitization — — Proceeds received from credit facilities 420 1.336 561 — — — Repayment of credit facilities (420 ) 1.343 (564 ) — — — Net repayment of credit facilities (3 ) — Net proceeds received on short-term borrowings 30 508 The tables below summarize the activity relating to our long-term debt for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Notional Exchange Notional (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facility borrowings (US$) — — — 125 1.257 157 Credit facility repayments (US$) — — — (125 ) 1.256 (157 ) Net borrowings under credit facilities — — Senior note issuances (Cdn$) 1,000 — Senior note issuances (US$) 2,250 1.326 2,984 750 1.251 938 Total senior note issuances 3,984 938 Senior note repayments (Cdn$) (1,800 ) — Senior note repayments (US$) — — — (1,400 ) 1.258 (1,761 ) Total senior note repayments (1,800 ) (1,761 ) Net issuance (repayment) of senior notes 2,184 (823 ) Net issuance (repayment) of long-term debt 2,184 (823 ) Years ended December 31 (In millions of dollars) 2019 2018 Long-term debt net of transaction costs, beginning of year 14,290 14,448 Net issuance (repayment) of long-term debt 2,184 (823 ) (Gain) loss on foreign exchange (458 ) 672 Deferred transaction costs incurred (61 ) (18 ) Amortization of deferred transaction costs 12 11 Long-term debt net of transaction costs, end of year 15,967 14,290 As at December 31 (In millions of dollars, except interest rates) Due date Principal amount Interest rate 2019 2018 Senior notes 2019 400 2.800 % — 400 Senior notes 2019 500 5.380 % — 500 Senior notes 2020 900 4.700 % — 900 Senior notes 2021 1,450 5.340 % 1,450 1,450 Senior notes 2022 600 4.000 % 600 600 Senior notes 2023 US 500 3.000 % 649 682 Senior notes 2023 US 850 4.100 % 1,104 1,160 Senior notes 2024 600 4.000 % 600 600 Senior notes 2025 US 700 3.625 % 909 955 Senior notes 2026 US 500 2.900 % 649 682 Senior notes 2029 1,000 3.250 % 1,000 — Senior debentures 1 2032 US 200 8.750 % 260 273 Senior notes 2038 US 350 7.500 % 455 478 Senior notes 2039 500 6.680 % 500 500 Senior notes 2040 800 6.110 % 800 800 Senior notes 2041 400 6.560 % 400 400 Senior notes 2043 US 500 4.500 % 649 682 Senior notes 2043 US 650 5.450 % 844 887 Senior notes 2044 US 1,050 5.000 % 1,365 1,433 Senior notes 2048 US 750 4.300 % 973 1,022 Senior notes 2049 US 1,250 4.350 % 1,624 — Senior notes 2049 US 1,000 3.700 % 1,299 — 16,130 14,404 Deferred transaction costs and discounts (163 ) (114 ) Less current portion — (900 ) Total long-term debt 15,967 13,390 1 Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2019 and 2018 . Below is a summary of the repayment of our senior notes during 2019 and 2018 . There were no debt derivatives associated with the 2019 repayments. The associated debt derivatives for the 2018 repayment were settled at time of repayment. (In millions of dollars) Maturity date Notional amount (US$) Notional amount (Cdn$) 2019 repayments March 2019 — 400 November 2019 — 500 September 2020, repaid November 2019 — 900 Total 2019 repayments — 1,800 2018 repayments August 2018, repaid April 2018 1,400 1,761 Below is a summary of the senior notes that we issued in 2019 and 2018 . (In millions of dollars, except interest rates and discounts) Date issued Principal amount Due date Interest rate Discount/ premium at issuance Total gross proceeds 1 (Cdn$) Transaction costs and discounts 2 (Cdn$) 2019 issuances April 30, 2019 1,000 2029 3.250 % 99.746 % 1,000 7 April 30, 2019 US 1,250 2049 4.350 % 99.667 % 1,676 20 November 12, 2019 US 1,000 2049 3.700 % 98.926 % 1,308 25 2018 issuances February 8, 2018 US 750 2048 4.300 % 99.398 % 938 16 1 Gross proceeds before transaction costs and discounts. 2 Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method. |
Disclosure of detailed information about accounts receivable securitization program | As at December 31 (In millions of dollars) 2019 2018 Trade accounts receivable sold to buyer as security 1,359 1,391 Short-term borrowings from buyer (650 ) (650 ) Overcollateralization 709 741 |
Disclosure of detailed information about commercial paper program | Below is a summary of the activity relating to our US CP program for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) US commercial paper, beginning of year 1,177 1.364 1,605 746 1.253 935 Net proceeds received from US commercial paper 21 1.571 33 404 1.257 508 Discounts on issuance 1 25 1.320 33 27 1.333 36 (Gain) loss on foreign exchange 1 (83 ) 126 US commercial paper, end of year 1,223 1.298 1,588 1,177 1.364 1,605 1 Included in finance costs. |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Disclosure of provisions | (In millions of dollars) Decommissioning Liabilities Other Total December 31, 2018 36 3 39 Adjustments to existing provisions 7 — 7 Amounts used (2 ) — (2 ) December 31, 2019 41 3 44 Current (recorded in "other current liabilities") 7 1 8 Long-term 34 2 36 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Below is a summary of our short-term borrowings as at December 31, 2019 and 2018 . As at December 31 (In millions of dollars) 2019 2018 Accounts receivable securitization program 650 650 US commercial paper program 1,588 1,605 Total short-term borrowings 2,238 2,255 Below is a summary of the activity relating to our short-term borrowings for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 Notional Exchange Notional Notional Exchange Notional (In millions of dollars, except exchange rates) (US$) rate (Cdn$) (US$) rate (Cdn$) Proceeds received from US commercial paper 12,897 1.328 17,127 15,262 1.294 19,752 Repayment of US commercial paper (12,876 ) 1.328 (17,094 ) (14,858 ) 1.295 (19,244 ) Net proceeds received from US commercial paper 33 508 Proceeds received from accounts receivable securitization — 225 Repayment of accounts receivable securitization — (225 ) Net proceeds received from accounts receivable securitization — — Proceeds received from credit facilities 420 1.336 561 — — — Repayment of credit facilities (420 ) 1.343 (564 ) — — — Net repayment of credit facilities (3 ) — Net proceeds received on short-term borrowings 30 508 The tables below summarize the activity relating to our long-term debt for the years ended December 31, 2019 and 2018 . Year ended December 31, 2019 Year ended December 31, 2018 (In millions of dollars, except exchange rates) Notional Exchange Notional Notional Exchange Notional (US$) rate (Cdn$) (US$) rate (Cdn$) Credit facility borrowings (US$) — — — 125 1.257 157 Credit facility repayments (US$) — — — (125 ) 1.256 (157 ) Net borrowings under credit facilities — — Senior note issuances (Cdn$) 1,000 — Senior note issuances (US$) 2,250 1.326 2,984 750 1.251 938 Total senior note issuances 3,984 938 Senior note repayments (Cdn$) (1,800 ) — Senior note repayments (US$) — — — (1,400 ) 1.258 (1,761 ) Total senior note repayments (1,800 ) (1,761 ) Net issuance (repayment) of senior notes 2,184 (823 ) Net issuance (repayment) of long-term debt 2,184 (823 ) Years ended December 31 (In millions of dollars) 2019 2018 Long-term debt net of transaction costs, beginning of year 14,290 14,448 Net issuance (repayment) of long-term debt 2,184 (823 ) (Gain) loss on foreign exchange (458 ) 672 Deferred transaction costs incurred (61 ) (18 ) Amortization of deferred transaction costs 12 11 Long-term debt net of transaction costs, end of year 15,967 14,290 As at December 31 (In millions of dollars, except interest rates) Due date Principal amount Interest rate 2019 2018 Senior notes 2019 400 2.800 % — 400 Senior notes 2019 500 5.380 % — 500 Senior notes 2020 900 4.700 % — 900 Senior notes 2021 1,450 5.340 % 1,450 1,450 Senior notes 2022 600 4.000 % 600 600 Senior notes 2023 US 500 3.000 % 649 682 Senior notes 2023 US 850 4.100 % 1,104 1,160 Senior notes 2024 600 4.000 % 600 600 Senior notes 2025 US 700 3.625 % 909 955 Senior notes 2026 US 500 2.900 % 649 682 Senior notes 2029 1,000 3.250 % 1,000 — Senior debentures 1 2032 US 200 8.750 % 260 273 Senior notes 2038 US 350 7.500 % 455 478 Senior notes 2039 500 6.680 % 500 500 Senior notes 2040 800 6.110 % 800 800 Senior notes 2041 400 6.560 % 400 400 Senior notes 2043 US 500 4.500 % 649 682 Senior notes 2043 US 650 5.450 % 844 887 Senior notes 2044 US 1,050 5.000 % 1,365 1,433 Senior notes 2048 US 750 4.300 % 973 1,022 Senior notes 2049 US 1,250 4.350 % 1,624 — Senior notes 2049 US 1,000 3.700 % 1,299 — 16,130 14,404 Deferred transaction costs and discounts (163 ) (114 ) Less current portion — (900 ) Total long-term debt 15,967 13,390 1 Senior debentures originally issued by Rogers Cable Inc. which are unsecured obligations of RCI and for which RCCI was an unsecured guarantor as at December 31, 2019 and 2018 . Below is a summary of the repayment of our senior notes during 2019 and 2018 . There were no debt derivatives associated with the 2019 repayments. The associated debt derivatives for the 2018 repayment were settled at time of repayment. (In millions of dollars) Maturity date Notional amount (US$) Notional amount (Cdn$) 2019 repayments March 2019 — 400 November 2019 — 500 September 2020, repaid November 2019 — 900 Total 2019 repayments — 1,800 2018 repayments August 2018, repaid April 2018 1,400 1,761 Below is a summary of the senior notes that we issued in 2019 and 2018 . (In millions of dollars, except interest rates and discounts) Date issued Principal amount Due date Interest rate Discount/ premium at issuance Total gross proceeds 1 (Cdn$) Transaction costs and discounts 2 (Cdn$) 2019 issuances April 30, 2019 1,000 2029 3.250 % 99.746 % 1,000 7 April 30, 2019 US 1,250 2049 4.350 % 99.667 % 1,676 20 November 12, 2019 US 1,000 2049 3.700 % 98.926 % 1,308 25 2018 issuances February 8, 2018 US 750 2048 4.300 % 99.398 % 938 16 1 Gross proceeds before transaction costs and discounts. 2 Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the effective interest method. |
Disclosure of maturity analysis for non-derivative financial liabilities | Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2019 and 2018 . December 31, 2019 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,238 2,238 2,238 — — — Accounts payable and accrued liabilities 3,033 3,033 3,033 — — — Long-term debt 15,967 16,130 — 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 — 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,287 1,248 39 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,286 ) (1,247 ) (39 ) — — Equity derivative instruments — (55 ) (55 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 9,903 — — 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (10,780 ) — — (1,753 ) (9,027 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,622 1,622 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,593 ) (1,593 ) — — — Net carrying amount of derivatives (asset) (1,439 ) 21,550 22,745 5,476 2,475 2,325 12,469 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. December 31, 2018 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,255 2,255 2,255 — — — Accounts payable and accrued liabilities 3,052 3,052 3,052 — — — Long-term debt 14,290 14,404 900 2,350 2,442 8,712 Other long-term financial liabilities 38 38 1 24 5 8 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,341 1,045 296 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,473 ) (1,146 ) (327 ) — — Equity derivative instruments — (92 ) (92 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 6,920 — — 1,392 5,528 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (8,254 ) — — (1,842 ) (6,412 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,560 1,560 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,601 ) (1,601 ) — — — Bond forwards — 87 87 — — — Net carrying amount of derivatives (asset) (1,500 ) 18,135 18,237 6,061 2,343 1,997 7,836 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. Below is a summary of the principal repayments on our long-term debt due in each of the next five years and thereafter as at December 31, 2019 . (In millions of dollars) 2020 — 2021 1,450 2022 600 2023 1,753 2024 600 Thereafter 11,727 Total long-term debt 16,130 Below is a summary of the future minimum payments for our contractual commitments that are not recognized as liabilities as at December 31, 2019 . Less than After (In millions of dollars) 1 Year 1-3 Years 4-5 Years 5 Years Total Player contracts 1 95 108 45 — 248 Purchase obligations 2 312 215 92 41 660 Program rights 3 620 1,111 1,052 830 3,613 Total commitments 1,027 1,434 1,189 871 4,521 1 Toronto Blue Jays players' salary contracts into which we have entered and are contractually obligated to pay. 2 Contractual obligations under service, product, and wireless device contracts to which we have committed. 3 Agreements into which we have entered to acquire broadcasting rights for programs and films for periods in excess of one year at contract inception. |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other long-term liabilities | As at December 31 (In millions of dollars) Note 2019 2018 Deferred pension liability 23 465 373 Supplemental executive retirement plan 23 73 67 Stock-based compensation 25 47 66 Other 29 40 Total other long-term liabilities 614 546 |
POST-EMPLOYMENT BENEFITS (Table
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Disclosure of defined benefit plans actuarial assumptions and contributions | Below is a summary of the actual contributions to the plans. Years ended December 31 (In millions of dollars) 2019 2018 Employer contribution 179 148 Employee contribution 36 39 Total contribution 215 187 Principal actuarial assumptions 2019 2018 Weighted average of significant assumptions: Defined benefit obligation Discount rate 3.2 % 3.9 % Rate of compensation increase 1.0% to 4.5%, based on employee age 1.0% to 4.5%, based on employee age Mortality rate CIA Private with CPM B Scale CIA Private with CPM B scale Pension expense Discount rate 3.9 % 3.7 % Rate of compensation increase 1.0% to 4.5%, based on employee age 3.0 % Mortality rate CIA Private with CPM B Scale CIA Private with CPM B scale Below is a summary of the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded plans. As at December 31 (In millions of dollars) Note 2019 2018 Plan assets, at fair value 2,449 1,965 Accrued benefit obligations (2,900 ) (2,330 ) Net deferred pension liability (451 ) (365 ) Consists of: Deferred pension asset 14 8 Deferred pension liability 22 (465 ) (373 ) Net deferred pension liability (451 ) (365 ) |
Disclosure of sensitivity of key assumptions | Sensitivity of key assumptions In the sensitivity analysis shown below, we determine the defined benefit obligation for our funded plans using the same method used to calculate the defined benefit obligation we recognize on the Consolidated Statements of Financial Position. We calculate sensitivity by changing one assumption while holding the others constant. This leads to limitations in the analysis as the actual change in defined benefit obligation will likely be different from that shown in the table, since it is likely that more than one assumption will change at a time, and that some assumptions are correlated. Increase (decrease) in accrued benefit obligation (In millions of dollars) 2019 2018 Discount rate Impact of 0.5% increase (233 ) (196 ) Impact of 0.5% decrease 266 224 Rate of future compensation increase Impact of 0.25% increase 17 16 Impact of 0.25% decrease (17 ) (16 ) Mortality rate Impact of 1 year increase 61 47 Impact of 1 year decrease (64 ) (50 ) |
Disclosure of net defined benefit liability (asset) | Below is a summary of our net pension expense. Net interest cost is included in finance costs; other pension expenses are included in salaries and benefits expense in operating costs on the Consolidated Statements of Income. Years ended December 31 (In millions of dollars) 2019 2018 Plan cost: Current service cost 121 143 Past service recovery (21 ) (43 ) Net interest cost 8 12 Net pension expense 108 112 Administrative expense 4 4 Total pension cost recognized in net income 112 116 Net interest cost, a component of the plan cost above, is included in finance costs and is outlined as follows: Years ended December 31 (In millions of dollars) 2019 2018 Interest income on plan assets (81 ) (73 ) Interest cost on plan obligation 89 85 Net interest cost, recognized in finance costs 8 12 The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows: Years ended December 31 (In millions of dollars) 2019 2018 Return (loss) on plan assets (excluding interest income) 277 (114 ) Change in financial assumptions (401 ) 158 Change in demographic assumptions — (10 ) Effect of experience adjustments (30 ) 20 Remeasurement (loss) gain, recognized in other comprehensive income and equity (154 ) 54 We also provide supplemental unfunded defined benefit pensions to certain executives. Below is a summary of our accrued benefit obligations, pension expense included in employee salaries and benefits, net interest cost, remeasurements, and benefits paid. Years ended December 31 (In millions of dollars) 2019 2018 Accrued benefit obligation, beginning of year 67 66 Pension expense, recognized in employee salaries and benefits expense 2 2 Net interest cost, recognized in finance costs 3 2 Remeasurements, recognized in other comprehensive income 5 1 Benefits paid (4 ) (4 ) Accrued benefit obligation, end of year 73 67 Below is a summary of our pension fund assets. Years ended December 31 (In millions of dollars) 2019 2018 Plan assets, beginning of year 1,965 1,890 Interest income 81 73 Remeasurements, recognized in other comprehensive income and equity 277 (114 ) Contributions by employees 36 39 Contributions by employer 179 148 Benefits paid (86 ) (68 ) Administrative expenses paid from plan assets (3 ) (3 ) Plan assets, end of year 2,449 1,965 Below is a summary of the accrued benefit obligations arising from funded obligations. Years ended December 31 (In millions of dollars) 2019 2018 Accrued benefit obligations, beginning of year 2,330 2,342 Current service cost 121 143 Past service recovery (21 ) (43 ) Interest cost 89 85 Benefits paid (86 ) (68 ) Contributions by employees 36 39 Remeasurements, recognized in other comprehensive income and equity 431 (168 ) Accrued benefit obligations, end of year 2,900 2,330 |
Disclosure of fair value of plan assets | ALLOCATION OF PLAN ASSETS Allocation of plan assets Target asset allocation percentage 2019 2018 Equity securities: Domestic 12.0 % 11.8 % 8% to 18% International 48.1 % 46.7 % 37% to 67% Debt securities 39.5 % 41.2 % 25% to 45% Other - cash 0.4 % 0.3 % 0% to 2% Total 100.0 % 100.0 % Plan assets are comprised mainly of pooled funds that invest in common stocks and bonds that are traded in an active market. Below is a summary of the fair value of the total pension plan assets by major category. As at December 31 (In millions of dollars) 2019 2018 Equity securities 1,472 1,149 Debt securities 967 810 Other - cash 10 6 Total fair value of plan assets 2,449 1,965 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of capital stock | Share class Number of shares authorized for issue Features Voting rights Preferred shares 400,000,000 ● Without par value ● None ● Issuable in series, with rights and terms of each series to be fixed by the Board prior to the issue of any series RCI Class A Voting Shares 112,474,388 ● Without par value ● Each share entitled to 50 votes ● Each share can be converted into one Class B Non-Voting share RCI Class B Non-Voting Shares 1,400,000,000 ● Without par value ● None |
Disclosure of dividends | We declared and paid the following dividends on our outstanding Class A Shares and Class B Non-Voting Shares : Dividend per Date declared Date paid share (dollars) January 24, 2019 April 1, 2019 0.50 April 18, 2019 July 2, 2019 0.50 June 5, 2019 October 1, 2019 0.50 October 23, 2019 January 2, 2020 0.50 2.00 January 25, 2018 April 3, 2018 0.48 April 19, 2018 July 3, 2018 0.48 August 15, 2018 October 3, 2018 0.48 October 19, 2018 January 3, 2019 0.48 1.92 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangements [Abstract] | |
Disclosure of significant measurement estimates to determine fair value of stock-based compensation | The table below shows the weighted average fair value of stock options granted during 2019 and 2018 and the principal assumptions used in applying the Black-Scholes model for non-performance-based options and trinomial option pricing models for performance-based options to determine their fair value at the grant date. Years ended December 31 2019 2018 Weighted average fair value $8.11 $8.42 Risk-free interest rate 1.9 % 1.7 % Dividend yield 2.8 % 3.3 % Volatility of Class B Non-Voting Shares 16.4 % 20.1 % Weighted average expected life 5.5 years 6.2 years Weighted average time to vest n/a 2.5 years Weighted average time to expiry n/a 10.0 years Employee exit rate n/a 4.9 % Suboptimal exercise factor n/a 1.4 Lattice steps n/a 50 |
Disclosure of stock-based compensation expense | Below is a summary of our stock-based compensation expense, which is included in employee salaries and benefits expense. Years ended December 31 (In millions of dollars) 2019 2018 Stock options 1 17 Restricted share units 47 51 Deferred share units 4 30 Equity derivative effect, net of interest receipt 18 (33 ) Total stock-based compensation expense 70 65 |
Disclosure of number and weighted average exercise prices of share options | Below is a summary of the stock option plans, including performance options. Year ended December 31, 2019 Year ended December 31, 2018 (In number of units, except prices) Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding, beginning of year 2,719,612 $53.22 2,637,890 $49.42 Granted 1,179,160 $72.03 850,700 $58.88 Exercised (743,977 ) $46.56 (679,706 ) $45.20 Forfeited — — (89,272 ) $55.94 Outstanding, end of year 3,154,795 $61.82 2,719,612 $53.22 Exercisable, end of year 993,645 $52.38 1,059,590 $46.26 |
Disclosure of range of exercise prices of outstanding share options | Below is a summary of the range of exercise prices, the weighted average exercise price, and the weighted average remaining contractual life as at December 31, 2019 . Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $42.85 - $44.99 153,937 4.82 $44.24 153,937 $44.24 $45.00 - $49.99 506,011 4.67 $48.88 442,257 $48.73 $50.00 - $59.99 910,595 7.76 $58.10 265,564 $57.82 $60.00 - $64.99 415,057 7.72 $62.91 122,459 $62.82 $65.00 - $69.99 129,025 9.38 $66.21 9,428 $68.10 $70.00 - $73.00 1,040,170 8.90 $73.00 — — 3,154,795 7.56 $61.82 993,645 $52.38 |
Disclosure of number and weighted average exercise prices of other equity instruments | Below is a summary of the DSUs outstanding, including performance DSUs. Years ended December 31 (In number of units) 2019 2018 Outstanding, beginning of year 2,004,440 2,327,647 Granted and reinvested dividends 110,003 131,051 Exercised (348,285 ) (334,930 ) Forfeited (24,274 ) (119,328 ) Outstanding, end of year 1,741,884 2,004,440 Below is a summary of the RSUs outstanding, including performance RSUs. Years ended December 31 (In number of units) 2019 2018 Outstanding, beginning of year 2,218,925 1,811,845 Granted and reinvested dividends 1,013,900 1,217,487 Exercised (582,314 ) (597,015 ) Forfeited (177,737 ) (213,392 ) Outstanding, end of year 2,472,774 2,218,925 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | Below is a summary of related party activity for the business transactions described above. (In millions of dollars) Years ended December 31 Outstanding balance as at December 31 2019 2018 2019 2018 Printing and legal services 1 6 13 — — 1 The amounts paid for legal services are nominal. We carried out the following business transactions with our associates and joint arrangements, being primarily MLSE and Glentel. Transactions between us and our subsidiaries have been eliminated on consolidation and are not disclosed in this note. Years ended December 31 (In millions of dollars) 2019 2018 Revenue 69 86 Purchases 212 197 Outstanding balances at year-end are unsecured, interest-free, and settled in cash. As at December 31 (In millions of dollars) 2019 2018 Accounts receivable 86 99 Accounts payable and accrued liabilities 24 20 Compensation expense for key management personnel included in "employee salaries, benefits, and stock-based compensation" was as follows: Years ended December 31 (In millions of dollars) 2019 2018 Salaries and other short-term employee benefits 15 13 Post-employment benefits 2 2 Stock-based compensation 1 20 18 Total compensation 37 33 1 Stock-based compensation does not include the effect of changes in fair value of Class B Non-Voting Shares or equity derivatives. |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Disclosure of maturity analysis for commitments | Below is a summary of the undiscounted contractual maturities of our financial liabilities and the receivable components of our derivatives as at December 31, 2019 and 2018 . December 31, 2019 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,238 2,238 2,238 — — — Accounts payable and accrued liabilities 3,033 3,033 3,033 — — — Long-term debt 15,967 16,130 — 2,050 2,353 11,727 Lease liabilities 1,725 2,220 230 413 326 1,251 Other long-term financial liabilities 26 26 — 12 7 7 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,287 1,248 39 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,286 ) (1,247 ) (39 ) — — Equity derivative instruments — (55 ) (55 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 9,903 — — 1,392 8,511 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (10,780 ) — — (1,753 ) (9,027 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,622 1,622 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,593 ) (1,593 ) — — — Net carrying amount of derivatives (asset) (1,439 ) 21,550 22,745 5,476 2,475 2,325 12,469 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. December 31, 2018 Carrying Contractual Less than 1 to 3 4 to 5 More than (In millions of dollars) amount cash flows 1 year years years 5 years Short-term borrowings 2,255 2,255 2,255 — — — Accounts payable and accrued liabilities 3,052 3,052 3,052 — — — Long-term debt 14,290 14,404 900 2,350 2,442 8,712 Other long-term financial liabilities 38 38 1 24 5 8 Expenditure derivative instruments: Cash outflow (Canadian dollar) — 1,341 1,045 296 — — Cash inflow (Canadian dollar equivalent of US dollar) — (1,473 ) (1,146 ) (327 ) — — Equity derivative instruments — (92 ) (92 ) — — — Debt derivative instruments accounted for as hedges: Cash outflow (Canadian dollar) — 6,920 — — 1,392 5,528 Cash inflow (Canadian dollar equivalent of US dollar) 1 — (8,254 ) — — (1,842 ) (6,412 ) Debt derivative instruments not accounted for as hedges: Cash outflow (Canadian dollar) — 1,560 1,560 — — — Cash inflow (Canadian dollar equivalent of US dollar) 1 — (1,601 ) (1,601 ) — — — Bond forwards — 87 87 — — — Net carrying amount of derivatives (asset) (1,500 ) 18,135 18,237 6,061 2,343 1,997 7,836 1 Represents Canadian dollar equivalent amount of US dollar inflows matched to an equal amount of US dollar maturities in long-term debt for debt derivatives. Below is a summary of the principal repayments on our long-term debt due in each of the next five years and thereafter as at December 31, 2019 . (In millions of dollars) 2020 — 2021 1,450 2022 600 2023 1,753 2024 600 Thereafter 11,727 Total long-term debt 16,130 Below is a summary of the future minimum payments for our contractual commitments that are not recognized as liabilities as at December 31, 2019 . Less than After (In millions of dollars) 1 Year 1-3 Years 4-5 Years 5 Years Total Player contracts 1 95 108 45 — 248 Purchase obligations 2 312 215 92 41 660 Program rights 3 620 1,111 1,052 830 3,613 Total commitments 1,027 1,434 1,189 871 4,521 1 Toronto Blue Jays players' salary contracts into which we have entered and are contractually obligated to pay. 2 Contractual obligations under service, product, and wireless device contracts to which we have committed. 3 Agreements into which we have entered to acquire broadcasting rights for programs and films for periods in excess of one year at contract inception. |
Disclosure of commitments | Below is a summary of our other contractual commitments that are not included in the table above. As at December 31 (In millions of dollars) 2019 Acquisition of property, plant and equipment 200 Acquisition of intangible assets 63 Commitments related to associates and joint ventures 312 Total other commitments 575 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | |
Changes in non-cash operating working capital items and capital expenditures | CHANGE IN NON-CASH OPERATING WORKING CAPITAL ITEMS Years ended December 31 (In millions of dollars) 2019 2018 Accounts receivable (174 ) (133 ) Inventories 7 (31 ) Other current assets (41 ) (6 ) Accounts payable and accrued liabilities 61 103 Contract and other liabilities 9 (47 ) Total change in non-cash operating working capital items (138 ) (114 ) CAPITAL EXPENDITURES Years ended December 31 (In millions of dollars) 2019 2018 Capital expenditures before proceeds on disposition 2,845 2,815 Proceeds on disposition (38 ) (25 ) Capital expenditures 2,807 2,790 |
NATURE OF THE BUSINESS (Details
NATURE OF THE BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Number of reportable segments | 3 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 494 | $ 405 | $ 405 | |
Accounts receivable | 2,304 | 2,236 | 2,236 | |
Inventories | 460 | 466 | 466 | |
Current portion of contract assets | 1,234 | 1,052 | 1,052 | |
Other current assets | 524 | 436 | 459 | |
Current portion of derivative instruments | 101 | 270 | 270 | |
Total current assets | 5,117 | 4,865 | 4,888 | |
Property, plant and equipment | 13,934 | 13,261 | 11,780 | |
Property, plant and equipment | 12,198 | 11,780 | $ 11,143 | |
Intangible assets | 8,905 | 7,205 | 7,205 | |
Investments | 2,830 | 2,134 | 2,134 | |
Derivative instruments | 1,478 | 1,339 | 1,339 | |
Contract assets | 557 | 535 | 535 | |
Other long-term assets | 275 | 132 | 132 | |
Goodwill | 3,923 | 3,905 | 3,905 | |
Total assets | 37,019 | 33,376 | 31,918 | |
Current liabilities: | ||||
Short-term borrowings | 2,238 | 2,255 | 2,255 | |
Accounts payable and accrued liabilities | 3,033 | 2,997 | 3,052 | |
Income tax payable | 48 | 177 | 177 | |
Other current liabilities | 141 | 132 | 132 | |
Contract liabilities | 224 | 233 | 233 | 278 |
Current portion of long-term debt | 0 | 900 | 900 | |
Current portion of derivative instruments | 50 | 87 | 87 | |
Current portion of lease liabilities | 230 | 190 | ||
Total current liabilities | 5,964 | 6,971 | 6,836 | |
Provisions | 36 | 35 | 35 | |
Long-term debt | 15,967 | 13,390 | 13,390 | |
Derivative instruments | 90 | 22 | 22 | |
Lease liabilities | 1,495 | 1,355 | ||
Other long-term liabilities | 614 | 546 | 546 | |
Deferred tax liabilities | 3,437 | 2,901 | 2,910 | |
Total liabilities | 27,603 | 25,220 | 23,739 | |
Shareholders' equity | 9,416 | 8,156 | 8,179 | $ 7,492 |
Total liabilities and shareholders' equity | $ 37,019 | $ 33,376 | 31,918 | |
Total minimum operating lease commitments | 979 | |||
Effect of IFRS 16 transition | ||||
Current assets: | ||||
Property, plant and equipment | 1,481 | |||
Property, plant and equipment | (95) | |||
Current liabilities: | ||||
Shareholders' equity | $ 8,156 | |||
Weighted average discount rate applied to total lease payments on transition | 3.82% | |||
Scenario, Adjustment | Effect of IFRS 16 transition | ||||
Current assets: | ||||
Cash and cash equivalents | $ 0 | |||
Accounts receivable | 0 | |||
Inventories | 0 | |||
Current portion of contract assets | 0 | |||
Other current assets | (23) | |||
Current portion of derivative instruments | 0 | |||
Total current assets | (23) | |||
Property, plant and equipment | 1,481 | |||
Intangible assets | 0 | |||
Investments | 0 | |||
Derivative instruments | 0 | |||
Contract assets | 0 | |||
Other long-term assets | 0 | |||
Goodwill | 0 | |||
Total assets | 1,458 | |||
Current liabilities: | ||||
Short-term borrowings | 0 | |||
Accounts payable and accrued liabilities | (55) | |||
Income tax payable | 0 | |||
Other current liabilities | 0 | |||
Contract liabilities | 0 | |||
Current portion of long-term debt | 0 | |||
Current portion of derivative instruments | 0 | |||
Current portion of lease liabilities | 190 | |||
Total current liabilities | 135 | |||
Provisions | 0 | |||
Long-term debt | 0 | |||
Derivative instruments | 0 | |||
Lease liabilities | 1,355 | |||
Other long-term liabilities | 0 | |||
Deferred tax liabilities | (9) | |||
Total liabilities | 1,481 | |||
Shareholders' equity | (23) | |||
Total liabilities and shareholders' equity | $ 1,458 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019CAD ($)segment | Dec. 31, 2018CAD ($) | Jan. 01, 2019CAD ($) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | segment | 3 | ||
Revenue | $ 15,073 | $ 15,096 | |
Operating costs | 8,861 | 9,113 | |
Adjusted EBITDA | 6,212 | 5,983 | |
Depreciation and amortization | 2,488 | 2,211 | |
Gain on disposition of property, plant and equipment | 0 | (16) | |
Restructuring, acquisition and other | 139 | 210 | |
Finance costs | 840 | 793 | |
Other income | (10) | (32) | |
Income before income tax expense | 2,755 | 2,817 | |
Capital expenditures | 2,807 | 2,790 | |
Goodwill | 3,923 | 3,905 | $ 3,905 |
Total assets | 37,019 | 31,918 | $ 33,376 |
Proceeds on disposition | 38 | 25 | |
Operating segments | Wireless | |||
Disclosure of operating segments [line items] | |||
Revenue | 9,250 | 9,200 | |
Operating costs | 4,905 | 5,110 | |
Adjusted EBITDA | 4,345 | 4,090 | |
Capital expenditures | 1,320 | 1,086 | |
Goodwill | 1,160 | 1,160 | |
Total assets | 20,105 | 16,572 | |
Operating segments | Cable | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,954 | 3,932 | |
Operating costs | 2,035 | 2,058 | |
Adjusted EBITDA | 1,919 | 1,874 | |
Capital expenditures | 1,153 | 1,429 | |
Goodwill | 1,808 | 1,808 | |
Total assets | 7,891 | 7,666 | |
Operating segments | Media | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,072 | 2,168 | |
Operating costs | 1,932 | 1,972 | |
Adjusted EBITDA | 140 | 196 | |
Capital expenditures | 102 | 90 | |
Goodwill | 955 | 937 | |
Total assets | 2,550 | 2,438 | |
Corporate items and intercompany eliminations | |||
Disclosure of operating segments [line items] | |||
Revenue | (203) | (204) | |
Operating costs | (11) | (27) | |
Adjusted EBITDA | (192) | (177) | |
Capital expenditures | 232 | 185 | |
Goodwill | 0 | 0 | |
Total assets | $ 6,473 | $ 5,242 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Expected period of recognition | 3 years |
Maximum | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Expected period of recognition | 5 years |
Wireless | Service revenue | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical payment period | 30 days |
Wireless | Equipment revenue | Maximum | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical payment period | 24 months |
Media | Maximum | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |
Typical payment period | 30 days |
REVENUE - Contract Assets, Cont
REVENUE - Contract Assets, Contract Liabilities, Deferred Commission Cost Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance, beginning of year | $ 1,587 | $ 1,233 |
Additions from new contracts with customers, net of terminations and renewals / Additions to deferred commission cost assets | 1,653 | 1,572 |
Amortization of contract assets to accounts receivable / Amortization recognized on deferred commission cost assets | (1,449) | (1,218) |
Balance, end of year | 1,791 | 1,587 |
Balance, beginning of year | 233 | 278 |
Revenue deferred in previous year and recognized as revenue in current year | (222) | (268) |
Net additions from contracts with customers | 213 | 223 |
Balance, end of year | 224 | 233 |
Deferred commission costs assets | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | ||
Balance, beginning of year | 296 | 278 |
Additions from new contracts with customers, net of terminations and renewals / Additions to deferred commission cost assets | 329 | 340 |
Amortization of contract assets to accounts receivable / Amortization recognized on deferred commission cost assets | (320) | (322) |
Balance, end of year | $ 305 | $ 296 |
REVENUE - Unsatisfied Portions
REVENUE - Unsatisfied Portions of Performance Obligations (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Telecommunications service | $ 3,696 |
2020 | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Telecommunications service | 2,350 |
2021 | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Telecommunications service | 983 |
2022 | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Telecommunications service | 186 |
Thereafter | |
Disclosure of transaction price allocated to remaining performance obligations [line items] | |
Telecommunications service | $ 177 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 15,073 | $ 15,096 |
Operating segments | Wireless | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 9,250 | 9,200 |
Operating segments | Wireless | Service revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 7,156 | 7,091 |
Operating segments | Wireless | Equipment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 2,094 | 2,109 |
Operating segments | Cable | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,954 | 3,932 |
Operating segments | Cable | Internet | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 2,259 | 2,114 |
Operating segments | Cable | Television | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,430 | 1,442 |
Operating segments | Cable | Phone | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 251 | 363 |
Operating segments | Cable | Service revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,940 | 3,919 |
Operating segments | Cable | Equipment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 14 | 13 |
Operating segments | Total Media | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 2,072 | 2,168 |
Corporate items and intercompany eliminations | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ (203) | $ (204) |
OPERATING COSTS (Details)
OPERATING COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Costs [Abstract] | ||
Cost of equipment sales | $ 2,254 | $ 2,284 |
Merchandise for resale | 242 | 231 |
Other external purchases | 4,360 | 4,509 |
Employee salaries, benefits, and stock-based compensation | 2,005 | 2,089 |
Total operating costs | $ 8,861 | $ 9,113 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 5 years |
Buildings | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 40 years |
Cable and wireless network | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 3 years |
Cable and wireless network | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 40 years |
Computer equipment and software | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 4 years |
Computer equipment and software | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 10 years |
Customer premise equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 3 years |
Customer premise equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 6 years |
Equipment and vehicles | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 3 years |
Equipment and vehicles | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life | 20 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Cost, Depreciation, Net Carrying Amount (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ 12,198 | $ 11,780 | $ 11,143 | |
Right-of-use assets | 1,736 | 0 | ||
Total | 13,934 | $ 13,261 | 11,780 | |
Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 32,666 | 31,402 | 29,645 | |
Right-of-use assets | 1,911 | |||
Total | 34,577 | |||
Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (20,468) | (19,622) | (18,502) | |
Right-of-use assets | (175) | |||
Total | (20,643) | |||
Land and buildings | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 721 | 697 | 693 | |
Land and buildings | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,182 | 1,125 | 1,090 | |
Land and buildings | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (461) | (428) | (397) | |
Cable and wireless network | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 7,964 | 7,474 | 7,046 | |
Cable and wireless network | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 21,778 | 21,024 | 20,252 | |
Cable and wireless network | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (13,814) | (13,550) | (13,206) | |
Computer equipment and software | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 2,154 | 2,209 | 2,189 | |
Computer equipment and software | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 5,903 | 5,514 | 4,996 | |
Computer equipment and software | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (3,749) | (3,305) | (2,807) | |
Customer premise equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 576 | 629 | 475 | |
Customer premise equipment | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,963 | 1,908 | 1,565 | |
Customer premise equipment | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (1,387) | (1,279) | (1,090) | |
Leasehold improvements | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 315 | 289 | 276 | |
Leasehold improvements | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 596 | 539 | 496 | |
Leasehold improvements | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | (281) | (250) | (220) | |
Equipment and vehicles | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 468 | 482 | 464 | |
Equipment and vehicles | Cost | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | 1,244 | 1,292 | 1,246 | |
Equipment and vehicles | Accumulated depreciation | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment | $ (776) | $ (810) | $ (782) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Changes in Net Carrying Amounts of Property, Plant and Equipment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | $ 11,780 | $ 11,143 |
Additions | 2,845 | 2,815 |
Depreciation | (2,297) | (2,174) |
Disposals and other | (35) | (4) |
Property, plant and equipment | 12,198 | 11,780 |
Right-of-use assets (note 8) | 0 | |
Additions | 335 | |
Depreciation | (175) | |
Disposals and other | 0 | |
Right-of-use assets (note 8) | 1,736 | 0 |
Total property, plant and equipment | 11,780 | |
Additions | 3,180 | |
Depreciation | (2,472) | |
Disposals and other | (35) | |
Total property, plant and equipment | 13,934 | 11,780 |
Proceeds on disposition | 38 | 25 |
Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 697 | 693 |
Additions | 57 | 40 |
Depreciation | (34) | (32) |
Disposals and other | 1 | (4) |
Property, plant and equipment | 721 | 697 |
Cable and wireless network | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 7,474 | 7,046 |
Additions | 1,739 | 1,556 |
Depreciation | (1,157) | (1,128) |
Disposals and other | 3 | 0 |
Property, plant and equipment | 7,964 | 7,474 |
Computer equipment and software | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 2,209 | 2,189 |
Additions | 644 | 653 |
Depreciation | (706) | (633) |
Disposals and other | 7 | 0 |
Property, plant and equipment | 2,154 | 2,209 |
Customer premise equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 629 | 475 |
Additions | 236 | 423 |
Depreciation | (292) | (269) |
Disposals and other | 3 | 0 |
Property, plant and equipment | 576 | 629 |
Leasehold improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 289 | 276 |
Additions | 60 | 44 |
Depreciation | (33) | (31) |
Disposals and other | (1) | 0 |
Property, plant and equipment | 315 | 289 |
Equipment and vehicles | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 482 | 464 |
Additions | 109 | 99 |
Depreciation | (75) | (81) |
Disposals and other | (48) | 0 |
Property, plant and equipment | 468 | 482 |
Effect of IFRS 16 transition | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (95) | |
Property, plant and equipment | (95) | |
Right-of-use assets (note 8) | 1,576 | |
Right-of-use assets (note 8) | 1,576 | |
Total property, plant and equipment | 1,481 | |
Total property, plant and equipment | 1,481 | |
Effect of IFRS 16 transition | Land and buildings | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 0 | |
Property, plant and equipment | 0 | |
Effect of IFRS 16 transition | Cable and wireless network | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | (95) | |
Property, plant and equipment | (95) | |
Effect of IFRS 16 transition | Computer equipment and software | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 0 | |
Property, plant and equipment | 0 | |
Effect of IFRS 16 transition | Customer premise equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 0 | |
Property, plant and equipment | 0 | |
Effect of IFRS 16 transition | Leasehold improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | 0 | |
Property, plant and equipment | 0 | |
Effect of IFRS 16 transition | Equipment and vehicles | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment | $ 0 | |
Property, plant and equipment | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 12,198 | $ 11,780 | $ 11,143 |
Property, plant and equipment, weighted average capitalised interest rate | 3.90% | 3.90% | |
Disposals, property, plant and equipment | $ 38 | $ 9 | |
Proceeds on disposition | 38 | 25 | |
Gain on disposition of property, plant and equipment | 0 | 16 | |
Adjustment to cost and accumulated depreciation | 1,159 | 943 | |
Construction in progress (not yet in service) | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 1,320 | $ 1,339 |
LEASES (Details)
LEASES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Lessee, Lease, Description1 [Line Items] | |||
Variable lease payments | $ 22 | ||
Rent expense | $ 228 | ||
Right-of-use assets securing lease liabilities | 114 | ||
Lease Liability Activity [Roll Forward] | |||
Lease liabilities, beginning of year | 1,545 | ||
Net additions | 335 | ||
Interest expense on lease liabilities | 61 | ||
Interest payments on lease liabilities | (49) | ||
Principal payments of lease liabilities | 167 | ||
Lease liabilities, end of year | 1,725 | $ 1,545 | |
Current liability | 230 | $ 190 | |
Long-term liability | $ 1,495 | $ 1,355 | |
Minimum | |||
Lessee, Lease, Description1 [Line Items] | |||
Non-cancellable contract periods for leases, typical range | 5 years | ||
Maximum | |||
Lessee, Lease, Description1 [Line Items] | |||
Non-cancellable contract periods for leases, typical range | 15 years |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Finite useful lives (Details) - Customer relationships | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life | 3 years |
Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life | 10 years |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Explanatory information about intangible assets and goodwill (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | $ 12,828 | $ 11,110 | $ 11,149 |
Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 15,092 | 13,339 | 13,347 |
Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (1,925) | (1,890) | (1,859) |
Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (339) | (339) | (339) |
Customer relationships | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 33 | 47 | 84 |
Customer relationships | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 1,611 | 1,609 | 1,609 |
Customer relationships | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (1,578) | (1,562) | (1,525) |
Customer relationships | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Acquired program rights | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 171 | 188 | 194 |
Acquired program rights | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 253 | 251 | 263 |
Acquired program rights | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (77) | (58) | (64) |
Acquired program rights | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (5) | (5) | (5) |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 3,923 | 3,905 | 3,905 |
Goodwill | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 4,144 | 4,126 | 4,126 |
Goodwill | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Goodwill | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (221) | (221) | (221) |
Total intangible assets | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 8,905 | 7,205 | 7,244 |
Total intangible assets | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 10,948 | 9,213 | 9,221 |
Total intangible assets | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (1,925) | (1,890) | (1,859) |
Total intangible assets | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (118) | (118) | (118) |
Spectrum licences | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 8,331 | 6,600 | 6,600 |
Spectrum licences | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 8,331 | 6,600 | 6,600 |
Spectrum licences | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Spectrum licences | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Broadcast licences | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 234 | 234 | 230 |
Broadcast licences | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 333 | 333 | 329 |
Broadcast licences | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Broadcast licences | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (99) | (99) | (99) |
Brand names | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 136 | 136 | 136 |
Brand names | Cost prior to impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | 420 | 420 | 420 |
Brand names | Accumulated amortization | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | (270) | (270) | (270) |
Brand names | Accumulated impairment losses | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets and goodwill | $ (14) | $ (14) | $ (14) |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Changes in net carrying amounts of intangible assets and goodwill (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | $ 11,110 | $ 11,149 |
Net additions | 1,811 | 58 |
Amortization | (93) | (95) |
Other | (2) | |
Net carrying amount | 12,828 | 11,110 |
Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 47 | 84 |
Net additions | 2 | 0 |
Amortization | (16) | (37) |
Other | 0 | |
Net carrying amount | 33 | 47 |
Intangible assets excluding goodwill and acquired program rights | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 7,017 | 7,050 |
Net additions | 1,733 | 4 |
Amortization | (16) | (37) |
Other | 0 | |
Net carrying amount | 8,734 | 7,017 |
Acquired program rights | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 188 | 194 |
Net additions | 60 | 54 |
Amortization | (77) | (58) |
Other | (2) | |
Net carrying amount | 171 | 188 |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 3,905 | 3,905 |
Net additions | 18 | 0 |
Amortization | 0 | 0 |
Other | 0 | |
Net carrying amount | 3,923 | 3,905 |
Total intangible assets | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 7,205 | 7,244 |
Net additions | 1,793 | 58 |
Amortization | (93) | (95) |
Other | (2) | |
Net carrying amount | 8,905 | 7,205 |
Spectrum licences | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 6,600 | 6,600 |
Net additions | 1,731 | 0 |
Amortization | 0 | 0 |
Other | 0 | |
Net carrying amount | 8,331 | 6,600 |
Broadcast licences | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 234 | 230 |
Net additions | 0 | 4 |
Amortization | 0 | 0 |
Other | 0 | |
Net carrying amount | 234 | 234 |
Brand names | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Net carrying amount | 136 | 136 |
Net additions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | |
Net carrying amount | $ 136 | $ 136 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Overview of methods and key assumptions used to determine recoverable amounts for CGUs (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of information for cash-generating units [line items] | |||
Carrying value of goodwill | $ 3,923 | $ 3,905 | $ 3,905 |
Operating segments | Wireless | |||
Disclosure of information for cash-generating units [line items] | |||
Carrying value of goodwill | 1,160 | 1,160 | |
Carrying value of indefinite-life intangible assets | $ 8,465 | ||
Period of projected cash flows (years) | 5 years | ||
Terminal growth rates (%) | 0.50% | ||
Pre-tax discount rates (%) | 8.40% | ||
Operating segments | Cable | |||
Disclosure of information for cash-generating units [line items] | |||
Carrying value of goodwill | $ 1,808 | 1,808 | |
Carrying value of indefinite-life intangible assets | $ 0 | ||
Period of projected cash flows (years) | 5 years | ||
Terminal growth rates (%) | 1.50% | ||
Pre-tax discount rates (%) | 7.80% | ||
Operating segments | Media | |||
Disclosure of information for cash-generating units [line items] | |||
Carrying value of goodwill | $ 955 | $ 937 | |
Carrying value of indefinite-life intangible assets | $ 235 | ||
Period of projected cash flows (years) | 5 years | ||
Terminal growth rates (%) | 2.00% | ||
Pre-tax discount rates (%) | 9.80% |
RESTRUCTURING, ACQUISITION AN_2
RESTRUCTURING, ACQUISITION AND OTHER (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring, Acquisition, And Other [Abstract] | ||
Restructuring, acquisition and other | $ 139 | $ 210 |
FINANCE COSTS (Details)
FINANCE COSTS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Finance Costs [Line Items] | ||
Interest on borrowings | $ 746 | $ 709 |
Interest on post-employment benefits liability | 11 | 14 |
Loss on repayment of long-term debt | 19 | 28 |
(Gain) loss on foreign exchange | (79) | 136 |
Change in fair value of derivative instruments | 80 | (95) |
Capitalized interest | (19) | (20) |
Other | 21 | 21 |
Finance costs before interest on lease liabilities | 779 | |
Interest expense on lease liabilities | 61 | |
Total finance costs | $ 840 | 793 |
Bond forwards | ||
Schedule of Finance Costs [Line Items] | ||
Change in fair value of derivative instruments | $ 21 |
OTHER (INCOME) EXPENSE (Details
OTHER (INCOME) EXPENSE (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | ||
Losses from associates and joint ventures | $ 25 | $ 0 |
Other investment income | (35) | (32) |
Total other income | $ (10) | $ (32) |
INCOME TAXES - Components of ta
INCOME TAXES - Components of tax expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Total current tax expense | $ 269 | $ 483 |
Origination of temporary differences | 466 | 275 |
Revaluation of deferred tax balances due to legislative changes | (23) | 0 |
Total deferred tax expense | 443 | 275 |
Total income tax expense | $ 712 | $ 758 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income tax expense applying statutory tax and effective tax rates (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Statutory income tax rate | 26.70% | 26.70% |
Income before income tax expense | $ 2,755 | $ 2,817 |
Computed income tax expense | 736 | 752 |
Increase (decrease) in income tax expense resulting from: | ||
Non-deductible stock-based compensation | 0 | 5 |
Non-deductible portion of equity losses | 7 | 1 |
Income tax adjustment, legislative tax change | (23) | 0 |
Non-taxable portion of capital gains | (2) | (9) |
Other | (6) | 9 |
Total income tax expense | $ 712 | $ 758 |
Effective income tax rate | 25.80% | 26.90% |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income taxes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | $ (2,910) | $ (2,621) |
Effect of IFRS 16 adoption (see note 2) | 9 | |
(Expense) recovery in net income | (443) | (275) |
(Expense) recovery in other comprehensive income | (93) | (14) |
Deferred tax assets (liabilities), end of period | (3,437) | (2,910) |
Property, plant and equipment and inventory | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | (1,145) | (1,060) |
Effect of IFRS 16 adoption (see note 2) | 0 | |
(Expense) recovery in net income | (221) | (85) |
(Expense) recovery in other comprehensive income | 0 | 0 |
Deferred tax assets (liabilities), end of period | (1,366) | (1,145) |
Goodwill and other intangibles | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | (1,192) | (1,075) |
Effect of IFRS 16 adoption (see note 2) | 0 | |
(Expense) recovery in net income | (126) | (117) |
(Expense) recovery in other comprehensive income | 0 | 0 |
Deferred tax assets (liabilities), end of period | (1,318) | (1,192) |
Investments | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | (66) | (126) |
Effect of IFRS 16 adoption (see note 2) | 0 | |
(Expense) recovery in net income | 2 | (3) |
(Expense) recovery in other comprehensive income | (104) | 63 |
Deferred tax assets (liabilities), end of period | (168) | (66) |
Non-capital loss carryforwards | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | 29 | 18 |
Effect of IFRS 16 adoption (see note 2) | 0 | |
(Expense) recovery in net income | (17) | 11 |
(Expense) recovery in other comprehensive income | 0 | 0 |
Deferred tax assets (liabilities), end of period | 12 | 29 |
Contract and deferred commission cost assets | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | (515) | (418) |
Effect of IFRS 16 adoption (see note 2) | 0 | |
(Expense) recovery in net income | (55) | (97) |
(Expense) recovery in other comprehensive income | 0 | 0 |
Deferred tax assets (liabilities), end of period | (570) | (515) |
Other | ||
Movement of net deferred tax assets and liabilities | ||
Deferred tax assets (liabilities), beginning of period | (21) | 40 |
Effect of IFRS 16 adoption (see note 2) | 9 | |
(Expense) recovery in net income | (26) | 16 |
(Expense) recovery in other comprehensive income | 11 | (77) |
Deferred tax assets (liabilities), end of period | $ (27) | $ (21) |
INCOME TAXES - Unrecognized def
INCOME TAXES - Unrecognized deferred tax assets (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total unrecognized temporary differences | $ 149 | $ 191 |
Realized and accrued capital losses in Canada that can be applied against future capital gains | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total unrecognized temporary differences | 41 | 98 |
Tax losses in foreign jurisdictions that expire between 2023 and 2038 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total unrecognized temporary differences | 67 | 68 |
Deductible temporary differences in foreign jurisdictions | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total unrecognized temporary differences | $ 41 | $ 25 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | ||
Numerator (basic) - Net income for the year | $ 2,043 | $ 2,059 |
Denominator - Number of shares (in millions): | ||
Weighted average number of shares outstanding - basic (in shares) | 512,000,000 | 515,000,000 |
Employee stock options and restricted share units (in shares) | 1,000,000 | 1,000,000 |
Weighted average number of shares outstanding - diluted (in shares) | 513,000,000 | 516,000,000 |
Earnings per share: | ||
Basic (in dollars per share) | $ 3.99 | $ 4 |
Diluted (in dollars per share) | $ 3.97 | $ 3.99 |
Dilutive effect of securities on earnings per share | $ 6 | $ 2 |
Antidilutive securities (in shares) | 1,077,875 | 37,715 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Total accounts receivable | $ 2,304 | $ 2,236 | $ 2,236 |
Gross carrying amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Customer accounts receivable | 1,579 | 1,529 | |
Other accounts receivable | 785 | 762 | |
Allowance for doubtful accounts | |||
Disclosure of detailed information about financial instruments [line items] | |||
Total accounts receivable | $ 60 | $ 55 |
ACCOUNTS RECEIVABLE - Narrative
ACCOUNTS RECEIVABLE - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of reclassification of financial assets [line items] | |||
Reclassification from accounts receivable | $ (2,304) | $ (2,236) | $ (2,236) |
Reclassification to other current assets | $ 524 | 436 | 459 |
Restatement Adjustment | |||
Disclosure of reclassification of financial assets [line items] | |||
Reclassification from accounts receivable | 23 | 23 | |
Reclassification to other current assets | $ 23 | $ 23 |
INVENTORIES (Details)
INVENTORIES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Inventories [Abstract] | |||
Wireless devices and accessories | $ 380 | $ 399 | |
Other finished goods and merchandise | 80 | 67 | |
Total inventories | 460 | 466 | $ 466 |
Cost of equipment sales and merchandise for resale | $ 2,496 | $ 2,515 |
FINANCIAL RISK MANAGEMENT AND_3
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Credit Risk (Details) - Accounts receivable - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 1,519 | $ 1,474 |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance, beginning of year | 55 | 61 |
Allowance for doubtful accounts expense | 238 | 201 |
Net use | (233) | (207) |
Recoveries | 17 | |
Balance, end of year | 60 | 55 |
Less than 30 days past billing date | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,053 | 970 |
30-60 days past billing date | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 274 | 300 |
61-90 days past billing date | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 90 | 100 |
Greater than 90 days past billing date | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 102 | 104 |
Gross carrying amount | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 464 | $ 477 |
FINANCIAL RISK MANAGEMENT AND_4
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Liquidity Risk (Details) - CAD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings | $ 2,238,000,000 | $ 2,255,000,000 | $ 2,255,000,000 | |
Accounts payable and accrued liabilities | 3,033,000,000 | $ 2,997,000,000 | 3,052,000,000 | |
Long-term debt | 15,967,000,000 | 14,290,000,000 | $ 14,448,000,000 | |
Lease liabilities | 1,725,000,000 | 1,545,000,000 | ||
Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Net interest payments | 735,000,000 | 658,000,000 | ||
1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Net interest payments | 1,299,000,000 | 1,141,000,000 | ||
4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Net interest payments | 1,121,000,000 | 913,000,000 | ||
After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Net interest payments | 8,763,000,000 | 5,923,000,000 | ||
Expenditure derivatives | Cash flow hedges | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 39,000,000 | |||
Debt derivatives | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 29,000,000 | 23,000,000 | ||
Bond forwards | Cash flow hedges | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | 87,000,000 | $ 64,000,000 | |
Liquidity risk | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings | 2,238,000,000 | 2,255,000,000 | ||
Short-term borrowings, undiscounted cash flows | 2,238,000,000 | 2,255,000,000 | ||
Accounts payable and accrued liabilities | 3,033,000,000 | 3,052,000,000 | ||
Accounts payable and accrued liabilities, undiscounted cash flows | 3,033,000,000 | 3,052,000,000 | ||
Long-term debt | 15,967,000,000 | 14,290,000,000 | ||
Long-term debt, undiscounted cash flows | 16,130,000,000 | 14,404,000,000 | ||
Lease liabilities | 1,725,000,000 | |||
Lease liabilities, undiscounted cash flows | 2,220,000,000 | |||
Other long-term financial liabilities | 26,000,000 | 38,000,000 | ||
Other long-term financial liabilities, undiscounted cash flows | 26,000,000 | 38,000,000 | ||
Net carrying amount of derivatives (asset) | (1,439,000,000) | (1,500,000,000) | ||
Financial liabilities | 21,550,000,000 | 18,135,000,000 | ||
Financial liabilities, undiscounted cash flows | 22,745,000,000 | 18,237,000,000 | ||
Liquidity risk | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings, undiscounted cash flows | 2,238,000,000 | 2,255,000,000 | ||
Accounts payable and accrued liabilities, undiscounted cash flows | 3,033,000,000 | 3,052,000,000 | ||
Long-term debt, undiscounted cash flows | 0 | 900,000,000 | ||
Lease liabilities, undiscounted cash flows | 230,000,000 | |||
Other long-term financial liabilities, undiscounted cash flows | 0 | 1,000,000 | ||
Financial liabilities, undiscounted cash flows | 5,476,000,000 | 6,061,000,000 | ||
Liquidity risk | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings, undiscounted cash flows | 0 | 0 | ||
Accounts payable and accrued liabilities, undiscounted cash flows | 0 | 0 | ||
Long-term debt, undiscounted cash flows | 2,050,000,000 | 2,350,000,000 | ||
Lease liabilities, undiscounted cash flows | 413,000,000 | |||
Other long-term financial liabilities, undiscounted cash flows | 12,000,000 | 24,000,000 | ||
Financial liabilities, undiscounted cash flows | 2,475,000,000 | 2,343,000,000 | ||
Liquidity risk | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings, undiscounted cash flows | 0 | 0 | ||
Accounts payable and accrued liabilities, undiscounted cash flows | 0 | 0 | ||
Long-term debt, undiscounted cash flows | 2,353,000,000 | 2,442,000,000 | ||
Lease liabilities, undiscounted cash flows | 326,000,000 | |||
Other long-term financial liabilities, undiscounted cash flows | 7,000,000 | 5,000,000 | ||
Financial liabilities, undiscounted cash flows | 2,325,000,000 | 1,997,000,000 | ||
Liquidity risk | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Short-term borrowings, undiscounted cash flows | 0 | 0 | ||
Accounts payable and accrued liabilities, undiscounted cash flows | 0 | 0 | ||
Long-term debt, undiscounted cash flows | 11,727,000,000 | 8,712,000,000 | ||
Lease liabilities, undiscounted cash flows | 1,251,000,000 | |||
Other long-term financial liabilities, undiscounted cash flows | 7,000,000 | 8,000,000 | ||
Financial liabilities, undiscounted cash flows | 12,469,000,000 | 7,836,000,000 | ||
Liquidity risk | Expenditure derivatives | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | 0 | ||
Derivative financial liabilities, undiscounted cash flows | 1,287,000,000 | 1,341,000,000 | ||
Net carrying amount of derivatives (asset) | (1,286,000,000) | (1,473,000,000) | ||
Liquidity risk | Expenditure derivatives | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 1,248,000,000 | 1,045,000,000 | ||
Net carrying amount of derivatives (asset) | (1,247,000,000) | (1,146,000,000) | ||
Liquidity risk | Expenditure derivatives | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 39,000,000 | 296,000,000 | ||
Net carrying amount of derivatives (asset) | (39,000,000) | (327,000,000) | ||
Liquidity risk | Expenditure derivatives | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Expenditure derivatives | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Equity derivatives | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | 0 | ||
Derivative financial liabilities, undiscounted cash flows | (55,000,000) | (92,000,000) | ||
Liquidity risk | Equity derivatives | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | (55,000,000) | (92,000,000) | ||
Liquidity risk | Equity derivatives | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Liquidity risk | Equity derivatives | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Liquidity risk | Equity derivatives | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Liquidity risk | Debt derivatives | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | 0 | ||
Derivative financial liabilities, undiscounted cash flows | 1,622,000,000 | 1,560,000,000 | ||
Net carrying amount of derivatives (asset) | (1,593,000,000) | (1,601,000,000) | ||
Liquidity risk | Debt derivatives | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 1,622,000,000 | 1,560,000,000 | ||
Net carrying amount of derivatives (asset) | (1,593,000,000) | (1,601,000,000) | ||
Liquidity risk | Debt derivatives | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Debt derivatives | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Debt derivatives | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Debt derivatives | Cash flow hedges | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | 0 | ||
Derivative financial liabilities, undiscounted cash flows | 9,903,000,000 | 6,920,000,000 | ||
Net carrying amount of derivatives (asset) | (10,780,000,000) | (8,254,000,000) | ||
Liquidity risk | Debt derivatives | Cash flow hedges | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Debt derivatives | Cash flow hedges | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | 0 | ||
Net carrying amount of derivatives (asset) | 0 | 0 | ||
Liquidity risk | Debt derivatives | Cash flow hedges | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 1,392,000,000 | 1,392,000,000 | ||
Net carrying amount of derivatives (asset) | (1,753,000,000) | (1,842,000,000) | ||
Liquidity risk | Debt derivatives | Cash flow hedges | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 8,511,000,000 | 5,528,000,000 | ||
Net carrying amount of derivatives (asset) | $ (9,027,000,000) | (6,412,000,000) | ||
Liquidity risk | Bond forwards | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities | 0 | |||
Derivative financial liabilities, undiscounted cash flows | 87,000,000 | |||
Liquidity risk | Bond forwards | Less than 1 year | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 87,000,000 | |||
Liquidity risk | Bond forwards | 1-3 Years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | |||
Liquidity risk | Bond forwards | 4-5 years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | 0 | |||
Liquidity risk | Bond forwards | After five years | ||||
Disclosure Of Maturity Analysis For Derivative And Non-derivative Financial Liabilities [Line Items] | ||||
Derivative financial liabilities, undiscounted cash flows | $ 0 |
FINANCIAL RISK MANAGEMENT AND_5
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Interest Rate Risk (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity price risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Share price of publicly traded investments, change | $ 1 | |
Impact on net income | 0 | $ 0 |
Impact on other comprehensive income | $ 14,000,000 | 14,000,000 |
Currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Expenditure derivatives - change in foreign exchange rate, change in Cdn% relative to US$ (in dollars per share) | $ 0.01 | |
Impact on net income | $ 0 | 0 |
Impact on other comprehensive income | $ 7,000,000 | 8,000,000 |
Interest rate risk | Short-term borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Short-term borrowings, percent change in interest rates | 1.00% | |
Impact on net income | $ 17,000,000 | 17,000,000 |
Impact on other comprehensive income | $ 0 | $ 0 |
Fixed interest rate | Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percent of borrowings | 87.20% | 85.30% |
FINANCIAL RISK MANAGEMENT AND_6
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Derivative Instruments - Net Asset (Liability) Position (Details) $ in Millions | Dec. 31, 2019CAD ($)$ / $ | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018CAD ($)$ / $ | Dec. 31, 2018USD ($)$ / $ | Dec. 31, 2017CAD ($) |
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | $ 1,439,000,000 | $ 1,500,000,000 | $ 1,094,000,000 | ||
Debt derivatives | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount, assets | $ 1,564,000,000 | $ 1,178 | |||
Exchange rate, assets | $ / $ | 1.3276 | 1.3276 | |||
Derivative financial assets | 1,383,000,000 | $ 1,373,000,000 | |||
Notional amount, liabilities | $ 1,618,000,000 | $ 1,223 | |||
Exchange rate, liabilities | $ / $ | 1.3227 | 1.3227 | |||
Derivative financial liabilities | $ (29,000,000) | (23,000,000) | |||
Debt derivatives | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount, assets | $ 6,587,000,000 | $ 5,800 | $ 6,184,000,000 | $ 5,500 | |
Exchange rate, assets | $ / $ | 1.1357 | 1.1357 | 1.1243 | 1.1243 | |
Derivative financial assets | $ 1,412,000,000 | $ 1,332,000,000 | 1,152,000,000 | ||
Notional amount, liabilities | $ 3,409,000,000 | $ 2,570 | $ 736,000,000 | $ 550 | |
Exchange rate, liabilities | $ / $ | 1.3263 | 1.3263 | 1.3389 | 1.3389 | |
Bond forwards | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount, liabilities | $ 900,000,000 | ||||
Derivative financial liabilities | $ 0 | (87,000,000) | (64,000,000) | ||
Expenditure derivatives | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount, assets | $ 335,000,000 | $ 270 | $ 1,341,000,000 | $ 1,080 | |
Exchange rate, assets | $ / $ | 1.2391 | 1.2391 | 1.2413 | 1.2413 | |
Derivative financial assets | $ 1,000,000 | $ 122,000,000 | |||
Notional amount, liabilities | $ 952,000,000 | $ 720 | |||
Exchange rate, liabilities | $ / $ | 1.3228 | 1.3228 | |||
Derivative financial liabilities | (39,000,000) | ||||
Equity derivatives | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Notional amount, assets | $ 223,000,000 | 258,000,000 | |||
Derivative financial assets | 55,000,000 | 92,000,000 | $ 68,000,000 | ||
Before Offset Amount | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | 1,579,000,000 | 1,609,000,000 | |||
Derivative financial liabilities | (140,000,000) | (109,000,000) | |||
Before Offset Amount | Debt derivatives | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | 0 | 41,000,000 | |||
Derivative financial liabilities | (29,000,000) | ||||
Before Offset Amount | Debt derivatives | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | 1,508,000,000 | 1,354,000,000 | |||
Derivative financial liabilities | (96,000,000) | (22,000,000) | |||
Before Offset Amount | Bond forwards | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial liabilities | 0 | (87,000,000) | |||
Before Offset Amount | Expenditure derivatives | Cash flow hedges | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | 16,000,000 | 122,000,000 | |||
Derivative financial liabilities | (15,000,000) | ||||
Before Offset Amount | Equity derivatives | |||||
Disclosure of detailed information about hedging instruments [line items] | |||||
Derivative financial assets | $ 55,000,000 | $ 92,000,000 |
FINANCIAL RISK MANAGEMENT AND_7
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Net Cash Payments on Debt Derivatives (Details) - CAD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about hedging instruments [line items] | |||
Total payments on debt derivatives | $ (18,865) | $ (21,834) | |
Net (payments) proceeds on settlement of debt derivatives | (121) | 388 | |
Debt derivatives | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Total proceeds on debt derivatives | $ 326 | 17,620 | 21,129 |
Total payments on debt derivatives | (17,630) | (20,741) | |
Net (payments) proceeds on settlement of debt derivatives | (10) | 388 | |
Debt derivatives | US commercial paper | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Total proceeds on debt derivatives | 17,056 | 19,211 | |
Total payments on debt derivatives | (17,069) | (19,148) | |
Debt derivatives | Credit facilities | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Total proceeds on debt derivatives | 564 | 157 | |
Total payments on debt derivatives | (561) | (157) | |
Debt derivatives | Senior notes | |||
Disclosure of detailed information about hedging instruments [line items] | |||
Total proceeds on debt derivatives | 0 | 1,761 | |
Total payments on debt derivatives | $ 0 | $ (1,436) |
FINANCIAL RISK MANAGEMENT AND_8
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Changes in Fair Value of Derivatives (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | $ 1,500,000,000 | $ 1,094,000,000 |
Proceeds received from settlement of derivatives | (18,829,000,000) | (22,222,000,000) |
Payment on derivatives settled | 18,865,000,000 | 21,834,000,000 |
Increase (decrease) in fair value of derivatives | (97,000,000) | 794,000,000 |
Derivative financial assets, end of year | 1,439,000,000 | 1,500,000,000 |
Debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 1,373,000,000 | |
Derivative financial liabilities, beginning of year | (23,000,000) | |
Proceeds received from settlement of derivatives | (17,620,000,000) | (19,368,000,000) |
Payment on derivatives settled | 17,630,000,000 | 19,305,000,000 |
Increase (decrease) in fair value of derivatives | (80,000,000) | 127,000,000 |
Derivative financial assets, end of year | 1,383,000,000 | 1,373,000,000 |
Derivative financial liabilities, end of year | (29,000,000) | |
Equity derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 92,000,000 | 68,000,000 |
Proceeds received from settlement of derivatives | (15,000,000) | (4,000,000) |
Payment on derivatives settled | 0 | 0 |
Increase (decrease) in fair value of derivatives | (22,000,000) | 28,000,000 |
Derivative financial assets, end of year | 55,000,000 | 92,000,000 |
Cash flow hedges | Debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 1,332,000,000 | 1,152,000,000 |
Proceeds received from settlement of derivatives | 0 | (1,761,000,000) |
Payment on derivatives settled | 0 | 1,436,000,000 |
Increase (decrease) in fair value of derivatives | 80,000,000 | 505,000,000 |
Derivative financial assets, end of year | 1,412,000,000 | 1,332,000,000 |
Cash flow hedges | Bond forwards | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, beginning of year | (87,000,000) | (64,000,000) |
Proceeds received from settlement of derivatives | 0 | 0 |
Payment on derivatives settled | 111,000,000 | 0 |
Increase (decrease) in fair value of derivatives | (24,000,000) | (23,000,000) |
Derivative financial liabilities, end of year | 0 | (87,000,000) |
Cash flow hedges | Expenditure derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 122,000,000 | |
Derivative financial liabilities, beginning of year | (39,000,000) | |
Proceeds received from settlement of derivatives | (1,194,000,000) | (1,089,000,000) |
Payment on derivatives settled | 1,124,000,000 | 1,093,000,000 |
Increase (decrease) in fair value of derivatives | (51,000,000) | 157,000,000 |
Derivative financial assets, end of year | 1,000,000 | 122,000,000 |
Before Offset Amount | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 1,609,000,000 | |
Derivative financial liabilities, beginning of year | (109,000,000) | |
Derivative financial assets, end of year | 1,579,000,000 | 1,609,000,000 |
Derivative financial liabilities, end of year | (140,000,000) | (109,000,000) |
Before Offset Amount | Debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 41,000,000 | |
Derivative financial assets, end of year | 0 | 41,000,000 |
Derivative financial liabilities, end of year | (29,000,000) | |
Before Offset Amount | Equity derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 92,000,000 | |
Derivative financial assets, end of year | 55,000,000 | 92,000,000 |
Before Offset Amount | Cash flow hedges | Debt derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 1,354,000,000 | |
Derivative financial liabilities, beginning of year | (22,000,000) | |
Derivative financial assets, end of year | 1,508,000,000 | 1,354,000,000 |
Derivative financial liabilities, end of year | (96,000,000) | (22,000,000) |
Before Offset Amount | Cash flow hedges | Bond forwards | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, beginning of year | (87,000,000) | |
Derivative financial liabilities, end of year | 0 | (87,000,000) |
Before Offset Amount | Cash flow hedges | Expenditure derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial assets, beginning of year | 122,000,000 | |
Derivative financial assets, end of year | 16,000,000 | $ 122,000,000 |
Derivative financial liabilities, end of year | $ (15,000,000) |
FINANCIAL RISK MANAGEMENT AND_9
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Balance Sheet Classification (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||||
Current asset | $ 101 | $ 270 | $ 270 | |
Long-term asset | 1,478 | 1,339 | 1,339 | |
Derivative financial assets | 1,439 | 1,500 | $ 1,094 | |
Current liability | (50) | (87) | (87) | |
Long-term liability | (90) | $ (22) | (22) | |
Before Offset Amount | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current asset | 101 | 270 | ||
Long-term asset | 1,478 | 1,339 | ||
Derivative financial assets | 1,579 | 1,609 | ||
Current liability | (50) | (87) | ||
Long-term liability | (90) | (22) | ||
Derivative financial liabilities | $ (140) | $ (109) |
FINANCIAL RISK MANAGEMENT AN_10
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Details of Derivative Instruments (Details) shares in Millions | Nov. 12, 2019CAD ($) | Apr. 30, 2019CAD ($) | Feb. 08, 2018CAD ($) | Dec. 31, 2019CAD ($)$ / shares$ / $shares | Dec. 31, 2019USD ($)$ / $shares | Dec. 31, 2018CAD ($)$ / shares$ / $shares | Dec. 31, 2018USD ($)$ / $shares | Dec. 31, 2019USD ($)$ / shares | Nov. 12, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 01, 2019CAD ($) | Dec. 31, 2018USD ($)$ / shares | Feb. 08, 2018USD ($) | Dec. 31, 2017CAD ($) |
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Increase (decrease) to net income related to hedge ineffectiveness | $ 0 | $ (10,000,000) | ||||||||||||
Net cash received (paid) | (121,000,000) | 388,000,000 | ||||||||||||
Loss reclassified from hedging reserve | 80,000,000 | (95,000,000) | ||||||||||||
Payments to settle derivative | 18,865,000,000 | 21,834,000,000 | ||||||||||||
Stock-based compensation expense (recovery) | 70,000,000 | 65,000,000 | ||||||||||||
Fair value of derivative assets | 101,000,000 | 270,000,000 | $ 270,000,000 | |||||||||||
Derivative financial assets outstanding | 1,439,000,000 | 1,500,000,000 | $ 1,094,000,000 | |||||||||||
Equity derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Stock-based compensation expense (recovery) | $ 18,000,000 | (33,000,000) | ||||||||||||
Senior Notes Due 2049 - 4.350% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,250,000,000 | |||||||||||||
Coupon rate | 4.35% | 4.35% | ||||||||||||
Senior Notes Due 2049 - 4.350% | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,250,000,000 | |||||||||||||
Coupon rate | 4.35% | 4.35% | ||||||||||||
Senior Notes Due 2049 - 3.700% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,000,000,000 | |||||||||||||
Coupon rate | 3.70% | |||||||||||||
Hedging effect, net proceeds received from issuances | $ 1,308,000,000 | |||||||||||||
Senior Notes Due 2049 - 3.700% | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,000,000,000 | |||||||||||||
Coupon rate | 3.70% | 3.70% | ||||||||||||
Senior Notes Due 2048 | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 750,000,000 | |||||||||||||
Coupon rate | 4.30% | |||||||||||||
Senior Notes Due 2048 | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 750,000,000 | |||||||||||||
Coupon rate | 4.30% | 4.30% | ||||||||||||
Senior Notes Due 2029 | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,000,000,000 | |||||||||||||
Coupon rate | 3.25% | 3.25% | ||||||||||||
Hedging effect, net proceeds received from issuances | $ 1,000,000,000 | |||||||||||||
Senior Notes Due 2029 | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,000,000,000 | |||||||||||||
Coupon rate | 3.25% | 3.25% | ||||||||||||
Debt derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount of outstanding bond forwards | $ 1,618,000,000 | $ 1,223,000,000 | ||||||||||||
Payments to settle derivative | 17,630,000,000 | 19,305,000,000 | ||||||||||||
Outstanding bond forwards | 29,000,000 | 23,000,000 | ||||||||||||
Derivative financial assets outstanding | 1,383,000,000 | 1,373,000,000 | ||||||||||||
Debt derivatives | Credit facilities | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Debt derivatives entered, notional | $ 561,000,000 | $ 420,000,000 | $ 157,000,000 | $ 125,000,000 | ||||||||||
Debt derivatives entered, exchange rate | $ / $ | 1.336 | 1.336 | 1.257 | 1.257 | ||||||||||
Debt derivatives settled, notional amount | $ 564,000,000 | $ 420,000,000 | $ 157,000,000 | $ 125,000,000 | ||||||||||
Debt derivatives settled, exchange rate | $ / $ | 1.343 | 1.343 | 1.256 | 1.256 | ||||||||||
Net cash received (paid) | $ 3,000,000 | $ (1,000,000) | ||||||||||||
Debt derivatives | US commercial paper | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Debt derivatives entered, notional | $ 17,127,000,000 | $ 12,897,000,000 | $ 19,751,000,000 | $ 15,262,000,000 | ||||||||||
Debt derivatives entered, exchange rate | $ / $ | 1.328 | 1.328 | 1.294 | 1.294 | ||||||||||
Debt derivatives settled, notional amount | $ 17,069,000,000 | $ 12,847,000,000 | $ 19,148,000,000 | $ 14,833,000,000 | ||||||||||
Debt derivatives settled, exchange rate | $ / $ | 1.329 | 1.329 | 1.291 | 1.291 | ||||||||||
Net cash received (paid) | $ (13,000,000) | $ 63,000,000 | ||||||||||||
Debt derivatives | Senior Notes Due 2049 - 4.350% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Hedging effect, net proceeds received from issuances | $ 1,676,000,000 | |||||||||||||
Debt derivatives | Senior Notes Due 2049 - 4.350% | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Coupon rate | 4.173% | 4.173% | ||||||||||||
Debt derivatives | Senior Notes Due 2049 - 3.700% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Coupon rate | 3.996% | |||||||||||||
Hedging effect, net proceeds received from issuances | $ 1,308,000,000 | |||||||||||||
Debt derivatives | Senior Notes Due 2048 | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 750,000,000 | |||||||||||||
Hedging effect, net proceeds received from issuances | $ 938,000,000 | $ 938,000,000 | ||||||||||||
Debt derivatives | Senior Notes Due 2048 | Fixed interest rate | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Coupon rate | 4.193% | |||||||||||||
Bond forwards | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Percent of derivatives designated as hedges | 100.00% | 100.00% | ||||||||||||
Loss reclassified from hedging reserve | $ 21,000,000 | |||||||||||||
Bond forwards | Senior Notes Due 2049 - 4.350% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | 1,250,000,000 | |||||||||||||
Bond forwards | Senior Notes Due 2029 | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 1,000,000,000 | |||||||||||||
Expenditure derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Percent of derivatives designated as hedges | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||
Debt derivatives entered, notional | $ 1,070,000,000 | $ 810,000,000 | $ 896,000,000 | $ 720,000,000 | ||||||||||
Debt derivatives entered, exchange rate | $ / $ | 1.321 | 1.321 | 1.244 | 1.244 | ||||||||||
Debt derivatives settled, notional amount | $ 1,124,000,000 | $ 900,000,000 | $ 1,093,000,000 | $ 840,000,000 | ||||||||||
Debt derivatives settled, exchange rate | $ / $ | 1.249 | 1.249 | 1.301 | 1.301 | ||||||||||
Equity derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Net cash received (paid) | $ 16,000,000 | $ 4,000,000 | ||||||||||||
Payments to settle derivative | $ 0 | $ 0 | ||||||||||||
Weighted average price of hedging instrument | $ / shares | 71.66 | 61.15 | 71.66 | 61.15 | ||||||||||
Number of derivatives settled (in shares) | shares | 0.7 | 0.7 | 0.4 | 0.4 | ||||||||||
Fair value of derivative assets | $ 55,000,000 | $ 92,000,000 | ||||||||||||
Derivative financial assets outstanding | $ 55,000,000 | $ 92,000,000 | 68,000,000 | |||||||||||
Equity derivatives | Class B Non-Voting Shares | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Weighted average price of hedging instrument | $ / shares | 51.76 | 51.54 | 51.76 | 51.54 | ||||||||||
Derivative financial assets outstanding | $ 4,300,000 | $ 5,000,000 | ||||||||||||
Equity derivatives | Less than 1 year | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Weighted average price of hedging instrument | $ / shares | 50.37 | 50.37 | ||||||||||||
Cash flow hedges | Debt derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | $ 8,400,000,000 | $ 6,100,000,000 | ||||||||||||
Notional amount of outstanding bond forwards | $ 3,409,000,000 | 736,000,000 | 2,570,000,000 | 550,000,000 | ||||||||||
Payments to settle derivative | 0 | 1,436,000,000 | ||||||||||||
Derivative financial assets outstanding | 1,412,000,000 | 1,332,000,000 | 1,152,000,000 | |||||||||||
Cash flow hedges | Bond forwards | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount of outstanding bond forwards | 900,000,000 | |||||||||||||
Payments to settle derivative | 111,000,000 | 0 | ||||||||||||
Outstanding bond forwards | 0 | 87,000,000 | 64,000,000 | |||||||||||
Cash flow hedges | Bond forwards | Senior Notes Due 2049 - 4.350% | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount of outstanding bond forwards | 400,000,000 | |||||||||||||
Payments to settle derivative | 57,000,000 | |||||||||||||
Cash flow hedges | Bond forwards | Senior Notes Due 2029 | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount of outstanding bond forwards | 500,000,000 | |||||||||||||
Payments to settle derivative | 54,000,000 | |||||||||||||
Cash flow hedges | Expenditure derivatives | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Notional amount | 990,000,000 | $ 1,080,000,000 | ||||||||||||
Notional amount of outstanding bond forwards | 952,000,000 | $ 720,000,000 | ||||||||||||
Payments to settle derivative | $ 1,124,000,000 | $ 1,093,000,000 | ||||||||||||
Outstanding bond forwards | $ 39,000,000 | |||||||||||||
Average foreign exchange rate | $ / $ | 1.300 | 1.300 | 1.241 | 1.241 | ||||||||||
Derivative financial assets outstanding | $ 1,000,000 | $ 122,000,000 | ||||||||||||
Cash flow hedges | Expenditure derivatives | Less than 1 year | ||||||||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||||||||
Average foreign exchange rate | $ / $ | 1.30 | 1.30 |
FINANCIAL RISK MANAGEMENT AN_11
FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Financial Instruments at Fair Value (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | |||
Investments in publicly traded companies | $ 1,831 | $ 1,051 | |
Derivative financial assets | 1,439 | 1,500 | $ 1,094 |
Total financial assets | 3,410 | 2,660 | |
Total financial liabilities | 140 | 109 | |
Long-term debt (including current portion) | 15,967 | 14,290 | 14,448 |
Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,383 | 1,373 | |
Equity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 55 | 92 | 68 |
Cash flow hedges | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,412 | 1,332 | $ 1,152 |
Cash flow hedges | Expenditure derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1 | 122 | |
Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term debt (including current portion) | 18,354 | 15,110 | |
Fair value (Level 1) | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments in publicly traded companies | 1,831 | 1,051 | |
Total financial assets | 1,831 | 1,051 | |
Total financial liabilities | 0 | 0 | |
Fair value (Level 1) | Fair value | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 0 | |
Derivative financial liabilities | 0 | 0 | |
Fair value (Level 1) | Fair value | Equity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 0 | |
Fair value (Level 1) | Fair value | Cash flow hedges | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 0 | |
Derivative financial liabilities | 0 | 0 | |
Fair value (Level 1) | Fair value | Cash flow hedges | Bond forwards | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial liabilities | 0 | 0 | |
Fair value (Level 1) | Fair value | Cash flow hedges | Expenditure derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 0 | |
Derivative financial liabilities | 0 | 0 | |
Fair value (Level 2) | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments in publicly traded companies | 0 | 0 | |
Total financial assets | 1,579 | 1,609 | |
Total financial liabilities | 140 | 109 | |
Fair value (Level 2) | Fair value | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 41 | |
Derivative financial liabilities | 29 | 0 | |
Fair value (Level 2) | Fair value | Equity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 55 | 92 | |
Fair value (Level 2) | Fair value | Cash flow hedges | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,508 | 1,354 | |
Derivative financial liabilities | 96 | 22 | |
Fair value (Level 2) | Fair value | Cash flow hedges | Bond forwards | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial liabilities | 0 | 87 | |
Fair value (Level 2) | Fair value | Cash flow hedges | Expenditure derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 16 | 122 | |
Derivative financial liabilities | 15 | 0 | |
Before Offset Amount | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,579 | 1,609 | |
Before Offset Amount | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 0 | 41 | |
Derivative financial liabilities | 29 | 0 | |
Before Offset Amount | Equity derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 55 | 92 | |
Before Offset Amount | Cash flow hedges | Debt derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,508 | 1,354 | |
Derivative financial liabilities | 96 | 22 | |
Before Offset Amount | Cash flow hedges | Bond forwards | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial liabilities | 0 | 87 | |
Before Offset Amount | Cash flow hedges | Expenditure derivatives | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 16 | 122 | |
Derivative financial liabilities | $ 15 | $ 0 |
INVESTMENTS - Investment Types
INVESTMENTS - Investment Types (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Interests in Other Entities [Abstract] | |||
Investments in publicly traded companies | $ 1,831 | $ 1,051 | |
Investments in Private companies | 107 | 145 | |
Investments, measured at FVTOCI | 1,938 | 1,196 | |
Investments, associates and joint ventures | 892 | 938 | |
Total investments | $ 2,830 | $ 2,134 | $ 2,134 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interests in Other Entities [Abstract] | ||
Realized losses | $ 0 | $ 0 |
Unrealized gains (losses) | $ 780,000,000 | $ (414,000,000) |
Maple Leaf Sports and Entertainment Limited (MLSE) | ||
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest | 37.50% | |
Glentel | ||
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest | 50.00% | |
Parent Company and BCE, Inc. | Maple Leaf Sports and Entertainment Limited (MLSE) | ||
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest | 75.00% | |
BCE Inc. | Glentel | ||
Disclosure of joint ventures [line items] | ||
Proportion of ownership interest | 50.00% |
INVESTMENTS - Associates and Jo
INVESTMENTS - Associates and Joint Venture Investment Impact (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Disclosure Of Associates And Joint Ventures [Line Items] | |||
Current assets | $ 5,117 | $ 4,888 | $ 4,865 |
Current liabilities | (5,964) | (6,836) | $ (6,971) |
Net (loss) income | 2,043 | 2,059 | |
Associates | Joint ventures | |||
Disclosure Of Associates And Joint Ventures [Line Items] | |||
Current assets | 491 | 489 | |
Long-term assets | 3,501 | 3,303 | |
Current liabilities | (906) | (740) | |
Long-term liabilities | (1,407) | (1,258) | |
Total net assets | 1,679 | 1,794 | |
Our share of net assets | 851 | 935 | |
Revenue | 2,314 | 1,903 | |
Expenses | (2,366) | (1,902) | |
Net (loss) income | (52) | 1 | |
Our share of net (loss) income | $ (24) | $ 0 |
SHORT-TERM BORROWINGS - Short-t
SHORT-TERM BORROWINGS - Short-term Borrowings (Details) $ in Millions, $ in Millions | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Total short-term borrowings | $ 2,238 | $ 2,255 | $ 2,255 | ||||
Accounts receivable securitization program | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total short-term borrowings | 650 | 650 | |||||
US commercial paper program | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Total short-term borrowings | $ 1,588 | $ 1,223 | $ 1,605 | $ 1,177 | $ 935 | $ 746 |
SHORT-TERM BORROWINGS - Proceed
SHORT-TERM BORROWINGS - Proceeds/Repayments From Borrowing Programs (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Net proceeds received on short-term borrowings | $ 30 | $ 508 | ||
US commercial paper | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Proceeds received from short-term borrowings | $ 17,127 | $ 12,897 | $ 19,752 | $ 15,262 |
Exchange rate on proceeds received from short-term borrowings | 1.328 | 1.328 | 1.294 | 1.294 |
Repayments of short-term borrowings | $ (17,094) | $ (12,876) | $ (19,244) | $ (14,858) |
Exchange rate on repayments of short-term borrowings | 1.328 | 1.328 | 1.295 | 1.295 |
Net proceeds received on short-term borrowings | $ 33 | $ 21 | $ 508 | $ 404 |
Accounts receivable securitization program | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Proceeds received from short-term borrowings | 0 | 225 | ||
Repayments of short-term borrowings | 0 | (225) | ||
Net proceeds received on short-term borrowings | 0 | 0 | ||
Credit facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Proceeds received from short-term borrowings | $ 561 | $ 420 | $ 0 | $ 0 |
Exchange rate on proceeds received from short-term borrowings | 1.336 | 1.336 | 0 | 0 |
Repayments of short-term borrowings | $ (564) | $ (420) | $ 0 | $ 0 |
Exchange rate on repayments of short-term borrowings | 1.343 | 1.343 | 0 | 0 |
Net proceeds received on short-term borrowings | $ (3) | $ 0 |
SHORT-TERM BORROWINGS - Account
SHORT-TERM BORROWINGS - Accounts Receivable Securitization (Details) - CAD ($) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||
Short-term borrowings from buyer | $ (2,238,000,000) | $ (2,255,000,000) | $ (2,255,000,000) |
Accounts receivable securitization program | |||
Disclosure of detailed information about borrowings [line items] | |||
Trade receivables, maximum commitment | 1,050,000,000 | 1,050,000,000 | |
Trade accounts receivable sold to buyer as security | 1,359,000,000 | 1,391,000,000 | |
Short-term borrowings from buyer | (650,000,000) | (650,000,000) | |
Overcollateralization | $ 709,000,000 | $ 741,000,000 |
SHORT-TERM BORROWINGS - Movemen
SHORT-TERM BORROWINGS - Movement in Borrowing Programs (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019CAD ($)$ / $ | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2018CAD ($)$ / $ | Dec. 31, 2018USD ($)$ / $ | |
Disclosure of detailed information about borrowings [line items] | ||||
Short-term borrowings, beginning balance | $ 2,255 | |||
Net proceeds received from short-term borrowings | 30 | $ 508 | ||
(Gain) loss on foreign exchange | (79) | 136 | ||
Short-term borrowings, ending balance | 2,238 | 2,255 | ||
Accounts receivable securitization program | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term borrowings, beginning balance | 650 | |||
Net proceeds received from short-term borrowings | 0 | 0 | ||
Short-term borrowings, ending balance | 650 | 650 | ||
US commercial paper | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Short-term borrowings, beginning balance | $ 1,605 | $ 1,177 | $ 935 | $ 746 |
Exchange rate on short-term borrowings | $ / $ | 1.364 | 1.364 | 1.253 | 1.253 |
Net proceeds received from short-term borrowings | $ 33 | $ 21 | $ 508 | $ 404 |
Exchange rate on proceeds received from short-term borrowings, net | $ / $ | 1.571 | 1.571 | 1.257 | 1.257 |
Discount on issuance | $ 33 | $ 25 | $ 36 | $ 27 |
Exchange rate on discounts on issuance of short-term borrowings | $ / $ | 1.320 | 1.320 | 1.333 | 1.333 |
(Gain) loss on foreign exchange | $ (83) | $ 126 | ||
Short-term borrowings, ending balance | $ 1,588 | $ 1,223 | $ 1,605 | $ 1,177 |
Exchange rate on short-term borrowings | $ / $ | 1.298 | 1.298 | 1.364 | 1.364 |
SHORT-TERM BORROWINGS - Narrati
SHORT-TERM BORROWINGS - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
US commercial paper | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum aggregate principal allowed to issue | $ 1,500,000,000 | ||||
Proceeds received from short-term borrowings | $ 17,127,000,000 | $ 12,897,000,000 | $ 19,752,000,000 | $ 15,262,000,000 | |
Repayments of short-term borrowings | $ 17,094,000,000 | $ 12,876,000,000 | 19,244,000,000 | 14,858,000,000 | |
US commercial paper | Minimum | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maturity term | 1 day | 1 day | |||
US commercial paper | Maximum | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maturity term | 397 days | 397 days | |||
Non-Revolving Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Maximum borrowing capacity | $ 2,900,000,000 | $ 2,200,000,000 | |||
Proceeds received from short-term borrowings | 561,000,000 | $ 420,000,000 | 0 | 0 | |
Repayments of short-term borrowings | $ 564,000,000 | $ 420,000,000 | $ 0 | $ 0 |
PROVISIONS (Details)
PROVISIONS (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in other provisions [abstract] | |||
Balance | $ 39 | ||
Adjustments to existing provisions | 7 | ||
Amounts used | (2) | ||
Balance | 44 | ||
Current (recorded in other current liabilities) | 141 | $ 132 | $ 132 |
Long-term | 36 | $ 35 | $ 35 |
Other current liabilities | |||
Reconciliation of changes in other provisions [abstract] | |||
Current (recorded in other current liabilities) | 8 | ||
Decommissioning Liabilities | |||
Reconciliation of changes in other provisions [abstract] | |||
Balance | 36 | ||
Adjustments to existing provisions | 7 | ||
Amounts used | (2) | ||
Balance | 41 | ||
Long-term | 34 | ||
Decommissioning Liabilities | Other current liabilities | |||
Reconciliation of changes in other provisions [abstract] | |||
Current (recorded in other current liabilities) | 7 | ||
Other | |||
Reconciliation of changes in other provisions [abstract] | |||
Balance | 3 | ||
Adjustments to existing provisions | 0 | ||
Amounts used | 0 | ||
Balance | 3 | ||
Long-term | 2 | ||
Other | Other current liabilities | |||
Reconciliation of changes in other provisions [abstract] | |||
Current (recorded in other current liabilities) | $ 1 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-term Debt (Details) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019CAD ($) | Nov. 12, 2019USD ($) | Apr. 30, 2019CAD ($) | Apr. 30, 2019USD ($) | Jan. 01, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Feb. 08, 2018USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 15,967,000,000 | $ 13,390,000,000 | $ 13,390,000,000 | |||||||
Deferred transaction costs and discounts | (163,000,000) | (114,000,000) | ||||||||
Less current portion | 0 | $ (900,000,000) | (900,000,000) | |||||||
Senior Notes Due 2019 - 2.800% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 400,000,000 | |||||||||
Interest rate | 2.80% | 2.80% | ||||||||
Senior Notes Due 2019 - 5.380% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate | 5.38% | 5.38% | ||||||||
Senior Notes Due 2020 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 900,000,000 | |||||||||
Senior Notes Due 2020 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 900,000,000 | |||||||||
Interest rate | 4.70% | 4.70% | 4.70% | |||||||
Senior Notes Due 2021 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,450,000,000 | |||||||||
Interest rate | 5.34% | 5.34% | ||||||||
Senior Notes Due 2022 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 600,000,000 | |||||||||
Interest rate | 4.00% | 4.00% | ||||||||
Senior Notes Due 2023 - 3.000% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate | 3.00% | 3.00% | ||||||||
Senior Notes Due 2023 - 4.100% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 850,000,000 | |||||||||
Interest rate | 4.10% | 4.10% | ||||||||
Senior Notes Due 2024 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 600,000,000 | |||||||||
Interest rate | 4.00% | 4.00% | ||||||||
Senior Notes Due 2025 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 700,000,000 | |||||||||
Interest rate | 3.625% | 3.625% | ||||||||
Senior Notes Due 2026 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate | 2.90% | 2.90% | ||||||||
Senior Notes Due 2029 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 3.25% | 3.25% | ||||||||
Senior Notes Due 2029 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 3.25% | 3.25% | ||||||||
Senior Debentures Due 2032 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 200,000,000 | |||||||||
Interest rate | 8.75% | 8.75% | ||||||||
Senior Notes Due 2038 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 350,000,000 | |||||||||
Interest rate | 7.50% | 7.50% | ||||||||
Senior Notes Due 2039 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate | 6.68% | 6.68% | ||||||||
Senior Notes Due 2040 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 800,000,000 | |||||||||
Interest rate | 6.11% | 6.11% | ||||||||
Senior Notes Due 2041 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 400,000,000 | |||||||||
Interest rate | 6.56% | 6.56% | ||||||||
Senior Notes Due 2043 - 4.500% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate | 4.50% | 4.50% | ||||||||
Senior Notes Due 2043 - 5.450% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 650,000,000 | |||||||||
Interest rate | 5.45% | 5.45% | ||||||||
Senior Notes Due 2044 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,050,000,000 | |||||||||
Interest rate | 5.00% | 5.00% | ||||||||
Senior Notes Due 2048 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 750,000,000 | |||||||||
Interest rate | 4.30% | |||||||||
Senior Notes Due 2048 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 750,000,000 | |||||||||
Interest rate | 4.30% | 4.30% | ||||||||
Senior Notes Due 2049 - 4.350% | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,250,000,000 | |||||||||
Interest rate | 4.35% | 4.35% | ||||||||
Senior Notes Due 2049 - 4.350% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,250,000,000 | |||||||||
Interest rate | 4.35% | 4.35% | ||||||||
Senior Notes Due 2049 - 3.700% | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 3.70% | |||||||||
Senior Notes Due 2049 - 3.700% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,000,000,000 | |||||||||
Interest rate | 3.70% | 3.70% | ||||||||
Gross carrying amount | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 16,130,000,000 | 14,404,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2019 - 2.800% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 0 | 400,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2019 - 5.380% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 0 | 500,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2020 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 0 | 900,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2021 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 1,450,000,000 | 1,450,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2022 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 600,000,000 | 600,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2023 - 3.000% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 649,000,000 | $ 682,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2023 - 4.100% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 1,104,000,000 | 1,160,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2024 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 600,000,000 | 600,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2025 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 909,000,000 | 955,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2026 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 649,000,000 | 682,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2029 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 1,000,000,000 | 0 | ||||||||
Gross carrying amount | Senior Debentures Due 2032 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 260,000,000 | 273,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2038 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 455,000,000 | 478,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2039 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 500,000,000 | 500,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2040 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 800,000,000 | 800,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2041 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2043 - 4.500% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 649,000,000 | 682,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2043 - 5.450% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 844,000,000 | 887,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2044 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 1,365,000,000 | 1,433,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2048 | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 973,000,000 | 1,022,000,000 | ||||||||
Gross carrying amount | Senior Notes Due 2049 - 4.350% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 1,624,000,000 | 0 | ||||||||
Gross carrying amount | Senior Notes Due 2049 - 3.700% | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 1,299,000,000 | $ 0 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt Activity (Details) $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018CAD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Repayment of long-term debt | $ (1,500) | $ 2,184 | $ (823) | ||
Net issuance (repayment) of long-term debt | 2,184 | (823) | |||
Long-term debt net of transaction costs, beginning of year | 14,290 | 14,448 | |||
Net issuance (repayment) of long-term debt | 2,184 | (823) | |||
(Gain) loss on foreign exchange | (458) | ||||
(Gain) loss on foreign exchange | 672 | ||||
Deferred transaction costs incurred | (61) | (18) | |||
Amortization of deferred transaction costs | 12 | 11 | |||
Long-term debt net of transaction costs, end of year | 15,967 | 14,290 | |||
Bank credit facilities | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Net issuance (repayment) of long-term debt | 0 | 0 | |||
Net issuance (repayment) of long-term debt | 0 | 0 | |||
Bank Credit Facilities, US Portion | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Proceeds on issuance of long-term debt | $ 0 | $ 0 | $ 157 | $ 125 | |
Exchange rate on proceeds from non-current borrowings | 0 | 0 | 1.257 | 1.257 | |
Repayment of long-term debt | $ 0 | $ 0 | $ (157) | $ (125) | |
Exchange rate on repayments of non-current borrowings | 0 | 0 | 1.256 | 1.256 | |
Senior notes | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Proceeds on issuance of long-term debt | $ 3,984 | $ 938 | |||
Repayment of long-term debt | (1,800) | (1,761) | |||
Net issuance (repayment) of long-term debt | 2,184 | (823) | |||
Net issuance (repayment) of long-term debt | 2,184 | (823) | |||
Senior Notes, Canadian Portion | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Proceeds on issuance of long-term debt | 1,000 | 0 | |||
Repayment of long-term debt | (1,800) | 0 | |||
Senior Notes, US Portion | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Proceeds on issuance of long-term debt | $ 2,984 | $ 938 | |||
Exchange rate on proceeds from non-current borrowings | 1.326 | 1.326 | 1.251 | 1.251 | |
Repayment of long-term debt | $ 0 | $ 0 | $ (1,761) | $ (1,400) | |
Exchange rate on repayments of non-current borrowings | 0 | 0 | 1.258 | 1.258 | |
Principal amount | $ 2,250 | $ 750 |
LONG-TERM DEBT - Weighted Avera
LONG-TERM DEBT - Weighted Average Interest Rate (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Weighted average | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 4.30% | 4.45% |
LONG-TERM DEBT - Bank Credit an
LONG-TERM DEBT - Bank Credit and Letter of Credit Facilities (Details) $ in Millions | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Long-term debt | $ 15,967,000,000 | $ 13,390,000,000 | $ 13,390,000,000 | ||||
Short-term borrowings | 2,238,000,000 | $ 2,255,000,000 | 2,255,000,000 | ||||
Revolving Credit Facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | $ 3,200,000,000 | ||||||
Revolving Credit Facility | Bank Prime Rate or Base Rate | Minimum | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Spread on variable rate | 0.00% | 0.00% | |||||
Revolving Credit Facility | Bank Prime Rate or Base Rate | Maximum | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Spread on variable rate | 1.25% | 1.25% | |||||
Revolving Credit Facility | Bankers' Acceptance Rate or London Inter-Bank Offered Rate | Minimum | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Spread on variable rate | 0.85% | 0.85% | |||||
Revolving Credit Facility | Bankers' Acceptance Rate or London Inter-Bank Offered Rate | Maximum | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Spread on variable rate | 2.25% | 2.25% | |||||
Revolving Credit Facility Tranche due September 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | 2,500,000,000 | ||||||
Revolving Credit Facility Tranche due September 2021 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | 700,000,000 | ||||||
Bank and Letter of Credit Facilities | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | $ 3,300,000,000 | 4,200,000,000 | |||||
Available liquidity | 1,600,000,000 | 1,600,000,000 | |||||
Long-term debt | 100,000,000 | 1,000,000,000 | |||||
US commercial paper | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Short-term borrowings | $ 1,588,000,000 | $ 1,223 | $ 1,605,000,000 | $ 1,177 | $ 935,000,000 | $ 746 |
LONG-TERM DEBT - Senior Notes a
LONG-TERM DEBT - Senior Notes and Debentures (Details) | Nov. 12, 2019CAD ($) | Apr. 30, 2019CAD ($) | Feb. 08, 2018CAD ($) | Nov. 30, 2019CAD ($) | Nov. 30, 2019USD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019USD ($) | Apr. 30, 2018CAD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Nov. 12, 2019USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Feb. 08, 2018USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Loss on repayment of long-term debt | $ 19,000,000 | $ 28,000,000 | ||||||||||||||||
Repayment of long-term debt | $ 1,500,000,000 | (2,184,000,000) | 823,000,000 | |||||||||||||||
Debt derivatives | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total proceeds on debt derivatives | 326,000,000 | 17,620,000,000 | 21,129,000,000 | |||||||||||||||
Senior notes | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total gross proceeds | 3,984,000,000 | 938,000,000 | ||||||||||||||||
Repayment of long-term debt | 1,800,000,000 | 1,761,000,000 | ||||||||||||||||
Senior notes | Debt derivatives | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total proceeds on debt derivatives | 0 | 1,761,000,000 | ||||||||||||||||
Senior Notes Due 2029 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,000,000,000 | |||||||||||||||||
Interest rate | 3.25% | 3.25% | ||||||||||||||||
Discount / premium at issuance | 99.746% | 99.746% | ||||||||||||||||
Total gross proceeds | $ 1,000,000,000 | |||||||||||||||||
Transaction costs and discounts | $ 7,000,000 | |||||||||||||||||
Senior Notes Due 2029 | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,000,000,000 | |||||||||||||||||
Interest rate | 3.25% | 3.25% | ||||||||||||||||
Senior Notes Due 2049 - 4.350% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,250,000,000 | |||||||||||||||||
Interest rate | 4.35% | 4.35% | ||||||||||||||||
Discount / premium at issuance | 99.667% | 99.667% | ||||||||||||||||
Transaction costs and discounts | $ 20,000,000 | |||||||||||||||||
Senior Notes Due 2049 - 4.350% | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,250,000,000 | |||||||||||||||||
Interest rate | 4.35% | 4.35% | ||||||||||||||||
Senior Notes Due 2049 - 3.700% | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,000,000,000 | |||||||||||||||||
Interest rate | 3.70% | |||||||||||||||||
Discount / premium at issuance | 98.926% | |||||||||||||||||
Total gross proceeds | $ 1,308,000,000 | |||||||||||||||||
Transaction costs and discounts | $ 25,000,000 | |||||||||||||||||
Senior Notes Due 2049 - 3.700% | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,000,000,000 | |||||||||||||||||
Interest rate | 3.70% | 3.70% | ||||||||||||||||
Senior Notes Due 2048 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 750,000,000 | |||||||||||||||||
Interest rate | 4.30% | |||||||||||||||||
Discount / premium at issuance | 99.398% | |||||||||||||||||
Transaction costs and discounts | $ 16,000,000 | |||||||||||||||||
Senior Notes Due 2048 | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 750,000,000 | |||||||||||||||||
Interest rate | 4.30% | 4.30% | ||||||||||||||||
Senior Notes Due 2020 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 900,000,000 | |||||||||||||||||
Senior Notes Due 2020 | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 900,000,000 | |||||||||||||||||
Interest rate | 4.70% | 4.70% | 4.70% | |||||||||||||||
Senior Notes Due 2018 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 1,800,000,000 | $ 1,400,000,000 | ||||||||||||||||
Senior Notes Due 2018 | Fixed interest rate | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Interest rate | 6.80% | 6.80% | ||||||||||||||||
Senior Notes, US Portion | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Principal amount | $ 750,000,000 | $ 2,250,000,000 | ||||||||||||||||
Total gross proceeds | $ 2,984,000,000 | 938,000,000 | ||||||||||||||||
Repayment of long-term debt | 0 | $ 0 | 1,761,000,000 | $ 1,400,000,000 | ||||||||||||||
Senior Notes, US Portion | March 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 0 | |||||||||||||||||
Senior Notes, US Portion | November 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 0 | |||||||||||||||||
Senior Notes, US Portion | September 2020, repaid November 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 0 | |||||||||||||||||
Senior Notes, US Portion | August 2018, repaid April 2018 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 1,400,000,000 | |||||||||||||||||
Senior Notes, Canadian Portion | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Total gross proceeds | 1,000,000,000 | 0 | ||||||||||||||||
Repayment of long-term debt | $ 1,800,000,000 | $ 0 | ||||||||||||||||
Senior Notes, Canadian Portion | March 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 400,000,000 | |||||||||||||||||
Senior Notes, Canadian Portion | November 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 500,000,000 | |||||||||||||||||
Senior Notes, Canadian Portion | September 2020, repaid November 2019 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 900,000,000 | |||||||||||||||||
Senior Notes, Canadian Portion | August 2018, repaid April 2018 | ||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||
Repayment of long-term debt | $ 1,761,000,000 |
LONG-TERM DEBT - Principal Repa
LONG-TERM DEBT - Principal Repayments (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | $ 15,967 | $ 13,390 | $ 13,390 |
Gross carrying amount | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 16,130 | $ 14,404 | |
2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 0 | ||
2021 | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 1,450 | ||
2022 | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 600 | ||
2023 | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 1,753 | ||
2024 | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | 600 | ||
Thereafter | |||
Disclosure of detailed information about borrowings [line items] | |||
Long-term debt | $ 11,727 |
LONG-TERM DEBT - Terms and Cond
LONG-TERM DEBT - Terms and Conditions (Details) | Dec. 31, 2019 |
Senior Debentures Due 2032 | Fixed interest rate | |
Disclosure of detailed information about borrowings [line items] | |
Interest rate | 8.75% |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Deferred pension liability | $ 465 | $ 373 | |
Supplemental executive retirement plan | 73 | 67 | |
Stock-based compensation | 47 | 66 | |
Other | 29 | 40 | |
Total other long-term liabilities | $ 614 | $ 546 | $ 546 |
POST-EMPLOYMENT BENEFITS - Prin
POST-EMPLOYMENT BENEFITS - Principal Actuarial Assumptions (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined benefit obligation | ||
Discount rate | 3.20% | 3.90% |
Pension expense | ||
Discount rate | 3.90% | 3.70% |
Rate of compensation increase | 3.00% | |
Minimum | ||
Defined benefit obligation | ||
Rate of compensation increase | 1.00% | 1.00% |
Pension expense | ||
Rate of compensation increase | 1.00% | |
Maximum | ||
Defined benefit obligation | ||
Rate of compensation increase | 4.50% | 4.50% |
Pension expense | ||
Rate of compensation increase | 4.50% |
POST-EMPLOYMENT BENEFITS - Sens
POST-EMPLOYMENT BENEFITS - Sensitivity of Key Assumptions (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.50% | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | 0.50% | 0.50% |
Defined benefit obligation | ||
Increase (decrease) in accrued benefit obligation due to reasonably possible increase in actuarial assumption | $ (233) | $ (196) |
Increase (decrease) in accrued benefit obligation due to reasonably possible decrease in actuarial assumption | $ 266 | $ 224 |
Rate of future compensation increase | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible increase in actuarial assumption | 0.25% | 0.25% |
Percentage of reasonably possible decrease in actuarial assumption | 0.25% | 0.25% |
Defined benefit obligation | ||
Increase (decrease) in accrued benefit obligation due to reasonably possible increase in actuarial assumption | $ 17 | $ 16 |
Increase (decrease) in accrued benefit obligation due to reasonably possible decrease in actuarial assumption | $ (17) | $ (16) |
Mortality rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Duration of reasonably possible increase in actuarial assumption | 1 year | 1 year |
Duration of reasonably possible decrease in actuarial assumption | 1 year | 1 year |
Defined benefit obligation | ||
Increase (decrease) in accrued benefit obligation due to reasonably possible increase in actuarial assumption | $ 61 | $ 47 |
Increase (decrease) in accrued benefit obligation due to reasonably possible decrease in actuarial assumption | $ (64) | $ (50) |
POST-EMPLOYMENT BENEFITS - Narr
POST-EMPLOYMENT BENEFITS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | ||
Defined contribution plan expense | $ 12 | $ 8 |
Entity's own securities included in plan assets | 10 | $ 5 |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 145 | |
Weighted average duration of defined benefit obligation | 17 years | 18 years |
Return gain (loss) on plan assets | $ 355 | $ (44) |
Cumulative loss in equity, employee benefit plans | 503 | 384 |
Domestic defined benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Reduction in past service cost | 21 | 43 |
Return gain (loss) on plan assets | 277 | (114) |
Accrued benefit obligation | Domestic defined benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Reduction in past service cost | $ 21 | $ 43 |
POST-EMPLOYMENT BENEFITS - Pres
POST-EMPLOYMENT BENEFITS - Present Value of Accrued Plan Benefits and Estimated Market Values of Net Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Net deferred pension liability | $ (73) | $ (67) |
Domestic defined benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 2,449 | 1,965 |
Accrued benefit obligations | (2,900) | (2,330) |
Deferred pension asset | 14 | 8 |
Deferred pension liability | (465) | (373) |
Net deferred pension liability | $ (451) | $ (365) |
POST-EMPLOYMENT BENEFITS - Chan
POST-EMPLOYMENT BENEFITS - Changes in Defined Benefit Liability (Asset) (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit plan (assets) accrued benefit obligations, beginning balance | $ 67 | |
Remeasurements, recognized in other comprehensive income and equity | 355 | $ (44) |
Contributions by employees | 36 | 39 |
Contributions by employer | 179 | 148 |
Net defined benefit plan (assets) accrued benefit obligations, ending balance | 73 | 67 |
Domestic defined benefit plans | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit plan (assets) accrued benefit obligations, beginning balance | 365 | |
Current service cost | 121 | 143 |
Past service recovery | (21) | (43) |
Pension expense, recognized in employee salaries and benefits expense | (112) | (116) |
Interest (income) cost | 8 | 12 |
Remeasurements, recognized in other comprehensive income and equity | 277 | (114) |
Remeasurements, recognized in other comprehensive income and equity | 154 | (54) |
Administrative expenses paid from plan assets | (4) | (4) |
Net defined benefit plan (assets) accrued benefit obligations, ending balance | 451 | 365 |
Domestic defined benefit plans | Plan assets | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit plan (assets) accrued benefit obligations, beginning balance | (1,965) | (1,890) |
Interest (income) cost | (81) | (73) |
Remeasurements, recognized in other comprehensive income and equity | 277 | (114) |
Contributions by employees | 36 | 39 |
Contributions by employer | 179 | 148 |
Benefits paid | (86) | (68) |
Administrative expenses paid from plan assets | (3) | (3) |
Net defined benefit plan (assets) accrued benefit obligations, ending balance | (2,449) | (1,965) |
Domestic defined benefit plans | Accrued benefit obligation | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit plan (assets) accrued benefit obligations, beginning balance | 2,330 | 2,342 |
Current service cost | 121 | 143 |
Past service recovery | (21) | (43) |
Interest (income) cost | 89 | 85 |
Contributions by employees | 36 | 39 |
Benefits paid | (86) | (68) |
Remeasurements, recognized in other comprehensive income and equity | 431 | (168) |
Net defined benefit plan (assets) accrued benefit obligations, ending balance | 2,900 | 2,330 |
Unfunded supplemental benefits for certain executives | Accrued benefit obligation | ||
Changes in net defined benefit liability (asset) [abstract] | ||
Net defined benefit plan (assets) accrued benefit obligations, beginning balance | 67 | 66 |
Pension expense, recognized in employee salaries and benefits expense | 2 | 2 |
Interest (income) cost | 3 | 2 |
Benefits paid | (4) | (4) |
Remeasurements, recognized in other comprehensive income and equity | 5 | 1 |
Net defined benefit plan (assets) accrued benefit obligations, ending balance | $ 73 | $ 67 |
POST-EMPLOYMENT BENEFITS - Comp
POST-EMPLOYMENT BENEFITS - Composition of Plan Assets (Details) - Domestic defined benefit plans - CAD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities | $ 1,472 | $ 1,149 |
Debt securities | 967 | 810 |
Other - cash | 10 | 6 |
Total fair value of plan assets | $ 2,449 | $ 1,965 |
POST-EMPLOYMENT BENEFITS - Bene
POST-EMPLOYMENT BENEFITS - Benefit Plan Costs (Details) - Domestic defined benefit plans - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service cost | $ 121 | $ 143 |
Past service recovery | (21) | (43) |
Net interest cost | 8 | 12 |
Net pension expense | 108 | 112 |
Administrative expense | 4 | 4 |
Total pension cost recognized in net income | 112 | 116 |
Plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net interest cost | (81) | (73) |
Administrative expense | 3 | 3 |
Accrued benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service cost | 121 | 143 |
Past service recovery | (21) | (43) |
Net interest cost | $ 89 | $ 85 |
POST-EMPLOYMENT BENEFITS - Reme
POST-EMPLOYMENT BENEFITS - Remeasurement Recognized in OCI and Equity (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Return (loss) on plan assets (excluding interest income) | $ 355 | $ (44) |
Domestic defined benefit plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Return (loss) on plan assets (excluding interest income) | 277 | (114) |
Change in financial assumptions | (401) | 158 |
Change in demographic assumptions | 0 | (10) |
Effect of experience adjustments | (30) | 20 |
Remeasurement (loss) gain, recognized in other comprehensive income and equity | $ (154) | $ 54 |
POST-EMPLOYMENT BENEFITS - Allo
POST-EMPLOYMENT BENEFITS - Allocation of Plan Assets (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Domestic equity securities | 12.00% | 11.80% |
International equity securities | 48.10% | 46.70% |
Debt securities | 39.50% | 41.20% |
Other - cash | 0.40% | 0.30% |
Total | 100.00% | 100.00% |
Minimum | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Debt securities | 25.00% | |
Target asset allocation percentage, Other - cash | 0.00% | |
Minimum | Domestic | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Equity securities | 8.00% | |
Minimum | International | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Equity securities | 37.00% | |
Maximum | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Debt securities | 45.00% | |
Target asset allocation percentage, Other - cash | 2.00% | |
Maximum | Domestic | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Equity securities | 18.00% | |
Maximum | International | ||
Disclosure of fair value of plan assets [line items] | ||
Target asset allocation percentage, Equity securities | 67.00% |
POST-EMPLOYMENT BENEFITS - Cont
POST-EMPLOYMENT BENEFITS - Contributions to Plans (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefits [Abstract] | ||
Employer contribution | $ 179 | $ 148 |
Employee contribution | 36 | 39 |
Total contribution | $ 215 | $ 187 |
SHAREHOLDERS' EQUITY - Capital
SHAREHOLDERS' EQUITY - Capital Stock (Details) | Dec. 31, 2019voteshares |
Preferred shares | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized for issue (in shares) | 400,000,000 |
Class A Voting Shares | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized for issue (in shares) | 112,474,388 |
Number of votes entitled to | vote | 50 |
Class B Non-Voting Shares | |
Disclosure of classes of share capital [line items] | |
Number of shares authorized for issue (in shares) | 1,400,000,000 |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividends (Details) - $ / shares | Apr. 01, 2020 | Jan. 02, 2020 | Oct. 01, 2019 | Jul. 02, 2019 | Apr. 01, 2019 | Jan. 03, 2019 | Oct. 03, 2018 | Jul. 03, 2018 | Apr. 03, 2018 | Jan. 02, 2020 | Jan. 03, 2019 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | ||||||||||||
Dividends per share (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | ||||
Subsequent Event | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Dividends per share (in dollars per share) | $ 0.50 | $ 2 | ||||||||||
Subsequent Event | Forecast | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Dividends per share (in dollars per share) | $ 0.50 | |||||||||||
Class A Voting Shares | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Entitled rate per share of dividends (in dollars per share) | $ 0.05 | |||||||||||
Class B Non-Voting Shares | ||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||
Entitled rate per share of dividends (in dollars per share) | $ 0.05 |
SHAREHOLDERS' EQUITY - Normal C
SHAREHOLDERS' EQUITY - Normal Course Issuer Bid (Details) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Disclosure of classes of share capital [line items] | ||||
Shares repurchased | $ 655,000,000 | |||
Class B Non-Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Shares repurchased | $ 655,000,000 | |||
Number of shares purchased (in shares) | 9,900,000 | |||
2019 NCIB | Class B Non-Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Authorized amount (in shares) | 35,700,000 | |||
Authorized amount | $ 500,000,000 | |||
Shares repurchased | $ 500,000,000 | |||
Number of shares purchased (in shares) | 7,700,000 | |||
2018 NCIB | Class B Non-Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Authorized amount (in shares) | 35,800,000 | |||
Authorized amount | $ 500,000,000 | |||
Shares repurchased | $ 155,000,000 | $ 0 | ||
Number of shares purchased (in shares) | 2,200,000 |
STOCK-BASED COMPENSATION - Prin
STOCK-BASED COMPENSATION - Principal assumptions used to determine fair value of stock options (Details) | 12 Months Ended | |
Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($)step | |
Share-based Payment Arrangements [Abstract] | ||
Weighted average fair value | $ | $ 8.11 | $ 8.42 |
Risk-free interest rate | 1.90% | 1.70% |
Dividend yield | 2.80% | 3.30% |
Volatility of Class B Non-Voting Shares | 16.40% | 20.10% |
Weighted average expected life | 5.5 | 6.2 |
Weighted average time to vest | 2 years 6 months | |
Weighted average time to expiry | 10 years | |
Employee exit rate | 4.90% | |
Suboptimal exercise factor | 1.4 | |
Lattice steps | step | 50 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total stock-based compensation expense | $ 70 | $ 65 |
Stock options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total stock-based compensation expense | 1 | 17 |
Restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total stock-based compensation expense | 47 | 51 |
Deferred share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total stock-based compensation expense | 4 | 30 |
Equity derivative effect, net of interest receipt | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total stock-based compensation expense | $ 18 | $ (33) |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019CAD ($)shares$ / shares | Dec. 31, 2018CAD ($)shares$ / shares | Dec. 31, 2017shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share-based payment transactions | $ 220,000,000 | $ 252,000,000 | |
Current liabilities from share-based payment transactions | 173,000,000 | 186,000,000 | |
Non-current liabilities from share-based payment transactions | 47,000,000 | 66,000,000 | |
Intrinsic value of liabilities from share-based payment transactions | 106,000,000 | 112,000,000 | |
Expense from cash-settled share-based payment transactions | $ 84,000,000 | $ 69,000,000 | |
Weighted average exercise price of share options exercised in share-based payment arrangement (in dollars per share) | $ / shares | $ 46.56 | $ 45.20 | |
Unrecognized stock-based compensation expense, stock options | $ 6,000,000 | $ 8,000,000 | |
Stock-based compensation expense (recovery) | $ 70,000,000 | $ 65,000,000 | |
Cash-settled stock options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of share options exercised in share-based payment arrangement (in dollars per share) | $ / shares | $ 70.97 | $ 61.84 | |
Stock options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share conversion ratio | 1 | ||
Awards authorized (in shares) | shares | 65,000,000 | ||
Award vesting term | 4 years | ||
Grant exercise price determination term | 5 days | ||
Unrecognized stock-based compensation expense, period of recognition | 4 years | ||
Stock-based compensation expense (recovery) | $ 1,000,000 | $ 17,000,000 | |
Stock options | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award term | 7 years | ||
Stock options | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award term | 10 years | ||
Performance Options | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting term | 4 years | ||
Number of other equity instruments granted in share-based payment arrangement (in shares) | shares | 0 | 439,435 | |
Number of other equity instruments outstanding in share-based payment arrangement (in shares) | shares | 1,068,776 | 1,575,605 | |
Restricted share units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share conversion ratio | 1 | ||
Award vesting term | 3 years | ||
Number of other equity instruments granted in share-based payment arrangement (in shares) | shares | 1,013,900 | 1,217,487 | |
Number of other equity instruments outstanding in share-based payment arrangement (in shares) | shares | 2,472,774 | 2,218,925 | 1,811,845 |
Unrecognized stock-based compensation expense, period of recognition | 3 years | ||
Shares reserved for issue (in shares) | shares | 4,000,000 | ||
Unrecognized stock-based compensation expense, other than options (in shares) | shares | 56,000,000 | 59,000,000 | |
Stock-based compensation expense (recovery) | $ 47,000,000 | $ 51,000,000 | |
Performance-based RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting term | 3 years | ||
Number of other equity instruments granted in share-based payment arrangement (in shares) | shares | 180,896 | 263,239 | |
Performance-based RSUs | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Performance vesting rights | 50.00% | ||
Performance-based RSUs | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Performance vesting rights | 150.00% | ||
Deferred share units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting term | 3 years | ||
Number of other equity instruments granted in share-based payment arrangement (in shares) | shares | 110,003 | 131,051 | |
Number of other equity instruments outstanding in share-based payment arrangement (in shares) | shares | 1,741,884 | 2,004,440 | 2,327,647 |
Unrecognized stock-based compensation expense, period of recognition | 3 years | ||
Unrecognized stock-based compensation expense, other than options (in shares) | shares | 1,000,000 | 7,000,000 | |
Stock-based compensation expense (recovery) | $ 4,000,000 | $ 30,000,000 | |
Performance-based DSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Award vesting term | 3 years | ||
Number of other equity instruments granted in share-based payment arrangement (in shares) | shares | 29,300 | 40,269 | |
Performance-based DSUs | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Performance vesting rights | 50.00% | ||
Performance-based DSUs | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Performance vesting rights | 150.00% | ||
Employee Share Accumulation Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Maximum employee contribution percentage | 10.00% | ||
Amount of maximum annual employee contribution | $ 25,000 | ||
Stock-based compensation expense (recovery) | $ 51,000,000 | $ 46,000,000 | |
Employee Share Accumulation Plan | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Employer percentage, matching contribution | 25.00% | ||
Employee Share Accumulation Plan | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Employer percentage, matching contribution | 50.00% | ||
Equity derivatives | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Stock-based compensation expense (recovery) | $ 18,000,000 | $ (33,000,000) |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options Activity (Details) | 12 Months Ended | |
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | |
Share-based Payment Arrangements [Abstract] | ||
Number of options, beginning of year (in shares) | shares | 2,719,612 | 2,637,890 |
Number of options, Granted (in shares) | shares | 1,179,160 | 850,700 |
Number of options, Exercised (in shares) | shares | (743,977) | (679,706) |
Number of options, Forfeited (in shares) | shares | 0 | (89,272) |
Number of options, end of year (in shares) | shares | 3,154,795 | 2,719,612 |
Number of options, Exercisable, end of year (in shares) | shares | 993,645 | 1,059,590 |
Weighted average exercise price, beginning of year (in dollars per share) | $ / shares | $ 53.22 | $ 49.42 |
Weighted average exercise price, Granted (in dollars per share) | $ / shares | 72.03 | 58.88 |
Weighted average exercise price, Exercised (in dollars per share) | $ / shares | 46.56 | 45.20 |
Weighted average exercise price, Forfeited (in dollars per share) | $ / shares | 0 | 55.94 |
Weighted average exercise price, end of year (in dollars per share) | $ / shares | 61.82 | 53.22 |
Weighted average exercise price, Exercisable, end of year (in dollars per share) | $ / shares | $ 52.38 | $ 46.26 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Range of Exercise Prices (Details) | 12 Months Ended | ||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 3,154,795 | 2,719,612 | 2,637,890 |
Options outstanding, Weighted average remaining contractual life (years) | 7 years 6 months 21 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 61.82 | $ 53.22 | $ 49.42 |
Options exercisable, Number exercisable (in shares) | shares | 993,645 | 1,059,590 | |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 52.38 | $ 46.26 | |
$42.85 - $44.99 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 153,937 | ||
Options outstanding, Weighted average remaining contractual life (years) | 4 years 9 months 25 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 44.24 | ||
Options exercisable, Number exercisable (in shares) | shares | 153,937 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 44.24 | ||
$42.85 - $44.99 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 42.85 | ||
$42.85 - $44.99 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 44.99 | ||
$45.00 - $49.99 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 506,011 | ||
Options outstanding, Weighted average remaining contractual life (years) | 4 years 8 months 1 day | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 48.88 | ||
Options exercisable, Number exercisable (in shares) | shares | 442,257 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 48.73 | ||
$45.00 - $49.99 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 45 | ||
$45.00 - $49.99 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 49.99 | ||
$50.00 - $59.99 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 910,595 | ||
Options outstanding, Weighted average remaining contractual life (years) | 7 years 9 months 3 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 58.10 | ||
Options exercisable, Number exercisable (in shares) | shares | 265,564 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 57.82 | ||
$50.00 - $59.99 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 50 | ||
$50.00 - $59.99 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 59.99 | ||
$60.00 - $64.99 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 415,057 | ||
Options outstanding, Weighted average remaining contractual life (years) | 7 years 8 months 19 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 62.91 | ||
Options exercisable, Number exercisable (in shares) | shares | 122,459 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 62.82 | ||
$60.00 - $64.99 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 60 | ||
$60.00 - $64.99 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 64.99 | ||
$65.00 - $69.99 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 129,025 | ||
Options outstanding, Weighted average remaining contractual life (years) | 9 years 4 months 17 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 66.21 | ||
Options exercisable, Number exercisable (in shares) | shares | 9,428 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 68.10 | ||
$65.00 - $69.99 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 65 | ||
$65.00 - $69.99 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 69.99 | ||
$70.00 - $73.00 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Options outstanding, Number outstanding (in shares) | shares | 1,040,170 | ||
Options outstanding, Weighted average remaining contractual life (years) | 8 years 10 months 24 days | ||
Options outstanding, Weighted average exercise price (in dollars per share) | $ 73 | ||
Options exercisable, Number exercisable (in shares) | shares | 0 | ||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 0 | ||
$70.00 - $73.00 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | 70 | ||
$70.00 - $73.00 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices | $ 73 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted and Deferred Share Unit Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year (in shares) | 2,218,925 | 1,811,845 |
Granted and reinvested dividends (in shares) | 1,013,900 | 1,217,487 |
Exercised (in shares) | (582,314) | (597,015) |
Forfeited (in shares) | (177,737) | (213,392) |
Outstanding, end of year (in shares) | 2,472,774 | 2,218,925 |
Deferred share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding, beginning of year (in shares) | 2,004,440 | 2,327,647 |
Granted and reinvested dividends (in shares) | 110,003 | 131,051 |
Exercised (in shares) | (348,285) | (334,930) |
Forfeited (in shares) | (24,274) | (119,328) |
Outstanding, end of year (in shares) | 1,741,884 | 2,004,440 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Controlling Shareholder | ||
Disclosure of transactions between related parties [line items] | ||
Related party transaction (less than) | $ 1 | $ 1 |
Rogers Communications Canada, Inc. and Rogers Media Inc. | ||
Disclosure of transactions between related parties [line items] | ||
Proportion of ownership interest in subsidiary | 100.00% |
RELATED PARTY TRANSACTIONS - Ke
RELATED PARTY TRANSACTIONS - Key Management Personnel Compensation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party [Abstract] | ||
Salaries and other short-term employee benefits | $ 15 | $ 13 |
Post-employment benefits | 2 | 2 |
Stock-based compensation | 20 | 18 |
Total compensation | $ 37 | $ 33 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Key Management Personnel Transactions (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Printing and legal services, outstanding balance | $ 575 | |
Key management personnel of entity or parent | ||
Disclosure of transactions between related parties [line items] | ||
Printing and legal services | 6 | $ 13 |
Printing and legal services, outstanding balance | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Subsidiary Transactions (Details) - Subsidiaries - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Revenue | $ 69 | $ 86 |
Purchases | 212 | 197 |
Accounts receivable | 86 | 99 |
Accounts payable and accrued liabilities | $ 24 | $ 20 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - Future Minimum Payments for Contractual Commitments (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Player contracts | $ 248 |
Purchase obligations | 660 |
Program rights | 3,613 |
Total commitments | 4,521 |
Less than 1 year | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Player contracts | 95 |
Purchase obligations | 312 |
Program rights | 620 |
Total commitments | 1,027 |
1-3 Years | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Player contracts | 108 |
Purchase obligations | 215 |
Program rights | 1,111 |
Total commitments | 1,434 |
4-5 Years | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Player contracts | 45 |
Purchase obligations | 92 |
Program rights | 1,052 |
Total commitments | 1,189 |
After five years | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Player contracts | 0 |
Purchase obligations | 41 |
Program rights | 830 |
Total commitments | $ 871 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - Other (Details) $ in Millions | Dec. 31, 2019CAD ($) |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Acquisition of property, plant and equipment | $ 200 |
Acquisition of intangible assets | 63 |
Commitments related to associates and joint ventures | 312 |
Total other commitments | 575 |
Estimated impact that would have resulted this quarter for CRTC's order as drafted | 150 |
Estimated ongoing impact per quarter | $ 11 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in non-cash operating working capital items (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Statement [Abstract] | ||
Accounts receivable | $ (174) | $ (133) |
Inventories | 7 | (31) |
Other current assets | (41) | (6) |
Accounts payable and accrued liabilities | 61 | 103 |
Contract and other liabilities | 9 | (47) |
Total change in non-cash operating working capital items | $ (138) | $ (114) |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Additions to property, plant and equipment, net (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Statement [Abstract] | ||
Capital expenditures before proceeds on disposition | $ 2,845 | $ 2,815 |
Proceeds on disposition | (38) | (25) |
Capital expenditures | $ 2,807 | $ 2,790 |