Enhanced Investments - Financial Portal

Published: 2020-03-11

		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 160 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 5, 2020

	Consolidated	financial statements
BCE Inc. 2019 Annual Report	111

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, 2019 and 2018, 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, 2019, 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, 2019 and 2018, and its financial performance and its cash flows for each of		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.
the two years in the period ended December 31, 2019, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.
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, 2019, 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 5, 2020, expressed an unqualified opinion on the Company’s internal control over financial reporting.
CHANGE IN ACCOUNTING PRINCIPLEAs discussed in Note 2 to the financial statements, effective January 1, 2019, the Company has changed its method of accounting for leases due to adoption of IFRS 16 - Leases.

Consolidatedfinancial statements
BCE Inc. 2019 Annual Report	112

		CRITICAL AUDIT MATTER	HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDITOur audit procedures related to forecasts of future operating performance, determination of EBITDA multiples, discount rates, and terminal growth rates used by management to determine the recoverable amounts for Bell Media included the following, among others:• Evaluated the effectiveness of controls over goodwill and intangible
		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.
			assets, including those over the forecasts of future operating performance, and the determination of the EBITDA multiples, discount rates and terminal growth rates.
		Goodwill and Intangible Assets – Bell Media Group – Refer to Notes 7, 16 and 19 to the financial statements	• Evaluated management’s ability to accurately forecast future
			operating performance by comparing actual results to management’s historical forecasts.
		CRITICAL AUDIT MATTER DESCRIPTION
			• Evaluated the reasonableness of management’s forecasts of future
		The Company performs an annual assessment of impairment for
			operating performance by comparing the forecasts to:• Analyst and industry reports for the Company and certain of its
		goodwill and indefinite lived intangible assets (specifically broadcast licenses) for the Bell Media group of cash generating units (“Bell Media”).
			peer companies, and other relevant publicly available information;
		As a result of the annual assessment of impairment of goodwill and
			• Known changes in Bell Media’s operations or the industry in which
		intangible assets for Bell Media, management has determined that there is no impairment of goodwill and there is an impairment for intangible assets.
			they operate, which are expected to impact future operating performance;
			• Historical operating performance;• Internal communications to management and the Board of Directors.
		While there are several assumptions that are required to determine the recoverable amounts of Bell Media, the judgments with the highest degree of subjectivity and impact on the recoverable amounts for the testing of goodwill are forecasts of future operating performance, discount rates and terminal growth rates. The judgments with the highest degree of subjectivity and impact on the recoverable amounts for the testing of intangible assets are forecasts of future operating performance, determination of EBITDA multiples, discount rates and terminal growth rates. Changes in these assumptions could have a significant impact on the recoverable amount of Bell Media, resulting in an impairment charge to goodwill or intangible assets as required.
			• With the assistance of fair value specialists, we evaluated the
			reasonableness of the (1) EBITDA multiples, (2) discount rates, and (3) terminal 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 EBITDA multiples, discount rates, and terminal growth rates;
			• Developing a range of independent estimates and comparing those

		Given the significant judgments made by management, regarding the forecasts of future operating performance, determination of EBITDA multiples, discount rates and terminal 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.	to the EBITDA multiples, discount rates, and terminal growth rates
			selected by management.
	Consolidated	financial statements
			/s/ Deloitte LLP 1
			Chartered Professional Accountants
			Montréal, Canada March 5, 2020
			We have served as the Company’s auditor since 1880.1 CPA auditor, CA, public accountancy permit No. A124391
BCE Inc. 2019 Annual Report	113

CONSOLIDATED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS)NOTE	2019	2018
Operating revenues		3	23,964	23,468
Operating costs		3, 4	(13,858)	(13,933)
Severance, acquisition and other costs		5	(114)	(136)
Depreciation		14	(3,496)	(3,145)
Amortization		16	(902)	(869)
Finance costs
Interest expense		6	(1,132)	(1,000)
Interest on post-employment benefit obligations		24	(63)	(69)
Other expense		7	(13)	(348)
Income taxes		8	(1,133)	(995)
Net earnings			3,253	2,973
Net earnings attributable to:
Common shareholders			3,040	2,785
Preferred shareholders			151	144
Non-controlling interest		33	62	44
Net earnings			3,253	2,973
Net earnings per common share		9
Basic and diluted			3.37	3.10
Average number of common shares outstanding – basic (millions)			900.8	898.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31
(IN MILLIONS OF CANADIAN DOLLARS)NOTE	2019	2018
Net earnings			3,253	2,973
Other comprehensive income, 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
					of nil for 2019 and 2018	6	6
					Net change in value of derivatives designated as cash flow hedges, net of income taxes of
					($45) million and ($15) million for 2019 and 2018, respectively	112	43
Items that will not be reclassified to net earnings

					Actuarial gains on post-employment benefit plans, net of income taxes of ($51) million and ($25)
					million for 2019 and 2018, respectively	24	140	67

					Net change in value of derivatives designated as cash flow hedges, net of income taxes of
					$9 million and ($23) million for 2019 and 2018, respectively	(25)	61
Other comprehensive income			233	177
Consolidatedfinancial statements
Total comprehensive income			3,486	3,150
Total comprehensive income attributable to:
Common shareholders			3,277	2,957
Preferred shareholders			151	144
Non-controlling interest		33	58	49
Total comprehensive income			3,486	3,150
BCE Inc. 2019 Annual Report	114

		CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		(IN MILLIONS OF CANADIAN DOLLARS)	DECEMBER 31, 2019	DECEMBER 31, 2018
		ASSETSCurrent assets
		Cash			141	425
		Cash equivalents	4				–
		Trade and other receivables	10		3,038	3,006
		Inventory	11		427	432
		Contract assets	12		1,111	987
		Contract costs	13		415	370
		Prepaid expenses			194	244
		Other current assets			190	329
		Total current assets			5,520	5,793
		Non-current assets
		Contract assets	12		533	506
		Contract costs	13		368	337
		Property, plant and equipment	14, 35		27,636	24,844
		Intangible assets	16		13,352	13,205
		Deferred tax assets	8		98	112
		Investments in associates and joint ventures	17		698	798
		Other non-current assets	18		1,274	847
		Goodwill	19		10,667	10,658
		Total non-current assets			54,626	51,307
		Total assets			60,146	57,100
		LIABILITIESCurrent liabilities
		Trade payables and other liabilities	20		3,954	3,941
		Contract liabilities	12		683	703
		Interest payable			227	196
		Dividends payable			729	691
		Current tax liabilities			303	253
		Debt due within one year	21		3,881	4,645
		Total current liabilities			9,777	10,429
		Non-current liabilities
		Contract liabilities	12		207	196
		Long-term debt	22		22,415	19,760
		Deferred tax liabilities	8		3,163
		Post-employment benefit obligations	24		1,907	1,866
		Other non-current liabilities	25		871	997
		Total non-current liabilities			28,961	25,982
	Consolidated	financial statements
		Total liabilities			38,738	36,411
		Commitments and contingencies	31
		EQUITYEquity attributable to BCE shareholders
		Preferred shares	27		4,004	4,004
		Common shares	27		20,363	20,036
		Contributed surplus	27		1,178	1,170
		Accumulated other comprehensive income			161	90
		Deficit			(4,632)	(4,937)
		Total equity attributable to BCE shareholders			21,074	20,363
		Non-controlling interest	33		334	326
		Total equity			21,408	20,689
		Total liabilities and equity			60,146	57,100
BCE Inc. 2019 Annual Report	115

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
		ATTRIBUTABLE TO BCE SHAREHOLDERS
							ACCUM-
							ULATED
							OTHER	NON-
		CONTRI-					COMPRE-	CONTROL-
FOR THE YEAR ENDED DECEMBER 31, 2019				PREFERRED	COMMON	BUTED	HENSIVE	LING	TOTAL
(IN MILLIONS OF CANADIAN DOLLARS)NOTESHARESSHARESSURPLUSINCOMEDEFICITTOTALINTERESTEQUITY
Balance at December 31, 2018				4,004	20,036	1,170			90	(4,937)	20,363	326	20,689
Adoption of IFRS 16			2, 35							–	–			–	–	(19)	(19)	(1)	(20)
Balance at January 1, 2019				4,004	20,036	1,170			90	(4,956)	20,344	325	20,669
Net earnings										–	–			–	–	3,191	3,191	62	3,253
Other comprehensive income (loss)										–	–			–	97	140	237	(4)	233
Total comprehensive income										–	–			–	97	3,331	3,428	58	3,486
Common shares issued under
employee stock option plan			27							–	251			(11)	–	–	240	–	240
Common shares issued under
employee savings plan (ESP)			27							–	75			–	–	–	75	–	75
Other share-based compensation			27							–	1			19	–	1	21	–	21
Dividends declared on BCE common
and preferred shares										–	–			–	–	(3,008)	(3,008)	–	(3,008)
Dividends declared by subsidiaries
to non-controlling interest										–	–			–	–	–	–	(64)	(64)
Settlement of cash flow hedges
transferred to the cost basis of hedged items
										–	–			–	(26)	–	(26)	–	(26)
Other										–	–			–	–	–	–	15	15
Balance at December 31, 2019				4,004	20,363	1,178			161	(4,632)	21,074	334	21,408
		ATTRIBUTABLE TO BCE SHAREHOLDERS
							ACCUM-
							ULATED
							OTHER	NON-
		CONTRI-					COMPRE-	CONTROL-
FOR THE YEAR ENDED DECEMBER 31, 2018				PREFERRED	COMMON	BUTED	HENSIVE	LING	TOTAL
(IN MILLIONS OF CANADIAN DOLLARS)NOTESHARESSHARESSURPLUSINCOMEDEFICITTOTALINTERESTEQUITY
Balance at December 31, 2017				4,004	20,091	1,162			(17)	(4,938)	20,302	323	20,625
Adoption of IFRS 9										–	–			–	–	(4)	(4)	–	(4)
Balance at January 1, 2018				4,004	20,091	1,162			(17)	(4,942)	20,298	323	20,621
Net earnings										–	–			–	–	2,929	2,929	44	2,973
Other comprehensive income										–	–			–	106	66	172	5	177
Total comprehensive income										–	–			–	106	2,995	3,101	49	3,150

Common shares issued under
employee stock option plan			27							–	13			(1)	–	–	12	–	12
Other share-based compensation										–	–			12	–	(24)	(12)	–	(12)
Repurchase of common shares			27							–	(69)			(3)	–	(103)	(175)	–	(175)	Consolidated	financial statements
Common shares issued for the
acquisition of AlarmForce Industries Inc. (AlarmForce)
			34, 27							–	1			–	–	–	1	–	1
Dividends declared on BCE common
and preferred shares										–	–			–	–	(2,856)	(2,856)	–	(2,856)
Dividends declared by subsidiaries
to non-controlling interest										–	–			–	–	–	–	(5)	(5)
Settlement of cash flow hedges
transferred to the cost basis of hedged items
										–	–			–	1	–	1	–	1
Return of capital to non-controlling interest										–	–			–	–	(7)	(7)	(44)	(51)
Other										–	–			–	–	–	–	3	3
Balance at December 31, 2018				4,004	20,036	1,170			90	(4,937)	20,363	326	20,689
BCE Inc. 2019 Annual Report	116

		CONSOLIDATED STATEMENTS OF CASH FLOWS
		FOR THE YEAR ENDED DECEMBER 31
		(IN MILLIONS OF CANADIAN DOLLARS)	2019	2018
		Cash flows from operating activitiesNet earnings
				3,253	2,973
		Adjustments to reconcile net earnings to cash flows from operating activities
		Severance, acquisition and other costs	114	136
		Depreciation and amortization	4,398	4,014
		Post-employment benefit plans cost	310	335
		Net interest expense		1,108	987
		Losses on investments	(13)	34
		Income taxes	1,133	995
		Contributions to post-employment benefit plans	(290)	(539)
		Payments under other post-employment benefit plans	(72)	(75)
		Severance and other costs paid		(168)	(138)
		Interest paid		(1,087)	(990)
		Income taxes paid (net of refunds)		(725)	(650)
		Acquisition and other costs paid		(60)	(79)
		Net change in operating assets and liabilities		57	381
		Cash flows from operating activities		7,958	7,384
		Cash flows used in investing activities
		Capital expenditures	(3,988)	(3,971)
		Business acquisitions	(51)	(395)
		Disposition of intangibles and other assets	34	–			68
		Acquisition of spectrum licences	–			(56)
		Other investing activities	3			(32)
		Cash flows used in investing activities		(4,036)	(4,386)
		Cash flows used in financing activities
		Decrease in notes payable		(1,073)	(123)
		Increase (decrease) in securitized trade receivables		131	(2)
		Issue of long-term debt	1,954	2,996
		Repayment of long-term debt	(2,228)	(2,713)
		Issue of common shares	240	11
		Purchase of shares for settlement of share-based payments	(142)	(222)
		Repurchase of common shares	27	–			(175)
		Cash dividends paid on common shares		(2,819)	(2,679)
		Cash dividends paid on preferred shares		(147)	(149)
		Cash dividends paid by subsidiaries to non-controlling interest		(65)	(16)

		Return of capital to non-controlling interest	–			(51)
		Other financing activities		(53)	(75)
		Cash flows used in financing activities		(4,202)	(3,198)
	Consolidated	financial statements
		Net decrease in cash		(284)	(17)
		Cash at beginning of year		425	442
		Cash at end of year		141	425
		Net increase (decrease) in cash equivalents	4			(183)
		Cash equivalents at beginning of year	–			183
		Cash equivalents at end of year	4			–
BCE Inc. 2019 Annual Report	117

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 5, 2020.
Note 2 Significant accounting policies
A) BASIS OF PRESENTATION
The financial statements were prepared in accordance with International		initial adoption of IFRS 16 was reflected as an adjustment to the deficit at January 1, 2019. Further details on the impacts of adopting IFRS 16 on our January 1, 2019 consolidated statement of financial position are provided below under T) Adoption of new or amended accounting standards and in Note 35, Adoption of IFRS 16.
Financial Reporting Standards (IFRS), as issued by the International
Accounting Standards Board (IASB). The financial statements have been
prepared on a historical cost basis, except for certain financial instruments that are measured at fair value as described in our accounting policies.
		All amounts are in millions of Canadian dollars, except where noted.
As required, we adopted IFRS 16 – Leases effective January 1, 2019. We
		FUNCTIONAL CURRENCY
adopted IFRS 16 using a modified retrospective approach whereby the financial statements of prior periods presented were not restated and continue to be reported under IAS 17 – Leases, as permitted by the specific transition provisions of IFRS 16. The cumulative effect of the
		The financial statements are presented in Canadian dollars, the
		company’s functional currency.
B) BASIS OF CONSOLIDATIONWe consolidate the financial statements of all of our subsidiaries. Subsidiaries are entities we control, where control is achieved when
		adjustments are made to the financial statements of acquired subsidiaries to conform their accounting policies to ours. Al intercompany transactions, balances, income and expenses are eliminated on consolidation.
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.
		Changes in BCE’s ownership interest in a subsidiary that do not result in a change of control are accounted for as equity transactions, with no effect on net earnings or on Other comprehensive income.
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,


C) REVENUE FROM CONTRACTS WITH CUSTOMERSRevenue is measured based on the value of the expected consideration
		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
in a contract with a customer and excludes sales taxes and other amounts we collect on behalf of third parties. We recognize revenue when control of a product or service is transferred to a customer. When our right to consideration from a customer corresponds directly with the value to the customer of the products and services transferred to date, we recognize revenue in the amount to which we have a right to invoice.	Notes to consolidated	financial statements
		for market conditions and other factors, as appropriate. When similar products and services are not sold separately, we use the expected cost plus margin approach to determine stand-alone selling prices. Products and services purchased by a customer in excess of those included in the bundled arrangement are accounted for separately.
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
		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.
BCE Inc. 2019 Annual Report	118

		A contract asset is recognized in the consolidated statements of financial	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.
		position (statements of financial position) when our right to consideration from the transfer of products or services to a customer is conditional on our obligation to transfer other products or services. Contract assets are transferred to trade receivables when our right to consideration becomes conditional only as to the passage of time. A contract liability is recognized in the statements of financial position when we receive consideration in advance of the transfer of products or services to the customer. Contract assets and liabilities relating to the same contract are presented on a net basis.
			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.
		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.
			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.
		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.
			MEDIA SEGMENT REVENUESOur Media segment principally generates revenue from conventional
		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.
			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.
		For wireless products and services that are sold separately, customers usually pay in full at the point of sale for products and on a monthly basis for services. For wireless products and services sold in bundled arrangements, customers pay monthly over a contract term of up to
		24 months for residential customers and up to 36 months for business
		customers.
		D) SHARE-BASED PAYMENTSOur share-based payment arrangements include stock options,
			vesting period, with a corresponding credit to contributed surplus. Additional RSUs/PSUs are issued to reflect dividends declared on the common shares.
		restricted share units and performance share units (RSUs/PSUs), deferred share units (DSUs), an employee savings plan (ESP) and a deferred share plan (DSP).

			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.
		STOCK OPTIONSWe use a fair value-based method to measure the cost of our employee stock options, based on the number of stock options that are expected
		to vest. We recognize compensation expense in Operating costs in the consolidated income statements (income statements). Compensation expense is adjusted for subsequent changes in management’s estimate of the number of stock options that are expected to vest.
	Notes to consolidated	financial statements
			DSUsIf compensation is elected to be taken in DSUs, we issue DSUs equal to
		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.
			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 fol owing 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
		RSUs/PSUsFor each RSU/PSU granted, we recognize compensation expense in Operating costs in the income statements, equal to the market value of a BCE common share at the date of grant and based on the number of RSUs/PSUs expected to vest, recognized over the term of the
			surplus is reflected in the deficit.
BCE Inc. 2019 Annual Report	119

ESPWe recognize our ESP contributions as compensation expense in Operating costs in the income statements. We credit contributed surplus		DSPFor each deferred share granted under the DSP, we recognize compensation expense in Operating costs in the income statements equal to the market value of a BCE common share. Deferred shares are no longer granted except those issued to reflect dividends declared on common shares.
for the ESP expense recognized over the two-year vesting period, based on management’s estimate of the accrued contributions that are expected to vest. Upon settlement of shares under the ESP, any difference between the cost of shares purchased on the open market and the amount credited to contributed surplus is reflected in the deficit.
		Compensation expense is adjusted for subsequent changes in the market value of BCE common shares. The cumulative effect of any change in value is recognized in the period of the change. Participants have the option to receive either BCE common shares or a cash equivalent for each vested deferred share upon qualifying for payout under the terms of the grant.
E) INCOME AND OTHER 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 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:• temporary differences between the carrying amount of assets and
		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 in the statements of financial position when they are expected
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.		to be utilized in the next year. We use the cost reduction method to account for ITCs and government grants, under which the credits are applied against the expense or asset to which the ITC or government grant relates.
F) CASH EQUIVALENTSCash equivalents are comprised of highly liquid investments with original maturities of three months or less from the date of purchase.
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.
Notes to consolidatedfinancial statements
		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.
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
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 our outstanding long-term debt. Gains or losses on the sale or retirement of property, plant and equipment are recorded in Other expense in the income statements.
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	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.
		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.
			They are subsequently depreciated on a straight-line basis and reduced
		We adopted IFRS 16 as of January 1, 2019. For periods prior to January 1,	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.
		2019, we continue to apply IAS 17, as permitted by the specific transition
		provisions of IFRS 16. We are currently assessing the impacts of the International Financial Reporting Interpretations Committee (IFRIC) agenda decision published in December 2019 in regards to determination of the lease term for cancellable or renewable leases under IFRS 16. As permitted by the IASB, implementation of the decision is expected in the first quarter of 2020.
		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 al ocated 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.
			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. If there is reasonable certainty that the lease transfers ownership of the asset to us by the end of the lease term, the asset is amortized over its useful life. Otherwise, the asset is amortized over the shorter of its useful life and the lease term.
		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:• 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
			The long-term lease liability is measured at amortized cost using the
			effective interest method.
			All other leases are classified as operating leases. We recognize
			operating lease expense in Operating costs in the income statements on a straight-line basis over the term of the lease.
		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)
			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.
		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 in

		J) INTANGIBLE ASSETSFINITE-LIFE INTANGIBLE ASSETSFinite-life intangible assets are recorded at cost less accumulated
	Notes to consolidated	financial statements
			• it is probable that economic benefits will be generated• costs attributable to the asset can be measured reliably
		amortization and accumulated impairment losses, if any.
			CUSTOMER RELATIONSHIPSCustomer relationship assets are acquired through business combinations and are recorded at fair value at the date of acquisition.
		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
		Software development costs are capitalized when all the following
		conditions are met:• technical feasibility can be demonstrated• management has the intent and the ability to complete the asset for
		use or sale
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impairment losses, if any. Programs and feature films under licence agreements are recorded as assets for rights acquired and Iiabilities for obligations incurred when:		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, less accumulated impairment losses, if any. Wireless spectrum licences are recorded at acquisition cost, including borrowing costs when the
• we receive a broadcast master and the cost is known or reasonably
determinable for new program and feature film licences; or
• the licence term commences for licence period extensions or
syndicated programs		time to build or develop the related network is in excess of one year. Borrowing costs are calculated at a rate that is based on our weighted average interest rate on our outstanding long-term debt.
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.
		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 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.
		equity interest over the fair value of identifiable net assets acquired is recorded as Goodwill in the statements of financial position. If the fair value of identifiable net assets acquired exceeds the purchase consideration and any previously-held equity interest, the difference is recognized in Other expense in the income statements immediately as a bargain purchase gain.
The consideration transferred in a business combination is measured
at fair value at the date of acquisition. Acquisition-related transaction costs are expensed as incurred and recorded in Severance, acquisition and other costs in the income statements.


Identifiable assets and liabilities, including intangible assets, of acquired businesses are recorded at their fair values at the date of acquisition. When we acquire control of a business, any previously-held equity interest is remeasured to fair value and any gain or loss on remeasurement is recognized in Other expense in the income statements.
		Changes in our ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Any difference between the change in the carrying amount of non-controlling interest (NCI) and the consideration paid or received is attributed to owner’s equity.
Notes to consolidatedfinancial statements
The excess of the purchase consideration and any previously-held
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.
BCE Inc. 2019 Annual Report	122

		GOODWILL IMPAIRMENT TESTINGWe perform an annual test for goodwill impairment in the fourth quarter	and value in use are based on estimates of discounted future cash flows or other valuation methods. Cash flows are projected based on past experience, actual operating results and business plans. When the recoverable amount of a CGU or group of CGUs is less than its carrying value, the recoverable amount is determined for its identifiable assets and liabilities. The excess of the recoverable amount of the CGU or group of CGUs over the total of the amounts assigned to its assets and liabilities is the recoverable amount of goodwill.
		for each of our cash generating units (CGUs) or groups of CGUs to which goodwill is allocated, and whenever there is an indication that goodwill might be impaired.
		A CGU is the smallest identifiable group of assets that generates cash
		inflows that are independent of the cash inflows from other assets or groups of assets.
			An impairment charge is recognized in Other expense in the income statements for any excess of the carrying value of goodwill over its
		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
			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, Segmented information.
		O) FINANCIAL INSTRUMENTS AND CONTRACT ASSETSWe measure trade and other receivables at amortized cost using the
			Radio-television and Telecommunications Commission (CRTC), interest payable and long-term debt, are recorded at amortized cost using the effective interest method.
		effective interest method, net of any allowance for doubtful accounts.
		Our portfolio investments in equity securities are classified as fair value through other comprehensive income (FVOCI) and are presented in our statements of financial position as Other non-current assets. These securities are recorded at fair value on the date of acquisition, including related transaction costs, and are adjusted to fair value at each reporting date. The corresponding unrealized gains and losses are recorded in Other comprehensive income in the consolidated statements of comprehensive income (statements of comprehensive income) and are reclassified from Accumulated other comprehensive income to Deficit in the statements of financial position when realized.
			We measure the allowance for doubtful accounts and impairment of contract assets based on an expected credit loss (ECL) model, which takes into account current economic conditions, historical information, and forward-looking information. We use the simplified approach for measuring losses based on the lifetime ECL for trade and other receivables and contract assets. Amounts considered uncollectible are written off and recognized in Operating costs in the income statements.
			The cost of issuing debt is included as part of long-term debt and is
			accounted for at amortized cost using the effective interest method.
		Other financial liabilities, which include trade payables and accruals, compensation payable, obligations imposed by the Canadian	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 interest rate risk,
			We use foreign currency forward contracts to manage the foreign currency exposure relating to anticipated purchases and sales denominated in foreign currencies. Changes in the fair value of these foreign currency forward contracts are recognized in our statements of comprehensive income, except for any ineffective portion, which is recognized immediately in Other expense in the income statements. Realized gains and losses in Accumulated other comprehensive 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.
		foreign currency risk and cash flow exposures related to share-based payment plans, capital expenditures, long-term debt instruments and operating revenues and expenses. We do not use derivative financial instruments for speculative or trading purposes.
		Derivatives that mature within one year are included in Other current assets or Trade payables and other liabilities in the statements of financial position, whereas derivatives that have a maturity of more than one year are included in Other non-current assets or Other non-current liabilities.

			We use foreign currency forward contracts and cross currency interest rate swaps to manage our U.S. dollar debt under our U.S. commercial paper program and our U.S. dol ar long-term debt. Changes in the fair value of these derivatives and the related debt are recognized in Other expense in the income statements and offset, unless a portion of the hedging relationship is ineffective.
		HEDGE ACCOUNTING
		To qualify for hedge accounting, we document the relationship between
		the derivative and the related identified risk exposure, and our risk management objective and strategy. This includes associating each derivative to a specific asset or liability, commitment, or anticipated transaction.	Notes to consolidated	financial statements
			DERIVATIVES USED AS ECONOMIC HEDGESWe use derivatives to manage cash flow exposures related to equity-settled share-based payment plans and anticipated purchases, equity price risk related to a cash-settled share-based payment plan and interest rate risk related to preferred share dividend rate resets. As
		We assess the effectiveness of a derivative in managing an identified risk exposure when hedge accounting is initially applied, and on an ongoing basis thereafter. If a hedging relationship ceases to meet the qualifying criteria, we discontinue hedge accounting prospectively.
		CASH FLOW HEDGESWe enter into cash flow hedges to mitigate foreign currency risk on certain debt instruments and anticipated purchases and sales, as well as interest rate risk related to anticipated debt issuances.
			these derivatives do not qualify for hedge accounting, the changes in their fair value are recorded in the income statements in Operating costs for derivatives used to hedge cash-settled share-based payments and in Other expense for other derivatives.
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Q) POST-EMPLOYMENT BENEFIT PLANSDEFINED BENEFIT (DB) AND OTHER
		We value post-employment benefit plan assets at fair value using current market values.
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.
		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
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.		beginning of the year. Actuarial gains and losses for all post-employment benefit plans are recorded in Other comprehensive income in the statements of comprehensive income in the period in which they occur and are recognized immediately in the deficit.
		December 31 is the measurement date for our significant post-employment benefit plans. Our actuaries perform a valuation based on management’s assumptions at least every three years to determine the actuarial present value of the accrued DB pension plans and OPEB obligations. The most recent actuarial valuation of our significant pension plans was as at December 31, 2018.
We provide OPEBs to some of our employees, including:• healthcare and life insurance benefits during retirement, which were
phased out for new retirees since December 31, 2016. Most of these OPEB plans are unfunded and benefits are paid when incurred.
• other benefits, including workers’ compensation and medical benefits
to former or inactive employees, their beneficiaries and dependants, from the time their employment ends until their retirement starts, under certain circumstances		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.
We accrue our obligations and related costs under post-employment benefit plans, net of the fair value of the benefit plan assets. Pension and OPEB costs are determined using:• the projected unit credit method, prorated on years of service, which
		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.
takes into account future pay levels
• a discount rate based on market interest rates of high-quality corporate
		Generally, new employees can only participate in the DC pension plans.
fixed income investments with maturities that match the timing of benefits expected to be paid under the plans
• management’s best estimate of pay increases, retirement ages of
employees, expected healthcare costs and life expectancy
R) PROVISIONSProvisions are recognized when all the following conditions are met:• the company has a present legal or constructive obligation based on
		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.
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
Notes to consolidatedfinancial statements
		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
and judgments relating to:• reported amounts of revenues and expenses• reported amounts of assets and liabilities• disclosure of contingent assets and liabilities
We base our estimates on a number of factors, including historical experience, current events and actions that the company may undertake in the future, and other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ. Our more significant estimates and judgments are described below.
		to change.
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		POST-EMPLOYMENT BENEFIT PLANS	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.
		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.
			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.
		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.
			JUDGMENTSPOST-EMPLOYMENT BENEFIT PLANS
		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.
			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.
		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.
			INCOME TAXES
		DEFERRED TAXES	The calculation of income taxes requires judgment in interpreting tax
		The amounts of deferred tax assets and liabilities are estimated	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.
		with consideration given to the timing, sources and amounts of future taxable income.
		LEASES
			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.
		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.
			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.

		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.
	Notes to consolidated	financial statements
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REVENUE FROM CONTRACTS WITH CUSTOMERSCGUs
The identification of performance obligations within a contract and the		The determination of CGUs or groups of CGUs for the purpose of
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.		impairment testing requires judgment.
		CONTINGENCIES
		The determination of whether a loss is probable from claims and legal
		proceedings and whether an outflow of resources is likely requires judgment.
T) ADOPTION OF NEW OR AMENDED ACCOUNTING STANDARDSAs required, effective January 1, 2019, we adopted the following new or amended accounting standards.
STANDARDDESCRIPTIONIMPACT
IFRS 16 – Leases Eliminates the distinction between operating				We adopted IFRS 16 using a modified retrospective approach whereby the financial statements of prior periods presented were not restated and continue to be reported under IAS 17 – Leases, as permitted by the specific transition provisions of IFRS 16. The cumulative effect of the initial adoption of IFRS 16 was reflected as an adjustment to the deficit at January 1, 2019. Further details on the impacts of adopting IFRS 16 on our January 1, 2019 consolidated statement of financial position are provided in Note 35, Adoption of IFRS 16. We are currently assessing the impacts of the IFRIC agenda decision published in December 2019 in regards to determination of the lease term for cancellable or renewable leases under IFRS 16. As permitted by the IASB, implementation of the decision is expected in the first quarter of 2020.Under IAS 17, leases of property, plant and equipment were recognized as finance leases when we obtained substantially all the risks and rewards of ownership of the underlying assets.
			and finance leases for lessees, requiring instead that leases be capitalized by recognizing the present value of the lease payments and showing them either as lease assets (right-of-use assets) or together with property, plant and equipment. If lease payments are made over time, an entity recognizes a financial liability representing its obligation to make future lease payments.
			A depreciation charge for the lease asset
			is recorded within operating costs and an interest expense on the lease liability is recorded within finance costs.IFRS 16 does not substantially change lease accounting for lessors.	All other leases were classified as operating leases. IFRS 16 eliminates the distinction between
				operating and finance leases for lessees, requiring instead that we recognize a right-of-use asset and a lease liability at lease commencement for all leases, with certain exceptions permitted through elections and practical expedients. Accounting for leases previously classified as finance leases and lessor accounting remains largely unchanged under IFRS 16.We recognized lease liabilities at January 1, 2019 for leases previously classified as operating leases, measured at the present value of lease payments using our incremental borrowing rate at that date. Property, plant and equipment includes the corresponding right-of-use assets also recognized at January 1, 2019. The right-of-use assets were generally measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet as at December 31, 2018. In certain cases, the right-of-use assets were measured as though IFRS 16 had been applied since the lease commencement date. A depreciation charge for right-of-use assets is recorded in Depreciation and an interest expense on lease liabilities is recorded in Finance costs in the income statement.
				As permitted by IFRS 16, we elected not to recognize lease liabilities and right-of-use assets
				for short-term leases and leases of low value assets, which will continue to be expensed on a straight-line basis over the lease term. We have also applied certain practical expedients to facilitate the initial adoption and ongoing application of IFRS 16:• We generally do not separate non-lease components from related lease components.
				Each lease component and any associated non-lease components are accounted for as a single lease component
				• We apply a single incremental borrowing rate to a portfolio of leases with similar

				characteristics
				• As an alternative to performing an impairment review, we adjusted right-of-use assets
				for any onerous lease provisions recognized in the balance sheet at December 31, 2018
				• We applied the exemption not to recognize right-of-use assets and liabilities for certain
				leases with a remaining term of 12 months or less as of January 1, 2019
				• We used hindsight when determining the lease term when the lease contracts contain
				options to extend or terminate the lease	Notes to consolidated	financial statements
IFRIC 23 – Uncertainty over Income Tax			Provides guidance on the application of IAS 12 – Income Taxes when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers uncertain tax treatments separately or as a group, the examination of tax treatments by taxation authorities, the recognition and measurement of the effect of tax uncertainties and how an entity considers changes in facts and circumstances.	IFRIC 23 did not have a significant impact on our financial statements.
Treatments
BCE Inc. 2019 Annual Report	126

		U) FUTURE CHANGES TO ACCOUNTING STANDARDS
		The following amended standard issued by the IASB has an effective date after December 31, 2019 and has not yet been adopted by BCE.
		STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
		Amendments	These amendments to the implementation	The amendments to IFRS 3 – Business Combinations may affect whether	Prospectively for acquisitions occurring on or after January 1, 2020.
		to IFRS 3 – Business	guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition.	future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.
		Combinations
		Note 3 Segmented informationThe accounting policies used in our segment reporting are the same
					are managed on a corporate basis and, accordingly, are not reflected in segment results.
		as those we describe in Note 2, Significant accounting policies. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.
					Substantially all of our operations and assets are located in Canada.
					Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers across Canada.
		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.
					Our Bell Wireline segment provides data, including Internet access and IPTV, local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satel ite 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.
		To align with changes in how we manage our business and assess
		performance, the operating results of The Source (Bell) Electronics Inc. (The Source) are now entirely included within our Wireless segment effective January 1, 2019, with prior periods restated for comparative purposes. Previously, The Source’s results were included within our Wireless and Wireline segments.
		We measure the performance of each segment based on segment profit, which is equal to operating revenues less operating costs for the segment. Substantially all of our severance, acquisition and other costs, depreciation and amortization, finance costs and other expense
					Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and OOH advertising services to customers nationally across Canada.
		SEGMENTED INFORMATION
							BELL	BELL	BELL	INTER-SEGMENT
		FOR THE YEAR ENDED DECEMBER 31, 2019				NOTE	WIRELESS				WIRELINE	MEDIA	ELIMINATIONS	BCE
		Operating revenues
		External customers					9,087	12,066	2,811	–								23,964
		Inter-segment			55			290	406			(751)	–

		Total operating revenues					9,142	12,356	3,217			(751)	23,964
		Operating costs				4	(5,300)				(6,942)	(2,367)			751	(13,858)
		Segment profit (1)					3,842	5,414	850	–								10,106
		Severance, acquisition and other costs				5					(114)
		Depreciation and amortization				14, 16					(4,398)
	Notes to consolidated	financial statements
		Finance costs
		Interest expense				6					(1,132)
		Interest on post-employment
													benefit obligations	24			(63)
		Other expense				7					(13)
		Income taxes				8					(1,133)
		Net earnings									3,253
		Goodwill				19	3,048	4,673	2,946	–								10,667
		Indefinite-life intangible assets				16	3,948	1,692	2,381	–								8,021
		Capital expenditures					697	3,183	108	–								3,988
		(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
BCE Inc. 2019 Annual Report	127

			BELL	BELL	BELL	INTER-SEGMENT
FOR THE YEAR ENDED DECEMBER 31, 2018		WIRELESS	WIRELINE	MEDIA	ELIMINATIONS	BCE
Operating revenues
External customers			8,766	2,677			–	23,468
Inter-segment			52	444			(738)	–
Total operating revenues			8,818	3,121			(738)	23,468
Operating costs		4	(5,297)	(2,428)			738	(13,933)
Segment profit (1)			3,521	693			–	9,535
Severance, acquisition and other costs						(136)
Depreciation and amortization						(4,014)
Finance costs
Interest expense						(1,000)
Interest on post-employment
									benefit obligations	(69)
Other expense						(348)
Income taxes						(995)
Net earnings							2,973
Goodwill		19	3,048	2,931			–	10,658
Indefinite-life intangible assets		16	3,948	2,467			–	8,107
Capital expenditures			664	114			–	3,971
(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
REVENUES BY SERVICES AND PRODUCTS
The following table presents our revenues disaggregated by type of services and products.
FOR THE YEAR ENDED DECEMBER 31								2019	2018
Services (1)
Wireless								6,427	6,269
Wireline data								7,684	7,466
Wireline voice								3,564	3,782
Media								2,811	2,677
Other wireline services								251	247
Total services						20,737	20,441
Products (2)
Wireless								2,660	2,497
Wireline data								519	466
Wireline equipment and other								48	64
Total products								3,227	3,027

Total operating revenues						23,964	23,468
(1) Our service revenues are generally recognized over time.(2) Our product revenues are generally recognized at a point in time.
Notes to consolidatedfinancial statements
BCE Inc. 2019 Annual Report	128

		Note 4 Operating costs
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Labour costs
		Wages, salaries and related taxes and benefits (1)		(4,303)	(4,284)
		Post-employment benefit plans service cost (net of capitalized amounts)	(247)	(266)
		Other labour costs (1) (2)		(1,005)	(1,042)
		Less:
		Capitalized labour (1)		1,032	1,052
		Total labour costs		(4,523)	(4,540)
		Cost of revenues (1) (3)		(7,380)	(7,349)
		Other operating costs (1) (4)		(1,955)	(2,044)
		Total operating costs		(13,858)	(13,933)
		(1) We have reclassified amounts from the previous period to make them consistent with the presentation for the current period.(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 $109 million and $106 million are included in operating costs for 2019 and 2018, respectively.
		Note 5 Severance, acquisition and other costs
		FOR THE YEAR ENDED DECEMBER 31		2019	2018
		Severance		(63)	(92)
		Acquisition and other		(51)	(44)
		Total severance, acquisition and other costs		(114)	(136)
		SEVERANCE COSTSSeverance costs consist of charges related to involuntary and voluntary employee terminations. In 2018, severance costs include a 4% reduction
		in management workforce across BCE.
		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 and litigation costs, when they are significant.

		Note 6 Interest expense
		FOR THE YEAR ENDED DECEMBER 31		2019	2018
	Notes to consolidated	financial statements
		Interest expense on long-term debt		(1,024)	(918)
		Interest expense on other debt		(153)	(133)
		Capitalized interest		45	51
		Total interest expense		(1,132)	(1,000)
		Included in interest expense on long-term debt is interest on lease liabilities of $220 million for 2019 and interest on finance leases of				Capitalized interest was calculated using an average rate of 3.96% and
						3.88% for 2019 and 2018, respectively, which represents the weighted
		$142 million for 2018.				average interest rate on our outstanding long-term debt.
BCE Inc. 2019 Annual Report	129

Note 7 Other expense
FOR THE YEAR ENDED DECEMBER 31		2019	2018
Impairment of assets		(102)	(200)
	17
Losses on investments			(53)	(20)
Operations			(19)	(15)
Early debt redemption costs		(18)	(20)
(Losses) gains on retirements and disposals of property, plant and equipment and intangible assets			(9)	11
Net mark-to-market gains (losses) on derivatives used to economically hedge equity settled
share-based compensation plans			138	(80)
Gains (losses) on investments			13	(34)
Other			37	10
Total other expense			(13)	(348)
IMPAIRMENT OF ASSETS2019
					2018Impairment charges in 2018 included $145 million allocated to indefinite-life intangible assets, and $14 million allocated to finite-life intangible assets. These impairment charges primarily relate to our French TV channels within our Bell Media segment. These impairments were the result of revenue and profitability declines from lower audience levels and subscriber erosion. The charges were determined by comparing the carrying value of the CGUs to their fair value less costs of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of January 1, 2019 to December 31, 2023, using a discount rate of 8.0% to 8.5% and a perpetuity growth rate of nil, as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $515 million at December 31, 2018. In the previous year’s impairment analysis, the company’s French Pay and French Specialty TV channels were tested for recoverability separately. In 2018, the CGUs were grouped to form one French CGU which reflects the evolution of the cash flows from our content strategies as well as the CRTC beginning
Impairment charges in 2019 included $85 million allocated to indefinite-life intangible assets, and $8 million allocated primarily to property, plant and equipment. These impairment charges relate to broadcast licences and certain assets for various radio markets within our Bell Media segment. The impairment charges were a result of continued advertising demand and ratings pressures in the industry resulting from audience declines, as well as competitive pressure from streaming services. The charges 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 January 1, 2020 to December 31, 2024, using a discount rate of 7.5% and a perpetuity growth rate of nil as well as market multiple data from public companies and market transactions.
The carrying value of these CGUs was $464 million at December 31, 2019.
					to regulate Canadian broadcasters under a group licence approach based on language.
					Additionally, in 2018, we recorded an indefinite-life intangible asset

					impairment charge of $31 million within our Bell Media segment as a result of a strategic decision to retire a brand.
EQUITY LOSSES FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURESWe recorded a loss on investment of $53 million and $20 million in 2019
Notes to consolidatedfinancial statements
					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.
and 2018, respectively, related to equity losses on our share of an obligation to repurchase at fair value the minority interest in one of
GAINS (LOSSES) ON INVESTMENTS
In 2019 we recorded gains of $13 million which included a gain on an obligation to repurchase at fair value the minority interest in one of our subsidiaries.					In 2018, we recorded losses of $34 million which included a loss on an obligation to repurchase at fair value the minority interest in one of our subsidiaries.
BCE Inc. 2019 Annual Report	130

		Note 8 Income taxes The following table shows the significant components of income taxes deducted from net earnings.
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Current taxes
		Current taxes	(761)	(775)
		Uncertain tax positions	6				8
		Change in estimate relating to prior periods	22	12
		Deferred taxes
		Deferred taxes relating to the origination and reversal of temporary differences	(322)	(352)
		Change in estimate relating to prior periods	(8)				8
		Recognition and utilization of loss carryforwards	(106)	44
		Effect of change in provincial corporate tax rate	27	–
		Uncertain tax positions	9				60
		Total income taxes	(1,133)	(995)
		The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income
		tax rate of 27.0% for both 2019 and 2018.
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Net earnings	3,253	2,973
		Add back income taxes	1,133	995
		Earnings before income taxes	4,386	3,968
		Applicable statutory tax rate	27.0%	27.0%
		Income taxes computed at applicable statutory rates	(1,184)	(1,071)
		Non-taxable portion of gains (losses) on investments	4				(9)
		Uncertain tax positions	15	68
		Effect of change in provincial corporate tax rate	27	–
		Change in estimate relating to prior periods	14	20
		Non-taxable portion of equity losses	(20)	(10)
		Previously unrecognized tax benefits	9				–
		Other	2				7
		Total income taxes	(1,133)	(995)
		Average effective tax rate	25.8%	25.1%
		The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.
					2019	2018
					OTHER	OTHER
						COMPREHENSIVE			COMPREHENSIVE
		FOR THE YEAR ENDED DECEMBER 31					INCOME	DEFICIT	INCOME	DEFICIT
		Current taxes			3			4	41	5
		Deferred taxes			(90)			13	(104)	(11)
		Total income taxes (expense) recovery			(87)			17	(63)	(6)
	Notes to consolidated	financial statements
BCE Inc. 2019 Annual Report	131

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	INTANGIBLE	TANGIBLE
NET DEFERRED TAX LIABILITYFORWARDSPLANSASSETSASSETSBENEFITSOTHERTOTAL
January 1, 2018		17	494	(1,761)	(1,400)	30	(106)	(2,726)
Income statement		109	(14)	(2)	(248)	(14)	(71)	(240)
Business acquisitions		3	–						–	(16)	–	1	(12)
Other comprehensive income		–	(65)						–	–	–	(39)	(104)
Deficit		–	–						–	–	–	(11)	(11)
Other		–	–						–	15	–	27	42
December 31, 2018		129	415	(1,763)	(1,649)	16	(199)	(3,051)
Adoption of IFRS 16		–	–						–	7	–	–	7
January 1, 2019		129	415	(1,763)	(1,642)	16	(199)	(3,044)
Income statement		(105)	3						–	(177)	(9)	(112)	(400)
Business acquisitions		5	–						–	(6)	–	(1)	(2)
Other comprehensive income		–	(54)						–	–	–	(36)	(90)
Deficit		–	–						–	–	–	13	13
Other		2	–						–	46	–	12	60
December 31, 2019		31	364	(1,763)	(1,779)	7	(323)	(3,463)
At December 31, 2019, BCE had $215 million of non-capital loss			At December 31, 2018, BCE had $645 million of non-capital loss
carryforwards. We:• recognized a deferred tax asset of $31 million for $122 million of the			carryforwards. We:• recognized a deferred tax asset of $129 million for $478 million of the
non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2024 to 2039.			non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2024 to 2038.
• did not recognize a deferred tax asset for $93 million of non-capital			• did not recognize a deferred tax asset for $167 million of non-capital
loss carryforwards. This balance expires in varying annual amounts from 2023 to 2037.			loss carryforwards. This balance expires in varying annual amounts from 2023 to 2038.
At December 31, 2019, BCE had $734 million of unrecognized capital			At December 31, 2018, BCE had $806 million of unrecognized capital
loss carryforwards which can be carried forward indefinitely.			loss carryforwards which can be carried forward indefinitely.
Note 9 Earnings per shareThe following table shows the components used in the calculation of basic and diluted earnings per common share for earnings attributable to
common shareholders.


FOR THE YEAR ENDED DECEMBER 31							2019	2018
Net earnings attributable to common shareholders – basic						3,040		2,785
Dividends declared per common share (in dollars)							3.17	3.02
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic						900.8		898.6
							0.6	Notes to consolidated	financial statements
Assumed exercise of stock options (1)								0.3
Weighted average number of common shares outstanding – diluted (in millions)						901.4		898.9
(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the
exercise price is higher than the average market value of a BCE common share. The number of excluded options was 61,170 in 2019 and 12,252,594 in 2018.
BCE Inc. 2019 Annual Report	132

		Note 10 Trade and other receivables
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Trade receivables (1)		2,981	3,026
		Allowance for revenue adjustments		(104)	(106)
		Allowance for doubtful accounts	(62)	(51)
		Current tax receivable		23	14
		Other accounts receivable		200	123
		Total trade and other receivables		3,038	3,006
		(1) The details of securitized trade receivables are set out in Note 21, Debt due within one year.
		Note 11 Inventory
		FOR THE YEAR ENDED DECEMBER 31		2019	2018
		Wireless devices and accessories		199	202
		Merchandise and other		228	230
		Total inventory		427	432
		The total amount of inventory subsequently recognized as an expense in cost of revenues was $3,141 million and $2,971 million for 2019 and
		2018, respectively.
		Note 12 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				2019	2019	2018
		Opening balance, January 1				1,493	899	894
		Revenue recognized included in contract liabilities at the beginning of the year				–	(666)	(625)
		Revenue recognized from contract liabilities included in contract assets
		at the beginning of the year				131	154	–	–
		Increase in contract liabilities during the year				–	644	628
		Increase in contract liabilities included in contract assets during the year				(175)	(168)	–	–
		Increase in contract assets from revenue recognized during the year				1,915	1,770	–	–
		Contract assets transferred to trade receivables				(1,461)	47	–
		Acquisitions				–	–	(4)	13
		Contract terminations transferred to trade receivables				(205)	24	(4)
		Other				(54)	(54)	(7)

		Ending balance, December 31				1,644	890	899
		(1) Net of allowance for doubtful accounts of $68 million and $73 million at December 31, 2019 and December 31, 2018, respectively. We have updated amounts for the prior year to make
		them consistent with the presentation for the current year. See Note 26, Financial and capital management, for additional details.
		Notes to consolidated	financial statements
		FOR THE YEAR ENDED DECEMBER 31		2019	2018
		Opening balance, January 1		707	636
		Incremental costs of obtaining a contract and contract fulfillment costs		602	567
		Amortization included in operating costs		(523)	(477)
		Impairment charges included in operating costs	(3)					(19)
		Ending balance, December 31		783	707
		Contract costs are amortized over a period ranging from 12 to 84 months.
BCE Inc. 2019 Annual Report	133

Note 14 Property, plant and equipment
			NETWORK
			INFRASTRUCTURE	LAND AND	ASSETS UNDER
FOR THE YEAR ENDED DECEMBER 31, 2019		AND EQUIPMENT (1)	BUILDINGS (1)	CONSTRUCTION	TOTAL
COSTDecember 31, 2018
			64,248	6,071	1,764	72,083
Adoption of IFRS 16		2, 35	800			–	2,257
January 1, 2019			65,048	7,528	1,764	74,340
Additions			2,510	569	1,705	4,784
Acquired through business combinations			3			–	41
Transfers			1,132	(9)	(1,782)	(659)
Retirements and disposals			(1,085)			–	(1,128)
Impairment losses recognized in earnings		7	(11)			–	(15)
December 31, 2019			67,597	8,079	1,687	77,363
ACCUMULATED DEPRECIATION
January 1, 2019			43,834			–	47,239
Depreciation			3,030			–	3,496
Retirements and disposals			(1,003)			–	(1,030)
Other			53			–	22
December 31, 2019			45,914			–	49,727
NET CARRYING AMOUNT
January 1, 2019			21,214	4,123	1,764	27,101
December 31, 2019			21,683	4,266	1,687	27,636
(1) Includes right-of-use assets. See Note 15, Leases, for additional details.
			NETWORK
			INFRASTRUCTURE	LAND AND	ASSETS UNDER
FOR THE YEAR ENDED DECEMBER 31, 2018		AND EQUIPMENT	BUILDINGS	CONSTRUCTION	TOTAL (1)
COST
January 1, 2018			61,484	5,961	1,774	69,219
Additions			2,699	72	1,437	4,208
Acquired through business combinations			144			–	193
Transfers			898	43	(1,447)	(506)
Retirements and disposals			(969)			–	(1,023)
Impairment losses recognized in earnings		7	(8)					–	–	(8)
December 31, 2018			64,248	6,071	1,764	72,083
ACCUMULATED DEPRECIATION
January 1, 2018			41,949	3,241			–	45,190

Depreciation			2,923			–	3,145
Retirements and disposals			(931)			–	(983)
Other			(107)			–	(113)
December 31, 2018			43,834			–	47,239
NET CARRYING AMOUNTNotes to consolidatedfinancial statements
January 1, 2018			19,535	2,720	1,774	24,029
December 31, 2018			20,414	2,666	1,764	24,844
(1) Includes assets under finance lease. See Note 15, Leases, for additional details
BCE Inc. 2019 Annual Report	134

		Note 15 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 statement of financial position.
			NETWORK
			INFRASTRUCTURE	LAND AND
		FOR THE YEAR ENDED DECEMBER 31, 2019	AND EQUIPMENT	BUILDINGS	TOTAL
		COST
		January 1, 2019	3,329	2,453	5,782
		Additions	527	513	1,040
		Transfers	(233)	–		(233)
		Acquired through business combinations	–	8		8
		Lease terminations	(12)	(38)	(50)
		Impairment losses recognized in earnings	(2)	(3)		(5)
		December 31, 2019	3,609	2,933	6,542
		ACCUMULATED DEPRECIATION
		January 1, 2019	1,042	536	1,578
		Depreciation	373	303	676
		Transfers	(111)	–		(111)
		Lease terminations	(3)	(22)	(25)
		December 31, 2019	1,301	817	2,118
		NET CARRYING AMOUNT
		January 1, 2019	2,287	1,917	4,204
		December 31, 2019	2,308	2,116	4,424
		LEASES IN THE INCOME STATEMENT
		The following table provides the expenses related to leases recognized in the income statement.
		FOR THE YEAR ENDED DECEMBER 31			2019
		Interest expense on lease liabilities			220
		Variable lease payment expenses not included in the measurement of lease liabilities			161
		Expenses for leases of low value assets			58
		Expenses for short-term leases			30
		Rental expense relating to operating leases was $352 million in 2018.

		LEASES IN THE STATEMENT OF CASH FLOWS
		Total cash outflow related to leases was $1,239 million for the period ended December 31, 2019.
	Notes to consolidated	financial statements
BCE Inc. 2019 Annual Report	135

FINANCE LEASES UNDER IAS 17
The following table shows the net carrying amount and additions to assets under finance leases for the year ended December 31, 2018.
			NET CARRYING
FOR THE YEAR ENDED DECEMBER 31, 2018		ADDITIONS	AMOUNT
Network infrastructure and equipment		405	1,487
Land and buildings				1	460
Total		406	1,947
ADDITIONAL DISCLOSURESSee Note 2, Significant accounting policies, and Note 35, Adoption of IFRS 16, for the impacts upon adoption of IFRS 16 as at January 1, 2019.
						See Note 26, Financial and capital management, for a maturity analysis
						of lease liabilities.
See Note 21, Debt due within one year, and Note 22, Long-term debt, for						See Note 31, Commitments and contingencies, for leases committed
lease liabilities balances included in the statement of financial position.						but not yet commenced as at December 31, 2019.
Note 16 Intangible assets
							FINITE-LIFE	INDEFINITE-LIFE
											CUSTOMER	PROGRAM	SPECTRUM	TOTAL
FOR THE YEAR ENDED											RELATION-	AND FEATURE	AND OTHER	BROADCAST	INTANGIBLE
DECEMBER 31, 2019									NOTE	SOFTWARE	SHIPS	FILM RIGHTS	OTHER				TOTAL	BRANDS	LICENCES	LICENCES	TOTAL	ASSETS
COST
January 1, 2019										9,525	2,014	704	500	12,743					2,409	3,587	2,111		8,107	20,850
Additions										389	–	1,004	4				1,397	–	–	–	–	1,397
Acquired through
business combinations											–	6					–	–						6	–	–	–	–		6
Transfers										660	–					–	–						660	–	–	–	–		660
Retirements and disposals										(52)	(3)					–	(14)						(69)	–	–	–	–		(69)
Impairment losses
recognized in earnings									7		–	–					–	(1)						(1)	–	(1)	(85)	(86)		(87)
Amortization included in
operating costs											–	–	(992)	–				(992)	–	–	–	–		(992)
December 31, 2019										10,522	2,017	716	489	13,744					2,409	3,586	2,026		8,021	21,765
ACCUMULATED AMORTIZATION
January 1, 2019										6,720	727			–	198				7,645	–	–	–	–	7,645
Amortization										745	112			–	45				902	–	–	–	–		902
Retirements and disposals										(51)	–					–	(14)						(65)	–	–	–	–		(65)
Other										(69)	–					–	–						(69)	–	–	–	–		(69)


December 31, 2019										7,345	839			–	229				8,413	–	–	–	–	8,413
NET CARRYING AMOUNT
January 1, 2019										2,805	1,287	704	302				5,098	2,409	3,587	2,111		8,107	13,205
December 31, 2019										3,177	1,178	716	260				5,331	2,409	3,586	2,026		8,021	13,352
Notes to consolidatedfinancial statements
BCE Inc. 2019 Annual Report	136

		FINITE-LIFE	INDEFINITE-LIFE
							CUSTOMER	PROGRAM	SPECTRUM						TOTAL
				FOR THE YEAR			RELATION-	AND FEATURE	AND OTHER					BROADCAST	INTANGIBLE
				ENDED DECEMBER 31, 2018	SOFTWARE	SHIPS	FILM RIGHTS			OTHER	TOTAL	BRANDS	LICENCES								LICENCES	TOTAL								ASSETS
				COST
				January 1, 2018		8,689	1,950	741			393	11,773	2,443	3,534								2,251	8,228								20,001
				Additions		362	967			106	1,448	–	56										–	56								1,504
				Acquired through
				business combinations			9	51									–	1	61	1	–							5	6							67
				Transfers		506	–									–	4	510	(4)	–							–	(4)							506
				Retirements and disposals		(41)	–									–	(4)	(45)	–	(1)							–	(1)							(46)
				Impairment losses
				recognized in earnings	7		–	–	(14)			–	(14)	(31)	(2)								(145)	(178)								(192)
				Amortization included in
				operating costs			–	(990)			–	(990)	–	–										–	–								(990)
				December 31, 2018		9,525	2,014	704			500	12,743	2,409	3,587								2,111	8,107								20,850
				ACCUMULATED AMORTIZATION
				January 1, 2018		5,976	612				–	155	6,743	–	–										–	–								6,743
				Amortization		707	115				–	47	869	–	–										–	–								869
				Retirements and disposals		(39)	–									–	(4)	(43)	–	–							–	–							(43)
				Other		76	–									–	–	76	–	–							–	–							76
				December 31, 2018		6,720	727				–	198	7,645	–	–										–	–								7,645
				NET CARRYING AMOUNT
				January 1, 2018		2,713	1,338	741			238	5,030	2,443	3,534								2,251	8,228								13,258
				December 31, 2018		2,805	1,287	704			302	5,098	2,409	3,587								2,111	8,107								13,205
				Note 17 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 32, Related party transactions.
				STATEMENTS OF FINANCIAL POSITION
				FOR THE YEAR ENDED DECEMBER 31						2019	2018
				Assets						4,045	3,819
				Liabilities						(2,689)	(2,253)
				Total net assets						1,356	1,566
				BCE’s share of net assets						698	798

				INCOME STATEMENTS
				FOR THE YEAR ENDED DECEMBER 31	NOTE							2019	2018
				Revenues						2,398	2,128	Notes to consolidated	financial statements
				Expenses						(2,545)	(2,191)
				Total net losses						(147)	(63)
				BCE’s share of net losses	7							(72)	(35)
BCE Inc. 2019 Annual Report	137

Note 18 Other non-current assets
FOR THE YEAR ENDED DECEMBER 31		2019	2018
Net assets of post-employment benefit plans		558	331
Long-term notes and other receivables			142	89
Derivative assets		200	68
Publicly-traded and privately-held investments		129	110
Investments (1)			128	114
Other			117	135
Total other non-current assets			1,274	847
(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.
Note 19 GoodwillThe following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2018.
BCE’s groups of CGUs correspond to our reporting segments.
					BELL	BELL
					WIRELESS	MEDIA	BCE
Balance at January 1, 2018					3,032	2,899	10,428
Acquisitions and other					16	32	230
Balance at December 31, 2018					3,048	2,931	10,658
Acquisitions and other					–	15	9
Balance at December 31, 2019					3,048	2,946	10,667
IMPAIRMENT TESTINGAs described in Note 2, Significant accounting policies, goodwill is tested
						The following table shows the key assumptions used to estimate the
annually for impairment by comparing the carrying value of a CGU or group of CGUs to the recoverable amount, where the recoverable amount is the higher of fair value less costs of disposal or value in use.						recoverable amounts of the groups of CGUs.
			ASSUMPTIONS USED
			PERPETUITY	DISCOUNT
						GROWTH RATE	RATE
VALUE IN USE
						0.8%	9.1%
The value in use for a CGU or group of CGUs is determined by discounting						1.0%	6.0%
five-year cash flow projections derived from business plans reviewed by senior management. The projections reflect management’s expectations of revenue, segment profit, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance.						1.0%	8.0%
						The recoverable amounts determined in a prior year for the Bell Wireless
						and Bell Wireline groups of CGUs exceed their corresponding current carrying values by a substantial margin and have been carried forward and used in the impairment test for the current year. We believe that any reasonable possible change in the key assumptions on which the estimate of recoverable amounts of the Bell Wireless or Bell Wireline groups of CGUs is based would not cause their carrying amounts to exceed their recoverable amounts.

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.
Notes to consolidated	financial statements
derived from the weighted average cost of capital for each CGU or group of CGUs.						For the Bell Media group of CGUs, a decrease of (1.1%) in the perpetuity growth rate or an increase of 0.8% in the discount rate would have resulted in its recoverable amount being equal to its carrying value.
BCE Inc. 2019 Annual Report	138

		Note 20 Trade payables and other liabilities
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Trade payables and accruals		2,604	2,535
		Compensation payable		589	589
		Maple Leaf Sports and Entertainment Ltd. (MLSE) financial liability (1)	135	135
		Taxes payable		101	129
		Derivative liabilities	49	27
		Severance and other costs payable		35	63
		Provisions	33	66
		CRTC tangible benefits obligation	28	38
		CRTC deferral account obligation	13	16
		Other current liabilities		367	343
		Total trade payables and other liabilities		3,954	3,941
		(1) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust
		Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements.
		Note 21 Debt due within one year
			WEIGHTED
			AVERAGE
							INTEREST RATE AT
		FOR THE YEAR ENDED DECEMBER 31				NOTE	2019	2018
		Notes payable (1)				26	1,994	3,201
		Loans secured by trade receivables				26	1,050	919
		Long-term debt due within one year (2)				22	837	525
		Total debt due within one year		3,881	4,645
		(1) Includes commercial paper of $1,502 million in U.S. dollars ($1,951 million in Canadian dollars) and $2,314 million in U.S. dollars ($3,156 million in Canadian dollars) as at December 31, 2019
		and December 31, 2018, respectively, which were issued under our U.S. commercial paper program and have been hedged for foreign currency fluctuations through forward currency
		contracts. See Note 26, Financial and capital management, for additional details.
		(2) Included in long-term debt due within one year is the current portion of lease liabilities of $775 million as at December 31, 2019 and the current portion of finance leases of $466 million
		as at December 31, 2018.
		SECURITIZED TRADE RECEIVABLESOur securitized trade receivables programs are recorded as floating
										We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.
		rate revolving loans secured by certain trade receivables and expire on December 31, 2020 and December 1, 2022.
		The following table provides further details on our securitized trade
		receivables programs.								We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

		FOR THE YEAR ENDED DECEMBER 31						2019	2018
		Average interest rate								The buyers will reinvest the amounts collected by buying additional
		throughout the year						2.41%	interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed.
		Securitized trade receivables						2,185	1,998
	Notes to consolidated	financial statements
BCE Inc. 2019 Annual Report	139

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 $4 billion in Canadian
		currency which equals the aggregate amount available under Bell Canada’s committed supporting revolving and expansion credit facilities as at December 31, 2019. 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, 2019.
						COMMERCIAL
			TOTAL		LETTERS OF	PAPER	NET
			AVAILABLE	DRAWN	CREDIT	OUTSTANDING	AVAILABLE
Committed credit facilities
Unsecured revolving and expansion credit facilities (1) (2)			4,000	–				–	1,951	2,049
Other			106	–	106				–	–
Total committed credit facilities			4,106	–	106	1,951	2,049
Total non-committed credit facilities			1,939	–	1,059				–	880
Total committed and non-committed credit facilities			6,045	–	1,165	1,951	2,929
(1) Bell Canada’s $2.5 billion and additional $500 million committed revolving credit facilities expire in November 2024 and November 2020, respectively, and its $1 billion committed expansion
credit facility expires in November 2022. Bell Canada has the option, subject to certain conditions, to convert advances outstanding under the additional $500 million revolving credit
facility into a term loan with a maximum one-year term.
(2) As of December 31, 2019, Bell Canada’s outstanding commercial paper included $1,502 million in U.S. dollars ($1,951 million in Canadian dollars). All of Bell Canada’s commercial paper
outstanding is included in debt due within one year.
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.
Note 22 Long-term debt
				WEIGHTED
				AVERAGE
		INTEREST RATE AT
FOR THE YEAR ENDED DECEMBER 31			NOTE	DECEMBER 31, 2019			MATURITY				2019	2018
Debt securities
1997 trust indenture				3.82%	2021–2047	14,500	14,750
1976 trust indenture				9.54%	2021–2054	1,100	1,100
2011 trust indenture				4.00%	2024				225	225
2016 U.S. trust indenture (1)				4.41%	2048–2049	2,273	1,569

1996 trust indenture (subordinated)				8.21%	2026–2031				275	275
Lease liabilities				5.11%	2020–2065	4,599	–
Finance leases					2019–2047				–	2,097
Other									328	308
Total debt						23,300	20,324
Notes to consolidatedfinancial statements
Net unamortized premium									15	21
Unamortized debt issuance costs									(63)	(60)
Less:
Amount due within one year		21				(837)	(525)
Total long-term debt						22,415	19,760
(1) At December 31, 2019 and 2018, notes issued under the 2016 U.S. trust indenture totaled $1,750 million and $1,150 million in U.S. dollars, respectively, and have been hedged for foreign
currency fluctuations through cross currency interest rate swaps. See Note 26, Financial and capital management, for additional details.
Bell Canada’s debt securities have been issued in Canadian dollars with the exception of debt securities issued under the 2016 U.S. trust indenture, which have been issued in U.S. dollars. All debt securities bear a fixed interest rate.
BCE Inc. 2019 Annual Report	140

		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.
		All outstanding debt securities have been issued under trust indentures and are unsecured. All debt securities have been issued in series and
		certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified for each series.
		2019On September 10, 2019, Bell Canada issued 2.90% Series M-50 medium
			with a principal amount of $600 million in U.S. dollars ($808 million in Canadian dollars), which mature on July 29, 2049.
		term note (MTN) debentures under its 1997 trust indenture, with a principal amount of $550 mil ion, which mature on September 10, 2029.
			For the year ended December 31, 2019, we incurred early debt redemption charges of $18 million which were recorded in Other expense in the income statement.
		On June 13, 2019, Bell Canada redeemed, prior to maturity, its 3.25% Series M-27 MTN debentures, having an outstanding principal amount of $1 billion, which were due June 17, 2020.
			Subsequent to year end, on February 13, 2020, Bell Canada issued 3.50% Series M-51 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on September 30, 2050.
		On May 24, 2019, Bell Canada redeemed, prior to maturity, its 3.54% Series M-37 debentures, having an outstanding principal amount of $400 million, which were due on June 12, 2020.
			The net proceeds of the offering are intended to be used to fund, on
			March 16, 2020, the redemption, prior to maturity, of Bell Canada’s
		On May 13, 2019, Bell Canada issued 2.75% Series M-49 MTN debentures under its 1997 trust indenture, with a principal amount of $600 million, which mature on January 29, 2025. In addition, on the same date, Bell Canada issued 4.30% Series US-2 Notes under its 2016 trust indenture,
			4.95% Series M-24 MTN debentures, with early debt redemption charges
			of $17 million. The M-24 MTN debentures have an outstanding principal amount of $500 million and were due on May 19, 2021. The net proceeds are further intended to be used for the repayment of short-term debt.
		2018On October 15, 2018, Bell Canada redeemed, prior to maturity, its 5.625% Series 8 notes, having an outstanding principal amount of $200 million, which were due on December 16, 2019.
			On May 4, 2018, Bell Canada redeemed, prior to maturity, its 3.50% Series M-28 MTN debentures, having an outstanding principal amount of $400 million, which were due on September 10, 2018.
		On September 21, 2018, Bell Canada redeemed, prior to maturity, its	On April 16, 2018, Bell Canada redeemed, prior to maturity, its 4.59% Series 9 notes, having an outstanding principal amount of $200 million, which were due on October 1, 2018. In addition, on the same date, Bell Canada redeemed, prior to maturity, its 5.52% Series M-33 debentures, having an outstanding principal amount of $300 million, which were due on February 26, 2019.
		3.35% Series M-25 MTN debentures, having an outstanding principal
		amount of $1 billion, which were due on June 18, 2019.
		On September 14, 2018, and March 29, 2018, Bell Canada issued 4.464% Series US-1 Notes under its 2016 U.S. trust indenture, with a principal amount of $400 million in U.S. dollars ($526 million in Canadian dollars) and $750 million in U.S. dollars ($967 million in Canadian dollars), respectively, which mature on April 1, 2048.
			On March 12, 2018, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on March 12, 2025.

		On August 21, 2018, Bell Canada issued 3.80% Series M-48 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on August 21, 2028.
			For the year ended December 31, 2018, we incurred early debt redemption charges of $20 mil ion, which were recorded in Other expense in the income statement.
	Notes to consolidated	financial statements
BCE Inc. 2019 Annual Report	141

Note 23 Provisions
FOR THE YEAR ENDED DECEMBER 31		AROs	OTHER (1)	TOTAL
January 1, 2019			199	172	371
Additions			21	24	45
Usage			(4)	(52)	(56)
Reversals			(17)	(1)	(18)
Adoption of IFRS 16			–	(11)	(11)
December 31, 2019			199	132	331
Current		16	17	33
Non-current		183	115	298
December 31, 2019			199	132	331
(1) Other includes environmental, vacant space and legal 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 24 Post-employment benefit plans
POST-EMPLOYMENT BENEFIT PLANS COSTWe provide pension and other benefits for most of our employees.
						options offered to plan participants, lies with the Pension Fund Committee, a committee of our board of directors.
These include DB pension plans, DC pension plans and OPEBs.
We operate our DB and DC pension plans under applicable Canadian and provincial pension legislation, which prescribes minimum and maximum DB funding requirements. Plan assets are held in trust, and the oversight of governance of the plans, including investment decisions, contributions to DB plans and the selection of the DC plans investment						The interest rate risk is managed using a liability matching approach,
						which reduces the exposure of the DB plans to a mismatch between investment growth and obligation growth.
						The longevity risk is managed using a longevity swap, which reduces
						the exposure of the DB plans to an increase in life expectancy.
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST
FOR THE YEAR ENDED DECEMBER 31				2019	2018
DB pension				(193)	(213)
DC pension				(110)	(106)
OPEBs				(3)	(3)
Less:
Capitalized benefit plans cost				59	56

Total post-employment benefit plans service cost included in operating costs				(247)	(266)
Other costs recognized in severance, acquisition and other costs				–	(4)
Total post-employment benefit plans service cost				(247)	(270)
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COSTNotes to consolidatedfinancial statements
FOR THE YEAR ENDED DECEMBER 31				2019	2018
DB pension				(19)	(23)
OPEBs				(44)	(46)
Total interest on post-employment benefit obligations				(63)	(69)
BCE Inc. 2019 Annual Report	142

		The statements of comprehensive income include the following amounts before income taxes.
			2019	2018
		Cumulative losses recognized directly in equity, January 1	(2,892)	(2,984)
		Actuarial gains in other comprehensive income (1)	191	79
		Decrease in the effect of the asset limit (2)	–				13
		Cumulative losses recognized directly in equity, December 31	(2,701)	(2,892)
		(1) The cumulative actuarial losses recognized in the statements of comprehensive income are $2,947 million in 2019.(2) The cumulative decrease in the effect of the asset limit recognized in the statements of comprehensive income is $246 million in 2019.
		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
					2019		2018	2019		2018	2019				2018
		Post-employment benefit obligations, January 1			(23,404)		(24,404)	(1,469)		(1,653)	(24,873)				(26,057)
		Current service cost			(193)		(213)	(3)	(3)	(196)				(216)
		Interest on obligations			(872)		(864)	(55)		(56)	(927)				(920)
		Actuarial (losses) gains (1)			(2,498)		750	(80)		163	(2,578)				913
		Net curtailment losses			–		(4)	–	–	–				(4)
		Benefit payments			1,326		1,342	77		80	1,403				1,422
		Employee contributions			(10)		(11)	–	–	(10)				(11)
		Other			1		–	1	–	2				–
		Post-employment benefit obligations, December 31			(25,650)		(23,404)	(1,529)		(1,469)	(27,179)				(24,873)
		Fair value of plan assets, January 1			23,071		23,945	287		299	23,358				24,244
		Expected return on plan assets (2)			853		841	11		10	864				851
		Actuarial gains (losses) (1)			2,742		(817)	27		(17)	2,769				(834)
		Benefit payments			(1,326)		(1,342)	(77)		(80)	(1,403)				(1,422)
		Employer contributions			180		433	72		75	252				508
		Employee contributions			10		11	–	–	10				11
		Fair value of plan assets, December 31			25,530		23,071	320		287	25,850				23,358
		Plan deficit			(120)		(333)	(1,209)		(1,182)	(1,329)				(1,515)
		Effect of asset limit			(20)		(20)	–	–	(20)				(20)
		Post-employment benefit liability, December 31			(140)		(353)	(1,209)		(1,182)	(1,349)				(1,535)
		Post-employment benefit assets included in other non-current assets			558		331	–	–	558				331
		Post-employment benefit obligations			(698)		(684)	(1,209)		(1,182)	(1,907)				(1,866)
		(1) Actuarial gains (losses) include experience gains (losses) of $2,525 million in 2019 and ($693 million) in 2018.(2) The actual return on plan assets was $3,633 million or 16.0% in 2019 and $17 million or 0.2% in 2018.

		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							2019	2018	2019		2018	2019		2018	2019			2018
		Present value of post-employment
		benefit obligations									(24,961)	(22,765)	(1,918)		(1,816)	(300)		(292)	(27,179)			(24,873)	Notes to consolidated	financial statements
		Fair value of plan assets									25,474	23,018	376		340	–	–	25,850			23,358
		Plan surplus (deficit)							513	253	(1,542)		(1,476)	(300)		(292)	(1,329)			(1,515)
		(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.
BCE Inc. 2019 Annual Report	143

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

2019

2018

Post-employment benefit obligations

Discount rate

3.1%

3.8%

Rate of compensation increase

2.25%

Cost of living indexation rate (1)

1.6%

Life expectancy at age 65 (years)

23.2

23.1

(1) Cost of living indexation rate is only applicable to DB pension plans.

DB PENSION PLANS AND OPEB PLANS

FOR THE YEAR ENDED DECEMBER 31

2019

2018

Net post-employment benefit plans cost

Discount rate

4.0%

3.7%

Rate of compensation increase

2.25%

Cost of living indexation rate (1)

1.6%

Life expectancy at age 65 (years)

23.1

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:• an annual increase in the cost of medication of 6.5% for 2019 decreasing

The following table shows the effect of a 1% change in the assumed

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 – INCREASE/(DECREASE)

1% INCREASE

1% DECREASE

Total service and interest cost

(3)

Post-employment benefit obligations

110

(95)

benefits 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 2019 –

OBLIGATIONS AT DECEMBER 31, 2019 –

INCREASE/(DECREASE)

CHANGE IN

INCREASE IN

DECREASE IN

INCREASE IN

DECREASE IN

ASSUMPTION

Discount rate

0.5%

(75)

(1,728)

1,944

Life expectancy at age 65

1 year

(39)

945

(972)

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 2019 and the allocation of our post-employment benefit plan assets at December 31, 2019

Notes to consolidated

financial statements

and 2018.

WEIGHTED AVERAGE

TARGET ALLOCATION

TOTAL PLAN ASSETS FAIR VALUE

ASSET CATEGORY

2019

DECEMBER 31, 2019

DECEMBER 31, 2018

Equity securities

0%–40%

22%

20%

Debt securities

60%–100%

62%

64%

Alternative investments

0%–50%

16%

Total

100%

BCE Inc. 2019 Annual Report

144

		The following table shows the fair value of the DB pension plan assets for each category.
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Observable markets data
		Equity securities
					Canadian	1,017	844
					Foreign	4,534	3,770
		Debt securities
					Canadian	13,216	12,457
					Foreign	2,385	2,004
					Money market	219	327
		Non-observable markets inputs
		Alternative investments
					Private equities	2,119	1,804
					Hedge funds	1,001	1,014
					Real estate	948	758
					Other	91	93
		Total	25,530	23,071
		Equity securities included approximately $15 million of BCE common shares, or 0.06% of total plan assets, at December 31, 2019 and approximately $8 mil ion of BCE common shares, or 0.03% of total plan assets, at December 31, 2018.				The fair value of the arrangement is included within other alternative
						investments. As a hedging arrangement of the pension plan, the transaction requires no cash contributions from BCE.
						CASH FLOWSWe are responsible for adequately funding our DB pension plans. We make contributions to them based on various actuarial cost methods
		Debt securities included approximately $53 million of Bell Canada debentures, or 0.21% of total plan assets, at December 31, 2019 and approximately $68 million of Bell Canada debentures, or 0.30% of total plan assets, at December 31, 2018.
						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.
		Alternative investments included an investment in MLSE of $135 million,
		or 0.53% of total plan assets, at December 31, 2019 and $135 million, or
		0.59% of total plan assets, at December 31, 2018.
		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 (1)	DC PLANS	OPEB PLANS
		FOR THE YEAR ENDED DECEMBER 31					2019	2018		2019	2018	2019	2018
		Contributions/payments					(180)			(433)	(110)	(106)	(72)	(75)
		(1) Includes voluntary contributions of nil in 2019 and $240 million in 2018.

		We expect to contribute approximately $170 million to our DB pension plans in 2020, subject to actuarial valuations being completed. We expect to contribute approximately $120 million to the DC pension plans and to pay approximately $75 million to beneficiaries under OPEB plans in 2020.
		Note 25 Other non-current liabilities
	Notes to consolidated	financial statements
		FOR THE YEAR ENDED DECEMBER 31							NOTE	2019	2018
		Long-term disability benefits obligation	305	288
		Provisions							23	298	305
		CRTC deferral account obligation							26	69	92
		CRTC tangible benefits obligation							26	1				23
		Other	198	289
		Total other non-current liabilities	871	997
BCE Inc. 2019 Annual Report	145

Note 26 Financial and capital management

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

FAIR VALUEFair value is the price that would be received to sell an asset or paid to

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

transfer a liability in an orderly transaction between market participants at the measurement date.

DERIVATIVESWe use derivative instruments to manage our exposure to foreign currency risk, interest rate risk and changes in the price of BCE common shares under our share-based payment plans.

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

The following derivative instruments were outstanding during 2019 and/

or 2018:• foreign currency forward contracts and options that manage the

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.

foreign currency risk of certain anticipated purchases and sales and U.S. commercial paper

• cross currency interest rate swaps that hedge foreign currency risk

on a portion of our debt due within one year and long-term debt

• forward contracts on BCE common shares that mitigate the cash flow

exposure and equity price risk related to share-based payment plans

• interest rate swaps that hedge future dividend rate resets on preferred

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

DECEMBER 31, 2019

DECEMBER 31, 2018

CARRYING

FAIR

CARRYING

FAIR

CLASSIFICATION

FAIR VALUE METHODOLOGY

NOTE

VALUE

CRTC tangible benefits obligation

Trade payables and

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

20, 25

other liabilities and other non-current liabilities

CRTC deferral account obligation

Trade payables and

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

20, 25

108

112

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

21, 22

18,653

20,905

18,188

19,178

Finance leases (1)

Debt due within one year and long-term debt

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

–

2,097

2,304

(1) Upon adoption of IFRS 16 on January 1, 2019, fair value disclosures are no longer required for leases.

Notes to consolidatedfinancial statements

BCE Inc. 2019 Annual Report

146

		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 VALUE OF	IDENTICAL ASSETS	MARKET DATA	MARKET INPUTS
				CLASSIFICATION	ASSET (LIABILITY)		(LEVEL 1)	(LEVEL 2) (1)						(LEVEL 3) (2)
		December 31, 2019
		Publicly-traded and privately-held investments		Other non-current assets	18					129	–					127
		Derivative financial instruments		Other current assets, trade payables and other liabilities, other non-current assets and liabilities						165	–			165	–
		MLSE financial liability (3)		Trade payables and other liabilities	20					(135)	–					(135)
		Other		Other non-current assets and liabilities						71	1			128	(58)
		December 31, 2018
		Publicly-traded and privately-held investments		Other non-current assets	18					110	–					109
		Derivative financial instruments		Other current assets, trade payables and other liabilities, other non-current assets and liabilities						181	–			181	–
		MLSE financial liability (3)		Trade payables and other liabilities	20					(135)	–					(135)
		Other		Other non-current assets and liabilities						43	–			114	(71)
		(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our
		level 3 financial instruments.
		(3) Represents BCE’s obligation to repurchase the Master Trust Fund’s 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put
		option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other expense in the income statements. The option has been
		exercisable since 2017.
		CREDIT RISKWe are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by
						The following table provides the change in allowance for doubtful
						accounts for trade receivables.
		the carrying amounts reported in the statements of financial position.
								NOTE			2019	2018
					Balance, January 1					(51)	(54)
						–									(4)
						Additions	(114)						(84)
						Usage					103	91
						Balance, December 31		10			(62)	(51)
						In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time.

		The following table provides further details on trade receivables, net of allowance for doubtful accounts.
										2019	2018
		Trade receivables not past due	2,082						2,091
		Trade receivables past due, net of allowance for doubtful accounts	Notes to consolidated	financial statements
										541	508
										232	304
										64	72
		Trade receivables, net of allowance for doubtful accounts	2,919						2,975
BCE Inc. 2019 Annual Report	147

The following table provides the change in allowance for doubtful accounts for contract assets.
		2019	2018 (1)
Balance, January 1			(73)	(90)
Additions			(28)	(19)
Usage and reversals			33	36
Balance, December 31			(68)	(73)
Current			(32)	(35)
Non-current			(36)	(38)
Balance, December 31		(68)	(73)
(1) We have updated amounts for the prior year to make them consistent with the presentation for the current year.
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, 2019 for each of the next five years and thereafter.
			THERE-
AT DECEMBER 31, 2019					NOTE	2020	2021	2022	2023			AFTER	TOTAL
Long-term debt					22	62	2,302	1,762	1,637			11,688	18,701
Notes payable					21	1,994	–	–	–	–			–	1,994
Lease liabilities						960	858	629	530			2,338	5,733
Loan secured by trade receivables					21	1,050	–	–	–	–			–	1,050
Interest payable on long-term debt, notes payable
and loan secured by trade receivables						862	772	711	643			6,869	10,437
Net interest receipts on cross currency
basis swaps						(3)	(2)	(2)	(2)	(57)	(68)
MLSE financial liability					20	(135)	–	–	–	–			–	(135)
Total						4,790	3,930	3,100	2,808			20,838	37,712
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 sales and certain foreign currency debt.
							A 10% depreciation (appreciation) in the value of the Canadian dollar
							relative to the U.S. dollar would result in a gain (loss) of $13 million ($27 million) recognized in net earnings at December 31, 2019 and a gain (loss) of $189 million ($178 million) recognized in Other comprehensive income at December 31, 2019, with all other variables held constant.
In 2019, we entered into a cross currency interest rate swap with a notional amount of $600 million in U.S. dollars ($808 million in Canadian dollars), to hedge the U.S. currency exposure of our Series US-2 Notes maturing in 2049. See Note 22, Long-term debt, for additional details.
							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 at December 31, 2019, with all other variables held constant.
In 2018, we entered into cross currency interest rate swaps with a notional amount of $1,150 million in U.S. dollars ($1,493 million in Canadian dollars), to hedge the U.S. currency exposure of our Series US-1 Notes maturing in 2048. See Note 22, Long-term debt, for additional details.
Notes to consolidatedfinancial statements
BCE Inc. 2019 Annual Report	148

		The following table provides further details on our outstanding foreign currency forward contracts and options as at December 31, 2019.
			BUY	AMOUNT	SELL	AMOUNT
		TYPE OF HEDGE	CURRENCY	TO RECEIVE	CURRENCY	TO PAY	MATURITY	HEDGED ITEM
		Cash flow	USD	1,512	CAD	1,999	2020	Commercial paper
		Cash flow	USD	704	CAD	915	2020	Anticipated transactions
		Cash flow	PHP	1,944	CAD	49	2020	Anticipated transactions
		Cash flow	USD	491	CAD	637	2021	Anticipated transactions
		Economic – put options	USD	261	CAD	340	2020	Anticipated transactions
		Economic – call options	USD	228	CAD	299	2020	Anticipated transactions
		Economic – options (1)	USD	120	CAD	154	2021	Anticipated transactions
		(1) In 2019, we entered into a series of foreign currency options having a leverage provision and a profit cap limitation.
		INTEREST RATE EXPOSURESA 1% increase (decrease) in interest rates would result in a decrease (increase) of $29 million in net earnings at December 31, 2019.			of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. See Note 28,
					Share-based payments, for details on our share-based payment
					arrangements. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million (December 31, 2018 – a liability of $73 million).
		In 2019, we entered into interest rate swaps with a notional amount of
		$275 million to hedge the dividend rate reset on BCE preferred shares
		in 2020.
					A 5% increase (decrease) in the market price of BCE’s common shares
		EQUITY PRICE EXPOSURESWe use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement
					at December 31, 2019 would result in a gain (loss) of $38 million recognized in net earnings for 2019, with al other variables held constant.
		CAPITAL MANAGEMENTWe have various capital policies, procedures and processes which are
					These ratios do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures
		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.
					presented by other issuers. We use, and believe that certain investors and analysts use, our net debt leverage ratio and adjusted EBITDA to net interest expense ratio as measures of financial leverage and health of the company.
		Our definition of capital includes equity attributable to BCE shareholders, debt, and cash and cash equivalents.
					The following table provides a summary of our key ratios.
		The key ratios that we use to monitor and manage our capital structure
		are a net debt leverage ratio (1) and an adjusted EBITDA to net interest expense ratio (2). In 2019, we increased our net debt leverage ratio target range to 2.00 to 2.50 times adjusted EBITDA from 1.75 to 2.25 times adjusted EBITDA in 2018. This increase reflects the one-time impact from the adoption of IFRS 16 which increased net debt by $2,304 million on January 1, 2019. See Note 35, Adoption of IFRS 16, for further details on the impacts of adopting IFRS 16 on our January 1, 2019 consolidated statement of financial position. At December 31, 2019, we had exceeded the limit of our internal net debt leverage ratio target range by 0.29. In 2019 and 2018, our adjusted EBITDA to net interest expense ratio target was greater than 7.5 times. The adoption of IFRS 16 did not have an impact on our adjusted EBITDA to net interest expense ratio target.			AT DECEMBER 31			2019	2018
					Net debt leverage ratio			2.79	2.72
					Adjusted EBITDA to net interest
					expense ratio			8.54	9.00
					On February 5, 2020 the board of directors of BCE approved an increase of 5.0% in the annual dividend on BCE’s common shares, from $3.17 to $3.33 per common share. In addition, the board of directors of BCE declared a quarterly dividend of $0.8325 per common share payable on April 15, 2020 to the shareholders of record at March 16, 2020.

					On February 6, 2019, the board of directors of BCE approved an increase of 5.0% in the annual dividend on BCE’s common shares, from $3.02 to $3.17 per common share.
					In Q1 2018, BCE completed a normal course issuer bid program (NCIB).	Notes to consolidated	financial statements
					See Note 27, Share capital, for additional details.
		(1) Our net debt leverage ratio represents net debt divided by adjusted EBITDA. We define net debt as debt due within one year plus long-term debt and 50% of preferred shares less cash
		and cash equivalents as shown in our statements of financial position. Adjusted EBITDA is defined as operating revenues less operating costs as shown in our income statements.
		(2) Our adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. Adjusted EBITDA is defined as operating revenues less operating costs as
		shown in our income statements. Net interest expense is net interest expense as shown in our statements of cash flows plus 50% of declared preferred share dividends as shown in our
		income statements.
BCE Inc. 2019 Annual Report	149

Note 27 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, 2019. There were no Second
Preferred Shares issued and outstanding at December 31, 2019. 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,
SERIESRATEINTOCONVERSION DATEREDEMPTION DATEPRICEAUTHORIZEDOUTSTANDING	2019				2018
QfloatingSeries R		December 1, 2025		$25.50	8,000,000			–	–				–
R (1)		4.13%	Series Q		December 1, 2020	December 1, 2020	$25.00	8,000,000		8,000,000	200			200
SfloatingSeries T		November 1, 2021	At any time	$25.50	8,000,000		3,513,448	88				88
T (1)		3.019%	Series S		November 1, 2021	November 1, 2021	$25.00	8,000,000		4,486,552	112			112
YfloatingSeries Z		December 1, 2022	At any time	$25.50	10,000,000		8,081,491	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		11,398,396	291			291
ABfloatingSeries AA		September 1, 2022	At any time	$25.50	20,000,000		8,601,604	219				219
AC (1)		4.38%	Series AD		March 1, 2023	March 1, 2023	$25.00	20,000,000		10,029,691	256			256
ADfloatingSeries AC		March 1, 2023	At any time	$25.50	20,000,000		9,970,309	254				254
AEfloatingSeries AF		February 1, 2020	At any time	$25.50	24,000,000		9,292,133	232				232
AF (1)		3.11%	Series AE		February 1, 2020	February 1, 2020	$25.00	24,000,000		6,707,867	168			168
AG (1)		2.80%	Series AH		May 1, 2021	May 1, 2021	$25.00	22,000,000		4,985,351	125			125
AHfloatingSeries AG		May 1, 2021	At any time	$25.50	22,000,000		9,014,649	225				225
AI (1)		2.75%	Series AJ		August 1, 2021	August 1, 2021	$25.00	22,000,000		5,949,884	149			149
AJfloatingSeries AI		August 1, 2021	At any time	$25.50	22,000,000		8,050,116	201				201
AK (1)		2.954%	Series AL		December 31, 2021	December 31, 2021	$25.00	25,000,000		22,745,921	569			569
AL (2)		floating	Series AK		December 31, 2021	At any time		25,000,000		2,254,079	56			56
AM (1)		2.764%	Series AN		March 31, 2021	March 31, 2021	$25.00	30,000,000		9,546,615	218			218
AN (2)		floating	Series AM		March 31, 2021	At any time		30,000,000		1,953,385	45			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			–	–			–
									4,004			4,004
(1) BCE may redeem each of these series of First Preferred Shares on the applicable redemption date and every five years after that date.(2) BCE may redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series

conversion date). Alternatively, BCE may redeem Series AL or AN First Preferred Shares at $25.50 per share on any date which is not a Series conversion date for the applicable series of
First Preferred Shares.
(3) If Series AP or AR First Preferred Shares are issued on March 31, 2022 and September 30, 2023, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and
September 30, 2028, respectively, and every five years thereafter (each, a Series conversion date). Alternatively, BCE may redeem Series AP or AR First Preferred Shares at $25.50 per
share on any date which is not a Series conversion date for the applicable series of First Preferred Shares.
VOTING RIGHTSAll of the issued and outstanding First Preferred Shares at December 31, 2019 are non-voting, except under special circumstances when the holders are entitled to one vote per share.							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.
Notes to consolidatedfinancial statements
							The dividend rate on these shares is reset every five years, as set out
							in BCE’s articles of amalgamation, as amended.
							Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares are entitled to floating adjustable cumulative monthly dividends. The floating dividend rate on these shares is calculated every month, as set out in BCE’s articles of amalgamation, as amended.
PRIORITY AND ENTITLEMENT TO DIVIDENDS
The First Preferred Shares of all series rank at parity with each other
and in priority to all other shares of BCE with respect to payment of dividends and with respect to distribution of assets in the event of liquidation, dissolution or winding up of BCE.
BCE Inc. 2019 Annual Report	150

		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.	CONVERSION AND DIVIDEND RATE RESET OF FIRST
			PREFERRED SHARESSubsequent to year end, on February 1, 2020 3,283,795 of BCE’s 9,292,133 floating rate Cumulative Redeemable First Preferred Shares, Series AE (Series AE Preferred Shares) were converted, on a one-for-one basis, into fixed-rate Cumulative Redeemable First Preferred Shares, Series AF (Series AF Preferred Shares). In addition, on February 1, 2020, 506,975 of BCE’s 6,707,867 Series AF Preferred Shares were converted, on a one-for-one basis, into Series AE Preferred Shares.
		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, 2019 are convertible at the holder’s option into another associated series of First Preferred Shares on a one-for-one basis according to the terms set out in BCE’s articles of amalgamation, as amended.
			The annual fixed dividend rate on BCE’s Series AF Preferred Shares was
			reset for the next five years, effective February 1, 2020, at 3.865%. The
			Series AE Preferred Shares continue to pay a monthly cash dividend.
		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, 2019 and 2018.
		The following table provides details about the outstanding common shares of BCE.
				2019	2018
						NUMBER OF	STATED	NUMBER OF	STATED
					NOTE	SHARES	CAPITAL	SHARES	CAPITAL
		Outstanding, January 1	898,200,415				20,036	900,996,640	20,091
		Shares issued for the acquisition of AlarmForce	34	–			–	22,531	1
		Shares issued under employee stock option plan	28	4,459,559				251	266,941	13
		Repurchase of common shares		–			–	(3,085,697)	(69)
		Shares issued under ESP	1,231,479				75	–				–
		Shares issued under DSP				16,729	1	–				–
		Outstanding, December 31	903,908,182				20,363	898,200,415	20,036
		In Q1 2018, BCE repurchased and canceled 3,085,697 common shares for a total cost of $175 million through a NCIB. Of the total cost, $69 million represents stated capital and $3 million represents the reduction of the contributed surplus attributable to these common shares. The remaining $103 million was charged to the deficit.	CONTRIBUTED SURPLUSContributed surplus in 2019 and 2018 includes premiums in excess of par value upon the issuance of BCE common shares and share-based compensation expense net of settlements.
		Note 28 Share-based paymentsThe following share-based payment amounts are included in the income statements as operating costs.

		FOR THE YEAR ENDED DECEMBER 31						2019	2018
		ESP						(29)	(29)
		RSUs/PSUs						(54)	(50)
		Other (1)						(10)	(10)
		Total share-based payments						(93)	(89)	Notes to consolidated	financial statements
		(1) Includes DSP, DSUs and stock options.
BCE Inc. 2019 Annual Report	151

DESCRIPTION OF THE PLANSESP
The ESP is designed to encourage employees of BCE and its participating		The ESP allows employees to contribute up to 12% of their annual
subsidiaries to own shares of BCE. Each year, employees can choose		earnings with a maximum employer contribution of 2%.
to have a certain percentage of their eligible annual earnings withheld through regular payroll deductions for the purchase of BCE common
		Employer contributions to the ESP and related dividends are subject to employees holding their shares for a two-year vesting period.
shares. In some cases, the employer also will contribute a percentage of the employee’s eligible annual earnings to the plan, up to a specified maximum. Dividends are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares.
		The trustee of the ESP buys BCE common shares for the participants
		on the open market, by private purchase or from treasury. BCE determines the method the trustee uses to buy the shares.
		At December 31, 2019, 4,360,087 common shares were authorized for
		issuance from treasury under the ESP.
The following table summarizes the status of unvested employer contributions at December 31, 2019 and 2018.
NUMBER OF ESP SHARES			2019	2018
Unvested contributions, January 1					1,120,426	1,039,030
Contributions (1)			623,705	671,911
Dividends credited			57,083	56,926
Vested			(523,359)	(501,089)
Forfeited			(153,657)	(146,352)
Unvested contributions, December 31					1,124,198	1,120,426
(1) The weighted average fair value of the shares contributed was $60 in 2019 and $55 in 2018.
RSUs/PSUsRSUs/PSUs are granted to executives and other eligible employees.
		number of RSUs/PSUs for a given performance period based on their position and level of contribution. RSUs/PSUs vest fully after three years of continuous employment from the date of grant and, in certain cases, if performance objectives are met, as determined by the board of directors.
The value of an RSU/PSU at the grant date is equal to the value of one
BCE common share. Dividends in the form of additional RSUs/PSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. Executives and other eligible employees are granted a specific
The following table summarizes outstanding RSUs/PSUs at December 31, 2019 and 2018.
NUMBER OF RSUs/PSUs			2019	2018
Outstanding, January 1					2,812,697	2,740,392
Granted (1)			975,348			1,006,586
Dividends credited			149,648	149,258
Settled			(932,133)			(1,027,321)
Forfeited			(90,442)	(56,218)
Outstanding, December 31					2,915,118	2,812,697

Vested, December 31 (2)			904,266	880,903
(1) The weighted average fair value of the RSUs/PSUs granted was $58 in 2019 and $57 in 2018.(2) The RSUs/PSUs vested on December 31, 2019 were fully settled in February 2020 with BCE common shares and/or DSUs.
Notes to consolidatedfinancial statements
BCE Inc. 2019 Annual Report	152

		DSP	DSUsEligible bonuses and RSUs/PSUs may be paid in the form of DSUs when executives or other eligible employees elect to or are required to participate in the plan. The value of a DSU at the issuance date is equal
		The value of a deferred share is equal to the value of one BCE common
		share. Dividends in the form of additional deferred shares are credited
		to the participant’s account on each dividend payment date and are equivalent in value to the dividend paid on BCE common shares. The liability related to the DSP is recorded in Trade payables and other liabilities in the statements of financial position and was $22 million and $26 million at December 31, 2019 and 2018, respectively.
			to the value of one BCE common share. For non-management directors, compensation is paid in DSUs until the minimum share ownership requirement is met; thereafter, at least 50% of their compensation is paid in DSUs. There are no vesting requirements relating to DSUs. Dividends in the form of additional DSUs are credited to the participant’s account on each dividend payment date and are equivalent in value to the dividends paid on BCE common shares. DSUs are settled when the holder leaves the company.
		The following table summarizes the status of outstanding DSUs at December 31, 2019 and 2018.
		NUMBER OF DSUs		2019	2018
		Outstanding, January 1		4,391,997	4,309,528
		Issued (1)		84,588	94,580
		Settlement of RSUs/PSUs		146,960	112,675
		Dividends credited		236,079	240,879
		Settled		(236,525)	(365,665)
		Outstanding, December 31		4,623,099	4,391,997
		(1) The weighted average fair value of the DSUs issued was $59 in 2019 and $55 in 2018.
		STOCK OPTIONSUnder BCE’s long-term incentive plans, BCE may grant options to executives to buy BCE common shares. The subscription price of a grant is based on the higher of:• the volume-weighted average of the trading price on the trading day
			At December 31, 2019, 7,524,891 common shares were authorized for
			issuance under these plans. Options vest fully after three years of continuous employment from the date of grant. All options become exercisable when they vest and can be exercised for a period of seven years from the date of grant for options granted prior to 2019 and ten years from the date of grant for options granted in 2019.
		immediately prior to the effective date of the grant
		• the volume-weighted average of the trading price for the last five
		consecutive trading days ending on the trading day immediately prior to the effective date of the grant
		The following table summarizes BCE’s outstanding stock options at December 31, 2019 and 2018.
						2019	2018
								NUMBER OF	WEIGHTED AVERAGE	NUMBER OF	WEIGHTED AVERAGE
							NOTE	OPTIONS	EXERCISE PRICE ($)	OPTIONS	EXERCISE PRICE ($)
		Outstanding, January 1	14,072,332						56	10,490,249	55
		Granted	3,357,303						58	3,888,693	56
		Exercised (1)	27	(4,459,559)						54	(266,941)	42
		Forfeited						(144,535)	58	(39,669)	58
		Outstanding, December 31	12,825,541						57	14,072,332	56
		Exercisable, December 31	2,786,043						56	4,399,588	52
		(1) The weighted average market share price for options exercised was $62 in 2019 and $55 in 2018.
		The following table provides additional information about BCE’s stock option plans at December 31, 2019 and 2018.	Notes to consolidated	financial statements
								STOCK OPTIONS OUTSTANDING
							2019	2018
												WEIGHTED AVERAGE	WEIGHTED AVERAGE
												REMAINING LIFE	WEIGHTED AVERAGE						REMAINING LIFE	WEIGHTED AVERAGE
		RANGE OF EXERCISE PRICES									NUMBER	(YEARS)	EXERCISE PRICE ($)					NUMBER	(YEARS)	EXERCISE PRICE ($)
		$40–$49									449,216	1		47							1,747,042	2		46
		$50–$59									12,271,003	6		58	12,232,011	5					57
		$60 & above									105,322	4		61			93,279	5					61
											12,825,541	5		57	14,072,332	4					56
BCE Inc. 2019 Annual Report	153

ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL
The fair value of options granted was determined using a variation of a binomial option pricing model that takes into account factors specific
to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.
		2019	2018
Weighted average fair value per option granted		$2.34	$2.13
Weighted average share price		$58	$57
Weighted average exercise price		$58	$56
Expected dividend growth		5%	5%
Expected volatility		14%	12%
Risk-free interest rate		2%	2%
Expected life (years)		4	4
Expected dividend growth is commensurate with BCE’s dividend growth strategy. Expected volatility is based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options.
Note 29 Additional cash flow informationThe following table provides a reconciliation of changes in liabilities arising from financing activities.
						DERIVATIVE TO
					DEBT DUE WITHIN	HEDGE FOREIGN
					ONE YEAR AND	CURRENCY	DIVIDENDS	OTHER
				NOTE	LONG-TERM DEBT	ON DEBT (1)	PAYABLE	LIABILITIES	TOTAL
December 31, 2018					24,405			(169)	691	–	24,927
Adoption of IFRS 16									2,304	–		–	–	2,304
January 1, 2019					26,709			(169)	691	–	27,231
Cash flows from (used in) financing activities Decrease in notes payable									(1,045)	(28)		–	–	(1,073)
Issue of long-term debt									1,954	–		–	–	1,954
Repayment of long-term debt									(2,228)	–		–	–	(2,228)
Increase in securitized trade receivables									131	–		–	–	131
Cash dividends paid on common
											and preferred shares	–	–	(2,966)	–	(2,966)
Cash dividends paid by subsidiaries
											to non-controlling interests	33					–	–	(65)	–	(65)
Other financing activities									(33)	–		–	(20)	(53)
Total cash flows used in financing activities
excluding equity									(1,221)	(28)	(3,031)	(20)	(4,300)
Non-cash changes arising from
Increase in lease liabilities									1,006	–		–	–	1,006

Dividends declared on common
											and preferred shares	–	–	3,008	–	3,008
Dividends declared by subsidiaries
											to non-controlling interests	–	–	64	–	64
Effect of changes in foreign exchange rates									(261)	261		–	–	–
Other									63	(8)	(3)	20	72
Notes to consolidatedfinancial statements
Total non-cash changes									808	253	3,069	20	4,150
December 31, 2019					26,296			56	729	–	27,081
(1) Included in Other current assets, Other non-current assets and Trade payables and other liabilities in the statements of financial position.
BCE Inc. 2019 Annual Report	154

				DERIVATIVE TO
			DEBT DUE WITHIN	HEDGE FOREIGN
			ONE YEAR AND	CURRENCY	DIVIDENDS	OTHER
		LONG-TERM DEBT	ON DEBT (1)	PAYABLE	LIABILITIES	TOTAL
							January 1, 2018	23,393						54	678	–						24,125
							Cash flows from (used in) financing activities
							Decrease in notes payable		(241)	118		–	–						(123)
							Issue of long-term debt		2,996	–		–	–						2,996
							Repayment of long-term debt		(2,713)	–		–	–						(2,713)
							Decrease in securitized trade receivables		(2)	–		–	–						(2)
							Cash dividends paid on common
											and preferred shares	–	–	(2,828)	–						(2,828)
							Cash dividends paid by subsidiaries
											to non-controlling interests	33							–	–	(16)	–		(16)
							Other financing activities		–		–	(35)	(75)
							Total cash flows from (used in) financing activities
							excluding equity		–	118	(2,844)	(35)	(2,761)
							Non-cash changes arising from
							Finance lease additions		414	–		–	–						414
							Dividends declared on common
											and preferred shares	–	–	2,856	–						2,856
							Dividends declared by subsidiaries
											to non-controlling interests	–	–		5	–						5
							Effect of changes in foreign exchange rates		341	(341)		–	–						–
							Business acquisitions		96	–		–	–						96
							Other		161	–	(4)	35	192
							Total non-cash changes		1,012	(341)	2,857	35	3,563
							December 31, 2018	24,405						(169)	691	–						24,927
							(1) Included in Other current assets and Other non-current assets in the statements of financial position.
							Note 30 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, 2019.
THERE-
			2020	2021				2022	2023	2024	AFTER							TOTAL
							Wireline	1,213	789					473	253							114	59		2,901
							Wireless	1,907	1,060					389	113	80	563						4,112
							Total	3,120	1,849					862	366							194	622		7,013

							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.
	Notes to consolidated	financial statements
BCE Inc. 2019 Annual Report	155

Note 31 Commitments and contingencies
COMMITMENTS
The following table is a summary of our contractual obligations at December 31, 2019 that are due in each of the next five years and thereafter.
							THERE-
		2020	2021	2022	2023	2024	AFTER	TOTAL
Commitments for property, plant and
equipment and intangible assets		1,050	796	656	521	381	589	3,993
Purchase obligations		593	510	460	297	180	370	2,410
Leases committed not yet commenced		10	4	3	3	2	5	27
Total		1,653	1,310	1,119	821	563	964	6,430
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.			Our commitments for leases not yet commenced include OOH advertising spaces and real estate with lease terms ranging from 4 to 20 years.
			These leases are non-cancellable.
Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations.
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
			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 5, 2020, 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.
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 resellers pay to access network infrastructure built by facilities-based providers like Bell Canada, with retroactive effect back to March 2016 (the Decision). The estimated cost impact to Bell Canada of the Decision could be in excess of $100 million, if not overturned or otherwise modified. Bell Canada and five major cable carriers (the Applicants) have obtained leave to appeal the Decision from the Federal Court of Appeal. The Federal Court of Appeal has also granted stay of the Decision until it makes its final ruling. The Applicants and TELUS Communications Inc. (Telus) further appealed the Decision to the Federal Cabinet and have filed review and vary applications of the Decision with the CRTC. As a result of the
stay, the impact of the Decision has not been recorded in our 2019 financial statements.


Note 32 Related party transactions
SUBSIDIARIES
The following table shows BCE’s significant subsidiaries at December 31, 2019. BCE has other subsidiaries which have not been included in the	Notes to consolidated	financial statements
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							2019	2018
Bell Canada						100%		100%
Bell Mobility						100%		100%
Bell Media						100%		100%
BCE Inc. 2019 Annual Report	156

		TRANSACTIONS WITH JOINT ARRANGEMENTS AND ASSOCIATESDuring 2019 and 2018, 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 2019, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $17 million (2018 – $17 million) and
		$200 million (2018 – $187 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 $12 million from the Master Trust Fund for 2019 and $11 million for 2018. The details of BCE’s post-employment benefit plans are set out in Note 24, Post-employment benefit plans.
		COMPENSATION OF KEY MANAGEMENT PERSONNEL AND BOARD OF DIRECTORS
		The following table includes compensation of key management personnel and the board of directors for the years ended December 31, 2019
		and 2018 included in our income statements. Key management personnel included the company’s Chief Executive Officer, Chief Operating Officer, Group President and the executives who reported directly to them.
		FOR THE YEAR ENDED DECEMBER 31	2019	2018
		Wages, salaries, fees and related taxes and benefits	(24)	(27)
		Post-employment benefit plans and OPEBs cost	(3)		(4)
		Share-based compensation	(29)	(23)
		Key management personnel and board of directors compensation expense	(56)	(54)
		Note 33 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	2019	2018
		Current assets	314	337
		Non-current assets	994	993
		Total assets	1,308	1,330
		Current liabilities	151	142

		Non-current liabilities	192	201
		Total liabilities	343	343
		Total equity attributable to BCE shareholders	671	685
		NCI	294	302
	Notes to consolidated	financial statements
		(1) At December 31, 2019 and 2018, 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, 2019 and 2018 include $8 million and $10 million, respectively, directly attributable to NCI.
BCE Inc. 2019 Annual Report	157

SELECTED INCOME AND CASH FLOW INFORMATION
		CTV SPECIALTY (1)
FOR THE YEAR ENDED DECEMBER 31		2019	2018
Operating revenues		878	857
Net earnings		193	131
Net earnings attributable to NCI		61	42
Total comprehensive income		181	149
Total comprehensive income attributable to NCI		58	47
Cash dividends paid to NCI		65	16
(1) CTV Specialty’s net earnings and total comprehensive income include $5 million directly attributable to NCI for 2019 and $4 million for 2018.
Note 34 Business acquisitions and dispositions
2018
ACQUISITION OF AXIA NETMEDIA CORPORATION (AXIA)On August 31, 2018, BCE completed the acquisition of all of the issued and outstanding common shares of Axia for a total cash consideration of $154 million.
Axia provides broadband network services to commercial and government accounts throughout the province of Alberta. The acquisition of Axia
expands BCE’s broadband operations in Alberta and will add approximately 10,000 kilometres of fibre capacity to our footprint.
Axia is included in our Bell Wireline segment in our consolidated financial statements.
The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.
			TOTAL
Cash consideration			154
Total cost to be allocated			154
Trade and other receivables			5
Other non-cash working capital			(13)
Property, plant and equipment			64
Finite-life intangible assets			20
Other non-current liabilities			(5)
			71
Cash and cash equivalents			3
Fair value of net assets acquired			74
Goodwill (1)			80

(1) Goodwill arises principally from expected synergies and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline group of CGUs.
The transaction did not have a significant impact on our consolidated operating revenues and net earnings for the year ended December 31,
2018.
Notes to consolidatedfinancial statements
ACQUISITION OF ALARMFORCEOn January 5, 2018, BCE acquired all of the issued and outstanding shares of AlarmForce for a total consideration of $182 million, of which $181 million was paid in cash and the remaining $1 million through the
				AlarmForce provides security alarm monitoring, personal emergency
				response monitoring, video surveillance and related services to residential and commercial subscribers. The acquisition of AlarmForce supports our strategic expansion in the Smart Home marketplace.
issuance of 22,531 BCE common shares.
Subsequent to the acquisition of AlarmForce, on January 5, 2018, BCE sold AlarmForce’s approximate 39,000 customer accounts in British Columbia, Alberta and Saskatchewan to Telus for total proceeds of				AlarmForce is included in our Bell Wireline segment in our consolidated
				financial statements.
approximately $68 million.
BCE Inc. 2019 Annual Report	158

		The following table summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.
			TOTAL
		Cash consideration	181
		Issuance of 22,531 BCE common shares (1)	1
		Total cost to be allocated	182
		Assets held for sale (2)	68
		Other non-cash working capital	(5)
		Property, plant and equipment	8
		Finite-life intangible assets (3)	34
		Indefinite-life intangible assets	1
		Other non-current assets	1
		Deferred tax liabilities	(7)
			100
		Cash and cash equivalents	4
		Fair value of net assets acquired	104
		Goodwill (4)	78
		(1) Recorded at fair value based on the market price of BCE common shares on the acquisition date.(2) Consists mainly of customer relationships recorded at fair value less costs to sell.(3) Consists mainly of customer relationships.(4) Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill arising from the transaction was allocated to our Bell Wireline
		group of CGUs.
		For the year ended December 31, 2018, operating revenues of $43 million from AlarmForce are included in the consolidated income statements from the date of acquisition. The transaction did not have a significant impact on our consolidated net earnings for the year ended December 31,
		2018. These amounts reflect the amortization of certain elements of the purchase price allocation and related tax adjustments.
		Note 35 Adoption of IFRS 16
		Upon adoption of IFRS 16 on January 1, 2019, we recognized right-of-use assets of $2,257 million within property, plant and equipment, and lease liabilities of $2,304 million within debt, with an increase to our deficit of $19 million. These amounts were recognized in addition to assets under finance leases of $1,947 million and the corresponding finance		lease liabilities of $2,097 million at December 31, 2018 under IAS 17. As a result, on January 1, 2019, our total right-of-use assets and lease liabilities amounted to $4,204 million and $4,401 million, respectively.
				The table below shows the impacts of adopting IFRS 16 on our January 1, 2019 consolidated statement of financial position.
JANUARY 1, 2019
					DECEMBER 31, 2018	IFRS 16	UPON ADOPTION
					AS REPORTED	IMPACTS	OF IFRS 16
		Prepaid expenses					244	(55)	189
		Other current assets					329	9			338
		Property, plant and equipment					24,844	2,257	27,101
		Other non-current assets					847	17	864
		Trade payables and other liabilities					3,941	(10)	3,931
		Debt due within one year					4,645	293	4,938
		Long-term debt					19,760	2,011	21,771
		Deferred tax liabilities					3,163	(7)			3,156
		Other non-current liabilities					997	(39)	958
		Deficit					(4,937)	(19)	(4,956)	Notes to consolidated	financial statements
		Non-controlling interest					326	(1)			325
		BCE’s operating lease commitments at December 31, 2018 were $1,612 million. The difference between operating lease commitments at December 31, 2018 and lease liabilities of $2,304 million upon adoption of IFRS 16 at January 1, 2019, is due mainly to an increase of $1,122 million related to renewal options reasonably certain to be exercised,		an increase of $112 million mainly related to non-monetary transactions and a decrease of ($542) million as a result of discounting applied to future lease payments, which was determined using a weighted average incremental borrowing rate of 3.49% at January 1, 2019.
BCE Inc. 2019 Annual Report	159