Enhanced Investments - Financial Portal

Published: 2022-03-04

		Consolidated financial statements
		MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING
		These financial statements form the basis for all of the financial	The board of directors has appointed an Audit Committee, which is
		information that appears in this annual report.	made up of unrelated and independent directors. The Audit Committee’s responsibilities include reviewing the financial statements and other information in this annual report, and recommending them to the board of directors for approval. You will find a description of the Audit Committee’s other responsibilities on page 178 of this annual report.
		The financial statements and all of the information in this annual report
		are the responsibility of the management of BCE Inc. (BCE) and have been reviewed and approved by the board of directors. The board of directors is responsible for ensuring that management fulfills its financial reporting responsibilities. Deloitte LLP, Independent Registered Public
			The internal auditors and the shareholders’ auditors have free and
			independent access to the Audit Committee.
		Accounting Firm, have audited the financial statements.
		Management has prepared the financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Under these principles, management has made certain estimates and assumptions that are reflected in the financial statements and notes. Management believes that these financial statements fairly present BCE’s consolidated financial position, results of operations and cash flows.
			(signed) Mirko Bibic President and Chief Executive Officer
			(signed) Glen LeBlanc Executive Vice-President and Chief Financial Officer
		Management has a system of internal controls designed to provide reasonable assurance that the financial statements are accurate and complete in all material respects. This is supported by an internal audit group that reports to the Audit Committee, and includes communication with employees about policies for ethical business conduct. Management believes that the internal controls provide reasonable assurance that our financial records are reliable and form a proper basis for preparing the financial statements, and that our assets are properly accounted for and safeguarded.
			(signed) Thierry Chaumont
			Senior Vice-President, Controller and Tax
			March 3, 2022

Consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 129

	REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
	To the Shareholders and the Board of Directors of BCE Inc.
	OPINION ON THE FINANCIAL STATEMENTSWe have audited the accompanying consolidated statements of financial position of BCE Inc. and subsidiaries (the “Company”) as at December 31, 2021 and 2020, the related consolidated income statements, statements of comprehensive income, changes in equity, and cash flows, for each of the two years in the period ended December 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020, and its financial performance and its cash flows for each of the two years in the period ended December 31, 2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.	BASIS FOR OPINION
		These financial statements are the responsibility of the Company’s
		management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
		Securities and Exchange Commission and the PCAOB.
		We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
	We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31,
	2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
	of the Treadway Commission and our report dated March 3, 2022, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Consolidated	fi nancial statements
	130 \| BCE InC. 2021 AnnuAl REpoRt

		CRITICAL AUDIT MATTER	HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDITOur audit procedures related to forecasts of future operating performance, the determination of discount rates and perpetuity growth rates used by management to determine the recoverable amounts for Bell Media included the following, among others:
		The critical audit matter communicated below is a matter arising from the
		current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
			• Evaluated the effectiveness of controls over the assessment of
			goodwill and intangible assets for impairment, including those over the forecasts of future operating performance and the determination of the discount rates and perpetuity growth rates.
			• Evaluated management’s ability to accurately forecast future operating
		Goodwill and Intangible Assets – Bell Media Group – Refer to Notes 7, 19 and 22 to the financial statements	performance by comparing actual results to management’s historical forecasts.
			• Evaluated the reasonableness of management’s forecasts of future
		CRITICAL AUDIT MATTER DESCRIPTIONGoodwill and indefinite-life intangible assets (specifically broadcast licenses) for the Bell Media group of cash generating units (“Bell Media”) are tested annually or when there is an indication that the asset may be impaired. During the second quarter of 2021, Bell Media identified declines in radio advertising revenue and increase in discount rates as indicators that certain assets may be impaired. As a result of the second quarter and annual assessments of impairment of goodwill and intangible assets for Bell Media, management has determined that there was no impairment of goodwill and there was an impairment for intangible assets.
			operating performance by comparing the forecasts to:
			• Historical operating performance;• Analyst and industry reports for the Company and certain of its
			peer companies, and other relevant publicly available information;
			• Known changes in Bell Media’s operations or the industry in which
			it operates, including the impact of the COVID-19 pandemic and anticipated recovery, which are expected to impact future operating performance;
			• Internal communications to management and the Board of Directors.
			• With the assistance of fair value specialists, evaluated the
		When testing goodwill and intangible assets for Bell Media, while there are several assumptions that are required to determine the recoverable amount, the judgments with the highest degree of subjectivity and impact, are the forecasts of future operating performance, and the determination of discount rates and perpetuity growth rates. Changes in these assumptions could have a significant impact on the recoverable amounts of Bell Media, resulting in an impairment charge to goodwill and/or intangible assets as required. Given the significant judgments made by management, regarding the forecasts of future operating performance, determination of discount rates and perpetuity growth rates, a high degree of auditor judgment was required and resulted in an increased extent of audit effort, which included the need to involve fair value specialists.	reasonableness of the (1) discount rates, and (2) perpetuity growth rates by:
			• Testing the source information underlying the determination of the
			discount rates;
			• Reviewing relevant internal and external information, including
			analyst and industry reports, to assess the reasonability of the selected discount rates and perpetuity growth rates;
			• Developing a range of independent estimates and comparing
			those to the discount rates and perpetuity growth rates selected by management.
			/s/ Deloitte LLP
			Chartered Professional Accountants

			Montréal, Canada March 3, 2022
			We have served as the Company’s auditor since 1880.
Consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 131

	CONSOLIDATED INCOME STATEMENTS
	FOR THE YEAR ENDED DECEMBER 31
	(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)	2021	2020
	Operating revenues	23,449	22,883
	Operating costs	(13,556)	(13,276)
	Severance, acquisition and other costs	(209)	(116)
	Depreciation	(3,627)	(3,475)
	Amortization	(982)	(929)
	Finance costs
	Interest expense	(1,082)	(1,110)
	Interest on post-employment benefit obligations	(20)	(46)
	Impairment of assets	(197)	(472)
	Other income (expense)	160	(194)
	Income taxes	(1,044)	(792)
	Net earnings from continuing operations		2,892	2,473
	Net earnings from discontinued operations	–	226
	Net earnings		2,892	2,699
	Net earnings from continuing operations attributable to:
	Common shareholders		2,709	2,272
	Preferred shareholders		131	136
	Non-controlling interest		52	65
	Net earnings from continuing operations		2,892	2,473
	Net earnings attributable to:
	Common shareholders		2,709	2,498
	Preferred shareholders		131	136
	Non-controlling interest	52	65
	Net earnings		2,892	2,699
	Net earnings per common share – basic and diluted	10
	Continuing operations		2.99	2.51
	Discontinued operations	–	0.25
	Net earnings per common share – basic and diluted		2.99	2.76
	Weighted average number of common shares outstanding – basic (millions)		906.3	904.3

Consolidated	fi nancial statements
	132 \| BCE InC. 2021 AnnuAl REpoRt

		CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		FOR THE YEAR ENDED DECEMBER 31
		(IN MILLIONS OF CANADIAN DOLLARS)	2021	2020
		Net earnings from continuing operations		2,892	2,473
		Other comprehensive income from continuing operations, net of income taxes
		Items that will be subsequently reclassified to net earnings
						Net change in value of publicly-traded and privately-held investments, net of income taxes
						24	(15)
						Net change in value of derivatives designated as cash flow hedges, net of income taxes
						63	(33)
		Items that will not be reclassified to net earnings
						Actuarial gains on post-employment benefit plans, net of income taxes of ($653) million
						and ($184) million for 2021 and 2020, respectively	27	1,780	503
						Net change in value of derivatives designated as cash flow hedges, net of income taxes
						4	(1)
		Other comprehensive income from continuing operations		1,871	454
		Net earnings from discontinued operations attributable to common shareholders		–	226
		Total comprehensive income		4,763	3,153
		Total comprehensive income attributable to:
		Common shareholders		4,578	2,953
		Preferred shareholders		131	136
		Non-controlling interest	36			54	64
		Total comprehensive income		4,763	3,153

Consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 133

	CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	(IN MILLIONS OF CANADIAN DOLLARS)	DECEMBER 31, 2021	DECEMBER 31, 2020
	ASSETSCurrent assets
	Cash			207	224
	Trade and other receivables	11		3,949	3,528
	Inventory	12		482	439
	Contract assets	13		414	687
	Contract costs	14		507	402
	Prepaid expenses			254	209
	Other current assets	15		335	199
	Assets held for sale	16		50	–
	Total current assets			6,198	5,688
	Non-current assets
	Contract assets	13		251	256
	Contract costs	14		387	362
	Property, plant and equipment	17		28,235	27,513
	Intangible assets	19		15,570	13,102
	Deferred tax assets	9		105	106
	Investments in associates and joint ventures	20		668	756
	Post-employment benefit assets	27		3,472	1,277
	Other non-current assets	21		1,306	1,001
	Goodwill	22		10,572	10,604
	Total non-current assets			60,566	54,977
	Total assets			66,764	60,665
	LIABILITIESCurrent liabilities
	Trade payables and other liabilities	23		4,455	3,935
	Contract liabilities	13		799	717
	Interest payable			247	222
	Dividends payable			811	766
	Current tax liabilities			141	214
	Debt due within one year	24		2,625	2,417
	Liabilities held for sale	16		35	–
	Total current liabilities			9,113	8,271
	Non-current liabilities
	Contract liabilities	13		246	242
	Long-term debt	25		27,048	23,906
	Deferred tax liabilities	9		4,679	3,810
	Post-employment benefit obligations	27		1,734	1,962
	Other non-current liabilities	28		1,003	1,145
	Total non-current liabilities			34,710	31,065

	Total liabilities			43,823	39,336
	Commitments and contingencies	34
	EQUITYEquity attributable to BCE shareholders
Consolidated	fi nancial statements
	Preferred shares	30		4,003	4,003
	Common shares	30		20,662	20,390
	Contributed surplus	30		1,157	1,174
	Accumulated other comprehensive income			213	103
	Deficit			(3,400)	(4,681)
	Total equity attributable to BCE shareholders			22,635	20,989
	Non-controlling interest	36		306	340
	Total equity			22,941	21,329
	Total liabilities and equity			66,764	60,665
	134 \| BCE InC. 2021 AnnuAl REpoRt

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

ATTRIBUTABLE TO BCE SHAREHOLDERS

ACCUM-

ULATED

NON-

OTHER

CONTROL-

CONTRI-

COMPRE-

LING

TOTAL

FOR THE YEAR ENDED DECEMBER 31, 2021

PREFERRED

COMMON

BUTED

HENSIVE

INTEREST

EQUITY

(IN MILLIONS OF CANADIAN DOLLARS)

NOTE

SURPLUS

INCOME

DEFICIT

TOTAL

Balance at December 31, 2020

4,003

20,390

1,174

103

(4,681)

20,989

340

21,329

Net earnings

–

2,840

2,892

Other comprehensive income

from continuing operations

–

1,779

1,869

1,871

Total comprehensive income

–

4,619

4,709

4,763

Common shares issued under

employee stock option plan

–

272

(10)

–

262

–

262

Other share-based compensation

–

(7)

–

(32)

(39)

–

(39)

Dividends declared on BCE common

and preferred shares

–

(3,306)

–

(3,306)

Dividends declared by subsidiaries

to non-controlling interest

–

(87)

Settlement of cash flow hedges

transferred to the cost basis of hedged items

–

Other

–

(1)

Balance at December 31, 2021

4,003

20,662

1,157

213

(3,400)

22,635

306

22,941

ATTRIBUTABLE TO BCE SHAREHOLDERS

ACCUMU-

LATED

NON-

OTHER

CONTROL-

CONTRI-

COMPRE-

LING

TOTAL

FOR THE YEAR ENDED DECEMBER 31, 2020

PREFERRED

COMMON

BUTED

HENSIVE

INTEREST

EQUITY

(IN MILLIONS OF CANADIAN DOLLARS)

NOTE

SURPLUS

INCOME

DEFICIT

TOTAL

Balance at December 31, 2019

4,004

20,363

1,178

161

(4,632)

21,074

334

21,408

Net earnings

–

2,634

2,699

Other comprehensive (loss) income

from continuing operations

–

(48)

503

455

(1)

454

Total comprehensive (loss) income

–

(48)

3,137

3,089

3,153

Common shares issued under

employee stock option plan

–

(1)

–

Other share-based compensation

–

(3)

–

(35)

(38)

–

(38)

Repurchase of preferred shares

(1)

–

(1)

–

(1)

Dividends declared on BCE common

and preferred shares

–

(3,147)

–

(3,147)

Dividends declared by subsidiaries

to non-controlling interest

–

(53)

Settlement of cash flow hedges

transferred to the cost basis of hedged items

–

(10)

–

(10)

–

(10)

Other

–

(4)

(5)

(9)

Balance at December 31, 2020

4,003

20,390

1,174

103

(4,681)

20,989

340

21,329

Consolidated

fi nancial statements

BCE InC. 2021 AnnuAl REpoRt | 135

	CONSOLIDATED STATEMENTS OF CASH FLOWS
	FOR THE YEAR ENDED DECEMBER 31
	(IN MILLIONS OF CANADIAN DOLLARS)	2021	2020
	Cash flows from operating activitiesNet earnings from continuing operations
			2,892	2,473
	Adjustments to reconcile net earnings from continuing operations to cash flows
	from operating activities
	Severance, acquisition and other costs	209	116
	Depreciation and amortization	4,609	4,404
	Post-employment benefit plans cost	286	315
	Net interest expense		1,063	1,087
	Impairment of assets	197	472
	Losses (gains) on investments	6	(3)
	Income taxes	1,044	792
	Contributions to post-employment benefit plans	(282)	(297)
	Payments under other post-employment benefit plans	(65)	(61)
	Severance and other costs paid		(208)	(78)
	Interest paid		(1,080)	(1,112)
	Income taxes paid (net of refunds)		(913)	(846)
	Acquisition and other costs paid		(35)	(35)
	Change in contract assets	278	704
	Change in wireless device financing plan receivables	(365)	(867)
	Net change in operating assets and liabilities		372	636
	Cash from discontinued operations	–	54
	Cash flows from operating activities		8,008	7,754
	Cash flows used in investing activities
	Capital expenditures	(4,837)	(4,202)
	Business acquisitions		(12)	(65)
	Acquisition of spectrum licences	(2,082)	(86)
	Other investing activities		(72)	(79)
	Cash from discontinued operations	–	892
	Cash flows used in investing activities		(7,003)	(3,540)
	Cash flows used in financing activities
	Increase (decrease) in notes payable		351	(1,641)
	Decrease in securitized trade receivables	(150)	–
	Issue of long-term debt	4,985	6,006
	Repayment of long-term debt	(2,751)	(5,003)
	Issue of common shares	261	26
	Purchase of shares for settlement of share-based payments	(297)	(263)
	Cash dividends paid on common shares		(3,132)	(2,975)
	Cash dividends paid on preferred shares		(125)	(132)
	Cash dividends paid by subsidiaries to non-controlling interest		(86)	(53)
	Other financing activities		(78)	(93)
	Cash used in discontinued operations	–	(7)
	Cash flows used in financing activities		(1,022)	(4,135)
Consolidated	fi nancial statements
	Net (decrease) increase in cash		(17)	83
	Cash at beginning of year		224	141
	Cash at end of year		207	224
	Net decrease in cash equivalents		–	(4)
	Cash equivalents at beginning of year		–	4
	Cash equivalents at end of year		–	–
	136 \| BCE InC. 2021 AnnuAl REpoRt

		Notes to consolidated financial statements
		We, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries,
		joint arrangements and associates.
		Note 1 \| Corporate information
		BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers in Canada. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home (OOH) advertising services to customers in Canada. The consolidated financial statements (financial statements) were approved by BCE’s board of directors on March 3, 2022.
		Note 2 \| Significant accounting policies
		A) BASIS OF PRESENTATION
		The financial statements were prepared in accordance with International	All amounts are in millions of Canadian dollars, except where noted.
		Financial Reporting Standards (IFRS), as issued by the International
			FUNCTIONAL CURRENCY
		Accounting Standards Board (IASB). The financial statements have
		been prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as described in our accounting policies.	The financial statements are presented in Canadian dollars, the
			company’s functional currency.
		B) BASIS OF CONSOLIDATIONWe consolidate the financial statements of al of our subsidiaries. Subsidiaries are entities we control, where control is achieved when
			acquired subsidiaries to conform their accounting policies to ours.
			All intercompany transactions, balances, income and expenses are
		the company is exposed or has the right to variable returns from its involvement with the investee and has the current ability to direct the activities of the investee that significantly affect the investee’s returns.	eliminated on consolidation.
			Changes in our ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions, with no effect on net earnings or on Other comprehensive income from continuing operations. Any difference between the change in the carrying amount of non-controlling interest (NCI) and the consideration paid or received is attributed to owner’s equity.
		The results of subsidiaries acquired during the year are consolidated
		from the date of acquisition and the results of subsidiaries sold during the year are deconsolidated from the date of disposal. Where necessary, adjustments are made to the financial statements of
		C) REVENUE FROM CONTRACTS WITH CUSTOMERSRevenue is measured based on the value of the expected consideration in
			margin approach to determine stand-alone selling prices. Products and services purchased by a customer in excess of those included in the bundled arrangement are accounted for separately.
		a contract with a customer and excludes sales taxes and other amounts we collect on behalf of third parties. We recognize revenue when control of a product or service is transferred to a customer. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice.
			We may enter into arrangements with subcontractors and others who provide services to our customers. When we act as the principal in these arrangements, we recognize revenues based on the amounts billed to our customers. Otherwise, we recognize the net amount that we retain as revenues.

		For bundled arrangements, we account for individual products and services when they are separately identifiable and the customer can benefit from the product or service on its own or with other readily available resources. The total arrangement consideration is allocated to each product or service included in the contract with the customer based on its stand-alone selling price. We generally determine stand-alone selling prices based on the observable prices at which we sell products separately without a service contract and prices for non-bundled service offers with the same range of services, adjusted for market conditions and other factors, as appropriate. When similar products and services are not sold separately, we use the expected cost plus
			A contract asset is recognized in the consolidated statements of
			financial position (statements of financial position) when our right to consideration from the transfer of products or services to a customer is conditional on our obligation to transfer other products or services. Contract assets are transferred to trade receivables when our right to consideration becomes conditional only as to the passage of time.
Notes to consolidated	fi nancial statements
			A contract liability is recognized in the statements of financial position when we receive consideration in advance of the transfer of products
			or services to the customer. Contract assets and liabilities relating to the same contract are presented on a net basis.
	BCE InC. 2021 AnnuAl REpoRt \| 137

	Incremental costs of obtaining a contract with a customer, principally comprised of sales commissions, and prepaid contract fulfillment costs are included in contract costs in the statements of financial position, except where the amortization period is one year or less, in which case costs of obtaining a contract are immediately expensed. Capitalized costs are amortized on a systematic basis that is consistent with the period and pattern of transfer to the customer of the related products or services.	WIRELINE SEGMENT REVENUESOur Wireline segment principally generates revenue from providing data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, satellite TV service and connectivity, as well as other communications services and products to residential and business customers. Our Wireline segment also includes revenues from our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers.
	WIRELESS SEGMENT REVENUESOur Wireless segment principally generates revenue from providing integrated digital wireless voice and data communications products and services to residential and business customers.	We recognize product revenues from the sale of wireline equipment when a customer takes possession of the product. We recognize service revenues over time, as the services are provided. Revenues on certain long-term contracts are recognized using output methods based on products delivered, performance completed to date, time elapsed or milestones met. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate, or the expected cost plus margin approach for customized business arrangements.
	We recognize product revenues from the sale of wireless handsets and devices when a customer takes possession of the product. We recognize wireless service revenues over time, as the services are provided. For bundled arrangements, stand-alone selling prices are determined using observable prices adjusted for market conditions and other factors, as appropriate.
		For wireline customers, products are usually paid in full at the point of sale. Services are paid for on a monthly basis except where a billing schedule has been established with certain business customers under long-term contracts that can generally extend up to seven years.
	For wireless products and services that are sold separately, customers usually pay in full at the point of sale for products and on a monthly basis for services. For wireless products and services sold in bundled arrangements, including device financing plans, customers pay monthly over a contract term of up to 24 months for residential customers and up to 36 months for business customers. If they include a significant financing component, device financing plan receivables are discounted at market rates and interest revenue is accreted over the contractual repayment period.
		MEDIA SEGMENT REVENUESOur Media segment principally generates revenue from conventional
		TV, specialty TV, digital media, radio broadcasting and OOH advertising
		and subscriber fees from specialty TV, pay TV and streaming services.
		We recognize advertising revenue when advertisements are aired on the radio or TV, posted on our websites or appear on our advertising panels and street furniture. Revenues relating to subscriber fees are recorded on a monthly basis as the services are provided. Customer payments are due monthly as the services are provided.
	D) SHARE-BASED PAYMENTSOur share-based payment arrangements include an employee savings plan (ESP), restricted share units (RSUs) and performance share units (PSUs), deferred share units (DSUs) and stock options.
		one BCE common share or the value estimated using a Monte Carlo simulation for PSUs that include relative total shareholder return as a performance condition. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares.
	ESPWe recognize our ESP contributions as compensation expense in Operating costs in the consolidated income statements (income statements). The value of an ESP at the grant date is equal to the value of one BCE common share. We credit contributed surplus for the ESP expense recognized over the two-year vesting period, based on management’s estimate of the accrued employer contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.
		Compensation expense is adjusted for subsequent changes in management’s estimate of the number of RSUs/PSUs that are expected to vest. The effect of these changes is recognized in the period of the change. Upon settlement of the RSUs/PSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit. Vested RSUs/PSUs are settled in BCE common shares, DSUs, or a combination thereof.

		DSUsIf compensation is elected to be taken in DSUs, we issue DSUs equal to the fair value of the services received. Additional DSUs are issued to reflect dividends declared on the common shares. DSUs are settled in BCE common shares purchased on the open market following the cessation of employment or when a director leaves the board. We credit contributed surplus for the fair value of DSUs at the issue date. Upon settlement of the DSUs, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.
	RSUs/PSUsFor each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements based on the number of RSUs/PSUs expected to vest, recognized over the term of the vesting period, with a corresponding credit to contributed surplus. The value of a RSU at the grant date is equal to the value of one BCE common share. The value of a PSU at the grant date is equal to the value of
Notes to consolidated	fi nancial statements
	138 \| BCE InC. 2021 AnnuAl REpoRt

		STOCK OPTIONSWe use a fair value-based method to measure the cost of our employee stock options. The fair value of options granted is determined using a variation of a binomial option pricing model that takes into account factors specific to the stock option plan. We recognize compensation expense in Operating costs in the income statements, based on the number of stock options that are expected to vest. Compensation expense is adjusted for subsequent changes in management’s estimate of the number of stock options that are expected to vest.
			We credit contributed surplus for stock option expense recognized over the vesting period. When stock options are exercised, we credit share capital for the amount received and the amounts previously credited to contributed surplus.
		E) INCOME AND OTHER TAXESCurrent and deferred income tax expense is recognized in the income statements, except to the extent that the expense relates to items
			Deferred taxes are provided on temporary differences arising from investments in subsidiaries, joint arrangements and associates, except where we control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
		recognized in Other comprehensive income from continuing operations or directly in equity.
		A current or non-current tax asset (liability) is the estimated tax
		receivable (payable) on taxable earnings (loss) for the current or past periods.	Tax liabilities are, where permitted, offset against tax assets within the
			same taxable entity and tax jurisdiction.
		We use the liability method to account for deferred tax assets and liabilities, which arise from:
			INVESTMENT TAX CREDITS (ITCs), OTHER TAX
			CREDITS AND GOVERNMENT GRANTSWe recognize ITCs, other tax credits and government grants given on eligible expenditures when it is reasonably assured that they will be realized. They are presented as part of Trade and other receivables and Other current assets in the statements of financial position when they are expected to be utilized in the next year. We use the cost reduction method to account for ITCs and government grants, under which the credits are applied against the expense or asset to which the ITC or government grant relates.
		• temporary differences between the carrying amount of assets and
		liabilities recognized in the statements of financial position and their corresponding tax bases
		• the carryforward of unused tax losses and credits, to the extent they
		can be used in the future
		Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply when the asset or liability is recovered or settled. Both our current and deferred tax assets and liabilities are calculated using tax rates that have been enacted or substantively enacted at the reporting date.
		F) CASH EQUIVALENTSCash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase and are
		measured at amortized cost.
		G) SECURITIZATION OF TRADE RECEIVABLESProceeds on the securitization of trade receivables are recognized as a collateralized borrowing as we do not transfer control and substantially
		all the risks and rewards of ownership to another entity.
		H) INVENTORYWe measure inventory at the lower of cost and net realizable value. Inventory includes all costs to purchase, convert and bring the inventories

		to their present location and condition. We determine cost using specific identification for major equipment held for resale and the weighted average cost formula for all other inventory. We maintain inventory valuation reserves for inventory that is slow-moving or potentially obsolete, calculated using an inventory aging analysis.
Notes to consolidated	fi nancial statements
		I) PROPERTY, PLANT AND EQUIPMENTWe record property, plant and equipment at historical cost. Historical
			Borrowing costs are capitalized for qualifying assets, if the time to build or develop is in excess of one year, at a rate that is based on our weighted average interest rate on outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other income (expense) in the income statements.
		cost includes expenditures that are attributable directly to the acquisition or construction of the asset, including the purchase cost, and labour.
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	LEASESWe enter into leases for network infrastructure and equipment, land and buildings in the normal course of business. Lease contracts are typical y made for fixed periods but may include purchase, renewal or termination options. Leases are negotiated on an individual basis and contain a wide range of different terms and conditions.
		in an index or rate, or when we change our assessment of whether purchase, renewal or termination options will be exercised.
		Right-of-use assets are measured at cost, and are comprised of the initial measurement of the corresponding lease liabilities, lease payments made at or before the commencement date and any initial direct costs.
	We adopted IFRS 16 – Leases as of January 1, 2019. Certain finance leases entered into prior to 2019 were initially measured under IAS 17 – Leases, as permitted by the transition provisions of IFRS 16.	They are subsequently depreciated on a straight-line basis and reduced
		by impairment losses, if any. Right-of-use assets may also be adjusted to reflect the remeasurement of related lease liabilities. If we obtain ownership of the leased asset by the end of the lease term or the cost of the right-of-use asset reflects the exercise of a purchase option, we depreciate the right-of-use asset from the lease commencement date to the end of the useful life of the underlying asset. Otherwise, we depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the underlying asset or the end of the lease term.
	IFRS 16We assess whether a contract contains a lease at inception of the contract. A lease contract conveys the right to control the use of an identified asset for a period in exchange for consideration. We recognize lease liabilities with corresponding right-of-use assets for all lease agreements, except for short-term leases and leases of low value assets, which are expensed on a straight-line basis over the lease term. Consideration in a contract is allocated to lease and non-lease components on a relative stand-alone value basis. We generally account for lease components and any associated non-lease components as a single lease component.
		Variable lease payments that do not depend on an index or rate are not
		included in the measurement of lease liabilities and right-of-use assets.
		The related payments are expensed in Operating costs in the period
		in which the event or condition that triggers those payments occurs.
	Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using our incremental borrowing rate, unless the rate implicit in the lease is readily determinable. We apply a single incremental borrowing rate to a portfolio of leases with similar characteristics. Lease payments included in the measurement of the lease liability comprise:	IAS 17Under IAS 17, leases of property, plant and equipment are recognized as finance leases when we obtain substantially all the risks and rewards of ownership of the underlying assets. At the inception of the lease, we record an asset together with a corresponding long-term lease liability, at the lower of the fair value of the leased asset or the present value of the minimum future lease payments, excluding non-lease components.
	• fixed (and in-substance fixed) lease payments, less any lease incentives• variable lease payments that depend on an index or rate• payments expected under residual value guarantees and payments
		ASSET RETIREMENT OBLIGATIONS (AROs)We initially measure and record AROs at management’s best estimate using a present value methodology, adjusted subsequently for any changes in the timing or amount of cash flows and changes in discount rates. We capitalize asset retirement costs as part of the related assets and amortize them into earnings over time. We also increase the ARO and record a corresponding amount in interest expense to reflect the passage of time.
	relating to purchase options and renewal option periods that are reasonably certain to be exercised (or periods subject to termination options that are not reasonably certain to be exercised)
	Lease liabilities are subsequently measured at amortized cost using the effective interest method. Lease liabilities are remeasured, with a corresponding adjustment to the related right-of-use assets, when there is a change in variable lease payments arising from a change
	J) INTANGIBLE ASSETSFINITE-LIFE INTANGIBLE ASSETSFinite-life intangible assets are recorded at cost less accumulated
		CUSTOMER RELATIONSHIPSCustomer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition.
	amortization and accumulated impairment losses, if any.
	SOFTWAREWe record internal-use software at historical cost. Cost includes expenditures that are attributable directly to the acquisition or development of the software, including the purchase cost and labour.	PROGRAM AND FEATURE FILM RIGHTSWe account for program and feature film rights as intangible assets when these assets are acquired for the purpose of broadcasting. Program and feature film rights, which include producer advances and licence fees paid in advance of receipt of the program or film, are stated at acquisition cost less accumulated amortization and accumulated impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and liabilities for obligations incurred when:

	Software development costs are capitalized when all the following
	conditions are met:
Notes to consolidated	fi nancial statements	• technical feasibility can be demonstrated• management has the intent and the ability to complete the asset for
	use or sale
		• we receive a broadcast master and the cost is known or reasonably
	• it is probable that economic benefits will be generated• costs attributable to the asset can be measured reliably
		determinable for new program and feature film licences; or
		• the licence term commences for licence period extensions or
		syndicated programs
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		Related liabilities of programs and feature films are classified as current or non-current, based on the payment terms. Amortization of program and feature film rights is recorded in Operating costs in the income statements.	less accumulated impairment losses, if any. Wireless spectrum licences are recorded at acquisition cost, including borrowing costs when the time to build or develop the related network is in excess of one year. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on outstanding long-term debt.
		INDEFINITE-LIFE INTANGIBLE ASSETSBrand assets, mainly comprised of the Bell, Bell Media and Bell MTS brands, and broadcast licences are acquired through business combinations and are recorded at fair value at the date of acquisition,
			Currently, there are no legal, regulatory, competitive or other factors that limit the useful lives of our brands or spectrum licences.
		K) DEPRECIATION AND AMORTIZATIONWe depreciate property, plant and equipment and amortize finite-life
				ESTIMATED USEFUL LIFE
		intangible assets on a straight-line basis over their estimated useful lives. We review our estimates of useful lives on an annual basis and adjust depreciation and amortization on a prospective basis, as required. Land and assets under construction or development are not depreciated.
			Property, plant and equipment
			Network infrastructure and equipment	2 to 50 years
			Buildings	5 to 50 years
			Finite-life intangible assets
			Software	2 to 12 years
			Customer relationships	2 to 26 years
			Program and feature film rights	Up to 5 years
		L) INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTSOur financial statements incorporate our share of the results of our
			Investments are reviewed for impairment at each reporting period and we compare their recoverable amount to their carrying amount when there is an indication of impairment.
		associates and joint ventures using the equity method of accounting, except when the investment is classified as held for sale. Equity income from investments is recorded in Other income (expense) in the income statements.
			We recognize our share of the assets, liabilities, revenues and expenses of joint operations in accordance with the related contractual agreements.
		Investments in associates and joint ventures are recognized initially at cost and adjusted thereafter to include the company’s share of income or loss and comprehensive income or loss on an after-tax basis.
		M) BUSINESS COMBINATIONS AND GOODWILLBusiness combinations are accounted for using the acquisition method.
			on remeasurement is recognized in Other income (expense) in the income statements. The excess of the purchase consideration and any previously-held equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other income (expense) in the income statements immediately as a bargain purchase gain.
		The consideration transferred in a business combination is measured
		at fair value at the date of acquisition. Acquisition-related transaction costs are expensed as incurred and recorded in Severance, acquisition and other costs in the income statements.
		Identifiable assets and liabilities, including intangible assets, of acquired businesses are recorded at their fair values at the date of acquisition. When we acquire control of a business, any previously-held equity interest is remeasured to fair value and any gain or loss

		N) IMPAIRMENT OF NON-FINANCIAL ASSETSGoodwill and indefinite-life intangible assets are tested for impairment
			Impairment losses are recognized and measured as the excess of the carrying value of the assets over their recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs of disposal and its value in use. Previously recognized impairment losses, other than those attributable to goodwill, are reviewed for possible reversal at each reporting date and, if the asset’s recoverable amount has increased, all or a portion of the impairment is reversed.
		annually or when there is an indication that the asset may be impaired. Property, plant and equipment and finite-life intangible assets are tested for impairment if events or changes in circumstances, assessed at each reporting period, indicate that their carrying amount may not be recoverable. For the purpose of impairment testing, assets other than goodwill are grouped at the lowest level for which there are separately identifiable cash inflows.
Notes to consolidated	fi nancial statements
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	GOODWILL IMPAIRMENT TESTINGWe perform an annual test for goodwill impairment in the fourth quarter for each of our cash generating units (CGUs) or groups of CGUs to which goodwill is allocated, and whenever there is an indication that goodwill might be impaired.
		past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill.
	A CGU is the smallest identifiable group of assets that generates cash
	inflows that are independent of the cash inflows from other assets or groups of assets.
		An impairment charge is recognized in the income statements for any
		excess of the carrying value of goodwill over its recoverable amount. For purposes of impairment testing of goodwill, our CGUs or groups of CGUs correspond to our reporting segments as disclosed in Note 3,
	We identify any potential impairment by comparing the carrying value of a CGU or group of CGUs to its recoverable amount. The recoverable amount of a CGU or group of CGUs is the higher of its fair value less costs of disposal and its value in use. Both fair value less costs of disposal and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on
		Segmented information.
	O) FINANCIAL INSTRUMENTS AND CONTRACT ASSETSWe measure trade and other receivables, including wireless device financing plan receivables, at amortized cost using the effective interest
		Other financial liabilities, which include trade payables and accruals, compensation payable, obligations imposed by the Canadian Radio-television and Telecommunications Commission (CRTC), interest payable and long-term debt, are recorded at amortized cost using the effective interest method.
	method, net of any allowance for doubtful accounts.
	Our portfolio investments in equity securities are classified as fair value through other comprehensive income and are presented in our statements of financial position as Other non-current assets.
		We measure the allowance for doubtful accounts and impairment of contract assets based on an expected credit loss (ECL) model, which takes into account current economic conditions, historical information, and forward-looking information. We use the simplified approach for measuring losses based on the lifetime ECL for trade and other receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statements.
	These securities are recorded at fair value on the date of acquisition,
	including related transaction costs, and are adjusted to fair value at each reporting date. The corresponding unrealized gains and losses are recorded in Other comprehensive income from continuing operations in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified from Accumulated other comprehensive income to the deficit in the statements of financial position when realized.
		The cost of issuing debt is included as part of long-term debt and is
		accounted for at amortized cost using the effective interest method.
		The cost of issuing equity is reflected in the consolidated statements
		of changes in equity as a charge to the deficit.
	P) DERIVATIVE FINANCIAL INSTRUMENTSWe use derivative financial instruments to manage risks related to
		We assess the effectiveness of a derivative in managing an identified risk exposure when hedge accounting is initially applied, and on an ongoing basis thereafter. If a hedging relationship ceases to meet the qualifying criteria, we discontinue hedge accounting prospectively.
	changes in interest rates, foreign currency rates, commodity prices and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes.
		FAIR VALUE HEDGESWe use cross currency interest rate swaps to manage foreign currency and interest rate risk on certain U.S. dollar long-term debt. Changes in the fair value of these derivatives and the related debt are recognized in Other income (expense) in the income statements and offset each other, except for any ineffective portion of the hedging relationship.
	Derivatives that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas derivatives that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities.

		CASH FLOW HEDGESWe use foreign currency forward contracts and options to manage foreign currency risk relating to anticipated purchases denominated in foreign currencies. Changes in the fair value of these derivatives are recognized in our statements of comprehensive income, except for any ineffective portion of the hedging relationship, which is recognized in Other income (expense) in the income statements. Realized gains and losses in Accumulated other comprehensive income are reclassified to the income statements or to the initial cost of the non-financial asset in the same periods as the corresponding hedged transactions are recognized.
	HEDGE ACCOUNTING
	To qualify for hedge accounting, we document the relationship between
Notes to consolidated	fi nancial statements
	the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, commitment, or anticipated transaction.
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		We use foreign currency forward contracts to manage foreign currency risk relating to our U.S. dollar debt under our committed credit facilities and commercial paper program. Changes in the fair value of these derivatives are recognized in Other income (expense) in the income statements and offset the foreign currency translation adjustment on the related debt, except for any portion of the hedging relationship which is ineffective.	We use forward starting interest rate swaps to manage interest rate risk related to certain future debt issuances. Changes in the fair value of these derivatives are recognized in our statements of comprehensive income, except for any ineffective portion of the hedging relationship, which is recognized in Other income (expense) in the income statements. Realized gains and losses in Accumulated other comprehensive income are reclassified to Interest expense in the income statements over the term of the related debt.
		We use cross currency interest rate swaps to manage foreign currency and interest rate risk related to certain U.S. dollar long-term debt. Changes in the fair value of these derivatives are recognized in our statements of comprehensive income, except for amounts recorded in Other income (expense) in the income statements to offset the foreign currency translation adjustment on the related debt and any portion of the hedging relationship which is ineffective.
			DERIVATIVES USED AS ECONOMIC HEDGESWe use derivatives to manage cash flow exposures related to equity settled share-based payment plans and anticipated purchases in foreign currencies, interest rate risk related to preferred share dividend rate resets, interest rate risk related to anticipated debt issuances and commodity price risk related to the purchase cost of fuel. As these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Other income (expense).
		Q) POST-EMPLOYMENT BENEFIT PLANSDEFINED BENEFIT (DB) AND OTHER
			Post-employment benefit plans current service cost is included in Operating costs in the income statements. Interest on our post-employment benefit plan assets and obligations is recognized in Finance costs in the income statements and represents the accretion of interest on the assets and obligations under our post-employment benefit plans. The interest rate is based on market conditions that existed at the beginning of the year. Actuarial gains and losses for all post-employment benefit plans are recorded in Other comprehensive income from continuing operations in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit.
		POST-EMPLOYMENT BENEFIT (OPEB) PLANSWe maintain DB pension plans that provide pension benefits for certain employees and retirees. Benefits are based on the employee’s length of service and average rate of pay during the highest paid consecutive five years of service. Most employees are not required to contribute to the plans. Certain plans provide cost of living adjustments to help protect the income of retired employees against inflation.
		We are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods permitted by pension regulatory bodies. Contributions reflect actuarial assumptions about future investment returns, salary projections, future service and life expectancy.
			December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management’s assumptions at least every three years to determine the actuarial present value of the accrued DB pension plans and OPEB obligations. The most recent actuarial valuation of our significant pension plans was as at December 31, 2020.
		We provide OPEBs to some of our employees, including:
		• health care and life insurance benefits during retirement, which have
		been phased out for new retirees since December 31, 2016. Most of these OPEB plans are unfunded and benefits are paid when incurred.
		• other benefits, including workers’ compensation and medical benefits	DEFINED CONTRIBUTION (DC) PENSION PLANSWe maintain DC pension plans that provide certain employees with benefits. Under these plans, we are responsible for contributing a predetermined amount to an employee’s retirement savings, based on a percentage of the employee’s salary.
		to former or inactive employees, their beneficiaries and dependants, from the time their employment ends until their retirement starts, under certain circumstances
		We accrue our obligations and related costs under post-employment benefit plans, net of the fair value of the benefit plan assets. Pension and OPEB costs are determined using:
			We recognize a post-employment benefit plans service cost for DC pension plans when the employee provides service to the company, essentially coinciding with our cash contributions.
		• the projected unit credit method, prorated on years of service, which

		takes into account future pay levels
			When eligible, new employees can only participate in the DC pension plans.
		• a discount rate based on market interest rates of high-quality
		corporate fixed income investments with maturities that match the timing of benefits expected to be paid under the plans
		• management’s best estimate of pay increases, retirement ages of
Notes to consolidated	fi nancial statements		employees, expected healthcare costs and life expectancy
		We value post-employment benefit plan assets at fair value using current market values.
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	R) PROVISIONSProvisions are recognized when all the following conditions are met:
		Provisions are measured at the present value of the estimated expenditures expected to settle the obligation, if the effect of the time value of money is material. The present value is determined using current market assessments of the discount rate and risks specific to the obligation. The obligation increases as a result of the passage of time, resulting in interest expense which is recognized in Finance costs in the income statements.
	• the company has a present legal or constructive obligation based
	on past events
	• it is probable that an outflow of economic resources will be required
	to settle the obligation
	• the amount can be reasonably estimated
	S) ESTIMATES AND KEY JUDGMENTSWhen preparing the financial statements, management makes estimates
		REVENUE FROM CONTRACTS WITH CUSTOMERSWe are required to make estimates that affect the amount of revenue from contracts with customers, including estimating the stand-alone selling prices of products and services.
	and judgments relating to:
	• reported amounts of revenues and expenses• reported amounts of assets and liabilities• disclosure of contingent assets and liabilities
		IMPAIRMENT OF NON-FINANCIAL ASSETSWe make a number of estimates when calculating recoverable amounts using discounted future cash flows or other valuation methods to test for impairment. These estimates include the assumed growth rates for future cash flows, the number of years used in the cash flow model and the discount rate.
	We base our estimates on a number of factors, including historical experience, current events, including but not limited to the COVID-19 pandemic, and actions that the company may undertake in the future, as well as other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below.
		DEFERRED TAXES
		The amounts of deferred tax assets and liabilities are estimated with
	ESTIMATESUSEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT AND FINITE-LIFE INTANGIBLE ASSETSProperty, plant and equipment represent a significant proportion of our total assets. Changes in technology or our intended use of these assets, as well as changes in business prospects or economic and industry factors, may cause the estimated useful lives of these assets to change.
		consideration given to the timing, sources and amounts of future taxable income.
		LEASES
		The application of IFRS 16 requires us to make estimates that affect the
		measurement of right-of-use assets and liabilities, including determining the appropriate discount rate used to measure lease liabilities. Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using our incremental borrowing rate, unless the rate implicit in the lease is readily determinable. Our incremental borrowing rate is derived from publicly available risk-free interest rates, adjusted for applicable credit spreads and lease terms. We apply a single incremental borrowing rate to a portfolio of leases with similar characteristics.
	POST-EMPLOYMENT BENEFIT PLANS
	The amounts reported in the financial statements relating to DB pension
	plans and OPEBs are determined using actuarial calculations that are based on several assumptions.
	The actuarial valuation uses management’s assumptions for, among
	other things, the discount rate, life expectancy, the rate of compensation increase, trends in healthcare costs and expected average remaining years of service of employees.
		FAIR VALUE OF FINANCIAL INSTRUMENTSCertain financial instruments, such as investments in equity securities, derivative financial instruments and certain elements of borrowings, are carried in the statements of financial position at fair value, with changes in fair value reflected in the income statements and the statements of comprehensive income. Fair values are estimated by reference to published price quotations or by using other valuation techniques that may include inputs that are not based on observable market data, such as discounted cash flows and earnings multiples.
	The most significant assumptions used to calculate the net post-
	employment benefit plans cost are the discount rate and life expectancy.
	The discount rate is based on the yield on long-term, high-quality

	corporate fixed income investments, with maturities matching the estimated cash flows of the post-employment benefit plans. Life expectancy is based on publicly available Canadian mortality tables and is adjusted for the company’s specific experience.
Notes to consolidated	fi nancial statements
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		CONTINGENCIESIn the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. Pending claims and legal proceedings represent a potential cost to our business. We estimate the amount of a loss by analyzing potential outcomes and assuming various litigation and settlement strategies, based on information that is available at the time.	LEASES
			The application of IFRS 16 requires us to make judgments that affect
			the measurement of right-of-use assets and liabilities. A lease contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception of the contract, we assess whether the contract contains an identified asset, whether we have the right to obtain substantially all of the economic benefits from use of the asset and whether we have the right to direct how and for what purpose the asset is used. In determining the lease term, we include periods covered by renewal options when we are reasonably certain to exercise those options. Similarly, we include periods covered by termination options when we are reasonably certain not to exercise those options. To assess if we are reasonably certain to exercise an option, we consider all facts and circumstances that create an economic incentive to exercise renewal options (or not exercise termination options). Economic incentives include the costs related to the termination of the lease, the significance of any leasehold improvements and the importance of the underlying assets to our operations.
		ONEROUS CONTRACTSA provision for onerous contracts is recognized when the unavoidable costs of meeting our obligations under a contract exceed the expected benefits to be received under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of completing the contract.
		JUDGMENTSPOST-EMPLOYMENT BENEFIT PLANS
		The determination of the discount rate used to value our post-
		employment benefit obligations requires judgment. The rate is set by reference to market yields of long-term, high-quality corporate fixed income investments at the beginning of each fiscal year. Significant judgment is required when setting the criteria for fixed income investments to be included in the population from which the yield curve is derived. The most significant criteria considered for the selection of investments include the size of the issue and credit quality, along with the identification of outliers, which are excluded.
			REVENUE FROM CONTRACTS WITH CUSTOMERS
			The identification of performance obligations within a contract and
			the timing of satisfaction of performance obligations under long-term contracts requires judgment. Additionally, the determination of costs to obtain a contract, including the identification of incremental costs, also requires judgment.
			CGUs
		INCOME TAXES	The determination of CGUs or groups of CGUs for the purpose of
			impairment testing requires judgment.
		The calculation of income taxes requires judgment in interpreting tax
		rules and regulations. There are transactions and calculations for which the ultimate tax determination is uncertain. Our tax filings are also subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities.
			CONTINGENCIES
			The determination of whether a loss is probable from claims and legal
			proceedings and whether an outflow of resources is likely requires judgment.
		Management judgment is used to determine the amounts of deferred tax assets and liabilities to be recognized. In particular, judgment is required when assessing the timing of the reversal of temporary differences to which future income tax rates are applied.
		T) FUTURE CHANGES TO ACCOUNTING STANDARDS
		The following amended accounting standards issued by the IASB have an effective date after December 31, 2021 and have not yet been adopted
		by BCE.
		STANDARD		DESCRIPTION	IMPACT	EFFECTIVE DATE
		Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions, Contingent Liabilities and Contingent Assets		These amendments clarify which	These amendments will not	Effective for annual reporting periods beginning on or after January 1, 2022.
				costs should be included in determining the cost of fulfilling a contract when assessing whether a contract is onerous.	have a significant impact on our financial statements.

		Disclosure of Accounting Policies –		These amendments require that	We are currently assessing the impact of these amendments on the disclosure of our accounting policies.	Effective for annual reporting periods beginning on or after January 1, 2023. Early application is permitted.
		Amendments to IAS 1 – Presentation		entities disclose material accounting policies, as defined, instead of significant accounting policies.
		of Financial Statements
Notes to consolidated	fi nancial statements
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	Note 3 \| Segmented informationThe accounting policies used in our segment reporting are the same as
		Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers as well as consumer electronics products across Canada.
	those we describe in Note 2, Significant accounting policies. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.
		Our Bell Wireline segment provides data, including Internet access and IPTV, local telephone, long distance, as well as other communication services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers.
	Accordingly, we operate and manage our segments as strategic business
	units organized by products and services. Segments negotiate sales with each other as if they were unrelated parties.
	We measure the performance of each segment based on adjusted EBITDA, which is equal to operating revenues less operating costs for the segment. Substantially all of our severance, acquisition and other costs, depreciation and amortization, finance costs and other expense are managed on a corporate basis and, accordingly, are not reflected in segment results.
		Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and OOH advertising services to customers national y across Canada.
	Substantially all of our operations and assets are located in Canada.
	SEGMENTED INFORMATION
				BELL	BELL	BELL	INTER-SEGMENT
	FOR THE YEAR ENDED DECEMBER 31, 2021		NOTE	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS	BCE
	Operating revenues
	External service revenues			6,355	11,314	2,681			–	20,350
	Inter-segment service revenues	45			358	355			(758)	–
	Operating service revenues			6,400	11,672	3,036			(758)	20,350
	External product revenues			2,593	506	–			–	3,099
	Inter-segment product revenues	6			–	–			(6)	–
	Operating product revenues			2,599	506	–			(6)	3,099
	Total external revenues			8,948	11,820	2,681			–	23,449
	Total inter-segment revenues	51			358	355			(764)	–
	Total operating revenues			8,999	12,178	3,036			(764)	23,449
	Operating costs		4	(5,146)	(6,863)	(2,311)			764	(13,556)
	Adjusted EBITDA (1)			3,853	5,315	725			–	9,893
	Severance, acquisition and other costs		5					(209)
	Depreciation and amortization		17, 19					(4,609)
	Finance costs
	Interest expense		6					(1,082)
	Interest on post-employment benefit obligations		27					(20)
	Impairment of assets		7					(197)
	Other income		8					160
	Income taxes							(1,044)
			9
	Net earnings							2,892
	Goodwill		22	3,046	4,580	2,946			–	10,572
	Indefinite-life intangible assets		19	6,148	1,692	1,935			–	9,775
	Capital expenditures			1,120	3,597	120			–	4,837
Notes to consolidated	fi nancial statements
	(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
	146 \| BCE InC. 2021 AnnuAl REpoRt

				BELL	BELL	BELL	INTER-SEGMENT
		FOR THE YEAR ENDED DECEMBER 31, 2020	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS				BCE
		Operating revenues
		External service revenues		6,122	11,341	2,369		–	19,832
		Inter-segment service revenues		47	321	381		(749)	–
		Operating service revenues		6,169	11,662	2,750		(749)	19,832
		External product revenues		543	–					–	3,051
		Inter-segment product revenues		1	–					(7)	–
		Operating product revenues		544	–					(7)	3,051
		Total external revenues		8,630	11,884	2,369		–	22,883
		Total inter-segment revenues		53	322	381		(756)	–
		Total operating revenues		8,683	12,206	2,750		(756)	22,883
		Operating costs	4	(5,017)	(6,960)	(2,055)		756	(13,276)
		Adjusted EBITDA (1)		3,666	5,246	695		–	9,607
		Severance, acquisition and other costs	5				(116)
		Depreciation and amortization	17, 19				(4,404)
		Finance costs
		Interest expense	6				(1,110)
		Interest on post-employment benefit obligations	27				(46)
		Impairment of assets	7				(472)
		Other expense	8				(194)
		Income taxes	9				(792)
		Net earnings from continuing operations					2,473
		Net earnings from discontinued operations	37				226
		Net earnings					2,699
		Goodwill	22	3,046	4,612	2,946		–	10,604
		Indefinite-life intangible assets	19	4,063	1,692	2,085		–	7,840
		Capital expenditures		916	3,161	125		–	4,202
		(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
		REVENUES BY SERVICES AND PRODUCTS
		The following table presents our revenues disaggregated by type of services and products.
		FOR THE YEAR ENDED DECEMBER 31						2021	2020
		Services (1)
		Wireless						6,355	6,122
		Wireline data						7,871	7,691
		Wireline voice						3,154	3,402
		Media						2,681	2,369
		Other wireline services						289	248
		Total services						20,350	19,832
		Products (2)
		Wireless						2,593	2,508
		Wireline data						463	494
		Wireline equipment and other						43	49
fi nancial statements		Total products						3,099	3,051
		Total operating revenues						23,449	22,883
		(1) Our service revenues are generally recognized over time.(2) Our product revenues are generally recognized at a point in time.
	BCE InC. 2021 AnnuAl REpoRt \| 147

	Note 4 \| Operating costs
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Labour costs
	Wages, salaries and related taxes and benefits (1)		(4,236)	(4,108)
	Post-employment benefit plans service cost (net of capitalized amounts)	(266)	(269)
	Other labour costs (2)		(990)	(975)
	Less:
	Capitalized labour		1,068	1,007
	Total labour costs		(4,424)	(4,345)
	Cost of revenues (3)		(7,290)	(6,967)
	Other operating costs (4)		(1,842)	(1,964)
	Total operating costs		(13,556)	(13,276)
	(1) Costs reported in 2020 are net of amounts from the Canada Emergency Wage Subsidy, a wage subsidy program offered by the federal government to eligible employers as a result
	of the COVID-19 pandemic.
	(2) Other labour costs include contractor and outsourcing costs.(3) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.(4) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service
	fees and rent.
	Research and development expenses of $57 million and $47 million are included in operating costs for 2021 and 2020, respectively.
	Note 5 \| Severance, acquisition and other costs
	FOR THE YEAR ENDED DECEMBER 31		2021	2020
	Severance		(171)	(35)
	Acquisition and other		(38)	(81)
	Total severance, acquisition and other costs		(209)	(116)
	SEVERANCE COSTSSeverance costs consist of charges related to involuntary and voluntary employee terminations.
	ACQUISITION AND OTHER COSTSAcquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions,
	employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations, costs relating to litigation and regulatory decisions, when they are significant, and other costs.
	Note 6 \| Interest expense

	FOR THE YEAR ENDED DECEMBER 31		2021	2020
	Interest expense on long-term debt		(1,088)	(1,072)
	Interest expense on other debt		(57)	(87)
	Capitalized interest		63	49
	Total interest expense		(1,082)	(1,110)
Notes to consolidated	fi nancial statements
	Included in interest expense on long-term debt is interest on lease liabilities of $177 mil ion and $199 mil ion for 2021 and 2020, respectively.				Capitalized interest was calculated using an average rate of 3.83% and
					3.95% for 2021 and 2020, respectively, which represents the weighted
					average interest rate on our outstanding long-term debt.
	148 \| BCE InC. 2021 AnnuAl REpoRt

		Note 7 \| Impairment of assets
		2021During the second quarter of 2021, we identified indicators of impairment for our Bell Media radio markets, notably a decline in advertising revenue and an increase in the discount rate resulting from the impact of the ongoing COVID-19 pandemic. Accordingly, impairment testing was required for our group of radio CGUs.	2020During the second quarter of 2020, we identified indicators of impairment for certain of our Bell Media TV services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall increases in discount rates resulting from the economic impact of the COVID-19 pandemic. Accordingly, impairment testing was required for certain groups of CGUs as well as for goodwill.
		During Q2 2021, we recognized $163 million of impairment charges for various radio markets within our Bell Media segment. These charges included $150 million allocated to indefinite-life intangible assets for broadcast licences, and $13 million to property, plant and equipment mainly for buildings and network infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2021 to December 31, 2026, using a discount rate of 8.5% and a perpetuity growth rate of (2.0%), as well as market multiple data from public companies and market transactions. After impairments, the carrying value of our group of radio CGUs was $235 million.
			During Q2 2020, we recognized $452 million of impairment charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million allocated to indefinite-life intangible assets for broadcast licences, $146 million allocated to finite-life intangible assets, mainly for program and feature film rights, and $15 million to property, plant and equipment for network and infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2020 to December 31, 2025, using discount rates of 8.0% to 9.5% and a perpetuity growth rate of (1.0%) to nil, as well as market multiple data from public companies and market transactions. After impairments, the carrying value of these CGUs was $942 million.
		There was no impairment of Bell Media goodwill. See Note 22, Goodwill,
		for further details.
			There was no impairment of Bell Media goodwill. See Note 22, Goodwill,
			for further details.
		Note 8 \| Other income (expense)
		FOR THE YEAR ENDED DECEMBER 31		NOTE	2021	2020
		Net mark-to-market gains (losses) on derivatives used to economically hedge equity settled
		share-based compensation plans			278	(51)
		Early debt redemption costs	25				(53)	(50)
		Equity (losses) gains from investments in associates and joint ventures	20
		(Loss) gain on investment			(49)	43
		Operations			(46)	(38)
		Losses on retirements and disposals of property, plant and equipment and intangible assets			(24)	(83)
		(Losses) gains on investments			(6)	3
		Other			60	(18)
		Total other income (expense)			160	(194)
		EQUITY (LOSSES) GAINS FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURESWe recorded a (loss) gain on investment of ($49 million) and $43 million in 2021 and 2020, respectively, related to equity (losses) gains on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each
		reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.
Notes to consolidated	fi nancial statements
		LOSSES ON RETIREMENTS AND DISPOSALS OF PROPERTY, PLANT AND EQUIPMENT
		AND INTANGIBLE ASSETS
		In 2020, we recorded a loss of $45 million due to a change in strategic direction related to the ongoing development of some of our TV platform assets under construction.
	BCE InC. 2021 AnnuAl REpoRt \| 149

	Note 9 \| Income taxesThe following table shows the significant components of income taxes deducted from net earnings from continuing operations.
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Current taxes
	Current taxes	(872)	(776)
	Uncertain tax positions	12	26
	Change in estimate relating to prior periods	42	32
	Previously unrecognized tax benefits	–	40
	Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(184)	(107)
	Change in estimate relating to prior periods	(40)	(26)
	Recognition and utilization of loss carryforwards	(21)	15
	Previously unrecognized tax benefits	15	–
	Effect of change in provincial corporate tax rate	–	9
	Uncertain tax positions	4	(5)
	Total income taxes	(1,044)	(792)
	The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income
	tax rate of 26.8% for 2021 and 26.9% for 2020.
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Net earnings from continuing operations	2,892	2,473
	Add back income taxes	1,044	792
	Earnings from continuing operations before income taxes	3,936	3,265
	Applicable statutory tax rate	26.8%	26.9%
	Income taxes computed at applicable statutory rates	(1,055)	(878)
	Non-taxable portion of (losses) gains on investments	(1)	1
	Uncertain tax positions	16	21
	Effect of change in provincial corporate tax rate	–	9
	Change in estimate relating to prior periods	2	6
	Non-taxable portion of equity (losses) gains	(26)	2
	Previously unrecognized tax benefits	15	47
	Other	5	–
	Total income taxes from continuing operations	(1,044)	(792)
	Average effective tax rate	26.5%	24.3%
	The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.
				2021	2020
					OTHER	OTHER
						COMPREHENSIVE		COMPREHENSIVE
	FOR THE YEAR ENDED DECEMBER 31				INCOME		DEFICIT	INCOME	DEFICIT
	Current taxes			–			1	–	14
	Deferred taxes			(677)			30	(172)	(20)
	Total income taxes (expense) recovery			(677)			31	(172)	(6)
Notes to consolidated	fi nancial statements
	150 \| BCE InC. 2021 AnnuAl REpoRt

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized

in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.

PROPERTY,

PLANT AND

NON-

EQUIPMENT

CAPITAL

POST-

INDEFINITE-

AND

LOSS

EMPLOYMENT

LIFE

FINITE-LIFE

CRTC

CARRY-

BENEFIT

INTANGIBLE

TANGIBLE

NET DEFERRED TAX LIABILITY

FORWARDS

PLANS

ASSETS

BENEFITS

OTHER

TOTAL

January 1, 2020

364

(1,763)

(1,779)

(323)

(3,463)

Income statement

(426)

(7)

255

(114)

Business acquisitions

–

Other comprehensive income

–

(184)

–

(172)

Deficit

–

(20)

Discontinued operations

–

Other

–

December 31, 2020

185

(1,717)

(2,175)

–

(66)

(3,704)

Income statement

(10)

(253)

–

(226)

Business acquisitions

–

(9)

–

(4)

Other comprehensive income

–

(653)

–

(24)

(677)

Deficit

–

Reclassified to liabilities held for sale

–

Other

–

December 31, 2021

(466)

(1,701)

(2,417)

–

(53)

(4,574)

At December 31, 2021, BCE had $266 mil ion of non-capital loss

At December 31, 2020, BCE had $357 million of non-capital loss

carryforwards. We:

• recognized a deferred tax asset of $63 million for $249 million of the

• recognized a deferred tax asset of $69 million for $263 million of the

non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2024 to 2041.

non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2025 to 2040.

• did not recognize a deferred tax asset for $17 million of non-capital

• did not recognize a deferred tax asset for $94 million of non-capital

loss carryforwards. This balance expires in varying annual amounts from 2023 to 2041.

loss carryforwards. This balance expires in varying annual amounts from 2024 to 2038.

At December 31, 2021, BCE had $69 million of unrecognized capital loss

At December 31, 2020, BCE had $64 million of unrecognized capital loss

carryforwards, which can be carried forward indefinitely.

Note 10 | Earnings per shareThe following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable

to common shareholders.

FOR THE YEAR ENDED DECEMBER 31

2021

2020

Net earnings from continuing operations attributable to common shareholders – basic

2,709

2,272

Net earnings from discontinued operations attributable to common shareholders – basic

–

226

Net earnings attributable to common shareholders – basic

2,709

2,498

Dividends declared per common share (in dollars)

3.50

3.33

Weighted average number of common shares outstanding (in millions)

Weighted average number of common shares outstanding – basic

906.3

904.3

Assumed exercise of stock options (1)

0.4

0.1

Weighted average number of common shares outstanding – diluted (in millions)

906.7

904.4

Notes to consolidated

fi nancial statements

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the

exercise price is higher than the average market value of a BCE common share. The number of excluded options was 3,302,850 in 2021 and 10,783,936 in 2020.

BCE InC. 2021 AnnuAl REpoRt | 151

	Note 11 \| Trade and other receivables
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Trade receivables (1)		3,843	3,414
	Allowance for revenue adjustments		(169)	(185)
	Allowance for doubtful accounts	(136)	(149)
	Current tax receivable		121	92
	Commodity taxes receivable		102	122
	Other accounts receivable		188	234
	Total trade and other receivables		3,949	3,528
	(1) The details of securitized trade receivables are set out in Note 24, Debt due within one year.
	WIRELESS DEVICE FINANCING PLAN RECEIVABLESWireless device financing plan receivables represent amounts owed to us under financing agreements that have not yet been billed. The
	current portion of these balances is included in Trade receivables within the Trade and other receivables line item on our statements of financial position and the long-term portion is included within the Other non-current assets line item on our statements of financial position.
	The following table summarizes our wireless device financing plan receivables at December 31, 2021.
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Current		1,040	649
	Non-current	387	399
	Total wireless device financing plan receivables (1)		1,427	1,048
	(1) Excludes allowance for doubtful accounts and allowance for revenue adjustments on the current portion of $44 million and $28 million at December 31, 2021 and December 31, 2020,
	respectively, and allowance for doubtful accounts and allowance for revenue adjustments on the non-current portion of $15 million and $17 million at December 31, 2021 and December 31,
	2020, respectively.
	Note 12 \| Inventory
	FOR THE YEAR ENDED DECEMBER 31		2021	2020
	Wireless devices and accessories		189	189
	Merchandise and other		293	250
	Total inventory		482	439
	The total amount of inventory subsequently recognized as an expense in cost of revenues was $3,080 million and $2,927 million for 2021 and
	2020, respectively.

Notes to consolidated	fi nancial statements
	152 \| BCE InC. 2021 AnnuAl REpoRt

		Note 13 \| Contract assets and liabilitiesThe table below provides a reconciliation of the significant changes in the contract assets and the contract liabilities balances.
			CONTRACT ASSETS (1)	CONTRACT LIABILITIES
		FOR THE YEAR ENDED DECEMBER 31			2021			2020	2021	2020
		943			1,644	959			890
		Revenue recognized included in contract liabilities
		–	–			(678)			(643)
		Revenue recognized from contract liabilities included
		141			188	–			–
		–	–			752			688
		Increase in contract liabilities included in contract assets
		(115)			(186)	–			–
		Increase in contract assets from revenue recognized
		664			834	–			–
		(859)			(1,376)	50			51
		–	–			13			–
		(89)			(145)	4			19
		Discontinued operations			–	(1)			–	–
		Reclassified to liabilities held for sale			–	–			(7)	–
		(20)			(15)	(48)			(46)
		665			943	1,045			959
		(1) Net of allowance for doubtful accounts of $20 million and $59 million at December 31, 2021 and December 31, 2020, respectively. See Note 29, Financial and capital management, for
		additional details.
		Note 14 \| Contract costsThe table below provides a reconciliation of the contract costs balance.
					NOTE	2021			2020
		Opening balance, January 1		764			783
		Incremental costs of obtaining a contract and contract fulfillment costs		635			535
		Amortization included in operating costs		(504)			(552)
		Acquisitions		3			–
		Reclassified to assets held for sale	16			(4)			–
		Discontinued operations	37			–			(2)
		Ending balance, December 31		894			764
		Contract costs are amortized over periods ranging from 12 to 84 months.
		Note 15 \| Restricted cash
		In Q1 2021, we entered into a $107 million subsidy agreement with the Government of Québec to facilitate the deployment of high-speed Internet in certain areas of the province of Québec by September 2022. In 2021, we received $97 million of the total committed funding, with the remainder expected upon completion of the project.						As a result, we recorded $82 million in Other current assets as restricted
							cash with a corresponding liability in Trade payables and other liabilities on the statement of financial position at December 31, 2021. Additionally, we recorded $15 million as a reduction of capital expenditures on the consolidated statements of cash flows (statements of cash flows).
Notes to consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 153

	Note 16 \| Assets held for sale
	On January 13, 2022, the execution of an agreement to sell BCE’s wholly-owned subsidiary 6362222 Canada Inc. (Createch) was announced by the purchaser. Createch carries on a consulting business included in our Bell Wireline segment that specializes in the optimization of business processes and implementation of technological solutions. The sale is for cash proceeds of $55 million.
		2021
			Trade and other receivables	29
			Contract costs	4
			Prepaid expenses	1
			Property, plant and equipment	2
			Intangible assets	1
	As a result, we have presented the assets and liabilities of Createch as		Other non-current assets	7
	held for sale in our statement of financial position at December 31, 2021, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective December 2021.		Goodwill	6
			Total assets held for sale	50
			Trade payables and other liabilities	18
			Contract liabilities	7
	Our results for the years ended December 31, 2021 and 2020 included $64 million and $61 million of revenue and $5 million and $2 million of net earnings, respectively, related to the assets held for sale.		Deferred tax liabilities	5
			Other non-current liabilities	5
			Total liabilities held for sale	35
	The following table summarizes the carrying value of the assets and
			Net assets held for sale	15
	liabilities that are classified as held for sale at December 31, 2021.
			Subsequent to year end, on March 1, 2022, we completed the sale for
			cash proceeds of $55 million and expect to record a gain on sale of approximately $37 million (net of taxes of $3 million) in Q1 2022.
	Note 17 \| Property, plant and equipment
			NETWORK
			INFRASTRUCTURE		LAND AND	ASSETS UNDER
	FOR THE YEAR ENDED DECEMBER 31, 2021			NOTE	AND EQUIPMENT (1)		BUILDINGS (1)	CONSTRUCTION	TOTAL
	COST
	January 1, 2021		69,477		7,832	1,889	79,198
	Additions						2,643	326	2,515	5,484
	Acquired through business combinations						2	12			–	14
	Transfers						358	771	(2,163)	(1,034)
	Retirements and disposals						(1,550)	(37)			–	(1,587)
	Impairment losses recognized in earnings			7			(4)	(15)			–	(19)
	Reclassified to assets held for sale			16			(3)		–	–	(3)
	December 31, 2021		70,923		8,889	2,241	82,053
	ACCUMULATED DEPRECIATION
	January 1, 2021		47,563		4,122			–	51,685
	Depreciation						3,220	407			–	3,627
	Retirements and disposals						(1,515)	(27)			–	(1,542)
	Transfers						(95)	191			–	96
	Reclassified to assets held for sale			16			(1)		–	–	(1)

	Other						(50)		3	–	(47)
	December 31, 2021		49,122		4,696			–	53,818
	NET CARRYING AMOUNT
	January 1, 2021		21,914		3,710	1,889	27,513
	December 31, 2021		21,801		4,193	2,241	28,235
Notes to consolidated	fi nancial statements
	(1) Includes right-of-use assets. See Note 18, Leases, for additional details.
	154 \| BCE InC. 2021 AnnuAl REpoRt

				NETWORK
				INFRASTRUCTURE	LAND AND	ASSETS UNDER
		FOR THE YEAR ENDED DECEMBER 31, 2020	AND EQUIPMENT (1)	BUILDINGS (1)	CONSTRUCTION					TOTAL
		COST
		January 1, 2020		67,597	8,079		1,687	77,363
		Additions		2,414	247		2,071	4,732
		Acquired through business combinations		5						–	7
		Transfers		964	49		(1,825)	(812)
		Retirements and disposals		(1,348)	(54)		(32)	(1,434)
		Impairment losses recognized in earnings	7	(9)						(1)	(27)
		Discontinued operations	37	(135)	(485)		(11)	(631)
		December 31, 2020		69,477	7,832		1,889	79,198
		ACCUMULATED DEPRECIATION
		January 1, 2020		45,914	3,813		–	49,727
		Depreciation		3,035	440		–	3,475
		Retirements and disposals		(1,268)	(54)		–	(1,322)
		Discontinued operations	37	(70)	(77)		–	(147)
		Other		–						–	(48)
		December 31, 2020		47,563	4,122		–	51,685
		NET CARRYING AMOUNT
		January 1, 2020		21,683	4,266		1,687	27,636
		December 31, 2020		21,914	3,710		1,889	27,513
		(1) Includes right-of-use assets. See Note 18, Leases, for additional details.
		Note 18 \| Leases
		RIGHT-OF-USE ASSETSBCE’s significant right-of-use assets under leases are satellites, office premises, land, cellular tower sites, retail outlets and OOH advertising spaces. Right-of-use assets are presented in Property, plant and equipment in the statements of financial position.
					NETWORK
					INFRASTRUCTURE		LAND AND
		FOR THE YEAR ENDED DECEMBER 31, 2021		NOTE	AND EQUIPMENT	BUILDINGS					TOTAL
		COST
		January 1, 2021			3,690		2,995	6,685
		Additions			574		214	788
		Transfers			(977)		722	(255)
		–						12	12
		Lease terminations			(47)		(6)	(53)
		Impairment losses recognized in earnings						–				(6)	(6)
		December 31, 2021			3,240		3,931	7,171
		ACCUMULATED DEPRECIATION
		January 1, 2021			1,473		1,086	2,559

		Depreciation			419		275	694
		Transfers			(310)		177	(133)
		Lease terminations			(28)		–	(28)
		December 31, 2021			1,554		1,538	3,092
		NET CARRYING AMOUNT
Notes to consolidated	fi nancial statements
		January 1, 2021			2,217		1,909	4,126
		December 31, 2021			1,686		2,393	4,079
	BCE InC. 2021 AnnuAl REpoRt \| 155

			NETWORK
			INFRASTRUCTURE	LAND AND
	FOR THE YEAR ENDED DECEMBER 31, 2020	AND EQUIPMENT	BUILDINGS	TOTAL
	COST
	January 1, 2020		3,609	2,933	6,542
	Additions		470	200	670
	Transfers		(360)	(2)	(362)
	Acquired through business combinations		–			4	4
	Lease terminations		(20)	(10)	(30)
	Impairment losses recognized in earnings	(1)	(9)	(10)
	Discontinued operations	(8)	(121)	(129)
	December 31, 2020		3,690	2,995	6,685
	ACCUMULATED DEPRECIATION
	January 1, 2020		1,301	817	2,118
	Depreciation		377	294	671
	Transfers		(199)			–	(199)
	Lease terminations		(2)	(6)	(8)
	Discontinued operations	(4)	(19)	(23)
	December 31, 2020		1,473	1,086	2,559
	NET CARRYING AMOUNT
	January 1, 2020		2,308	2,116	4,424
	December 31, 2020		2,217	1,909	4,126
	LEASES IN NET EARNINGS FROM CONTINUING OPERATIONS
	The following table provides the expenses related to leases recognized in net earnings from continuing operations.
	FOR THE YEAR ENDED DECEMBER 31			2021	2020
	Interest expense on lease liabilities			177	199
	Variable lease payment expenses not included in the measurement of lease liabilities			122	150
	Expenses for leases of low value assets			60	60
	Expenses for short-term leases			31	31
	LEASES IN THE STATEMENTS OF CASH FLOWS
	Total cash outflow related to leases was $1,202 million and $1,219 million for the period ended December 31, 2021 and December 31, 2020, respectively.
	ADDITIONAL DISCLOSURESSee Note 24, Debt due within one year, and Note 25, Long-term debt, for
							See Note 29, Financial and capital management, for a maturity analysis
	lease liabilities balances included in the statements of financial position.						of lease liabilities.
							See Note 34, Commitments and contingencies, for leases committed
							but not yet commenced as at December 31, 2021.
Notes to consolidated	fi nancial statements
	156 \| BCE InC. 2021 AnnuAl REpoRt

		Note 19 \| Intangible assets
			FINITE-LIFE	INDEFINITE-LIFE
							CUSTOMER	PROGRAM	SPECTRUM							TOTAL
		FOR THE YEAR ENDED					RELATION-	AND FEATURE	AND OTHER	BROADCAST										INTANGIBLE
		DECEMBER 31, 2021			SOFTWARE	SHIPS	FILM RIGHTS				OTHER	TOTAL	BRANDS	LICENCES (1)	LICENCES									TOTAL	ASSETS
		COST
		January 1, 2021				9,169	1,736	645				469	12,019	2,409	3,701	1,730									7,840	19,859
		Additions				361	–	1,034				19	1,414	–	2,085								–	2,085	3,499
		Acquired through business
		combinations					–	–										–	52	52	–	–											–	–	52
		Transfers				1,154	–										–	(125)	1,029	–	–											–	–	1,029
		Retirements and disposals				(1,089)	–										–	(11)	(1,100)	–	–											–	–	(1,100)
		Impairment losses
		recognized in earnings			7	(28)	–										–	–	(28)	–	–	(150)									(150)	(178)
		Amortization included in
		operating costs					–	(1,048)				–	(1,048)	–	–											–	–	(1,048)
		Reclassified to assets
		held for sale			16	(2)	–										–	–	(2)	–	–											–	–	(2)
		December 31, 2021				9,565	1,736	631				404	12,336	2,409	5,786	1,580									9,775	22,111
		ACCUMULATED AMORTIZATION
		January 1, 2021				5,644	878						–	235	6,757	–	–											–	–	6,757
		Amortization				851	91										–	40	982	–	–											–	–	982
		Retirements and disposals				(1,087)	–										–	(11)	(1,098)	–	–											–	–	(1,098)
		Transfers					–	–										–	(99)	(99)	–	–											–	–	(99)
		Reclassified to assets
		held for sale			16	(1)	–										–	–	(1)	–	–											–	–	(1)
		December 31, 2021				5,407	969						–	165	6,541	–	–											–	–	6,541
		NET CARRYING AMOUNT
		January 1, 2021				3,525	858	645				234	5,262	2,409	3,701	1,730									7,840	13,102
		December 31, 2021				4,158	767	631				239	5,795	2,409	5,786	1,580									9,775	15,570
		(1) On December 17, 2021, Bell Mobility Inc. (Bell Mobility) acquired 271 licences in a number of urban and rural markets for 678 million megahertz per population (MHz-Pop) of 3500 MHz
		spectrum for $2.07 billion.
			FINITE-LIFE	INDEFINITE-LIFE
							CUSTOMER	PROGRAM	SPECTRUM							TOTAL
		FOR THE YEAR ENDED					RELATION-	AND FEATURE	AND OTHER	BROADCAST										INTANGIBLE
		DECEMBER 31, 2020			SOFTWARE	SHIPS	FILM RIGHTS				OTHER	TOTAL	BRANDS	LICENCES	LICENCES									TOTAL	ASSETS
		COST
		January 1, 2020				10,522	2,017	716				489	13,744	2,409	3,586	2,026									8,021	21,765
		Additions				344	–	874				41	1,259	–	116								–	116	1,375
		Acquired through business
		combinations					1	10				–	11	–	–											–	–	11
		Transfers				810	–										–	–	810	–	–											–	–	810
		Retirements and disposals				(2,479)	–										–	(36)	(2,515)	–	–											–	–	(2,515)
		Impairment losses
		recognized in earnings			(13)	–	(110)				(25)	(148)	–	(1)	(296)									(297)	(445)
		Amortization included in
		operating costs					–	(845)				–	(845)	–	–											–	–	(845)
		Discontinued operations			37	(16)	(281)						–	–	(297)	–	–											–	–	(297)
		December 31, 2020				9,169	1,736	645				469	12,019	2,409	3,701	1,730									7,840	19,859
		ACCUMULATED AMORTIZATION
Notes to consolidated	fi nancial statements		January 1, 2020				7,345	839						–	229	8,413	–	–											–	–	8,413
		Amortization				787	99										–	43	929	–	–											–	–	929
		Retirements and disposals				(2,480)	–										–	(37)	(2,517)	–	–											–	–	(2,517)
		Discontinued operations			37	(8)	(60)						–	–	(68)	–	–											–	–	(68)
		December 31, 2020				5,644	878						–	235	6,757	–	–											–	–	6,757
		NET CARRYING AMOUNT
		January 1, 2020				3,177	1,178	716				260	5,331	2,409	3,586	2,026									8,021	13,352
		December 31, 2020				3,525	858	645				234	5,262	2,409	3,701	1,730									7,840	13,102
	BCE InC. 2021 AnnuAl REpoRt \| 157

	Note 20 \| Investments in associates and joint venturesThe following tables provide summarized financial information with respect to BCE’s associates and joint ventures. For more details on our
	associates and joint ventures, see Note 35, Related party transactions.
	STATEMENTS OF FINANCIAL POSITION
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Assets	3,852	3,953
	Liabilities	(2,523)	(2,448)
	Total net assets	1,329	1,505
	BCE’s share of net assets	668	756
	INCOME STATEMENTS
	FOR THE YEAR ENDED DECEMBER 31			NOTE	2021	2020
	Revenues	1,855	1,359
	Expenses	(2,047)	(1,351)
	Total net (losses) income	(192)	8
	BCE’s share of net (losses) income			8	(95)	5
	Note 21 \| Other non-current assets
	FOR THE YEAR ENDED DECEMBER 31			NOTE	2021	2020
	Long-term wireless device financing plan receivables			11	387	399
	Derivative assets			29	274	92
	Long-term receivables	221	128
	Investments (1)			29	185	167
	Publicly-traded and privately-held investments			29	183	126
	Other	56	89
	Total other non-current assets	1,306	1,001
	(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.
	Note 22 \| GoodwilThe following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2021 and 2020.
	BCE’s groups of CGUs for purposes of goodwill impairment testing correspond to our reporting segments.
						BELL	BELL	BELL
					NOTE	WIRELESS	WIRELINE	MEDIA	BCE
	Balance at January 1, 2020					3,046	4,675	2,946	10,667
	Acquisitions and other					–	52	–	52
	Discontinued operations				37	–	(115)	–	(115)
	Balance at December 31, 2020					3,046	4,612	2,946	10,604
Notes to consolidated	fi nancial statements	Acquisitions and other					–	(26)	–	(26)
	Reclassified to assets held for sale				16	–	(6)	–	(6)
	Balance at December 31, 2021					3,046	4,580	2,946	10,572
	158 \| BCE InC. 2021 AnnuAl REpoRt

		IMPAIRMENT TESTINGAs described in Note 2, Significant accounting policies, goodwill is tested
			Cash flows beyond the five-year period are extrapolated using perpetuity growth rates. None of the perpetuity growth rates exceed the long-term historical growth rates for the markets in which we operate.
		annually for impairment or when there is an indication that goodwill may be impaired, by comparing the carrying value of a CGU or group of CGUs to the recoverable amount, where the recoverable amount is the higher of fair value less costs of disposal or value in use.
			The discount rates are applied to the cash flow projections and are
			derived from the weighted average cost of capital for each CGU or group of CGUs.
		During the second quarter of 2020, we identified indicators that goodwill for our Bell Media group of CGUs may be impaired as a result of the economic impact of the COVID-19 pandemic, notably declines in advertising revenues, lower subscriber revenues and increases in discount rates. Impairment testing of goodwill during 2020 for the Bell Media group of CGUs did not result in an impairment of goodwill.
			The following table shows the key assumptions used to estimate the
			recoverable amounts of our groups of CGUs.
				ASSUMPTIONS USED
	PERPETUITY				DISCOUNT
			GROUPS OF CGUs	GROWTH RATE				RATE
			Bell Wireless	0.8%	9.1%
		RECOVERABLE AMOUNT
			Bell Wireline	1.0%	6.0%
		The recoverable amount for each of the Bell Wireless and Bell Wireline
			Bell Media	1.0%	8.7%
		groups of CGUs is its value in use. The recoverable amount for the Bell Media group of CGUs is its fair value less costs of disposal.
			The recoverable amounts determined in a prior year for the Bell Wireless
		The recoverable amount for our groups of CGUs is determined by
			and Bell Wireline groups of CGUs exceed their corresponding current carrying values by a substantial margin and have been carried forward and used in the impairment test for the current year.
		discounting five-year cash flow projections derived from business plans reviewed by senior management. The projections reflect management’s expectations of revenue, adjusted EBITDA, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance. Revenue and cost projections for the Bell Media group of CGUs also reflect market participant assumptions.
			We believe that any reasonable possible change in the key assumptions on which the estimates of recoverable amounts of our groups of CGUs are based would not cause their carrying amounts to exceed their recoverable amounts.
		Note 23 \| Trade payables and other liabilities
		FOR THE YEAR ENDED DECEMBER 31				NOTE	2021	2020
		Trade payables and accruals		2,931	2,595
		Compensation payable		622	592
		Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1)	29			149	149
		Provisions	26			81	53
		Derivative liabilities	29			40	69
		Severance and other costs payable		32	23
		Commodity taxes payable		31	33
		CRTC deferral account obligation	29			23	13
		Other current liabilities (2)		546	408
		Total trade payables and other liabilities		4,455	3,935
		(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust
		Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other income (expense) in the income statements.
		(2) Includes an $82 million liability related to committed funding from the Government of Québec. See Note 15, Restricted cash, for additional details.

Notes to consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 159

Note 24 | Debt due within one year

WEIGHTED

AVERAGE

INTEREST RATE AT

FOR THE YEAR ENDED DECEMBER 31

DECEMBER 31, 2021

2021

2020

Notes payable (1)

0.07%

735

392

Loans secured by trade receivables

1.10%

900

1,050

Long-term debt due within one year (2)

4.01%

990

975

Total debt due within one year

2,625

2,417

(1) Includes commercial paper of $561 million in U.S. dollars ($711 million in Canadian dollars) and $274 million in U.S. dollars ($349 million in Canadian dollars) as at December 31, 2021 and

December 31, 2020, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency contracts.

See Note 29, Financial and capital management, for additional details.

(2) Included in long-term debt due within one year is the current portion of lease liabilities of $864 million and $754 million as at December 31, 2021 and December 31, 2020, respectively.

SECURITIZED TRADE RECEIVABLESOur securitized trade receivables programs are recorded as floating

We continue to service trade receivables under our securitized trade receivables program expiring on December 1, 2022. The buyer’s interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.

rate revolving loans secured by certain trade receivables.

The following table provides further details on our securitized trade

receivables programs during 2021 and 2020.

FOR THE YEAR ENDED DECEMBER 31

2021

2020

We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

Average interest rate

throughout the year

1.07%

1.58%

Securitized trade receivables

1,701

2,007

The buyer will reinvest the amounts collected by buying additional

interests in our trade receivables until the securitized trade receivables agreement expires or is terminated. The buyer and its investors have no further claim on our other assets if customers do not pay the amounts owed.

In 2021, we terminated one of our securitized trade receivables programs and repaid the $150 million balance outstanding under the program.

CREDIT FACILITIESBell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $3 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian

currency which equals the aggregate amount available under Bell Canada’s committed supporting revolving and expansion credit facilities as at December 31, 2021. The total amount of the net available committed revolving and expansion credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2021.

COMMERCIAL

LETTERS OF

PAPER

NET

AVAILABLE

DRAWN

CREDIT

OUTSTANDING

AVAILABLE

Committed credit facilitiesUnsecured revolving and expansion credit facilities (1) (2)

3,500

–

711

2,789

Other

106

–

Total committed credit facilities

3,606

106

711

2,789

Total non-committed credit facilities

1,939

1,060

–

879

Total committed and non-committed credit facilities

5,545

1,166

711

3,668

(1) Bell Canada’s $2.5 billion committed revolving credit facility expires in May 2026 and its $1 billion committed expansion credit facility expires in May 2024.(2) As of December 31, 2021, Bell Canada’s outstanding commercial paper included $561 million in U.S. dollars ($711 million in Canadian dollars). All of Bell Canada’s commercial paper outstanding

is included in Debt due within one year.

Notes to consolidated

fi nancial statements

RESTRICTIONSSome of our credit agreements:

• require us to meet specific financial ratios• require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada

We are in compliance with all conditions and restrictions under such credit agreements.

160 | BCE InC. 2021 AnnuAl REpoRt

		Note 25 \| Long-term debt
				WEIGHTED
				AVERAGE
				INTEREST RATE AT
		FOR THE YEAR ENDED DECEMBER 31	DECEMBER 31, 2021	MATURITY	2021	2020
		Debt securities
		1997 trust indenture		3.67%	2023–2051	16,750	16,400
		1976 trust indenture		9.38%	2027–2054	975	1,100
		2011 trust indenture		4.00%	2024	225	225
		2016 U.S. trust indenture (1)		3.26%	2024–2052	5,188	2,228
		1996 trust indenture (subordinated)		8.21%	2026–2031	275	275
		Lease liabilities		4.13%	2022–2065	4,309	4,356
		Other				438	386
		Total debt				28,160	24,970
		Net unamortized discount				(26)	(19)
		Unamortized debt issuance costs				(96)	(70)
		Less:
		Amount due within one year			(990)	(975)
		Total long-term debt				27,048	23,906
		(1) At December 31, 2021 and 2020, notes issued under the 2016 U.S. trust indenture totaled $4,100 million and $1,750 million in U.S. dollars, respectively, and have been hedged for foreign
		currency fluctuations through cross currency interest rate swaps. See Note 29, Financial and capital management, for additional details.
		Bell Canada’s debt securities have been issued in Canadian dollars with the exception of debt securities issued under the 2016 U.S. trust indenture, which have been issued in U.S. dollars. All debt securities bear a fixed interest rate.
		RESTRICTIONSSome of our debt agreements:
		• impose covenants and new issue tests• require us to make an offer to repurchase certain series of debt securities upon the occurrence of a change of control event as defined in the
		relevant debt agreements
		We are in compliance with all conditions and restrictions under such debt agreements.
		In Q4 2021, Bell Canada successfully completed a proxy solicitation and obtained the necessary approval from debenture holders to make certain amendments under its 1976 trust indenture, including the deletion of covenants that require Bell Canada to meet certain financial ratio tests when issuing long-term debt.
		All outstanding debt securities have been issued under trust indentures,						On March 17, 2021, Bell Canada issued, under its 1997 trust indenture,
		are unsecured and have been guaranteed by BCE. All debt securities have been issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series.						3.00% Series M-54 MTN debentures, with a principal amount of $1 billion,
								which mature on March 17, 2031, and 4.05% Series M-55 MTN debentures, with a principal amount of $550 million, which mature on March 17, 2051.
								Additionally, on March 17, 2021, Bell Canada issued, under its 2016
								trust indenture, 0.75% Series US-3 Notes, with a principal amount of
		2021On August 12, 2021, Bell Canada issued, under its 2016 trust indenture, 2.15% Series US-5 Notes, with a principal amount of $600 million in U.S. dollars ($755 million in Canadian dollars), which mature on February 15, 2032, and 3.20% Series US-6 Notes, with a principal amount of $650 million in U.S. dollars ($818 million in Canadian dollars), which mature on February 15, 2052.
								$600 million in U.S. dollars ($747 million in Canadian dollars), which mature on March 17, 2024, and 3.65% Series US-4 Notes, with a principal
								amount of $500 million in U.S. dollars ($623 million in Canadian dollars), which mature on March 17, 2051.
								The Series US-3, Series US-4, Series US-5 and Series US-6 Notes
Notes to consolidated	fi nancial statements								(collectively, the Notes) have been hedged for foreign currency fluctuations through cross currency interest rate swaps. See Note 29, Financial and capital management, for additional details.
		On May 28, 2021, Bell Canada issued, under its 1997 trust indenture, 2.20% Series M-56 medium term note (MTN) debentures, with a principal amount of $500 million, which mature on May 29, 2028. This issue constitutes Bell Canada’s first sustainability bond offering.
								For the year ended December 31, 2021, we recognized early debt redemption costs of $53 million, which were recorded in Other income (expense) in the income statement.
		On April 19, 2021, Bell Canada redeemed, prior to maturity, its 3.00% Series M-40 MTN debentures, having an outstanding principal amount of $1.7 billion, which were due on October 3, 2022.
	BCE InC. 2021 AnnuAl REpoRt \| 161

	Subsequent to year end, on February 11, 2022, Bell Canada issued,	On May 14, 2020, Bell Canada issued 2.50% Series M-52 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on May 14, 2030.
	under its 2016 trust indenture, 3.65% Series US-7 Notes, with a principal amount of $750 million in U.S. dollars ($954 million in canadian dollars), which mature on August 15, 2052. The Series US-7 Notes have been hedged for foreign currency fluctuations through cross currency interest rate swaps.
		On May 14, 2020 and February 13, 2020, Bell Canada issued 3.50% Series M-51 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million and $750 million, respectively, which mature on September 30, 2050.
	Additionally, subsequent to year end, on February 14, 2022, Bell Canada
	announced it will redeem, on March 16, 2022, prior to maturity, its 3.35%
		On March 25, 2020, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on March 12, 2025.
	Series M-26 MTN debentures, having an outstanding principal amount
	of $1 billion, which were due on March 22, 2023. We expect to incur early debt redemption charges of $18 million.
		On March 16, 2020, Bel Canada redeemed, prior to maturity, its 4.95% Series M-24 MTN debentures, having an outstanding principal amount of $500 million, which were due on May 19, 2021.
	2020On November 6, 2020, Bell Canada redeemed, prior to maturity, its 2.00% Series M-42 MTN debentures, having an outstanding principal amount of $850 million, which were due on October 1, 2021.
		During the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S. dollar borrowings under such facilities. The borrowings, which were included in long-term debt, were hedged for foreign currency fluctuations through foreign exchange forward contracts. Accordingly, in Q2 2020, the forward contracts used to hedge these borrowings were settled. See Note 29, Financial and capital management, for additional details.
	On September 14, 2020, Bell Canada redeemed, prior to maturity, its
	3.15% Series M-30 MTN debentures, having an outstanding principal
	amount of $750 million, which were due on September 29, 2021.
	On August 14, 2020, Bel Canada issued 1.65% Series M-53 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on August 16, 2027.
		For the year ended December 31, 2020, we recognized early debt redemption costs of $50 mil ion, which were recorded in Other income (expense) in the income statement.
	Note 26 \| Provisions
	FOR THE YEAR ENDED DECEMBER 31		NOTE	AROs	OTHER (1)	TOTAL
	January 1, 2021			202	206	408
	Additions			7	54	61
	Usage			(7)	(28)	(35)
	Reversals			(20)	(6)	(26)
	December 31, 2021			182	226	408
	Current		23	22	59	81
	Non-current		28	160	167	327
	December 31, 2021			182	226	408
	(1) Other includes environmental, legal, vacant space and other provisions.
	AROs reflect management’s best estimates of expected future costs to restore current leased premises to their original condition prior to lease
	inception. Cash outflows associated with our ARO liabilities are generally expected to occur at the restoration dates of the assets to which they relate, which are long-term in nature. The timing and extent of restoration work that will be ultimately required for these sites is uncertain.

	Note 27 \| Post-employment benefit plans
	POST-EMPLOYMENT BENEFIT PLANS COSTWe provide pension and other benefits for most of our employees. These
		The interest rate risk is managed using a liability matching approach,
Notes to consolidated	fi nancial statements
	include DB pension plans, DC pension plans and OPEBs.	which reduces the exposure of the DB plans to a mismatch between investment growth and obligation growth.
	We operate our DB and DC pension plans under applicable Canadian and provincial pension legislation, which prescribes minimum and maximum DB funding requirements. Plan assets are held in trust, and the oversight of governance of the plans, including investment decisions, contributions to DB plans and the selection of the DC plans investment options offered to plan participants, lies with the Risk and Pension Fund Committee, a committee of our board of directors.
		The longevity risk is managed using a longevity swap, which reduces
		the exposure of the DB plans to an increase in life expectancy.
	162 \| BCE InC. 2021 AnnuAl REpoRt

		COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST
		FOR THE YEAR ENDED DECEMBER 31	2021	2020
		DB pension	(223)	(219)
		DC pension	(113)	(113)
		OPEBs	(2)	(2)
		Less:
		Capitalized benefit plans cost	72	65
		Total post-employment benefit plans service cost	(266)	(269)
		COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST
		FOR THE YEAR ENDED DECEMBER 31	2021	2020
		DB pension	11	(10)
		OPEBs	(31)	(36)
		Total interest on post-employment benefit obligations	(20)	(46)
		The statements of comprehensive income include the following amounts before income taxes.
			2021	2020
		Cumulative losses recognized directly in equity, January 1	(2,014)	(2,701)
		Actuarial gains in other comprehensive income from continuing operations (1)	3,020	732
		Increase in the effect of the asset limit in other comprehensive income from continuing operations (2)	(587)	(45)
		Cumulative gains (losses) recognized directly in equity, December 31	419	(2,014)
		(1) The cumulative actuarial gains recognized in the statement of comprehensive income are $805 million in 2021.(2) The cumulative increase in the effect of the asset limit recognized in the statement of comprehensive income is $386 million in 2021.
		COMPONENTS OF POST-EMPLOYMENT BENEFIT (OBLIGATIONS) ASSETS
		The following table shows the change in post-employment benefit obligations and the fair value of plan assets.
					DB PENSION PLANS	OPEB PLANS	TOTAL
					2021			2020	2021	2020		2021	2020
		Post-employment benefit obligations, January 1			(27,149)			(25,650)	(1,600)	(1,529)		(28,749)	(27,179)
		Current service cost			(223)			(219)	(2)	(2)		(225)	(221)
		Interest on obligations			(697)			(782)	(39)	(46)		(736)	(828)
		Actuarial gains (losses) (1)			2,137			(1,830)	113	(90)		2,250	(1,920)
		Benefit payments			1,396			1,342	71	67		1,467	1,409
		Employee contributions			(9)			(10)	–	–					(9)	(10)
		Other			1			–	–	–					1	–
		Post-employment benefit obligations, December 31			(24,544)			(27,149)	(1,457)	(1,600)		(26,001)	(28,749)
		Fair value of plan assets, January 1			27,785			25,530	344	320		28,129	25,850
		Expected return on plan assets (2)			708			772	8	10		716	782
		Actuarial gains (1)			766			2,632	4	20		770	2,652
		Benefit payments			(1,396)			(1,342)	(71)	(67)		(1,467)	(1,409)
		Employer contributions			168			183	65	61		233	244
		Employee contributions			9			10	–	–					9	10
		Other			–			–	1	–					1	–
		Fair value of plan assets, December 31			28,040			27,785	351	344		28,391	28,129
		Plan asset (deficit)			3,496			636	(1,106)	(1,256)		2,390	(620)
Notes to consolidated	fi nancial statements		Effect of asset limit			(652)			(65)	–	–		(652)	(65)
		Post-employment benefit asset (liability), December 31			2,844			571	(1,106)	(1,256)		1,738	(685)
		Post-employment benefit assets			3,472			1,277	–	–		3,472	1,277
		Post-employment benefit obligations			(628)			(706)	(1,106)	(1,256)		(1,734)	(1,962)
		(1) Actuarial gains (losses) include experience gains of $907 million in 2021 and $2,613 million in 2020.(2) The actual return on plan assets was $1,486 million or 5.7% in 2021 and $3,434 million or 13.7% in 2020.
	BCE InC. 2021 AnnuAl REpoRt \| 163

	FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST
	The following table shows the funded status of our post-employment benefit obligations.
		FUNDED	PARTIALLY FUNDED (1)	UNFUNDED (2)	TOTAL
	FOR THE YEAR ENDED DECEMBER 31	2021				2020	2021				2020	2021				2020	2021	2020
	Present value of post-employment
	benefit obligations									(23,872)	(26,421)	(1,840)				(2,011)	(289)	(317)	(26,001)	(28,749)
	Fair value of plan assets									27,979	27,727	412				402	–	–	28,391	28,129
	Plan surplus (deficit)	4,107				1,306	(1,428)				(1,609)	(289)				(317)	2,390	(620)
	(1) The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and certain OPEBs. The company partially funds the SERPs through letters
	of credit and a retirement compensation arrangement account with Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts.
	(2) Our unfunded plans consist of certain OPEBs, which are paid as claims are incurred.
	SIGNIFICANT ASSUMPTIONSWe used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans.
								DB PENSION PLANS AND OPEB PLANS
	FOR THE YEAR ENDED DECEMBER 31										2021	2020
	Post-employment benefit obligations
	Discount rate										3.2%	2.6%
	Rate of compensation increase										2.25%	2.25%
	Cost of living indexation rate (1)										1.6%	1.6%
	Life expectancy at age 65 (years)										23.3	23.2
	(1) Cost of living indexation rate is only applicable to DB pension plans.
								DB PENSION PLANS AND OPEB PLANS
	FOR THE YEAR ENDED DECEMBER 31										2021	2020
	Net post-employment benefit plans cost
	Discount rate										2.9%	3.2%
	Rate of compensation increase										2.25%	2.25%
	Cost of living indexation rate (1)										1.6%	1.6%
	Life expectancy at age 65 (years)										23.2	23.2
	(1) Cost of living indexation rate is only applicable to DB pension plans.
	The weighted average duration of the post-employment benefit		Assumed trend rates in healthcare costs have a significant effect on
	obligation is 14 years.		the amounts reported for the healthcare plans.
	We assumed the following trend rates in healthcare costs:		The following table shows the effect of a 1% change in the assumed
	• an annual increase in the cost of medication of 6.5% for 2021 decreasing		trend rates in healthcare costs.
	to 4.0% over 20 years
			EFFECT ON POST-EMPLOYMENT
	• an annual increase in the cost of covered dental benefits of 4%• an annual increase in the cost of covered hospital benefits of 3.7%• an annual increase in the cost of other covered healthcare benefits		BENEFITS – INCREASE/(DECREASE)					1% INCREASE	1% DECREASE
			Total service and interest cost								3	(2)
			Post-employment benefit obligations								101	(86)
	of 4%
	SENSITIVITY ANALYSIS
	The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net
	post-employment benefit plans cost for our DB pension plans and OPEB plans.
			IMPACT ON NET POST-EMPLOYMENT					IMPACT ON POST-EMPLOYMENT BENEFIT
			BENEFIT PLANS COST FOR 2021 –					OBLIGATIONS AT DECEMBER 31, 2021 –
							INCREASE/(DECREASE)	INCREASE/(DECREASE)
						CHANGE IN	INCREASE IN	DECREASE IN				INCREASE IN	DECREASE IN
Notes to consolidated	fi nancial statements						ASSUMPTION	ASSUMPTION	ASSUMPTION				ASSUMPTION	ASSUMPTION
	Discount rate					0.5%	(68)	57				(1,612)	1,794
	Life expectancy at age 65					1 year	32	(32)							936	(962)
	164 \| BCE InC. 2021 AnnuAl REpoRt

		POST-EMPLOYMENT BENEFIT PLAN ASSETS
		The investment strategy for the post-employment benefit plan assets is to maintain a diversified portfolio of assets invested in a prudent manner
		to maintain the security of benefits.
		The following table shows the target allocations for 2021 and the allocation of our post-employment benefit plan assets at December 31, 2021
		and 2020.
			WEIGHTED AVERAGE
			TARGET ALLOCATION	TOTAL PLAN ASSETS FAIR VALUE
		ASSET CATEGORY		2021	DECEMBER 31, 2021				DECEMBER 31, 2020
		Equity securities		0%–40%		16%	23%
		Debt securities	60%–100%			64%	60%
		Alternative investments		0%–50%		20%	17%
		Total				100%	100%
		The following table shows the fair value of the DB pension plan assets for each category.
		FOR THE YEAR ENDED DECEMBER 31				2021	2020
		Observable markets data
		Equity securities
								Canadian	952	1,027
								Foreign	3,436	5,242
		Debt securities
								Canadian	13,643	13,361
								Foreign	2,728	2,913
								Money market	1,466	369
		Non-observable markets inputs
		Alternative investments
								Private equities	3,123	2,564
								Hedge funds	1,208	1,200
								Real estate	1,429	1,033
								Other	55	76
		Total				28,040	27,785
		Equity securities included approximately $3 million of BCE common shares, or 0.01% of total plan assets, at December 31, 2021 and December 31, 2020, respectively.							The fair value of the arrangement is included within other alternative
									investments.
									CASH FLOWSWe are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods that are permitted by pension regulatory authorities. Contributions reflect actuarial assumptions about future investment returns, salary projections and future service benefits. Changes in these factors could cause actual future contributions to differ from our current estimates and could require us to increase contributions to our post-employment benefit plans in the future, which could have a negative effect on our liquidity and financial performance.
		Debt securities included approximately $85 million of Bell Canada debentures, or 0.30% of total plan assets, at December 31, 2021 and approximately $141 million of Bell Canada debentures, or 0.51% of total plan assets, at December 31, 2020.
		Alternative investments included an investment in MLSE of $149 million,
		or 0.53% of total plan assets, at December 31, 2021 and $149 million, or
		0.54% of total plan assets, at December 31, 2020.
		The Bell Canada pension plan has an investment arrangement which
		hedges part of its exposure to potential increases in longevity, which covers approximately $4 billion of post-employment benefit obligations.
									We contribute to the DC pension plans as employees provide service.
		The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneficiaries under OPEB plans.
										DB PLANS	DC PLANS		OPEB PLANS
		FOR THE YEAR ENDED DECEMBER 31								2021	2020	2021	2020	2021	2020
Notes to consolidated	fi nancial statements
		Contributions/payments								(168)	(183)	(114)	(114)	(65)	(61)
		We expect to contribute approximately $90 million to our DB pension plans in 2022, subject to actuarial valuations being completed. We expect to contribute approximately $110 mil ion to the DC pension plans and to pay approximately $75 mil ion to beneficiaries under OPEB plans in 2022.
	BCE InC. 2021 AnnuAl REpoRt \| 165

Note 28 | Other non-current liabilities

FOR THE YEAR ENDED DECEMBER 31

2021

2020

Long-term disability benefits obligation

327

361

Provisions

327

355

Derivative liabilities

CRTC deferral account obligation

Other

263

262

Total other non-current liabilities

1,003

1,145

Note 29 | Financial and capital management

FINANCIAL MANAGEMENTManagement’s objectives are to protect BCE and its subsidiaries on a

Certain fair value estimates are affected by assumptions we make about the amount and timing of future cash flows and discount rates, all of which reflect varying degrees of risk. Income taxes and other expenses that may be incurred on disposition of financial instruments are not reflected in the fair values. As a result, the fair values may not be the net amounts that would be realized if these instruments were settled.

consolidated basis against material economic exposures and variability of results from various financial risks, including credit risk, liquidity risk, foreign currency risk, interest rate risk, commodity price risk and equity price risk.

DERIVATIVESWe use derivative instruments to manage our exposure to foreign currency risk, interest rate risk, commodity price risk and changes in the price of BCE common shares.

The carrying values of our cash and cash equivalents, trade and

other receivables, dividends payable, trade payables and accruals, compensation payable, severance and other costs payable, interest payable, notes payable and loans secured by trade receivables approximate fair value as they are short-term. The carrying value of wireless device financing plan receivables approximates fair value given that their average remaining duration is short and the carrying value is reduced by an allowance for doubtful accounts and an allowance for revenue adjustments.

FAIR VALUEFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following table provides the fair value details of other financial instruments measured at amortized cost in the statements of financial position.

DECEMBER 31, 2021

DECEMBER 31, 2020

CARRYING

FAIR

CLASSIFICATION

FAIR VALUE METHODOLOGY

NOTE

VALUE

CRTC deferral account obligation

Trade payables and

Present value of estimated future cash flows discounted using observable market interest rates

23, 28

other liabilities and other non-current liabilities

Debt securities and other debt

Debt due within one year and long-term debt

Quoted market price of debt

24, 25

23,729

20,525

24,366

Notes to consolidated

fi nancial statements

166 | BCE InC. 2021 AnnuAl REpoRt

		The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.
	FAIR VALUE
						QUOTED PRICES IN
						ACTIVE MARKETS FOR	OBSERVABLE							NON-OBSERVABLE
					CARRYING	IDENTICAL ASSETS	MARKET DATA							MARKET INPUTS
			CLASSIFICATION	VALUE		(LEVEL 1)	(LEVEL 2) (1)	(LEVEL 3) (2)
		December 31, 2021
		Publicly-traded and privately-held investments (3)	Other non-current assets	183		24	–	159
		Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		279	–						279		–
		MLSE financial liability (4)	Trade payables and other liabilities	23	(149)	–						–		(149)
		Other	Other non-current assets and liabilities		122	–						185		(63)
		December 31, 2020
		Publicly-traded and privately-held investments (3)	Other non-current assets	21	126	3						–		123
		Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		(51)	–						(51)		–
		MLSE financial liability (4)	Trade payables and other liabilities	23	(149)	–						–		(149)
		Other	Other non-current assets and liabilities		109	–						167		(58)
		(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our
		level 3 financial instruments.
		(3) Unrealized gains and losses are recorded in Other comprehensive income from continuing operations in the statements of comprehensive income and are reclassified from Accumulated
		other comprehensive income to the deficit in the statements of financial position when realized.
		(4) Represents BCE’s obligation to repurchase the Master Trust Fund’s 9% interest in MLSE at a price not less than an agreed minimum price, should the Master Trust Fund exercise its put
		option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other income (expense) in the income statements.
		CREDIT RISKWe are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position.
												The following table provides further details on trade receivables, net
												of allowance for doubtful accounts.
												AT DECEMBER 31	2021	2020
		We are exposed to credit risk if counterparties to our trade receivables, including wireless device financing plan receivables, and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at December 31, 2021 and 2020. We deal with institutions that have investment-grade credit ratings and we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure.										Trade receivables not past due	2,958	2,574
												Trade receivables past due
					Under 60 days			420	432
					60 to 120 days			284	214
					Over 120 days			45	45
												Trade receivables, net of allowance
					for doubtful accounts			3,707	3,265
												The following table provides the change in allowance for doubtful
		The following table provides the change in allowance for doubtful
												accounts for contract assets.
		accounts for trade receivables, including the current portion of wireless device financing plan receivables.
	NOTE							2021	2020

												Balance, January 1	(59)	(68)
										NOTE	2021	2020
												Additions	(9)	(31)
		Balance, January 1									(149)	(62)
												Usage and reversals	48	40
		Additions									(83)	(134)
		Usage and reversals									96	47			Balance, December 31	(20)	(59)
		Balance, December 31								11	(136)	(149)			Current	(6)	(29)
Notes to consolidated	fi nancial statements
												Non-current	(14)	(30)
		In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time.										Balance, December 31	(20)	(59)
	13
	BCE InC. 2021 AnnuAl REpoRt \| 167

	LIQUIDITY RISKOur cash and cash equivalents, cash flows from operations and possible capital markets financing are expected to be sufficient to fund our operations and fulfill our obligations as they become due. Should our cash requirements exceed the above sources of cash, we would expect to cover such a shortfall by drawing on existing committed bank facilities and new ones, to the extent available.
	The following table is a maturity analysis for recognized financial liabilities at December 31, 2021 for each of the next five years and thereafter.
								THERE-
	AT DECEMBER 31, 2021	2022	2023	2024	2025	2026	AFTER	TOTAL
	Long-term debt	156	1,632	2,060	2,153	1,561	16,289	23,851
	Notes payable	735	–	–	–	–	–	735
	Lease liabilities (1)		1,009	833	541	439	406	1,922	5,150
	Loan secured by trade receivables	900	–	–	–	–	–	900
	Interest payable on long-term debt, notes payable
	and loan secured by trade receivables		918	890	825	770	718	9,068	13,189
	Net payments (receipts) on cross currency
	interest rate swaps		11	12	(2)	12	12	314	359
	MLSE financial liability	149	–	–	–	–	–	149
	Total		3,878	3,367	3,424	3,374	2,697	27,593	44,333
	(1) Includes imputed interest of $841 million.
	We are also exposed to liquidity risk for financial liabilities due within one year as shown in the statements of financial position.
	MARKET RISKCURRENCY EXPOSURESWe use forward contracts, options and cross currency interest rate swaps to manage foreign currency risk related to anticipated purchases and certain foreign currency debt.
				a loss of $14 million was recognized in Other income (expense) in the income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities.
				A 10% depreciation (appreciation) in the value of the Canadian dollar
	At December 31, 2021, we had entered into cross currency interest rate swaps with a total notional amount of $3,500 million in U.S. dollars			relative to the U.S. dollar would result in a loss of $7 million (loss of $20 mil ion) recognized in net earnings from continuing operations at December 31, 2021 and a gain of $241 million (loss of $221 million) recognized in Other comprehensive income from continuing operations at December 31, 2021, with all other variables held constant.
	($4,511 million in Canadian dollars) to hedge the U.S. currency exposure of our U.S. Notes maturing from 2032 to 2052. See Note 25, Long-term debt, for additional details.
	In the first half of 2020, we entered into foreign currency forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our committed credit facilities.			A 10% depreciation (appreciation) in the value of the Canadian dollar
				relative to the Philippine peso would result in a gain (loss) of $4 million recognized in Other comprehensive income from continuing operations at December 31, 2021, with all other variables held constant.
	These foreign currency forward contracts matured in Q2 2020 and
	The following table provides further details on our outstanding foreign currency forward contracts and options as at December 31, 2021.
										BUY	AMOUNT		SELL	AMOUNT
	TYPE OF HEDGE									CURRENCY		CURRENCY	TO PAY		MATURITY		HEDGED ITEM
	Cash flow									USD	561	CAD	721		2022	Commercial paper
	Cash flow									PHP	2,270		CAD						58	2022	Anticipated purchases
	Cash flow									USD	568	CAD	723		2022	Anticipated purchases
	Cash flow									USD	550	CAD	678		2023	Anticipated purchases
	Cash flow – call options									USD	212	CAD	275		2022	Anticipated purchases
	Cash flow – put options									USD	212	CAD	272		2022	Anticipated purchases
	Economic									USD	40	CAD						50	2022	Anticipated purchases
	Economic – put options									USD	99	CAD	123		2022	Anticipated purchases
	Economic – call options									USD	150	CAD	178		2022	Anticipated purchases
	Economic – call options									CAD	190	USD	150		2022	Anticipated purchases
Notes to consolidated	fi nancial statements
	Economic – put options									USD	240	CAD	290		2023	Anticipated purchases
	168 \| BCE InC. 2021 AnnuAl REpoRt

		INTEREST RATE EXPOSURESIn 2021, we entered into cross currency interest rate swaps with a notional amount of $600 million in U.S. dollars ($748 million in Canadian dollars) to hedge the interest exposure of our U.S. Notes maturing in 2024. See Note 25, Long-term debt, for additional details.	EQUITY PRICE EXPOSURESWe use equity forward contracts on BCE’s common shares to hedge economically the cash flow exposure related to the settlement of equity settled share-based compensation plans. See Note 31, Share-based payments, for details on our share-based payment arrangements. The fair value of our equity forward contracts at December 31, 2021 and December 31, 2020 was a net asset of $130 million and a net liability of $82 million, respectively, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position. A gain (loss) of $278 million and ($51 million) for the year ended December 31, 2021 and 2020, respectively, relating to these equity forward contracts is recognized in Other income (expense) in the income statements.
		In 2021, we entered into forward starting interest rate swaps with a notional amount of $127 million to hedge the interest rate exposure on future debt issuances. In 2021, we also entered into cross currency basis rate swaps with a notional amount of $127 million to hedge economically the basis rate exposure on future debt issuances. The fair value of these cross currency basis rate swaps at December 31, 2021 was an asset of $1 million recognized in Other current assets in the statements of financial position. A gain of $1 million is recognized in Other income (expense) in the income statements.
			A 5% increase (decrease) in the market price of BCE’s common shares at
			December 31, 2021 would result in a gain (loss) of $43 million recognized in net earnings from continuing operations, with all other variables held constant.
		In 2020, we entered into leveraged interest rate options to hedge economically the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021 for the periods ending in 2026. The fair value of these leveraged interest rate options at December 31, 2021 and December 31, 2020 was a net liability of $2 million and $6 million, respectively, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position. A gain (loss) of $15 million and ($6 million) for the year ended December 31, 2021 and December 31, 2020, respectively, relating to these leveraged interest rate options is recognized in Other income (expense) in the income statements.
			COMMODITY PRICE EXPOSURESIn 2020, we entered into fuel swaps to hedge economically the purchase cost of fuel in 2020 and 2021. These fuel swaps have matured and a gain of $6 mil ion and $3 mil ion for the year ended December 31, 2021 and 2020, respectively, is recognized in Other income (expense) in the income statements.
		A 1% increase (decrease) in interest rates would result in a loss of $4 million (gain of $3 million) in net earnings from continuing operations
		at December 31, 2021 and a gain of $18 million (loss of $25 million) recognized in Other comprehensive income from continuing operations at December 31, 2021, with all other variables held constant.
		CAPITAL MANAGEMENTWe have various capital policies, procedures and processes which are
			The following table provides a summary of our key ratios.
		utilized to achieve our objectives for capital management. These include optimizing our cost of capital and maximizing shareholder return while balancing the interests of our stakeholders.
			AT DECEMBER 31	2021	2020
			Net debt leverage ratio	3.18	2.93
			Adjusted EBITDA to adjusted net interest
		Our definition of capital includes equity attributable to BCE shareholders, debt, and cash and cash equivalents.	expense ratio	8.77	8.32
		The key ratios that we use to monitor and manage our capital structure	On February 2, 2022, the board of directors of BCE approved an increase of 5.1% in the annual dividend on BCE’s common shares, from $3.50 to $3.68 per common share. In addition, the board of directors of BCE declared a quarterly dividend of $0.92 per common share payable on
		are a net debt leverage ratio (1) and an adjusted EBITDA to adjusted net interest expense ratio (2). In 2021 and 2020, our net debt leverage ratio target range was 2.0 to 2.5 times adjusted EBITDA and our adjusted EBITDA to adjusted net interest expense ratio target was greater than
			April 15, 2022 to the shareholders of record at March 15, 2022.
		7.5 times. At December 31, 2021, we had exceeded the limit of our internal
			On February 3, 2021, the board of directors of BCE approved an increase of 5.1% in the annual dividend on BCE’s common shares, from $3.33 to $3.50 per common share.
		net debt leverage ratio target range by 0.68.
		We use, and believe that certain investors and analysts use, our net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio as measures of financial leverage and health of the company.
			In Q4 2021, BCE renewed its normal course issuer bid program (NCIB) with respect to its First Preferred Shares. See Note 30, Share capital, for additional details.
Notes to consolidated	fi nancial statements
		(1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define net debt as debt due within one year plus long-term debt and 50% of preferred shares, less cash
		and cash equivalents, as shown in our statements of financial position. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.
		(2) Our adjusted EBITDA to adjusted net interest expense ratio represents adjusted EBITDA divided by adjusted net interest expense. We define adjusted net interest expense as twelve-month
		trailing net interest expense as shown in our statements of cash flows plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our income
		statements. For the purposes of calculating our adjusted EBITDA to adjusted net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.
	BCE InC. 2021 AnnuAl REpoRt \| 169

	Note 30 \| Share capital
	PREFERRED SHARESBCE’s articles of amalgamation, as amended, provide for an unlimited number of First Preferred Shares and Second Preferred Shares, all without par value. The terms set out in the articles authorize BCE’s directors to issue the shares in one or more series and to set the number of shares
	and the conditions for each series.
	The following table provides a summary of the principal terms of BCE’s First Preferred Shares as at December 31, 2021. There were no Second
	Preferred Shares issued and outstanding at December 31, 2021. BCE’s articles of amalgamation, as amended, describe the terms and conditions of these shares in detail.
								NUMBER OF SHARES	STATED CAPITAL
		ANNUAL
		DIVIDEND	CONVERTIBLE				REDEMPTION			ISSUED AND	DECEMBER 31,	DECEMBER 31,
	SERIES	RATE		INTO	CONVERSION DATE	REDEMPTION DATE	PRICE	AUTHORIZED		OUTSTANDING	2021			2020
	Q	floating	Series R		December 1, 2030		$25.50	8,000,000					–	–	–
	R (1)	3.018%	Series Q		December 1, 2025	December 1, 2025	$25.00	8,000,000		7,998,900	200			200
	S	floating	Series T		November 1, 2026	At any time	$25.50	8,000,000		2,128,267	53			88
	T (1)	4.99%	Series S		November 1, 2026	November 1, 2026	$25.00	8,000,000		5,870,133	147			112
	Y	floating	Series Z		December 1, 2022	At any time	$25.50	10,000,000		8,079,291	202			202
	Z (1)	3.904%	Series Y		December 1, 2022	December 1, 2022	$25.00	10,000,000		1,918,509	48			48
	AA (1)	3.61%	Series AB		September 1, 2022	September 1, 2022	$25.00	20,000,000		11,397,196	291			291
	AB	floating	Series AA		September 1, 2022	At any time	$25.50	20,000,000		8,599,204	219			219
	AC (1)	4.38%	Series AD		March 1, 2023	March 1, 2023	$25.00	20,000,000		10,027,991	256			256
	AD	floating	Series AC		March 1, 2023	At any time	$25.50	20,000,000		9,963,209	254			254
	AE	floating	Series AF		February 1, 2025	At any time	$25.50	24,000,000		6,512,913	163			163
	AF (1)	3.865%	Series AE		February 1, 2025	February 1, 2025	$25.00	24,000,000		9,481,487	237			237
	AG (1)	3.37%	Series AH		May 1, 2026	May 1, 2026	$25.00	22,000,000		8,979,530	224			125
	AH	floating	Series AG		May 1, 2026	At any time	$25.50	22,000,000		5,017,570	125			225
	AI (1)	3.39%	Series AJ		August 1, 2026	August 1, 2026	$25.00	22,000,000		9,535,040	238			149
	AJ	floating	Series AI		August 1, 2026	At any time	$25.50	22,000,000		4,464,960	112			201
	AK (1)	3.306%	Series AL		December 31, 2026	December 31, 2026	$25.00	25,000,000		23,190,312	580			568
	AL (2)	floating	Series AK		December 31, 2026	At any time		25,000,000		1,799,388	45			56
	AM (1)	2.939%	Series AN		March 31, 2026	March 31, 2026	$25.00	30,000,000		10,439,978	239			218
	AN (2)	floating	Series AM		March 31, 2026	At any time		30,000,000		1,054,722	24			45
	AO (1)	4.26%	Series AP		March 31, 2022	March 31, 2022	$25.00	30,000,000		4,600,000	118			118
	AP (3)	floating	Series AO		March 31, 2027			30,000,000					–	–	–
	AQ (1)	4.812%	Series AR		September 30, 2023	September 30, 2023	$25.00	30,000,000		9,200,000	228			228
	AR (3)	floating	Series AQ		September 30, 2028			30,000,000					–	–	–
									4,003			4,003
	(1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years thereafter.(2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2026 and March 31, 2026, respectively, and every five years thereafter (each, a Series
	conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of
	First Preferred Shares.
	(3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2023, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and
	September 30, 2028, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per
	share on any date which is not a Series conversion date for the applicable series of First Preferred Shares.

	NORMAL COURSE ISSUER BID FOR BCE FIRST						PRIORITY AND ENTITLEMENT TO DIVIDENDS
	PREFERRED SHARESOn November 4, 2021, BCE renewed its NCIB to purchase for cancellation up to 10% of the public float of each series of BCE’s outstanding First Preferred Shares that are listed on the Toronto Stock Exchange. The NCIB will extend up to November 8, 2022, or an earlier date should BCE complete its purchases under the NCIB.
							The First Preferred Shares of all series rank at parity with each other and
							in priority to all other shares of BCE with respect to payment of dividends and with respect to distribution of assets in the event of liquidation, dissolution or winding up of BCE.
Notes to consolidated	fi nancial statements							Holders of Series R, T, Z, AA, AC, AF, AG, AI, AK, AM, AO and AQ First Preferred Shares are entitled to fixed cumulative quarterly dividends.
							The dividend rate on these shares is reset every five years, as set out
	VOTING RIGHTSAll of the issued and outstanding First Preferred Shares at December 31, 2021 are non-voting, except under special circumstances when the holders are entitled to one vote per share.
							in BCE’s articles of amalgamation, as amended.
							Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares are entitled to floating adjustable cumulative monthly dividends. The floating dividend rate on these shares is calculated every month, as set out in BCE’s articles of amalgamation, as amended.
	170 \| BCE InC. 2021 AnnuAl REpoRt

Holders of Series AL and AN First Preferred Shares are entitled to floating cumulative quarterly dividends. The floating dividend rate on these shares is calculated every quarter, as set out in BCE’s articles of amalgamation, as amended.

associated series of First Preferred Shares on a one-for-one basis according to the terms set out in BCE’s articles of amalgamation, as amended.

REDEMPTION OF SERIES AO PREFERRED SHARESSubsequent to year end, on February 24, 2022, BCE announced it will redeem, on March 31, 2022, its 4,600,000 issued and outstanding Series AO Preferred Shares at $25 per share for a total amount of $115 million.

Dividends on all series of First Preferred Shares are paid as and when declared by the board of directors of BCE.

CONVERSION FEATURESAll of the issued and outstanding First Preferred Shares at December 31, 2021 are convertible at the holder’s option into another

COMMON SHARES AND CLASS B SHARESBCE’s articles of amalgamation provide for an unlimited number of voting common shares and non-voting Class B shares, all without par value.

The common shares and the Class B shares rank equally in the payment of dividends and in the distribution of assets if BCE is liquidated, dissolved

or wound up, after payments due to the holders of preferred shares. No Class B shares were outstanding at December 31, 2021 and 2020.

The following table provides details about the outstanding common shares of BCE.

2021

2020

NUMBER OF

STATED

NUMBER OF

STATED

NOTE

CAPITAL

Outstanding, January 1

904,415,010

20,390

903,908,182

20,363

Shares issued under employee stock option plan

4,603,861

272

506,828

Outstanding, December 31

909,018,871

20,662

904,415,010

20,390

CONTRIBUTED SURPLUSContributed surplus in 2021 and 2020 includes premiums in excess of par value upon the issuance of BCE common shares and share-based compensation expense net of settlements.

Note 31 | Share-based paymentsThe following share-based payment amounts are included in the income statements as operating costs.

FOR THE YEAR ENDED DECEMBER 31

2021

2020

ESP

(30)

(31)

RSUs/PSUs

(59)

(51)

Other (1)

(6)

(9)

Total share-based payments

(95)

(91)

(1) Includes DSUs and stock options.

DESCRIPTION OF THE PLANSESP

At December 31, 2021, 4,360,087 common shares were authorized for

The ESP is designed to encourage employees of BCE and its participating

issuance from treasury under the ESP. At December 31, 2021 and 2020 there were 1,108,211 and 1,146,980 unvested employer ESP contributions, respectively.

subsidiaries to own shares of BCE. Employees can choose to have up to

12% of their eligible annual earnings withheld through regular payroll

deductions for the purchase of BCE common shares. In some cases, the employer also contributes up to 2% of the employee’s eligible annual earnings to the plan. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. Employer contributions to the ESP and related dividends are subject to employees holding their shares for a two-year vesting period.

RSUs/PSUsRSUs/PSUs are granted to executives and other eligible employees. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. Executives and other eligible employees are granted a specific number of RSUs/PSUs for a given performance period based mainly on their level and position. RSUs/PSUs vest fully after three years of continuous employment from the date of grant and if performance objectives are met for certain PSUs, as determined by the board of directors.

Notes to consolidated

fi nancial statements

The trustee of the ESP buys BCE common shares for the participants

on the open market, by private purchase or from treasury. BCE determines the method the trustee uses to buy the shares.

BCE InC. 2021 AnnuAl REpoRt | 171

	The following table summarizes RSUs/PSUs outstanding at December 31, 2021 and 2020.
	NUMBER OF RSUs/PSUs	2021	2020
	Outstanding, January 1			2,973,393	2,915,118
	Granted (1)			1,178,794	866,127
	Dividends credited	175,516	165,435
	Settled			(1,135,128)	(935,117)
	Forfeited	(106,908)	(38,170)
	Outstanding, December 31			3,085,667	2,973,393
	Vested, December 31 (2)			1,000,394	1,065,454
	(1) The weighted average fair value of the RSUs/PSUs granted was $60 in 2021 and $63 in 2020.(2) The RSUs/PSUs vested on December 31, 2021 were fully settled in February 2022 with BCE common shares and/or DSUs.
	DSUsEligible bonuses and RSUs/PSUs may be paid in the form of DSUs when executives or other eligible employees elect or are required to participate in the plan. The value of a DSU at the issuance date is equal to the value of one BCE common share. For non-management directors, compensation is paid in DSUs until the minimum share ownership requirement is met; thereafter, at least 50% of their compensation is paid in DSUs. There are no vesting requirements relating to DSUs. Dividends in the form of additional DSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. DSUs are settled when the holder leaves the company.				STOCK OPTIONSUnder BCE’s long-term incentive plans, BCE may grant options to executives to buy BCE common shares. The subscription price of a grant is based on the higher of:
					• the volume-weighted average of the trading price on the trading day
					immediately prior to the effective date of the grant
					• the volume-weighted average of the trading price for the last five
					consecutive trading days ending on the trading day immediately prior to the effective date of the grant
					At December 31, 2021, in addition to the stock options outstanding,
					4,461,019 common shares were authorized for issuance under these
					plans. Options vest fully after three years of continuous employment from the date of grant. All options become exercisable when they vest and can be exercised for a period of seven years from the date of grant for options granted prior to 2019 and ten years from the date of grant for options granted since 2019.
	At December 31, 2021 and 2020 there were 3,365,433 and 4,230,672 DSUs
	outstanding, respectively.
	The following table summarizes stock options outstanding at December 31, 2021 and 2020.
						2021	2020
								NUMBER OF	WEIGHTED AVERAGE	NUMBER OF							WEIGHTED AVERAGE
							NOTE	OPTIONS	EXERCISE PRICE ($)	OPTIONS							EXERCISE PRICE ($)
	Outstanding, January 1				15,650,234					59	12,825,541	57
	Granted					–				–	3,420,407	65
	Exercised (1)				30	(4,603,861)					57	(506,828)	52
	Forfeited or expired							(267,649)		60	(88,886)	61
	Outstanding, December 31				10,778,724					60	15,650,234	59
	Exercisable, December 31				4,316,424					58	5,186,600	58
	(1) The weighted average market share price for options exercised was $64 in 2021 and $63 in 2020.
	The following table provides additional information about BCE’s stock option plans at December 31, 2021 and 2020.
								STOCK OPTIONS OUTSTANDING
							2021	2020
												WEIGHTED AVERAGE	WEIGHTED AVERAGE
												REMAINING LIFE	WEIGHTED AVERAGE	REMAINING LIFE					WEIGHTED AVERAGE
	RANGE OF EXERCISE PRICES										NUMBER	(YEARS)	EXERCISE PRICE ($)					NUMBER	(YEARS)				EXERCISE PRICE ($)
	$40–$49										–	–	–				187,744	– (1)	48
	$50–$59										7,442,442	4	58	11,998,200	5	58
Notes to consolidated	fi nancial statements	$60 & above										3,336,282	8	65						3,464,290	9	65
											10,778,724	6	60	15,650,234	7	59
	(1) Stock options outstanding expired in February 2021.
	172 \| BCE InC. 2021 AnnuAl REpoRt

		Note 32 \| Additional cash flow informationThe following table provides a reconciliation of changes in liabilities arising from financing activities.
				DEBT DUE	DERIVATIVE
				WITHIN ONE	TO HEDGE
				YEAR AND	FOREIGN
				LONG-TERM	CURRENCY	DIVIDENDS				OTHER
			DEBT	ON DEBT (1)	PAYABLE				LIABILITIES	TOTAL
		January 1, 2021		26,323	66	766				–	27,155
		Cash flows from (used in) financing activities
		Increase (decrease) in notes payable		378	(27)	–				–	351
		Issue of long-term debt		4,985			–	–				–	4,985
		Repayment of long-term debt		(2,751)			–	–				–	(2,751)
		Cash dividends paid on common and preferred shares		–			–	(3,257)				–	(3,257)
		Cash dividends paid by subsidiaries to non-controlling interests	36	–			–	(86)				–	(86)
		Decrease in securitized trade receivables		(150)			–	–				–	(150)
		Other financing activities		(36)	13	–				(55)	(78)
		Total cash flows from (used in) financing activities excluding equity		2,426	(14)	(3,343)				(55)	(986)
		Non-cash changes arising from
		Increase in lease liabilities		787			–	–				–	787
		Dividends declared on common and preferred shares		–			–	3,306				–	3,306
		Dividends declared by subsidiaries to non-controlling interests		–			–	87				–	87
		Effect of changes in foreign exchange rates		(23)	23	–				–	–
		Business acquisitions		12			–	–				–	12
		Other		148			4	(5)				55	202
		Total non-cash changes		924	27	3,388				55	4,394
		December 31, 2021		29,673	79	811				–	30,563
		(1) Included in Other current assets, Other non-current assets and Trade payables and other liabilities in the statement of financial position.
				DEBT DUE	DERIVATIVE
				WITHIN ONE	TO HEDGE
				YEAR AND	FOREIGN
				LONG-TERM	CURRENCY	DIVIDENDS				OTHER
			DEBT	ON DEBT (1)	PAYABLE				LIABILITIES	TOTAL
		January 1, 2020		26,296	56	729				–	27,081
		Cash flows (used in) from financing activities
		(Decrease) increase in notes payable		(1,810)	169	–				–	(1,641)
		Issue of long-term debt		6,006			–	–				–	6,006
		Repayment of long-term debt		(5,003)			–	–				–	(5,003)
		Cash dividends paid on common and preferred shares		–			–	(3,107)				–	(3,107)
		Cash dividends paid by subsidiaries to non-controlling interests	36	–			–	(53)				–	(53)
		Discontinued operations	37	(7)			–	–				–	(7)
		Other financing activities		(31)			–	–				(52)	(83)
		Total cash flows (used in) from financing activities excluding equity		(845)	169	(3,160)				(52)	(3,888)
		Non-cash changes arising from

		Increase in lease liabilities		675			–	–				–	675
		Dividends declared on common and preferred shares		–			–	3,147				–	3,147
		Dividends declared by subsidiaries to non-controlling interests		–			–	53				–	53
		Effect of changes in foreign exchange rates		159	(159)	–				–	–
		Business acquisitions		7			–	–				–	7
		Discontinued operations	37	(106)			–	–				–	(106)
Notes to consolidated	fi nancial statements
		Other		137			–	(3)				52	186
		Total non-cash changes		872	(159)	3,197				52	3,962
		December 31, 2020		26,323	66	766				–	27,155
		(1) Included in Other current assets, Other non-current assets and Trade payables and other liabilities in the statement of financial position.
	BCE InC. 2021 AnnuAl REpoRt \| 173

	Note 33 \| Remaining performance obligationsThe following table shows revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially
	unsatisfied) as at December 31, 2021.
							THERE-
		2022	2023	2024	2025	2026	AFTER	TOTAL
	Wireline	1,295	946	712	473	215	548	4,189
	Wireless	1,416	561	40	1	1	–	2,019
	Total	2,711	1,507	752	474	216	548	6,208
	When estimating minimum transaction prices allocated to the remaining unfulfilled, or partially unfulfilled, performance obligations, BCE applied the practical expedient to not disclose information about remaining performance obligations that have an original expected duration of one year or less and for those contracts where we bill the same value as that which is transferred to the customer.
	Note 34 \| Commitments and contingencies
	COMMITMENTS
	The following table is a summary of our contractual obligations at December 31, 2021 that are due in each of the next five years and thereafter.
							THERE-
		2022	2023	2024	2025	2026	AFTER	TOTAL
	Commitments for property, plant and
	equipment and intangible assets	1,104	757	461	334	219	161	3,036
	Purchase obligations	542	380	245	210	292	221	1,890
	Leases committed not yet commenced	7	2	6	1	–	–	16
	Total	1,653	1,139	712	545	511	382	4,942
	Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand.		Subsequent to year end, in February 2022, Bell acquired a business
			that provides Internet, telephone and television services to consumers and businesses in Québec and parts of Ontario. The acquisition is expected to accelerate growth in Bell’s residential and small business customers. The results of the acquired business will be included in our Bell Wireline segment.
	Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations.
			Additionally, subsequent to year end, we entered into new commitments
	Our commitments for leases not yet commenced include OOH advertising spaces, fibre use and real estate. These leases are non-cancellable.
			for property, plant and equipment and intangible assets totaling approximately $1.4 billion, which is payable between 2022 and 2033.
	CONTINGENCIESAs part of its ongoing review of wholesale Internet rates, on October 6, 2016, the CRTC significantly reduced, on an interim basis, some of the wholesale rates that Bell Canada and other major providers charge
			reinstated the rates prevailing prior to August 2019 with some reductions to the Bell Canada rates with retroactive effect to March 2016. As a result, in Q2 2021, we recorded a reduction in revenue of $44 million in our income statement.
	for access by third-party Internet resel ers to fibre-to-the-node (FTTN) or cable networks, as applicable. On August 15, 2019, the CRTC further reduced the wholesale rates that Internet resel ers pay to access network infrastructure built by facilities-based providers like Bell Canada, with retroactive effect back to March 2016.

			While there remains a requirement to refund monies to third-party Internet resellers, the establishment of final wholesale rates that are similar to those prevailing since 2019 reduces the impact of the CRTC’s long-running review of wholesale Internet rates and ensures a better climate for much-needed investment in advanced networks.
	The August 2019 decision was stayed, first by the Federal Court of
	Appeal and then by the CRTC, with the result that it never came into		The decision is being challenged by at least one reseller, TekSavvy
Notes to consolidated	fi nancial statements
	effect. In response to review and vary applications filed by each of Bell Canada, five major cable carriers (Cogeco Communications Inc., Bragg Communications Inc. (Eastlink), Rogers Communications Inc., Shaw Communications Inc. and Videotron Ltée) and Telus Communications Inc., the CRTC issued Decision 2021-182 on May 27, 2021, which mostly		Solutions Inc. (TekSavvy), before the Federal Court of Appeal, where
			TekSavvy obtained leave to appeal the decision, and in three petitions
			brought by TekSavvy, the Canadian Network Operators Consortium Inc. and National Capital Freenet before Cabinet to overturn the decision.
	174 \| BCE InC. 2021 AnnuAl REpoRt

		In the ordinary course of business, we become involved in various claims and legal proceedings seeking monetary damages and other relief. In particular, because of the nature of our consumer-facing business, we are exposed to class actions pursuant to which substantial monetary damages may be claimed. Due to the inherent risks and uncertainties of the litigation process, we cannot predict the final outcome or timing of claims and legal proceedings. Subject to the foregoing, and based on	information currently available and management’s assessment of the merits of the claims and legal proceedings pending at March 3, 2022, management believes that the ultimate resolution of these claims and legal proceedings is unlikely to have a material and negative effect on our financial statements. We believe that we have strong defences and we intend to vigorously defend our positions.
		Note 35 \| Related party transactions
		SUBSIDIARIES
		The following table shows BCE’s significant subsidiaries at December 31, 2021. BCE has other subsidiaries which have not been included in the
		table as each represents less than 10% individually and less than 20% in aggregate of total consolidated revenues.
		Al of these significant subsidiaries are incorporated in Canada and provide services to each other in the normal course of operations. The value
		of these transactions is eliminated on consolidation.
				OWNERSHIP PERCENTAGE
		SUBSIDIARY		2021	2020
		Bell Canada		100%	100%
		Bell Mobility Inc.		100%	100%
		Bell Media Inc.		100%	100%
		TRANSACTIONS WITH JOINT ARRANGEMENTS AND ASSOCIATESDuring 2021 and 2020, BCE provided communication services and received programming content and other services in the normal course
		of business on an arm’s length basis to and from its joint arrangements and associates. Our joint arrangements and associates include MLSE, Glentel Inc. and Dome Productions Partnership. From time to time, BCE may be required to make capital contributions in its investments.
		In 2021, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $10 million (2020 – $14 million) and
		$178 million (2020 – $133 million), respectively.
		BCE MASTER TRUST FUNDBimcor Inc. (Bimcor), a wholly-owned subsidiary of Bell Canada, is the administrator of the Master Trust Fund. Bimcor recognized management
		fees of $13 million from the Master Trust Fund for 2021 and 2020, respectively. The details of BCE’s post-employment benefit plans are set out in Note 27, Post-employment benefit plans.
		COMPENSATION OF KEY MANAGEMENT PERSONNEL
		The following table includes compensation of key management personnel for the years ended December 31, 2021 and 2020 included in our income
		statements. Key management personnel has the authority and responsibility for overseeing, planning, directing and controlling our business activities and consists of our Board of Directors and our Executive Leadership Team.
		FOR THE YEAR ENDED DECEMBER 31		2021	2020
		Wages, salaries, fees and related taxes and benefits		(23)	(30)
		Post-employment benefit plans and OPEBs cost		(3)	(3)
		Share-based compensation		(21)	(26)
		Key management personnel compensation expense		(47)	(59)
Notes to consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 175

	Note 36 \| Significant partly-owned subsidiaryThe following tables show summarized financial information for our subsidiary with significant non-controlling interest (NCI).
	SUMMARIZED STATEMENTS OF FINANCIAL POSITION
		CTV SPECIALTY (1) (2)
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Current assets	329	357
	Non-current assets	1,010	1,032
	Total assets	1,339	1,389
	Current liabilities	220	159
	Non-current liabilities	226	227
	Total liabilities	446	386
	Total equity attributable to BCE shareholders	622	699
	NCI	271	304
	(1) At December 31, 2021 and 2020, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as
	at such dates.
	(2) CTV Specialty’s net assets at December 31, 2021 and 2020 include $5 million and $6 million, respectively, directly attributable to NCI.
	SELECTED INCOME AND CASH FLOW INFORMATION
		CTV SPECIALTY (1)
	FOR THE YEAR ENDED DECEMBER 31	2021	2020
	Operating revenues	879	754
	Net earnings	158	202
	Net earnings attributable to NCI	51	64
	Total comprehensive income	164	200
	Total comprehensive income attributable to NCI	53	63
	Cash dividends paid to NCI	86	53
	(1) CTV Specialty’s net earnings and total comprehensive income include $5 million directly attributable to NCI for 2021 and 2020, respectively.
	Note 37 \| Discontinued operations
	On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion.			The data centre operations that were sold were presented as a
				discontinued operation in our 2020 income statement and statement of cash flows. Property, plant and equipment and intangible assets that were sold were no longer depreciated or amortized effective June 1, 2020.
	In Q4 2020, we completed the sale for proceeds of $933 million (net of debt and other items) and recorded a gain on sale, net of taxes, of
	$211 million. The capital gain as a result of the sale is mainly offset by
	the recognition of previously unrecognized capital loss carryforwards.

Notes to consolidated	fi nancial statements
	176 \| BCE InC. 2021 AnnuAl REpoRt

		The following table summarizes the carrying value of the assets and liabilities sold:
			2020
		Contract assets	1
		Contract costs	2
		Property, plant and equipment	484
		Intangible assets	227
		Goodwill	115
		Total assets sold	829
		Long-term debt	113
		Deferred tax liability	37
		Other non-current liabilities	9
		Total liabilities sold	159
		Net assets sold	670
		The following tables summarize the income statement and statement of cash flows of our discontinued operations up to the point of sale.
		FOR THE YEAR ENDED DECEMBER 31	2020
		Operating revenues	118
		Operating costs	(57)
		Depreciation	(18)
		Amortization	(7)
		Interest expense	(6)
		Other expense	(8)
		Income taxes	(7)
		Net earnings attributable to common shareholders before gain on sale	15
		Gain on sale (net of taxes of $3 million)	211
		Net earnings attributable to common shareholders	226
		FOR THE YEAR ENDED DECEMBER 31	2020
		Cash flows from operating activities	54
		Cash flows from investing activities	892
		Cash flows used in financing activities	(7)
		Net increase in cash	939
		Note 38 \| COVID-19
		Our financial and operating performance saw a steady improvement in 2021 despite the continued adverse impacts of the COVID-19 pandemic experienced throughout the year, due to our operational execution and the easing of government restrictions in the second half of the year.		Due to uncertainties relating to the severity and duration of the COVID-19 pandemic and possible resurgences in the number of COVID-19 cases, including as a result of the potential emergence of other variants, and various potential outcomes, it is difficult at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Our business and financial results could continue to be unfavourably impacted, and could again become more significantly and negatively impacted, in future periods, including, among others, as a result of global supply chain challenges adversely affecting our wireless and wireline product revenues.
		The impacts of the COVID-19 pandemic, although moderated, continued
		to unfavourably affect Bell Wireless product and roaming revenues, Bell Media advertising revenues, as well as Bell Wireline business market equipment revenues, due to reduced commercial activity as a result of the government restrictions put in place to combat the pandemic, particularly in the first half of the year, and the global supply chain challenges experienced in the second half of the year.
Notes to consolidated	fi nancial statements
	BCE InC. 2021 AnnuAl REpoRt \| 177