SEGMENTED INFORMATION

12 Months Ended

Dec. 31, 2019

ACCOUNTING POLICY

Reportable segments

We determine our reportable segments based on, among other things, how our chief operating decision maker, the Chief Executive Officer and Chief Financial Officer of RCI, regularly review our operations and performance. They review adjusted EBITDA as the key measure of profit for the purpose of assessing performance of each segment and to make decisions about the allocation of resources, as they believe adjusted EBITDA reflects segment and consolidated profitability. Adjusted EBITDA is defined as income before depreciation and amortization; (gain) loss on disposition of property, plant and equipment; restructuring, acquisition and other; finance costs; other expense (income); and income tax expense.

We follow the same accounting policies for our segments as those described in the notes to our consolidated financial statements. We account for transactions between reportable segments in the same way we account for transactions with external parties, but eliminate them on consolidation.

USE OF ESTIMATES AND JUDGMENTS

JUDGMENTS

We make significant judgments in determining our operating segments. These are components that engage in business activities from which they may earn revenue and incur expenses, for which operating results are regularly reviewed by our chief operating decision makers to make decisions about resources to be allocated and assess component performance, and for which discrete financial information is available.

EXPLANATORY INFORMATION

Our reportable segments are Wireless, Cable, and Media (see note 1). All three segments operate substantially in Canada. Corporate items and eliminations include our interests in businesses that are not reportable operating segments, corporate administrative functions, and eliminations of inter-segment revenue and costs. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

INFORMATION BY SEGMENT



Year ended December 31, 2019	Note	Wireless	Cable	Media	Corporate items and eliminations		Consolidated totals
Year ended December 31, 2019
(In millions of dollars)

Revenue	5	9,250	3,954	2,072	(203	)	15,073
Operating costs	6	4,905	2,035	1,932	(11	)	8,861

Adjusted EBITDA		4,345	1,919	140	(192	)	6,212

Depreciation and amortization	7, 8, 9						2,488
Restructuring, acquisition and other	10						139
Finance costs	11						840
Other income	12						(10	)

Income before income tax expense							2,755

Capital expenditures ¹	7, 29	1,320	1,153	102	232		2,807
Goodwill	9	1,160	1,808	955	—		3,923
Total assets		20,105	7,891	2,550	6,473		37,019


¹	Includes proceeds on disposition of $38 million (see note 29).



Year ended December 31, 2018	Note	Wireless	Cable	Media	Corporate items and eliminations		Consolidated totals
Year ended December 31, 2018
(In millions of dollars)

Revenue	5	9,200	3,932	2,168	(204	)	15,096
Operating costs	6	5,110	2,058	1,972	(27	)	9,113

Adjusted EBITDA		4,090	1,874	196	(177	)	5,983

Depreciation and amortization	7, 8, 9						2,211
Gain on disposition of property, plant and equipment	7						(16	)
Restructuring, acquisition and other	10						210
Finance costs	11						793
Other income	12						(32	)

Income before income tax expense							2,817

Capital expenditures ¹	7, 29	1,086	1,429	90	185		2,790
Goodwill	9	1,160	1,808	937	—		3,905
Total assets		16,572	7,666	2,438	5,242		31,918

Includes proceeds on disposition of $25 million (see note 29).