Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure Of Financial Assets And Liabilities [Line Items]

Summary of Consolidated Financial Assets and Financial Liabilities

The following table sets forth our consolidated financial assets and financial liabilities as at December 31, 2017 and 2016:  

	Cash and cash equivalents		Loans and receivables		HTM investments		Financial instruments at FVPL			Derivatives used for hedging		Available- for-sale financial investments		Financial liabilities carried at amortized cost			Total financial assets and liabilities
	(in million pesos)
Assets as at December 31, 2017
Noncurrent:
Available-for-sale financial investments		—		—		—		—			—		15,165		—			15,165
Investment in debt securities and other long- term    investments – net of current portion		—		—		150		—			—		—		—			150
Derivative financial assets – net of current portion		—		—		—		—			215		—		—			215
Advances and other noncurrent assets –    net of current portion		—		13,855		—		—			—		—		—			13,855
Current:
Cash and cash equivalents		32,905		—		—		—			—		—		—			32,905
Short-term investments		—		1,074		—		—			—		—		—			1,074
Trade and other receivables		—		33,761		—		—			—		—		—			33,761
Current portion of derivative financial assets		—		—		—		—			171		—		—			171
Current portion of investment in debt    securities and other long-term investments		—		100		—		—			—		—		—			100
Current portion of advances and other noncurrent    assets		—		6,824		—		—			—		—		—			6,824
Total assets		32,905		55,614		150		—			386		15,165		—			104,220
Liabilities as at December 31, 2017
Noncurrent:
Interest-bearing financial liabilities – net of current    portion		—		—		—		—			—		—		157,654			157,654
Derivative financial    liabilities – net of current portion		—		—		—		—			8		—		—			8
Customers’ deposits		—		—		—		—			—		—		2,443			2,443
Deferred credits and other noncurrent liabilities		—		—		—		—			—		—		5,680			5,680
Current:
Accounts payable		—		—		—		—			—		—		58,490			58,490
Accrued expenses and other current liabilities		—		—		—		—			—		—		70,648			70,648
Current portion of interest-bearing financial    liabilities		—		—		—		—			—		—		14,957			14,957
Dividends payable		—		—		—		—			—		—		1,575			1,575
Current portion of derivative financial liabilities		—		—		—		90			51		—		—			141
Total liabilities		—		—		—		90			59		—		311,447			311,596
Net assets (liabilities)		32,905		55,614		150		(90	)		327		15,165		(311,447	)		(207,376	)
Assets as at December 31, 2016
Noncurrent:
Available-for-sale financial investments		—		—		—		—			—		12,189		—			12,189
Investment in debt securities and other long-    term investments – net of current portion		—		224		150		—			—		—		—			374
Derivative financial assets – net of current portion		—		—		—		—			499		—		—			499
Advances and other noncurrent assets – net of    current portion		—		9,152		—		—			—		—		—			9,152
Current:
Cash and cash equivalents		38,722		—		—		—			—		—		—			38,722
Short-term investments		—		2,736		—		2			—		—		—			2,738
Trade and other receivables		—		24,436		—		—			—		—		—			24,436
Current portion of derivative financial assets		—		—		—		66			176		—		—			242
Current portion of investment in debt    securities and other long-term investments		—		124		202		—			—		—		—			326
Current portion of advances and other noncurrent    assets		—		7,916		—		—			—		—		—			7,916
Total assets		38,722		44,588		352		68			675		12,189		—			96,594
Liabilities as at December 31, 2016
Noncurrent:
Interest-bearing financial liabilities – net of    current portion		—		—		—		—			—		—		151,759			151,759
Derivative financial liabilities – net of current    portion		—		—		—		—			2		—		—			2
Customers’ deposits		—		—		—		—			—		—		2,431			2,431
Deferred credits and other noncurrent liabilities		—		—		—		—			—		—		13,720			13,720
Current:
Accounts payable		—		—		—		—			—		—		50,975			50,975
Accrued expenses and other current liabilities		—		—		—		—			—		—		74,868			74,868
Current portion of interest-bearing financial    liabilities		—		—		—		—			—		—		33,273			33,273
Dividends payable		—		—		—		—			—		—		1,544			1,544
Current portion of derivative financial liabilities		—		—		—		16			209		—		—			225
Total liabilities		—		—		—		16			211		—		328,570			328,797
Net assets (liabilities)		38,722		44,588		352		52			464		12,189		(328,570	)		(232,203	)

Summary of Consolidated Offsetting of Financial Assets and Liabilities

The following table sets forth our consolidated offsetting of financial assets and liabilities recognized as at December 31, 2017 and 2016:  

	Gross amounts of recognized financial assets and liabilities		Gross amounts of recognized financial assets and liabilities set-off in the statement of financial position		Net amount presented in the statement of financial position
	(in million pesos)
December 31, 2017
Current Financial Assets
Trade and other receivables
Foreign administrations		8,536		2,957		5,579
Domestic carriers		4,332		3,950		382
Total		12,868		6,907		5,961
Current Financial Liabilities
Accounts payable
Suppliers and contractors		54,220		24		54,196
Carriers and other customers		7,426		4,943		2,483
Total		61,646		4,967		56,679
December 31, 2016
Current Financial Assets
Trade and other receivables
Foreign administrations		9,391		4,200		5,191
Domestic carriers		15,555		15,335		220
Total		24,946		19,535		5,411
Current Financial Liabilities
Accounts payable
Suppliers and contractors		46,857		37		46,820
Carriers and other customers		5,311		1,446		3,865
Total		52,168		1,483		50,685

Summary of Consolidated Carrying Values and Fair Values of Financial Assets and Liabilities

The following table sets forth our consolidated carrying values and estimated fair values of our financial assets and liabilities recognized as at December 31, 2017 and 2016 other than those whose carrying amounts are reasonable approximations of fair values:  

	Carrying Value				Fair Value
	2017		2016		2017		2016
	(in million pesos)
Noncurrent Financial Assets
Investment in debt securities and other long-term investments		150		374		151		377
Advances and other noncurrent assets		13,855		9,152		13,695		7,743
Total		14,005		9,526		13,846		8,120
Noncurrent Financial Liabilities
Interest-bearing financial liabilities:
Long-term debt		157,654		151,759		150,918		146,654
Customers’ deposits		2,443		2,431		1,700		1,879
Deferred credits and other noncurrent liabilities		5,680		13,720		5,093		12,457
Total		165,777		167,910		157,711		160,990

Summary of Consolidated Financial Assets and Liabilities Carried at Fair Value

Below are the list of our consolidated financial assets and liabilities carried at fair value that are classified using a fair value hierarchy as required for our complete sets of consolidated financial statements as at December 31, 2017 and 2016.  This classification provides a reasonable basis to illustrate the nature and extent of risks associated with those financial statements.  

	2017						2016
	Level 1(1)		Level 2(2)		Total		Level 1(1)		Level 2(2)		Total
	(in million pesos)
Noncurrent  Financial Assets
Available-for-sale financial investments: Listed    equity securities		12,977		—		12,977		10,173		—		10,173
Derivative financial assets – net of current portion		—		215		215		—		499		499
Current Financial Assets
Short-term investments		—		—		—		—		2		2
Current portion of derivative financial assets		—		171		171		—		242		242
Total		12,977		386		13,363		10,173		743		10,916
Noncurrent Financial Liabilities
Derivative financial liabilities		—		8		8		—		2		2
Current Financial Liabilities
Derivative financial liabilities		—		141		141		—		225		225
Total		—		149		149		—		227		227

⁽¹⁾ Fair values determined using observable market inputs that reflect quoted prices in active markets for identical assets or liabilities.

⁽²⁾ Fair values determined using inputs other than quoted market prices that are either directly or indirectly observable for the assets or liabilities.

Summary of Derivative Financial Instruments

The table below sets out the information about our consolidated derivative financial instruments as at December 31, 2017 and 2016:

											2017					2016
	Original Notional Amount		Trade Date	Underlying Transaction in U.S. Dollar	Termination Date	Weighted Average Hedge Cost			Weighted Average Foreign Exchange Rate in Php		Notional		Net Mark-to-market Gains (Losses)			Notional		Net Mark-to-market Gains (Losses)
	(in millions)			(in millions)					(in millions)
Transactions not    designated as hedges:
PLDT
Long-term currency    swaps	US$262		2001 and 2002	300 Notes 2017	March 6, 2017		3.42	%		49.85	US$—		Php—			US$202		Php–
Forward foreign    Exchange contracts		158	Various dates in 2015 and 2016	U.S. dollar liabilities	Various dates in 2016		—			48.50		—		—			—		—
		34	Various dates in 2017	U.S. dollar liabilities	Various dates in 2017		—			50.18		—		—			—		—
		27	Various dates in 2017	U.S. dollar liabilities	January 2018		—			50.57		27		(15	)		—		—
		29	Various dates in November and December 2017	U.S. dollar liabilities	February 2018		—			50.95		29		(24	)		—		—
		2	Various dates in 2018	U.S. dollar liabilities	February 2018		—			49.84		—		—			—		—
Smart
Forward foreign    exchange contracts		107	Various dates in 2015 and 2016	U.S. dollar liabilities	Various dates in 2016		—			46.96		—		—			—		—
		91	Various dates in 2016 and 2017	U.S. dollar liabilities	Various dates in 2017		—			49.54		—		—			48		50
		46	Various dates in 2017	U.S. dollar liabilities	Various dates in 2018		—			51.22		46		(49	)		—		—
		4	Various dates in January 2018	U.S. dollar liabilities	Various dates in 2018		—			50.68		—		—			—		—
Foreign exchange    options	5(a)		August 10, 2016	U.S. dollar liabilities	November 14, 2016		—			46.82		—		—			—		—
										46.90		—		—			—		—
										47.98		—		—			—		—
	59(b)		Various dates in 2016 and 2017	U.S. dollar liabilities	Various dates in 2017		—			49.60		—		—		11		4
										50.30		—		—			—		—
										51.24		—		—			—		—
	3(c)		Various dates in 2017	U.S. dollar liabilities	Various dates in 2018		—			50.70		3		(2	)		—		—
										51.67		—		—			—		—
										52.53		—		—			—		—
	1(d)		January 19, 2018	U.S. dollar liabilities	July 19, 2018		—			50.45		—		—			—		—
										51.30		—		—			—		—
										52.30		—		—			—		—
DMPI
Interest rate swaps		54	October 7, 2008	59 loan facility	March 31, 2017		3.88	%		—		—		—			3		(2	)
		47	October 7, 2008	51 loan facility	June 30, 2017		3.97	%		—		—		—			3		(3	)
													(Php90		)			Php 49
Transactions designated a    hedges:
PLDT
Interest rate swaps(e)		30	January 23, 2015	150 term loan	March 7, 2017		2.11	%		—	US$–		Php–			US$8		Php–
		240	Various dates in 2013 and 2015	300 term loan	January 16, 2018		2.17	%		—		33		2			100		9
		100	August 2014	100 PNB	August 11, 2020		3.46	%		—		97		5			98		(50	)
		50	September 2014	50 Metrobank	September 2, 2020		3.47	%		—		49		—			49		(29	)
		150	April and June 2015	200 term loan	February 25, 2022		2.70	%		—		150		26			150		(34	)
Long-term currency    swaps(f)		140	October 2015 to June 2016	300 term loan	January 16, 2018		2.20	%		46.67		31		88			94		230
		4	January 2017	100 PNB	August 11, 2020		1.01	%		49.79		3		2			—		—
		6	April and June 2017	200 Bank of Tokyo	August 26, 2019		1.63	%		49.51		6		—			—		—
		2	January 2018	200 Bank of Tokyo	August 26, 2019		1.59	%		49.86		—		—			—		—
		6	February 2018	200 Bank of Tokyo	February 26, 2020		1.82	%		51.27		—		—			—		—
Smart
Interest rate swaps(g)		45	May 8, 2013	60 Bank of Tokyo	June 6, 2016		1.53	%		—		—		—			—		—
		38	May 9, 2013	50 FEC	August 19, 2016		1.43	%		—		—		—			—		—
		44	May 16, 2013	50 Bank of Tokyo	May 30, 2017		1.77	%		—		—		—			6		1
		110	Various dates in 2013 and 2014	120 term loan	June 20, 2018		2.22	%		—		15		3			45		9
		85	Various dates in 2014 and 2015	100 Bank of Tokyo	March 7, 2019		2.23	%		—		29		8			49		6
		50	October 2, 2014	50 Mizuho	May 14, 2019		2.58	%		—		17		4			28		—
		200	Various dates in 2015	200 Mizuho	March 4, 2020		2.10	%		—		111		51			156		39
		30	February 2016	100 Mizuho	December 7, 2021		2.03	%		—		24		23			30		22
Long-term currency    swaps(h)		100	Various dates in 2015	200 Mizuho	March 5, 2018		2.21	%		46.66		20		58			60		155
		45	Various dates in 2016	100 Mizuho	December 7, 2018		1.93	%		46.55		18		58			36		107
		11	Various dates in 2017	80 CBC	May 31, 2018		1.28	%		49.66		4		1			—		—
		8	Various dates in 2017	2015 Mizuho US$100 term loan	December 7, 2020		1.60	%		50.60		8		(2	)		—		—
		4	Various dates in 2018	2015 Mizuho US$100 term loan	December 7, 2020		1.62	%		51.89		—		—			—		—
		10	Various dates in 2018	2015 Mizuho US$200 term loan	March 4, 2020		1.96	%		51.77		—		—			—		—
														327					465
													Php 237					Php 514

^(a) If the Philippine peso to U.S. dollar spot exchange rate on the maturity date settles between Php46.90 to Php47.98, Smart will purchase the U.S. dollar for Php46.90.  However, if on maturity, the exchange rate settles above Php47.98, Smart will purchase the U.S. dollar for Php46.90 plus the excess above Php47.98, and if the exchange rate is lower than Php46.90, Smart will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate, subject to a floor of Php46.82.

^(b) If the Philippine peso to U.S. dollar spot exchange rate on the maturity date settles between Php50.30 to Php51.24, Smart will purchase the U.S. dollar for Php50.30.  However, if on maturity, the exchange rate settles above Php51.24, Smart will purchase the U.S. dollar for Php50.30 plus the excess above Php51.24, and if the exchange rate is lower than Php50.30, Smart will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate, subject to a floor of Php49.60.

^(c) If the Philippine peso to U.S. dollar spot exchange rate on the maturity date settles between Php51.67 to Php52.53, Smart will purchase the U.S. dollar for Php51.67.  However, if on maturity, the exchange rate settles above Php52.53, Smart will purchase the U.S. dollar for Php51.67 plus the excess above Php52.53, and if the exchange rate is lower than Php51.670, Smart will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate, subject to a floor of Php50.70.

^(d) If the Philippine peso to U.S. dollar spot exchange rate on the maturity date settles between Php51.30 to Php52.30, Smart will purchase the U.S. dollar for Php51.30.  However, if on maturity, the exchange rate settles above Php52.30, Smart will purchase the U.S. dollar for Php51.30 plus the excess above Php52.30, and if the exchange rate is lower than Php51.30, Smart will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate, subject to a floor of Php50.45.

^(e) PLDT’s interest rate swap agreements outstanding as at December 31, 2017 and 2016 were designated as cash flow hedges, wherein the effective portion of the movements in fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements.  The mark-to-market gains amounting to Php44 million and losses amounting to Php81 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2017 and 2016, respectively.  Interest accrual on the interest rate swaps amounting to Php11 million and Php23 million were recorded as at December 31, 2017 and 2016, respectively.  There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2017 and 2016.

^(f) PLDT’s long-term principal only-currency swap agreements entered into in 2015 to 2017 were designated as cash flow hedges, wherein effective portion of the movements in the fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements.  The mark-to-market gains amounting to Php108 million and Php275 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2017 and 2016, respectively.  Hedge cost accrual on the long-term principal only-currency swaps amounting to Php18 million and Php45 million were recognized as at December 31, 2017 and 2016, respectively.  The amounts recognized as other comprehensive income are transferred to profit or loss when the hedged loan is revalued for changes in the foreign exchange rate.  The ineffective portion of the movements in the fair value amounting to Php3 million and Php8 million were recognized in our consolidated income statements for the years ended December 31, 2017 and 2016, respectively.

^(g) Smart’s interest rate swap agreements outstanding as at December 31, 2017 and 2016 were designated as cash flow hedges, wherein the effective portion of the movements in fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements.  The mark-to-market gains amounting to Php85 million and Php79 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2017 and 2016, respectively.  Reduction on interest arising from the interest rate swaps amounting to Php4 million and addition on interest arising from the interest rate swaps amounting to Php2 million as at December 31, 2017 and 2016, respectively.  There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2017 and 2016.

^(h) Smart’s long-term principal only-currency swap agreements outstanding as at December 31, 2017 and 2016 were designated as cash flow hedges, wherein the effective portion of the movements in fair value is recognized in our consolidated statements of other comprehensive income, while any ineffective portion is recognized immediately in our consolidated income statements.  The mark-to-market gains amounting to Php124 million and Php284 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2017 and 2016, respectively.  Hedge cost accrual on the long-term principal only-currency swaps amounting to Php9 million and Php22 million were recognized as at December 31, 2017 and 2016, respectively.  The amounts recognized as other comprehensive income are transferred to profit or loss when the hedged loan is revalued for changes in the foreign exchange rate.  The ineffective portions of the movements in the fair value amounting to Php4 million and Php9 million was recognized in our consolidated income statements for the years ended December 31, 2017 and 2016, respectively.

Summary of Derivative Financial Instruments by Classification

	2017			2016
	(in million pesos)
Presented as:
Noncurrent assets		215			499
Current assets		171			242
Noncurrent liabilities		(8	)		(2	)
Current liabilities		(141	)		(225	)
Net assets		237			514

Summary of Movements of Consolidated Mark-to-Market Gains (Losses)

Movements of our consolidated mark-to-market gains for the years ended December 31, 2017 and 2016 are summarized as follows:

	2017			2016
	(in million pesos)
Net mark-to-market gains (losses) at beginning of the year		514			(871	)
Gains on derivative financial instruments (Note 4)		724			1,539
Effective portion recognized in the profit or loss for the    cash flow hedges		(55	)		(371	)
Net fair value gains (losses) on cash flow hedges charged    to other comprehensive income		(411	)		76
Settlements, interest expense and others		(535	)		141
Net mark-to-market gains at end of the year		237			514

Summary of Analysis of Gains (Losses) on Derivative Financial Instruments

Our consolidated analysis of gains on derivative financial instruments for the years ended December 31, 2017, 2016 and 2015 are as follows:

	2017			2016			2015
	(in million pesos)
Gains on derivative financial instruments		724			1,539			781
Hedge costs		(191	)		(543	)		(361	)
Net gains on derivative financial instruments (Note 5)		533			996			420

Summary of Maturity Profile of Financial Assets Based on Consolidated Undiscounted Claims Outstanding

The following table discloses a summary of maturity profile of our financial assets based on our consolidated undiscounted claims outstanding as at December 31, 2017 and 2016:  

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2017
Cash equivalents		26,554		26,554		—		—		—
Loans and receivables:		70,337		56,260		11,175		2,739		163
Advances and other noncurrent assets		20,901		6,824		11,175		2,739		163
Short-term investments		1,074		1,074		—		—		—
Investment in debt securities and other long-term    investments		100		100		—		—		—
Retail subscribers		17,961		17,961		—		—		—
Corporate subscribers		9,641		9,641		—		—		—
Foreign administrations		6,517		6,517		—		—		—
Domestic carriers		457		457		—		—		—
Dealers, agents and others		13,686		13,686		—		—		—
HTM investments:		150		—		150		—		—
Investment in debt securities and other long-term    investments		150		—		150		—		—
Available-for-sale financial investments		15,165		—		—		—		15,165
Total		112,206		82,814		11,325		2,739		15,328
December 31, 2016
Cash equivalents		32,338		32,338		—		—		—
Loans and receivables:		63,586		54,000		4,951		4,483		152
Advances and other noncurrent assets		17,278		7,916		4,727		4,483		152
Short-term investments		2,736		2,736		—		—		—
Investment in debt securities and other long-term    investments		348		124		224		—		—
Retail subscribers		20,290		20,290		—		—		—
Corporate subscribers		9,333		9,333		—		—		—
Foreign administrations		5,819		5,819		—		—		—
Domestic carriers		354		354		—		—		—
Dealers, agents and others		7,428		7,428		—		—		—
HTM investments:		352		202		—		150		—
Investment in debt securities and other long-term    investments		352		202		—		150		—
Financial instruments at FVPL:		2		2		—		—		—
Short-term investments		2		2		—		—		—
Available-for-sale financial investments		12,189		—		1,000		—		11,189
Total		108,467		86,542		5,951		4,633		11,341

Summary of Maturity Profile of Financial Liabilities Based on Consolidated Contractual Undiscounted Obligations Outstanding

The following table discloses a summary of maturity profile of our financial liabilities based on our consolidated contractual undiscounted obligations outstanding as at December 31, 2017 and 2016:  

	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2017
Debt(1):		213,597		3,285		70,552		48,958		90,802
Principal		173,136		3,251		51,254		37,925		80,706
Interest		40,461		34		19,298		11,033		10,096
Lease obligations:		20,666		11,871		3,851		2,266		2,678
Operating lease		20,666		11,871		3,851		2,266		2,678
Other obligations:		128,729		120,556		5,907		264		2,002
Derivative financial liabilities(2):		111		85		26		—		—
Forward foreign exchange contracts		56		56		—		—		—
Long-term currency swap		35		27		8		—		—
Interest rate swap		18		—		18		—		—
Long-term foreign currency options		2		2		—		—		—
Various trade and other obligations:		128,618		120,471		5,881		264		2,002
Suppliers and contractors		59,776		54,196		5,339		241		—
Utilities and related expenses		44,007		43,984		22		1		—
Liability from redemption of preferred shares		7,870		7,870		—		—		—
Employee benefits		6,573		6,573		—		—		—
Customers’ deposits		2,443		—		419		22		2,002
Carriers and other customers		2,083		2,083		—		—		—
Dividends		1,575		1,575		—		—		—
Others		4,291		4,190		101		—		—
Total contractual obligations		362,992		135,712		80,310		51,488		95,482
December 31, 2016
Debt(1):		223,130		21,883		64,751		51,414		85,082
Principal		185,663		21,138		46,931		40,886		76,708
Interest		37,467		745		17,820		10,528		8,374
Lease obligations:		18,456		10,734		3,581		1,972		2,169
Operating lease		18,456		10,734		3,581		1,972		2,169
Other obligations:		134,057		117,717		1,793		12,593		1,954
Derivative financial liabilities(2):		247		106		141		—		—
Interest rate swap		147		6		141		—		—
Long-term currency swap		100		100		—		—		—
Various trade and other obligations:		133,810		117,611		1,652		12,593		1,954
Suppliers and contractors		60,494		46,820		1,113		12,561		—
Utilities and related expenses		40,166		40,118		48		—		—
Liability from redemption of preferred shares		7,883		7,883		—		—		—
Employee benefits		6,191		6,191		—		—		—
Customers’ deposits		2,431		—		445		32		1,954
Carriers and other customers		2,422		2,422		—		—		—
Dividends		1,544		1,544		—		—		—
Others		12,679		12,633		46		—		—
Total contractual obligations		375,643		150,334		70,125		65,979		89,205

⁽¹⁾ Consists of long-term debt, including current portion; gross of unamortized debt discount and debt issuance costs.

⁽²⁾ Gross liabilities before any offsetting application.

Summary of Future Minimum Lease Commitments Payable with Non-cancellable Operating Leases

Our consolidated future minimum lease commitments payable with non-cancellable operating leases as at December 31, 2017 and 2016 are as follows:  

	2017		2016
	(in million pesos)
Within one year		11,945		10,911
After one year but not more than five years		6,043		5,376
More than five years		2,678		2,169
Total		20,666		18,456

Summary of Maximum Exposure to Credit Risk

The table below shows the maximum exposure to credit risk for the components of our consolidated statements of financial position, including derivative financial instruments as at December 31, 2017 and 2016:

	2017
	Gross Maximum Exposure		Collateral and Other Credit Enhancements*		Net Maximum Exposure
	(in million pesos)
Cash and cash equivalents		32,905		235		32,670
Loans and receivables:
Advances and other noncurrent assets		20,679		—		20,679
Short-term investments		1,074		—		1,074
Investment in debt securities and other long-term    investments		100		—		100
Retail subscribers		9,183		48		9,135
Corporate subscribers		6,337		220		6,117
Foreign administrations		5,579		—		5,579
Domestic carriers		382		—		382
Dealers, agents and others		12,280		1		12,279
HTM investments:
Investment in debt securities and other long-term    investments		150		—		150
Available-for-sale financial investments		15,165		—		15,165
Derivatives used for hedging:
Long-term currency swap		240		—		240
Interest rate swap		146		—		146
Total		104,220		504		103,716

^* Includes bank insurance, security deposits and customer deposits.  We have no collateral held as at December 31, 2017.

	2016
	Gross Maximum Exposure		Collateral and Other Credit Enhancements*		Net Maximum Exposure
	(in million pesos)
Cash and cash equivalents		38,722		270		38,452
Loans and receivables:
Advances and other noncurrent assets		17,068		—		17,068
Short-term investments		2,736		—		2,736
Investment in debt securities and other long-term    investments		348		—		348
Retail subscribers		7,702		46		7,656
Corporate subscribers		5,506		188		5,318
Foreign administrations		5,191		—		5,191
Domestic carriers		220		—		220
Dealers, agents and others		5,817		1		5,816
HTM investments:
Investment in debt securities and other long-term    investments		352		—		352
Financial instruments at FVPL:
Forward foreign exchange contracts		54		—		54
Short-term currency swaps		12		—		12
Short-term investments		2		—		2
Available-for-sale financial investments		12,189		—		12,189
Derivatives used for hedging:
Long-term currency swap		559		—		559
Interest rate swap		116		—		116
Total		96,594		505		96,089

^* Includes bank insurance, security deposits and customer deposits.  We have no collateral held as at December 31, 2016.

Summary of Information Regarding Credit Quality by Class of Financial Assets

The table below provides information regarding the credit quality by class of our financial assets according to our credit ratings of counterparties as at December 31, 2017 and 2016:  

			Neither past due nor impaired				Past due but
	Total		Class A(1)		Class B(2)		not impaired		Impaired
	(in million pesos)
December 31, 2017
Cash and cash equivalents		32,905		32,705		200		—		—
Loans and receivables:		70,337		34,939		9,647		11,028		14,723
Advances and other noncurrent assets		20,901		19,202		1,474		3		222
Short-term investments		1,074		1,074		—		—		—
Investment in debt securities and other long-term    investments		100		100		—		—		—
Retail subscribers		17,961		2,984		4,919		1,280		8,778
Corporate subscribers		9,641		2,035		2,233		2,069		3,304
Foreign administrations		6,517		838		872		3,869		938
Domestic carriers		457		76		73		233		75
Dealers, agents and others		13,686		8,630		76		3,574		1,406
HTM investments:		150		150		—		—		—
Investment in debt securities and other long-term    investments		150		150		—		—		—
Available-for-sale financial investments		15,165		15,079		86		—		—
Derivatives used for hedging:		386		386		—		—		—
Long-term currency swap		240		240		—		—		—
Interest rate swaps		146		146		—		—		—
Total		118,943		83,259		9,933		11,028		14,723
December 31, 2016
Cash and cash equivalents		38,722		36,902		1,820		—		—
Loans and receivables:		63,586		26,762		8,180		9,646		18,998
Advances and other noncurrent assets		17,278		15,312		1,751		5		210
Short-term investments		2,736		2,736		—		—		—
Investment in debt securities and other long-term    investments		348		348		—		—		—
Retail subscribers		20,290		2,770		3,639		1,293		12,588
Corporate subscribers		9,333		888		1,202		3,416		3,827
Foreign administrations		5,819		910		1,382		2,899		628
Domestic carriers		354		103		56		61		134
Dealers, agents and others		7,428		3,695		150		1,972		1,611
HTM investments:		352		352		—		—		—
Investment in debt securities and other long-term    investments		352		352		—		—		—
Financial instruments at FVPL(3):		68		68		—		—		—
Forward foreign exchange contracts		54		54		—		—		—
Short-term currency swaps		12		12		—		—		—
Short-term investments		2		2		—		—		—
Available-for-sale financial investments		12,189		10,197		1,992		—		—
Derivatives used for hedging:		675		675		—		—		—
Long-term currency swap		559		559		—		—		—
Interest rate swaps		116		116		—		—		—
Total		115,592		74,956		11,992		9,646		18,998

⁽¹⁾ This includes low risk and good paying customer accounts with no history of account treatment for a defined period and no overdue accounts as at report date; and deposits or placements to counterparties with good credit rating or bank standing financial review.

⁽²⁾ This includes medium risk and average paying customer accounts with no overdue accounts as at report date, and new customer accounts for which sufficient credit history has not been established; and deposits or placements to counterparties not classified as Class A.

Summary of Aging Analysis of Past Due But not Impaired Class of Financial Assets

The aging analysis of past due but not impaired class of financial assets as at December 31, 2017 and 2016 are as follows:  

					Past due but not impaired
	Total		Neither past due nor impaired		1-60 days		61-90 days		Over 91 days		Impaired
	(in million pesos)
December 31, 2017
Cash and cash equivalents		32,905		32,905
Loans and receivables:		70,337		44,586		3,261		703		7,064		14,723
Advances and other noncurrent assets		20,901		20,676		—		—		3		222
Short-term investments		1,074		1,074		—		—		—		—
Investment in debt securities and other    long-term investments		100		100		—		—		—		—
Retail subscribers		17,961		7,903		927		20		333		8,778
Corporate subscribers		9,641		4,268		724		267		1,078		3,304
Foreign administrations		6,517		1,710		646		217		3,006		938
Domestic carriers		457		149		84		53		96		75
Dealers, agents and others		13,686		8,706		880		146		2,548		1,406
HTM investments:		150		150		—		—		—		—
Investment in debt securities and other    long-term investments		150		150		—		—		—		—
Available-for-sale financial investments		15,165		15,165		—		—		—		—
Derivatives used for hedging:		386		386		—		—		—		—
Long-term currency swap		240		240		—		—		—		—
Interest rate swaps		146		146		—		—		—		—
Total		118,943		93,192		3,261		703		7,064		14,723
December 31, 2016
Cash and cash equivalents		38,722		38,722		—		—		—		—
Loans and receivables:		63,586		34,942		4,095		602		4,949		18,998
Advances and other noncurrent assets		17,278		17,063		—		—		5		210
Short-term investments		2,736		2,736		—		—		—		—
Investment in debt securities and other    long-term investments		348		348		—		—		—		—
Retail subscribers		20,290		6,409		1,106		41		146		12,588
Corporate subscribers		9,333		2,090		1,333		353		1,730		3,827
Foreign administrations		5,819		2,292		730		156		2,013		628
Domestic carriers		354		159		48		2		11		134
Dealers, agents and others		7,428		3,845		878		50		1,044		1,611
HTM investments:		352		352		—		—		—		—
Investment in debt securities and other    long-term investments		352		352		—		—		—		—
Financial instruments at FVPL:		68		68		—		—		—		—
Forward foreign exchange contracts		54		54		—		—		—		—
Short-term currency swaps		12		12		—		—		—		—
Short-term investments		2		2		—		—		—		—
Available-for-sale financial investments		12,189		12,189		—		—		—		—
Derivatives used for hedging:		675		675		—		—		—		—
Long-term currency swap		559		559		—		—		—		—
Interest rate swaps		116		116		—		—		—		—
Total		115,592		86,948		4,095		602		4,949		18,998

Foreign currency exchange risk [Member]

Disclosure Of Financial Assets And Liabilities [Line Items]

Summary of Market Risk

The following table shows our consolidated foreign currency-denominated monetary financial assets and liabilities and their Philippine peso equivalents as at December 31, 2017 and 2016:

	2017				2016
	U.S. Dollar		Php(1)		U.S. Dollar		Php(2)
	(in millions)
Noncurrent Financial Assets
Investment in debt securities and other long term    investments		—		1		7		348
Derivative financial assets – net of current portion		4		215		10		499
Advances and other noncurrent assets – net of current    portion		—		2		—		18
Total noncurrent financial assets		4		218		17		865
Current Financial Assets
Cash and cash equivalents		440		21,988		419		20,847
Short-term investments		2		75		55		2,720
Trade and other receivables – net		218		10,893		158		7,853
Current portion of derivative financial assets		3		171		5		242
Current portion of investment in debt securities    and other long-term investments		2		100		—		—
Current portion of advances and other noncurrent assets		—		9		—		8
Total current financial assets		665		33,236		637		31,670
Total Financial Assets		669		33,454		654		32,535
Noncurrent Financial Liabilities
Interest-bearing financial liabilities – net of current    portion		446		22,285		680		33,831
Derivative financial liabilities – net of current portion		—		8		—		2
Other noncurrent liabilities		—		11		—		5
Total noncurrent financial liabilities		446		22,304		680		33,838
Current Financial Liabilities
Accounts payable		233		11,670		191		9,477
Accrued expenses and other current liabilities		166		8,314		171		8,513
Current portion of interest-bearing financial liabilities		259		12,922		496		24,671
Current portion of derivative financial liabilities		3		141		5		225
Total current financial liabilities		661		33,047		863		42,886
Total Financial Liabilities		1,107		55,351		1,543		76,724

⁽¹⁾ The exchange rate used to convert the U.S. dollar amounts into Philippine peso was Php49.96 to US$1.00, the Philippine peso-U.S. dollar exchange rate as quoted through the Philippine Dealing System as at December 31, 2017.

⁽²⁾ The exchange rate used to convert the U.S. dollar amounts into Philippine peso was Php49.77 to US$1.00, the Philippine peso-U.S. dollar exchange rate as quoted through the Philippine Dealing System as at December 31, 2016.

Interest rate risk [Member]

Disclosure Of Financial Assets And Liabilities [Line Items]

Summary of Market Risk

The following tables set out the carrying amounts, by maturity, of our financial instruments that are expected to have exposure on interest rate risk as at December 31, 2017 and 2016.  Financial instruments that are not subject to interest rate risk were not included in the table.

As at December 31, 2017

	In U.S. Dollars																		Fair Value
	Below 1 year		1-2 years		2-3 years		3-5 years		Over 5 years		Total		In Php		Discount/ Debt Issuance Cost In Php		Carrying Value In Php		In U.S. Dollar		In Php
															(in millions)
Assets:
Investment in Debt Securities    and Other Long-term    Investments
U.S. Dollar		2		—		—		—		—		2		100		—		100		2		100
Interest rate	3.5000%			—		—		—		—		—		—		—		—		—		—
Philippine Peso		—		—	3			—		—		3		150		—		150		3		151
Interest rate		—		—	4.8371%			—		—		—		—		—		—		—		—
Cash in Bank
U.S. Dollar	29			—		—		—		—		29		1,465		—		1,465		29		1,465
Interest rate	0.0100% to 0.2500%			—		—		—		—		—		—		—		—		—		—
Philippine Peso	89			—		—		—		—		89		4,468		—		4,468		89		4,468
Interest rate	0.05000% to 1.2500%			—		—		—		—		—		—		—		—		—		—
Other Currencies		—		—		—		—		—		—		9		—		9		—		9
Interest rate	0.1000% to 0.5000%			—		—		—		—		—		—		—		—		—		—
Temporary Cash Investments
U.S. Dollar		402		—		—		—		—		402		20,063		—		20,063		402		20,063
Interest rate	0.2500% to 2.1000%			—		—		—		—		—		—		—		—		—		—
Philippine Peso		130		—		—		—		—		130		6,491		—		6,491		130		6,491
Interest rate	0.1250% to 4.3250%			—		—		—		—		—		—		—		—		—		—
Short-term Investments
U.S. Dollar		22		—		—		—		—		22		1,074		—		1,074		22		1,074
Interest rate	2.1000%			—		—		—		—		—		—		—		—		—		—
Philippine Peso		—		—		—		—		—		—		—		—		—		—		—
Interest rate		—		—		—		—		—		—		—		—		—		—		—
		674		—		3		—		—		677		33,820		—		33,820		677		33,821
Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Fixed Loans		5		37		8		11		—		61		3,050		6		3,044	62			3,104
Interest rate	1.4100%		1.4100% to 2.8850%		2.8850%		2.8850%			—		—		—		—		—		—		—
Philippine Peso		—		333		81		618		1,565		2,597		129,733		335		129,398		2,450		122,418
Interest rate		—	3.9000% to 6.4044%		3.9000% to 6.4044%		3.9000% to 6.4044%		3.9000% to 6.4044%			—		—		—		—		—		—
Variable Rate
U.S. Dollar		60		266		203		65		50		644		32,158	170			31,988	644			32,158
Interest rate	1.2000% to 1.6000% over LIBOR		USLIBOR + 0.7900% to 1.4500%		USLIBOR + 0.7900% to 1.4500%		USLIBOR + 0.7900% to 1.4500%		USLIBOR + 1.0500%			—		—		—		—		—		—
Philippine Peso		—		3		95		66		—		164		8,195		14		8,181	164			8,195
Interest rate		—	1.000% over PDST-R2		1.000% over PDST-R2		1.000% over PDST-R2			—		—		—		—		—		—		—
		65		639		387		760		1,615		3,466		173,136		525		172,611		3,320		165,875

As at December 31, 2016

	In U.S. Dollars																					Fair Value
	Below 1 year			1-2 years		2-3 years		3-5 years			Over 5 years			Total		In Php		Discount/ Debt Issuance Cost In Php		Carrying Value In Php		In U.S. Dollar		In Php
																		(in millions)
Assets:
Investment in Debt    Securities and Other    Long-term Investments
U.S. Dollar		3			4		—		—			—			7		348		—		348		7		350
Interest rate	4.0000%			3.5000% to 4.0000%			—		—			—			—		—		—		—		—		—
Philippine Peso		4			—		—		3			—			7		352		—		352		7		353
Interest rate	4.2180% to 4.2500%				—		—		4.8400	%		—			—		—		—		—		—		—
Cash in Bank
U.S. Dollar		17			—		—		—			—			17		850		—		850		17		850
Interest rate	0.0100% to 0.5000%				—		—		—			—			—		—		—		—		—		—
Philippine Peso		73			—		—		—			—			73		3,652		—		3,652		73		3,652
Interest rate	0.0010% to 1.6250%				—		—		—			—			—		—		—		—		—		—
Other Currencies		1			—		—		—			—			1		22		—		22		1		22
Interest rate	0.0100% to 0.5000%				—		—		—			—			—		—		—		—		—		—
Temporary Cash    Investments
U.S. Dollar		366			—		—		—			—			366		18,239		—		18,239		366		18,239
Interest rate	0.2500% to 4.7500%				—		—		—			—			—		—		—		—		—		—
Philippine Peso		283			—		—		—			—			283		14,099		—		14,099		283		14,099
Interest rate	0.1250% to 5.000%				—		—		—			—			—		—		—		—		—		—
Short-term Investments
U.S. Dollar		55			—		—		—			—			55		2,738		—		2,738		55		2,738
Interest rate	1.6500% to 4.0000%				—		—		—			—			—		—		—		—		—		—
		802			4		—		3			—			809		40,300		—		40,300		809		40,303
Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Notes		228			—		—		—			—			228		11,366		4		11,362		233		11,606
Interest rate		8.3500	%		—		—		—			—			—		—		—		—		—		—
U.S. Dollar Fixed    Loans		5			42		9		15			4			75		3,726		20		3,706		77		3,813
Interest rate		1.9000	%	1.4100% to 2.8850%		1.4100% to 2. 8850%			2.8850	%		2.8850	%		—		—		—		—		—		—
Philippine Peso		153			59		287		405			1,485			2,389		118,881		303		118,578		2,267		112,818
Interest rate	5.2854% to 5.5808%			3.9000% to 6.2600%		3.9000% to 6.2600%		3.9000% to 6.2600%			3.9000% to 6.2600%				—		—		—		—		—		—
Variable Rate
U.S. Dollar		39			440		100		241			52			872		43,410		286		43,124		872		43,410
Interest rate	0.3000% to 1.6000% over LIBOR			0.7900% to 1.6000% over LIBOR		0.7900% to 1.4500% over LIBOR		0.7900% to 1.4500% over LIBOR			0.7900% to 1.0500% over LIBOR				—		—		—		—		—		—
Philippine Peso		—			3		2		161			—			166		8,280		18		8,262		166		8,280
Interest rate		—		BSP overnight rate to 1.0000% over PDST-R2		BSP overnight rate to 1.0000% over PDST-R2		BSP overnight rate to 1.0000% over PDST-R2				—			—		—		—		—		—		—
		425			544		398		822			1,541			3,730		185,663		631		185,032		3,615		179,927