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Notes to Consolidated Financial Statements



Adjusted EPS
Earnings per share before severance, acquisition and other costs, and net (gains) losses on investments.

Average revenue per unit expressed as a rate per month for the year.

Binomial Option Pricing Model
The binomial option pricing model is the financial model we use to calculate the weighted average fair value of a stock option granted using five key assumptions: stock dividend yield, expected stock volatility, risk-free interest rate, vesting period and expected life of the stock option.

Book Value per Share
Total equity attributable to BCE shareholders excluding preferred shares divided by the number of common shares outstanding.

Capital Intensity
Capital expenditures divided by operating revenues.

The rate at which existing subscribers cancel their services. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base.

Cost of Acquisition (COA)
COA is also referred to as subscriber acquisition costs. This measure is expressed per gross activation. It includes costs associated with acquiring a customer such as hardware subsidies, marketing and distribution costs.

A curtailment is a significant reduction in plan benefits that can result when a defined benefit pension plan is amended or restructured. Types of curtailments include a reduction in the expected number of years of future service of active employees or the elimination of the right to earn defined benefits for some or all of the future service of employees.

We define EBITDA as operating revenues less operating costs.

EBITDA divided by operating revenues.


Free Cash Flow
We define free cash flow as cash flows from operating activities, excluding acquisition costs paid, plus dividends/distributions received from Bell Aliant, less capital expenditures, preferred share dividends, dividends/distributions paid by subsidiaries to non-controlling interest and Bell Aliant free cash flow.

Goodwill may be created when we acquire a business. It is calculated by deducting the fair value of the net assets acquired from the consideration given, and represents the value of factors that contribute to greater earning power, such as a good reputation, customer loyalty or intellectual capital.

Market Capitalization
This is BCE’s common share price at the end of the year multiplied by the number of common shares outstanding.

Price to Book Ratio
BCE’s common share price at the end of the year divided by the book value per share.

Price to Cash Flow Ratio
BCE’s common share price at the end of the year divided by cash flow per common share. Cash flow per common share is cash flow from operating activities excluding interest on fund unit liability less capital expenditures, divided by the average number of common shares outstanding.

Price to Earnings Ratio
BCE’s common share price at the end of the year divided by earnings per share.

Return on Equity
Net earnings attributable to common shareholders divided by total average equity attributable to owners of the parent excluding preferred shares.

Total Debt to Total Assets
Total long-term debt (including debt due within one year) divided by total assets.

Total Debt to Total Equity
Total debt (excluding notes payable and bank advances) divided by total equity.



Thomas C. O’Neill, FCPA, FCA
Ontario, Canada
Chair of the Board,
BCE Inc. and Bell Canada
Director since January 2003

Barry K. Allen
Florida, United States
Operating Partner,
Providence Equity Partners LLC
Director since May 2009

André Bérard, O.C.
Québec, Canada
Corporate Director
Director since January 2003

Ronald A. Brenneman
Alberta, Canada
Corporate Director
Director since November 2003

Sophie Brochu
Québec, Canada
President and Chief Executive Officer,
Gaz Métro Inc.
Director since May 2010

Robert E. Brown
Québec, Canada Corporate Director
Director since May 2009

George A. Cope
Ontario, Canada
President and Chief Executive Officer,
BCE Inc. and Bell Canada
Director since July 2008

David F. Denison, FCPA, FCA
Ontario, Canada Corporate Director
Director since October 2012

Anthony S. Fell, O.C.
Ontario, Canada Corporate Director
Director since January 2002

The Honourable Edward C. Lumley, P.C.
Ontario, Canada Vice-Chairman,
BMO Capital Markets
Director since January 2003

The Honourable James Prentice, P.C., Q.C.
Alberta, Canada
Senior Executive Vice-President
and Vice-Chairman,
Canadian Imperial Bank of Commerce
Director since July 2011

Robert C. Simmonds
Ontario, Canada
Chairman, Lenbrook Corporation
Director since May 2011

Carole Taylor
British Columbia, Canada Corporate Director
Director since August 2010

Paul R. Weiss, FCPA, FCA
Ontario, Canada Corporate Director
Director since May 2009




EP.R. Weiss (Chair), A. Bérard, S. Brochu, D.F. Denison, A.S. Fell, J. Prentice, R.C. Simmonds

The audit committee assists the board in the oversight of:

  • the integrity of BCE Inc.’s financial statements and related information
  • BCE Inc.’s compliance with applicable legal and regulatory requirements
  • the independence, qualifications and appointment of the external auditor
  • the performance of both the external and internal auditors
  • management’s responsibility for assessing and reporting on the effectiveness of internal controls
  • BCE Inc.’s enterprise risk management processes.


EE.C. Lumley (Chair), R.A. Brenneman, R.E. Brown, D.F. Denison, C. Taylor, P.R. Weiss

The PFC assists the board in the oversight of:

  • the administration, funding and investment of BCE Inc.’s pension plans and fund
  • the unitized pooled fund sponsored by BCE Inc. for the collective investment of the fund and the participant subsidiaries’ pension funds.


ER.E. Brown (Chair), B.K. Allen, S. Brochu, E.C. Lumley, R.C. Simmonds

The CGC assists the board in:

  • developing and implementing BCE Inc.’s corporate governance guidelines
  • identifying individuals qualified to become members of the board
  • determining the composition of the board and its committees
  • determining the directors’ remuneration for board and committee service
  • developing and overseeing a process to assess the Chair of the board, the board, committees of the board, Chairs of committees and individual directors
  • reviewing and recommending for board approval BCE Inc.’s policies concerning business conduct, ethics, public disclosure of material information and other matters.


ER.A. Brenneman (Chair), B.K. Allen, A. Bérard, A.S. Fell, C. Taylor

The MRCC assists the board in the oversight of:

  • the compensation, nomination, evaluation and succession of officers and other management personnel
  • the health and safety policies and practices.



George A. Cope
President and Chief Executive Officer,
BCE Inc. and Bell Canada

Mirko Bibic
Executive Vice-President and Chief
Legal & Regulatory Officer,
BCE Inc. and Bell Canada

Charles W. Brown
President – The Source,
Bell Canada

Michael Cole
Executive Vice-President
and Chief Information Officer,
Bell Canada

Kevin W. Crull
President – Bell Media,
Bell Canada

Stephen Howe
Executive Vice-President and Chief
Technology Officer,
Bell Canada

Bernard le Duc
Executive Vice-President –
Corporate Services,
BCE Inc. and Bell Canada

Thomas Little
President – Bell Business Markets,
Bell Canada

Wade Oosterman
President – Bell Mobility
and Bell Residential Services
and Chief Brand Officer,
Bell Canada

Mary Ann Turcke
Executive Vice-President –
Field Operations,
Bell Canada

Martine Turcotte
Vice Chair – Québec,
BCE Inc. and Bell Canada

Siim A. Vanaselja
Executive Vice-President
and Chief Financial Officer,
BCE Inc. and Bell Canada

John Watson
Executive Vice-President –
Customer Operations,
Bell Canada





TSX and NYSE stock exchanges
You will find a summary of the differences between our governance practices and the NYSE corporate governance rules in the governance section of our website at

Common Shares Outstanding December 31, 2012 – 775,381,645

Quarterly Dividend*
$0.5825 per common share

2013 Dividend Schedule*

March 15, 2013April 15, 2013
June 14, 2013July 15, 2013
September 16, 2013October 15, 2013
December 16, 2013January 15, 2014

* Subject to dividends being declared by the board of directors

2013 Quarterly Earnings Release Dates

First quarterMay 9, 2013
Second quarterAugust 8, 2013
Third quarterNovember 7, 2013
Fourth quarterFebruary 6, 2014

Quarterly and annual reports as well as other corporate documents can be found on our website. Corporate documents can also be requested from the Investor Relations group.



Capital Gains on Your Shares

Shareholders are required to pay tax on dividends as well as any capital gains they realize when they sell their shares or are deemed to have sold them. If you received Nortel Networks common shares in May  2000 and/or Bell Aliant Regional Communications Income Fund units in July 2006, you should contact the Investor Relations group to learn more about the tax implications impact on your cost or visit


Since January 1, 2006 and unless stated otherwise, dividends paid by BCE Inc. to Canadian residents are eligible dividends as per the Canadian Income Tax Act. Since March 24, 2006 and unless stated otherwise, dividends paid by BCE Inc. to Québec residents also qualify as eligible dividends.


Dividends paid or credited to non-residents of Canada are subject to a 25% withholding tax unless reduced by treaty. Under current tax treaties, U.S. and U.K. residents are subject to a 15% withholding tax.

Beginning in 2012, the Canada Revenue Agency has introduced new rules requiring residents of any country with which Canada has a tax treaty to certify that they reside in that country and are eligible to have Canadian non-resident tax withheld on the payment of their dividends at the tax treaty rate. Registered shareholders should have completed the Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer and returned it to the transfer agent.


In addition to the Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer mentioned above, we are required to solicit taxpayer identification numbers and Internal Revenue Service (IRS) Form W-9 certifications of residency from certain U.S. residents. If these have not been received, we may be required to deduct the IRS’s specified backup withholding tax. For more information, please contact the transfer agent or the Investor Relations group.



Dividend Reinvestment and Stock Purchase Plan

The Plan provides a convenient method for eligible holders of common shares to reinvest their dividends and make optional cash contributions to purchase additional common shares without brokerage costs.

Dividend Direct Deposit Service

Avoid postal delays and trips to the bank by joining the dividend direct deposit service.

E-Delivery Service

Enrol in our e-delivery service to receive the proxy material, the annual report and/or quarterly reports by e-mail. By doing so, you will receive your documents faster and in an environmentally friendly manner while helping your company reduce printing and postage costs.

Manage Your Shareholder Account

Enrol to AnswerLine at and benefit from a wide variety of self-service tools to help track and manage your shares.

Duplicate Mailings

Help us control costs and eliminate duplicate mailings by consolidating your accounts.

For more details on any of these services, registered shareholders (shares are registered under your name) must contact the transfer agent. Non-registered shareholders must contact their brokers.



Transfer Agent and Registrar

For information on shareholder services or any other inquiries regarding your account (including stock transfer, address change, lost certificates and tax forms), contact:

Canadian Stock Transfer Company Inc.*
320 Bay Street, 3rd Floor
Toronto, Ontario M5H 4A6

tel 416-682-3861 or 1-800-561-0934
  (toll free in Canada and the U.S.)
fax 514-985-8843 or 1-888-249-6189
  (toll free in Canada and the U.S.)

Investor Relations

Building A, 8th Floor
1 Carrefour Alexander-Graham-Bell
Verdun, Québec H3E 3B3

tel 1-800-339-6353
fax 514-786-3970
  or visit the Investors section of our website at


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