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6.0 FINANCIAL AND CAPITAL MANAGEMENT - 6.1 Net Debt

6 Financial and capital management

This section tells you how we manage our cash and capital resources to carry out our strategy and deliver financial results. It provides an analysis of our financial condition, cash flows and liquidity on a consolidated basis.

 

6.1 Net debt

 

 

DECEMBER 31, 2016   DECEMBER 31, 2015   $ CHANGE  

% CHANGE

 

Debt due within one year

4,887   4,895   (8 ) (0.2 %)

Long-term debt

16,572   15,390   1,182   7.7 %

Preferred shares(1)

2,002   2,002      

Cash and cash equivalents

(853 ) (613 ) (240 ) (39.2 %)

Net debt

22,608   21,674   934   4.3 %

 

The increase of $1,174 million in debt due within one year and long-term debt was due to:

  • the issuances of Series M-41 MTN, M-42 MTN and M-43 MTN debentures at Bell Canada with total principal amounts of $750 million, $850 million and $650 million, respectively
  • an increase in our notes payable (net of repayments) of $991 million

Partly offset by:

  • the early debt redemption of Series M-18 MTN, M-19 MTN, M-23 MTN and M-32 debentures in the principal amounts of $700 million, $200 million, $500 million and $500 million, respectively
  • the repayment of Series M-38 debentures in the principal amount of $150 million at Bell Canada
  • a net decrease of $17 million in our finance lease obligations and other debt

The increase in cash and cash equivalents of $240 million was due mainly to:

  • $3,226 million of free cash flow
  • $719 million of debt issuances (net of repayments)
  • $107 million decrease in investments which includes proceeds received from one of our equity investments from the sale of a portion of its operations

Partly offset by:

  • $2,305 million of dividends paid on BCE common shares
  • $517 million loan to Q9, a related party
  • $404 million paid for business acquisitions mainly related to the national expansion of HBO Canada and TMN ($197 million, net of $21 million paid in 2015) and $170 million ($158 million, net of cash on hand) consideration paid for the acquisition of Q9 Networks Inc.
  • $400 million voluntary DB pension plan contribution
  • $126 million acquisition and other costs paid
  • $106 million for the purchase on the open market of shares for the settlement of share-based payments
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