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Note 4 Segmented information

Note 4 Segmented information

The accounting policies used in our segment reporting are the same as those we describe in Note 2, Significant accounting policies. 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. Accordingly, we operate and manage our segments as strategic business units organized by products and services. Segments negotiate sales with each other as if they were unrelated parties.

We measure the performance of each segment based on segment profit, which is equal to operating revenues less operating costs for the segment. We report severance, acquisition and other costs and depreciation and amortization by segment for external reporting purposes. Substantially all of our finance costs and other income (expense) are managed on a corporate basis and, accordingly, are not reflected in segment results.

Our operations and virtually all of our assets are located in Canada.

Our Bell Wireless segment provides wireless voice and data communication products and services to our residential, small and medium-sized business and large enterprise customers across Canada.

Our Bell Wireline segment provides data, including Internet access and Internet protocol television, local telephone, long distance, as well as other communications services and products to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec and the Atlantic provinces, while Satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers.

Our Bell Media segment provides conventional, specialty and pay TV, digital media, radio broadcasting services and OOH advertising services to customers nationally across Canada.

 

Segmented information

 

FOR THE YEAR ENDED DECEMBER 31, 2016

NOTE   BELL WIRELESS   BELL WIRELINE   BELL MEDIA   INTER-SEGMENT
ELIMINATIONS
  BCE  

Operating revenues

                       

External customers

    7,117   11,917   2,685     21,719  

Inter-segment

    42   187   396   (625 )  

Total operating revenues

    7,159   12,104   3,081   (625 ) 21,719  

Operating costs

5   (4,156 ) (7,062 ) (2,338 ) 625   (12,931 )

Segment profit(1)

    3,003   5,042   743     8,788  

Severance, acquisition and other costs

6   (6 ) (130 ) 1     (135 )

Depreciation and amortization

13, 14   (555 ) (2,816 ) (137 )   (3,508 )

Finance costs

                       

Interest expense

7                   (888 )

Interest on post-employment benefit obligations

22                   (81 )

Other income

8                   21

Income taxes

9                   (1,110 )

Net earnings

                    3,087  

Goodwill

17   2,304   3,831   2,823     8,958  

Indefinite-life intangible assets

14   3,663   1,640   2,640     7,943  

Capital expenditures

    733   2,936   102     3,771  

 

 

FOR THE YEAR ENDED DECEMBER 31, 2015

NOTE   BELL WIRELESS   BELL WIRELINE   BELL MEDIA   INTER-SEGMENT
ELIMINATIONS
  BCE  

Operating revenues

                       

External customers

    6,836   12,043   2,635     21,514  

Inter-segment

    40   215   339   (594 )  

Total operating revenues

    6,876   12,258   2,974   (594 ) 21,514  

Operating costs

5   (4,048 ) (7,258 ) (2,251 ) 594   (12,963 )

Segment profit(1)

    2,828   5,000   723     8,551  

Severance, acquisition and other costs

6   (16 ) (363 ) (67 )   (446 )

Depreciation and amortization

13, 14   (503 ) (2,785 ) (132 )   (3,420 )

Finance costs

                       

Interest expense

7                   (909 )

Interest on post-employment benefit obligations

22                   (110 )

Other expense

8                   (12 )

Income taxes

9                   (924 )

Net earnings

                    2,730  

Goodwill

17   2,303   3,491   2,583     8,377  

Indefinite-life intangible assets

14   3,597   1,685   2,652     7,934  

Capital expenditures

    716   2,809   101     3,626  

 

 

 

Revenues by services and products

 

FOR THE YEAR ENDED DECEMBER 31 2016   2015  
Services        
Wireless 6,602   6,246  
Data 6,791   6,590  
Local and access 3,089   3,271  
Long distance 741   831  
Media 2,685   2,635  
Other services 182   186  
Total Services 20,090   19,759  
Products        
Wireless 515   590  
Data 559   573  
Equipment and other 555   592  
Total Products 1,629   1,755  
Total operating revenues 21,719   21,514  
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