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Published: 2020-08-06
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Consolidated financial statements
Consolidated income statements
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 30
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)NOTE2020201920202019
Operating revenues45,354 5,889 10,994 11,578 
Operating costs4, 5(3,023)(3,317)(6,245)(6,624)
Severance, acquisition and other costs6(22)(39)(38)(63)
Depreciation(869)(879)(1,727)(1,752)
Amortization(234)(220)(464)(437)
Finance costs
Interest expense(280)(279)(557)(560)
Interest on post-employment benefit obligations13(11)(15)(23)(31)
Impairment of assets7(449)(1)(456)(5)
Other (expense) income8(80)(54)(127)51 
Income taxes(96)(275)(339)(565)
Net earnings from continuing operations290 810 1,018 1,592 
Net earnings from discontinued operations 34 7 9 16 
Net earnings294 817 1,027 1,608 
Net earnings from continuing operations attributable to:
Common shareholders233 754 908 1,485 
Preferred shareholders34 38 72 76 
Non-controlling interest23 18 38 31 
Net earnings from continuing operations290 810 1,018 1,592 
Net earnings attributable to:
Common shareholders 237 761 917 1,501 
Preferred shareholders34 38 72 76 
Non-controlling interest23 18 38 31 
Net earnings294 817 1,027 1,608 
Net earnings per common share – basic and diluted9
Continuing operations0.26 0.84 1.00 1.65 
Discontinued operations3– 0.01 0.01 0.02 
Net earnings per common share – basic and diluted0.26 0.85 1.01 1.67 
Weighted average number of common shares outstanding – basic (millions)904.3 899.5 904.2 898.9 
 
Consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report40
Consolidated statements of comprehensive (loss) income
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 30
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)2020201920202019
290 810 1,018 1,592 
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 six months ended June 30, 2020 and 2019, respectively
(4)– (7)– 
Net change in value of derivatives designated as cash flow hedges, net of 
income taxes of $40 million and ($4) million for the three months ended 
June 30, 2020 and 2019, respectively and ($76) million and $16 million 
(111)10 207 (44)
Items that will not be reclassified to net earnings
Actuarial (losses) gains on post-employment benefit plans, net of income 
taxes of $594 million and $84 million for the three months ended 
June 30, 2020 and 2019, respectively, and ($40) million and $118 million 
for the six months ended June 30, 2020 and 2019, respectively (1)(1,621)(227)110 (320)
Net change in value of derivatives designated as cash flow hedges, net of 
income taxes of $9 million and $4 million for the three months ended 
June 30, 2020 and 2019, respectively, and ($12) million and $8 million for 
the six months ended June 30, 2020 and 2019, respectively(24)(10)33 (22)
(1,760)(227)343 (386)
Net earnings from discontinued operations attributable to common 
shareholders4 7 9 16 
(1,466)590 1,370 1,222 
Total comprehensive (loss) income attributable to:
(1,520)535 1,258 1,118 
Preferred shareholders34 38 72 76 
Non-controlling interest20 17 40 28 
(1,466)590 1,370 1,222 
(1)  The discount rate used to value our post-employment benefit obligations at June 30, 2020 was 2.8% compared to 4.2% at March 31, 2020 and 3.1% at December 31, 2019. The discount rate used 
to value our post-employment benefit obligations at June 30, 2019 was 3.0% compared to 3.3% at March 31, 2019 and 3.8% at December 31, 2018.
 
Consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report41
Consolidated statements of financial position
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTEJUNE 30, 2020DECEMBER 31, 2019
ASSETSCurrent assets
Cash 1,297 141 
Cash equivalents250 4 
Trade and other receivables102,812 3,038 
Inventory445 427 
Contract assets921 1,111 
Contract costs399 415 
Prepaid expenses301 194 
Other current assets212 190 
Assets held for sale3825 – 
Total current assets7,462 5,520 
Non-current assets
Contract assets328 533 
Contract costs341 368 
Property, plant and equipment26,840 27,636 
Intangible assets12,897 13,352 
Deferred tax assets123 98 
Investments in associates and joint ventures718 698 
Other non-current assets111,931 1,274 
Goodwill10,551 10,667 
Total non-current assets53,729 54,626 
Total assets61,191 60,146 
LIABILITIESCurrent liabilities
Trade payables and other liabilities 3,341 3,954 
Contract liabilities723 683 
Interest payable229 227 
Dividends payable766 729 
Current tax liabilities287 303 
Debt due within one year2,584 3,881 
Liabilities held for sale3205 – 
Total current liabilities8,135 9,777 
Non-current liabilities
Contract liabilities216 207 
Long-term debt12 25,024 22,415 
Deferred tax liabilities3,765 3,561 
Post-employment benefit obligations131,980 1,907 
Other non-current liabilities934 871 
Total non-current liabilities31,919 28,961 
Total liabilities40,054 38,738 
 
EQUITYEquity attributable to BCE shareholders Preferred shares4,004 4,004 
Consolidatedfinancial statements
Common shares20,386 20,363 
Contributed surplus1,155 1,178 
Accumulated other comprehensive income 386 161 
Deficit(5,142)(4,632)
Total equity attributable to BCE shareholders20,789 21,074 
Non-controlling interest348 334 
Total equity21,137 21,408 
Total liabilities and equity61,191 60,146 
BCE Inc. 2020 Second Quarter Shareholder Report42
Consolidated statements of changes in equity
ATTRIBUTABLE TO BCE SHAREHOLDERS
ACCUM-
ULATED 
OTHER
 COMPRE-NON-
CONTRI-HENSIVE CONTROL-
FOR THE PERIOD ENDED JUNE 30, 2020  PREFERRED COMMON BUTED INCOME LING TOTAL 
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)SHARESSHARESSURPLUS(LOSS)DEFICITTOTALINTERESTEQUITY
Balance at December 31, 20194,004 20,363 1,178 161 (4,632)21,074 334 21,408 
Net earnings– – – – 989 989 38 1,027 
Other comprehensive income– – – 231 110 341 2 343 
Total comprehensive income– – – 231 1,099 1,330 40 1,370 
Common shares issued under employee stock option plan– 23 (1)– – 22 – 22 
Other share-based compensation – – (22)– (31)(53)– (53)
Dividends declared on BCE common and preferred shares– – – – (1,578)(1,578)– (1,578)
Dividends declared by subsidiaries to non-controlling 
interest– – – – – – (26)(26)
Settlement of cash flow hedges transferred to the cost 
basis of hedged items– – – (6)– (6)– (6)
Balance at June 30, 20204,004 20,386 1,155 386 (5,142)20,789 348 21,137 
ATTRIBUTABLE TO BCE SHAREHOLDERS
ACCUM-
ULATED 
OTHER 
COMPRE-NON-
CONTRI-HENSIVE CONTROL-
FOR THE PERIOD ENDED JUNE 30, 2019 PREFERRED COMMON BUTED INCOME LING TOTAL 
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)SHARESSHARESSURPLUS(LOSS)DEFICITTOTALINTERESTEQUITY
Balance at December 31, 20184,004 20,036 1,170 90 (4,937)20,363 326 20,689 
Adoption of IFRS 16– – – – (19)(19)(1)(20)
Balance at January 1, 20194,004 20,036 1,170 90 (4,956)20,344 325 20,669 
Net earnings– – – – 1,577 1,577 31 1,608 
Other comprehensive loss– – – (64)(319)(383)(3)(386)
Total comprehensive (loss) income– – – (64)1,258 1,194 28 1,222 
Common shares issued under employee stock option plan– 67 (3)– – 64 – 64 
Common shares issued under employee savings plan (ESP)– 40 – – – 40 – 40 
Other share-based compensation – 1 (2)– 4 3 – 3 
Dividends declared on BCE common and preferred shares– – – – (1,501)(1,501)– (1,501)
Dividends declared by subsidiaries to non-controlling 
interest – – – – – – (39)(39)
Settlement of cash flow hedges transferred to the cost 
basis of hedged items– – – (12)– (12)– (12)
Other– – – – – – 15 15 
Balance at June 30, 20194,004 20,144 1,165 14 (5,195)20,132 329 20,461 
 
Consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report43
Consolidated statements of cash flows
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 30
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTE2020 201920202019
Cash flows from operating activitiesNet earnings from continuing operations
290 810 1,018 1,592 
Adjustments to reconcile net earnings from continuing operations to cash flows 
from operating activities
Severance, acquisition and other costs622 39 38 63 
Depreciation and amortization1,103 1,099 2,191 2,189 
Post-employment benefit plans cost1375 73 162 157 
Net interest expense275 271 545 547 
Impairment of assets7449 1 456 5 
Losses on investments8– – – 4 
Income taxes96 275 339 565 
Contributions to post-employment benefit plans(71)(70)(150)(151)
Payments under other post-employment benefit plans (12)(19)(29)(37)
Severance and other costs paid(13)(33)(48)(99)
Interest paid(240)(269)(556)(534)
Income taxes paid (net of refunds)6 (127)(227)(416)
Acquisition and other costs paid(11)(21)(20)(50)
Net change in operating assets and liabilities 576 42 255 (273)
Cash from discontinued operations317 22 39 47 
Cash flows from operating activities2,562 2,093 4,013 3,609 
Cash flows used in investing activities
Capital expenditures (900)(967)(1,677)(1,815)
Business acquisitions(23)(50)(23)(50)
Other investing activities(13)32 (19)8 
Cash used in discontinued operations3(8)(5)(15)(7)
Cash flows used in investing activities(944)(990)(1,734)(1,864)
Cash flows used in financing activities
(Decrease) increase in notes payable(1,204)277 (1,434)844 
(Decrease) increase in securitized trade receivables(400)– – 31 
Issue of long-term debt12 1,975 1,405 5,256 1,405 
Repayment of long-term debt12 (2,221)(1,597)(2,930)(1,800)
Issue of common shares– 44 22 64 
Purchase of shares for settlement of share-based payments(75)(10)(169)(86)
Cash dividends paid on common shares(753)(712)(1,469)(1,390)
Cash dividends paid on preferred shares(33)(37)(69)(63)
Cash dividends paid by subsidiaries to non-controlling interest(12)(12)(26)(39)
Other financing activities(25)(33)(55)(39)
Cash used in discontinued operations3(2)(2)(3)(3)
Cash flows used in financing activities(2,750)(677)(877)(1,076)
Net increase in cash354 173 1,156 294 
Cash at beginning of period943 546 141 425 
 
Cash at end of period1,297 719 1,297 719 
Net (decrease) increase in cash equivalents(1,486)253 246 375 
Cash equivalents at beginning of period1,736 122 4 – 
Consolidatedfinancial statements
Cash equivalents at end of period250 375 250 375 
BCE Inc. 2020 Second Quarter Shareholder Report44
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 August 5, 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 – LeasesInternational 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 CombinationsThese amendments to the implementation guidance of These amendments did not have any impact on our financial 
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.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 Second Quarter Shareholder Report45
FUTURE CHANGES TO ACCOUNTING STANDARDS
The following amendments to standards issued by the IASB have not yet been adopted by BCE. 
STANDARDDESCRIPTIONIMPACTEFFECTIVE DATE
COVID-19 – Related Rent Concessions, Amendment to IFRS 16 – LeasesThis 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 – ProvisionsThese 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. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, 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 June 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.
The following table summarizes the carrying value of the assets and liabilities that are classified as held for sale at June 30, 2020.
JUNE 30, 2020
Contract assets1 
Contract costs3 
Property, plant and equipment479 
Intangible assets227 
Goodwill115 
Total assets held for sale825 
Long-term debt115 
Deferred tax liabilities82 
Other non-current liabilities8 
Total liabilities held for sale205 
Net assets held for sale620 
The following tables summarize the income statements and statements of cash flows of our discontinued operations for the three and six months ended June 30, 2020 and 2019.
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
Operating revenues39 41 79 86 
Operating costs(19)(18)(35)(36)
Depreciation(8)(9)(18)(18)
Amortization(3)(3)(7)(7)
Interest expense(2)(2)(4)(4)
Other income(1)(1)(2)(1)
Income taxes(2)(1)(4)(4) 
Net earnings attributable to common shareholders4 7 9 16 
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
Cash flows from operating activities17 22 39 47 
Notes to consolidatedfinancial statements
Cash flows used in investing activities(8)(5)(15)(7)
Cash flows used in financing activities(2)(2)(3)(3)
Net increase in cash7 15 21 37 
BCE Inc. 2020 Second Quarter Shareholder Report46
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 June 30, 2020 and 2019.
BELL  BELLBELLINTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2020NOTEWIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External customers1,909 2,963 482 – 5,354 
Inter-segment13 80 97 (190)– 
Total operating revenues1,922 3,043 579 (190)5,354 
Operating costs5(1,043)(1,764)(406)190 (3,023)
Segment profit (1)879 1,279 173 – 2,331 
Severance, acquisition and other costs6(22)
Depreciation and amortization(1,103)
Finance costs
Interest expense(280)
Interest on post-employment benefit obligations13(11)
Impairment of assets7(449)
Other expense8(80)
Income taxes(96)
Net earnings from continuing operations290 
Net earnings from discontinued operations 4 
Net earnings294 
(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  BELLBELLINTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2019NOTEWIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External customers2,146 3,006 737 – 5,889 
Inter-segment14 67 105 (186)– 
Total operating revenues2,160 3,073 842 (186)5,889 
Operating costs5(1,192)(1,723)(588)186 (3,317)
Segment profit (1)968 1,350 254 – 2,572 
Severance, acquisition and other costs6(39)
Depreciation and amortization (1,099)
Finance costs
Interest expense(279)
Interest on post-employment benefit obligations13(15)
Impairment of assets7(1)
 
Other expense8(54)
Income taxes(275)
Net earnings from continuing operations810 
Net earnings from discontinued operations7 
Net earnings817 
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 Second Quarter Shareholder Report47
The following tables present financial information by segment for the six month periods ended June 30, 2020 and 2019.
BELL  BELLBELLINTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2020WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External customers3,931 1,140 – 10,994 
Inter-segment26 191 (373)– 
Total operating revenues3,957 1,331 (373)10,994 
Operating costs5(2,150)(1,003)373 (6,245)
Segment profit (1)1,807 328 – 4,749 
Severance, acquisition and other costs(38)
Depreciation and amortization(2,191)
Finance costs
Interest expense(557)
Interest on post-employment benefit obligations(23)
Impairment of assets(456)
Other expense(127)
Income taxes(339)
Net earnings from continuing operations1,018 
Net earnings from discontinued operations 9 
Net earnings1,027 
(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  BELLBELLINTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2019WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External customers4,210 1,377 – 11,578 
Inter-segment27 210 (371)– 
Total operating revenues4,237 1,587 (371)11,578 
Operating costs5(2,377)(1,168)371 (6,624)
Segment profit (1)1,860 419 – 4,954 
Severance, acquisition and other costs(63)
Depreciation and amortization (2,189)
Finance costs
Interest expense(560)
Interest on post-employment benefit obligations(31)
Impairment of assets(5)
Other income51 
Income taxes(565)
Net earnings from continuing operations1,592 
Net earnings from discontinued operations 16 
Net earnings1,608 
(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 consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report48
REVENUES BY SERVICES AND PRODUCTS
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
Services (1)
Wireless1,481 1,580 3,016 3,108 
Wireline data1,916 1,914 3,807 3,780 
Wireline voice863 897 1,735 1,804 
Media482 737 1,140 1,377 
Other wireline services58 62 120 121 
Total services4,800 5,190 9,818 10,190 
Products (2)
Wireless428 566 915 1,102 
Wireline data113 123 236 265 
Wireline equipment and other13 10 25 21 
Total products554 699 1,176 1,388 
Total operating revenues5,354 5,889 10,994 11,578 
(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 MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 30NOTE2020201920202019
Labour costs
Wages, salaries and related taxes and benefits(994)(1,085)(2,035)(2,139)
Post-employment benefit plans service cost (net of capitalized amounts)13(64)(58)(139)(126)
Other labour costs (1)(236)(257)(463)(486)
Less:
Capitalized labour248 270 494 513 
Total labour costs(1,046)(1,130)(2,143)(2,238)
Cost of revenues (2)(1,471)(1,706)(3,125)(3,444)
Other operating costs (3)(506)(481)(977)(942)
Total operating costs(3,023)(3,317)(6,245)(6,624)
(1)  Other labour costs include contractor and outsourcing costs.(2)  Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.(3)  Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.
Note 6  Severance, acquisition and other costs
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
Severance (2)(20)(10)(27)
Acquisition and other (20)(19)(28)(36)
 
Total severance, acquisition and other costs(22)(39)(38)(63)
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 Second Quarter Shareholder Report49
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.
Impairment charges for the three and six months ended June 30, 2020 of $449 million and $456 million, respectively, related primarily to $452 million of charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million al ocated to indefinite-life intangible assets for broadcast licenses, $146 mil ion al ocated 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. The carrying value of these CGUs was $942 million at June 30, 2020. 
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 MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 30NOTE2020201920202019
Losses on retirements and disposals of property, plant and equipment and 
intangible assets(54)(1)(70)(6)
Net mark-to-market (losses) gains on derivatives used to economically hedge 
equity settled share-based compensation plans(9)12 (37)112 
Early debt redemption costs12– (18)(17)(18)
Equity gains (losses) from investments in associates and joint ventures
Gain (loss) on investment 11 (53)21 (53)
Operations(24)(6)(15)5 
Losses on investments– – – (4)
Other(4)12 (9)15 
Total other (expense) income(80)(54)(127)51 
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 $11 million and $21 million for the three and six months ended June 30, 2020, respectively, and a loss on investment 
of ($53) million for the three and six months ended June 30, 2019, 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 consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report50
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 MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
Net earnings from continuing operations attributable to common shareholders – basic233 754 908 1,485 
Net earnings from discontinued operations attributable to common shareholders – basic4 7 9 16 
Net earnings attributable to common shareholders – basic237 761 917 1,501 
Dividends declared per common share (in dollars)0.83250.7925 1.66501.5850 
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic904.3 899.5 904.2 898.9 
Assumed exercise of stock options (1)0.1 0.8 0.2 0.5 
Weighted average number of common shares outstanding – diluted (in millions)904.4 900.3 904.4 899.4 
(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 14,358,128 for the second quarter of 2020 and 9,554,587 for the first half of 2020, compared 
to 3,379,952 for the second quarter of 2019 and 6,349,240 for the first half of 2019.
Note 10  Trade and other receivables
NOTEJUNE 30, 2020DECEMBER 31, 2019
Trade receivables2,789 2,981 
Allowance for revenue adjustments(133)(104)
Allowance for doubtful accounts14(104)(62)
Current tax receivable32 23 
Other accounts receivable228 200 
Total trade and other receivables2,812 3,038 
Note 11  Other non-current assets
NOTEJUNE 30, 2020DECEMBER 31, 2019
Net assets of post-employment benefit plans13 765 558 
Derivative assets14 539 200 
Long-term receivables235 142 
Investments (1)14 147 128 
Publicly-traded and privately-held investments14 122 129 
Other123 117 
Total other non-current assets1,931 1,274 
(1)  These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.
Note 12 Debt
On May 14, 2020, Bell Canada issued 2.50% Series M-52 medium term note (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.
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.
Notes to consolidatedfinancial statements
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. We incurred early debt redemption charges of $17 million, which were recorded in Other (expense) income in the income statement.
BCE Inc. 2020 Second Quarter Shareholder Report51
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 MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
DB pension (55)(48)(109)(96)
DC pension (26)(25)(62)(58)
OPEBs– – (1)(1)
Less:
Capitalized benefit plans cost17 15 33 29 
Total post-employment benefit plans service cost(64)(58)(139)(126)
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
DB pension (2)(5)(5)(10)
OPEBs(9)(10)(18)(21)
Total interest on post-employment benefit obligations(11)(15)(23)(31)
FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST
The following table shows the funded status of our post-employment benefit obligations.
FUNDEDPARTIALLY FUNDED (1)UNFUNDED (2)TOTAL
JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, 
FOR THE PERIOD ENDED20202019202020192020201920202019
Present value of post-employment benefit obligations(25,790)(24,961)(1,964)(1,918)(308)(300)(28,062)(27,179)
Fair value of plan assets26,493 25,474 374 376 – – 26,867 25,850 
Plan surplus (deficit)703 513 (1,590)(1,542)(308)(300)(1,195)(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 Q2 2020, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in Other comprehensive (loss) income from continuing operations of ($2,215) million due to an increase in the present value of our post-employment benefit obligations of ($4,673) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 4.2% at March 31, 2020, partly offset by an increase in the fair value of plan assets of $2,458 million as a result of an actual gain on plan assets of 10.7%.
During the first half 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 $150 million due to an increase in the fair value of plan assets of $1,207 million as a result of an actual gain on plan assets of 6.5%, partly offset by an increase in the present value of our post-employment benefit obligations of ($1,057) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 3.1% at December 31, 2019.
 
Notes to consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report52
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. 
JUNE 30, 2020DECEMBER 31, 2019
CARRYING CARRYING 
CLASSIFICATIONFAIR VALUE METHODOLOGYVALUEFAIR VALUEVALUEFAIR VALUE
CRTC tangible benefits obligationTrade payables and other Present value of estimated future cash flows discounted using observable market interest rates12 12 29 29 
liabilities and other non-current liabilities
CRTC deferral account obligationTrade payables and other Present value of estimated future cash flows discounted using observable market interest rates82 86 82 85 
liabilities and other non-current liabilities
Debt securities and other debt Debt due within one year and long-term debtQuoted market price of debt21,517 25,068 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 DATAMARKET INPUTS
CLASSIFICATIONASSET (LIABILITY) (LEVEL 1)(LEVEL 2) (1)(LEVEL 3) (2)
June 30, 2020 
Publicly-traded and privately-held investments Other non-current assets122 2 – 120 
Derivative financial instrumentsOther current assets, trade payables and other liabilities, other non-current assets and liabilities522 – 522 – 
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability (3) Trade payables and other liabilities(138)– – (138)
OtherOther non-current assets and liabilities91 2 147 (58)
December 31, 2019    
Publicly-traded and privately-held investments Other non-current assets129 2 – 127 
Derivative financial instrumentsOther current assets, trade payables and other liabilities, other non-current assets and liabilities165 – 165 – 
MLSE financial liability (3) Trade payables and other liabilities(135)– – (135)
OtherOther non-current assets and liabilities71 1 128 (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. 
CREDIT RISKWe are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying 
amounts reported in the statements of financial position. 
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 June 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 June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic. 
NOTENotes to consolidatedfinancial statements
Balance, January 1, 2020(62)
Additions(90)
Usage48 
Balance, June 30, 202010(104)
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. 
BCE Inc. 2020 Second Quarter Shareholder Report53
The following table provides further details on trade receivables, net of allowance for doubtful accounts.
JUNE 30, 2020DECEMBER 31, 2019
Trade receivables not past due1,926 2,082 
Trade receivables past due
Under 60 days395 541 
60 to 120 days252 232 
Over 120 days112 64 
Trade receivables, net of allowance for doubtful accounts2,685 2,919 
MARKET RISKCURRENCY EXPOSURESWe use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and 
certain foreign currency debt. 
During the first half of 2020, we entered into foreign exchange forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our $4 billion Canadian dollar committed credit facilities. 
These foreign exchange contracts have matured at June 30, 2020. A loss of $30 million and $14 million, for the three and six months ended June 30, 2020, 
respectively, relating to these foreign exchange forward contracts is recognized in Other (expense) income in the consolidated income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities. 
A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $1 million ($55 million) 
recognized in net earnings from continuing operations at June 30, 2020 and a gain (loss) of $228 million recognized in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant. 
A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $2 million in Other 
comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant. 
The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.
BUY  AMOUNT  SELL  AMOUNT  
TYPE OF HEDGECURRENCYTO RECEIVECURRENCYTO PAYMATURITYHEDGED ITEM
Cash flow USD200 CAD279 2020Commercial paper
Cash flowUSD370 CAD480 2020 Anticipated transactions
Cash flow PHP1,012 CAD26 2020 Anticipated transactions
Cash flowUSD588 CAD768 2021Anticipated transactions
EconomicUSD26 CAD36 2021Anticipated transactions
Economic – put optionsUSD209 CAD284 2020Anticipated transactions
Economic – put optionsUSD214 CAD284 2021 Anticipated transactions
Economic – call optionsUSD149 CAD201 2020 Anticipated transactions
Economic – call optionsCAD87 USD60 2020 Anticipated transactions
Economic – call optionsUSD47 CAD65 2021 Anticipated transactions
Economic – call optionsCAD68 USD47 2021 Anticipated transactions
Economic – options (1)USD60 CAD81 2020 Anticipated transactions
Economic – options (1)USD120 CAD161 2021 Anticipated transactions
(1)  Foreign currency options with a leverage provision and a profit cap limitation. 
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 June 30, 2020 was a net liability of $5 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 $3 million and $5 million for the three and six months ended June 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 a decrease (increase) of $31 million ($38 million) in net earnings from continuing operations 
at June 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 June 30, 2020 was a net liability of $39 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 $9 million and $37 million for the three and six months ended June 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements. 
Notes to consolidatedfinancial statements
BCE Inc. 2020 Second Quarter Shareholder Report54
A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2020 would result in a gain (loss) of $40 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 June 30, 2020 was an asset of $2 million included in Other current assets and Other non-current assets in the consolidated statements of financial position. A gain of $6 million and $2 million for the three and six months ended June 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 June 30, 2020 would result in a gain (loss) of $4 million recognized in net earnings from continuing 
operations, with all other variables held constant. 
Note 15  Share-based paymentsThe following share-based payment amounts are included in the income statements as operating costs. 
THREE MONTHSSIX MONTHS
FOR THE PERIOD ENDED JUNE 302020201920202019
ESP(8)(8)(16)(15)
Restricted share units (RSUs) and performance share units (PSUs)(13)(11)(29)(31)
Other (1)(2)(2)(5)(6)
Total share-based payments(23)(21)(50)(52)
(1)  Includes deferred share plan (DSP), deferred share units (DSUs) and stock options.
The following tables summarize the change in unvested ESP contributions and outstanding RSUs/PSUs, DSUs and stock options for the period ended June 30, 2020.
ESP
NUMBER OF  
ESP SHARES
Unvested contributions, January 1, 20201,124,198 
Contributions (1)316,202 
Dividends credited 29,520 
Vested(274,732)
Forfeited (50,017)
Unvested contributions, June 30, 20201,145,171 
(1)  The weighted average fair value of the shares contributed during the six months ended June 30, 2020 was $58.
RSUs/PSUs
NUMBER OF  
RSUs/PSUs
Outstanding, January 1, 20202,915,118 
Granted (1)861,582 
Dividends credited 79,152 
Settled(923,059)
Forfeited (21,307)
Outstanding, June 30, 20202,911,486 
(1)  The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2020 was $63.
 
DSUs
NUMBER OF DSUs
Outstanding, January 1, 20204,623,099 
Issued (1)62,996 
Settlement of RSUs/PSUs90,435 
Dividends credited 128,403 Notes to consolidatedfinancial statements
Settled(595,189)
Outstanding, June 30, 20204,309,744 
(1)  The weighted average fair value of the DSUs issued during the six months ended June 30, 2020 was $62.
BCE Inc. 2020 Second Quarter Shareholder Report55
STOCK OPTIONS
NUMBER OF WEIGHTED AVERAGE 
OPTIONSEXERCISE PRICE ($)
Outstanding, January 1, 202012,825,541 57 
Granted3,410,150 65 
Exercised (1)(419,546)53 
Forfeited(41,845)60 
Outstanding, June 30, 202015,774,300 59 
Exercisable, June 30, 20205,299,256 58 
(1)  The weighted average market share price for options exercised during the six months ended June 30, 2020 was $64. 
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 growth5%
Expected volatility12% 
Risk-free interest rate1% 
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 16 COVID-19
Although our telecommunications, media and broadcasting operations have been recognized by Canadian governments as essential services, our 
business has nonetheless, in the second quarter of 2020, been negatively impacted by the emergency measures adopted to combat the spread of COVID-19 and the resulting adverse economic conditions. All of our segments have been adversely affected, but we have seen a more pronounced impact on media advertising revenues, wireless product sales and outbound roaming revenues. Given that emergency measures taken to address the COVID-19 pandemic remained in place for most or all, as the case may be, of the second quarter and that certain of these measures gradually started being eased only in the latter part of the second quarter, such measures had a more significant impact on our second quarter financial results than on our first quarter financial results. Depending on the severity and duration of COVID-19 disruptions, including possible 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 Second Quarter Shareholder Report56