Enhanced Investments - Financial Portal

Published: 2020-11-05

		Consolidated financial statements
		Consolidated income statements
			THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30
		(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)		2020		2019	2020		2019
		Operating revenues		5,787		5,940	16,781		17,518
		Operating costs		(3,333)		(3,372)	(9,578)		(9,996)
		Severance, acquisition and other costs		(26)		(23)	(64)		(86)
		(876)		(852)	(2,603)			(2,604)
		(232)		(225)	(696)			(662)
		Finance costs
		(279)		(280)	(836)			(840)
		Interest on post-employment benefit obligations		(12)		(16)	(35)		(47)
		Impairment of assets		(4)		(1)	(460)		(6)
		Other (expense) income		(29)		62	(156)		113
		(262)		(319)	(601)			(884)
		734		914	1,752			2,506
		Net earnings from discontinued operations		6		8	15		24
		740		922	1,767			2,530
		Net earnings from continuing operations attributable to:
		686		859	1,594			2,344
		32		37	104			113
		16		18	54			49
		734		914	1,752			2,506
		Net earnings attributable to:
		692		867	1,609			2,368
		32		37	104			113
		16		18	54			49
		740		922	1,767			2,530
		Net earnings per common share – basic and diluted		9
		0.76		0.96	1.76			2.61
		Discontinued operations		0.01		–	0.02		0.02
		0.77		0.96	1.78			2.63
		904.3		901.4	904.3			899.8

	Consolidated	financial statements
BCE Inc. 2020 Third Quarter Shareholder Report	39

Consolidated statements of comprehensive income
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTE	2020			2019	2020			2019
Net earnings from continuing operations		734			914	1,752			2,506
Other comprehensive (loss) income from continuing operations,
net of income taxesItems 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 the three and nine months ended
							September 30, 2020 and 2019, respectively	(8)		–	(15)	–
							Net change in value of derivatives designated as cash flow hedges, net
							of income taxes of $39 million and ($46) million for the three months ended September 30, 2020 and 2019, respectively and ($37) million and ($30) million for the nine months ended September 30, 2020 and 2019, respectively
		(106)			125	101			81
Items that will not be reclassified to net earnings
							Actuarial gains (losses) on post-employment benefit plans, net of
							income taxes of ($40) million and ($113) million for the three months ended September 30, 2020 and 2019, respectively, and ($80) million and $5 million for the nine months ended September 30, 2020 and 2019, respectively (1)
				13	108			306	218		(14)
							Net change in value of derivatives designated as cash flow hedges, net
							of income taxes of $4 million and ($3) million for the three months ended September 30, 2020 and 2019, respectively, and ($8) million and $5 million for the nine months ended September 30, 2020 and 2019, respectively
		(12)			9	21			(13)
Other comprehensive (loss) income from continuing operations		(18)			440	325			54
Net earnings from discontinued operations attributable to common
shareholders		6			8	15			24
Total comprehensive income		722			1,362	2,092			2,584
Total comprehensive income attributable to:
Common shareholders		675			1,307	1,933			2,425
Preferred shareholders		32			37	104			113
Non-controlling interest		15			18	55			46
Total comprehensive income		722			1,362	2,092			2,584
(1) The discount rate used to value our post-employment benefit obligations at September 30, 2020 was 2.7% compared to 2.8% at June 30, 2020 and 3.1% at December 31, 2019. The discount rate used
to value our post-employment benefit obligations at September 30, 2019 and at June 30, 2019 was 3.0% compared to 3.8% at December 31, 2018.

Consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	40

		Consolidated statements of financial position
		(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	SEPTEMBER 30, 2020	DECEMBER 31, 2019
		ASSETSCurrent assets
		Cash	1,482		141
		Cash equivalents	197		4
		Trade and other receivables	10	2,945		3,038
		Inventory	425		427
		Contract assets	799		1,111
		Contract costs	401		415
		Prepaid expenses	264		194
		Other current assets	191		190
		Assets held for sale	3	829		–
		Total current assets	7,533		5,520
		Non-current assets
		Contract assets	273		533
		Contract costs	351		368
		Property, plant and equipment	27,057		27,636
		Intangible assets	12,931		13,352
		Deferred tax assets	142		98
		Investments in associates and joint ventures	772		698
		Other non-current assets	11	2,011		1,274
		Goodwill	10,552		10,667
		Total non-current assets	54,089		54,626
		Total assets	61,622		60,146
		LIABILITIESCurrent liabilities
		Trade payables and other liabilities	3,566		3,954
		Contract liabilities	699		683
		Interest payable	190		227
		Dividends payable	767		729
		Current tax liabilities	292		303
		Debt due within one year	2,904		3,881
		Liabilities held for sale	3	159		–
		Total current liabilities	8,577		9,777
		Non-current liabilities
		Contract liabilities	223		207
		Long-term debt	12	24,914		22,415
		Deferred tax liabilities	3,827		3,561
		Post-employment benefit obligations	13	1,969		1,907
		Other non-current liabilities	1,032		871
		Total non-current liabilities	31,965		28,961
		Total liabilities	40,542		38,738
		EQUITYEquity attributable to BCE shareholders
	Consolidated	financial statements
		Preferred shares	4,004		4,004
		Common shares	20,386		20,363
		Contributed surplus	1,168		1,178
		Accumulated other comprehensive income	258		161
		Deficit	(5,087)		(4,632)
		Total equity attributable to BCE shareholders	20,729		21,074
		Non-controlling interest	351		334
		Total equity	21,080		21,408
		Total liabilities and equity	61,622		60,146
BCE Inc. 2020 Third Quarter Shareholder Report	41

Consolidated statements of changes in equity
		ATTRIBUTABLE TO BCE SHAREHOLDERS
						ACCUM-
						ULATED
						OTHER
						COMPRE-	NON-
		CONTRI-				HENSIVE	CONTROL-
FOR THE PERIOD ENDED SEPTEMBER 30, 2020			PREFERRED	COMMON	BUTED	INCOME	LING	TOTAL
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)SHARESSHARESSURPLUS(LOSS)DEFICITTOTALINTERESTEQUITY
Balance at December 31, 2019			4,004	20,363	1,178		161	(4,632)	21,074	334	21,408
Net earnings									–	–		–	–	1,713	1,713	54	1,767
Other comprehensive income									–	–		–	106	218	324	1	325
Total comprehensive income									–	–		–	106	1,931	2,037	55	2,092
Common shares issued under employee stock option plan									–	23		(1)	–	–	22	–	22
Other share-based compensation									–	–		(9)	–	(23)	(32)	–	(32)
Dividends declared on BCE common and preferred shares									–	–		–	–	(2,363)	(2,363)	–	(2,363)
Dividends declared by subsidiaries to non-controlling
interest									–	–		–	–	–	–	(38)	(38)
Settlement of cash flow hedges transferred to the cost
basis of hedged items									–	–		–	(9)	–	(9)	–	(9)
Balance at September 30, 2020			4,004	20,386	1,168		258	(5,087)	20,729	351	21,080
		ATTRIBUTABLE TO BCE SHAREHOLDERS
						ACCUM-
						ULATED
						OTHER
						COMPRE-	NON-
		CONTRI-				HENSIVE	CONTROL-
FOR THE PERIOD ENDED SEPTEMBER 30, 2019			PREFERRED	COMMON	BUTED	INCOME	LING	TOTAL
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)SHARESSHARESSURPLUS(LOSS)DEFICITTOTALINTERESTEQUITY
Balance at December 31, 2018			4,004	20,036	1,170		90	(4,937)	20,363	326	20,689
Adoption of IFRS 16									–	–		–	–	(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									–	–		–	–	2,481	2,481	49	2,530
Other comprehensive income (loss)									–	–		–	70	(13)	57	(3)	54
Total comprehensive income									–	–		–	70	2,468	2,538	46	2,584
Common shares issued under employee stock option plan									–	238		(10)	–	–	228	–	228
Common shares issued under employee savings plan (ESP)									–	75		–	–	–	75	–	75
Other share-based compensation									–	1		7	–	7	15	–	15
Dividends declared on BCE common and preferred shares									–	–		–	–	(2,254)	(2,254)	–	(2,254)
Dividends declared by subsidiaries to non-controlling
interest									–	–		–	–	–	–	(50)	(50)
Settlement of cash flow hedges transferred to the cost
basis of hedged items									–	–		–	(19)	–	(19)	–	(19)
Other									–	–		–	–	–	–	15	15
Balance at September 30, 2019			4,004	20,350	1,167		141	(4,735)	20,927	336	21,263

Consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	42

		Consolidated statements of cash flows
			THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30
		(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)		2020		2019	2020						2019
		Cash flows from operating activitiesNet earnings from continuing operations
			734		914	1,752						2,506
		Adjustments to reconcile net earnings from continuing operations to cash flows
		from operating activities
		Severance, acquisition and other costs		26		23	64						86
		1,108		1,077	3,299						3,266
		Post-employment benefit plans cost		77		76	239						233
		273		274	818						821
		Impairment of assets		4		1	460						6
		Losses on investments		8	–		–		–	4
		262		319	601						884
		(69)		(62)	(219)						(213)
		(15)		(17)	(44)						(54)
		(11)		(45)	(59)						(144)
		(321)		(284)	(877)						(818)
		(236)		(88)	(463)						(504)
		(13)		(3)	(33)						(53)
		276		49	531						(224)
		Cash from discontinued operations		15		24	54						71
		2,110		2,258	6,123						5,867
		Cash flows used in investing activities
		(1,031)		(1,009)	(2,708)						(2,824)
		–		(1)	(23)						(51)
		(85)		–	(86)						–
		(49)		4	(67)						12
		Cash used in discontinued operations		(6)		(4)	(21)						(11)
		(1,171)		(1,010)	(2,905)						(2,874)
		Cash flows used in financing activities
		317		(1,066)	(1,117)						(222)
		(23)		–	(23)						31
		Issue of long-term debt		750		549	6,006						1,954
		Repayment of long-term debt		(979)		(225)	(3,909)						(2,025)
		–		161	22						225
		(40)		(14)	(209)						(100)
		(753)		(713)	(2,222)						(2,103)
		(32)		(47)	(101)						(110)
		(11)		(12)	(37)						(51)
		(32)		(8)	(87)						(47)
		Cash used in discontinued operations		(4)		(1)	(7)						(4)
		(807)		(1,376)	(1,684)						(2,452)
		185		200	1,341						494
		Cash at beginning of period		719	141						425
		1,482		919	1,482						919
		(53)		(328)	193						47
	Consolidated	financial statements
		Cash equivalents at beginning of period	250		375		4	–
		197		47	197						47
BCE Inc. 2020 Third Quarter Shareholder Report	43

Notes to consolidated financial statements
These consolidated interim financial statements (financial statements) should be read in conjunction with BCE’s 2019 annual consolidated financial
statements, approved by BCE’s board of directors on March 5, 2020.
These notes are unaudited.
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 advertising services to customers in Canada.
Note 2 Basis of presentation and significant accounting policiesThese financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting
Standards Board (IASB), under International Accounting Standard (IAS) 34 – Interim Financial Reporting and were approved by BCE’s board of directors
on November 4, 2020. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2019, except as noted below and as described in Note 3, Discontinued operations.
These financial statements do not include all of the notes required in annual financial statements.
All amounts are in millions of Canadian dollars, except where noted.
ESTIMATES AND KEY JUDGMENTSWhen preparing the financial statements, management makes estimates and judgments relating to reported amounts of revenues and expenses, reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities. We base our estimates on a number of factors, including historical experience, current events including but not limited to the COVID-19 pandemic and actions that the company may undertake in the future, 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.
ADOPTION OF AMENDED ACCOUNTING STANDARDSAs required, effective January 1, 2020, we adopted the following amended accounting standards.
STANDARDDESCRIPTIONIMPACT
IFRIC Agenda Decision on IFRS 16 – Leases		International Financial Reporting Interpretations Committee (IFRIC) agenda decision clarifying the determination of the lease term for cancellable or renewable leases under IFRS 16.	This agenda decision did not have a significant impact on our
			financial statements.
Definition of a Business, Amendments to IFRS 3 – Business Combinations		These amendments to the implementation guidance of IFRS 3	These amendments did not have any impact on our financial
		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.	statements. They may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.

Notes to consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	44

		FUTURE CHANGES TO ACCOUNTING STANDARDS
		The following amendments to standards issued by the IASB have not yet been adopted by BCE.
		STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
		COVID-19 – Related Rent Concessions, Amendment to IFRS 16 – Leases	This amendment provides an optional relief to lessees from	We are currently assessing the impact of this amendment, if we adopt the optional relief.	Effective for annual reporting periods beginning on or after
			applying IFRS 16’s guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic.
June 1, 2020. Early application
is permitted.
		Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions	These amendments clarify which costs should be included in	We are currently assessing the impact of these amendments.	Effective for annual reporting periods beginning on or after January 1, 2022. Early application is permitted.
			determining the cost of fulfilling a contract when assessing whether a contract is onerous.
		Note 3 Discontinued operations
		On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion.
		We have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at September 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.
		Subsequent to quarter end, we completed the previously announced sale for cash proceeds of approximately $940 million (net of debt and other items),
		and expect to record a gain on sale of approximately $220 million in Q4 2020. The capital gain as a result of the sale is expected to be mainly offset by the recognition of previously unrecorded capital loss carry forwards.
		The following table summarizes the carrying value of the assets and liabilities that are classified as held for sale at September 30, 2020.
					SEPTEMBER 30, 2020
		Contract assets				1
		Contract costs				2
		Property, plant and equipment				484
		Intangible assets				227
		Goodwill				115
		Total assets held for sale				829
		Long-term debt				113
		Deferred tax liabilities				37
		Other non-current liabilities				9
		Total liabilities held for sale				159
		Net assets held for sale				670
		The following tables summarize the income statements and statements of cash flows of our discontinued operations for the three and nine months
		ended September 30, 2020 and 2019.
				THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30		2020			2019	2020	2019
		Operating revenues		37			44	116	130
		Operating costs		(20)			(18)	(55)	(54)
		Depreciation		–			(9)	(18)	(27)

		Amortization		–			(5)	(7)	(12)
		Interest expense		(2)			(2)	(6)	(6)
		Other expense		(6)			–	(8)	(1)
		Income taxes		(3)			(2)	(7)	(6)
		Net earnings attributable to common shareholders		6			8	15	24
	Notes to consolidated	financial statements
				THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30		2020			2019	2020	2019
		Cash flows from operating activities		15			24	54	71
		Cash flows used in investing activities		(6)			(4)	(21)	(11)
		Cash flows used in financing activities		(4)			(1)	(7)	(4)
		Net increase in cash		5			19	26	56
BCE Inc. 2020 Third Quarter Shareholder Report	45

Note 4 Segmented information
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.
To align with changes in how we manage our business and assess performance, the operating results of our public safety land radio network business
are now included within our Bell Wireline segment effective January 1, 2020, with prior periods restated for comparative purposes. Previously, these results were included within our Bell Wireless segment. Our public safety land radio network business, which builds and manages land mobile radio networks primarily for the government sector, is now managed by our Bell Business Markets team in order to better serve our customers with end-to-end communications solutions.
As a result of our agreement to sell substantially all of our data centre operations, the financial results of these data centre operations, which were
previously included in our Bell Wireline segment, are now presented as a discontinued operation. See Note 3, Discontinued operations, for additional details.
The following tables present financial information by segment for the three month periods ended September 30, 2020 and 2019.
			BELL	BELL	BELL	INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2020		NOTE	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS	BCE
Operating revenues
External customers			2,305	2,952	530			–	5,787
Inter-segment			13	80	98			(191)	–
Total operating revenues			2,318	3,032	628			(191)	5,787
Operating costs		5	(1,362)	(1,712)	(450)			191	(3,333)
Segment profit									(1)	956	1,320	178	–	2,454

Severance, acquisition and other costs		6					(26)
Depreciation and amortization							(1,108)
Finance costs
Interest expense							(279)
Interest on post-employment benefit obligations		13					(12)
Impairment of assets		7					(4)
Other expense		8					(29)
Income taxes							(262)
Net earnings from continuing operations							734
Net earnings from discontinued operations		3					6
Net earnings							740
(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
			BELL	BELL	BELL	INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2019		NOTE	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS	BCE
Operating revenues
External customers			2,297	2,989	654			–	5,940
Inter-segment			13	68	97			(178)	–
Total operating revenues			2,310	3,057	751			(178)	5,940
Operating costs		5	(1,310)	(1,715)	(525)			178	(3,372)
Segment profit (1)			1,000	1,342	226			–	2,568
Severance, acquisition and other costs		6					(23)
Depreciation and amortization							(1,077)
Finance costs
Interest expense							(280)
Interest on post-employment benefit obligations		13					(16)
Impairment of assets		7					(1)

Other income		8					62
Income taxes							(319)
Net earnings from continuing operations							914
Net earnings from discontinued operations		3					8
Net earnings							922
Notes to consolidatedfinancial statements
(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
BCE Inc. 2020 Third Quarter Shareholder Report	46

		The following tables present financial information by segment for the nine month periods ended September 30, 2020 and 2019.
				BELL	BELL	BELL	INTERSEGMENT
		FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS				BCE
		Operating revenues
		External customers		6,236	8,875	1,670		–	16,781
		Inter-segment		39	236	289	(564)				–
		Total operating revenues		6,275	9,111	1,959	(564)				16,781
		Operating costs	(3,512)	(5,177)	(1,453)	564				(9,578)
		Segment profit (1)		2,763	3,934	506		–	7,203
		Severance, acquisition and other costs	6				(64)
		Depreciation and amortization					(3,299)
		Finance costs
		Interest expense					(836)
		Interest on post-employment benefit obligations	13				(35)
		Impairment of assets	7				(460)
		Other expense	8				(156)
		Income taxes					(601)
		Net earnings from continuing operations					1,752
		Net earnings from discontinued operations	3				15
		Net earnings					1,767
		(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
				BELL	BELL	BELL	INTERSEGMENT
		FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019	WIRELESS	WIRELINE	MEDIA	ELIMINATIONS				BCE
		Operating revenues
		External customers		6,507	8,980	2,031		–	17,518
		Inter-segment		40	202	307	(549)				–
		Total operating revenues		6,547	9,182	2,338	(549)				17,518
		Operating costs	(3,687)	(5,165)	(1,693)	549				(9,996)
		Segment profit (1)		2,860	4,017	645		–	7,522
		Severance, acquisition and other costs	6				(86)
		Depreciation and amortization					(3,266)
		Finance costs
		Interest expense					(840)
		Interest on post-employment benefit obligations	13				(47)
		Impairment of assets	7				(6)
		Other income	8				113
		Income taxes					(884)
		Net earnings from continuing operations					2,506
		Net earnings from discontinued operations	3				24
		Net earnings					2,530
		(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

	Notes to consolidated	financial statements
BCE Inc. 2020 Third Quarter Shareholder Report	47

REVENUES BY SERVICES AND PRODUCTS
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30		2020		2019	2020		2019
Services (1)
Wireless		1,563		1,633	4,579		4,741
Wireline data		1,931		1,912	5,738		5,692
Wireline voice		839		881	2,574		2,685
Media		530		654	1,670		2,031
Other wireline services		61		61	181		182
Total services		4,924		5,141	14,742		15,331
Products (2)
Wireless		742		664	1,657		1,766
Wireline data		110		125	346		390
Wireline equipment and other		11		10	36		31
Total products		863		799	2,039		2,187
Total operating revenues		5,787		5,940	16,781		17,518
(1) Our service revenues are generally recognized over time.(2) Our product revenues are generally recognized at a point in time.
Note 5 Operating costs
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30						NOTE	2020	2019	2020	2019
Labour costs
Wages, salaries and related taxes and benefits (1)		(1,038)		(1,064)	(3,073)		(3,203)
Post-employment benefit plans service cost (net of capitalized amounts)						13	(65)	(60)	(204)	(186)
Other labour costs (2)		(244)		(256)	(707)		(742)
Less:
Capitalized labour		259		268	753		781
Total labour costs		(1,088)		(1,112)	(3,231)		(3,350)
Cost of revenues (3)		(1,787)		(1,777)	(4,912)		(5,221)
Other operating costs (4)		(458)		(483)	(1,435)		(1,425)
Total operating costs		(3,333)		(3,372)	(9,578)		(9,996)
(1) Costs reported for the three and nine months ended September 30, 2020 are net of amounts from the Canada Emergency Wage Subsidy, a wage subsidy program offered by the federal government
to eligible employers as a result of the COVID-19 pandemic.
(2) Other labour costs include contractor and outsourcing costs.(3) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.(4) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.
Note 6 Severance, acquisition and other costs
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30		2020		2019	2020		2019
Severance		(19)		(10)	(29)		(37)

Acquisition and other		(7)		(13)	(35)		(49)
Total severance, acquisition and other costs		(26)		(23)	(64)		(86)
SEVERANCE COSTSSeverance costs consist of charges related to involuntary and voluntary employee terminations.
Notes to consolidatedfinancial statements
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, litigation costs, when they are significant, and other costs.
BCE Inc. 2020 Third Quarter Shareholder Report	48

		Note 7 Impairment of assets
		During the second quarter of 2020, we identified indicators of impairment for certain of our Bell Media TV services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall increases in discount rates resulting from the economic impact of the COVID-19 pandemic.
		Accordingly, impairment testing was required for certain groups of cash-generating units (CGUs) as well as for goodwill.
		During Q2 2020, we recognized $452 million of impairment charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million allocated to indefinite-life intangible assets for broadcast licenses, $146 million allocated to finite-life intangible assets, mainly for program and feature film rights, and $15 million to property, plant and equipment for network and infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2020 to December 31, 2025, using discount rates of 8.0% to 9.5% and a perpetuity growth rate of (1.0)% to nil as well as market multiple data from public companies and market transactions. After impairments, the carrying value of these CGUs was $942 million.
		There was no impairment of Bell Media goodwill. For the Bell Media group of CGUs, a decrease of (0.6)% in the perpetuity growth rate or an increase of
		0.4% in the discount rate would have resulted in its recoverable amount being equal to its carrying value.
		Note 8 Other (expense) income
			THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30		NOTE	2020		2019	2020		2019
		Losses on retirements and disposals of property, plant and equipment and
		intangible assets	(1)		(5)	(71)			(11)
		Net mark-to-market (losses) gains on derivatives used to economically hedge
		equity settled share-based compensation plans	(13)		88	(50)			200
		Early debt redemption costs		12	(21)		–	(38)		(18)
		Equity gains (losses) from investments in associates and joint ventures
		Gain (loss) on investment	22		–	43			(53)
		Operations	(14)		(34)	(29)			(29)
		Losses on investments	–		–		–	(4)
		Other	(2)		13	(11)			28
		Total other (expense) income	(29)		62	(156)			113
		LOSSES ON RETIREMENTS AND DISPOSALS OF PROPERTY, PLANT AND EQUIPMENT
		AND INTANGIBLE ASSETS
		In Q2 2020, we recorded a loss of $45 million due to a change in strategic direction related to the ongoing development of some of our TV platform assets under construction.
		EQUITY GAIN (LOSS) FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURESWe recorded a gain on investment of $22 million and nil for the three months ended September 30, 2020 and 2019, respectively, and a gain (loss) on
		investment of $43 million and ($53) million for the nine months ended September 30, 2020 and 2019, respectively, related to equity gains (losses) on our
		share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

	Notes to consolidated	financial statements
BCE Inc. 2020 Third Quarter Shareholder Report	49

Note 9 Earnings per shareThe following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to
common shareholders.
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30		2020		2019	2020		2019
Net earnings from continuing operations attributable to common shareholders – basic		686		859	1,594		2,344
Net earnings from discontinued operations attributable to common shareholders – basic		6		8	15		24
Net earnings attributable to common shareholders – basic		692		867	1,609		2,368
Dividends declared per common share (in dollars)		0.8325		0.7925	2.4975		2.3775
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic		904.3		901.4	904.3		899.8
Assumed exercise of stock options (1)		0.1		0.8	0.1		0.4
Weighted average number of common shares outstanding – diluted (in millions)		904.4		902.2	904.4		900.2
(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 14,335,937 for the third quarter of 2020 and 10,795,216 for the first nine months of 2020,
compared to 40,311 for the third quarter of 2019 and 55,773 for the first nine months of 2019.
Note 10 Trade and other receivables
				NOTE		SEPTEMBER 30, 2020	DECEMBER 31, 2019
Trade receivables (1)			2,995		2,981
Allowance for revenue adjustments			(192)		(104)
Allowance for doubtful accounts				14	(136)		(62)
Current tax receivable			46		23
Other accounts receivable			232		200
Total trade and other receivables			2,945		3,038
(1) Includes wireless equipment installment plan receivables of $429 million and $85 million at September 30, 2020 and December 31, 2019, respectively.
Note 11 Other non-current assets
				NOTE		SEPTEMBER 30, 2020	DECEMBER 31, 2019
Net assets of post-employment benefit plans				13	895		558
Derivative assets				14	346		200
Long-term wireless equipment installment plan receivables			275		60
Investments (1)				14	162		128
Publicly-traded and privately-held investments				14	114		129
Long-term receivables			95		82
Other			124		117
Total other non-current assets			2,011		1,274
(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

Notes to consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	50

		Note 12 Debt
		On September 14, 2020, Bell Canada redeemed, prior to maturity, its 3.15% Series M-30 medium term note (MTN) debentures, having an outstanding principal amount of $750 million, which were due on September 29, 2021.
		On August 14, 2020, Bell Canada issued 1.65% Series M-53 MTN debentures under its 1997 trust indenture, with a principal amount of $750 million, which mature on August 16, 2027.
		On May 14, 2020, Bell Canada issued 2.50% Series M-52 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on May 14, 2030.
		On May 14, 2020 and February 13, 2020, Bell Canada issued 3.50% Series M-51 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million and $750 million, respectively, which mature on September 30, 2050.
		On March 25, 2020, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on March 12, 2025.
		On March 16, 2020, Bell Canada redeemed, prior to maturity, its 4.95% Series M-24 MTN debentures, having an outstanding principal amount of $500 million, which were due on May 19, 2021.
		During the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its $4 billion Canadian dollar committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S. dollar borrowings under such facilities. The borrowings, which were included in long-term debt, were hedged for foreign currency fluctuations through foreign exchange forward contracts. Accordingly, in Q2 2020, the forward contracts used to hedge these borrowings were settled. See Note 14, Financial assets and liabilities, for additional details.
		For the three and nine months ended September 30, 2020, we incurred early debt redemption charges of $21 million and $38 million, respectively, which were recorded in Other (expense) income in the income statement.
		Subsequent to quarter end, on October 6, 2020, Bell Canada announced that it will redeem, prior to maturity, on November 6, 2020, its 2.00% Series
		M-42 MTN debentures, having an outstanding principal amount of $850 million, which were due on October 1, 2021. We expect to incur early debt redemption charges of $12 million.
		Note 13 Post-employment benefit plans
		POST-EMPLOYMENT BENEFIT PLANS COSTWe provide pension and other benefits for most of our employees. These include defined benefit (DB) pension plans, defined contribution (DC) pension plans and other post-employment benefits (OPEBs).
		COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST
			THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30	2020	2019	2020	2019
		DB pension	(55)	(49)	(164)	(145)
		DC pension	(25)	(25)	(87)	(83)
		OPEBs	(1)	(1)	(2)	(2)
		Less:
		Capitalized benefit plans cost	16	15	49	44
		Total post-employment benefit plans service cost	(65)	(60)	(204)	(186)
		COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST
			THREE MONTHS	NINE MONTHS
		FOR THE PERIOD ENDED SEPTEMBER 30	2020	2019	2020	2019
		DB pension	(2)	(4)	(7)	(14)
		OPEBs	(10)	(12)	(28)	(33)
		Total interest on post-employment benefit obligations	(12)	(16)	(35)	(47)
	Notes to consolidated	financial statements
BCE Inc. 2020 Third Quarter Shareholder Report	51

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

SEPTEMBER

DECEMBER

SEPTEMBER

DECEMBER

SEPTEMBER

DECEMBER

SEPTEMBER

DECEMBER

FOR THE PERIOD ENDED

30, 2020

31, 2019

30, 2020

31, 2019

30, 2020

31, 2019

30, 2020

31, 2019

Present value of post- employment benefit obligations

(26,055)

(24,961)

(1,977)

(1,918)

(311)

(300)

(28,343)

(27,179)

Fair value of plan assets

26,915

25,474

374

376

–

27,289

25,850

Plan surplus (deficit)

860

513

(1,603)

(1,542)

(311)

(300)

(1,054)

(1,329)

(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 the 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.

In Q3 2020, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in Other comprehensive (loss) income from continuing operations of $148 million due to an increase in the fair value of plan assets of $514 million as a result of an actual return on plan assets of 2.7%, partly offset by an increase in the present value of our post-employment benefit obligations of ($366) million as a result of a decrease in the discount rate to

2.7% at September 30, 2020, compared to 2.8% at June 30, 2020.

During the first nine months of 2020, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in Other comprehensive (loss) income from continuing operations of $298 million due to an increase in the fair value of plan assets of $1,721 million as a result of an actual return on plan assets of 9.3%, partly offset by an increase in the present value of our post-employment benefit obligations of ($1,423) million as a result of a decrease in the discount rate to 2.7% at September 30, 2020, compared to 3.1% at December 31, 2019.

Note 14 Financial assets and liabilities

FAIR VALUE

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

SEPTEMBER 30, 2020

DECEMBER 31, 2019

CARRYING

CLASSIFICATION

FAIR VALUE METHODOLOGY

VALUE

FAIR VALUE

VALUE

FAIR VALUE

CRTC tangible benefits obligation

Trade payables and other

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

liabilities and other non-current liabilities

CRTC deferral account obligation

Trade payables and other

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

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

21,473

25,028

18,653

20,905

The following table provides the fair value details of financial instruments measured at fair value in the consolidated 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)

September 30, 2020

Publicly-traded and privately-held investments

Other non-current assets

114

–

112

Derivative financial instruments

Other current assets, trade payables and other liabilities, other non-current assets and liabilities

276

–

276

–

Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability (3)

Trade payables and other liabilities

(149)

–

(149)

OtherOther non-current assets and liabilities

106

162

(58)

December 31, 2019

Publicly-traded and privately-held investments

Other non-current assets

129

–

127

Derivative financial instruments

Other current assets, trade payables and other liabilities, other non-current assets and liabilities

165

–

165

–

Notes to consolidatedfinancial statements

MLSE financial liability (3)

Trade payables and other liabilities

(135)

–

(135)

OtherOther non-current assets and liabilities

128

(58)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3

financial instruments.

(3) 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 recognized in Other (expense) income in the consolidated income statements. The option

has been exercisable since 2017.

BCE Inc. 2020 Third Quarter Shareholder Report

		CREDIT RISK We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying
		amounts reported in the statements of financial position.
		We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at September 30, 2020 and December 31, 2019. We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure.
		The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended
		September 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.
		Allowance for doubtful accounts
		Balance, January 1, 2020
		Additions
		Usage
		Balance, September 30, 2020		10


					SEPTEMBER 30, 2020
		Trade receivables not past due (1)	2,253

		Under 60 days	355
		60 to 120 days	171
		Over 120 days	80
		Trade receivables, net of allowance for doubtful accounts	2,859











						BUY	AMOUNT	SELL
		TYPE OF HEDGE				CURRENCY	TO RECEIVE	CURRENCY	TO PAY	MATURITY

		Cash flow				USD	450	CAD	599	2020
		Cash flow				USD	194	CAD	251	2020
		Cash flow				PHP	505	CAD	13	2020
		Cash flow				USD	640	CAD	839	2021
		Economic				USD	86	CAD	119	2021
		Economic – put options				USD	105	CAD	142	2020
	Notes to consolidated
		Economic – put options				USD	214	CAD	284	2021
		Economic – call options				USD	74	CAD	101	2020
		Economic – call options				CAD	43	USD	30	2020
		Economic – call options				USD	47	CAD	65	2021
		Economic – call options				CAD	68	USD	47	2021
		Economic – options (1)				USD	30	CAD	40	2020
		Economic – options (1)				USD	120	CAD	161	2021

BCE Inc. 2020 Third Quarter Shareholder Report

INTEREST RATE EXPOSURESDuring Q1 2020, we entered into a series of interest rate options to economically hedge the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021. The fair value of these interest rate options at September 30, 2020 was a net liability of $6 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. A loss of $1 million and $6 million for the three and nine months ended September 30, 2020, respectively, relating to these interest rate options is recognized in Other (expense) income in the consolidated income statements.
A 1% increase (decrease) in interest rates would result in an increase (decrease) of $23 million ($30 million) in net earnings from continuing operations
at September 30, 2020.
EQUITY PRICE EXPOSURESWe use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at September 30, 2020 was a net liability of $66 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million recognized in Other current assets and Other non-current assets in the consolidated statements of financial position. A loss of $13 million and $50 million for the three and nine months ended September 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements.
A 5% increase (decrease) in the market price of BCE’s common shares at September 30, 2020 would result in a gain (loss) of $39 million recognized in
net earnings from continuing operations, with all other variables held constant.
COMMODITY PRICE EXPOSUREIn Q1 2020, we entered into fuel swaps to economically hedge the purchase cost of fuel in 2020 and 2021. The fair value of our fuel swaps at September 30, 2020 was an asset of $2 million included in Other current assets, Other non-current assets and Trade payables and other liabilities in
the consolidated statements of financial position. A gain of nil and $2 million for the three and nine months ended September 30, 2020, respectively, is recognized in Other (expense) income in the consolidated income statements.
A 25% increase (decrease) in the market price of fuel at September 30, 2020 would result in a gain (loss) of $3 million recognized in net earnings from
continuing operations, with all other variables held constant.
Note 15 Share capital
NORMAL COURSE ISSUER BID FOR BCE FIRST PREFERRED SHARESSubsequent to quarter end, on November 4, 2020, BCE’s Board of Directors authorized the company to commence a normal course issuer bid (NCIB)
to purchase for cancellation up to 10% of the public float of each series of BCE’s outstanding First Preferred Shares that are listed on the Toronto Stock Exchange. The NCIB will extend from November 9, 2020 to November 8, 2021, or an earlier date should BCE complete its purchases under the NCIB.
Note 16 Share-based paymentsThe following share-based payment amounts are included in the income statements as operating costs.
		THREE MONTHS	NINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30		2020		2019	2020	2019
ESP		(8)		(7)	(24)	(22)
Restricted share units (RSUs) and performance share units (PSUs)		(11)		(12)	(40)	(43)
Other (1)		(2)		(2)	(7)	(8)
Total share-based payments		(21)		(21)	(71)	(73)
(1) Includes deferred share plan (DSP), deferred share units (DSUs) and stock options.

Notes to consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	54

		The following tables summarize the change in unvested ESP contributions and outstanding RSUs/PSUs, DSUs and stock options for the period ended
		September 30, 2020.
		ESP
			NUMBER OF
			ESP SHARES
		Unvested contributions, January 1, 2020	1,124,198
		Contributions (1)	469,833
		Dividends credited	45,700
		Vested	(426,289)
		Forfeited	(79,358)
		Unvested contributions, September 30, 2020	1,134,084
		(1) The weighted average fair value of the shares contributed during the nine months ended September 30, 2020 was $58.
		RSUs/PSUs
			NUMBER OF
			RSUs/PSUs
		Outstanding, January 1, 2020	2,915,118
		Granted (1)	863,564
		Dividends credited	122,165
		Settled	(925,166)
		Forfeited	(29,710)
		Outstanding, September 30, 2020	2,945,971
		(1) The weighted average fair value of the RSUs/PSUs granted during the nine months ended September 30, 2020 was $63.
		DSUs
			NUMBER OF DSUs
		Outstanding, January 1, 2020	4,623,099
		Issued (1)	77,042
		Settlement of RSUs/PSUs	90,435
		Dividends credited	191,882
		Settled	(606,289)
		Outstanding, September 30, 2020	4,376,169
		(1) The weighted average fair value of the DSUs issued during the nine months ended September 30, 2020 was $61.
		STOCK OPTIONS
NUMBER OF				WEIGHTED AVERAGE
OPTIONS			EXERCISE PRICE ($)
		Outstanding, January 1, 2020	12,825,541		57
		Granted	3,410,150		65
		Exercised (1)	(419,546)		53
		Forfeited	(67,349)		61
		Outstanding, September 30, 2020	15,748,796		59
		Exercisable, September 30, 2020	5,295,419		58
		(1) The weighted average market share price for options exercised during the nine months ended September 30, 2020 was $64.

	Notes to consolidated	financial statements
BCE Inc. 2020 Third Quarter Shareholder Report	55

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.
		2020
Weighted average fair value per option granted		$1.55
Weighted average share price		$63
Weighted average exercise price		$65
Expected dividend growth		5%
Expected volatility		12%
Risk-free interest rate		1%
Expected life (years)		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 17 Contingency
As part of its ongoing review of wholesale Internet rates, on October 6, 2016, the Canadian Radio-television and Telecommunications Commission (CRTC) significantly reduced, on an interim basis, some of the wholesale rates that Bell Canada and other major providers charge for access by third-party
Internet resellers 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) obtained leave to appeal the Decision from the Federal Court of Appeal and the Federal Court of Appeal granted a stay of the Decision until making a final ruling. As a result of the stay, the impact of the Decision was not recorded in our 2019 financial statements.
The Federal Court of Appeal issued a decision on September 10, 2020 in which it rejected the appeal and lifted the stay. If the Applicants wish to appeal
the decision of the Federal Court of Appeal, they may seek leave to appeal to the Supreme Court of Canada by November 12, 2020.
The Applicants and TELUS Communications Inc. (Telus) also filed review and vary applications of the Decision with the CRTC. On September 28, 2020,
the CRTC issued a stay of the Decision pending its final decision on the review and vary applications.
The Applicants and Telus also appealed the Decision to the Federal Cabinet. On August 19, 2020, the Federal Cabinet issued an Order in Council which
did not overturn the Decision, noting that a further decision from the CRTC regarding the review and vary applications is pending.
As a result of the stay issued by the CRTC, the impact of the Decision continues to not be recorded in our Q3 2020 financial statements.
Note 18 COVID-19
Although the adverse impact of the COVID-19 pandemic on our financial results in the third quarter of 2020 was not as severe as what we experienced
in the second quarter, our business has continued to be negatively impacted by the emergency measures adopted to combat the spread of COVID-19 and the resulting adverse economic conditions. All of our segments continued to be adversely affected with a more pronounced impact on media advertising revenues, wireless outbound roaming revenues and product volumes. Although certain emergency measures taken to address the COVID-19 pandemic have been gradually eased starting in the latter part of the second quarter of 2020, such measures continued to have an adverse impact on our financial results in the third quarter. Depending on the severity and duration of COVID-19 disruptions, including the current resurgence and possible future resurgences in the number of COVID-19 cases, our operations and financial results could continue to be significantly and negatively impacted in future periods. It is not possible at this time to estimate the magnitude of such future impacts.

Notes to consolidatedfinancial statements
BCE Inc. 2020 Third Quarter Shareholder Report	56