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Note 13 Property, plant and equipment

Note 13 Property, plant and equipment

 

FOR THE YEAR ENDED DECEMBER 31, 2016

NOTE   NETWORK
INFRASTRUCTURE
AND EQUIPMENT
  LAND AND
BUILDINGS
  ASSETS UNDER
CONSTRUCTION
  TOTAL(1)  

COST

                   

January 1, 2016

    57,233   5,174   1,287   63,694  

Additions

    2,361   120   1,415   3,896  

Acquisition through business combinations

    32   282   1   315  

Transfers

    692   35   (1,325 ) (598 )

Retirements and disposals

    (1,637 ) (39 ) (4 ) (1,680 )

Impairment losses recognized in earnings

8   (1 )     (1 )

December 31, 2016

    58,680   5,572   1,374   65,626  

ACCUMULATED DEPRECIATION

                   

January 1, 2016

    39,183   2,881     42,064  

Depreciation

    2,672   205     2,877  

Retirements and disposals

    (1,591 ) (35 )   (1,626 )

Other

    (31 ) (4 )   (35 )

December 31, 2016

    40,233   3,047     43,280  

NET CARRYING AMOUNT

                   

January 1, 2016

    18,050   2,293   1,287   21,630  

December 31, 2016

    18,447   2,525   1,374   22,346  

 

 

FOR THE YEAR ENDED DECEMBER 31, 2015

NOTE   NETWORK
INFRASTRUCTURE
AND EQUIPMENT
  LAND AND
BUILDINGS
  ASSETS UNDER
CONSTRUCTION
  TOTAL(1)  

COST

                   

January 1, 2015

    54,968   5,100   1,427   61,495  

Additions

    2,145   68   1,525   3,738  

Acquisition through business combinations

    1       1  

Transfers

    1,112   44   (1,661 ) (505 )

Retirements and disposals

    (991 ) (38 ) (4 ) (1,033 )

Impairment losses recognized in earnings

8   (2 )   (2 )

December 31, 2015

    57,233   5,174   1,287   63,694  

ACCUMULATED DEPRECIATION

                   

January 1, 2015

    37,461   2,707     40,168  

Depreciation

    2,698   192     2,890  

Retirements and disposals

    (937 ) (24 )   (961 )

Other

    (39 ) 6   (33 )

December 31, 2015

    39,183   2,881     42,064  

NET CARRYING AMOUNT

                   

January 1, 2015

    17,507   2,393   1,427   21,327  

December 31, 2015

    18,050   2,293   1,287   21,630  

 

 

 

Finance leases

BCE’s significant finance leases are for satellites and office premises. The office leases have a typical lease term of 23 years. The leases for satellites, used to provide programming to our Bell TV customers, have a term of 15 years.

The following table shows additions to and the net carrying amount of assets under finance leases.

 

ADDITIONS

 

NET CARRYING AMOUNT 

 

FOR THE YEAR ENDED DECEMBER 31

2016   2015   2016   2015  

Network infrastructure and equipment

375   418   1,580   1,677  

Land and buildings

72   8   506   484  

Total

447   426   2,086   2,161  

The following table provides a reconciliation of our minimum future lease payments to the present value of our finance lease obligations.

AT DECEMBER 31, 2016

NOTE   2017   2018   2019   2020   2021   THERE-
AFTER
  TOTAL  

Minimum future lease payments

24   568   514   328   265   253   1,050   2,978  

Less:

                               

Future finance costs

    (133 ) (117 ) (104 ) (90 ) (76 ) (198 ) (718 )

Present value of future lease obligations

    435   397   224   175   177   852   2,260  
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