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Notes to Consolidated Financial Statements

 


NOTE 15 | OTHER NON-CURRENT ASSETS 

 

FOR THE YEAR ENDED DECEMBER 31NOTE  2012   2011 
Post-employment benefit plan assets20 106  31 
AFS publicly-traded and privately-held investments  96  41 
Long-term notes and other receivables  41  49 
Westwinds campus held for sale7   57 
Derivative assets  219  203 
Other  175  248 
Total other non-current assets  637  629 

 


NOTE 16 | GOODWILL 

The following table provides details about the changes in the carrying amounts of goodwill for the years ended December 31, 2012 and 2011.

 NOTE BELL WIRELINE BELL WIRELESS BELL MEDIA BELL ALIANT CONSOLIDATED 
Balance at January 1, 2011  2,535 2,302  969 5,806 
Acquisitions and other  3  1,393  1,396 
Impairment7 (17)   (17)
Balance at December 31, 2011 and 2012  2,521 2,302 1,393 969 7,185 

 


NOTE 17 | TRADE PAYABLES AND OTHER LIABILITIES 

 

FOR THE YEAR ENDED DECEMBER 31NOTE  2012  2011 
Trade payables and accruals  2,028  2,088 
Compensation payable  608  578 
Deferred revenues  719  685 
Taxes payable  136  106 
Severance and other costs payable  51  115 
CRTC deferral account obligation22 53  63 
CRTC tangible benefits obligation22, 27 62  62 
Other current liabilities  258  380 
Total trade payables and other liabilities  3,915  4,077 

 


NOTE 18 | DEBT DUE WITHIN ONE YEAR 

 

FOR THE YEAR ENDED DECEMBER 31NOTE WEIGHTED AVERAGE
INTEREST RATE
  2012 2011 
Bank advances  2.67%221   
Notes payable  1.15%477  321 
Total bank advances and notes payable    698  321 
Loan secured by trade receivables  1.79%935  950 
Long-term debt due within one year(1)          
   Bell Canada  5.31%401  808 
   Bell Aliant  5.38%100  32 
     501  840 
   Net unamortized premium/discount    8  2 
   Unamortized debt issuance costs    (6)(7)
Total long-term debt due within one year19   503  835 
Total debt due within one year    2,136  2,106 

 

Restrictions

Some of the credit agreements:

  • require us to meet specific financial ratios
  • require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada.

We are in compliance with all conditions and restrictions.

Securitized Trade Receivables

The Bell Canada and Bell Aliant securitized trade receivables are recorded as floating rate revolving loans secured by certain trade receivables and expire on May 13, 2014 and November 30, 2016, respectively.

The following table provides further details on the securitized trade receivables.

FOR THE YEAR ENDED DECEMBER 31BELL CANADABELL ALIANT
2012  2011  2012  2011 
Average interest rate(1)1.82%1.88%1.51%1.58%
Pledged trade receivables2,058  2,125 181  187 

 

Bell Canada and Bell Aliant continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of the interests of Bell Canada and Bell Aliant, which means that Bell Canada and Bell Aliant are exposed to certain risks of default on the amounts securitized. Bell Canada and Bell Aliant have provided various credit enhancements in the form of overcollateralization and subordination of their retained interests.

The buyers will reinvest the amounts collected by buying additional interests in the Bell Canada and Bell Aliant trade receivables until the securitized trade receivables agreements expire. The buyers and their investors have no further claim on Bell Canada’s and Bell Aliant’s other assets if customers do not pay amounts owed.

Credit Facilities

Bell Canada and Bell Aliant may issue notes under their commercial paper programs up to the net available amount of their committed revolving bank credit facilities. The total amount of these committed revolving bank credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2012.

 TOTAL
AVAILABLE
 DRAWN LETTERS
OF CREDIT
 COMMERCIAL
PAPER
OUTSTANDING
 NET
AVAILABLE
 
Committed credit facilities          
   Bell Canada(1)          
       Revolving facility supporting commercial paper program2,500  280 475 1,745 
       Other53  6  47 
   Bell Aliant(1)          
       Revolving facility750 221 192  337 
       Other138  138   
Total committed credit facilities3,441 221 616 475 2,129 
Non-committed credit facilities          
   Bell Canada288  131  157 
   Bell Aliant18  1  17 
Total non-committed credit facilities306  132  174 
Total committed and non-committed credit facilities3,747 221 748 475 2,303 

 

In addition, Bell Canada has a $2,000 million three-year unsecured committed bank credit facility to be used exclusively to fund a portion of the proposed Astral Media Inc. (Astral) acquisition. See Note 25, Commitments and Contingencies.


NOTE 19 | LONG-TERM DEBT 

 

 NOTE WEIGHTED
AVERAGE
INTEREST RATE
 MATURITY  DECEMBER 31,
2012
 DECEMBER 31,
2011
 
Bell Canada            
   Debentures            
       1997 trust indenture  4.77%2014–2035 7,350  6,850 
       1976 trust indenture  9.59%2014–2054 1,250  1,250 
   Subordinated debentures  8.21%2026–2031 275  275 
   Finance leases  7.70%2013–2047 2,272  1,898 
   Other      227  266 
Total – Bell Canada      11,374  10,539 
CTV Specialty Television Inc.            
   Notes  6.08%2014 300  300 
   Finance leases  3.72%2014–2017 15  6 
Total – CTV Specialty Television Inc.      315  306 
Bell Aliant            
   Debentures, notes and bonds  5.40%2013–2037 2,632  2,636 
   Finance leases and other  4.40%2013–2017 58  55 
Total – Bell Aliant      2,690  2,691 
Total debt      14,379  13,536 
Net unamortized premium/discount      51  63 
Unamortized debt issuance costs      (41)(43)
Less:            
   Amount due within one year18     (503)(835)
Total long-term debt      13,886  12,721 


All debentures and subordinated debentures have been issued in Canadian dollars and bear a fixed rate of interest. Interest payments on debt which has a principal amount of $700 million have been swapped from fixed to floating. See Note 22, Financial and Capital Management for additional details.

Restrictions

Some of the debt agreements:

  • require us to meet specific financial ratios
  • impose covenants, maintenance tests and new issue tests
  • require us to make an offer to repurchase certain series of debentures upon the occurrence of a change of control event as defined in the relevant debt agreements.

We are in compliance with all conditions and restrictions.

Bell Canada

All outstanding debentures are issued under trust indentures and are unsecured. All debentures are issued in series and certain series are redeemable at Bell Canada’s option prior to maturity at the prices, times and conditions specified in each series.

On February 11, 2013, Bell Canada redeemed early its 10.0% Series EA debentures, issued under its 1976 trust indenture, having an outstanding principal amount of $150 million which was due on June 15, 2014. We incurred a $17 million charge for the premium costs on early redemption which will be included in Other income.

On June 18, 2012, Bell Canada issued 3.35% Series M-25 debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on June 18, 2019.

On December 15, 2011, Bell Canada repaid upon maturity its 6.90% Series M-12 debentures under its 1997 trust indenture, with an outstanding principal amount of $250 million.

On May 19, 2011, Bell Canada issued 3.65% Series M-23 debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on May 19, 2016, and 4.95% Series M-24 debentures under its 1997 trust indenture, with a principal amount of $500 million, which mature on May 19, 2021.

On March 16, 2011, Bell Canada issued 4.40% Series M-22 debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on March 16, 2018.

Finance Leases

A new satellite was placed in service on June 15, 2012. In the second quarter of 2012, Bell Canada recorded a finance lease obligation of $476 million and an asset of $572 million, including $96 million of capitalized launch and setup costs.

CTV Specialty Television Inc.

The CTV Specialty Television Inc. (CTV Specialty) notes and revolving credit facility are secured by all present and future assets of CTV Specialty and its wholly-owned subsidiaries. At December 31, 2012, the carrying value of CTV Specialty assets exceeded the amounts owing.

Bell Aliant

All outstanding debentures, notes and bonds are issued under trust indentures and are unsecured with the exception of Télébec, Limited Partnership’s debentures of $100 million, which are secured by a mortgage on a property located in the province of Québec. All debentures, notes and bonds are issued in series and certain series are redeemable at Bell Aliant’s option prior to maturity at the prices, times and conditions specified in each series.

On April 26, 2011, Bell Aliant issued 4.88% medium-term notes, with a principal amount of $300 million, which mature on April 26, 2018. The net proceeds were used to partially redeem early its 4.72% medium-term notes with a principal amount of $300 million. The remaining outstanding principal amount of $105 million was redeemed on September 26, 2011. We incurred a $4 million charge for the premium cost of early redemption which is included in Other income.

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