Try our mobile app

Published: 2022-11-03
<<<  go to BCE company page
Consolidated financial statements
CONSOLIDATED INCOME STATEMENTS
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)NOTE2022202120222021
Operating revenues36,0245,83617,73517,240
Operating costs3, 5(3,436)(3,278)(9,973)(9,777)
Severance, acquisition and other costs6(22)(50)(75)(146)
Depreciation(914)(902)(2,738)(2,702)
Amortization(267)(245)(793)(731)
Finance costs
Interest expense(298)(272)(827)(807)
Net return (interest) on post-employment benefit plans1213(5)38(15)
Impairment of assets7(21)–(129)(167)
Other (expense) income8(130)35(134)134
Income taxes9(178)(306)(745)(795)
Net earnings7718132,3592,234
Net earnings attributable to:
Common shareholders 7157572,1882,084
Preferred shareholders393410898
Non-controlling interest17226352
Net earnings7718132,3592,234
Net earnings per common share – basic and diluted100.780.832.402.30
Weighted average number of common shares outstanding – basic (millions)911.9906.9911.3905.5
 
Consolidatedfinancial statements
40  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30 
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)2022202120222021
7718132,3592,234
Other comprehensive (loss) income, net of income taxes
Items that will be subsequently reclassified to net earnings
Net change in value of derivatives designated as cash flow hedges, net 
of income taxes of $115 million and ($35) million for the three months ended September 30, 2022 and 2021, respectively, and $89 million and ($74) million for the nine months ended September 30, 2022 and 2021, respectively
(314)97(243)201
Items that will not be reclassified to net earnings
Actuarial (losses) gains on post-employment benefit plans, net of income 
taxes of $151 million and ($180) million for the three months ended 
September 30, 2022 and 2021, respectively, and ($179) million and ($754) million for the nine months ended September 30, 2022 and 2021, 
respectively (1)(412)4884912,053
Net change in value of publicly-traded and privately-held investments, net 
of income taxes of nil for the three months ended September 30, 2022 and 2021, and ($14) million and nil for the nine months ended September 30, 2022 and 2021, respectively
2(5)(2)(5)
Net change in value of derivatives designated as cash flow hedges, net 
of income taxes of ($21) million and ($8) million for the three months ended September 30, 2022 and 2021, respectively, and ($25) million and ($3) million for the nine months ended September 30, 2022 and 2021, respectively
5622678
(668)6023132,257
1031,4152,6724,491
Total comprehensive income attributable to:
411,3582,4944,340
393410898
23237053
1031,4152,6724,491
(1)  The discount rate used to value our post-employment benefit obligations at September 30, 2022 was 5.1% compared to 5.3% at June 30, 2022 and 3.2% at December 31, 2021. The discount rate used 
to value our post-employment benefit obligations at September 30, 2021 was 3.5% compared to 3.3% at June 30, 2021 and 2.6% at December 31, 2020.
 
Consolidatedfinancial statements
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  41
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTESEPTEMBER 30, 2022DECEMBER 31, 2021
ASSETSCurrent assets
Cash 2583289
Cash equivalents150–
Trade and other receivables3,8193,949
Inventory627482
Contract assets383414
Contract costs613507
Prepaid expenses295254
Other current assets2367253
Assets held for sale8–50
Total current assets6,8376,198
Non-current assets
Contract assets247251
Contract costs431387
Property, plant and equipment28,47328,235
Intangible assets16,16315,570
Deferred tax assets98105
Investments in associates and joint ventures615668
Post-employment benefit assets123,6783,472
Other non-current assets1,3181,306
Goodwill410,70010,572
Total non-current assets61,72360,566
Total assets68,56066,764
LIABILITIESCurrent liabilities
Trade payables and other liabilities 4,6024,455
Contract liabilities801799
Interest payable194247
Dividends payable867811
Current tax liabilities263141
Debt due within one year114,6862,625
Liabilities held for sale8–35
Total current liabilities11,4139,113
Non-current liabilities
Contract liabilities227246
Long-term debt1126,76727,048
Deferred tax liabilities4,9154,679
 
Post-employment benefit obligations121,2931,734
Other non-current liabilities9641,003
Total non-current liabilities34,16634,710
Consolidatedfinancial statements
Total liabilities45,57943,823
Commitments16
EQUITYEquity attributable to BCE shareholders Preferred shares143,8854,003
Common shares20,83820,662
Contributed surplus141,1621,157
Accumulated other comprehensive income 10213
Deficit(3,254)(3,400)
Total equity attributable to BCE shareholders22,64122,635
Non-controlling interest340306
Total equity22,98122,941
Total liabilities and equity68,56066,764
42  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
ATTRIBUTABLE TO BCE SHAREHOLDERS
ACCUM-
ULATED 
OTHERNON-
CONTRI- COMPRE-CONTROL-
FOR THE PERIOD ENDED SEPTEMBER 30, 2022 PREFERRED COMMON BUTED HENSIVE LING TOTAL 
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTESHARESSHARESSURPLUSINCOMEDEFICITTOTALINTERESTEQUITY
Balance at December 31, 20214,00320,6621,157213(3,400)22,63530622,941
Net earnings––––2,2962,296632,359
Other comprehensive (loss) income–––(183)4893067313
Total comprehensive (loss) income–––(183)2,7852,602702,672
Common shares issued under employee stock 
option plan–176(7)––169–169
Other share-based compensation ––9–(33)(24)–(24)
Repurchase of preferred shares14(118)–3––(115)–(115)
Dividends declared on BCE common and 
preferred shares––––(2,625)(2,625)–(2,625)
Dividends declared by subsidiaries to  
non-controlling interest––––––(36)(36)
Settlement of cash flow hedges transferred  
to the cost basis of hedged items–––(1)–(1)–(1)
Other–––(19)19–––
Balance at September 30, 20223,88520,8381,16210(3,254)22,64134022,981
ATTRIBUTABLE TO BCE SHAREHOLDERS
ACCUM-
ULATED 
OTHER NON-
CONTRI-COMPRE-CONTROL-
FOR THE PERIOD ENDED SEPTEMBER 30, 2021 PREFERRED COMMON BUTED HENSIVE LING TOTAL 
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)SHARESSHARESSURPLUSINCOMEDEFICITTOTALINTERESTEQUITY
Balance at December 31, 20204,00320,3901,174103(4,681)20,98934021,329
Net earnings––––2,1822,182522,234
Other comprehensive income–––2042,0522,25612,257
Total comprehensive income–––2044,2344,438534,491
Common shares issued under employee stock  
option plan–256(9)––247–247
Other share-based compensation ––(14)–(38)(52)–(52)
Dividends declared on BCE common and  
preferred shares––––(2,477)(2,477)–(2,477)
Dividends declared by subsidiaries to  
non-controlling interest ––––––(41)(41)
Settlement of cash flow hedges transferred  
to the cost basis of hedged items–––13–13–13
Other––––––(1)(1)
Balance at September 30, 20214,00320,6461,151320(2,962)23,15835123,509
 
Consolidatedfinancial statements
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  43
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 30
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)NOTE2022202120222021
Cash flows from operating activitiesNet earnings
7718132,3592,234
Adjustments to reconcile net earnings to cash flows from operating activities Severance, acquisition and other costs6225075146
Depreciation and amortization1,1811,1473,5313,433
Post-employment benefit plans cost124870151217
Net interest expense282268805794
Impairment of assets721–129167
Gains on investments8––(53)–
Income taxes9178306745795
Contributions to post-employment benefit plans(14)(64)(128)(213)
Payments under other post-employment benefit plans (17)(16)(47)(47)
Severance and other costs paid(44)(31)(102)(153)
Interest paid(385)(352)(954)(888)
Income taxes paid (net of refunds)(150)(407)(409)(611)
Acquisition and other costs paid(1)–(7)(6)
Change in contract assets(20)5335299
Change in wireless device financing plan receivables(6)(92)121(244)
Net change in operating assets and liabilities 1302958342
Cash flows from operating activities1,9961,7746,3096,265
Cash flows used in investing activities
Capital expenditures 2(1,317)(1,164)(3,495)(3,386)
Business acquisitions4(3)(1)(142)(12)
Business dispositions8(1)–53–
Spectrum licences16(3)(418)(3)(418)
Other investing activities(8)(11)9(49)
Cash flows used in investing activities(1,332)(1,594)(3,578)(3,865)
Cash flows (used in) from financing activities (Decrease) increase in notes payable(34)(322)622(368)
Increase (decrease) in securitized receivables11700(7)700(20)
Issue of long-term debt11–1,5709454,985
Repayment of long-term debt11(270)(249)(1,773)(2,516)
Issue of common shares1172169245
Purchase of shares for settlement of share-based payments(49)(83)(206)(245)
Repurchase of preferred shares14––(115)–
Cash dividends paid on common shares(839)(793)(2,473)(2,337)
Cash dividends paid on preferred shares(27)(31)(94)(93)
Cash dividends paid by subsidiaries to non-controlling interest(11)(13)(36)(41)
2(26) 
Other financing activities2(14)22
Cash flows (used in) from financing activities(527)230(2,287)(368)
Net (decrease) increase in cash(13)3292941,951
Consolidatedfinancial statements
Cash at beginning of period5961,846289224
Cash at end of period5832,1755832,175
Net increase in cash equivalents1508115081
Cash equivalents at beginning of period––––
Cash equivalents at end of period1508115081
44  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
Notes to consolidated financial statements
These consolidated interim financial statements (financial statements) should be read in conjunction with BCE’s 2021 annual consolidated financial 
statements, approved by BCE’s board of directors on March 3, 2022. 
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 2, 2022. 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, 2021, except as noted below.
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.
ADOPTION OF AMENDED ACCOUNTING STANDARDSAs required, we adopted the following amendments and clarifications to accounting standards issued by the IASB.
STANDARDDESCRIPTIONIMPACT
Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions, Contingent Liabilities and Contingent AssetsThese amendments clarify which costs should be included in These amendments were adopted effective January 1, 2022 and 
determining the cost of fulfilling a contract when assessing whether a contract is onerous.did not have a significant impact on our financial statements.
IFRIC Agenda Decision on Demand Deposits with Restrictions on Use arising from a Contract with a Third Party (IAS 7 – Statement of Cash Flows)In April 2022, the International Financial Reporting Interpretations Committee (IFRIC) issued an agenda decision clarifying that an entity should present a demand deposit with restrictions on use arising from a contract with a third party as cash and cash equivalents in the statements of financial position and cash flows, unless those restrictions change the nature of the deposit such that it no longer meets the definition of cash in IAS 7.In Q2 2022, we applied this agenda decision retrospectively to each prior period presented, the impact of which was limited to the classification of funding of $97 million received in Q1 2021 under a subsidy agreement with the Government of Québec. The application of this agenda decision resulted in the following:• an increase in Cash of $82 million with a corresponding 
decrease in Other current assets in the statement of financial position as at December 31, 2021
• an increase in Capital expenditures of ($5) million 
and ($8) million for the three and nine months ended September 30, 2021, respectively, and ($15) million for the year ended December 31, 2021 in the statements of cash flows
 
• an increase in Other financing activities of nil and 
$97 million for the three and nine months ended September 30, 2021, respectively, and $97 million for the year ended December 31, 2021 in the statement of cash flows.
• no impact in the statement of financial position as at 
January 1, 2021 as the funding was received in Q1 2021.
Notes to consolidatedfinancial statements
FUTURE CHANGES TO ACCOUNTING STANDARDS
The following amendments to standards issued by the IASB have not yet been adopted by BCE.   
STANDARDDESCRIPTIONIMPACTEFFECTIVE DATE
Disclosure of Accounting Policies – These amendments require that entities disclose material We are currently assessing the impact of these amendments on the disclosure of our accounting policies.Effective for annual reporting periods beginning on or after 
Amendments to IAS 1 – Presentation accounting policies, as defined, instead of significant accounting policies.
of Financial StatementsJanuary 1, 2023. Early application 
is permitted.
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  45
Note 3  |  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.
The following tables present financial information by segment for the three month periods ended September 30, 2022 and 2021.
BELL  BELLBELLINTER-SEGMENT
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2022WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External service revenues1,759631–5,193
Inter-segment service revenues1088(202)–
Operating service revenues1,769719(202)5,193
External product revenues692––831
Inter-segment product revenues5–(5)–
Operating product revenues697–(5)831
Total external revenues2,451631–6,024
Total inter-segment revenues1588(207)–
Total operating revenues2,466719(207)6,024
Operating costs5(1,377)(537)207(3,436)
Adjusted EBITDA (1)1,089182–2,588
Severance, acquisition and other costs(22)
Depreciation and amortization(1,181)
Finance costs
Interest expense(298)
Net return on post-employment benefit plans13
Impairment of assets(21)
Other expense(130)
Income taxes(178)
Net earnings771
(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  BELLBELLINTER-SEGMENT
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2021WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External service revenues1,642630–5,099
Inter-segment service revenues1289(194)–
Operating service revenues1,654719(194)5,099
External product revenues642––737
Inter-segment product revenues––––
Operating product revenues642––737
Total external revenues2,284630–5,836
Total inter-segment revenues129389(194)– 
Total operating revenues2,296719(194)5,836
Operating costs5(1,286)(504)194(3,278)
Adjusted EBITDA (1)1,010215–2,558
Severance, acquisition and other costs(50)
Depreciation and amortization (1,147)
Notes to consolidatedfinancial statements
Finance costs
Interest expense(272)
Net interest on post-employment benefit plans(5)
Impairment of assets–
Other income35
Income taxes(306)
Net earnings813
(1)  The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
46  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
The following tables present financial information by segment for the nine month periods ended September 30, 2022 and 2021.
BELL  BELLBELLINTER-SEGMENT
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2022WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External service revenues5,0862,105–15,603
Inter-segment service revenues32260(599)–
Operating service revenues5,1182,365(599)15,603
External product revenues1,797––2,132
Inter-segment product revenues7–(7)–
Operating product revenues1,804–(7)2,132
Total external revenues6,8832,105–17,735
Total inter-segment revenues39260(606)–
Total operating revenues6,9222,365(606)17,735
Operating costs5(3,775)(1,749)606(9,973)
Adjusted EBITDA (1)3,147616–7,762
Severance, acquisition and other costs6(75)
Depreciation and amortization(3,531)
Finance costs
Interest expense(827)
Net return on post-employment benefit plans1238
Impairment of assets7(129)
Other expense8(134)
Income taxes9(745)
Net earnings2,359
(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  BELLBELLINTER-SEGMENT
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2021WIRELESSWIRELINEMEDIAELIMINATIONSBCE
Operating revenues
External service revenues4,7141,919–15,107
Inter-segment service revenues34268(566)–
Operating service revenues4,7482,187(566)15,107
External product revenues1,772––2,133
Inter-segment product revenues4–(4)–
Operating product revenues1,776–(4)2,133
Total external revenues6,4861,919–17,240
Total inter-segment revenues38268(570)–
Total operating revenues6,5242,187(570)17,240
Operating costs5(3,622)(1,615)570(9,777)
Adjusted EBITDA (1)2,902572–7,463
Severance, acquisition and other costs6(146) 
Depreciation and amortization (3,433)
Finance costs
Interest expense(807)
Net interest on post-employment benefit plans12(15)
Impairment of assets7(167)
Other income8134Notes to consolidatedfinancial statements
Income taxes(795)
Net earnings2,234
(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. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  47
REVENUES BY SERVICES AND PRODUCTS
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
Services (1)
Wireless1,7591,6425,0864,714
Wireline data1,9871,9765,9145,885
Wireline voice7397782,2662,375
Media6316302,1051,919
Other wireline services7773232214
Total services5,1935,09915,60315,107
Products (2)
Wireless6926421,7971,772
Wireline data13086302331
Wireline equipment and other993330
Total products8317372,1322,133
Total operating revenues6,0245,83617,73517,240
(1)  Our service revenues are generally recognized over time.(2)  Our product revenues are generally recognized at a point in time.
Note 4  |  Business acquisition
In February 2022, Bell acquired EBOX and other related companies, which provide Internet, telephone and TV services to consumers and businesses in Québec and parts of Ontario for a total cash consideration of $153 million ($139 million net of cash acquired). The acquisition of EBOX and other related companies is expected to accelerate growth in Bell’s residential and small business customers. The results of the acquired companies are included in our Bell Wireline segment. 
The allocation of the purchase price includes provisional estimates, in particular for indefinite and finite-life intangible assets. The following table 
summarizes the fair value of the consideration paid and the fair value assigned to each major class of assets and liabilities.
TOTAL
Cash consideration153
Total cost to be allocated153
Other non-cash working capital5
Property, plant and equipment5
Indefinite-life intangible assets (1)17
Finite-life intangible and other assets (2)15
Trade payables and other liabilities(17)
Contract liabilities(5)
Deferred tax liabilities(9)
11
Cash and cash equivalents14
Fair value of net assets acquired25 
Goodwill (3)128
(1)  Consists of brand and digital assets.(2)  Consists mainly of customer relationships.(3)  Goodwill arises principally from expected synergies and future growth and is not deductible for tax purposes. Goodwill was allocated to our Bell Wireline group of cash-generating units (CGUs).
Notes to consolidatedfinancial statements
Operating revenues of $29 mil ion from EBOX and other related companies are included in the consolidated income statements from the date of acquisition. 
The transaction did not have a significant impact on our net earnings for the nine months ended September 30, 2022.
48  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
Note 5  |  Operating costs
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
Labour costs
(1,067)(1,067)(3,192)(3,171)
Post-employment benefit plans service cost (net of capitalized amounts)(61)(65)(189)(202)
(268)(243)(752)(747)
Less:
296268839793
(1,100)(1,107)(3,294)(3,327)
(1,862)(1,721)(5,284)(5,124)
(474)(450)(1,395)(1,326)
(3,436)(3,278)(9,973)(9,777)
(1)  We have reclassified amounts from the previous period to make them consistent with the presentation for the current period.(2)  Other labour costs include contractor and outsourcing costs.(3)  Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.(4)  Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.
Note 6  |  Severance, acquisition and other costs
THREE MONTHSNINE MONTHS
2022202120222021
(9)(25)(65)(129)
(13)(25)(10)(17)
(22)(50)(75)(146)
SEVERANCE COSTSSeverance costs consist of charges related to involuntary and voluntary employee terminations.
ACQUISITION AND OTHER COSTSAcquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations, costs relating to litigation and 
regulatory decisions, when they are significant, and other costs.
Note 7  |  Impairment of assets
2022Impairment charges for the three and nine months ended September 30, 2022 of $21 million and $129 million, respectively, relate mainly to right-of-use assets for certain office spaces we ceased using as part of our real estate optimization strategy as a result of our hybrid work policy. 
 
2021During the second quarter of 2021, we identified indicators of impairment for our Bell Media radio markets, notably a decline in advertising revenue and an increase in the discount rate resulting from the impact of the ongoing COVID-19 pandemic. Accordingly, impairment testing was required for our group of radio cash-generating units (CGUs). 
Notes to consolidatedfinancial statements
Impairment charges for the three and nine months ended September 30, 2021 of nil and $167 million, respectively, related primarily to $163 million of impairment charges for various radio markets within our Bell Media segment. These charges included $150 million allocated to indefinite-life intangible assets for broadcast licences, and $13 million to property, plant and equipment mainly for buildings and network infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2021 to December 31, 2026, using a discount rate of 8.5% and a perpetuity growth rate of (2.0%) as well as market multiple data from public companies and market transactions. After impairments, the carrying value of our group of radio CGUs was $235 million.
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  49
Note 8  |  Other (expense) income
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
Net mark-to-market (losses) gains on derivatives used to economically  
(74)61(80)221
––(42)(14)
(38)(36)(35)(51)
––53–
Losses on retirements and disposals of property, plant and equipment  
(5)(4)(9)(12)
Early debt redemption costs––(18)(53)
(13)14(3)43
(130)35(134)134
EQUITY LOSS FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURESWe recorded a loss on investment of $42 million and $14 million for the nine months ended September 30, 2022 and 2021, respectively, related to equity 
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.
GAINS ON INVESTMENTS
In Q2 2022, we recorded a gain on investment of $14 million, related to an obligation to repurchase at fair value the minority interest in one of our subsidiaries. 
On March 1, 2022, we completed the previously announced sale of our wholly-owned subsidiary 6362222 Canada Inc. (Createch). We recorded cash proceeds of $54 million and a gain on sale of $39 million (before tax expense of $2 million). Our results for the three months ended September 30, 2021 included Createch revenue of $15 million and net earnings of nil. Our results for the nine months ended September 30, 2022 and 2021 included Createch revenue of $10 million and $49 million and net earnings of nil and $1 million, respectively.
Note 9  |  Income taxes
During Q3 2022, various uncertain tax positions were favourably resolved, which resulted in the reversal of tax liabilities.
Note 10  |  Earnings per shareThe following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to 
common shareholders.
THREE MONTHSNINE MONTHS
2022202120222021
7157572,1882,084
Dividends declared per common share (in dollars)0.87502.76002.6250 
Weighted average number of common shares outstanding (in millions)
911.9906.9911.3905.5
0.40.70.60.2
912.3907.6911.9905.7
(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 Notes to consolidatedfinancial statements
price is higher than the average market value of a BCE common share. The number of excluded options was 3,244,990 for the third quarter and nil for the first nine months of 2022, compared to 
3,280,426 for the third quarter of 2021 and 3,314,662 for the first nine months of 2021.
Note 11  | Debt
On February 11, 2022, Bell Canada issued, under its 2016 trust indenture, 3.65% Series US-7 Notes, with a principal amount of $750 million in U.S. dollars ($954 million in Canadian dollars), which mature on August 15, 2052. The Series US-7 Notes have been hedged for foreign currency fluctuations through cross currency interest rate swaps. See Note 13, Financial assets and liabilities, for additional details.
The Series US-7 Notes are fully and unconditionally guaranteed by BCE.
On March 16, 2022, Bell Canada redeemed, prior to maturity, its 3.35% Series M-26 medium-term note (MTN) debentures, having an outstanding principal amount of $1 billion, which were due on March 22, 2023. As a result, in Q1 2022, we recognized early debt redemption charges of $18 million, which were recorded in Other (expense) income in the consolidated income statement.
50  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
SECURITIZATION PROGRAM
In Q3 2022, we entered into a new securitization program which replaced our previous securitized trade receivables program and now includes wireless device financing plan receivables. As a result, the maximum amount available under our securitization program increased from $1.3 billion to $2.3 billion. 
Similar to the previous program, the securitization program is recorded as a floating rate revolving loan secured by certain receivables. We continue to service trade receivables and wireless device financing plan receivables under the securitization program, which matures in July 2025 unless previously 
terminated. The lenders’ interest in the collection of these receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized. 
We have provided various credit enhancements in the form of over collateralization and subordination of our retained interests. The lenders have no further claim on our other assets if customers do not pay the amounts owed.
As of September 30, 2022, our loans secured by receivables was $1.2 billion in U.S. dollars ($1.6 billion in Canadian dollars) and the total receivable balance 
collateralized under the program was $3.2 billion. The foreign currency risk on these loans is managed using foreign currency forward contracts. See Note 13, Financial assets and liabilities, for additional details.
CREDIT FACILITIES
In Q3 2022, Bell Canada entered into a 30-year senior unsecured non-revolving credit facility in the aggregate principal amount of up to $443.5 million to partly fund the expansion of its broadband networks as part of government subsidy programs. No amount has yet been drawn under this facility. 
In addition, subsequent to quarter end, Bell Canada entered into a second 30-year senior unsecured non-revolving credit facility in the aggregate principal amount of up to $203 million also in order to partly fund the expansion of its broadband networks as part of government subsidy programs. No amount has yet been drawn under this facility.
Note 12  |  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 MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
DB pension  (48)(56)(145)(167)
DC pension  (27)(25)(91)(87)
OPEBs(1)(1)(1)(2)
Less:
Capitalized benefit plans cost15174854
Total post-employment benefit plans service cost(61)(65)(189)(202)
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING INCOME (COST)
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
 
DB pension 213638
OPEBs(8)(8)(25)(23)
Total net return (interest) on post-employment benefit plans13(5)38(15)
FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS
Notes to consolidatedfinancial statements
The following table shows the funded status of our post-employment benefit obligations.
FUNDEDPARTIALLY FUNDED (1)UNFUNDED (2)TOTAL
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, 
FOR THE PERIOD ENDED20222021202220212022202120222021
Present value of post-employment benefit obligations(18,675)(23,872)(1,465)(1,840)(220)(289)(20,360)(26,001)
Fair value of plan assets23,26927,979407412––23,67628,391
Plan surplus (deficit)4,5944,107(1,058)(1,428)(220)(289)3,3162,390
Effect of asset limit(931)(652)––––(931)(652)
Post-employment benefit asset (liability)3,6633,455(1,058)(1,428)(220)(289)2,3851,738
(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.
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  51
In Q3 2022, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in Other comprehensive (loss) income of $563 million due to an increase in the present value of our post-employment benefit obligations of $552 million as a result of a decrease in the discount rate to 
5.1% at September 30, 2022, compared to 5.3% at June 30, 2022, a decrease in the fair value of plan assets of $66 million as a result of a lower-than-
expected return on plan assets of 0.5% and experience losses of $247 million, partly offset by a decrease in the effect of the asset limit of $302 million.
During the first nine months of 2022, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in Other comprehensive (loss) income of $670 million due to a decrease in the present value of our post-employment benefit obligations of $5,560 million as a result of an increase in the discount rate to 5.1% at September 30, 2022, compared to 3.2% at December 31, 2021, partly offset by a decrease in the fair value of plan assets of $4,380 million as a result of a loss on plan assets of 13.3%, an increase in the effect of the asset limit of $263 million and experience losses of $247 million.
Note 13  |  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, 2022DECEMBER 31, 2021
CARRYING FAIR  CARRYING FAIR  
CLASSIFICATIONFAIR VALUE METHODOLOGYVALUEVALUEVALUEVALUE
CRTC deferral account obligationTrade payables and other Present value of estimated future cash flows discounted using observable market interest rates51516667
liabilities and other non-current liabilities
Debt securities and other debt Debt due within one year and long-term debtQuoted market price of debt24,12221,73123,72926,354
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 
CLASSIFICATIONASSET (LIABILITY)(LEVEL 1)(LEVEL 2) (1)(LEVEL 3) (2)
September 30, 2022        
Publicly-traded and privately-held investments (3)Other non-current assets17614–162
Derivative financial instrumentsOther current assets, trade payables and other liabilities, other non-current assets and liabilities336–336–
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability (4) Trade payables and other liabilities(149)––(149)
OtherOther non-current assets and liabilities130–179(49)
December 31, 2021    
Publicly-traded and privately-held investments (3) Other non-current assets18324–159
Derivative financial instrumentsOther current assets, trade payables and other liabilities, other non-current assets and liabilities279–279–
MLSE financial liability (4) Trade payables and other liabilities(149)––(149)
OtherOther non-current assets and liabilities122–185(63)
 
(1)  Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates. (2)  Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 
financial instruments. 
(3)  Unrealized gains and losses are recorded in Other comprehensive (loss) income in the statements of comprehensive income and are reclassified from Accumulated other comprehensive income to 
Deficit in the statements of financial position when realized.
(4)  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 income statements.
Notes to consolidatedfinancial statements
MARKET RISKCURRENCY EXPOSURESWe use forward contracts, options and cross currency interest rate swaps to manage foreign currency risk related to anticipated purchases and 
certain foreign currency debt. 
In Q1 2022, we entered into cross currency interest rate swaps with a total notional amount of $750 million in U.S. dollars ($954 million in Canadian dollars) to hedge the U.S. currency exposure of our US-7 Notes maturing in 2052. See Note 11, Debt, for additional details.
A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a loss of $10 million (loss of $9 million) 
recognized in net earnings at September 30, 2022 and a gain of $142 million (loss of $126 million) recognized in Other comprehensive (loss) income at 
September 30, 2022, with all other variables held constant. 
52  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippine peso would result in a gain (loss) of $4 million recognized 
in Other comprehensive (loss) income at September 30, 2022, with all other variables held constant.
The following table provides further details on our outstanding foreign currency forward contracts and options as at September 30, 2022. 
BUY  AMOUNT  SELL  AMOUNT  
TYPE OF HEDGECURRENCYTO RECEIVECURRENCYTO PAYMATURITYHEDGED ITEM
Cash flow (1)USD1,200CAD1,6062022Loans
Cash flowUSD1,025CAD1,3532022Commercial paper
Cash flowUSD220CAD2802022Anticipated purchases
Cash flowPHP590CAD142022Anticipated purchases
Cash flowPHP2,147CAD502023Anticipated purchases
Cash flowUSD796CAD9892023Anticipated purchases
Cash flowUSD524CAD6562024Anticipated purchases
Cash flow – call optionsUSD40CAD522022Anticipated purchases
Cash flow – put optionsUSD40CAD512022Anticipated purchases
EconomicUSD6CAD72022Anticipated purchases
EconomicUSD156CAD1962023Anticipated purchases
Economic – call optionsUSD38CAD452022Anticipated purchases
Economic – call optionsCAD47USD382022Anticipated purchases
Economic – put optionsUSD120CAD1472022Anticipated purchases
Economic – call optionsCAD225USD1562023Anticipated purchases
Economic – put options USD156CAD1962023Anticipated purchases
Economic – call options CAD225USD1562024Anticipated purchases
Economic – put optionsUSD156CAD1952024Anticipated purchases
(1)  Forward contracts to hedge loans secured by receivables under our securitization program. See Note 11, Debt, for additional information.
INTEREST RATE EXPOSURESIn Q2 2022, we sold interest rate swaptions maturing in Q3 2022 with a notional amount of $750 million for $6 million to hedge economically the fair value of our Series M-53 MTN debentures. In Q3 2022, swaptions of a notional amount of $500 million were exercised at a loss of $7 million and the remaining swaptions of a notional amount of $250 million matured unexercised. The resulting interest rate swaps of a notional amount of $500 million mature in 2027 and have been designated to hedge the fair value of our Series M-53 MTN debentures. The fair value of these interest rate swaps at September 30, 2022 is a liability of $12 million recognized in Other current assets, Trade payables and other liabilities and Other non-current liabilities in the statements of financial position. 
In Q3 2022, we sold interest rate swaptions maturing in Q4 2022 with a notional amount of $250 million for $3 million to hedge economically the fair value of our Series M-53 MTN debentures. The fair value of these interest rate swaptions at September 30, 2022 was a liability of $3 million recognized in Other current assets and Trade payables and other liabilities in the statements of financial position. 
In 2022, we entered into cross currency basis rate swaps maturing in 2023 with a notional amount of $638 million to hedge economically the basis rate exposure on future debt issuances. The fair value of these cross currency basis rate swaps at September 30, 2022 was a liability of $25 million recognized in Trade payables and other liabilities and Other non-current liabilities in the statements of financial position.
We use leveraged interest rate options to hedge economically the dividend rate resets on $582 million of our preferred shares which had varying reset dates in 2021 for the periods ending in 2026. The fair value of these leveraged interest rate options at September 30, 2022 and December 31, 2021 was a liability of $1 million and $2 million, respectively, recognized in Trade payables and other liabilities and Other non-current liabilities in the statements of financial position. A loss of $1 million and a gain of $1 million for the three and nine months ended September 30, 2022, respectively, relating to these leveraged interest rate options is recognized in Other (expense) income in the income statements. 
A 1% increase (decrease) in interest rates would result in a loss of $33 million and a (gain of $29 million) recognized in net earnings at September 30, 2022, with all other variables held constant. 
A 0.1% increase (decrease) in cross currency basis swap rates would result in a gain (loss) of $9 million recognized in net earnings at September 30, 2022, with all other variables held constant.
EQUITY PRICE EXPOSURESWe use equity forward contracts on BCE’s common shares to hedge economically the cash flow exposure related to the settlement of equity settled share-based compensation plans. The fair value of our equity forward contracts at September 30, 2022 and December 31, 2021 was a net liability of $70 million and a net asset of $130 million, respectively, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the statements of financial position. A loss of $74 million and $80 million for the three and nine months ended September 30, 2022, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the income statements. 
Notes to consolidatedfinancial statements
A 5% increase (decrease) in the market price of BCE’s common shares would result in a gain (loss) of $32 million recognized in net earnings at September 30, 2022, with all other variables held constant.
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  53
Note 14  |  Share capital
CONVERSION AND DIVIDEND RATE RESET OF PREFERRED SHARESOn September 1, 2022, 1,067,517 of BCE’s 11,397,196 fixed-rate Cumulative Redeemable First Preferred Shares, Series AA (Series AA Preferred Shares) were 
converted, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AB (Series AB Preferred Shares). In addition, on the same date, 1,977,982 of BCE’s 8,599,204 Series AB Preferred Shares were converted, on a one-for-one basis, into Series AA Preferred Shares.
The annual fixed dividend rate on BCE’s Series AA Preferred Shares was reset for the next five years, effective September 1, 2022, at 4.94%. The Series 
AB Preferred Shares will continue to pay a monthly floating cash dividend.
REDEMPTION OF SERIES AO PREFERRED SHARESOn March 31, 2022, BCE redeemed its 4,600,000 issued and outstanding Cumulative Redeemable First Preferred Shares, Series AO (Series AO Preferred Shares) with a stated capital of $118 million for a total cost of $115 million. The remaining $3 million was recorded to contributed surplus.
RENEWAL OF NORMAL COURSE ISSUER BID FOR BCE FIRST PREFERRED SHARESSubsequent to quarter end, on November 2, 2022, BCE’s Board of Directors authorized the company to renew its 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, 2022 to November 8, 2023, or an earlier date should BCE complete its purchases under the NCIB.
Note 15  |  Share-based paymentsThe following share-based payment amounts are included in the income statements as operating costs. 
THREE MONTHSNINE MONTHS
FOR THE PERIOD ENDED SEPTEMBER 302022202120222021
Employee savings plan(8)(7)(22)(23)
Restricted share units (RSUs) and performance share units (PSUs)(13)(13)(59)(46)
Other (1)–(2)(3)(5)
Total share-based payments(21)(22)(84)(74)
(1)  Includes deferred share units and stock options.
The following tables summarize the change in outstanding RSUs/PSUs and stock options for the period ended September 30, 2022.
RSUs/PSUs
NUMBER OF  
RSUs/PSUs
Outstanding, January 1, 20223,085,667
Granted1,015,425
Dividends credited 123,994
Settled(1,047,350)
Forfeited (78,157)
Outstanding, September 30, 20223,099,579
 
STOCK OPTIONS
NUMBER OF WEIGHTED AVERAGE
OPTIONSEXERCISE PRICE ($)
Outstanding, January 1, 202210,778,72460
Notes to consolidatedfinancial statements
Exercised (1)(2,923,759)58
Forfeited or expired(23,624)65
Outstanding, September 30, 20227,831,34161
Exercisable, September 30, 20224,568,42158
(1)  The weighted average market share price for options exercised during the nine months ended September 30, 2022 was $69. 
54  |  BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT
Note 16  | CommitmentsThe following table is a summary of our contractual obligations at September 30, 2022 that are due in 2022 and in each of the next four years and thereafter.
20222023202420252026THEREAFTERTOTAL
Commitments for property, plant and equipment and intangible assets3961,6601,0958084071,1335,499
Purchase obligations1625574384275581,2473,389
Leases committed not yet commenced636––116
Proposed acquisition of Distributel Communications Limited (Distributel)28520–30––335
Total8492,2401,5391,2659652,3819,239
Our commitments for property, plant and equipment and intangible assets include program and feature film rights and investments to expand and update our networks to meet customer demand. 
Purchase obligations consist of contractual obligations under service and product contracts for operating expenditures and other purchase obligations. 
Our commitments for leases not yet commenced include OOH advertising spaces, fibre use and real estate. These leases are non-cancellable.
On September 2, 2022, Bell announced it plans to acquire Distributel, a national independent communications provider offering a wide range of consumer, business and wholesale communications services. The transaction is valued at up to $335 million, based on the achievement of certain performance objectives. The transaction is expected to close by the end of the year, subject to closing conditions, including regulatory approvals. The acquisition of Distributel is expected to support Bell’s strategy to grow residential and business customers. The results of Distributel will be included in our Bell Wireline segment.
Subsequent to quarter end, our commitments for property, plant and equipment and intangible assets increased by $499 million, which are payable $50 million in 2022, $104 million in 2023, $108 million in 2024, $102 million in 2025, $92 million in 2026 and $43 million thereafter.
2021On July 29, 2021, provisional spectrum licence winners in the 3500 MHz spectrum auction were announced by Innovation, Science and Economic Development Canada (ISED). Bell Mobility Inc. (Bell Mobility) secured the right to acquire 271 licences in a number of urban and rural markets for 678 million Megahertz per Population (MHz-Pop) of 3500 MHz spectrum for $2.07 billion. On August 13, 2021, Bell Mobility made the required deposit of $415 million 
to ISED, which is included in Other non-current assets on our consolidated statement of financial position at September 30, 2021. On September 22, 2021, ISED delayed the payment for the remaining balance due to an extension related to ISED’s Consultation on Amendments to SRSP-520, Technical Requirements for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz. This consultation addressed issues regarding the technical specifications for use of 3500 MHz spectrum, primarily around major airports. The remaining balance was paid in Q4 2021.
Note 17  | COVID-19 
During the third quarter of 2022, the unfavourable effects of the COVID-19 pandemic on our financial and operating performance continued to moderate due to our operational execution and lifting of most of the government restrictions during the quarter. However, due to uncertainties relating to the severity and duration of the COVID-19 pandemic and possible further resurgences in the number of COVID-19 cases, including as a result of the potential emergence of other variants, and various potential outcomes, it is difficult at this time to estimate the impacts of the COVID-19 pandemic on our business. Our business and financial results could continue to be unfavourably impacted, and could again become more significantly and negatively impacted, in future periods, including, among others, as a result of global supply chain challenges adversely affecting our wireless and wireline product revenues.
 
Notes to consolidatedfinancial statements
BCE InC. 2022 ThIrd QuarTEr SharEholdEr rEporT  |  55