Discontinued operations

12 Months Ended

Dec. 31, 2020

Disclosure of analysis of single amount of discontinued operations [abstract]



Note 3			Discontinued operations

On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion.

We have reclassified amounts related to the sale for the previous year to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current year. Property, plant and equipment and intangible assets that were sold were no longer depreciated or amortized effective June 1, 2020.

In Q4 2020, we completed the sale for proceeds of $933 million (net of debt and other items) and recorded a gain on sale, net of taxes, of $211 million. The capital gain as a result of the sale is mainly offset by the recognition of previously unrecognized capital loss carry forwards.

The following table summarizes the carrying value of the assets and liabilities sold:


			2020





Contract assets			1

Contract costs			2
Property, plant and equipment			484
Intangible assets			227
Goodwill			115
Total assets sold			829







Long-term debt			113

Deferred tax liability			37
Other non-current liabilities			9
Total liabilities sold			159
Net assets sold			670

The following tables summarize the income statements and statements of cash flows of our discontinued operations up to the point of sale.


FOR THE YEAR ENDED DECEMBER 31	2020	2019
Operating revenues	118	171
Operating costs	(57)	(71)

Depreciation	(18)	(38)
Amortization	(7)	(16)
Interest expense	(6)	(7)


Other expense	(8)	(6)
Income taxes	(7)	(4)
Net earnings attributable to common shareholders before gain on sale	15	29
Gain on sale (net of taxes of $3 million)	211	—
Net earnings attributable to common shareholders	226	29


FOR THE YEAR ENDED DECEMBER 31	2020	2019
















Cash flows from operating activities	54	94





Cash flows from (used in) investing activities	892	(18)
Cash flows used in financing activities	(7)	(6)
Net increase in cash	939	70