Table:
|  | 2019 | 2018 |
| --- | --- | --- |
| Net earnings | 3,253 | 2,973 |
| Severance, acquisition and other costs | 114 | 136 |
| Depreciation | 3,496 | 3,145 |
| Amortization | 902 | 869 |
| Finance costs |  |  |
| Interest expense | 1,132 | 1,000 |
| Interest on post-employment benefit obligations | 63 | 69 |
| Other expense | 13 | 348 |
| Income taxes | 1,133 | 995 |
| Adjusted EBITDA | 10,106 | 9,535 |
| BCE operating revenues | 23,964 | 23,468 |
| Adjusted EBITDA margin | 42.2% | 40.6% |
Paragraphs:
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.
We define adjusted EBITDA as operating revenues less operating costs as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in Note 3, Segmented information, in BCE’s 2019 consolidated financial statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.
We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA is also one component in the determination of short-term incentive compensation for all management employees.
Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.
Question:
How is adjusted EBITDA margin defined?
Answer: adjusted EBITDA divided by operating revenues