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Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018:

	Cash and cash equivalents			Financial instruments at amortized cost			Financial instruments at FVPL		Financial instruments at FVOCI		Total financial instruments
			(in million pesos)
Assets as at December 31, 2019
Noncurrent:
Financial assets at fair value through profit or loss		—			—			3,369		—		3,369
Derivative financial assets – net of current portion		—			—			1		—		1
Financial assets at fair value through other comprehensive income – net of current portion		—			—			—		162		162
Other financial assets – net of current portion		—			1,986			—		—		1,986
Current:
Cash and cash equivalents		24,369			—			—		—		24,369
Short-term investments		—			314			—		—		314
Trade and other receivables		—			22,436			—		—		22,436
Current portion of derivative financial assets		—			—			41		—		41
Current portion of debt instruments at amortized cost		—			150			—		—		150
Current portion of financial assets at fair value through other comprehensive income		—			—			—		2,757		2,757
Current portion of other financial assets		—			1,220			6,866		—		8,086
Total assets		24,369			26,106			10,277		2,919		63,671

Liabilities as at December 31, 2019
Noncurrent:
Interest-bearing financial liabilities – net of current portion		—			172,834			—		—		172,834
Lease liabilities – net of current portion		—			13,100			—		—		13,100
Derivative financial liabilities – net of current portion		—			—			25		—		25
Customers' deposits		—			2,205			—		—		2,205
Deferred credits and other noncurrent liabilities		—			2,179			—		—		2,179
Current:												—
Accounts payable		—			76,384			—		—		76,384
Accrued expenses and other current liabilities		—			73,303			7,851		—		81,154
Current portion of interest-bearing financial liabilities		—			19,722			—		—		19,722
Current portion of lease liabilities		—			3,215			—		—		3,215
Dividends payable		—			1,584			—		—		1,584
Current portion of derivative financial liabilities		—			—			88		—		88
Total liabilities		—			364,527			7,964		—		372,490
Net assets (liabilities)		24,369			(338,420	)		2,313		2,919		(308,819	)

	Cash and cash equivalents			Financial instruments at amortized cost			Financial instruments at FVPL		Financial instruments at FVOCI		Total financial instruments
			(in million pesos)
Assets as at December 31, 2018
Noncurrent:
Financial assets at fair value through profit or loss		—			—			4,763		—		4,763
Debt instruments at amortized cost		—			150			—		—		150
Derivative financial assets – net of current portion		—			—			140		—		140
Financial assets at fair value through other comprehensive income – net of current portion		—			—			—		2,749		2,749
Other financial assets – net of current portion		—			2,275			—		—		2,275
Current:
Cash and cash equivalents		51,654			—			—		—		51,654
Short-term investments		—			1,165			—		—		1,165
Trade and other receivables		—			24,056			—		—		24,056
Current portion of derivative financial assets		—			—			183		—		183
Current portion of financial assets at fair value through other comprehensive income		—			—			—		1,604		1,604
Current portion of other financial assets		—			175			6,833		—		7,008
Total assets		51,654			27,821			11,919		4,353		95,747

Liabilities as at December 31, 2018
Noncurrent:
Interest-bearing financial liabilities – net of current portion		—			155,835			—		—		155,835
Customers' deposits		—			2,194			—		—		2,194
Deferred credits and other noncurrent liabilities		—			3,088			—		—		3,088
Current:		—
Accounts payable		—			72,818			—		—		72,818
Accrued expenses and other current liabilities		—			68,920			7,862		—		76,782
Current portion of interest-bearing financial liabilities		—			20,441			—		—		20,441
Dividends payable		—			1,533			—		—		1,533
Current portion of derivative financial liabilities		—			—			80		—		80
Total liabilities		—			324,829			7,942		—		332,771
Net assets (liabilities)		51,654			(297,008	)		3,977		4,353		(237,024	)

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, 2019 and 2018:

	Gross amounts of recognized financial assets and liabilities		Gross amounts of recognized financial assets and liabilities set-off in the consolidated statements of financial position		Net amount presented in the consolidated statements of financial position
	(in million pesos)
December 31, 2019
Current Financial Assets
Trade and other receivables
Foreign administrations		5,857		4,338		1,519
Domestic carriers		1,018		219		799
Total		6,875		4,557		2,318
Current Financial Liabilities
Accounts payable
Suppliers and contractors		68,121		70		68,051
Carriers and other customers		11,437		3,706		7,731
Total		79,558		3,776		75,782

December 31, 2018
Current Financial Assets
Trade and other receivables
Foreign administrations		6,882		3,576		3,306
Domestic carriers		8,245		8,052		193
Total		15,127		11,628		3,499
Current Financial Liabilities
Accounts payable
Suppliers and contractors		69,144		45		69,099
Carriers and other customers		5,602		2,567		3,035
Total		74,746		2,612		72,134

Reconciliation of Carrying Amounts of Financial Instruments from Their Previous Classification Measurement Category

The following table sets forth our consolidated carrying values and estimated fair values of our financial assets and liabilities recognized as at December 31, 2019 and 2018 other than those whose carrying amounts are reasonable approximations of fair values:

	Carrying Value				Fair Value
	2019		2018		2019		2018
	(in million pesos)
Noncurrent Financial Assets
Debt instruments at amortized cost – net of current portion		—		150		—		148
Other financial assets – net of current portion		1,986		2,275		1,657		2,020
Total		1,986		2,425		1,657		2,168
Noncurrent Financial Liabilities
Interest-bearing financial liabilities:
Long-term debt – net of current portion		172,834		155,835		169,965		139,504
Customers' deposits		2,205		2,194		1,539		1,305
Deferred credits and other noncurrent liabilities		2,179		3,088		1,953		2,583
Total		177,218		161,117		173,457		143,392

Summary of Consolidated Financial Assets and Liabilities Carried at Fair Value

Below is 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, 2019 and 2018. This classification provides a reasonable basis to illustrate the nature and extent of risks associated with those financial statements.

	2019								2018
	Level 1⁽¹⁾		Level 2⁽²⁾		Level 3⁽³⁾		Total		Level 1⁽¹⁾		Level 2⁽²⁾		Level 3⁽³⁾		Total
	(in million pesos)
Noncurrent Financial Assets
Listed equity securities
Financial assets at FVPL		2,442		304		623		3,369		3,625		154		984		4,763
Derivative financial assets – net of current portion		—		1		—		1		—		140		—		140
Financial assets at FVOCI – net of current portion		—		162		—		162		—		2,749		—		2,749
Current Financial Assets
Current portion of derivative financial assets		—		41		—		41		—		183		—		183
Current portion of FVOCI		—		2,757		—		2,757		—		1,604		—		1,604
Current portion of other financial assets		—		6,866		—		6,866		—		6,833		—		6,833
Total		2,442		10,131		623		13,196		3,625		11,663		984		16,272

Noncurrent Financial Liabilities
Derivative financial liabilities – net of current portion		—		25		—		25		—		—		—		—
Current Financial Liabilities
Accrued expenses and other current liabilities		—		7,851		—		7,851		—		7,862		—		7,862
Current portion of derivative financial liabilities		—		88		—		88		—		80		—		80
Total		—		7,964		—		7,964		—		7,942		—		7,942

⁽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.

⁽³⁾

Fair values determined using discounted values of future cash flows 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, 2019 and 2018:

											2019					2018
	Original Notional Amount		Trade Date	Underlying Transaction in U.S. Dollar	Termination Date	Weighted Average Hedge Cost			Weighted Average Foreign Exchange Rate		Notional Amount		Net Mark- to- market Gains (Losses) in Php			Notional Amount		Net Mark- to- market Gains (Losses) in Php
	(in millions)			(in millions)							(in millions)
Transactions not designated as hedges:
PLDT
Forward foreign exchange contracts	US$114		Various dates in 2017 and 2018	U.S. Dollar Liabilities	Various dates in 2018		—		Php51.68			—		—			—		—
	US$22		Various dates in 2019	U.S. Dollar Liabilities	Various dates in January 2020 to April 2020		—		Php51.48		US$22			(12	)	US$34			(22	)
	EUR9		Various dates in August 2018	EUR Assets	December 14, 2018		—		US$1.17			—		—			—		—
	EUR11		Various dates in 2018	EUR Assets	December 14, 2018		—		Php62.95			—		—			—		—
	EUR5		Various dates in July and August 2019	EUR Assets	January 2020		—		Php58.65		EUR5			8			—		—
Foreign exchange options	EUR36	^(a)	Various dates in 2018	EUR Assets	Various dates in November and December 2018		—		EUR1.161			—		—			—		—
									EUR1.185
Smart
Forward foreign exchange contracts	US$120		Various dates in 2017 and 2018	U.S. Dollar Liabilities	Various dates in 2018		—		Php52.13			—		—			—		—
	US$144		Various dates in 2018 and 2019	U.S. Dollar Liabilities	Various dates in 2019		—		Php52.73			—		—		US$54			(38	)
	US$41		Various dates in 2019	U.S. Dollar Liabilities	Various dates in 2020		—		Php51.44		US$41			(22	)		—		—
	US$16		Various dates in January and March 2020	U.S. Dollar Liabilities	Various dates in March and May 2020		—		Php50.79			—		—			—		—
Foreign exchange options^(b)	US$4		Various dates in 2017 and 2018	U.S. Dollar Liabilities	Various dates in 2018		—		Php50.64			—		—			—		—
									Php51.58
									Php52.48
PCEV
Forward foreign exchange contracts	US$22		Various dates in 2019	U.S. Dollar Cash Conversion	Various dates in 2019		—		Php52.24			—		—					—
														(26	)				(60	)
Transactions designated as hedges:
PLDT
Interest rate swaps^(c)	US$240		Various dates in 2013 and 2015	300 Term Loan	January 16, 2018		2.17	%		—		—		—			—		—
	US$100		August 2014	100 PNB	August 11, 2020		3.46	%		—	US$95			(6	)	US$96			55
	US$50		September 2014	50 Metrobank	September 2, 2020		3.47	%		—	US$48			(5	)	US$48			25
	US$150		April and June 2015	200 Term Loan	February 25, 2022		2.70	%		—	US$56			2		US$79			66
Long-term currency swaps^(d)	US$140		October 2015 to June 2016	300 Term Loan	January 16, 2018		2.20	%	Php46.67			—		—			—		—
	US$4		January 2017	100 PNB	August 11, 2020		1.01	%	Php49.79		US$1			1		US$2			7
	US$6		April and June 2017	200 MUFG Bank, Ltd.	August 26, 2019		1.63	%	Php49.51			—		—		US$3			9
	US$2		January 2018	200 MUFG Bank, Ltd.	August 26, 2019		1.59	%	Php49.86			—		—		US$1			3
	US$6		February 2018	200 MUFG Bank, Ltd.	February 26, 2020		1.82	%	Php51.27		US$1			(2	)	US$5			6
	US$22		November 2018 to June 2019	200 MUFG Bank, Ltd.	February 25, 2022		2.28	%	Php52.08		US$17			(30	)	US$11			17
														(40	)				188

















Smart
Interest rate swaps^(e)	US$110		Various dates in 2013 and 2014	120 Term Loan	June 20, 2018		2.22	%		—		—		—			—		—
	US$85		Various dates in 2014 and 2015	100 Bank of Tokyo	March 7, 2019		2.23	%		—		—		—		US$10			3
	US$50		October 2, 2014	50 Mizuho	May 14, 2019		2.58	%		—		—		—		US$5			2
	US$200		Various dates in 2015	200 Mizuho	March 4, 2020		2.10	%		—	US$22			4		US$67			52
	US$30		February 2016	100 Mizuho	December 7, 2021		2.03	%		—	US$12			5		US$18			24
Long-term currency swaps^(f)	US$100		Various dates in 2015	200 Mizuho	March 5, 2018		2.21	%	Php46.66			—		—			—		—
	US$45		Various dates in 2016	100 Mizuho	December 7, 2018		1.93	%	Php46.55			—		—			—		—
	US$11		Various dates in 2017	80 CBC	May 31, 2018		1.28	%	Php49.66			—		—			—		—
	US$18		Various dates in 2017, 2018 and 2019	100 Mizuho	December 7, 2020		1.77	%	Php50.98		US$9			(3	)	US$16			28
	US$13		Various dates in 2018 and 2019	200 Mizuho	March 4, 2020		2.06	%	Php51.93		US$4			(6	)	US$9			6
	US$6		February 2019	2015 Mizuho US$100M	December 7, 2021		2.22	%	Php51.83		US$4			(5	)		—		—
														(5	)				115
														(71	)				243

(a)

If the EUR to U.S. Dollar spot exchange rate on the fixing date settles below €1.161, PLDT will sell the EUR at €1.161. However, if on the fixing date, the exchange rate settles between the €1.161 and €1.185, there will be no settlement by PLDT, and if the exchange rate is above €1.185, PLDT will sell the EUR at €1.185.

(b)

If the Philippine Peso to U.S. Dollar spot exchange rate on the maturity date settles between Php51.58 to Php52.48, Smart will purchase the U.S. Dollar at Php51.58. However, if on maturity, the exchange rate settles above Php52.48, Smart will purchase the U.S. Dollar at Php51.58 plus the excess above Php52.48, and if the exchange rate is lower than Php51.58, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate, subject to a floor of Php50.64.

(c)

PLDT’s interest rate swap agreements outstanding as at December 31, 2019 and 2018 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 loss amounting to Php11 million and mark-to-market gain amounting to Php129 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2019 and 2018, respectively. Interest accrual on the interest rate swaps amounting to Php2 million and Php17 million were recorded as at December 31, 2019 and 2018, respectively. There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2019 and 2018.

(d)

PLDT’s long-term principal only-currency swap agreements outstanding as at December 31, 2019 and 2018 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 loss amounting to Php23 million and mark-to-market gain amounting to Php45 million were recognized in our consolidated statement of other comprehensive income as at December 31, 2019 and 2018, respectively. Hedge cost accrual on the long-term principal only-currency swaps amounting to Php7 million and Php3 million were recognized as at December 31, 2019 and 2018, 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 hedge cost portion of the movements in the fair value amounting to Php2 million and Php1 million were recognized in our consolidated income statements for the years ended December 31, 2019 and 2018, respectively.

(e)

Smart’s interest rate swap agreements outstanding as at December 31, 2019 and 2018 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 Php6 million and Php63 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2019 and 2018, respectively. Reduction on interest arising from the interest rate swaps amounted to Php3 million and Php18 million as at December 31, 2019 and 2018, respectively. There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2019 and 2018.

(f)

Smart’s long-term principal only-currency swap agreements outstanding as at December 31, 2019 and 2018 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 loss amounting to Php12 million and mark-to-market gain amounting to Php50 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2019 and 2018, respectively. Hedge cost accrual on the long-term principal only-currency swaps amounting to Php2 million and Php16 million were recognized as at December 31, 2019 and 2018, 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 hedge cost portions of the movements in the fair value amounting to Php1 million and Php2 million were recognized in our consolidated income statements for the years ended December 31, 2019 and 2018, respectively.

Summary of Derivative Financial Instruments by Classification

	2019			2018
	(in million pesos)
Presented as:
Noncurrent assets		1			140
Current assets		41			183
Noncurrent liabilities (Note 29)		(25	)		—
Current liabilities (Note 29)		(88	)		(80	)
Net assets (liabilities)		(71	)		243

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

Movements of our consolidated mark-to-market gains (losses) for the years ended December 31, 2019 and 2018 are summarized as follows:

	2019			2018
	(in million pesos)
Net mark-to-market gains at beginning of the year		243			237
Effective portion recognized in the profit or loss for the cash flow hedges		14			27
Gains (losses) on derivative financial instruments (Note 4)		(233	)		1,135
Net fair value losses on cash flow hedges charged to other comprehensive income		(330	)		(286	)
Settlements, interest expense and others		235			(870	)
Net mark-to-market gains (losses) at end of the year		(71	)		243

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

Our consolidated analysis of gains (losses) on derivative financial instruments for the years ended December 31, 2019, 2018 and 2017 are as follows:

	2019			2018			2017
	(in million pesos)
Gains (losses) on derivative financial instruments (Note 4)		(233	)		1,135			724
Hedge costs		(51	)		(49	)		(191	)
Net gains (losses) on derivative financial instruments (Notes 4 and 5)		(284	)		1,086			533

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

The following table summarizes the maturity profile of our financial assets based on our consolidated undiscounted claims outstanding as at December 31, 2019 and 2018:

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2019
Cash and cash equivalents		17,663		17,663		—		—		—
Temporary cash investments		17,663		17,663		—		—		—
Financial instruments at amortized cost:		43,308		41,024		1,768		338		178
Other financial assets		3,504		1,220		1,768		338		178
Debt instruments at amortized cost		150		150		—		—		—
Short-term investments		314		314		—		—		—
Retail subscribers		17,178		17,178		—		—		—
Corporate subscribers		13,005		13,005		—		—		—
Foreign administrations		1,896		1,896		—		—		—
Domestic carriers		889		889		—		—		—
Dealers, agents and others		6,372		6,372		—		—		—
Financial instruments at FVPL:		10,235		6,866		—		—		3,369
Financial assets at fair value through profit or loss		3,369		—		—		—		3,369
Other financial assets		6,866		6,866		—		—		—
Financial instruments at FVOCI:		2,919		2,757		162		—		—
Financial assets at fair value through other comprehensive income		2,919		2,757		162		—		—
Total		74,125		68,310		1,930		338		3,547

December 31, 2018
Cash and cash equivalents		45,672		45,672		—		—		—
Temporary cash investments		45,672		45,672		—		—		—
Financial instruments at amortized cost:		44,560		41,854		2,190		349		167
Other financial assets		2,686		130		2,040		349		167
Debt instruments at amortized cost		150		—		150		—		—
Short-term investments		1,165		1,165		—		—		—
Retail subscribers		19,444		19,444		—		—		—
Corporate subscribers		11,073		11,073		—		—		—
Foreign administrations		4,225		4,225		—		—		—
Domestic carriers		270		270		—		—		—
Dealers, agents and others		5,547		5,547		—		—		—
Financial instruments at FVPL:		11,596		6,833		—		—		4,763
Financial assets at fair value through profit or loss		4,763		—		—		—		4,763
Other financial assets		6,833		6,833		—		—		—
Financial instruments at FVOCI:		4,353		1,604		2,749		—		—
Financial assets at fair value through other comprehensive income		4,353		1,604		2,749		—		—
Total		106,181		95,963		4,939		349		4,930

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

The following table summarizes the maturity profile of our financial liabilities based on our consolidated contractual undiscounted obligations outstanding as at December 31, 2019 and 2018:

	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2019
Debt^(1):		243,226		19,014		66,052		54,146		104,014
Principal		193,047		15,221		44,253		40,288		93,285
Interest		50,179		3,793		21,799		13,858		10,729
Lease obligations		25,465		10,458		6,879		4,401		3,727
Various trade and other obligations:		153,255		148,839		2,405		38		1,973
Suppliers and contractors		70,169		68,051		2,118		—		—
Utilities and related expenses		51,875		51,843		32		—		—
Employee benefits		8,673		8,673		—		—		—
Liability from redemption of preferred shares		7,851		7,851		—		—		—
Customers’ deposits		2,205		—		194		38		1,973
Dividends		1,584		1,584		—		—		—
Carriers and other customers		1,387		1,387		—		—		—
Others		9,511		9,450		61		—		—
Total contractual obligations		421,946		178,311		75,336		58,585		109,714

December 31, 2018
Debt^(1):		218,791		13,892		72,007		51,098		81,794
Principal		176,694		13,292		49,747		41,401		72,254
Interest		42,097		600		22,260		9,697		9,540
Lease obligations:		22,674		12,727		4,066		2,616		3,265
Operating lease		22,674		12,727		4,066		2,616		3,265
Various trade and other obligations:		145,892		140,549		3,206		176		1,961
Suppliers and contractors		72,064		69,099		2,828		137		—
Utilities and related expenses		48,189		48,128		61		—		—
Employee benefits		7,955		7,955		—		—		—
Liability from redemption of preferred shares		7,862		7,862		—		—		—
Customers’ deposits		2,194		—		194		39		1,961
Carriers and other customers		1,815		1,815		—		—		—
Dividends		1,533		1,533		—		—		—
Others		4,280		4,157		123		—		—
Total contractual obligations		387,357		167,168		79,279		53,890		87,020

⁽¹⁾

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

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

Our consolidated future minimum lease commitments payable with non-cancellable leases as at December 31, 2019 and 2018 are as follows:

	2019		2018
	(in million pesos)
Within one year		10,480		12,867
After one year but not more than five years		11,258		6,542
More than five years		3,727		3,265
Total		25,465		22,674

Summary of Impact of Hedging Instruments

The impact of the hedging instruments on our consolidated statements of financial position as at December 31, 2019 and 2018 are as follows:

	Notional Amount		Carrying Amount			Line item in our Consolidated Statements
	(U.S. Dollar)		(Php)			of Financial Position
	(in million pesos)
December 31, 2019
Long-term currency swaps		37		1		Derivative financial assets – net of current portion
		—		3		Current portion of derivative financial assets
		—		(24	)	Derivative financial liabilities – net of current portion
		—		(24	)	Current portion of derivative financial liabilities

December 31, 2018
Long-term currency swaps		46		83		Derivative financial assets – net of current portion
		—		13		Current portion of derivative financial assets

Summary of Impact of Hedging Items on Consolidated Statements of Financial Position

The impact of the hedged items on our consolidated statements of financial position as at December 31, 2019 and 2018 are as follows:

		2019					2018
		Cash flow hedge reserve			Cost of hedging reserve		Cash flow hedge reserve			Cost of hedging reserve
	(in million pesos)
PLDT:
US$300M Term Loan			(273	)		—		(273	)		4
US$100M PNB			(11	)		—		(7	)		—
US$200M MUFG Bank, Ltd.			(48	)		8		(3	)		—
			(332	)		8		(283	)		4

Smart:
US$200M Mizuho			(12	)		5		7			3
US$100M Mizuho			(22	)		12		43			13
			(34	)		17		50			16

Summary of Effect of the Cash Flow Hedge in Consolidated Income Statements and Statements of Other Comprehensive Income

The effect of the cash flow hedge on our consolidated income statements and statements of other comprehensive income as at December 31, 2019 and 2018 are as follows:

	Total hedging loss recognized in OCI			Line item in our Consolidated Income Statements
	(in million pesos)
December 31, 2019
Long-term currency swaps		(366	)	Other comprehensive loss

December 31, 2018
Long-term currency swaps		(234	)	Other comprehensive loss

Summary of Trade and Other Receivables

The gross carrying amount of financial assets not subject to impairment also represents our maximum exposure to credit risk as at December 31, 2019 and 2018 are as follows:

	2019		2018
	(in million pesos)
Financial assets at fair value through profit or loss (Note 12)		3,369		4,763
Derivative financial assets – net of current portion		1		140
Current portion of derivative financial assets		41		183
Total		3,411		5,086

Summary of Maximum Exposure to Credit Risk of Financial Assets Subject to Impairment

For financial assets recognized on our consolidated statements of financial position, the gross exposure to credit risk equal their carrying amount.

	2019
	Stage 1 12-Month ECL		Stage 2 Lifetime ECL		Stage 3 Lifetime ECL		Total
	(in million pesos)
High grade		29,241		9,228		—		38,469
Standard grade		1,710		6,224		—		7,934
Substandard grade		7		6,984		—		6,991
Default		298		1,763		15,141		17,202
Gross carrying amount		31,256		24,199		15,141		70,596
Less allowance		298		1,763		15,141		17,202
Carrying amount		30,958		22,436		—		53,394

	2018
	Stage 1 12-Month ECL		Stage 2 Lifetime ECL		Stage 3 Lifetime ECL		Total
	(in million pesos)
High grade		58,299		8,776		—		67,075
Standard grade		1,470		7,881		—		9,351
Substandard grade		3		7,399		—		7,402
Default		236		1,595		14,908		16,739
Gross carrying amount		60,008		25,651		14,908		100,567
Less allowance		236		1,595		14,908		16,739
Carrying amount		59,772		24,056		—		83,828

Summary of Maximum Exposure to Credit Risk

An analysis of the maximum exposure to credit risk for the components of our consolidated statements of financial position, including derivative financial instruments as at December 31, 2019 and 2018:

	2019
	Gross Maximum Exposure		Collateral and Other Credit Enhancements*		Net Maximum Exposure
	(in million pesos)
Cash and cash equivalents		24,369		184		24,185
Financial instruments at amortized cost:		26,106		377		25,729
Other financial assets		3,206		—		3,206
Debt instruments at amortized cost		150		—		150
Short-term investments		314		—		314
Retail subscribers		6,486		46		6,440
Corporate subscribers		8,403		331		8,072
Foreign administrations		1,519		—		1,519
Domestic carriers		799		—		799
Dealers, agents and others		5,229		—		5,229
Financial instruments at FVPL:		10,277		—		10,277
Financial assets at FVPL		3,369		—		3,369
Other financial assets		6,866		—		6,866
Interest rate swap		31		—		31
Forward foreign exchange contracts		8		—		8
Currency swap		2		—		2
Long-term currency swap		1		—		1
Financial instruments at FVOCI:		2,919		—		2,919
Financial assets at FVOCI		2,919		—		2,919
Total		63,671		561		63,110

Includes bank insurance, security deposits and customer deposits. We have no collateral held as at December 31, 2019.

	2018
	Gross Maximum Exposure		Collateral and Other Credit Enhancements*		Net Maximum Exposure
	(in million pesos)
Cash and cash equivalents		51,654		187		51,467
Financial instruments at amortized cost:		27,821		329		27,492
Other financial assets		2,450		—		2,450
Debt instruments at amortized cost		150		—		150
Short-term investments		1,165		—		1,165
Retail subscribers		9,620		55		9,565
Corporate subscribers		6,564		273		6,291
Foreign administrations		3,306		—		3,306
Domestic carriers		193		—		193
Dealers, agents and others		4,373		1		4,372
Financial instruments at FVPL:		11,919		—		11,919
Financial assets at FVPL		4,763		—		4,763
Other financial assets		6,833		—		6,833
Interest rate swap		227		—		227
Long-term currency swap		83		—		83
Currency swap		13		—		13
Financial instruments at FVOCI:		4,353		—		4,353
Financial assets at FVOCI:		4,353		—		4,353
Total		95,747		516		95,231

Includes bank insurance, security deposits and customer deposits. We have no collateral held as at December 31, 2018.

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, 2019 and 2018:

			Neither past due nor credit impaired				Past due but not
	Total		Class A⁽¹⁾		Class B⁽²⁾		credit impaired		Impaired
	(in million pesos)
December 31, 2019
Cash and cash equivalents		24,369		24,111		258		—		—
Financial instruments at amortized cost:		43,308		11,439		7,676		6,991		17,202
Other financial assets		3,504		1,747		1,452		7		298
Debt instruments at amortized cost		150		150		—		—		—
Short-term investments		314		314		—		—		—
Retail subscribers		17,178		3,280		1,634		1,572		10,692
Corporate subscribers		13,005		3,652		2,041		2,710		4,602
Foreign administrations		1,896		460		414		645		377
Domestic carriers		889		374		40		385		90
Dealers, agents and others		6,372		1,462		2,095		1,672		1,143
Financial instruments at FVPL:		10,277		10,160		117		—		—
Financial assets at FVPL		3,369		3,252		117		—		—
Other financial assets		6,866		6,866		—		—		—
Interest rate swap		31		31		—		—		—
Forward foreign exchange contracts		8		8		—		—		—
Currency swap		2		2		—		—		—
Long-term currency swap		1		1		—		—		—
Financial instruments at FVOCI:		2,919		2,919		—		—		—
Financial assets at FVOCI:		2,919		2,919		—		—		—
Total		80,873		48,629		8,051		6,991		17,202

⁽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.

			Neither past due nor credit impaired				Past due but not
	Total		Class A⁽¹⁾		Class B⁽²⁾		credit impaired		Impaired
	(in million pesos)
December 31, 2018
Cash and cash equivalents		51,654		51,410		244		—		—
Financial instruments at amortized cost:		44,560		11,312		9,107		7,402		16,739
Other financial assets		2,686		1,221		1,226		3		236
Debt instruments at amortized cost		150		150		—		—		—
Short-term investments		1,165		1,165		—		—		—
Retail subscribers		19,444		4,125		3,577		1,918		9,824
Corporate subscribers		11,073		2,806		1,519		2,239		4,509
Foreign administrations		4,225		593		850		1,863		919
Domestic carriers		270		29		49		115		77
Dealers, agents and others		5,547		1,223		1,886		1,264		1,174
Financial instruments at FVPL:		11,919		11,806		113		—		—
Financial assets at FVPL		4,763		4,650		113		—		—
Other financial assets		6,833		6,833		—		—		—
Interest rate swap		227		227		—		—		—
Long-term currency swap		83		83		—		—		—
Currency swap		13		13		—		—		—
Financial instruments at FVOCI:		4,353		4,353		—		—		—
Financial assets at FVOCI:		4,353		4,353		—		—		—
Total		112,486		78,881		9,464		7,402		16,739

⁽¹⁾

⁽²⁾

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, 2019 and 2018 are as follows:

					Past due but not credit impaired
	Total		Neither past due nor credit impaired		1-60 days		61-90 days		Over 91 days		Impaired
	(in million pesos)
December 31, 2019
Cash and cash equivalents		24,369		24,369		—		—		—		—
Financial instruments at amortized cost:		43,308		19,115		2,006		1,247		3,738		17,202
Other financial assets		3,504		3,199		—		—		7		298
Debt instruments at amortized cost		150		150		—		—		—		—
Short-term investments		314		314		—		—		—		—
Retail subscribers		17,178		4,914		994		150		428		10,692
Corporate subscribers		13,005		5,693		705		770		1,220		4,617
Foreign administrations		1,896		874		41		26		578		377
Domestic carriers		889		414		103		240		43		89
Dealers, agents and others		6,372		3,557		163		61		1,462		1,129
Financial instruments at FVPL:		10,277		10,277		—		—		—		—
Financial assets at FVPL		3,369		3,369		—		—		—		—
Other financial assets		6,866		6,866		—		—		—		—
Interest rate swap		31		31		—		—		—		—
Forward foreign exchange contracts		8		8		—		—		—		—
Currency swap		2		2		—		—		—		—
Long-term currency swap		1		1		—		—		—		—
Financial instruments at FVOCI:		2,919		2,919		—		—		—		—
Financial assets at FVOCI:		2,919		2,919		—		—		—		—
Total		80,873		56,680		2,006		1,247		3,738		17,202

December 31, 2018
Cash and cash equivalents		51,654		51,654		—		—		—		—
Financial instruments at amortized cost:		44,560		20,419		3,262		398		3,742		16,739
Other financial assets		2,686		2,447		—		—		3		236
Debt instruments at amortized cost		150		150		—		—		—		—
Short-term investments		1,165		1,165		—		—		—		—
Retail subscribers		19,444		7,702		1,747		62		109		9,824
Corporate subscribers		11,073		4,325		957		101		1,181		4,509
Foreign administrations		4,225		1,443		139		131		1,593		919
Domestic carriers		270		78		52		21		42		77
Dealers, agents and others		5,547		3,109		367		83		814		1,174
Financial instruments at FVPL:		11,919		11,919		—		—		—		—
Financial assets at FVPL		4,763		4,763		—		—		—		—
Other financial assets		6,833		6,833		—		—		—		—
Interest rate swap		227		227		—		—
Long-term currency swap		83		83		—		—		—		—
Currency swap		13		13		—		—		—		—
Financial instruments at FVOCI:		4,353		4,353		—		—		—		—
Financial assets at FVOCI:		4,353		4,353		—		—		—		—
Total		112,486		88,345		3,262		398		3,742		16,739

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, 2019 and 2018:

	2019				2018
	U.S. Dollar		Php⁽¹⁾		U.S. Dollar		Php⁽²⁾
	(in millions)
Noncurrent Financial Assets
Derivative financial assets – net of current portion		—		1		3		140
Other financial assets – net of current portion		—		13		—		12
Total noncurrent financial assets		—		14		3		152
Current Financial Assets
Cash and cash equivalents		122		6,181		717		37,688
Short-term investments		6		285		22		1,138
Trade and other receivables – net		777		39,472		261		13,741
Current portion of derivative financial assets		1		41		3		183
Current portion of other financial assets		—		11		—		11
Total current financial assets		906		45,990		1,003		52,761
Total Financial Assets		906		46,004		1,006		52,913
Noncurrent Financial Liabilities
Interest-bearing financial liabilities – net of current portion		126		6,389		336		17,668
Derivative financial liabilities – net of current portion		—		25		—		—
Other noncurrent liabilities		—		15		—		12
Total noncurrent financial liabilities		126		6,429		336		17,680
Current Financial Liabilities
Accounts payable		676		34,325		415		21,797
Accrued expenses and other current liabilities		208		10,555		170		8,961
Current portion of interest-bearing financial liabilities		210		10,687		110		5,780
Current portion of derivative financial liabilities		2		88		2		80
Total current financial liabilities		1,096		55,655		697		36,618
Total Financial Liabilities		1,222		62,084		1,033		54,298

⁽¹⁾

The exchange rate used to convert the U.S. Dollar amounts into Philippine Peso was Php50.80 to US$1.00, the Philippine Peso-U.S. Dollar exchange rate as quoted through the Bankers Association of the Philippines as at December 31, 2019.

⁽²⁾

The exchange rate used to convert the U.S. Dollar amounts into Philippine Peso was Php52.56 to US$1.00, the Philippine Peso-U.S. Dollar exchange rate as quoted through the Bankers Association of the Philippines as at December 31, 2018.

Interest rate risk [member]

Disclosure Of Financial Assets And Liabilities [Line Items]

Summary of Impact of Hedging Instruments

The impact of the hedging instruments on our consolidated statements of financial position as at December 31, 2019 and 2018 are as follows:

	Notional Amount		Carrying Amount			Line item in our Consolidated Statements
	(U.S. Dollar)		(Php)			of Financial Position
	(in million pesos)
December 31, 2019
Interest rate swaps		233		1		Derivative financial assets – net of current portion
		—		31		Current portion of derivative financial assets
		—		(1	)	Derivative financial liabilities – net of current portion
		—		(31	)	Current portion of derivative financial liabilities
		233		—

December 31, 2018
Interest rate swaps		323		57		Derivative financial assets – net of current portion
		—		170		Current portion of derivative financial assets
		323		227

Summary of Impact of Hedging Items on Consolidated Statements of Financial Position

The impact of the hedged items on our consolidated statements of financial position as at December 31, 2019 and 2018 are as follows:

		2019					2018
		Cash flow hedge reserve			Cost of hedging reserve		Cash flow hedge reserve			Cost of hedging reserve
	(in million pesos)
PLDT:
US$100M PNB			(6	)		—		50			—
US$50M MBTC			(4	)		—		24			—
US$200M MUFG Bank, Ltd.			(1	)		—		55			—
			(11	)		—		129			—

Smart:
2014 BTMU US$100M			(1	)		—		(6	)		—
2014 Mizuho US$50M			(1	)		—		(2	)		—
2015 Mizuho US$200M			(36	)		—		(11	)		—
2015 Mizuho US$100M			(19	)		—		—			—
2013 Sumitomo US$120M			—			—		(3	)		—
			(57	)		—		(22	)		—

Summary of Effect of the Cash Flow Hedge in Consolidated Income Statements and Statements of Other Comprehensive Income

The effect of the cash flow hedge on our consolidated income statements and statements of other comprehensive income as at December 31, 2019 and 2018 are as follows:

	Total hedging gain (loss) recognized in OCI			Line item in the Consolidated Income Statements
	(in million pesos)
December 31, 2019
Interest rate swaps		(68	)	Other comprehensive loss

December 31, 2018
Interest rate swaps		179		Other comprehensive gain

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, 2019 and 2018. Financial instruments that are not subject to interest rate risk were not included in the table.

As at December 31, 2019

	In U.S. Dollars															Discount/				Fair Value
	Below 1 year		1-2 years			2-3 years		3-5 years		Over 5 years		Total		In Php		Debt Issuance Cost In Php		Carrying Value In Php		In U.S. Dollar		In Php
																(in millions)
Assets:
Debt Instruments at Amortized Cost
Philippine Peso		3		—			—		—		—		3		150		—		150		3		150
Interest rate	4.8371%			—			—		—		—		—		—		—		—		—		—
Cash in Bank
U.S. Dollar		31		—			—		—		—		31		1,586		—		1,586		31		1,586
Interest rate	0.0100% to 1.0000%			—			—		—		—		—		—		—		—		—		—
Philippine Peso		83		—			—		—		—		83		4,228		—		4,228		83		4,228
Interest rate	0.0500% to 1.2500%			—			—		—		—		—		—		—		—		—		—
Other Currencies		2		—			—		—		—		2		92		—		92		2		92
Interest rate	0.1000% to 0.5000%			—			—		—		—		—		—		—		—		—		—
Temporary Cash Investments
U.S. Dollar		72		—			—		—		—		72		3,645		—		3,645		72		3,645
Interest rate	0.7000% to 4.7500%			—			—		—		—		—		—		—		—		—		—
Philippine Peso		276		—			—		—		—		276		14,018		—		14,018		276		14,018
Interest rate	0.1250% to 5.0000%			—			—		—		—		—		—		—		—		—		—
Short-term Investments
Philippine Peso		1		—			—		—		—		1		29		—		29		1		29
Interest rate	1.5000% to 3.0000%			—			—		—		—		—		—		—		—		—		—
Other Currencies		6		—			—		—		—		6		285		—		285		6		285
Interest rate	0.0000%			—			—		—		—		—		—		—		—		—		—
		474		—			—		—		—		474		24,033		—		24,033		474		24,033

Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Fixed Loans		—		15			4		—		—		19		952		—		952		19		945
Interest rate		—		2.8850	%	2.8850%			—		—		—		—		—		—		—		—
Philippine Peso		42		376			302		673		1,697		3,090		156,996		408		156,588		3,024		153,644
Interest rate	4.4850% to 5.5000%		3.9000% to 6.7339%			3.9000% to 6.7339%		3.9000% to 6.7339%		4.2500% to 6.7339%			—		—		—		—		—		—
Variable Rate
U.S. Dollar Loans		165		76			26		50		—		317		16,124		47		16,077		317		16,123
Interest rate	0.7900% to 1.4500% over LIBOR		0.7900% to 0.9500% over LIBOR			0.7900% to 0.9500% over LIBOR		1.0500% over LIBOR			—		—		—		—		—		—		—
Philippine Peso		93		69			3		70		139		374		18,975		36		18,939		374		18,975
Interest rate	1.0000% over PHP BVAL		0.5000% to 1.0000% over PHP BVAL			0.5000% to 0.6000% over PHP BVAL		0.5000% to 0.6000% over PHP BVAL		0.6000% over PHP BVAL			—		—		—		—		—		—
		300		536			335		793		1,836		3,800		193,047		491		192,556		3,734		189,687

As at December 31, 2018

	In U.S. Dollars																	Discount/				Fair Value
	Below 1 year			1-2 years			2-3 years		3-5 years			Over 5 years		Total		In Php		Debt Issuance Cost In Php		Carrying Value In Php		In U.S. Dollar		In Php
																		(in millions)
Assets:
Debt Instruments at Amortized Cost
Philippine Peso		—			3			—		—			—		3		150		—		150		3		148
Interest rate		—			4.8371	%		—		—			—		—		—		—		—		—		—
Cash in Bank
U.S. Dollar		30			—			—		—			—		30		1,580		—		1,580		30		1,580
Interest rate	0.0100% to 0.2500%				—			—		—			—		—		—		—		—		—		—
Philippine Peso		57			—			—		—			—		57		3,017		—		3,017		57		3,017
Interest rate	0.05000% to 1.2500%				—			—		—			—		—		—		—		—		—		—
Other Currencies		—			—			—		—			—		—		4		—		4		—		4
Interest rate	0.1000% to 0.5000%				—			—		—			—		—		—		—		—		—		—
Temporary Cash Investments
U.S. Dollar		675			—			—		—			—		675		35,467		—		35,467		675		35,467
Interest rate	2.7000% to 3.0000%				—			—		—			—		—		—		—		—		—		—
Philippine Peso		194			—			—		—			—		194		10,204		—		10,204		194		10,204
Interest rate	0.2500% to 7.0500%				—			—		—			—		—		—		—		—		—		—
Short-term Investments
U.S. Dollar		22			—			—		—			—		22		1,138		—		1,138		22		1,138
Interest rate	2.5000% to 3.0000%				—			—		—			—		—		—		—		—		—		—
Philippine Peso		1			—			—		—			—		1		27		—		27		1		27
Interest rate	3.5000%				—			—		—			—		—		—		—		—		—		—
		979			3			—		—			—		982		51,587		—		51,587		982		51,585

Liabilities:
Long-term Debt
Fixed Rate
U.S. Dollar Fixed Loans		2			15			7		4			—		28		1,483		1		1,482		28		1,502
Interest rate		1.4100	%		2.8850	%	2.8850%			2.8850	%		—		—		—		—		—		—		—
Philippine Peso		234			123			319		730			1,232		2,638		138,637		278		138,359		2,319		121,868
Interest rate	4.9110% to 5.6038%			3.9000% to 6.7339%			3.9000% to 6.7339%		3.9000% to 6.7339%			4.2500% to 6.7339%			—		—		—		—		—		—
Variable Rate
U.S. Dollar Loans		17			286			38		52			25		418		21,964		94		21,870		418		21,965
Interest rate	0.9500% to 1.1000% over LIBOR			0.7900% to 1.4500% over LIBOR			0.7900% to 0.9500% over LIBOR		0.7900% to 1.0500% over LIBOR			1.0500% over LIBOR			—		—		—		—		—		—
Philippine Peso		—			94			64		2			118		278		14,610		45		14,565		278		14,610
Interest rate*		—		0.5000% to 1.0000% over PHP BVAL			0.5000% to 1.0000% over PHP BVAL		0.5000% to 0.6000% over PHP BVAL			0.5000% to 0.6000% over PHP BVAL			—		—		—		—		—		—
		253			518			428		788			1,375		3,362		176,694		418		176,276		3,043		159,945

Effective October 29, 2018, PHP BVAL Reference Rates replaced PDST Reference Rates (PDST-R1 and PDST-R2).